ECONOMIC AND MANAGEMENT SCIENCES
GRADE 8
PROJECT:
MARKS:
2022 TERM 3
50
SCHOOL: ______________________________________
LEARNER: _____________________________________
DECLARATION BY LEARNER:
I HEREBY CONFIRM THAT ALL INFORMATION CONTAINED IN THIS DOCUMENT IS MY
ORIGINAL WORK.
______________________
SIGNED
______________
DATE
EXAMINER:__________________________________
MODERATOR:________________________________
INSTRUCTIONS
1.
2.
3.
4.
Answer ALL the questions.
Show ALL your calculations.
Start all new questions on a new page.
Write neatly and legibly
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Minimum Requirements for a Project
*
*
*
*
*
*
A Cover Page
A Table of Contents
Text divided into paragraphs/sections with headings and sub-headings.
Pictures, Photos, Diagrams and Graphs may be included
Include a Bibliography using the Harvard Method of Referencing
The project should be bound or stapled
ENTREPRENEURSHIP
TOPIC FOR PROJECT: FORMS OF OWNERSHIP
Write an essay of 3-4 pages in which you analyse and discuss various factors related to different
forms of business ownership. Follow the guidelines below to write the essay.
Your essay must include, but is not limited to, the following aspects.
1.
An introduction in which you briefly describe four different forms of ownership for a South
African business and discuss the importance of choosing the right form of ownership for any
business.
(10)
2.
Analyse and discuss the characteristics, advantages and disadvantages of a sole trader. (15)
3.
Give two motivated reasons why you would choose or not choose a sole trader as a
form of ownership for a small to medium enterprise.
(5)
Conduct an interview with any business owner and:
(10)
4.
4.1
4.2
4.3
4.4
State the name of the business owner, the name of the business and a telephone
number;
What type of ownership is this business?
Summarise why the owner chose this type of ownership;
Give your motivated opinion if this business owner made the right choice of form of
ownership.
6.
End your project with a summary paragraph in which you give a motivated opinion about
the dangers of a sole trader as a form of business ownership.
(5)
7.
Information must be gathered from any resource at your disposal e.g. internet, media,
newspapers, magazines, books etc. Use pictures, graphs, tables etc. to make your project
more interesting and to support statements that you have made.
Compile a bibliography according to the Harvard Method of Referencing.
(5)
Your project will be marked according to the following rubric: – Make sure you cover all the aspects
mentioned!
PROJECT TOTAL: 50 MARKS
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HARVARD METHOD OF REFERENCING
BOOK
Smith, A (2010). Grade 7 Life Orientation. Johannesburg: Oxford University Press. p. 26-28.
JOURNAL ARTICLE
Smith, A. (2011). Environmental Issues. Green Earth. 5 (2), p. 179-314.
WEBSITE
Smith, A. (2009). Pollution! Available: http://www.greenearth.com/. Last accessed 10 June 2014.
EMAIL
Smith, A. water@love_our_earth.co.za. Cleaning Up. 22 March 2017.
Your project will be marked according to the following rubric: – Make sure you cover all the aspects
mentioned!
PROJECT TOTAL: 50 MARKS
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Introduction
Characteristics,
advantages and
disadvantages
Motivated choice
Business owner
interview
Concluding end
paragraph.
Bibliography
Neatness.
EXCELLENT
GOOD
SATISFACTORY
NEEDS IMPROVEMENT
8-10
Excellent introduction and
knowledge of 4 forms of
ownership and
understanding of
importance to make correct
choice
12-15
6-7
Good introduction and
knowledge of 4 forms of
ownership and
understanding of
importance to make correct
choice
9-11
Good to very good
understanding of
characteristics, advantages
and disadvantages of a sole
trader
4
Good to very good insight
shown in motivated reasons
for or against choosing a
sole trader as a form of
ownership
6-7
Most relevant information
gathered. Good to very
good analysis if right choice
was made – motivated
opinion
6-7
Good end paragraph &
conclusion. Sources used
and mostly correct
bibliography format.
4-5
0-3
Satisfactory introduction and
knowledge of 2+ forms of
ownership and understanding of
importance to make correct
choice
None to poor introduction and
knowledge of 1/2 forms of
ownership.
5-8
0-4
Satisfactory and motivated
understanding of characteristics,
advantages and disadvantages of
a sole trader
None to poor understanding of
characteristics, advantages and
disadvantages of a sole trader
2-3
0-1
Acceptable to satisfactory insight
shown in motivated reasons for
or against choosing a sole trader
as a form of ownership
None to poor insight shown in
reasons for or against choosing
a sole trader as a form of
ownership
4-5
0-3
Adequate relevant information
gathered. Acceptable analysis if
right choice was made –
motivated opinion
None to little information
gathered. None to poor analysis
if right choice was made
4-5
Satisfactory end paragraph &
conclusion. Some sources used
and attempt at correct
bibliography format.
0-3
None to poor end paragraph &
conclusion. None or poor
sources used and incorrect
bibliography format.
Excellent understanding of
characteristics, advantages
and disadvantages of a sole
trader
5
Excellent insight shown in
motivated reasons for or
against choosing a sole
trader as a form of
ownership
8-10
All relevant information
gathered. Excellent analysis
if right choice was made –
motivated opinion
8-10
Excellent end paragraph &
conclusion. Sources used
and correct bibliography
format.
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10
15
5
10
10
Reference material may be distributed at educator’s discretion.
Sole Proprietorship
A sole proprietorship is a business that is owned and operated by a natural person (individual). This
is the simplest form of business entity. The sole proprietorship is not a legal entity. The business has
no existence separate from the owner who is called the proprietor. The owner must include the
income from such business in his or her own income tax return and is responsible for the payment of
taxes thereon. A sole proprietorship can operate under the name of its owner or it can do business
under a fictitious name. The fictitious name is simply a trade name–it does not create a legal entity
separate from the sole proprietor owner. Only the proprietor has the authority to make decisions for
the business. The proprietor assumes the risks of the business to the extent of all of his or her assets
whether used in the business or not.
Some
advantages
Some disadvantages
Simple to
establish and
operate
Unlimited liability of the owner
The owner is legally liable for all the debts of the business. Not only the
investment or business property, but any personal and fixed property
may be attached by creditors. The owner signs contracts in his or her own
name, because the sole proprietorship has no separate identity under the
law.
Owner is free to
make decisions
Limited ability to raise capital
The business capital is limited to whatever the owner can personally
secure. This limits the expansion of a business when new capital is
required. A common cause for failure of this form of business
organisation is a lack of funds. This restricts the ability of a sole
proprietor (owner) to operate the business effectively and survive at an
initial low profit level, or to get through an economic “rough spot
Minimum of
legal
requirements
Limited skills
One owner alone has limited skills, although he or she may be able to
hire employees with sought-after skills.
Owner receives
all the profits
Easy to
discontinue the
business
https://www.sars.gov.za/businesses-and-employers/small-businesses-taxpayers/starting-a-businessand-tax/sole-proprietorship/
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Advantages and disadvantages of sole proprietorship
Provided by Business Partners Ltd, South Africa's leading investor in SMEs
When you are deciding what kind of business to open, it's important to have the most appropriate
format for practical, legal and tax purposes. Is a sole proprietorship right for you? Let's find out.
A sole proprietorship is the simplest kind of independent business, as it doesn't need to
be registered as a legal entity. You can only choose this option if you're a single owner, though,
whether or not you employ or contract other people during the course of your work.
A sole proprietorship is often the ideal choice for a professional in private practice, a guest house
owner, or the owner of a small craft business, for example. For many, the advantages outweigh the
disadvantages, as long as the business is carefully managed.
Advantages Of A Sole Proprietorship
 It's a simple format to set up and manage, as it doesn't have to be legally registered
 It's suitable for a single owner, whether or not he or she employs or contracts other people
 You can start trading under your own name or a trading name immediately
 You do not have to separate your own finances of those of the business (since you are the
business), and you are taxed according to personal income tax rates
 Your only legal and financial obligations are those you have towards yourself
Disadvantages Of A Sole Proprietorship
As with all coins, there are always two sides. In terms of a sole proprietorship:
 There's no distinction between the business's assets and the owner's assets
 You are also responsible to pay any debts and liabilities incurred by the business
It may seem that this business format is the easiest and quickest, but it's not necessarily appropriate
for you. Going this route when you should be registered as some other legal entity (because of a
high turnover, for example) could end up costing you money and red tape along the line.
Do enough research and speak to a legal/tax professional in this area to structure your personal and
business assets in such a way that you will have some protection should your venture fail.
https://smetoolkit.businesspartners.co.za/en/content/advantages-and-disadvantages-soleproprietorship
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