NATIONAL CERTIFICATE (VOCATIONAL) NEW VENTURE CREATION NQF LEVEL 4 NOVEMBER 2010

Transcription

1 NTIONL ERTIFITE (VOTIONL) NEW VENTURE RETION NQF LEVEL 4 NOVEMER 2010 ( ) 25 November (X-Paper) 09:00 12:00 This question paper consists of 8 pages. opyright reserved

2 ( ) -2- N1750(E)(N25)V TIME: 3 HOURS MRKS: 200 INSTRUTIONS N INFORMTION nswer LL the questions. Read LL the questions carefully. Number the answers according to the numbering system used in this question paper. Write neatly and legibly. opyright reserved

3 ( ) -3- N1750(E)(N25)V SETION QUESTION 1 Various options are given as possible answers to the following questions. hoose the answer and write only the letter ( ) next to the question number ( ) in the NSWER OOK. 1.1 In the acronym SWOT, what do the letters S and W stand for? Strength to work Salaries and wages Strengths and weaknesses Statutory and waivers (2) 1.2 Entrepreneurs need capital for the following reasons: To buy fixed assets To run the business To expand the business ll the above-mentioned (2) 1.3 Monthly operating expenses can include the following: Rent for premises Interest on a loan Petrol for vehicles ll the above-mentioned (2) 1.4 Financing that is paid back in less than a year is called short-term financing. medium-term financing. long-term financing. ll the above-mentioned (2) 1.5 Morally correct and proper behaviour is called ethical behaviour. unethical behaviour. illegal behaviour. immoral behaviour. (2) 1.6 means making an agreement with another party to carry out a specific action. Vicarious liability Professional indemnity ontractual liability None of the above-mentioned (2) opyright reserved

4 ( ) -4- N1750(E)(N25)V 1.7 business employing more than people needs to comply with the Employment Equity ct (2) 1.8 process that gives opportunity to a wide range of suppliers to quote on a specific product is called an operating plan. costing and pricing. tendering. a supplier analysis. (2) 1.9 The profit obtained after deducting only direct costs is called gross profit. operating profit. pre-tax profit. post-tax profit. (2) 1.10 Ways of doing market research include: The hamber of ommerce The internet The Yellow Pages ll the above-mentioned (2) [20] TOTL SETION : 20 opyright reserved

5 ( ) -5- N1750(E)(N25)V SETION nswer LL the questions in SETION. SE STUY FOR QUESTION 2, 3 N 4 Read the case study below and answer questions that follow. Our aily read Sizwe, the owner of a local bakery called Our aily read, specialises in baking bread. Sizwe is working with food and therefore he knows that there are very strict guidelines with regard to the code of conduct and the Occupational Health and Safety cts that he should comply with. Sizwe wants to expand the business in future to include cakes and scones but more capital is required before this can be done. QUESTION State TWO possible distribution channels that Our aily read can use to distribute bread on a daily basis to the local community. (4) 2.2 State FOUR funding options that Sizwe can use to get money to expand his business. (4) 2.3 Which collateral requirements will Sizwe have to take note of in order to access funding? (2) 2.4 riefly explain THREE purposes of a code of conduct. (6) 2.5 How will non-compliance with the Occupational Health and Safety ct impact on Our aily read? (6) 2.6 What are FOUR factors that Sizwe should consider in terms of the potential market share before deciding on a new product to increase his market share. (8) opyright reserved

6 ( ) -6- N1750(E)(N25)V QUESTION usinesses have a legal obligation to pay different forms of taxation. List the THREE forms of taxation businesses need to pay. (3) 3.2 Explain the difference between debt (loans) and equity financing. (4) 3.3 List FIVE fixed assets that Sizwe will need to operate his business. (5) 3.4 Formulate FOUR items which Sizwe can include in the code of conduct for Our aily read. (8) 3.5 riefly explain FIVE important points to keep in mind when selecting a suitable location for a business. (10) QUESTION Explain THREE points that Sizwe should keep in mind when planning a marketing or advertising drive in order to minimise the risk of failure. (6) 4.2 Name FOUR documents that Sizwe may be requested to provide to an institution that agrees to lend him money. (4) 4.3 Explain the relationship between the code of conduct and successful marketing. (8) 4.4 omplete the following sentence by using the words in the list below. Write only the word(s) next to the question number ( ) in the NSWER OOK. public liability; delict; personal liability; negligent Our aily read would be if they did not give their employees oven gloves to use to remove bread from the ovens. (1) Our aily read would be if they did not submit their employees' UIF contributions by the due date. (1) Liability that is imposed on you personally by your actions or inactions is called (1) The liability that you have towards another person is called (1) 4.5 raw a flow chart of the trading cycle for Our aily read. (8) opyright reserved

7 ( ) -7- N1750(E)(N25)V SE STUY FOR QUESTIONS 5, 6 N 7 Read the case study below and answer questions that follow. Martha wants to start a business that will do administration work such as typing documents, photocopying, faxing and printing as well as making two computers available for Internet access. She hopes to employ additional staff at a later stage. She asked you to assist her with some research during your holidays and to report back to her. While doing research you found that the asic onditions of Employment ct stipulates that each employee should have a contract of employment. Martha expects to have fixed costs of R10 500,00 and variable costs of R6 400,00 per month. The average sales price per page of typed document is R10,00 with a variable cost of R6,00 per page. She hopes to have a total income of R23 200,00 per month. QUESTION hoose TWO examples of fixed costs and variable costs for Martha's proposed business. (4) 5.2 Martha's business is very expensive. What are the premises of the leasing option as a method of reducing start-up capital? (8) 5.3 State FIVE items that must appear in a contract of employment. (10) 5.4 Make a distinction between TWO internal and TWO external factors which could impact on pricing in Martha's proposed business. (8) QUESTION Name THREE personal traits, abilities or profiles that you suggest Martha should have. (6) 6.2 List EIGHT pre-operating expenses that Martha would incur in setting up the business. (8) 6.3 Name FOUR points which could be included in the code of conduct for a business that renders typing and printing services. (8) 6.4 Point out FOUR factors that will influence the price that Martha could charge for a particular service. (8) opyright reserved

8 ( ) -8- N1750(E)(N25)V QUESTION Select TWO tax responsibilities of Martha's proposed business. (2) 7.2 alculate the number of pages to be typed to break-even each month. Use Fixed costs the following formula: reak-even = ontribution Show LL your calculations. (8) 7.3 riefly explain the following legislation that Martha will have to take into account when employing staff Employment Equity ct (4) asic onditions of Employment ct (4) Labour Relations ct (4) 7.4 alculate the profit mark-up percentage on total costs for Martha's proposed business. Profit mark - up Use the formula: 100 Total costs (8) TOTL SETION : 180 GRN TOTL: 200 opyright reserved