Contents and Time Guide

INSTRUCTIONS AND INFORMATION 1. This examination paper consists of Four sections and Four Questions.

2. Write neatly and legibly

3. All questions are COMPULSORY.

4. Read through the questions carefully and make sure that you allocate enough time for each question.

5 Use of a calculator is permissible

CONTENTS AND TIME GUIDE

SECTION TOPIC MARKS DURATION In minutes Section A All topics Question 1.1: Multiple choice 10 8 Question 1.2: Match type 10 8 Question 1.3: True/False 10 8 Question 1.4 Word bank 10 8

SECTION B (THE ECONOMY) Question 2.1 Economy 9 8 Question 2.2 Economy 15 10 Question 2.3 Economy 6 6

SECTION C (FINANCIAL LITERACY) Question 3.1 Financial literacy 30 24 Question 3.2 Statement of Net worth 10 8 Question 3.3 Budget 10 8

SECTION D (ENTREPRENEURDHIP) Question 4.1 Entrepreneurship 22 10 Question 4.2 Entrepreneurship 8 14 TOTAL 150 120 Min

SECTION A QUESTION 1: SHORT QUESTIONS

of 8 QUESTION 1.1: MULTIPLE-CHOICE QUESTION

1.1.1 Cüü

1.1.2 B üü

1.1.3 Düü

1.1.4 Aüü

1.1.5 Büü (10)

QUESTION 1.2: MATCH-TYPE

1.2.1 Cüü

1.2.2 Füü

1.2.3 Aüü

1.2.4 Eüü

1.2.5 Büü (10)

QUESTION 1.3 TRUE / FALSE

1.3.1 Trueüü

1.3.2 Trueüü

1.3.3 Falseüü

1.3.4 Trueüü

1.3.5 Trueüü (10)

QUESTION 1.4: WORD BANK

1.4.1 Barteringüü

1.4.2 Promissory noteüü

1.4.3 Advertisingüü

1.4.4 Business planüü

1.4.5 Expensesüü (10)

of 8 SECTION B: ECONOMY QUESTION 2: QUESTION 2.1:

2.1.1 Picture 1 - Poverty ü Picture 2 – Wealth ü (2) 2.1.2 Poverty – lack of access to basic needs like proper housing , clothing, food, water and electricity due to lack of money üü (2) 2.1.3 When people are unemployed, they don’t earn a salary or wages to satisfy their needs and wants. üü (2) 2.1.4 Economic inequality – The gap in the levels of wealth and income between the rich and the poorüü (2) 2.1.5 Challenges of people in urban areas  Unemploymentü  Lack of proper housing/ informal settlements (1)  Lack of basic services in informal settlements  Overpopulation  Crime  Illnesses  Traffic congestion  Alcohol and drug abuse Any other relevant answer ü

QUESTION 2.2:

2.2.1 Non-durable goods – Goods that last for a short period of time or are (2) consumed at once. üü 2.2.2 Free goods – goods that are freely available and are usually provided by (2) natureüü 2.2.3 Functions or roles of money  Medium of exchangeüü (4)  Store of valueüü  Unit of account  Standard for postponed payment Any two üü 2.2.4 Examples of recycled products - Using tyres to manufacture shoes (sandals)üü (2) - Plastics to do floor mat/ carpet - Using wires to do toys - Using old helmets to do sports supporters (soccer) hats. Any other relevant answer üü

of 8 2.2.5 Step 1 – Picture C (insert card)ü Step 2 – Picture A (enter PIN)ü (5) Step 3 – Picture E (select the amount)ü Step 4 – Picture D (take cash)ü Step 5 – Picture B (take slip)ü

QUESTION 2.3:

2.3.1 a) Economic growth – Increase in goods and services produced in a country. üü b) Production – the process of changing raw materials into finished goodsüü (6) c) Productivity – the rate at which workers, business or a country produce goods and services to satisfy needs and wants. Number of goods produced by employees at a specific time. üü [30]

SECTION C: FINANCIAL LITERACY QUESTION 3: (50) QUESTION 3.1: (4 minutes) (30)

3.1.1 a) Budget – Plan for expected income and expenditure.üü b) Fixed assets – Assets that last for a longer period of time, usually more than a year.üü (6) c) Income – Money received by the business for goods sold or services rendered. üü 3.1.2 Commercial Banks  First National Bank (FNB) ü  ABSA Bankü  Standard bank (2)  Nedbank  Capitec Bank Any two üü 3.1.3 Examples of expenses  Salaries üü  Telephoneüü  Wages (4)  Stationery  Water and electricity  Cleaning materials  Rent expense  Fuel Any two üü

of 8 3.1.4 Reason why people save  To provide for unexpected expensesüü  To make more money (earn interest) (2)  To buy expensive items (e.g. furniture)

3.1.5 Documents required to open a savings account  Identity book/ cardüü  Proof of residenceüü (4)  Proof of income 3.1.6 Types of personal income  Money from employment (salary)üü  Money earned from investmentsüü (6)  Money earned from own businessüü 3.1.7 Budget surplus - When expected income is more than expenditureüü (2) 3.1.8 Interest on investment – is money earned by investing money in a financial institution for a certain period of time, usually calculated as a percentage.üü (2) 3.1.9 R15 000 X 10 100 üü (3) = R1 500ü

(30) QUESTION 3.2 (STATEMENT OF NET WORTH

Statement of Net Worth of Henry Peterson for February 2015 ASSETS R House 80 000ü Furniture 9 000ü Car 40 000ü Cash in bank 11 000ü Clothes 5 000ü TOTAL ASSETS 145 000ü DEBTS (Liabilities) House loan 30 000ü Credit card 2 000ü Clothing account 2 500ü TOTAL DEBTS (34 500) Net worth 110 500ü

of 8 QUESTION 3.3 (BUDGET) The family budget of Tyson family for March 2015 INCOME R Salary: Father 16 000ü Salary: Mother 10 000ü TOTAL INCOME 26 000 Minus/ less EXPENSES House payment 4 800ü Water and electricity 1 700ü School fees 2 200ü Groceries 4 200ü Petrol and transport 3 000ü (10) Medical and emergencies 2 500ü Cell phone and entertainment 1 200ü TOTAL EXPENSES 19 600 Surplus 6400ü

SECTION D (ENTREPRENEURHIP) QUESTION 4.1

4.1.1 Ludwick invented a water-less bath gel / DryBathüü (2)

4.1.2 How Drybath work  You slap on the germ-killing lotion and then you don’t need to take a (2) bath.üü  A gel that does all the work of a bath without the need for water. 4.1.3 Things that Ludwick did before launching his business (4) i. Business planüü ii. Applied for patentüü 4.1.4 Headboy Industries is a formal businessü (3)  because it has a business plan and applied for a patent before launchingüü - He won an international competition for student entrepreneurs. 4.1.5 Yes, it is a brilliant/ best ideaü  It would help many people without waterüü (3)  It would prevent people from getting water diseases  It won him Global award along with 10 000 dollars Any other relevant answer üü

of 8 4.1.6 Characteristics of a good entrepreneur - Creative thinkingüü (2) - Sense of responsibility - Ambition to achieve - Discipline - Optimistic, confident - Risk taker - Display leadership qualities Any other relevant answer üü (2) 4.1.7 SWOT – Skills, Weaknesses, Opportunities and Strengthsüü 4.1.8 Strength - His product will help many people with shortage of waterüü (2) - It is formally established and the product patented - He is award winning entrepreneur Any other relevant answer üü 4.1.9 Advertising media - Radio üü (2) - Television - Newspaper - Internet - Posters - Billboards - Social media (Face book, Twitter) QUESTION 4.2

4.2.1 Characteristics of informal business - Do not follow formal procedures to set upüü - Usually small in sizeüü - Usually do not employ people or employ few people (4) - Do not have recognized business premises - Do not keep official records - Face uncertain expected income 4.2.2 Market research is done to find if there are people interested in buying the product to be soldüü (2) 4.2.3 Example of fixed cost - Insuranceüü - Salary - Rent expense (2) - Fixed interest

[30] GRAND TOTAL [150]