2006
1. Kagiso completed senior secondary school with credit passes in commerce and accounting. He decided to go in maize farming.
(a)State three stages of production through which kagiso`s maize must pass before it reaches the final consumer.
[3]
(b)How will Kagiso make use of the following commercial services when maize farming?
i. Banking
[4]
ii. Advertising
[4]
(c)Discuss three ways in which the Botswana Agricultural Marketing Board (BAMB) can be of
help to kagiso?
[9]
2 (a) i. Explain self-service in retailing.
[2]
ii. Why do supermarkets use self-service?
[4]
(b) State advantages of automatic vending machines to the customer and the shopkeeper.
[4]
(c)Discuss why multiple shops often have a large share of the retail market.
[6]
(d)Why do multiple shops prefer to use their own transport instead of using transport firm for the carriage of their goods?
[4]
3 (a) Explain what you know by privatization.
[2]
(b)Mr. Masisi has been given cash compensation for the slaughter of his cattle due to an outbreak of foot and mouth disease in his area.
i. Having lost interest in rearing cattle altogether, Mr. Masisi decides to invest part of the money in either ordinary shares or debentures.
Which one of this two would you recommend and why
[6]
ii. In what ways can the stock exchange help Mr. Masisi?
[3]
c. Mr. Masisi wants to establish a business with the rest of his money and wants to open a bank account.
i. Which type of bank account would you advise Mr. Masisi to open and why?
[5]
ii. Discuss the use of direct debit for the payment of business expenses.
[4]
4 (a) Sports Supplies Pty LTD, a sports equipment importer, advertised in a journal
i. Why would sport supplies Pty Ltd advertise in a trade journal and not on television?
[6]
ii. Explain two ways in which an advertising agency would have been useful to sports supplies Pty Ltd in advertising the sports equipment.
[4]
(b) Sports matters, a retailer. Ordered some tennis and cricket equipment from Sports
Supplies Pty Ltd and received the following invoice.
1
Sports Supplies Pty Limited
Commerce Park
Unit 742
P O Box K224
Gaborone
To: Sports Matters
Plot 559
Stadium Road
P O Box 442
Francistown
Invoice no: 567
Description
Quantity
Unit price
Amount
T241 tennis racquets
40
200
8000
C106 cricket bats
20
140
2800
C193 cricket balls
50
150
7500
T109 tennis balls
100
50
5000
Invoice total
Terms of trading: 7 days 5%
30 days 2%
i. Explain the following terms, which appear, on the invoice.
•
E&O
•
7 days 5%: 30 days 2%
[4]
ii. Suggest what steps should be taken by Sports Matters on receipt of the goods
[3]
iii. Later Sports Matters found the tennis racquets to be of the wrong type and they returned them. Name the document which would be sent to Sports
Matters by Sports Supplies Pty Ltd and explain its function.
[3]
5. PZ Co Ltd is a general wholesaler which has a number of vehicles for delivery of goods.
(a)Explain four functions of a wholesaler.
[8]
(b) PZ Co Ltd has decided to ensure all its vehicles.
i.
Recommend, with reasons, one
type of
motor insurance
policy the company
should take
out
for
the motor vehicle.
[4]
ii. Explain the importance to the management of the PZ Co Ltd the principle of ‘utmost goods faith’ when obtaining motor insurance.
[4]
(c) One of PZ Co Ltd’s vehicles has an actual value of P300 000.It is insured for P200 000.
It has an accident and the cost of repair of the vehicle? Give reasons for your answer.
[4]
6. Sahel computers is a manufacturer of home computers in Botswana. Most deliveries within Botswana are made using Sahel computers’ own fleet of
vehicles while deliveries abroad are usually made by air transport.
a. i. Explain any two new developments in air transport.
ii. Would you advise Sahel computers to use the internet for the sale of its home computers? Justify your answer.
b .i. State two purposes of communication within an organization.
[4]
[6]
[2]
2
ii. Discuss the factors that affect the choice of communication method within an organization.
[2]
ii. Discuss the factors that affect the choice of communication method within an organization.
[8]
2007
1.
Lobs (Pty) Ltd is a milling company in Lobatse. It distributes its products mainly in southern Botswana.
(a) State two products from the company that may satisfy human wants.
[2]
(b) Explain, with examples, the two stages of production that Lobs (Pty) Ltd is involved in.
[6]
(c) Explain how the following may assist Lobs (Pty) Ltd:
(i)
Nata Transport Company.
[4]
(ii)
G-West Commercial Bank.
[4]
(d) Explain why this company needs to acquire and manage its own warehouse
2.
[4]
Brunary is a multiple chain shop in Botswana. It has been running a mall order department which is now being extended to include electronic
commerce (e-commerce).
(a) (i) State two features of multiple chain shops.
[2]
(ii)Explain three advantages of multiple chain shops to consumers.
[6]
(b) (i)Describe how Brunary provides a mall order service to its clients in Lusaka, Zambia.
[4]
(ii)Discuss the implications of introducing e- commerce to Brunary.
3.
[6]
Deon (Botswana) Ltd is a public limited company. It received a certificate of incorporation in March 2005. It exports finished goods to other
SADC countries while importing raw materials from South Africa.
(a) State four advantages of international trade to Deon (Botswana) Ltd.
[4]
(b) (i) Explain the relevance of the Certificate of Incorporation to Deon (Botswana) Ltd.
[2]
(ii)Explain how Deon (Botswana) Ltd may take advantage of the Botswana Export and Credit Insurance and the Botswana Export
Development
and
Investment
Authority
to
increase
its
regional
market.
[6]
(c)Explain
the
ways
Deon
(Botswana)
Ltd
might
make
sure
that
its
use
of
natural
resources
is
Sustainable.
[8]
3
4.
Moores Restaurant buys fresh foods directly from Shoto Farm at Pandamatenga. It received the following document on 30.10.2007:
Shoto Farm
P.O. Box 203
Pandamatenga
Tel: 244 1972
01.09.2007
To: The Purchasing Officer
Moores Restaurant
Box 301
Francistown
Your Order No. 223
Terms: 10% & days, 5% 30 days
Reference
Description
Quantity
Amount (Pula)
CH 02
Cabbages
20 bags
500.00
BO 21
Bananas
5 boxes
250.00
AG 32
Lettuces
60 kgs
660.00
ON 15
Onions
100 kgs
500.00
1910.00
10% trade discount
XXXX
YYYY
(a) (i)Identify the document shown above.
(ii)Calculate the missing figure XXXX and YYYY.
(b) (i) Suppose the actual amount was later discovered to have been higher than figure YYYY.
How should Shoto Farm correct the amount owed?
(iii)
[2]
Suggest two reasons why Shoto Farm sent the document to Moores Restaurant.
[4]
(c) Moores Restaurant has decided to issue a crossed cheque for P1000.00 to Shoto Farm in part payment. Sketch the cheque (in your
answer book) and complete it for P1000.00.
[5]
( d) Why might Shoto Farm prefer to sell its products directly to restaurants and retailers instead of selling them to wholesalers?
[6]
4
5.
Water for Africa is an international company originating from Cape Town, South Africa. It opened a water purification, packaging and
distribution plant in Gaborone in July 2005. The company ran the following advertisement on national television from October 2006 to March
2007.
WATER FOR AFRICA (H2O)
GABORONE WEST INDUSTRIAL AREA
Telephone 3952084 Cell 72122361
The water level at Gaborone dam has fallen to its lowest!!!!!!!!
Let’s all be water wise -
(a) (i) State the type of advertisement shown above. Give a reason for your answer.
(ii)Suggest
two
reasons
why
you
think
Waters
for
Africa
[2]
joined
the
Water
Conservation
campaign.
[2]
(b) Explain two benefits of advertising to consumers
[4]
(c) Some competitors of Water for Africa have complained to the Consumer Affairs
Department and the Botswana Bureau of standards. These competitors have requested
the department and the Bureau of standards to take action against Waters for Africa
carrying out unfair trade practices against them and against consumers.
(i)What is the Botswana Bureau of Standards?
[2]
(ii)Explain two examples of unfair trade practices that waters for Africa might be practicing
That might be affecting the consumer.
[4]
(iii)Explain how the Botswana Bureau of standards might assist in resolving the problems between Waters for Africa and its competitors.
[6]
6.
Destiny Tours acquired two safari Land Rovers for their business based at Ganzi. Both land rovers were financed by CEDA. Each vehicle
costs P400 000. Destiny tours insured both for P600 000.
(a) (i) State two other sources of finance that Destiny Tours could have used.
(ii) Describe two factors CEDA considered before granting finance to purchase the vehicles.
[2]
[4]
After one month, one of the vehicles was involved in an accident and was damaged beyond repair
(b) (i) Calculate how much Destiny Tours received as compensation.
(ii) Destiny tours used a standing order (stop order) to pay for its insurance premiums.
Explain the advantages of standing orders compared with cheques.
[4]
(c ) Examine how advertising using billboards on the trans- Kalahari highway and using the internet would
Help Destiny Tours to improve its business.
[8]
5
2008
Fig 1 shows the processes involved in the production of a loaf of bread.
Processing of
wheat into
flour
B
Growing and
harvesting of
wheat
A
Making of
bread and
packaging
C
Sale of bread
to consumers
E
Distribution of
bread to traders
D
D
Use fig 1 to help you answer question 1
a.i. What is meant by the term production?
[2]
ii. Classify the activities labeled A, B, C and D into primary, secondary, and tertiary stages of production.
[4]
b. i. Explain the meaning of the term specialization.
[2]
ii. Explain the relationship between specialization and trade in production of bread.
[6]
c. Explain how division of labour assists the business to increase the production of bread.
[6]
2. a. i. Outline two main features of a retail cooperative society.
[2]
ii. State two advantages of a retail cooperative society to a consumer
[2]
iii. Discuss the factors leading to the decline of cooperative societies in Botswana.
[6]
b. Show how the following trends might contribute to the continuous existence of a retail cooperative society.
i. Loss leaders.
[2]
ii. Branding of goods.
[2]
c. Explain the ways in which a retail cooperative society might make use of computers to run the business
efficiently.
[6]
3. An exporter in the United Kingdom made arrangements to send a large consignment of goods to Zambia, a member country of Southern Africa
Development Community countries. He prepares the necessary documents for export so as to receive payment from his customers through the bank.
a. State three functions of SADC.
[3]
b. Outline the steps taken by the exporter from the receipt of an indent from an importer to the shipment
of the goods.
[5]
c. Why is the bill of lading important to the importer?
[4]
d. The importer has three options to receive his payments from the customers.
i. bank draft
ii. Electronic transfer
iii. Letter of credit
Recommend the most suitable method of payment that the importer can make use of. Give reasons
for your answer.
[4]
e. SADC countries demand a consular invoice from exporters in the United Kingdom when goods are imported into their countries.
Explain why SADC countries demand consular invoices.
[4]
4. a. i. In what sector of the economy are public corporations found.
[1]
ii. State two examples of public corporations in Botswana.
[2]
6
iii. Describe the special features of public corporations which distinguish them from other types of business organizations.
[4]
b. Explain why the government takes part in business activities.
c. Discuss three possible effects of nationalization on the economy of Botswana.
[4]
[9]
5. Katie pty ltd is wholesale merchant selling consumer durable goods to Lesego Pty Ltd using hire purchase agreements. They enter into a legally
agreement of both parties in the sale of goods.
a. i. Define a contract of sale.
[2]
ii. Distinguish between an actual sale and an agreement to sell.
[4]
b. Explain the conditions involved in a sales contract.
[4]
c. Describe the benefits gained by Katie Pty Ltd of entering into hire purchase agreements with customers.
[6]
d. Explain how the consumer association might protect a consumer of Katie Pty ltd against unfair trade practices.
[4]
6. In recent years, the transport system in Botswana has rapidly developed with new trends in rail transport.
a. i. Identify two new trends that have been developed in rail transport.
[2]
ii. State two advantages of rail transport over road transport.
[2]
iii. Examine the effects of recent developments in rail transport on the economy of Botswana.
[6]
b. Explain two functions of a dry port.
[4]
c. A bonded warehouse is to be constructed at Gaborone railway station to cater for the increased volume of imports and exports.
Explain three benefits of a bonded warehouse.
[6]
2009
1. Mr thabo owns a small farm and produces crops for his family consumption.
a. i. Explain the meaning of production.
ii. Explain the stage of production Mr. Thabo is involved in?
[2]
[2]
(b) Mr. Thabo wants to expand to large scale farming.
i. State two government programmes that will assist him.
[2]
ii. Explain three ways in which specialization would benefit Mr. Thabo.
[6]
(c)Discuss how transport and insurance will assist Mr. Thabo in his farming.
[8]
2(a) A cell phone company has introduced new brand of cell phones
i. What is meant by branding?
[2]
ii. What role does packaging and branding play in advertising this cell phone?
[6]
(b)How does the code of advertising practice help to protect consumers?
[4]
(c)Discuss the factors which affect the choice of advertising medium a business can use
for a product.
[8]
3. Thabiso has established a milling company. He has problems with identifying sources of supply for his mill.
a.i. State the processes in choosing a supplier.
[4]
ii. Explain two documents which will be used before Thabiso buys his raw materials
[4]
7
(b)The following information in fig.1 relates to Thabiso milling company’s stock record card.
Fig 1.
Stock record card for Thabiso milling company
Stock: maize
Stock levels:
Supplier: BAMB
max. 40 tonnes
Min: 10 tonnes
Delivery time: 2 weeks
Received
Issued
Date
Quantity
From
01/ 06/09
40 tonnes
BAMB
02/06/09
-
20 tonnes
Production dept
20 tonnes
20/06/09
-
5 tonnes
Production dept
X
5 tonnes
Production dept
10 tonnes
29/06/09
Quantity
To
Balance
40 tonnes
i. Explain the entry on 01 June 2009.
[2]
ii. Calculate the balance on 20 June 2009. Show your working.
[2]
c. i. State two rules for storing different stock.
[2]
ii. Explain how computers would assist in stock control
[6]
4. Jabba Public Limited Company has been incorporated and listed on the Stock Exchange and it is expanding rapidly.
a)
.i. Define the term Stock Exchange.
[2]
ii. Distinguish between an incorporated and unincorporated business.
[4]
(b)Explain the part the Registrar of Companies played in the formation of Jabba Public Limited Company.
[6]
(c) Examine the possible causes of Stock Exchange turbulence Jabber Public Limited Company would now
be exposed to.
[8]
5 (a) State any two rights of consumers.
[2]
(b) Explain why customers need protection when buying goods and services.
[6]
(c) Consumers often complain that businesses do not treat them fairly because there are no consumer associations in Botswana. Outline the purposes
of forming a consumer association.
[4]
(d) Businesses world wide always emphasize the importance of good customer service. Discuss three features of good customer service.
[8]
6. The picture in fig.2 shows a truck leaving a ferry. Use the picture in fig 2 to help you to answer some of the following questions
a.i. Define the term containerization.
[2]
ii. Explain the ways in which containerization can be a benefit to business
[6]
(b) State four advantages of using the mode of transport shown in the picture above.
[4]
(c)Explain how the following principles of insurance can be used when transporting containers.
i. Indemnity
[2]
ii. Proximate cause
[2]
iii. Insurable interest
[2]
iv. Utmost goods faith
[2]
8
2010
1. Betsho enterprise is a manufacturer of spices in Lobatse who exports and sells locally to wholesalers. Its spice is packaged in colorful
plastic bags.
(a)Explain the importance of packaging to Betsho’s enterprises.
[4]
(b) i. How might wholesalers assist Betsho’s enterprises in selling his spices?
[6]
ii. Explain two points on which an agreement must be reached between Betsho and wholesalers
[4]
(c)Discuss the importance of any documents that Betsho enterprises will use when
exporting their spices.
[6]
2. Thabo offered his friend, Neo, the chance to be a partner in his taxi business.
(a) i. State two features of partnership.
[2]
ii. How might Thabo benefit from having a partner rather than operating the taxi business alone?
[4]
(b)What contributions can their business make to the economy of Botswana?
[4]
(c)Thabo and Neo want to buy an existing car wash business in their town. Explain any two processes required in buying an existing
business.
[4]
d) Discuss two sources of finance that Thabo and Neo will use if they changed their business into a private limited company.
[6]
3. Study the advertisement below.
AFRICA NEEDS YOU
Millions of people are starving in Africa.
Your P2.00 could help
To donate call:0800200200
a. i. Name this advertising media.
[1]
ii. Explain two types of advertising that have been used in this advertisement.
[4]
b. State two reasons why a company may engage an advertising agency.
[2]
c. Explain any two ways in which the code of advertising practice protects the public
[4]
d. Evaluate the importance of the postal services provided by the post office to a business.
[9]
4. Mma Thato is involved in import trade. She normally buys oranges from farmers in South Africa.
a. Explain any two problems she might face when importing the oranges from South Africa.
[4]
b. A duty of P10 is charged on every tonne of oranges.
i. What type of duty is this?
[1]
ii. Calculate how much duty will be paid if three tones of oranges are imported. Show your working
[2]
c. The Botswana government has decided to encourage local orange farmers to increase production. Discuss three ways by which the
government can protect the farmers from foreign competition.
d. Explain two functions of SADC as a trading bloc.
[9]
[4]
9
5. Ko Gae Music is a market stall selling cassettes and CD’s.
a. i. State two other types of small scale retailers.
[2]
ii. Explain three consumer rights that Ko Gae music customers have.
[6]
b. Explain how small retailers like Ko Gae Music have avoided closing down.
[6]
c. Discuss the effects of computers and E-commerce on small retail business.
[6]
6. Tebogo works in a supermarket which accepts cheques as a means of payment.
a.i. What is a cheque?
[2]
ii. Discuss the implications of using cheques as a means of payment
[6]
iii. Explain the importance of savings to Tebogo.
[4]
b. Asses the importance of commercial banks to a supermarket business.
[6]
c. State any two rules for storing different types of stock which the supermarket should observe.
[2]
2011
1. Timber Stars is a small business producing furniture. Recently it has decided to use division of labour in its production as shown in fig 1.
Marking
the timber
Cutting the
timber
Joining the
pieces
Final
touches
Quality
control
a. Explain two advantages of division of labour.
[4]
b. How would the following aids to trade contribute to the success of Timber Stars.
i. Banking
ii. Warehousing
[3]
c. Differentiate between small and large scale retailers.
[4]
d. Discuss the importance of e-commerce to business.
[6]
2. Thebe Ltd owns a chain of supermarkets. Goods are purchased directly from manufactures and dispatched to the branches from the head office.
a. i. State four features of a supermarket.
[4]
ii. Evaluate the benefits of self service to Thebe Ltd.
[6]
b. Explain two reasons for the elimination of the wholesaler.
[4]
c. Discuss the importance of good customer service to a chain of supermarkets such as Thebe Ltd.
[6]
3. Botswana is increasingly involved in international trade. This calls for the country to review the procedures and processes involved in foreign trade.
a. State two types of middlemen that are involved in foreign trade.
[2]
b. Describe the process of discounting a bill of exchange.
[3]
c. Discuss any two problems that could be faced by business people who export goods from Botswana.
[6]
d. Evaluate three methods that a country can use to solve balance of payments problems.
[9]
4. The Botswana Government has decided to take control of the Brigade Centers which have been owned by the communities.
a. In which sector of the economy are nationalized industries found.
[1]
b. Evaluate the effects of nationalization by the Botswana government on its economy.
[9]
10
c. Why should a business person who has registered a company be issued with a certificate of
incorporation.
[4]
d. Why might the management of a newly registered private company want to float the company on the stock exchange?
[6]
5. Tshego has been operating a salon from the back of her yard. She wants to relocate to bigger premises but lacks capital to finance the relocation.
Tshego is advised to take a bank loan or an overdraft.
a. State two sources, other than a bank loan or an overdraft that can be used by Tshego.
[2]
b. Tshego could take a bank overdraft or loan. Which one would you recommend? Give reasons for your recommendation.
[9]
c. After expansion Tshego insured the salon against fire for P12 000 when the actual value was P18 000. After two years of operation, there was a fire
at the salon and the cost of repairs was P6 000.
i. Calculate the amount of compensation Tshego would get from the insurer. Show your working.
[2]
ii. Why would Tshego be paid that amount of compensation.
[3]
iii. Explain the principle of insurable interest in insurance contracts.
[4]
6. Fig. 2 shows a statement of account for Cell World Pty Ltd, a dealer in cell phones. Use it to answer question (a) i. and ii.
CELL WORLD PTY LTD
PLOT 23, KOLOBE ROAD, PALAPYE
P O BOX 364, PALAPYE
TEL: 492 0021
Statement no: 3342
date____________
Ms ……………………………………………
………………………………………………..
……………………………………………….
………………………………………………
date
Oct. 2
item
Debit (P)
Credit (P)
Balance c/f
Balance (P)
175
____
10
Goods
275
Cash
200
250
13
Returns
60
190
20
Cheque
190
23
Goods
28
Returns
E & OE
a. i. Calculate X. show your working.
350
350
X
275
Terms: 5 % monthly
[1]
11
ii. Explain two reasons for the importance of the statement of account to Cell World Pty ltd.
[4]
b.Cell World Pty ltd is experiencing a continuous decline in sales. How might an advertising agency assist Cell World Pty ltd to reverse the trend?
[6]
c. Discuss three factors that would affect Cell World Pty Ltd.’s choice of advertising medium.
2012
1.
(a) The government of Botswana wants to privatize Air Botswana, a public corporation, and a
South African company is
likely to buy it.
i.
What is privatization?
[1]
ii.
Explain two features of a public corporation.
[4]
(b) Explain how the South African company might benefit from purchasing Air Botswana.
[6]
(c) Discuss the arguments for and against Air Botswana remaining in the public sector.
[9]
Fig 1 is an advertising medium. Use fig 1 to answer question (a) (i) and (ii).
Month end special !!!!!!!
HOME CITY
CATALOGUE
LADIES SHIRTS P299
LADIES SHORT SLEEVE SHIRT P120 LADIES SHOES HEELS P195
LADIES PUMPS P120
LADIES WINTER LONG JACKETS P299
LADIES JERSEYS P180 LADIES PANTS P299
HAND BAG P55
BOOTS P320
HURRY , STOCK LIMITED
Fig 1
2. (a) (i). What is advertising?
(ii) State the type of advertising shown in fig.1
(iii)Give an example of a business that makes extensive use of this advertising medium.
[1]
[1]
[1]
Mpho owns a retail business which sells goods throughout Botswana. The business makes extensive use of advertising and the Post
Office in its operations.
(a) Describe two Post Office services Mpho’s business may use to deliver goods to customers.
[4]
(b) Should Mpho make use of advertising agencies for her business? Give reasons for
your answer
[4]
Evaluate the use of a catalogue rather than television for advertising Mpho’s business.
[9]
12
3. Kagiso is running a business as a sole trader in Toyota. He has decided to buy a computer from Zowa Communications in
Francistown.
(a) Explain two benefits to be gained by kagiso from running a business as a sole trader.
[4]
(b) Prepare the order that Kagiso will send to Zowa Communications for the purchase of the computer.
[6]
(c ) Kagiso’s business has a current account with Naledi Bank.
(i)
What is a current account?
[1]
(ii)
Discuss three services Naledi Bank can provide to Kagiso’s business.
[9]
4. Neo (Pty) Ltd is an importer of fashion clothing from Europe and distributes them to SADC countries.
(a) Explain two reasons why transport is important to commercial activities in Botswana.
[4]
(b) Why should Neo (Pty) Ltd use road transport instead of rail transport for the distribution of clothing in the SADC region?
[6]
(c ). Why might Botswana rely heavily on the road transport for her exports?
[6]
(d). Explain the role played by the Custom and Excise Department in Botswana.
[4]
5. (a) (i) Explain what is meant by a consumer co-operative retail society.
[2]
(ii) Explain how co-operative societies are formed.
[6]
(b)Explain the contribution the contribution of co-operative societies to the economy
of Botswana
[6]
(c ). Members of Mogolo Co-operative Society in Kanye are planning to expand their operations into the SADC market.
Would you advise the Co-operative Society to enter into the international market? Justify your answer.
[6]
6.
Katlego is an export merchant operating from Gaborone. The business sells furniture to companies in the United Kingdom.
The business has a large warehouse valued at P 150 000, Katlego has insured the warehouse with Metropolitan Botswana and
Botswana insurance company Ltd at P 100 00 each. The warehouse has just been damaged and the cost of damage is valued at P
60 000.
(a)
(i) Calculate how much each insurance company pay Katlego. Show your working.
[3]
ii). Why will insurance companies pay Katlego the amounts you calculated in (i) above?
[2]
(b)
Explain two types of insurance that Katlego should buy.
[4]
(c)
Outline to Katlego the process of buying insurance cover for its furniture export.
[5]
(d)
Explain how the Bill of Lading will be important to Katlego.
[6]
13
2013
1. Mr. Modise is a large – scale farmer who practices division of labour.
(a) (i) what is meant by direct product?
[1]
[ii] Explain how specialisation relates to trade.
[4]
(b) Explain three ways in which value would be added to Mr. Modise’s products in order to satisfy consumer needs or wants.
[6]
(c) Discuss the implications, for a business of division of labour as a method of production.
[9]
2. Ms Moraka is running a mobile shop business in her neighbourhood. Over the past year it has traded successfully, but now the
business is facing competition from other traders.
(a) (i) state one feature of a mobile shop business.
[1]
(ii) Evaluate three possible strategies that Ms Moraka could adopt for the survival of her mobile shop business.
[9]
(b) Ms Moraka has now decided to buy a supermarket franchise.
(i) Explain how Ms Moraka would benefit from buying a franchise.
[4]
(ii) Discuss whether or not Ms Moraka’s franchised supermarket would benefit from e-commerce.
[6]
3. Jobe (Pty) Ltd produces household goods and sends them abroad using sea transport. The business has seen a fall in sales recently.
(a) (i) Explain two reasons why Jobe (Pty) Ltd is experiencing a fall in sales.
[4]
(ii) Explain three factors that Jobe (Pty) Ltd would consider when choosing an advertising medium to improve sales .
[6]
(b) (i) State one advantage of water transport for Jobe (Pty) Ltd.
[1]
(ii) Assess the use of containerization by Jobe (Pty) Ltd when carrying out its activities.
[9]
4. Boitshoko (Pty) Ltd exports clothes and uses a forwarding agent when dealing with the Department of Customs and Excise.
(a) (i) State one difference between customs and excise duties.
[1]
(ii) Explain two ways in which a forwarding agent would assist Boitshoko (Pty) Ltd.
[4]
(c) Evaluate three services offered by commercial banks to help Boitshoko (Pty) Ltd in its business.
[9]
5. Ms Mophatho, a farmer, owns Barolong farms . She has entered into a contract with Botswana Agricultural Marketing Board
(BAMB) for sale of farm produce.
(a) Explain the following terms:
(i) Offer
[2]
(ii) Acceptance
[2]
(b) BAMB wants to purchase the following produce from Barolong Farms today:
250 bags of 50kg sorghum at P60.00 each
500bags of 70kg maize at P75.00 each
200 bags of 50kg beans at P80.00 each
Prepare an order for the purchase of the farm produce from Barolong farms.
[7]
(c) Assess the extent to which BAMB can assist Barolong Farms in its farming activities.
[9]
6. Bokamoso wholesalers (Pty) Ltd delivers goods to its customers throughout Botswana in its own fleet of motor vehicles.
(a) (i) Explain one feature of a wholesaler. [1]
(ii) Evaluate the effectiveness of the road transport system in Botswana in helping Bokamoso Wholesalers (pty Ltd.
[9]
14
(b) Bokamoso wholesalers (Pty) Ltd has bought a new van and has decided to insure it. It completed the insurance proposal form
below.
THE PROPOSER
Bokamoso wholesalers (Pty) Ltd , Box 14612 Broadhurst,
Name and address: Gaborone
Address where the van will be kept: Bokamoso Wholesalers (Pty) Ltd
Occupation or Business: wholesaler Driver’s age: 23
THE CAR
Make and model: MAN – HEAVY DUTY
year 2012
Estimated present value: P1.2million Registration Number: B143 ASA
OTHER INFORMATION
Type of cover: Comprehensive
(comprehensive / third party fire an theft /third party)
Use of vehicle.
Commercial travel/ delivery of goods / transport of cattle: Delivery of goods
Has the driver had any accident in the last 5 years :No
Has the driver or any of your drivers had any driving convictions in the last 10 years? No
DECLARATION: I declare that to the best of my knowledge and belief, the above answers are true and that all
material information has been given.
Signature: D.Dintsho (transport Manager) Date 15/10/13
important: if you fail to disclose all material information the insurance policy may not operate.
(i) “Important: If you fail to disclose all material information the insurance policy may not operate.” Explain the insurance principle
which is being applied.
[3]
(ii) Explain how the details given in the proposal form would affect the premium that Bokamoso Wholesale (Pty) Ltd would pay. [6]
15
2014
1. Masego is a hawker who has a license to operate around Botalaote ward in Malotwane. Most of his customers buy on credit. A new
shopping mall has just been opened in that area. This is threatening the survival of Masego’s business.
(a) (i) What is meant by the term hawker? [1]
(ii) Explain two problems faced by Masego as a hawker
[4]
(b) Explain how the selling on credit will affect Masego’s business.
[6]
(c) Besides credit, evaluate three strategies Masego’s business should adopt in order to survive the opening of the shopping mall. [9]
2. Diamante is a multinational company based in Botswana. It uses containers to transport its products from Malawi to Botswana.
Diamante has recently been listed on the Botswana Stock Exchange.
(a) i. What is meant by the term Stock Exchange?
ii. Outline the process Diamante would have taken to issue shares.
(b) Explain how the use of containers would benefit Diamante.
(c) Diamante has subsidiary in Malawi. Assess the impact Diamante would have on the economy of Malawi.
[3]
[4]
[4]
[9]
3. Country X has been experiencing Balance of Payments problems. This is due to the low demand for major exports and at the same
time increased imports. The government is looking into possible ways of solving this problem.
(a) i. Define Balance of Trade.
[1]
ii. Explain two differences between the balance of Payments on capital account and the Balance of payments on current account for
Country X.
[4]
(b) Analyze three implications of an unfavorable balance of payments to Country X.
[9]
(c) Explain the importance of the International Monetary Fund in foreign trade.
[6]
4. Bray School entered into a contract with SK Bakery to supply bread every week when the school is in session. The document in
figure 1 is brought to the school every time SK Bakery supplies the bread. Use the document in fig.1 to answer Question 4 (a).
SK Bakery
P O Box 200
Gaborone North
Tel: 3901538
05/08/2014
To: Bray School
Madirelo way
Gaborone
Order No: 008
REFRENCE NO
WB 101
BB 102
Totals
Goods accepted by: Portia Kgato
Signature PK
Date: 12/08/2014
DESCRIPTION
White bread
Brown bread
QUANTITY
150 loaves
150 loaves
300
Driver’s name Lepang Moagi
Driver’s Signature LM
Date : 12/08/2014
(a) i. Name the document shown in Fig. 1 above.
[1]
ii. Explain how the document shown in Fig.1nis useful to the school.
[4]
(b) Explain the process Bray School has used to select SK Bakery as its supplier.
[6]
( c) The school usually places its orders for bread using email. Assess the effectiveness of this method of communication to the school.
[9]
5. Mobazaar is a chain store in Botswana. It specializes in children’s clothes and advertise its products through magazines.
(a) i. Name one method of advertising appeal that can be used by Mobazaar.
[1]
16
ii. Explain three benefit of using magazines as a medium if advertising to Mobazaar.
[6]
Mobazaar is a customer of Star Bank. It has been accepting cash only as a method of payment. It is considering accepting cheques as
an additional means of payments.
(b)Explain how banking with Star Bank will benefit Mobazaar’s business.
[4]
(c)Should Mobazaar accept cheques as a means of payment? Justify your answer.
[9]
6. ABC Company operates from its own warehouse. The fire broke out and burnt down the entire warehouse killing Marumo, an employee
of the Company. ABC Company had insured each employee for
P 30 000 and Marumo also had personal insurance cover of P150 000.
(a) (i) Identify the type of insurance under Which Marumo was insured at work.
[1]
(ii)Calculate how much Marumo’s family will receive as benefits.
[2]
(b) During the investigations it was discovered that the warehouse , which was valued at
P 1.5 million, was insured for P 900 000.
Mentioning any insurance principles involved, explain how much the insurance company would pay
ABC Company as compensation.
[8]
(c ) Assess how the loss of the warehouse that was burnt in the fire accident would affect ABC Company’s
operations.
[9]
2015
1.
Mr. Boipuso owns a Wholesale butchery outlet and sells to retailers in Kgatleng District. The business is expanding so Mr.
Boipuso is considering to buy a delivery van on hire purchase.
(a)
(i) State the difference between direct and indirect production.
[2]
(ii)Using a diagram, show a possible chain of production for Mr. Boipuso’s business.
[3]
(b)Discuss three implications for Mr. Boipuso of buying a delivery van on hire purchase
[9]
(c) Explain the role that could be played by the finance house in the hire purchase transaction
[6]
2.
Mk Flow is a company that offers water reticulation services. The company has been
contracted by Water Utilities Corporation (WUC) to connect pipes into residential and business
premises.
(a)
(i) Explain the term contract of sale.
[2]
(ii)Explain three points in which an agreement between MK Flow and Water Utilities
was reached.
(b)
Identify three factors that MK Flow will consider when choosing a method of
communication with its customers.
(c)
[6]
Assess the possible effects on consumers of commercializing Water Utilities Corporation.
[3]
[9]
17
3.
Thebe, a fashion retailer, buys stock from KBE Manufactures, a multinational company
Which operates in Botswana. Thebe decided to invite Moilwa, who sells shoes, to join him as a partner but is not sure
whether they should form a limited partnership or a general partnership. They would like to buy a life assurance policy.
(a) (i) What is meant by the term insurance?
[1]
(ii)Explain two differences between whole life assurance and term endowment policies.
[4]
(b) Explain how Thebe and Moilwa would benefit from the formation of the partnership.
[6]
(c) KBE Manufactures is a multinational company with factories in Botswana.
Assess the possible effects that KBE Manufactures might have on the economy of Botswana.
4.
[9]
Mr, Nkwe is a furniture manufacturer. He sells his products locally and abroad. He has been advised to seek assistance from a
factor.
(a) (i) State three problems that Mr. Nkwe is likely to face as an exporter.
[3]
(ii) Explain two ways in which Mr. Nkwe could make use of a factor in his business.
[4]
(b) Explain why Mr. Nkwe would choose to buy raw materials and components to make the
Furniture from outside the country?
[4]
(c ) Mr Nkwe has decided to use television to advertise his furniture. Evaluate the use of television by Mr. Nkwe to advertise the
furniture.
5.
[9]
Ruth Patel has an account with Unity Bank in Palapye. She owes David Kwadi P 4045.00. David Kwadi banks with Pula
Bank at Tete in Gaborone. Ruth Patel decides to pay David Kwadi by cheque.
(a) Show the process through which the cheque would pass before David Kwadi is paid.
[5]
(b) The cheque is shown below.
“ “243””
UNITY BANK
5 Khama Road, Palapye, Botswana
DATE
30
09
2015
DD MM YYYY
PAY: David
Kwadi
OR ORDER
THE SUM OF: Four Thousand and Forty –Five Pula Only
“ “243””
: 00005= = = 1 2 3 “”4 5 6 “”7 “
P 4045.00
Signature
Use the cheque given in fig 1 to help you to answer the following question.
State two implications of the crossing on the cheque David Kwadi.
[2]
18
(c ) Explain two reasons why good customer service is important to Unity Bank
[4]
(c) Evaluate the effects of e-banking on Unity Bank as it carries out its activities.
6.
[9]
Matrix Enterprises, a retailer, deals in stationery and supplies customers in and around Kasane.
Matrix Enterprises buys products from Magic Suppliers (Pty) Ltd in Durban, South Africa. Matrix Enterprise receives the
invoice shown in fig.2. Use it to answer question 6 (a) and (b).
INVOICE
Magic Suppliers (Pty) Ltd
Durban, South Africa
P.O.Box 25
Jack Zumba Road, Plot No. 555
Tel: 0027830024386
Fax: 002730456389
Invoice No: 001
Order No: 025
Date: 30 September 2015
Matrix Entreprises
Box 204
Kasane
Quantity
Description
300
1000
1250
450
Total
Cartons of excercise books
Boxes of rulers
Boxes of book-keeping books
Boxes of correction pens
Unit Price
P
100
50
60
30
Total
P
30 000
50 000
75 000
13 500
Terms of trading 5% 30 days
E&OE
Fig.2
Use fig.2 to help you to answer the following questions.
(a) (i) Calculate the amount that Matrix Enterprises should pay for this invoice.
(ii)What does the letters E&OE stand for? Explain its importance to Magic Suppliers (Pty) Ltd.
(b) State two ways in which the invoice is important to Matrix Enterprises.
[2]
[3]
[2 ]
(c) Explain the benefits to Magic Suppliers (Pty) Ltd of using containers to deliver supplies to customers including Matrix
Enterprise.
[4]
(d) Discuss whether or not Matrix Enterprises should own its own transport. Give reasons for your opinion.
[9]
2016
19
1.
Ludo owns a supermarket whose sales are increasing despite competition from other retailers. Ludo plans to expand by
opening another branch in a nearby village, so she decided to carry out a market research.
(a) (i)State one feature of a supermarket.
[1]
(ii)Explain two reasons why there is an increase in sales in Ludo’s supermarket.
[4]
(b) Explain three methods of field research that Ludo might use to gather information about the opening of the new branch.
[6]
(c) Discuss the implications of self service to Ludo’s business as a method of trading.
2.
[9]
Paul Limited is a factory producing baby clothes. It sells all of its products to Namibia.
(a) (i)What type of trade is Paul Limited involved in?
(ii)Suggest two stages of production that Paul Limited is engaged in.
[4]
(b) Identify three agents and explain how each of them could help Paul Limited to trade.
[6]
(c ) Discuss three problems that Paul Limited would experience when selling clothes to Namibia.
[9]
3.
TK General Wholesalers has entered into a contract of sale with Gosiame Bakery which supplies it with bread. The two
parties mostly use landline telephone as a means of communication.
(a) (i)What is an agreement to sell?
[1]
(ii)Explain two points, other than price and quantity, on which TK General Wholesalers should reach an agreement with
Gosiame Bakery.
[4]
(b) Explain three functions performed by TK General Wholesalers for Gosiame Bakery.
[6]
(c) Assess the use of landline telephone to TK General Wholesalers as a method of communication with Gosiame Bakery.
[9]
4.
Fig. 1 Shows an advertisement for Thuso Bank.
Get a THUSO BANK
Personal credit card and Small Micro Medium Enterprise [SMME]
Quick loan of up to P250 000 and grow YOUR BUSINESS.
•
Hassle free
•
Flexible repayment
•
Lower interest rates
•
Quick
THUSO
BANK
Fig.1
Use Fig.1 to help you answer the following questions.
(a)
(i) What type of advertisement is shown in Fig. 1 above?
[1]
(ii)Explain two factors that Thuso Bank might have considered when designing
the advertisement.
[4]
(b)
Analyse two advantages that Thuso Bank might gain by using advertisements such as Fig.1.
[6]
(c)
Evaluate the use of a credit card as a means of payment used by clients of Thuso Bank.
[9]
20
5.
Theko Ltd is a listed company at Botswana Stock Exchange providing transport services.
It has decided to become a multinational company by opening subsidiaries in many different countries in Southern Africa,
including Mauritius.
(a)
(i) Define limited liability.
[1]
(ii)Draw a labeled diagram of the structure of the Botswana Stock Exchange.
[4]
(b) Explain three reasons why Mauritius would allow Theko Limited to invest in the country.
[6]
(c ) Discuss whether or not Theko Limited made the right decision to become a multinational company. Justify your
answer.
[9]
6. Changu Limited imports fruits and vegetables for sale in Botswana. It uses a warehouse and trucks owned by Tom [Pty] Ltd for
storage and delivery. Changu Limited wishes to insure the trucks , fruits and vegetables against accidents.
(a)
(b)
(i) State the type of warehouse used by Changu Limited.
[1]
(ii)Explain two benefits of warehousing to Changu Limited.
[4]
(i)Would Changu Limited be able to insure the trucks against the risk of accident?
Give reasons to your answer.
[2]
(ii)Describe two documents that Changu Limited could use when obtaining insurance
for the fruits and vegetables.
[4]
(c ) Changu Limited is thinking of buying its own trucks for delivering goods. Evaluate the benefits
On Changu Limited of having its own trucks.
[9]
2017
1. Moyo and his family grow vegetables on their farm and sell them through their small retail shop in the city.
(a) What type of production is Moyo’s family involved in?
[1]
(b) Explain three problems that Moyo’s family business may face in ensuring its survival.
[6]
(c ) Explain how Moyo’s family business might benefit from division of labour.
[4]
(d) Discuss three ways in which Moyo’s family business would benefit from the
use of computer technology.
[9]
2. The expansion of home trade has brought about many changes. One of the changes is the development of shopping malls, which have
affected the lifestyles of communities and their consumers.
Fig. 1 is a picture of a shopping mall.
21
Fig. 1
Use Fig.1 to help you answer the following questions.
(a) State three features of a shopping mall shown in fig. 1.
[3]
(b) Explain three reasons for the development of shopping malls in the retail trade.
[6]
(c) i. State the difference between a hypermarket and a department store.
[2]
ii. Assess three ways in which the elimination of wholesalers would affect retailers.
[9]
3. Botswana Agricultural Marketing Board (BAMB) has entered into a contract to buy cereals from farmers and sell inputs to farmers.
BAMB often advertises its products.
(a) Describe two types of advertising that BAMB may use.
[4]
(b) The following transactions took place between BAMB and Farmer A, during November 2016.
Farmer A had a balance of P2500 at the end of October 2016.
11 November: BAMB supplied ploughing equipment worth P45 000, on credit, to Farmer A.
15 November: Farmer returned defective ploughing equipment bought on the 11 November to BAMB, worth
P5000.
18 November: Farmer A issued a cheque worth P30 000 to BAMB
30 November: Farmer A received fertilizers worth P35 000 from BAMB, on credit.
Prepare a statement of account sent by BAMB to Farmer A, with addresses of the two parties (addresses of your choice).
[5]
(c ) State two rules used by BAMB for storing different types of stock.
[2]
(d) Evaluate three reasons why the government of Botswana established the Botswana Agricultural
Marketing Board.
[9]
22
4. Botswana’s international trade has been affected by the recent world economic recession.
(a) State one reason why Botswana takes part in international trade.
[1]
(b) Explain one function of the Southern African Customs Union (SACU).
[2]
(c) Explain two ways how Botswana Export Credit Insurance can assist businesses in Botswana.
[4]
Fig. 2 shows Botswana’s trade with the rest of the world in 2016.
P (million)
Visible exports
450
Invisible exports
120
Visible imports
350
Invisible imports
300
Loans from abroad
80
Investments abroad by Batswana
200
Foreign investment in Botswana
160
Botswana’s reserve
300
Fig. 2
XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX
NO QUESTIONS….
5. Lepang Limited, a multinational company, owns a ferry in Kazungula along the Zambezi River. It also owns a dry port in
Francistown. The local community is not happy with the operation of Lepang Limited.
(a) i. What is a multinational company?
[1]
ii. Explain three reasons why the local community may not be happy about the
operations of Lepang Limited.
[6]
(b) i. Describe two functions of a dry port.
[4]
ii. Evaluate three ways in which inland waterways may be useful to the economy of Botswana.
[9]
6. Commercial Banks assist businesses in need of money as well as those with surplus money for the benefit of the economy while an
insurance company minimizes risks for these businesses.
(a) Describe two bank services that might be available to a business with surplus money.
[4]
(b) Explain three ways in which a bank may assist those businesses that are in need of funds.
[1]
(c ) What is meant by insurance?
[1]
(d) Discuss three ways in which insurance activities are necessary for a growing economy such as Botswana.
[9]
23
2018
1. HB Furnishers, an operator of multiple stores, had a choice of local suppliers but decided to use Lee Furn Manufacturers from
China.
(a) State three processes a business should follow when choosing a supplier.
……………………………………………………………………………………………………….
1………………………………………………………………………………………………………
2………………………………………………………………………………………………………
3………………………………………………………………………………………………….......
[3]
(b)There has been an increase in the value of the Pula the local currency against other currencies. Discuss whether or not HB
Furnishers should continue to buy from Lee Furn Manufacturers from China.
………………………………………………………………………………………………………………………………………………
………………………………………………………………………………………………………………………………………………
………………………………………………………………………………………………………………………………………………
………………………………………………………………………………………………………………………………………………
………………………………………………………………………………………………………………………………………………
………………………………………………………………………………………………………………………………………………
………………………………………………………………………………………………………………………………………………
………………………………………………………………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………..[6]
(c ) The following is an extract of an order placed by HB Furnishers of ABC Mall in Kanye to Lee Furn Manufacturers of Beijing,
China.
10 Mahogany Bedroom suites at P5000.00each
3 Double door refrigerator at P 3000.00 each
Using the following form below, prepare an invoice that will be sent by Lee Furn Manufacturers to HB Furnishers.
QUALITY
DISCRIPTION OF THE PRODUCT
……………….
………………………………………..
………………. ………………………………………..
………………. ………………………………………..
………………. ………………………………………..
UNIT PRICE
TOTAL
(P)
AMOUNT
……………….
……………….
……………….
……………….
……………….
……………….
……………….
……………….
(P)
TOTAL
24
E &OE
[
(d) Fig. 1 is displayed in the shop windows of all of HB’s chain stores.
HB FURNISHERS
YOUR FRIENDLY MUTIPLE STORE
Fig. 1.
Use the information given in Fig.1 to help you answer the following questions.
(i)What is meant by Hire purchase?
………………………………………………………………………………………………………………………………………………
………………………………………………………………………………………………………………………………………………
…...............................................................................................................................................................................................................[2]
(ii)During the weekend, a customer took advantage of the offer and bought a bedroom suite priced at P9000.00 on hire purchase.
How much will she pay as a monthly installment? Show your working.
………………………………………………………………………………………………………………………………………………
………………………………………………………………………………………………………………………………………………
………………………………………………………………………………………………………………………………………….[2]
(iii)Customers of HB Furnishers have the option to buy on cash or use hire purchase.
Which method do you recommend to the customer? Give two reasons for your recommendation.
1……………………………………………………………………………………………………………………………………………
………………………………………………………………………………………………………………………………………………
………………………………………………………………………………………………………………………………………………
25
………………………………………………………………………………………………………………………………………………
………………………………………………………………………………………………………………………………………………
………………………………………………………………………………………………………………………………………………
2……………………………………………………………………………………………………………………………………………
………………………………………………………………………………………………………………………………………………
………………………………………………………………………………………………………………………………………………
………………………………………………………………………………………………………………………………………………
………………………………………………………………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………..[6]
(e)State two benefits of operating multiple stores.
1……………………………………………………………………………………………………………….……………………………
……………………………………………………………………………………………………………………………………………..
2……………………………………………………………………………………………………………….……………………………
……………………………………………………………………………….......................................................................................... [2]
[Total 26]
2. BG (Pty) Ltd is a private limited company that processes mophane worms .Recently it has experienced an increase in demand. The
management is considering converting to a public limited company in order to raise capital for expansion.
(a) (i) What is meant by a private limited company?
………………………………………………………………………………………………………………………………………………
………………………………………………………………………………………………………………………………………………
………………………………………………………………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………..[3]
(ii) Discuss Whether or not BG (Pty) Ltd should convert its business to a public limited company. Give reasons for your
recommendation.
………………………………………………………………………………………………………………………………………………
………………………………………………………………………………………………………………………………………………
………………………………………………………………………………………………………………………………………………
………………………………………………………………………………………………………………………………………………
………………………………………………………………………………………………………………………………………………
……………………………………………………………………………………………………………………………………………..
………………………………………………………………………………………………………………………………………………
………………………………………………………………………………………………………………………………………………
………………………………………………………………………………………………………………………………………………
………………………………………………………………………………………………………………………………………………
………………………………………………………………………………………………………………………………………………
………………………………………………………………………………………………………………………………………………
………………………………………………………………………………………………………………………………………………
………………………………………………………………………………………………………………………………………………
………………………………………………………………………………………………………………………………………………
………………………………………………………………………………………………………………………………………………
26
………………………………………………………………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………...[9]
(b) It is important for the business to work together with the Botswana Bureau of Standards.
Discuss two services provided by Botswana Bureau of Standards to protect the customers of BG (Pty) Ltd.
Service1……………………………………………………………………………………………………………………………………
………………………………………………………………………………………………………………………………………………
………………………………………………………………………………………………………………………………………………
………………………………………………………………………………………………………………………………………………
………………………………………………………………………………………………………………………………………………
………………………………………………………………………………………………………………………………………………
Service2………………………………………………………………………………………………………..……………………………
………………………………………………………………………………………………………………………………………………
………………………………………………………………………………………………………………………………………………
………………………………………………………………………………………………………………………………………………
………………………………………………………………………………………………………………………………………………
………………………………………………………………………………………………………………………………………..…[6]
(c ) State three ways which branding can assist customers when they go shopping.
Way1………………………………………………………………………………………………………….……………………………
………………………………………………………………………………………………………………………………………………
………………………………………………………………………………………………………………………………………………
Way2………………………………………………………………………………………………………….……………………………
………………………………………………………………………………………………………………………………………………
………………………………………………………………………………………………………………………………………………
Way3………………………………………………………………………………………………………….……………………………
………………………………………………………………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………...[3]
[Total 21]
3.Fig. 2 shows an advertisement for shoes sold by GM Shoes Boutique.
27
Fig. 2
Use Fig.2 to help you answer the following question.
(a) (i) Which type of advertisement is shown in fig.2. Justify your answer.
Type ………………………………………………………………………………………………………………………………………..
Justification
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(ii) Identify and explain the method of appeal that is used in the advertisement.
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(b) Explain two ways in which a commercial bank can assist a business.
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(c) GM Shoe Boutique used a broker to arrange insurance cover for its delivery van. The delivery Van, valued at P 100 000 was
insured for P80 000 against the risk of road accidents. The vehicle was involved in an accident and was partly damaged. The cost of
repairs was P 6000.
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(i) How much will the insurance company pay to GM Shoes Boutique as compensation? Show your working.
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(ii) State and explain an insurance principle that would be applied when making a claim for the damaged vehicle.
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GM Shoes Boutique has a choice of using a broker or going directly to the insurance company.
Discuss GM Shoe Boutique’s choice of using a broker instead of going directly to the insurance company.
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(d) State one insurance risk, other than motor vehicle accident, that could be insured against by a business.
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4. Tsotlhe Supermarkets has several stores across Botswana. It owns a warehouse and a fleet of trucks. It relies on Botswana
Telecommunications in communicating with its target market. Botswana is served with a good system of rail transport.
(a) (i) What is meant by communication?
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(ii) Assess the importance of effective communication to Tsotlhe Supermarkets.
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(b) Tsotlhe Supermarkets has been advised to use two modes of transport to deliver its goods to its branches.
1 Road
2 Rail
Which mode would you recommend to Tsotlhe Supermarkets to use?
Discuss three reasons that support your recommendation.
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2019
1. Botswana engages in international trade to obtain goods and services she cannot produce to satisfy the needs
and wants of citizens. Botswana specializes in the production of beef.
(a) State one difference between needs and wants.
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(b) Explain two reasons, other than to obtain goods and services why Botswana should take park in
international trade.
1…………………………………………………………………………………………………………………………………………….
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(c ) To engage in international trade successfully Botswana needs the following commercial services.
• Warehousing
• Insurance
Explain two reasons for the importance of each to Botswana when exporting beef.
Warehousing
Reason1……………………………………………………………………………………………………………..
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Reason2……………………………………………………………………………………………………………..
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Insurance
Reason1…………………………………………………………………………………………………………….
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(d) Discuss whether or not specialisation in beef production would help Botswana to engage in international
trade.
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2. PM Ltd a multinational company, sells petroleum products (such as petrol and paraffin) throughout Southern Africa.
(a) With examples explain what is meant by a multinational company.
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(b) State two benefits to PM Ltd of being a multinational company.
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(c) Discuss two ways in which Botswana would benefit from having PM Ltd operating in the country.
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(d) PM Ltd is facing working capital problems, but has a lot of account receivables. A consultant advised PM Ltd to obtain an
overdraft or factor its debts to solve the problems.
Discuss both methods of overdraft and factoring. Which would you recommend?
Give three reasons for your recommendation.
Discussion of options………………………………………………………………………………………………………………………
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Reason1……………………………………………………………………………………………………….……………………………
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3. Fig.1 shows an advertisement for machines and equipment.
LAS WHOLESALERS
The largest Cash and Carry Wholesalers in the city
Operated on self-service, cash only
Prices reduced on selected items:
Microwave, hose pipe, refrigerators, electric and gas stoves.
All are welcome, no delivery.
Hurry while inventory last.
Visit our website (internet) for full details:
www. LAS Wholesalers.com
Fig.1
Use the information in Fig.1 to help you answer the following questions.
(a) State three services offered by LAS Cash and Carry Wholesalers.
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(b) Explain two reasons why LAS Cash and Carry Wholesale decided to reduce prices on selected household machines and
equipment.
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(c) Explain two reasons why LAS Wholesalers might survive despite the competition form large scale supermarkets.
1……………………………………………………………………………………………………………………………………………
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(d) Electronic communication has become very important in a wholesale business.
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(e) Discuss two reasons why the management of LAS Cash and Carry Wholesalers should consider the importance of consumer
protection in relation to its business.
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4. XYZ Airlines was a public corporation which has been sold to private individuals. It was registered as XYZ (Pty) Ltd. The buyers
are considering listing the company on the stock market as a public limited company.
a)
State three features of a public corporation.
1……………………………………………………………………………………………………………….……………………………
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b) Explain three functions of the stock exchange market.
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1……………………………………………………………………………………………………………………………………………
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c) Discuss whether or not the buyers of XYZ (Pty) Ltd should convert the business into a public limited company.
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d) Fig.2 is an advertisement for selling shares posted in a financial magazine.
ADF MERCHANT BANK LIMITED
SALE OF SHARES!!!!
New ordinary shares in a prestigious company
50 000 000 ordinary shares of P1 per share at DDF Merchant Bank for XYZ Ltd.
XYZ Ltd, a promising company has just been formed
Free investment advice to our clients
Buying and holding ordinary shares to own part of XYZ Ltd.
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The lowest prices for investment
Market price of shares P5 per share
We are the managers of your portfolio
BECOME A SHAREHOLDER!!!!!!!!
Use the information in fig.2 to help you answer the following questions (i), (ii) and (iii).
(i) Identify two examples of persuasive advertising given in fig.2
1……………………………………………………………………………………………………………………………………………
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ii) Explain two functions of a merchant bank, given in fig 2.
1……………………………………………………………………………………………………………………………………………
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iii) Calculate the amount paid by an investor who bought 10 000 ordinary shares at a market price of P5 per share. Show your
workings.
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e) Explain three reasons why ADF Merchant Bank decided to use the financial magazine to advertise the new ordinary shares for
XYZ Ltd.
Reason 1 ……………………………………………………………………………………………………………………………………
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Reason 2 ……………………………………………………………………………………………………………………………………
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