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Laerskool Van Dyk Primary

EMS - Gr 7
.e EMls:700160994
rime: 90 minutes
Examinator: Mrs. c. Kruge, M
Moderator : Mrs. E. Erwee
Date: November 2020 Marks: 100
Term 4 I

Name and Surname: Gr.7

MARK
H.O.O. INTERSEN PHASE
100 XOOERATED
o-29
1

2 30-39
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3 40-49 '=Fnrce: fffnruee
4 50-59
5 60-69
6 70-79
7 80 - 100

Topics and Aims:

1. Financial Literacy
2. Entrepreneurship
.1. Ilt.!_l::::r..__
SECTION A SECTION B

_SIqt_Q'{e_s_tiqns Economy Question 4 20 marks

Questionl 10 marks Entrepreneurs Question 5 20 marks
Question2 5 marks
Question 3 5 marks
Total Section A: 20 marks Total Section B: 40 marks

SECTION C:
Financial literacy Question6 10 marks
Financial literacy Question 7 20 marks
Financial literacy Question 8 10 marks
Total Section C 40 marks TOTAL 100 marks
 . Answer ALL the questions.
. Questions 4,5,7and 8 must be completed on the answer sheet.
. Write your name on the answer sheet.
. This question paper consists out of 8 pages.

Section A
Question 1:
1. Choose the correct answer and write only the letter on the line provided
1 .1 . Monev that you will have to borrow from somebodv
a) Own Capital
b) Physical Capital
c) Human Capital
d) Borrowed Capital

1.2. Choose the best description for an informal business

a) lt is a business that operates from a building registered in the busrness ^a-.

b) The business is legally registered and pay tax.
c) The Business must pay minimum wages to all the employees
d) The business is easy to start and there is no legal requirements

1.3. The correct accountinq equation is:

a) Assets =Owner's Equity - Liabilities
b) Assets = Owner's Equity + Liabilities
c) Owner's Equity = Assets - Liabilities
d) Owner's Equity = Assets + Liabilities

1.4. Choose the answer that does NOT fit: SMART qoals include the followinq:
a) Specific
b) Modern
c) Realistic
d) Timely
 1 5 Choose the item that will not be recorded as an excs^s:
a) Salaries and wages
b) Electricity
c) Trading License
d) Commission received
TOTAL Question 1: (5 x2=10)

Question 2:
2. Fit the description in column B with the word in column A, write only the letter next to the
number, for example 2.6 - F

COLUMN A COLUMN B
2.1 Accounting A) A plan for the estimated income and expenses of a business
2.2 Advertising B) The owner's investment in the business plus income less
expenses
2.3 Stokvel C) A system of collecting documents and recording transactions
of the bank accounts of the business in various books
2.4 Budget D) A group of people that come together and deposit a certain
amount of money every month and then take turns in taking the
whole amount every month.
2.5 Owner's equity E) Any form of presentation of your product or idea with the aim
of getting customers interested in buying your product

Answers.

21 2.2 - 23-
2.4 - 2.5 -

TOTAL Question 2: (5 x1=5)

Question 3:

3 lnoicate if the followino statements are TRUE of FALSE. Write onlv the words TRUE or
FALSE on the answer sheet:

3 i Current assets has long term value and can be used to generate
rncome for the business.
3.2 Workers receive wages every month for the work they have done.
3.3. Liabilities is any money that is owed to people outside the
business and it is good for the business.
3.4. Goals give a business a sense of direction and purpose.
3.5. Entrepreneurs are people that want to start their own business
but are afraid to take risks.

TOTAL Question 3: (5 x1=5)

TOTAL SECTION A: 20

SECTION B
Question 4:

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4. Study the illustration at the bottom of paqe 4 and answer the questions that follow:

4 '1. All the steps that any product must follow from the beginning until it is ready for

consumption or use is called the... . . .. " process (1)

4.2.Use the block below and clearly explain the difference between needs and wants:
(4)
NEEDS WANTS

Ulderlurelhe_qaffe c Lenslver :

4.3.All the materials and factors of production that are used to make a good or service is
known as ( inputs / outputs ) (1)

4.4. Classify the followinq statements in qoods OR services, (5)

4.4.1. Mr. Mosige visit the doctor for a routine checkup.
4.4 2. Sharon buys flowers for her mother in the gift shop.
4.4.3. Mr. Makhado takes his car to the garage to fix the fan belt.
4.4.4. Bennie has a luxury 4x4 vehicle.
4.4.5.The groceries Jenny buys weekly in the supermarket.

4.5. Name the four factors of oroduction. (4)

4.6. Discuss the disadvantaqes of the use of technoloqv in the production process. (4)

Underline the correct answer:

4.7. Resources that can never be renewed and must be used cautiously is known as
( renewable /non-renewable ) resources. (1)

TOTAL Question 4 (2Ol

Question 5:

5 Read the following case study and complete the questions that follow:

Rina is the owner of a Hairsalon in a very big city. She is a talented hairdresser
and has a lot of regular clients. She struggles a bit with back problems and to work
foi 8 hours a day is very difficult. Some of her employees resigned due to the fear
of COVID 19 and she is short of employees.

She wants to expand her business, because she have a lot of extra space. She
also considering to start a nail salon in part of the building. She needs to apply for
a loan at the local bank to do the expansion. The outbreak of COVID 19 affected
her business badly and she was forced to close during the lockdown period.

There is also another hair and nail salon down the street that offers a free head
massage with every appointment. She decided to advertise her business to get
more clients but are unsure of how to design any advertisement.

5.1. Use the table on the next paqe and do a SWOT analysis for the business (8)
6
6 SWOT ANALYSIS

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6.1 . Discuss any three thinqs anv entrepreneur can do to achieve his/her ooals (3)

6.2. The AIDA principle must be applied in anv advertisement that a business desiqn.
Explain the AIDA principal by_nemtng the four elements (4)
6 SWOT ANALYSIS
Weafnesses

6.1 Discuss anv three thinqs any entrepreneur can do to achieve his/her qoals (3)

6.2. The AIDA principle must be applied in anv advertisement that a business desiqn.
Explain the AIDA principal hyxexnug the four elements (4)
6 3 Name any two advantages for a business if they use recvcled material. (2)

6.4. RecOmmbnd anv three strateqies that Rina can follow to ensure her business will be
safe durinq the COVID 19 crisis. (3)

TOTAL Question 5 (20)

TOTAL SECTIONB: 40

SECTIONC
Question 6:
6.Choose the correct accountinq word from the block to fit the description

Raw material Bank account Stationary Overdraft Maintenance

Trading stock Liabilities Vehicles Capital Petty Cash

6.1 . Any company cars, trucks, tractors etc. that a business use for transport. (1)

6.2. Everything a business use to make their products or deliver the service. (1)

6.3. The money the owner deposit to start the business. (1)
6.4. The things a business buy and sell at a profit. (1)

6 5 The place ,,1'here a tne money are deposited. (1)

6.6. A small amount of notes and coins that the business keep to buy small purchases. ('1)

6.7. All the debts that the business has to pay. (1)

6.8. A loan from the bank where the bank allows you to draw more money than you have in
your account. (1)

6.9. All the paper and writing and printing material. (1)

6.10. The account a business use for all the repairs done. (1)

TOTAL Question 6 (10)

QuestionT:
7. Read the followinq scenario and answer the question:

"Sara's Glamouf is a beauty salon. Sara is a very good business owner but
she struggles with the accounting of her business. Please help Sara with the
bookkeeping of her business by answering the following questions.

7.1 Use the table below and help Sara to organize all her slips according to income and
expenses. (10)
 Description lncome Expense
7.1.1 The Electricity Bill 1 800
712 Bank charqes oaid 150
713 The Telephone account 1 000

714 lnterest received on bank account 250

715 lncome received for beauty treatments for 7800
the month
7.1.6 Maintenance 1 500
7 .1.7 Donation from family member 1 000

7.1.8 Pavino the FuelAccount 800

7 1.9 lnterest on investment 200
7110 Payment on the Bond account 3000

(10)

7.2 Calculate whether Sara's Glamour made a profit or a loss during the month. Use the
figures in the table above. Show how you got to your answer (7)

7 3 Calculate the profit / loss for the business in the table below. (Show your method of
working out your answer.) (3)

Number lncome Expense PROFIT / LOSS

7.3.1 R 280 000 R 200 000

7.3.2 R 560 000 R 560 000

7.s.3 R 300 000 R 300 500

TOTAL Question 7: l20l

10
Question 8:

8 Nico wants to start his own business, but he has to borrow money from the bank to finance
his business. Use the information in the table below to help Nico compile a statement of
net worth:

House 300 000

Vehicle 50 000

Loan to pay another vehicle 30 000

Salary 15 000

Bank overdraft 3 000

Clothing account 2 000

Savings account 5 000

Groceries 15 000

Furniture 8 000

11
STATEMENT OF NET WORTH

ASSETS
House
Vehicle

Furniture

Savings account

INCOME
Salary
EXPENSES

Groceries
LIABILITIES
Clothing account

Bank overdraft

Loan to pay another vehicle

NET WORTH

TOTAL Question 8:(10)

TOTAL SECTIONC:40

GRAND TOTAL (1OO)