Revision Doc Shashe2023

1 |COMMERCE REVISION 2 0 2 3
WABTIC REVISION 2022
BANKING
a) Identify two types of cheques (4)

 Bearer’s cheque- this is the type of cheque where the name of the payee is not
specified and such cheques is paid to whoever presents it to the bank for encashment.
 Order cheque- this is a cheque which instructs the bank (drawee) to pay a specified
payee whose name appears on the face of the cheque.
b) Abel Motors (Pty) Ltd has decided to pay its creditors using cheque the sum of
P1500.00
Evaluate the use of cheque by Abel Motors (Pty) Ltd
 Cheques are safer and convenient (1) as they can be made out of any amount (1)
however cheques are not legal tenders as they can be rejected as a means of payment.
(1)
 Less time is spent counting (1) as the amount is transferred electronically from Abel
Motors (Pty) Ltd without physically counting it (1) however cheques may be value-less if
the drawer has no money in the account. (1)
 Cheques need to be taken and possibly paid into a bank account (1) thereby wasting
time and this can be possible only if the payee has a account (1) however cheques can
be cashed over the counter even if they are crossed through special cleaners. (1)
c) Explain the importance of computers in banking (6)

 Computers can be used to facilitate/ process payments instantly hence saving time for
the drawer
 Computers can be used in transmitting(sending) international transactions in a short
space of time thus reducing delays in receiving payment
 Computers allow the drawer to make payment at any given time of the day thus
allowing convenience to both the drawer and the payee (the parties involved do not
have to wait for the bank to open the next day to process transactions)
 Computers can be used to operate and program stop orders, ATMs and cell phone
banking thus making payments and withdrawals very easy and convenient.
d) Differentiate between loans and overdrafts

 Interest in loans is charged per annum whereas interest in overdrafts is charged on daily
balance remaining
 Loans are a formal ways of borrowing whereas overdraft are an informal way of
borrowing
 Loans are usually long term source whereas overdrafts are a short source of capital
©SHASHE RIVER SCHOOL_ BUSINESS SUBJECTS/COM/2023

e) Discuss how the use of computers in banking can help Orange Farmers in Tuli Block (9)
 Computers can be used to facilitate or process payments/ transactions of orange orders
instantly hence saving time for the drawer and payee however payments can be
delayed when there is low or no network/ internet availability.
 Computers can be used in transmitting international transactions in a short period of
time thus reducing delays in processing orders of oranges however transactions can be
intercepted by hackers
 Computers allow the drawer to make payment at any given time thus allowing
convenience to both the orange farmer and orange buyers however the use of
computers requires a certain level of literacy to operate
 Computers can be used to operate ATMs and cell phone banking as well as to program
stop orders thus making payment and withdrawals easy however power outage may
delay or disrupt transactions
f) What is meant by a standing order?

 A standing order is a bank transaction were the account holder authorizes or instructs
the bank to debit his account with an agreed/ fixed amount (1) at regular or monthly
interval
g) Explain two ways in which Mr Carlos could use the bank statement.
 To view the latest balance on his account (1) to see if he is in credit/debit
 He would view all the transactions that have taken place over the month(1) to ensure
that all are authorized and if there are any errors made/ show report to the bank (1)
 He would reconcile the balance shown with his records (1) so that he knows any
transactions that have not yet been entered on his bank accounts (1)
 It would be used to apply for a bank loan (1) showing his ability to pay (1)
State two feature of a deposit account
 Interest is paid by the bank
 Suitable for keeping surplus cash on short term basis
 No cheque books are issued
 No ledger fees are payable
 A notice of withdrawal is required by the bank prior to withdrawal
 Minimum balance must be maintained
h) Which method would be most suitable to Mr Carlos to make and receive the following
payments? Give a reason for each of your choices.
Paying Workers.
 Bank Giro
Reasons:
 Safer means of paying workers as large sums do not have to be withdrawn in cash
 Employers transfer employees salaries from their own bank account in to employees
bank account
 Allows payment to be made at any branch of any bank to any other bank in the country

 It saves employers time of signing many cheques
Paying Water Bills

 Direct Debits
Reasons:
 Suitable for paying variable amounts at variable times
 Mr Carlos do not have to remember due dates for payments
 Enables transactions to be computerized
 Ensures payment is made on time
i) Discuss whether or not Mr Carlos should also use the online banking services. Give
reasons for your answer.
YES
 Convenient (1) can make transactions at the comfort of their business (1) however it is
prone to fraud (1)
 Available 24 hours (1) transactions will be made at any time(1) however there may be
lack of network or power failure (1)
 Fast and efficient (1) since you do not have to go to the bank to transact (1) however
there is need to memorize the Personal Identification Number (PIN) (1)
 There is a record of the transaction (1) leading to reduced paperwork (1) there is need
to subscribe to the internet to access the record (1)
NO
 Threat of fraud (1) may lose his money(1) however he can quickly make payments to
suppliers (1)
 If there is no network/ power failure there is no service(1) leading to delay in paying
suppliers (1) however it makes it easy to pay the suppliers within a short period of time
(1)
 Cannot be used for services such as negotiations of loans (1) so Mr Carlos needs to visit
the bank (1) however he can view a bank statement in the comfort of his business (1)
COMMUNICATION
a) Explain the importance of fast and accurate transmission of information to Shashe

River School (6)
o Internal communication enables the school head (manager) to give instructions to
teachers (employees) thus enabling the school (business) to run smoothly
o The school head will be able to place orders of stationary (books ) and food for students
well on time thus cutting delays in waiting for orders to be processed on time
o External communication enables SRS school head to discuss problems and solutions of
the school thus improving the relationship between the school and its various
stakeholders

b) Explain three factors business should consider when choosing a method of

communications
 Speed of transmission/ urgency of message(1) if messages are needed urgently then
fast methods like email should be used (1)
 Cost of the medium (1) cheaper methods should be chosen in order to cut operational
costs(1)
 Availability of the medium (1) efficient and reliable one (1)
 Supporting technology(1) both the sender and receiver must have supporting
technological communication tool to make communication through a particular
medium (1)
 Confidentiality/ secrecy/ safety (1) if message to be communicated is confidential,
means that can maintain secrecy should be adopted(1)
 Record (1) if record of the communication is important the it should be written, forms
like letter, memo, email should be chosen.
 Length of the message
c) Identify any three services offered by Botswana Post to its clients (6)
o First class post- this is a fast way of sending letters although it is slightly expensive. Mail
is sorted and sent out quickly and delivered on the next working day
o Express Mail- this service is available for letters and parcels up to a certain weight and
size. Express mail is also given a priority hence making its delivery very urgent/ quickly.
The word EXPRESS has to be written on the letter/mail
o Parcel post- this is a service which is meant to courier heavier goods. Goods are
weighed and charged per kilogram. The heavier the parcel the more expensive it would
be.
c) The school usually places its orders for bread using email. Assess the effectiveness of
this method of communication to the school?
 Electronic mail is faster (1) as it allows the school to send the orders of bread
instantaneously within the shortest possible time (1) however e-mail can be slower if
the internet connection is low. (1)
 It is more flexible (1) as it can send the order of bread in any form for example audio,
spread-sheet, graphics etc (1) however some files may be too large and may take long
to upload. (1)
 It is cheaper and the cost is the same whether you are sending the message anywhere
across the globe (1). The school can send bread orders to any location in Botswana (1)
however e-mail messages may bounce without the sender knowing. (1)

(b) Assess the use of landline telephone to TK General Wholesalers as a method of

communication with Gosiame Bakery.
o Cheap in terms of handsets/ installation (1) low operational costs (1) however there is
no record of communication (1)
o communication is fast and instant (1) as it allows interchange of ideas in a short period
of time (1) thus enabling the business to meet the customers orders (1)
o instant feedback (1) so orders and queries will be attend well on time (1) hence high
productivity or customer loyalty(1)
o no record of communication/ no evidence of information (1) may not supply the right
quantity and quality of bread at the appropriate time (1) hence leading to customer
dissatisfaction (1)
o Communication is very quick and efficient (1) as the recipient responds instantly to
place an order for bread (1) however the sender cannot see the facial gestures of the
receiver (1)
o The telephone network is always stable (1) thus enabling calls and enquiries of bread
and scones to be made at any given time (1) however it is expensive to install telephone
services (1)
WAREHOUSING
a) Identify any three documents used in warehousing (6)

o Bill of sight _ this is a form from customs authority giving an importer permission to
examine goods whilst they are in the bonded warehouse
o Warehouse warrant_ it is used to claim goods from the bonded warehouse after
payment of import duties
o Goods inward declaration_ this document shows details of goods delivered to the
warehouse (quantity, description, date, supplier etc)
b) Explain the importance of bonded warehouse to Sahara Computers (Pty) Ltd (6)
o Bonded warehouse is essential on imported dutiable goods because it allows the
importer (Sahara Computers (Pty) Ltd) to package, brand and price its computers and
accessories whilst they are in bond.
o Bonded warehouses allow Sahara Computers to look for buyers of their computers and
accessories whilst the computers are in bond thus cutting storage costs for Sahara
Computers
o Bonded warehouses may be essential when Sahara Computers is involved in entrepot
trade it would cut down storage and handling costs

c) Assess the benefits of warehousing to Sechaba Juice Makers (9)

o Warehousing provides storage of raw materials such mangoes, berries etc upon arrival
from suppliers thus providing safe storage to allow sorting and grading to take place
however some fruits may go bad before they are processed in to juice
o Warehousing helps to stabilize prices of juices by releasing juices upon demand to
avoid fluctuation of juice prices however warehouses may be expensive when rented
out which may be costly to the business
o Warehousing provide adequate space for retailers to inspect juices before buying them
thus enabling retailers to choose better quality juices however if there is a decline in
demand for juices whilst they are in the warehouse, Sechaba Juice Makers are going to
suffer a huge loss as juices may expire before being bought
o Warehousing enables Sechaba Juice Makers to prepare juices for sale by branding, and
bulk packaging them however juices may need to be sent to retailers or buyers on time
before expiry since they are perishable
TRANSPORT
a) Identify any three modes of transport (3)

o Land transport ( rail and road)
o Water transport ( inland water ways and sea transport)
o Pipelines
o Air transport
b) Explain any three factors affecting the choice of the mode of transport (6)
o Cost- the cost of the mode of transport can be determined by the following factors:
distance and volume of goods to be transported
o Urgency of goods- if goods are required urgently, a faster mode of transport will be
required such as air transport or road in other instances. For goods which are not
required urgently a regular mode of transport may be used
o Size and weight of goods_ some goods are bulky such as machinery, heavy equipment
etc they may need to be carried by trains and large trucks
o Distance over which goods may be carried_ for short distances road transport may be
used since it is quicker over short distances and may even offer door to door service
o Nature of goods_ perishable goods may need to be transported in refrigerated trucks
whereas commodities such as bricks, cement etc trains and haulage trucks may be used

c) Evaluate the use of AIR TRANSPORT in transporting diamonds from Gaborone to

London. (9)
o It is very fast and ideal for sending precious/ valuable cargo thus offering better security
for diamonds however air transport is very expensive
o Both local and overseas transmission of diamonds can be done in the shortest possible
time thus cutting down waiting periods for diamonds to be delivered to the
manufacturers of diamond rings however air transport carries restricted volumes of
goods
o There is a lower risk of damage and theft to diamonds when goods are in transit thus
giving the importer/ exporter assurance about the arrival of diamonds however air
transport is so sensitive to bad weather conditions
d) Discuss whether or not Eddy should also use air transport for his pottery business.
Give reasons for your answer.
FOR
 It is faster over longer distances(1) air is not affected by traffic congestion as it only
stops at the airport or strip (1) however it has limited coverage of the country
 It is more reliable(1)it ensures that the pottery gets to their destination on time(1)
however it is not flexible so you cannot deliver pottery as and when you want to deliver
it(1)
 Air transport is economical in the use of labour (1) as loading equipment and
mechanisms are used (1) however airports are usually out of towns so it relies on other
forms of transport(1)
 Lower insurance costs (1) due to short transit time (1)
 Suitable to transport fragile or sensitive items/safety/security (1) which reduces
damage(1)
AGAINST
 Air transport cannot deliver door to door(1) so road transport will be needed which
means extra costs(1) however it is more economical in the use of fuel (1)
 It has limited coverage of the country(1) due to a smaller number of airports(1)
however it can take a larger quantity of pottery in one trip(1)
 It is not flexible(1) it follows a fixed flight schedule so it cannot deliver pottery as and
when necessary (1) however it is more reliable as it follows a fixed schedule(1)

e) Discuss the effectiveness of the ROAD TRANSPORT system in Botswana in helping

Bokamoso Wholesalers (Pty) Ltd?
 It offers door to door services to almost all areas of countries (1). Road transport will be
convenient to Bokamoso Wholesalers to carry stock of food and toiletries because it is
flexible as it can go wherever is necessary (1) however other areas have rough terrain
that can limit movement. (1)
 Road transport does not follow a fixed time table (1) , this makes it easy for Bokamoso
Wholesalers (Pty) to receive its orders of food items and toiletries of the day (1)
however other routes may be bumpy thus damaging the inventory. (1)
 Bokamoso Wholesalers (Pty) Ltd can buy its own fleet of trucks and small vehicles (1) to
enable convenient in carrying inventory like toiletry, food stuff, sugar etc (1) however it
can be expensive to manage own fleet of vehicles. (1)
f) Evaluate the use of RAIL TRANSPORT in carrying coal from Morupule Colliery to
Francistown (9)
o Rail transport is suitable for carrying heavy bulky cargo such as coal (1) thus allowing it
to carry a larger load per trip (1) however rail transport is not flexible (1)
o Rail transport is more reliable (1) as it ensures that coal reaches its destination on time
all the time (1) however the overhead costs of rail transport are very high (1)
o Rail transport is less likely to be disrupted by bad weather than road transport (1) hence
making it more efficient in timely deliveries (1) however rail transport is slower than
road transport (1)
g) Identify new developments in rail transport

o Introduction of computers to monitor operations of trains to improve efficiency
o The use of speed link trains (bullet trains)
o The introduction of electric trains to reduce pollution caused by combustion of diesel
o Introduction of more comfortable passenger trains
h) Identify any new developments in road transport (3)

o Introduction of container carrying trucks with loading and offloading mechanisms
o Introductions of newer fuels with less carbons (unleaded)
o Development of motorways and wider roads to accommodate high density traffic
i) Identify three new trends/ developments in air transport (3)

o Construction of large airports to accommodate larger aircrafts
o Building of larger aircrafts to accommodate more passengers and more cargo
o Improved design of the fuselage and engine

j) Evaluate the effects of having OWN FLEET on Bokamoso Wholesalers (Pty) Ltd
o Less documentation needed (1) therefore less paperwork which saves costs (1)
However it is expensive to operate own fleet as vehicles have to be
maintained/fuelled/insured /driver paid(1)
o Business can respond quickly to customers orders (1) thus meeting and satisfying
customers needs (1) however delays may be caused by traffic congestion/ disrupted by
bad weather (1)
o Deliveries can be more flexible with respect to time and routes (1) thus help reduce cost
(1) however vehicles often return empty after delivery which makes it uneconomical.
(1)
o Sides of the vehicles can be used for advertising (1) thus creating awareness / attracting
customers/ saving costs for advertising on mass media (1) however advert coverage is
limited
CONTAINERISATION
o The use of large metal containers to carry goods. They are large and standardized
o They can easily be carried by trucks, trains and cargo ships
o They are loaded and unloaded by specially designed handling equipment such as cranes
k) Assess the use of containers in carrying building material from China to Botswana (9)
o Containers are easily handled by cranes (1) thus reducing labour requirements and costs
(1) however not all trucks and ships are standardised to carry containers (1)
o When using containers, less warehousing is needed since containers can be locked (1)
thus reducing storage costs of tiles, doors etc (1) however it requires a large capital
investors (1)
o Packaging and insurance are reduced (1) as containers improve the safety of goods (1)
however other bulky goods such as timber and motor vehicles are unsuitable for
transportation in containers (1)
ADVERTISING
a) Explain the importance of advertising to Coca Cola Company (6)

o Advertising can be vital in introducing a new brand of soft drink thus making it known to
customers through various media
o Coca Cola may advertise to project a favourable image to the public about the quality of
soft drink hence creating or building brand loyalty
o Coca Cola may also advertise to fill in vacancies of cleaners and machine operators to
ensure continuous production

b) Identify factors affecting the choice of the advertising media (6)

o The target group for the product_ every target market can be reached to with a specific
medium well suited for them
o The area to be covered by the advertisement_ if the advertiser requires national
coverage, TV or Radio may be best suited to advertise the product
o The nature of the product_ goods such as jewellery can be best advertised using
magazines because they have glossy/ shiny pages
o The cost of the advertising media_ for the products to reach the audience within a short
period of time you have to use media with the widest coverage such as TV. It provides
widest coverage and motion picture making advertising realistic and persuasive
c) Identify 3 ways in which advertising may be regulated (6)

o By legislation_ these are laws passed through parliament making it illegal to do false
advertising
o Self regulation_ this is where advertisers themselves coming up with a set of standards
to be followed by all members
o By media_ this is when the media houses reject certain adverts from appearing in their
media
d) Pick n Pay hypermarket intends to advertise products for the upcoming festive season.
It has engaged DD Advertising Agency (Pty) Ltd to handle all its advertising activities.
i) Explain three functions of DD Advertising Agency (Pty) Ltd in handling Pick N Pay
hypermarket’s advertising activities
o Designing and production of adverts_ DD Advertising Agency will be designing adverts
through graphic design, photography, filming etc coming up with various concepts
o Media planning and booking_ after designing adverts, DD Advertising Agency (Pty) Ltd
will then book slots on TV/ Radio or newspapers so that adverts can appear and be seen
by the target audience
o Client servicing_ when designing advertisements for Pick N Pay, DD Advertising Agency
(Pty) Ltd will have the responsibility of keeping in touch with the client to ensure that
the advert meet the requirements of Pick N Pay
e) 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?
 The advertising agent will conduct a market research (1) to survey the size of the market
the quality of cell phones wanted and target population for cell phones. (1) however the
market research may not cover the maximum required area(1)

 The advertising agent will design and produce adverts according to the request of the
client (1). The advertising agent are skilled and well experienced in designing adverts of
cell phones through bill-boards, film etc. (1) however the designing of advertisements of
cell phones may be expensive and costly to Cell World (Pty) (1)
 The advertising agent can also be responsible for media planning and booking. (1) The
agent will advertise cell world (Pty) Ltd on the suitable media for advertising cell phones,
headset and screen protectors (1) however the agent may not be given a favourable time
slot (1)
f) Evaluate the use of TELEVISION in advertising the newly produced 212 perfume (9)
o it combines both audio, visual and motion picture (1) thus making the perfume more
appealing to the customers (1) however consumers may not take TV commercials /
adverts very serious but rather as entertainment (1)
o TV advertising has a wider coverage (1) thus making it possible for many people to see
the perfume (1) however TV advertising is very expensive (1)
o TV advertising can be shown at the right time for the right audience (1) thus making the
perfume to be seen by the target audience (1) however TV advertising is short lived and
may not be seen by many consumers (1)
g) Evaluate the use of MAGAZINES in advertising women’s clothes

 Dresses, skirts and blouses are going to be illustrated in a colourful way and on good
quality paper(1) hence attracting more customers to buy their dresses (1) however
magazines advertising reaches fewer people.(1)
 They are cheaper than advertising on television(1) Lorato and her uncle will spend less
money on advertising their dresses, skirts and blouses(1) however customers do not get
to see the actual product before buying, hence they might be disappointed/dissatisfied
when they see the actual products.(1)
h) Explain two advantages and one disadvantage of advertising on BILLBOARDS to Aisha

PLC
ADVANTAGES
 Low cost medium(1) as Aisha PLC does not have to spend much time and money to
reach the car buyers
 High repeat exposure(1) help maintain awareness about cars/ build brand
awareness(1)
 They are normally placed in strategic places such as roads junctions and bus ranks(1)
can be effective in sending the intended message about cars(1)
 Large in size and colourful(1) so it helps persuade customers to buy cars
 Long life adverts of the cars (1) making it cheaper to maintain(1)

DISADVANTAGES
 Open to vandalism/ bad weather conditions(1) Aisha PLC losing money on spent on
designing and erecting billboards and car parts
 Limited information (1) so car potential buyers may not get the message clearly as it is
brief
 May not be visible to some customers (1) potential customers may miss the advert about
cars
i) Discuss three factors that would affect cell world (Pty) Ltd’s choice of advertising
medium?
 Cell world (Pty) Ltd would consider the target group for its cell phones before choosing a
medium (1) it may choose television as it can cover a wider audience (1) however
television is very expensive. (1)
 Cell World (Pty) Ltd would also consider the cost of the advertising media (1), media such
as posters and pamphlets are very cheap (1) however Posters and pamphlets do not have
a wide coverage (1)
 Cell World (Pty) Ltd should also consider the nature of the product (1); cell World (Pty)
Ltd is advertising cell phones. Cell World can use magazines or pamphlets since they are
glossy and make the cell phones appear very attractive (1) however magazines have
limited readership (1)
BUSINESS UNITS
Leroy and Barnes started an Internet Café in Gaborone as partners. The business is
expanding and they are considering converting it into a public limited company and listing
at the Stock Exchange.
(a) (i) What is meant by PARTNERSHIP business? [2]

An association of two or more persons to carry on a business enterprise
(1) in which the profits and losses are shared proportionally. (1)
(ii) Explain two reasons why Leroy and Barnes should continue with the partnership
business.
 Collaboration (1) in order to allow them to draw on their resources and expertise as co-
partners, in order to share responsibilities and lighten the workload (1)
 Tax purposes (1) since the profits of partners are taxed once at the personal level of
partners not as company (1)
 Simple operating formation structure (1) which does not require many forms to be filed
or formal agreements to be drafted and does not require annual filing fees (1)
 Flexibility in management (1) owners are usually the managers and decisions can be
made quickly without a lot of bureaucracy (1)

 Easy access to capital (1) partners guarantee loans with their personal assets as well as
those of the business (1)
b) Theo has just finished form 5 and he wants to start a SOLE PROPRIETORSHIP business.
(i) Assess his decision of starting a sole proprietorship business (9)

 sole proprietorship is easy to set up, control and manage (1) as it requires a small
amount of capital to set up (1) however it has unlimited liability (1)
 the owner makes independent and quick decisions on how the business should be run
(1) thus making the business to easily adjust to changes in the market(1) however the
business cannot do without the owner
 the owner takes all the profits made by the sole proprietorship(1) and this motivates
the owner to work harder to avoid failure (1) however it is more difficult for the owner
to borrow loans from the bank for expansion due to lack of collateral security
(b) Explain two functions of the STOCK EXCHANGE [4]

 It provides a ready and continuous market for purchase and sale of shares. (1) It
provides ready outlet for buying and selling of listed securities(1)
 Facilitates evaluation of securities. (1) This helps investors to know the true worth of
their holdings at a time. (1)
 It enables comparison of companies in the same industry (1) through stock
Exchange quotation\price list (1)
 Facilitates public borrowing (1) by creating the market for the government to raise
capital for development. (1)
 It serves as economic barometer (1) by indicating the state of health of companies and
the national economy (1)
(c) Leroy and Barnes, operating a partnership, are considering turning their internet café
into PUBLIC LIMITED LIABILITY Company. Discuss whether or not they should do this. Give
three reasons for your recommendation.
Partnership: disadvantages
 decisions may be delayed(1) due to consultation (1) but may yield good results (1)
 lack of capital (1) may limit expansion (1) but saves one from borrowing from other
sources (1)
 Not easy to find suitable partner (1) which may restrict the growth of the business (1)
therefore there won’t have continuity (1)
 No legal existence (1) leading to less documentation (1) and low protection (1)
 membership is limited to 20 (1)which restricts growth/less capital is raised (1) but it is
kept in the family (1)

Public limited liability

 limited liability (1) personal assets are secured(1) therefore safety to the shareholders(1)
 it has separate legal entity (1) as it does not affect the owner(1) since the owner and the
business are recognized separately
 its shares are freely transferable on stock exchange (1) may be able to raise more capital
(1) but may lose ownership and control of the business (1)
 has assured continuity (1) because it is a going concern (1) but can change hands easily(1)
 easy to raise more capital through the sale of shares and debenture (1) can be owned by
anybody anytime (1) but may lead to loss of identity (1)
 can afford to employ specialists (1) leading to efficiency (1) but may lead to loss of
ownership (1)
 enjoys economies of scale (1) can produce more at less cost (1) but may also attract
competitors (1)
(d) If Leroy and Barnes business were to become a PUBLIC LIMITED COMPANY, State three
ways in which they would be affected by turbulence in the stock market. [9]
 Fall in their share prices (1) which leads to less money being raised (1) hence a
loss to both investors and the company (1)
 Loss of investors’ confidence (1) leading to them selling their shares (1) hence
poor reputation for the company (1)
 Panic selling by investors (1) leading to fall in share price even further (1)thus leading to a
stock market crush
 Improvement in the company which lead to investors being attracted(1) if the
turbulence is a surge of the investment (1) hence more capital being raised (1)
e) Evaluate how important limited liability is to a company and its shareholders
 The shareholder knows in advance the maximum amount he or she can lose in case the
company goes bankrupt(1) hence make informed decisions(1) however the shareholder
who personally guarantees a loan will be personally liable for the debt obligation(1)
 People can invest knowing that their personal properties are safe(1) it therefore
provides security for the investor(1) however it limits creditor confidence to the
company(1)
 The shareholders of the company can make decisions /risks without fear of their personal
properties being seized (1) leading to business growth(1)
 It helps the company to attract more capital(1) people can invest knowing that their
personal assets are safe (1) however shareholders can be negligent in decision making
because of safe investment

MULTINATIONAL COMPANIES
Shoppers Limited is a public limited company selling fast moving consumer goods
(groceries) in Botswana. Currently the owners are thinking of opening branches in
Zambia, Namibia and Zimbabwe thus making it a multinational company.
a) Evaluate the benefits of Shoppers Limited becoming a MULTINATIONAL COMPANY to

the host country (9)
 Shoppers limited will be paying taxes to the government (1) hence improving the
economy of the host country (1) however Shoppers Limited may exploit the undeveloped
country’s economy through monopolistic practices(1)
 Shoppers Limited will bring business knowledge, skills and technology (1) thus improving
the efficiency in buying and selling of rice, samp etc (1) however Shoppers Limited may
prevent the transfer of technology to the host country by ensuring that research facilities
remain in their home country (1)
 Shoppers Limited will create jobs such as accountants, marketing managers etc (1) thus
improving the standard of living of the citizens (1)however Shoppers Limited may bring
its own experts instead of training the locals (1)
 Shoppers Limited will bring vital goods and services such as rice, samp etc to the citizens
(1) thus satisfying their needs and wants (1) however goods and services may be sold at
higher prices due to monopolistic practices. (1)
The government of Botswana is planning to sell Air Botswana to a company called Asia
Airways (Pty) Ltd because it has not generating much profit for quite a long time.
a) Define PRIVATISATION in relation to the case study (2)

 Privatisation means the selling off of a government department/ public corporation to
businesses in the private sector (1) for instance, when the government of Botswana is
selling off Air Botswana to Asia Airways (Pty) Ltd (1)
b) Evaluate the effects of PRIVATISATION of Air Botswana to the economy of Botswana

 Privatisation reduces prices and increases the quality of flight services (1) because the
motive is to make is to make profit and attract more customers (1) however privatisation
would lead to the rich getting richer and poor getting poorer (1) PPN
 Privatisation removes political interference in the sale of flight services and bookings (1)
thus making service delivery very efficient and effective (1) however it can be abused by
corrupt politicians by selling the corporation to themselves (1) PPN
 Privatisation leads to massive job losses to pilots, stewards etc (1) as the new owners
may want to cut down labour costs (1) however privatisation helps to empower citizens
(1) NNP

Matsela Fabrics (Pty) Ltd has been in operation for the past 15 years running successfully,
producing fabrics and different types of clothes. Matsela Fabrics (Pty) Ltd has employed
8 000 people in all its factories. Recently it has been making losses and the owners are
thinking of closing it down. The government of Botswana has signed an agreement to buy
Matsela Fabrics (Pty) Ltd from its owners
a) Define NATIONALISATION in relation to the case study

Nationalisation refers to the purchase of a privately owned business by the government
(1) for instance; the government of Botswana has signed an agreement with the owners
of Matsela Fabrics (Pty) Ltd to buy it from them (1)
b) Discuss the benefits of NATIONALISATION of Matsela Fabrics(Pty) Ltd to the

government of Botswana (9)
 The profits made from the sale of fabrics and jeans will belong to the state (1) thus
helping to fund development projects in the country (1) however there may be
inefficiency due to monopoly power (1)
 It provides secure employment to fashion designers and tailors (1) thus improving their
livelihood through regular salaries (1) however there will be too much political
interference in running Matsela Fabrics (Pty) Ltd as a public corporation (1)
 Matsela Fabrics (Pty) Ltd would enjoy economies of scale when buying fabrics to make
jeans (1) thus cutting down operational costs (1) however the public corporation may
become too large and difficult to manage (1)
In 2015 the government of Botswana converted Botswana Telecommunication

Corporation in to a public limited company thus inviting the public to buy shares in it.
Botswana Telecommunications Corporation Limited later formed BEMOBILE which sells
SIM cards, phones and airtime vouchers to the customers.
a) Define COMMERCIALISATION in relation to the case study (2)

Commercialisation means turning a public corporation in to a profit making business. (1)
E.g. the government converting BTC in to a public limited company which now stands to
compete with other businesses in the private sector (1)

b) Evaluate the effects of COMMERCIALISATION to the economy of Botswana (9)
 There will be improved efficiency in delivery of telecommunication services and sale of

SIM cards and airtime (1) hence leading to cost effectiveness (1) however management
find it difficult to reconcile political interest and economic interest (1) PPN
 Better quality services such as landlines, internet and airtime will be delivered (1) hence
attracting more customers (1) however essential service such as internet may be
expensive (1) PPN
 Technicians and cashiers become more committed and responsible (1) as their livelihood
depends on the profitability of the enterprise (1) however profit motive may lead to
ignoring the welfare of the staff (1) PPN
c) Identify 3 functions of the BOTSWANA STOCK EXCHANGE (6)

 Botswana Stock Exchange provides a market where stocks and shares can be sold (1) thus
making it easy for companies to raise additional capital (1)
 It provides a platform where people with savings can invest (10 and lend to those
companies which need to raise finance (1)
 The BSE establishes a code of conduct which members of the stock exchange must
follow (1) thus protecting its members(1)
d) Explain 3 benefits to companies of selling shares through the stock exchange (6)
 It gives companies the opportunity to grow (1) by raising more capital(1)
 It gives the company access to long term capital in the form of sale of shares(1) thus
reducing debt funding (1)
 It gives companywide media coverage (1) thus attracting potential investors (1)
e) Identify 3 types of SPECULATORS allowed to trade at the stock exchange (6)

 Bulls- these are people who buy shares now with the expectation that their prices will
rise a week or so later and sell them at a profit
 Bears- these are people who sell the shares they are holding with the expectation that
their prices may drop very soon
 Stags- these are people who buy shares of newly listed company hoping that the share
value will rise soon
f) Identify 4 causes of the STOCK MARKET TURBULENCE

 Takeovers of one company by another
 Industrial disputes or settlements (strikes etc)
 Changes in market trends
 Performance of the company

g) Identify any 3 consequences of stock market turbulence (6)

 Loss of investor confidence (1) investors withdraw their capital/ sell away their shares (1)
 Fall in value of shares and income of investors (1) thus leading to huge losses to both
investors and companies (1)
 There would be panic selling of shares (1)hence making the price to fall even further
BUSINESS FINANCE
EVALUATION OF SOURCES OF CAPITAL FOR BUSINESSES
GOVERNMENT
 Low interest rate on the loan (1) government does not offer loans to make profit
(1)however government loans might not be easily available in large amounts (1)
 The loans are easily available in limited amounts only to citizens (1)because of fewer
requirements, (1) this may lead to an increase in the number of applicants leading to
small amount granted (1)
 May offer grace period for the repayment of the loan (1)making it affordable to
everyone (1) therefore may attract those who can’t afford to pay leaving the
Government in debt (1)
 government provide assistance in terms of training and management of the

funds(1)helping in better utilization of funds (1) however it is expensive to train (1)
 the loans are closely monitored (1) therefore denying people privacy (1) hence less
freedom (1)
BANK LOANS
 the loans have long repayment period (1) helps spread payment (1) however there is high
interest (1)
 the banks offer financial advice/strategy to clients (1) leading to the business being
successful (1) however it is costly (1)
 the banks can offer large amounts (1) which may increase liquidity (1) however it
requires collateral security (1)
 High interest rate (1) which might discourage Carrel from borrowing (1) which reduces
the profit (1)
 security/collateral is needed (1) which Carrel might not have since he has not been in
business for a long time (1) hence inability to acquire funds/cash flow problems
 strict terms and conditions/ too many formalities (1) require financial statements
(1)which Carrel may not have (1)

HIRE PURCHASE
 Abel Rental Motors (Pty) Limited will be able to use the vehicles/ trailers/ compacters
while paying for them (1). Abel Rental Motors (Pty) Limited will be able to use part of the
money which it was suppose to pay cash to finance other activities (1) however failure to
pay according to the agreement can lead to repossession of the vehicles/ trailers/
compacters/trucks etc. (1)
 Hire purchase is meant for goods with high resale value such as tipper trucks/
compacters/ vehicles/ trailers (1) so such can be repossessed and sold after repossession
however vehicles/ trailers/ compacters/trucks may be in a bad state upon repossession
thus making it difficult to sell them leading to losses to a business
TRADE CREDIT
 It allows the trader to continue trading despite lack of capital (1) hence improving the
traders working capital (1) however there can be low stock turnover (stock moving at a
slower pace) (1)
 The trader can buy as much as possible (1) hence increasing chances of higher profit (1)
however stock may be obsolete/ expire or go out of fashion before it is sold (1)
DEBENTURES
 It allows the company to acquire as much capital as possible (1) thus allowing the
business possibility of greater expansion (1) however debentures are expensive due to
interest charged (1)
 Debentures have longer repayment duration (1) thus allowing the company to pay
smaller instalments enabling to have sufficient working capital (1) however it requires
collateral security which the company may not have (1)
SALE OF SHARES
 It is a cheap method of raising capital (1) as the business will not be owing any lender (1)
however the process of selling shares may be slow (1)
 Sale of shares is an interest free method (1) as it allows the business to raise large
amounts of capital (1) however allocation of dividends leaves the company with little
profit (1)
d) Describe two SOURCES OF FINANCE for each of the following business organisations.
Pule Tiro Designer and Upholstery (Sole Proprietor)

 Retained profits (1) the profits that were kept in the past years can be used to expand the
business(1)
 Loans from friends and relatives(1) can be returned once the business is up and
running(1)
 Personal saving (1) money is already available(1)

 Selling personal assets(1) no need to repay the money (1)

 Trade credit (1) suppliers can give the sole proprietor credit until and agreed time of
payment (1)
AISHA PLC (public limited company)

 Shares(1) a unit of the company’s capital which does not need to be repaid(1)
 Bank loan (1) formal borrowing from banks with fixed rate of interest and fixed
repayment duration(1)
 Debentures (1) long term loans given to a company by the investing public, fixed rate of
interest, long repayment duration(1)
 Mortgage(1) long term loans given to acquire property with that property attached as
security
b) Explain two reasons why Aisha and her uncle should keep accurate records in their
business. (4)
 To determine the profitability of the business (1) Aisha and her uncle will be able to tell
how much they got from selling their dresses, skirts, and blouses and how much they
spent on running their business which will help them see how much profit they have
made.(1)
 They will be needed by tax inspectors (1) to calculate the amount of tax payable after
selling her dresses, blouses etc.(1)
 They are needed by financial institutions when the business needs to borrow money (1)
to see whether the business will be able to pay back the money or not after selling their
dresses, blouses etc.(1)
 They are needed when the business is sold (1) this will help the new owner to know how
much profit did she get after selling her inventory like dresses, blouses etc (1)
 They are needed when the business is admitting a new partner (1) so that it will be easy
for them to share profits obtained from selling their dresses, blouses, shirts etc(1)
PRODUCTION
STERNS sells diamond jewellery to customers in Francistown.
a) Explain the stages of production which diamonds go through until they are sold to
customers in Francistown (6)
 Primary Stage- (1) diamonds are extracted from nature in raw form through a mining
process and crushed to separate them from rocks (1)
 Secondary stage- (1) diamonds are polished and cut and then used to make diamond
rings and necklaces(1)
 Tertiary stage-(1) diamond rings and necklaces are then distributed to retailers using
various modes of transport (1)

b) Discuss the implications of specialisation in the manufacturing of diamond rings (9)

 Specialisation saves time (1) as diamonds cutters and polishers do not have to move from
one production point to the other (from polishing to cutting) to making diamonds
rings(1) however slow diamond cutters may be unable to keep up with the pace of others
(1)
 Production of diamonds will lead to the use of machinery (1) thus increasing the output
of diamond rings and necklaces produced (1) however greater use of machinery may lead
to unemployment (1)
 Specialisation makes full use of everybody’s ability (1) thus making diamond cutters and
sorters to master their jobs and become more knowledgeable (1) however specialisation
may lead to diamond cutters getting bored of doing the same job daily. (1)
c) Explain the relationship between trade and specialisation (4)
 Specialisation depends on trade (1) and trade depends on specialisation(1) Specialisation

lead to mass production of diamonds rings (1)hence the need to sell the surplus and
generate profit.(1)
 Specialisation leads to interdependency between businesses because no business is self
sufficient, businesses depends on each other for goods and services
d) Discuss any two commercial services and their impact on the sale of diamonds (6)
 Warehousing -diamonds rings and necklaces will be kept safely in the warehouse after
production awaiting distribution to various retailers as well as to protect them from
damage (1) hence stabilizing prices of the diamonds rings (1)
 Banking- Sterns would acquire loans and overdrafts (1) to enhance production of
diamonds rings and necklaces (1) hence generating more sales and profit to pay back the
bank loan and overdraft (1)
e) Identify any two factors of production in the production of diamond rings. (4)
 Land- (1) this is a physical place where diamonds are extracted from underground
(nature) (1)
 Labour- (1) it means the human effort both physical and mental effort exerted during the
production of diamond rings (1)
 Enterprise (1) this is the risk taken by the entrepreneur to start a business which
produces diamonds rings (1)
 Capital- (1) this is the investment in monetary or artificial form that the entrepreneur
makes in the production of diamond rings (1)

f) Explain any three levels of specialisation
 Specialisation at individual level (1) this is when a person focuses on performing a

specific task e.g. diamond sorters focusing on sorting diamonds (1)
 Specialisation by product (1) this is when a firm focuses on producing a certain line of
products e.g. Sterns sells on diamond rings and necklaces (1)
 Specialisation at national level (1) this is whereby a country focuses on producing and
providing a certain product e.g. Botswana specializes in diamond production. (1)
RETAILING
Thabo is thinking of opening a SUPERMARKET at Chadibe.
a) Evaluate Thabo’s decision of opening a SUPERMARKET at Chadibe (9)

 Thabo’s supermarket will cleverly groceries such as washing powders (1) to encourage
impulse buying which may increase sales/ profit(1) however shoplifting may occur(1)
 Thabo’s supermarket will offer service self service thus cutting down labour cost (1)
hence allowing Thabo’s supermarket to have adequate working capital to buy inventory
such as rice, fish etc(1) however there is need for a larger trading space which may
increase rental costs(1)
 Lower running costs enable to offer lower prices (1) thus attracting many customers (1)
however supermarkets require a lot of space thus leading to high rentals(1)
b) Evaluate the decision of forming a RETAIL COOPERATIVE SOCIETY by the residents of

Chadibe (9)
 Members of the society will enjoy buying bread, samp etc at lower prices (1)thus cutting
down costs/ saving (1) however the retail cooperative society may not provide adequate
variety of goods to consumers (1)
 The retail cooperative society sells bread, samp etc to everybody not to members only(1)
thus increasing sales/ profits (1) however retail cooperative society lack qualified
personnel to run the store (1)
 The retail cooperative society enjoys the benefits of bulk buying (economies of scale) (1)
thus leading to selling bread, samp etc to members and general public at a lower price (1)
however the retail cooperative involves too much paper work (1)

c) Discuss the benefits of Thabo’s SUPERMARKET to the residents of Chadibe (9)

 Consumers are exposed to a wide range of goods/brands such as rice, fish, beans etc
(1)thus enjoying the convenience of one stop shopping (1)however goods are pre-
packaged thus preventing inspection of goods before purchase(1)
 Customers serve themselves quickly (1) thus saving time(1) however there is no personal
attention given to customers (1)
 Goods such as fish, bread are neatly displayed so they are easy to find(1)thus saving a lot
of time(1) however impulse buying may lead to financial problems (1)
d) Karabo and kago have just completed studying their degrees in Marketing at
University. They want to open a HYPERMARKET in Francistown.
i) Explain what a hypermarket is. (2)
 A hypermarket is a very large retail outlet with over 5000sqm.of trading space(1) and
they sell a wide range of goods (1)
ii) Differentiate between a hypermarket and supermarket in terms of location and size.
Hypermarket Supermarket
Located on the outskirts of towns and cities Located in town and city centres
It has a trading space of about 5000sq It has a trading space of about 200sq.
meters meters
iii) Evaluate their decision of forming a HYPERMARKET

 Hypermarket sells goods at cheaper prices to consumers (1) since they buy them in bulk
from producers at discounted prices (1) however hypermarkets are too big that
customers may find it difficult to locate products such as soap, lotions etc (1)
 Hypermarkets offer self service which promotes impulse buying of toiletries, washing
powders etc. (1) thus cutting down labour and other operational costs (1) however they
are expensive to set up (1)
 Hypermarket sell large volumes of goods such as bread, tomatoes etc everyday (1) thus
leading to less stock wastage and high turnovers/profits (1) however due to its large size,
it may be difficult to give customers attention (1)
Supposedly Kago and Karabo are advised to start a VARIETY CHAIN STORE.
iv) Explain what a chain store is (2)
 These are multiple outlets which sell a wide range of goods (variety chain stores)
(1)some sell a limited range of goods (specialist chain stores) (1)
v) Differentiate between specialist chain stores and variety chain store

SPECIALIST CHAIN STORE VARIETY CHAIN STORE
Sell a limited range of goods Sells a wide range of goods

vi) Assess the idea of starting a variety chain store (9)

 Chain stores buy goods such as foods, clothes in bulk from suppliers (1) thus benefiting
huge discounts (economies of scale)(1) however large amounts of capital are required to
set it up (1)
 Chain stores are usually uniform in design (1) thus making it easier for customers to
identify them (1) however they are usually many in number thus making it difficult to
manage (1)
 Shortages in one branch can quickly be met by calling another branch (1)thus making all
branches too run smoothly (1) however branches do not have power to make
independent decisions due to centralisation (1)
TRENDS IN RETAILING
e) Discuss three implications of SELF SERVICE to Thabo’s Supermarket as a method of

selling (9)
 Self service is time serving saving and fast (1) hence reducing labour costs (wages and
salaries) to the shop owner (1)however self service may lead to shoplifting of sweets, soft
drinks etc
 Self service may lead to impulse buying of some unbudgeted products such as soft drinks,
chocolates etc(1) thus increasing sales/profits(1) however no personal attention is given
to customers (1)
 Goods such as tea leaves, sugar etc are neatly displayed section by section so they are
easy to locate (1)thus reducing work for the retailer (1) however trolleys and baskets are
sometimes stolen (1)
f) Evaluate the use of ELECTRONIC COMMERCE to Thabo’s Supermarket as a method of

trading (9)
 The internet operates on 24 hours basis (1) thus allowing consumers to buy at any time
of the day(1) however many customers are concerned about security over the internet
(1)
 Customers do not need to sit through TV adverts (1) as more adverts can be posted on
Thabo’s Supermarket website(1) however not many people have access to internet/
computers(1)
 Internet shoppers are well informed (1) and have power to decide how they want
grocery (bread/fish/beans) packaged (1) however there is uncertainty about the return of
damaged goods such as bread fish etc(1)
g) Evaluate the use of BRANDING to Thabo’s supermarket as a trend in retailing (9)

 Branded goods (rice beans etc) are easier to identify(1) thus reducing time spent on
searching for goods (1) however branded goods can easily be counterfeited/ pirated(1)

 Branded goods are easy to advertise (1) thus making them easy to display on shelves (1)
however branding increase the prices of goods (1)
 Branding enables soft drinks, beans etc to be sold through self service (1)thus making it
easy for customers to call them by name (1) however illiterate people may find it difficult
to read brand names(1)
h) Bosele general Dealer recently joined a VOLUNTARY CHAIN of Lucky 7 which is led by
Sefalana Wholesalers.
Discuss the benefits of joining a VOLUNTARY CHAIN to Bosele General Dealer. (9)
 Bosele General Dealer will enjoy the benefits of discounts through bulk buying of rice,
samp etc (1) hence saving money (1) however prices are controlled by the wholesaler (1)
 Bosele General Dealer will benefit from the national advertising of rice, samp etc (1)
hence cutting down operational costs and widening the market(1) however membership
of voluntary chains is controlled by the wholesaler hence no independence (1)
 Joining a voluntary chain would benefit Bosele General Dealer to offer rice, samp etc at a
competitive price (1) hence attracting more sales/ customers (1) however Bosele general
dealer will sell a limited range of goods (1)
i)Legae Furniture Products (Pty) Ltd is a mail order business selling furniture products.
i) Assess the importance of selling through MAIL ORDER service by Legae Furniture
Products (Pty) Ltd.
(9)
 Goods are delivered to the customers door step by the postman (1) thus reducing
handling costs of couches and leather seats (1) however the wrong order may be
processed and sent to the customer (1)
 Mail order firm may offer credit to persuade customers to buy (1) thus increasing sales of
leather seats and couches (1) however risks of bad debts irrecoverable may be very high
(1)
 Mail order firms entice customers by displaying goods in colourful catalogues (1) thus
making the couches and leather seats look very attractive (1) however the appearance in
the catalogues may differ from the actual goods (1)
j) List three features of a mail order firm (3)

 They rely on the post office for delivery of leather products
 They issue catalogues to consumers

 They sell lightweight and low volume goods
j) Discuss two implications of PACKAGING to Fatima’s Supermarket. [6]

 Packaging allows brand names to be shown on the packets of tomatoes (1) so that
customers can easily identify them.(1)
 Packaged tomatoes are easier to handle (1) as they are already put in standard sizes.(1)
 Packaging protects tomatoes when they are handled by customers (1) against damage
while in transit.(1)
 It prolongs the shelf-life of tomatoes that is, it enables goods to stay fresh much longer
before going bad (1)reduces damages (1)
 It enables the use of the self-service method of selling tomatoes (1) and reduces labour
costs (1)
 Attractive packaging attracts customers to buy tomatoes (1)more sales (1)
WHOLESALE TRADE
a) Explain three functions of Legae Furniture Products (Pty) Ltd as a wholesaler to the
retailer (6)
 Warehousing- Legae Furniture Products (Pty) Ltd serves as a warehouse by storing
leather seats and couches on behalf of retailers who do not have their own storage
facilities
 Risk Bearing- Legae Furniture Products (Pty) Ltd bears the risk of fire, damage and
obsolescence when keeping large quantities of couches and leather seats.
 Keeping prices stable-Legae Furniture Products (Pty) Ltd keeps couches and leather seats
in his wholesale warehouse and releases them when there is demand to retain the value
of the couches
b) Pacific (Pty) Ltd owns a general wholesale outlet and sells to retailers in Maun. Pacific
(Pty) Ltd would like to use E-Commerce to expand its market.
c) State one type of a wholesaler other than a general wholesaler. (1)

 Specialist
 Cash and carry

d) Explain two reasons for the elimination of the wholesaler. (4)

 Manufacturers appointing agents to sell goods their goods(1) thus retaining some control
over the sale of their goods(1) OR thus maintaining a high quality customer service(1)
 Sell directly through mail order firms(1) thus reducing handling costs(1)
 Selling through their factory outlets(1) thus distributing goods fast(1)
 Effective transport and communication(1) thus becoming easy to restock(1)
 Goods already branded(1) thus no need to sell them through wholesalers(1)
 Need for speedy distribution of some goods(1) thus reaching customers in good
condition(1)
e) Explain three functions of a general wholesaler. (6)
 Warehousing(1) buy goods in bulk and keep them until needed(1)

 Risk bearing(1) goods bought in bulk may not be wanted by customers hence they
become obsolete or go out of fashion thus causing losses(1)
 Keeping prices stable(1) by holding goods in store in order to prevent shortage(1)
 Breaking bulk(1)
 Providing a variety(1)
 Transport(1)
CREDIT TRADING
(i) Discuss three implications for Mr Boipuso of buying a delivery truck on HIRE
PURCHASE. (9)
 Mr Boipuso is able to acquire an expensive truck(1) since it is a convenient way of
buying expensive items(1) however it is costly due to high interest charges(1)
 Mr Boipuso can use the truck while still paying(1) which improves standard of living(1)
however the customer is not allowed to sell the truck until final payment(1)
 The payments for the truck is spread over a long period of time(1) so customers can
save money for other needs e.g. advertising beef(1) however it tempts customers into
buying what they cannot afford leading to financial problems(1)
ii) Identify three differences between HIRE PURCHASE and CREDIT SALES (6)
HIRE PURCHASE CREDIT SALES

The buyer assumes ownership after last Buyer assumes ownership upon payment
instalment (1) of deposit (1)
Seller can reposes goods if the buyer Seller cannot reposes goods but may sue
defaults (1) for the balance (1)
Buyer cannot sell the goods without Buyer can sell goods anytime (1)
completing payment (1)

iii) What are finance houses? (2)

 These are financial organisations which provide short, medium to long term loans to
businesses which sell on hire purchase.(1) Finance houses also buy invoices from hire
purchase businesses in exchange for cash/ liquid capital.(1)
iv) Explain the importance of finance houses to Ellerines Furniture (Pty) Ltd
 They provide Ellerines Furniture (Pty) Ltd with short, medium and long terms loans to
buy inventory of furniture such as couches, sofas, beds etc
 They buy invoices from Ellerines Furniture (Pty) Ltd in return for capital in cash form so
that Ellerines Furniture (Pty) Ltd can buy TV set, fridges and sofas for resale
HOW TO ESTABLISH A COMMERCIAL ACTIVITY
Carlos Quality Chickens runs a poultry business in Maitengwe village and has been
advertising very well to achieve popularity. The owner, Carlos has made a decision to grow
the business by franchising it after Tshepo had shown interest in buying the franchise from
Carlos Quality Chickens. Carlos advised Tshepo to conduct a market research in her area
before she can run her business under franchising. In Maitengwe, the District Council has
established legislations and policies which regulate poultries and abattoirs and this has been
making it difficult to run poultries easily. Carlos has also been advised to prepare a SWOT
analysis for his poultry in Maitengwe. Upon establishment of Tshepo’s franchise, she had
employed three poultry assistants, two cashiers and a cleaner both of which are not
experienced. Tshepo was funded by the government through Youth Development Fund.
1. Discuss the benefits of franchising to Tshepo who wants to buy a Franchise from Carlos
Quality Chickens (9)
a) Tshepo has the advantage of using a well known and widely advertised name (1) thus
making it easy for customers to buy his chickens and eggs (1) however the payment of
royalties would leave Tshepo with little profit(1)
b) Tshepo may also get assistance like cheap supply of chicken feed, chicks and vaccinations
(1) thus cutting costs of expensive supply (1) however this arrangement restricts Tshepo
from buying chicks/chickens feed elsewhere where they may be cheaper (1)
c) The franchisee (Tshepo) has a much greater chance of success than most other small
business (1) as the chickens and eggs have already been tried and tested and secure in
the market (1) however Tshepo will not be able to sell the business without the consent
of Carlos Quality Chickens (1)

2. Explain the benefits of market research to Tshepo before starting a business. (6)
a) Through market research, Tshepo will be able to identify his competitors (1) who are
also selling chickens, eggs and gizzards (1)
b) Tshepo will also be able to identify the type of customers (1) who will be able to buy
his chickens, eggs and gizzards (1)
c) Through market research, Tshepo will be able to understand how customers want the
eggs and chickens packaged (1) for easy handling and product appeal (1)
3. Draw a SWOT analysis for Carlos Quality Chickens franchise (8)
SWOT ANALYIS
STRENGTH WEAKNESS
 Market research conducted  Poor quality control
 Good location  Insufficient market research
THREATS OPPORTUNITIES
 Legislation & Policies regulating  Chance to grow a franchise through
poultries and abattoirs selling it
 More competitors  Government funding through Young
Farmers Fund
NOTE:
 Application is very important across all questions

 Refrain from using generic words such as product, goods, employees, service,
equipment and raw materials. Such words are too general. For application purposes,
use specific words
E.g. for
Employees- Poultry attendants, cleaners, drivers
Inventory/ Goods/ Products- Chickens, chicks, eggs, gizzards etc
Equipment- feeding troughs, egg trays, battery cages etc

4. Evaluate the impact of Carlos Quality Chickens (Pty) on the community of Maitengwe
(9)
 Carlos Quality Chickens (Pty) Limited will create jobs such as cashiers, accountants,
drivers (1) etc to improve the standard of living for the people in the community (1)
however only a few may be employed(1)
 Carlos Quality Chickens (Pty) Limited will contribute towards the infrastructural
development of the area (building a complex) (1) thus making the area attractive to
other investors (1) however this may lead to overpopulation of the area (1)
 Carlos Quality Chickens (Pty) will contribute towards the pollution of the community
through carbon emission from cars and general litter (1) thus causing possible diseases
to both humans and animals (1) however Carlos Quality Chickens (Pty) Limited may
initiate sponsorships and litter picking campaigns as a way of giving back to the
Thabo is a commercial farmer at Tuli Block, who grows sorghum, maize, beans and
sunflower. The area has been receiving low average rainfall and this has affected his
production. He usually gets assistance from the bank to buy fertilizers, pesticides and fuel.
(a) Explain the term ‘production’ [2]
Making of goods and services/creation of utility (1) in order to satisfy needs and wants
(1)
OR
The process of changing the form of a thing, or its place in space and time and the
rendering of personal services. (1)
(b) Explain two ways in which commerce is part of production. [4]

 Commerce is a branch of production (1) which is engaged in the distribution of
goods and services (1)
 Production is meant for ultimate consumption. (1) Commerce makes possible to link
producers and consumers through retailers and wholesalers (1)
 Producers are always informed about taste and likes of consumers (1) through
market research (1)
 Commerce creates contact between the centres of production (1) and consumptions
and links them. (1)
(c) Explain two advantages to Thabo, of specialising in crop production. [6]

 Time is saved (1) workers do not move from one operation to another (1)
 Training is much quicker (1) learner concentrates on specific tasks (1)
 leads to mass production/increased output (1) due to repetition of the same
operation that results in increase in speed (1)
 Thabo will become known for the particular brand (1) and this may increase sales
because of brand loyalty (1)

(d)Discuss two ways in which Botswana Agriculture Marketing Board (BAMB) can assist
Thabo after harvesting. [6]
 Buy Thabo’s produce as soon as they are harvested (1) providing a guaranteed
ready market (1) however they may pay lower prices (1)
 Collection of produce (1) which relieves her of problems of transport (1) however
transport might not be reliable (1) may take a long time to come and collect Thabo’s
produce (1)
 Storage of produce (1) which relieves her of storage problem/leading to increase in
prices (1) however produce may go bad while still in storage leading to lower prices (1)
 Providing farm inputs (1) Thabo will buy them at reasonable price (1) however might
not be the right type needed by Thabo/ may be too expensive to acquire (1)
 Research (1) may improve production (1) however it needs expertise (1)
Aisha runs a wholesale in Selibe Phikwe, which sells a variety of goods, she buys
from factories in Botswana and South Africa. Her customers are mainly small scale
retailer.
One of Aisha’s suppliers advised her to insure his wholesale.
(a) What is meant by a wholesale business?

A business buying and selling goods in larger quantities (breaking bulk) to retailers than
they are sold to final consumers (1) but in smaller quantities than they are purchased
from manufacturers (1)
(b) Analyse two ways in which the small-scale retailers would be affected by Aisha’s
wholesale. [4]
Advantages:
 stabilise prices (1) since the wholesaler buys in large quantities (1)
 easy to restock (1) which reduces transport costs (1)
 Access to a variety of goods (1) since Aisha buys from Botswana and South
Africa (1)
 Steady supply of goods (1) which leads to customer satisfaction (1)
 Reduction in cost (1) since its closer to the small scale retailers (1)
Disadvantages:
 could be expensive (1) since the wholesaler is closer (1)
 restricted by what is sold by wholesaler (1) since they depend on the wholesaler
for their stock (1)
 may increase competition (1) since wholesaler can also sell to the final
consumers (1)
 Increase in transport costs may affect the prices (1) which may reduce profits (1)
 may not take advantage of cheap products in other shops which may increase
costs (1)

(c) Discuss two ways in which the formation of a voluntary chain might help small scale
retailers to compete successfully. [6]
 they will receive advice on better ways of selling goods (1) which can lead to the success
of the
business (1) however might not be applicable elsewhere (1)
 offer training (1) which may lead to better business decisions (1) however may be
too general (1)
 advertising is generic (1) which reduces advertising costs (1) however individual
image is not taken into consideration (1)
 access cheaper goods (1) since they are buying straight from manufacturer (1)
however they may get goods of poor quality (1)
 delivery of goods (1) which reduces transport costs (1) however there may be
late deliveries since members are many (1)
(d) Assess whether or not Aisha needs to insure his wholesale business. Suggest three
types of insurance that he might need. Which is the most important to Aisha? [9]
 security for investment (1) which can assist insured to acquire loans/get creditors
(1) however may lead to increased costs (1)
 provides savings plan/investment (1) therefore will be able to overcome
misfortunes (1) however may lead loss of value of money during inflation (1)
 compensation (1) which will make him to continue trading (1) however may have
lost customers (1)
 provides security for employment (1) workers /creditors will have more
confidence to deal with Aisha (1) however may lead to more insurance costs (1)
 invisible trade (1) which brings in foreign country (1) however may lead to loss of
assets/cultural erosion (1)
(e) Differentiate between a general wholesaler and a specialised wholesaler.

General wholesaler Specialised
General wholesaler Special wholesaler

They are large companies which have They deal in one class of product so sell
huge capital and sells wider range of limited range of goods (1)
goods (1)
They sells household consumer They can provide the customer with a
goods (1) wide range of the same product. (1)
They deal mainly in manufactured Their warehouses are equipped with
goods and they stock a wide range of loading equipment for easy shelving and
goods so that the retailer may get all loading of goods in bulk(1)
his or her requirements (1)
They often send their salesperson They provide support services to
around to obtain orders from retailers (1) customers. (1)
They provide customers with short term sells consumer durables (1)
credit facilities (1)

PAPER 3
CASE STUDY
Gaone has worked in a fast food business since leaving college a year ago. He studied food
technology at college. Gaone is particularly keen to develop his own ideas for a business. He
has inherited P150 000 from his grandparents. Gaone had very little knowledge of the
various types of business organisations and which one would give the business a number of
advantages. Finally, Gaone decided to register a limited liability business, a restaurant in his
community called SPICY FOODS (Pty) Ltd. He approached a consultant who assisted him to
prepare all the documents required by the Registrar of Companies in order to incorporate
the business .After the incorporation, Gaone was advised to undertake market research. He
realised that his initial capital from inheritance would not be enough and so had to find
other sources of finance to pay for premises and inventory. He decided to discuss the
business with his bank manager for additional funding. The bank manager advised him to
update his proposed financial statements and prepare a business plan.
In the first year of operation, the business did not make any profit but it was able to survive
and gained customers. In the second year the revenue started growing and it continued for
five years. Gaone sought advice from Local Enterprise Authority (LEA) on how to increase
sales and he was advised to do intensive advertising on local radio or on a leaflet using an
advertising agency. In addition he was advised to buy insurance for the business, keep
proper records and conduct an environmental impact analysis to ascertain the effect of the
business on the community since the community has been complaining about the business’
responsibility to the community.
1 (a) State two methods that Gaone might have used to generate the business idea. [2]
 Noting a gap in the market: (1) Gaone has realised that there were no restaurants in the
community.
 Brainstorming: (1) He worked with his family to come up with ideas and chose the best
one after discussions.
 Using own expertise: (1) He realised that he had the skill from school/training. (1)
(b) Explain the term limited liability and state two benefits of limited liability to
prospective investors. [3]
This refers to a situation in which the person who has invested in a business does
not lose more than the amount invested in the business and the person is not personally
responsible for the amount owed by the business in the event that the amount owed is
not paid. (1)
Benefits of limited liability to prospective investors
 It offers protection for the investor against a possible lawsuit because the investor is
considered separate entity from the company.
 This helps investors to know the maximum amount they can lose. (1)
 If the company gets sued, the personal assets, like bank accounts and real estate of
investors are protected (1)
 Personal income are not subject to certain taxes for which the company is liable (1

(c) Gaone had the option to establish a sole proprietorship business but decided to
incorporate the business as a private limited company. Discuss one advantage and one
disadvantage to Gaone of incorporating the business [6]
Advantages for a business owner

 the business will take on its own legal identity (1) so that the business can own assets and
liabilities in its own right (1) and therefore it is separated from its owners(1)
 It can also face legal action (1) the business can sue any person or entity and can be sued
by any person or entity aggrieved by the business (1) this makes the business a legal
person (1)
 If the business accrues large debts, Gaone won’t be held personally liable, (1) Creditors
can’t repossess the personal property of Gaone (1). This provides a protective barrier
that removes risk for Gaone (1).
 The Gaone only loses the money put into the business, (1) and nothing else and investors
can still be held liable for criminal behaviour (1) or if they neglect to follow certain rules
about business management. (1)
 There is no limit to the number of owners. (1) It can have one member or hundreds of
members (1) will allow Gaone to raise more capital for expansion (1)
 The amount of money that owners invested into the business does not need to equal
their percentage of ownership. (1)
 An incorporated business is not required to have a board of directors, annual meetings,
(1) or strict book requirements. (1)This can free up a lot of time and stress to let you run
the business on owners terms (1)
Disadvantages for a business owner

 There is additional paperwork to be completed, (1) the business must register with
Registrar Companies, (1) produce governing documents (1) the memorandum of
association, articles of association and statement of capital (1).
 Owners will lose the direct ownership of assets (1). The assets and revenue, (1)can only
be distributed to owners according to the terms of the companies(1)

(d) Analyse two weaknesses and two opportunities of SPICY FOODS (Pty) Ltd.
OPPORTUNITIES WEAKNESSES
 Financial support (1) from commercial  Inadequate capital-(1) which made it
bank- which enables him to have difficult to buy all the necessary
enough start-up capital. (1) resources to start the business. (1)
 Availability of utilities-(1) which lead to  Poor business management-(1) Gaone
smooth running of the business. (1) failed to keep proper financial
 Better infrastructures (1) e.g. tarred statements which made it difficult to
roads - (1) which makes it easy for (1) apply for financial support from the
customers and suppliers to access the Commercial bank. (1)
business. (1)  Poor business plan-(1) the plan on how
 New technology-(1) which helps in to run and operate the business was not
efficient record keeping and stock good which made it difficult to operate a
control. (1) business. (1)
 Business is operating in rented
premises-(1) which make it impossible to
renovate the building to make it more
attractive. (1)
2 (a) Identify two research methods that Gaone might have used to collect data. [2]
 Field research - (1)
 Desk research -(1)
(b) State two pieces of information that Gaone collected from the research. [2]
 Prices of various meals/per plate of food (1)
 Type of food to serve (1)
 Number of restaurants in the village (1)
 Where she can locate his business (1)
 Whether there is a market for the food he will cook, and if so, how big it is. (1)
 Who will be the people who will buy the food- so that he meets their standards. (1)
 If there are other restaurants in the area- so that he finds ways of overcoming them. (1)
 The kind of food customers want-so that he cooks what can satisfy them. (1)
 The price per type of food-so that it does not differ much from what is offered by
competitors. (1)
(c) Design two research questions on each of the following topics: [4]
Price
 How much do you usually pay for a packet of chips? (1)
 How much do you think is the right price for a lunch pack? (1)
 How much do you think is the right price for a lunch pack without soft drink? (1)
Competitors
 Where do you normally buy your lunch pack? (1)
 Is there a restaurant in the area? (1)
 Where you buy your lunch, what do they offer for free as part of the lunch pack? (1)

(d) Discuss three ways in which the preparation of a business plan about SPICY FOODS
(Pty) ltd might help the long-term success of the business. [9]
A business plan:
 It shows prospective investors how serious the business is(1) and how the business
will benefit investors: (1) by given better returns to the investors (1)
 It forces Gaone to think and plan ahead(1) because it sets the objectives of the
business (1) to enables all stakeholders to appreciate the direction of the business
 It contains vital pieces of information required to estimate likely success (1) and it
determines the target market (1); motorists, government departments, students, NGOs.
(1) who will buy the products.
 It shows the promotion strategy: (1) leaflets, word of mouth, t-shirts, advertising on
taxis (1) that has to be used for promoting the product.
 It shows the pricing strategy: (1)penetration/ cost-plus/ market scheming(1)
 It describes competitors (1); other restaurants, fast food franchises (1) that operates in
the area.
 It outlines the methods of selling: (1) cash, free meals on selected days (1) door-to door
delivery.
 It enables Gaone to prepare the sales forecast: (1) e.g. 250XP25 plates per day. (1)
 Stating sources of finance (1) e.g. inheritance from parents: P150 000(1) and loan
proportion to the total capital.
 It help to gain finance(1), because it is required by a Bank Manager before agreeing on
loans (1)
(e) Identify three types of financial records that an incorporated business must keep.
Explain why each record is important. [6]
Cash flow statement (1)

 Helps to see if the business needs additional capital (1)
 Shows how much surplus the business has at a given time. (1)
Income statement (1)

 Shows Gaone and other shareholders how the business is performing (1)
 Can assist the company to obtain finance for growth (1)
 Used to compare income against the costs of goods/services and expenses incurred.(1)
Statement of financial position (1)

 Shows assets, (1) capital and liabilities of a business as at a particular date. (1)
 Provides a summary of what a business owns or is owed, and what it owes at a given
point of time. (1)
Income and expenditure (1)

 Helps to see if the business needs additional capital(1)
 Shows how much surplus the business has at a given time. (1)

3 (a) What is meant by insurance? [2]

Protection given against a risk that one is not sure will occur (1) but if it does occur may
cause a financial loss to the person or business (1).
(b) State two reasons why a business should have insurance. [2]
 To arrange compensation
 To be able to use the policy as collateral to acquire funds
 To act as an investment plan which will be cashed in the future
 To provide some financial protection for the business in case of accident
(c) Gaone wishes to advertise to increase sales and raise the business image as advised by
Local Enterprise Authority (LEA). Assess whether it would be better for Gaone to
advertise using local radio or leaflets. Explain the reasons for your recommendation. [9]
Local radio
 caters for the majority of the population in the whole community (1) since it has sound
impact (1) however it is expensive to use (1)
 the voice (1) may attracts customers (1) however the person whose voice is being
projected may not be heard in other areas due to system failure (1)
Leaflets
 can cover a larger area (1) since they can be distributed door to door (1) even though
can easily be destroyed by people (1)
 are cheaper than television (1) since many can be printed at a time (1) however may
not be detailed for the customers to understand (1)
 it lasts longer (1) which leads to the advert being seen by both motorists and
pedestrians (1) however it is expensive (1)
(d) Gaone could either arrange the advertising himself, or he could use the services of an
advertising agency. Discuss both options. Which would you recommend for Gaone?
Give three reasons for your recommendation. [9]
Should use the services of an advertising agency
 Have skilled manpower- (1) who has expertise to design appropriate advertising
material (1) hence high quality of advertising message (1)
 Have equipment – (1) have production studio for making advert e.g. (1) drawing,
filming. (1) and could lead to increase in the target market (1)
 Allows Gaone to concentrate on core business (1) which saves Gaone’s time (1) which
allows time to concentrate on the customers of a restaurant to gain their loyalty. (1)
 Advice and information (1) the agency does market research on market size and
competition (1) and this could lead to better ways of designing the message (1)
 It is economical(1) Gaone does not have to operate an advertising department as it will
mean employing skilled personnel and buying expensive equipment (1) and this will
lead to a reduction in advertising cost (1)

Arrange own advertising

 It could be of high quality message (1) personnel hired is to protect the image of the
business (1) but might not have the necessary skills to design the quality message (1)
 Adverts might take too long to produce (1) because there is no hurry since there is job
security (1) this could lead to low viewing rate and high cost (1)
 Gaone won’t have control over the choice of media (1) agency may give biased advice
on choice of media. (1)
 It is likely to be cheaper (1) because it is done in house with already hired personnel (1)
and this also motivates the workers to produce more. (1)
Alternative method of response

 An advertising agency can negotiate on price and rate. (1) Once you hire people
internally, you can't negotiate their salaries (1)
 Agencies don't have job security. (1) You can fire an agency very easily; (1)
however, firing the entire department and getting a new one would be very
expensive. (1)
 Agencies work on many different industries, (1) the experiences of which are
sometimes transferred to other clients as the good agencies learn how to share
knowledge from client to client. Internal departments only learn from their own
mistakes.
 Agencies are focused on delivering advertising services, (1) so their processes
are developed and tested to be competitive. (1)
 Businesses compete with one another for business. Internal departments don't
have to compete with anybody. (1)
 Working on the same creative day-in and day-out becomes monotonous and
boring. Agencies attract great talent because they get more opportunities to do
interesting work. (1)

SPICY FOODS (PTY) LTD’S INCOME STATEMENT FOR THE YEAR ENDED 31 JULY
2017
P P P
Revenue 160 000
Less returns inward 15 000
(V)
Opening Inventory 50 000
Add Purchases 40 000
90 000
Less closing inventory 60 000
Cost of sales (W)
Gross Profit 115 000
Commission earned 2 000
(X)
Wages 30 000
Rent/ rates 30 000
Insurance 15 000
Other operating expenses 5 000
Total Expenses (Y)
Profit for the year (Z)
(a) Complete the above Income Statement by calculating the values of the following. [5]
(i) V P160 000 - P15 000 = P145 000(1)
(ii) W P90 000 -P60 000 = P30 000(1)
(iii) X P115 000 + P2 000 = P117 000(1)
(iv) Y P30 000 + P30 000 + P15 000 + P5 000(1) = P80 000(1)
(v) Z P117 000 – P80 000 (1) = P37 000(1)
(b) Explain three ways how SPICY FOODS (Pty) Ltd business activities might affect the
community. [6]
 Creation of employment (1) leading to better standards of living (1)
 Bringing fast foods closer to the people (1) hence satisfaction of their needs (1)
 littering (1) the used plastic bags and paper plates from the restaurant may make the
 environment untidy (1)
 Offering sponsorships (1) hence better relations with the villagers (1)

(c) SPICY FOODS (Pty) ltd has been violating the environmental regulations set by the Local
Council. The Local Council could make SPICY FOODS (Pty) Ltd. obey the environmental
regulations in the community by adopting one of the following programmes.
 education
 administrative actions
 judicial actions
Discuss each programme. Which programme would you recommend the local council to
use? Give reasons for your recommendation. [9]
Education
 visitation of business premises to educate (1) health inspectors can regularly check SPICY
FOODS (Pty) Ltd to ensure that they follow health and safety measures (1) hence
customers getting healthy foods (1)
 Public education on by inviting companies to an environmental seminar or conferences
(1) for them to learn how to protect the environment, but could be expensive(1)
 Printing of posters, advertising on radio, TV (1) on the environment awareness (1) but
most customers might not see them. (1)
Administrative actions
 Civil administrative actions(1) such as a notice of violation or an order(1) directing SPICY
FOODS (Pty) Ltd to take action to comply with regulations. (1)
 enforcement of the law/policing (1) health inspectors can regularly check SPICY FOODS
(Pty) Ltd to ensure that they follow health and safety measures (1) hence customers
getting healthy foods (1)
 Denying SPICY FOODS (Pty) Ltd a license (1) to operate the restaurant (1) as a form of
punishment and this might cause the close down. (1)
 Penalties (1) will be paid by SPICY FOODS (Pty) Ltd if further violation or noncompliance
of the regulation. (1)
Judicial actions
 Imposition of civil judicial actions on SPICY FOODS (Pty) Ltd (1) that the company has
failed to comply with statutory or regulatory requirements. (1) this might lead to
cancelation/suspension of operating license(1)
 Instituting a criminal action (1) against SPICY FOODS (Pty) Ltd for any serious violations
(1).
 Injunctive relief (1) which will require SPICY FOODS (Pty) Ltd to refrain from damaging the
environment (1) and also to bring SPICY FOODS (Pty) Ltd into compliance with
environmental laws (1)
 Imposition of criminal penalties (1) e.g. local fine (1) by a Judge on SPICY FOODS (Pty) Ltd.
 SPICY FOODS (Pty) Ltd may also be ordered to pay restitution (1) to the community if
violation continues (1).
 SPICY FOODS (Pty) Ltd may be ordered to pay a local environmental pressure group, the
cost of responding to and containing a hazardous waste spill. (1) or contributing to local
environmental fund

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1 |COMMERCE REVISION 2 0 2 3

WABTIC REVISION 2022

a) Identify two types of cheques (4)

Evaluate the use of cheque by Abel Motors (Pty) Ltd

c) Explain the importance of computers in banking (6)

d) Differentiate between loans and overdrafts

©SHASHE RIVER SCHOOL_ BUSINESS SUBJECTS/COM/2023

f) What is meant by a standing order?

©SHASHE RIVER SCHOOL_ BUSINESS SUBJECTS/COM/2023

 It saves employers time of signing many cheques

Paying Water Bills

a) Explain the importance of fast and accurate transmission of information to Shashe

©SHASHE RIVER SCHOOL_ BUSINESS SUBJECTS/COM/2023

b) Explain three factors business should consider when choosing a method of

©SHASHE RIVER SCHOOL_ BUSINESS SUBJECTS/COM/2023

(b) Assess the use of landline telephone to TK General Wholesalers as a method of

a) Identify any three documents used in warehousing (6)

©SHASHE RIVER SCHOOL_ BUSINESS SUBJECTS/COM/2023

c) Assess the benefits of warehousing to Sechaba Juice Makers (9)

a) Identify any three modes of transport (3)

©SHASHE RIVER SCHOOL_ BUSINESS SUBJECTS/COM/2023

c) Evaluate the use of AIR TRANSPORT in transporting diamonds from Gaborone to

©SHASHE RIVER SCHOOL_ BUSINESS SUBJECTS/COM/2023

e) Discuss the effectiveness of the ROAD TRANSPORT system in Botswana in helping

g) Identify new developments in rail transport

h) Identify any new developments in road transport (3)

i) Identify three new trends/ developments in air transport (3)

©SHASHE RIVER SCHOOL_ BUSINESS SUBJECTS/COM/2023

a) Explain the importance of advertising to Coca Cola Company (6)

©SHASHE RIVER SCHOOL_ BUSINESS SUBJECTS/COM/2023

b) Identify factors affecting the choice of the advertising media (6)

c) Identify 3 ways in which advertising may be regulated (6)

©SHASHE RIVER SCHOOL_ BUSINESS SUBJECTS/COM/2023

g) Evaluate the use of MAGAZINES in advertising women’s clothes

h) Explain two advantages and one disadvantage of advertising on BILLBOARDS to Aisha

©SHASHE RIVER SCHOOL_ BUSINESS SUBJECTS/COM/2023

(a) (i) What is meant by PARTNERSHIP business? [2]

©SHASHE RIVER SCHOOL_ BUSINESS SUBJECTS/COM/2023

(i) Assess his decision of starting a sole proprietorship business (9)

(b) Explain two functions of the STOCK EXCHANGE [4]

©SHASHE RIVER SCHOOL_ BUSINESS SUBJECTS/COM/2023

Public limited liability

e) Evaluate how important limited liability is to a company and its shareholders

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a) Evaluate the benefits of Shoppers Limited becoming a MULTINATIONAL COMPANY to

a) Define PRIVATISATION in relation to the case study (2)

b) Evaluate the effects of PRIVATISATION of Air Botswana to the economy of Botswana

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a) Define NATIONALISATION in relation to the case study

b) Discuss the benefits of NATIONALISATION of Matsela Fabrics(Pty) Ltd to the

In 2015 the government of Botswana converted Botswana Telecommunication

a) Define COMMERCIALISATION in relation to the case study (2)

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b) Evaluate the effects of COMMERCIALISATION to the economy of Botswana (9)

 There will be improved efficiency in delivery of telecommunication services and sale of

c) Identify 3 functions of the BOTSWANA STOCK EXCHANGE (6)

e) Identify 3 types of SPECULATORS allowed to trade at the stock exchange (6)

f) Identify 4 causes of the STOCK MARKET TURBULENCE

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g) Identify any 3 consequences of stock market turbulence (6)

EVALUATION OF SOURCES OF CAPITAL FOR BUSINESSES

 government provide assistance in terms of training and management of the

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Pule Tiro Designer and Upholstery (Sole Proprietor)