NORTH WEST PROVINCIAL
ASSESSMENT
GRADE 9
ECONOMIC AND MANAGEMENT SCIENCE
NOVEMBER 2016
MARKS: 200
TIME:
2 HOURS
This question paper consists of 12 pages.
Economic and Management Science/Gr.9
2
INSTRUCTION TO LEARNERS
1.
Read all the instruction carefully
2.
Answer all the question on the answer sheet provided
3.
The duration of examinations is 2 hours
4.
Write neatly and legibly
NWPA/November 2016
Economic and Management Science/Gr.9
3
NWPA/November 2016
SECTION A
QUESTION 1
Various possible options are given as answers to the following questions.
Choose which one is the most correct answer and write only the corresponding
letter next to the question number on your answer sheet, for example 1.1B
1.1
In the simple circular flow model…
A
B
C
D
1.2
1.3
(2)
administration
marketing function
general management function
finances
One of the functions of human resources is…
A
B
C
D
(2)
the factors of production are privately owned
the government sets output targets for each area
people have little or no freedom of choice
everyone earns similar incomes
The business function that involves the setting of long term goals…
A
B
C
D
1.4
households are sellers of resources and demanders of products
households are sellers of products and demanders of resources
business are sellers of resources and demanders of products
business are sellers of both resources and products
In a market economy…
A
B
C
D
(2)
promoting the organisation
building good relations between the company and third party
protecting the image of the business
ensuring the business has the right skills in the right quantity at the
right time
(2)
Economic and Management Science/Gr.9
1.5
D
(2)
negotiations by trade unions with business about working conditions
a work stoppage by workers
the process of employing an external party to help workers find a
solution
unfair treatment of workers
Current assets refer to…
A
B
C
D
1.7
NWPA/November 2016
Collective bargaining is the term used to describe…
A
B
C
1.6
4
(2)
all assets owned by the company
assets that can be turned into cash quickly
assets that have high value to the company
assets which will last for more than one year
The owner deposits his capital contribution in the current account of the
business, R65 000
The analysis of it is…
Sources document
A
B
C
D
1.8
duplicate receipt
cheque counterfoil
cheque counterfoil
duplicate receipt
Account
debited
Bank
Capital
Bank
Capital
The General Ledger is…
A
B
C
D
the book of first entry
the summary of transactions in the subsidiary journals
the final book of entry for all transactions
a check that total debits equal credits
Account
credited
Capital
Bank
Drawings
Bank
(2)
Economic and Management Science/Gr.9
1.9
NWPA/November 2016
A Creditors List summarises…
A
B
C
D
1.10
5
the list of creditors
the amounts owed to creditors
the amounts owed to debtors
all of the above
The source document for credit purchases from Creditors is a/an…
A
B
C
D
(2)
(2)
original invoice
duplicate invoice
original receipt
cheque counterfoil
[20]
QUESTION 2
State whether the following statements are True of False. Write answer only.
2.1
An increase in the price of beef, will lead to an increase in the demand for
chicken.
(2)
2.2
The circular flow is in fact the huge market.
(2)
2.3
The driving force behind a market economy is profit.
(2)
2.4
When trading stock is bought on credit, assets as well as liabilities
increase.
(2)
The idea behind management is to achieve the lowest income with the
highest cost.
(2)
2.5
[10]
Economic and Management Science/Gr.9
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QUESTION 3
Choose the correct word in brackets and write it next to the correct number on
your answer sheet.
3.1
In a (planned / market) economy system the state controls all economic
activity.
(2)
In a (planned / market) economy prices are determined by demand and
supply.
(2)
3.3
An estate agency is an example of a (consumer / factor) market.
(2)
3.4
All income and expenses are (nominal / balance sheet) accounts.
(2)
3.5
When the media is invited to launch a new product it is called
(advertising / a press conference).
(2)
3.2
[10]
QUESTION 4
Match the statements in Column A with the term in Column B. Write only the
corresponding next to the question number, for example 3.1 C
4.1
COLUMN A
Membership fees
A
COLUMN B
leading
4.2
Business that offers credit purchases
B
market research
4.3
Customers that buy on credit
C
creditors
4.4
Data that has been process into useful form
D
tertiary sector
4.5
Analysing positives and negatives of the business E
4.6
Banking, transport, retailers and wholesalers
F
SWOT
4.7
Taking raw materials out of earth
G
national credit act
4.8
Direct and motivate workers to work efficiently
H
dues
4.9
Is protecting the consumer and credit provider
I
debtors
4.10
Finding out what consumer really want
J
primary sector
information
[20]
TOTAL SECTION A: 60
Economic and Management Science/Gr.9
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SECTION B
QUESTION 5
Read the following case study and answer the question that follows.
Shoprite strikers back at work
About 300 Malawian employees of the South African supermarket chain Shoprite
Training Limited have returned to work after their two-week strike failed to win any
concession from the company.
The workers, who were striking in support of their demand for better wages,
suspended the strike after the company advertised in the local press for workers to
replace them.
The workers, who claim they are paid as little K400 (about R23) a week, were
demanding a 400 per cent wage increase, having rejected the 12 per cent wage
increase offered by the Shoprite management. The strikers also demanded the
removal of Shoprite general manager Sven Eckoff and called for better working
conditions.
The general public was sympathetic to the strike. One consumer, Jonathan
Kazembe, commented: “You do not expect these workers to remain silent when
they are given very little pay. Shoprite deserve this.”
Most of the workers have to walk home at night after work, as they cannot afford
transport. Those with money wait for local minibuses to take them back to their
homes, some five or six kilometres away. A 32-year-old woman worker, said
management was to be blamed for the strike because it “never wanted to listen to
the workers’ grievances”.
Shoprite management approached the high court for an order to stop the strike,
which began on 29 October. The order was granted and the company also issued
an ultimatum to the workers to resume work or lose their jobs. They ignored the
ultimatum and were dismissed. The strikers obtained an order from the high court,
reinstating them.
When Shoprite advertised in the local press last weekend for workers to replace
strikers, hundreds of Malawians applied.
Source: Adapted from: Mail & Guardian 12 November 2004
5.1
In which African country did the strike take place?
(1)
5.2
Which company were the workers from?
(1)
5.3
How many workers were striking and why?
(2)
5.4
How much bigger were the salaries that the workers wanted, compared
to Shoprite was prepared to pay.
(2)
Economic and Management Science/Gr.9
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NWPA/November 2016
What were the Malawian government and the general public’s opinion
about the situation? Motivate your answer with the quote from the text.
(2)
5.6
What did Shoprite do when the workers were allowed to strike?
(2)
5.7
What did the strikers do? Give reasons for your answer.
5.5
(2)
[12]
QUESTION 6
6.1
Explain the following concepts.
a.
b.
6.2
Economic problem
Trade union
(2)
(2)
Use the words below to show the flow of money, factors of production
and goods and services between consumers and producers.
households
business
factors of production
factor market
goods and services
goods market
(8)
6.3
Explain how the producers and consumers interact in the market.
(6)
[18]
QUESTION 7
Choose the correct alternative in brackets
7.1
The demand curve has a (positive/negative) slope.
(2)
7.2
An increase in the quantity demanded at every price level is indicated
by a shift of the demand curve to the (right/left).
(2)
The quantity supplied (increases/decreases) as the price of a good or
services increases.
(2)
7.4
The supply curve has a (negative/positive) slope.
(2)
7.5
Law of demand states that “When price high demand is (high/low)”
7.3
(2)
[10]
TOTAL SECTION B: 40
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SECTION C
QUESTION 8
Use the transaction below to prepare the following journals for Star Supermarket
for the month of May 2015:
1.
Cash Receipts Journal
(5)
2.
Cash Payment Journal
(2)
3.
Debtors Journal
(4)
4.
Creditors Journal
(5)
5.
Debtors Allowance Journal
(2)
6.
Creditors Allowance Journal
(2)
The business applies a mark-up of 25% to all its products.
5
Sold goods on credit to R. Deli for R4 500.
12
Cash takings at the till amounted to R6 000 for goods sold.
15
Purchased stock on credit from Western Wholesalers, R7 500.
16
Sold goods on credit to C. Hotels for R5 000.
18
R. Deli returned goods wrongly supplied with a cost price of R600.
Credit note 402 was issued.
20
A debtor, C. Plaza, paid R2 000 in settlement of their account.
21
Purchased stationery for R1 500 and a new printer costing R4 000 from Top
Suppliers on account.
25
Paid R6 500 to Western Wholesaler in part payment of their account. Cheque
569 was used.
28
Returned stock bought from Cloverleaf Dairies for R500 as it was past its sell
by date. Debit note 001 was received.
Economic and Management Science/Gr.9
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NWPA/November 2016
QUESTION 9
9.1
For the following accounts, indicate whether the General Ledger account
would be a Debit or a Credit.
Bank overdraft; Trading Stock; Debtors Allowances; Creditors Control;
Wages paid; Discount received; Cost of Sales; Loan from Shareholder.
9.2
(8)
Analyse the transaction below to show the effect on the Accounting Equation
9.2.1 Stock purchased on credit for R5 000.
9.2.2 Cash sales of R7 500. A mark-up of 50% was applied.
(12)
[20]
QUESTION 10
Fill in the missing amounts
Cost Price
R2 500
10.2._______
R5 500
R6 000
10.5._______
Selling Price
10.1._______
R3 000
10.3._______
10.4._______
R7 500
Mark-up %
33.3%
50%
100%
20%
150%
(10)
Economic and Management Science/Gr.9
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NWPA/November 2016
QUESTION 11
Use the Totals below to prepare the General Ledger of Rainbow Store for the
following accounts.
1. Bank
(4)
2. Trading Stock
(4)
3. Cost of Sales
(1)
4. Rent Income
(1)
Totals in the Cash Receipts Journal: June 2.15
Bank
Debtors
Sales
Cost of
Control
Sales
59 305
20 670
17 276
12 340
Amount
7 750
Totals in the Cash Payment Journal: June 2.15
Bank
Trading
Wages
Stationery
Stock
45 696
28 670
8 500
850
Amount
6 785
Details
Rent income
Details
Equipment
(10)
TOTAL SECTION C: 60
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SECTION D
QUESTION 12
12.1
Give two reasons why a business might need to prepare a formal
business plan.
(2)
12.2
Name six essential components that a business plan should have.
(6)
12.3
Name 4 P’s of marketing mix.
(4)
12.4
Describe three issues that the financial plan addresses.
(6)
[18]
QUESTION 13
13.1
13.2
13.3
Name eight business function that are performed in the process of
running a business.
(8)
Give four examples of how the secondary sector depends on the
primary sector.
(8)
Name and explain three levels management
(6)
[22]
TOTAL SECTION D: 40
GRAND TOTAL: 200