Economic and management science Controlled test
Name and Surname: ____________________________________
Grade7: ____
School: ____________________________________________
Examiner: Ms. M Letsoela
Moderator: Mr E.N Mabuza
MARKS: 100
TIME: 1 hour 30 MIN
INSTRUCTIONS AND INFORMATION:
1. The paper consists of FOUR sections:
Section A: Short questions
(30)
Section B: Financial literacy
(15)
Section C: The economy
(15)
Section D: Entrepreneurship
(40)
2. Answer all questions on the space provided.
3. Show all calculations were possible.
4. Write neatly and legibly
Good luck!
1|Page
SECTION A: Short questions
Question 1
1.1 Finding out from possible customers their need / preferences and whether they
will be willing to buy the product or service at a specific price.
A. Market strategy
B. Market research
C. Strength
1.1 _________________
1.2 The means of promoting a business, its product or service.
A. Slogan
B. Logo
C. Advertising
1.2 _________________
1.3 When businesses use new material (inputs) in a process to produce goods
(outputs) that the market need
A. Productivity.
B. Production.
C. Factors of production.
1.3 __________________
1.4 An account in a financial institution that allows regular, daily transactions such as
deposits and withdrawals.
A. Bank.
B. Bank account.
C. Financial organisation.
1.4 ___________________
2|Page
1.5 Money or goods such machinery that is used to generate income or make other
products.
A. Capital
B. Income
C. Expenses
1.5 ________________
Question 2
1.2 State whether the following statements are true or false
1.2.1 Sustainable is when something lasts for a long-time._________________
1.2.2 Financial organisations collects money from the public or other organisations
and manage it in various ways._____________________
1.2.3 Variable costs are all costs that are involved in a business. ________________
1.2.4 Opportunity is an internal factor that the business is not good at and can harm
the business. _____________________
1.2.5 A logo is a symbol or design used by a company to identify and promote itself
as well as its products or service. ___________________
Question 3
1.3 Match the definitions in column A with the terms in column B
COLUMN A: Definitions
COLUNM B: Terms
1.3.1 Will not be discouraged.
A Standard of living
1.3.2 To produce the intended or planned results.
B Action- orientated
1.3.3 Measured by how many needs and wants
C Investment stockvel
people can satisfy the needs and wants.
1.3.4 Want to do things instead of being passive.
D Effective
1.3.5 A community saving scheme to provide
E Perseverance
money start a business.
F Productivity
3|Page
1.3.1
1.3.2
1.3.3
1.3.4
1.3.5
Subtotal: 30
SECTION B: Financial Literacy
Question 4
4.1 Mention the advantages of saving money in modern way.
(2)
___________________________________________________________________
___________________________________________________________________
4.2 Why would you advice someone not to use the olden way of saving money.
(2)
___________________________________________________________________
___________________________________________________________________
4.3 Recommend to your sister (who owns a beauty spar) four reasons/purpose of
personal saving.
(4)
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
Question 5
Mention three main services offered by the bank
(3)
______________________________________
______________________________________
______________________________________
Describe two roles of banks
(4)
___________________________________________________________________
___________________________________________________________________
Subtotal: 15
4|Page
SECTION C: The Economy
Question 6
6.1 Name two of South Africa’s main mineral resources
(2)
___________________________________
___________________________________
6.2 Illustrate the production process of a bread
Input
Transformation
(5)
Output
Question 7
Explain what you understand by the term economic growth
(4)
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
Discuss how technology improves productivity and economic growth
(4)
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
Subtotal: 15
5|Page
SECTION D: Entrepreneurship
Question 8
8.1 Describe TWO character traits of an entrepreneur.
(4)
___________________________________________________________________
___________________________________________________________________
8.2 Give two examples each of clothes that are needs and clothes that are wants. (4)
Clothes that are needs
Clothes that are wants
Question 9
9.1 Name two types of businesses
(2)
__________________________
__________________________
9.2 Propose/ recommend THREE ways of starting a business.
(3)
___________________________________________________________________
___________________________________________________________________
__________________________________________________________________
9.3 List THREE steps to follow when setting goals.
___________________________________________________________________
___________________________________________________________________
__________________________________________________________________
9.4 Explain the requirements for a good advertisement to a friend who started selling
pens and pencils at school.
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
6|Page
___________________________________________________________________
___________________________________________________________________
Question 10
Read the case study below and identify the strengths, weaknesses,
opportunities and threats of Ms S Sibiya day-care centre.
Ms. S Sibiya is 65 years old and has retired from teaching gr. 1 learners at
Thubelihle Primary School in Amersfoort. Everybody knows her, because she was
an excellent gr. 1 teacher. She currently has a day-care centre with 10 children
and plans to also register her business as a pre-school with one gr. R classroom
from next year. Her house is very close to the primary school and many of the
teachers’ children are in her day-care centre. They know that they won’t find any
other person as responsible and experienced with small children as Ms. Sibiya.
Many parents drive past her house to drop off their children at the primary school
and from the moment she had advertised the new gr. R facility, thirteen parents
have already registered their children for next year’s gr. R class.
She has a four-bedroom house with a double garage and she and her husband
are alone in this big house after their children got married. She will use the double
garage as a gr. R classroom and two of the bedrooms in her house for the full-time
day-care. She has a full time assistant, Agnes, who can take over the day-care
centre from next year, so that Ms. Sibiya can take care of the gr. R class. Her
domestic worker is responsible for cleaning, but is also a very good cook and
prepares healthy meals for the children.
The only problem is that Ms. Sibiya does not have capital to buy all the necessary
educational toys, stationery and furniture for the new gr. R classroom. She will
have to borrow R30 000 from the bank, but will be able to use her house as
security for the loan. She needs the loan for extra furniture, educational toys, and
stationery and to convert one corner of the double garage into two small toilets and
basins for boys and two small toilets and basins for girls.
7|Page
She is concerned about the requirements of the health department and education
department in connection with the kitchen and toilet facilities. She realizes that she
will have to pay a monthly instalment on the loan, including interest.
Internal factors:
Strengths
External factors
Opportunities
.
Weaknesses
.
Threats
[12 Marks]
Question 11
1. Study the following information and answer the questions that follow:
Variable costs
Baby grows
Transfer designs
Decorate items
Glue per tube
Plastic packaging
Production rate
R25,00 each
R12,50 each
R2,00 per Baby
grow
R13,00 for 10
Baby grows
R0,20 per bag
10 Baby grows
per week
Fixed costs
Workroom rent
Electricity and
water
Iron
Ironing board
11.1 Calculate the total fixed costs per week (Show calculations)
8|Page
R10,00 per week
R9,00 per week
R80,00
R50,00
(2)
___________________________________________________________________
___________________________________________________________________
1.2 Calculate the total cost for making 10 Baby grows per week.
(3)
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
11.3 What will 1 decorated Baby grow cost if 10 are made each week?
(3)
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
Subtotal: 40
Grand total: 100
9|Page