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Questions and Answers
Which of the following is a type of large scale retailer commonly found in Botswana?
A discount is a type of payment method used exclusively in credit sales.
False
What type of production is Mr. Aya involved in?
Subsistence production
One feature of lay-bye is that customers make __________ payments before receiving the goods.
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Match the following terms to their definitions:
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Which of the following is a consumer right that may have been violated in Ginah's case?
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Considering competition in market research is optional for businesses.
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What is one way a buyer can use information from a receipt?
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A marketing manager is responsible for ______________.
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Match the following roles in a business with their responsibilities:
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Study Notes
Large Scale Retailers in Botswana
- Two examples of large scale retailers in Botswana include supermarkets and department stores
Discounts
- Discount is a reduction in the selling price of goods
- One feature of lay-bye is that the buyer pays for an item in installments
Production Types
- Mr. Aya is involved in subsistence production
- Advantages of sorghum production: Food security, Potential income generation
Market Research
- Competition is a key factor in market research because it helps understand the competitive landscape and identify opportunities or threats to a business’s success.
Consumer Rights
- Ginah's consumer rights were violated because she experienced a product defect and the shop owner refused a refund.
Buyer's Receipt Use
- Buyers use information from receipts to track their spending
Business Plan Use
- Youth Development Fund uses a business plan to assess the viability of the proposed project and evaluate the applicant’s ability to manage the business
Marketing Manager Duties
- It is the duty of a marketing manager to conduct market research and develop marketing strategies
Recycled Paper Benefits
- Dudu benefits from using recycled paper by contributing to environmental sustainability and potentially lowering production costs
Environmental Pollution Effect
- A key effect of polluting the physical environment is environmental degradation
Central Bank Role
- The Central Bank of Botswana is responsible for regulating the financial system and maintaining monetary stability
Cheque Payment Reasons
- Two reasons to pay by cheque include security and recordkeeping
Cheque Parties
- Two parties involved in a cheque include the drawer and the payee
Borrowing
- The balance that Tsitsi needs to borrow is considered a loan
Start-Up Capital Needs
- Businesses need start-up capital to purchase assets and cover initial expenses
Returns Inwards
- Businesses deal with returns inwards when customers return defective or unwanted goods
- Returns inwards are treated as a deduction from the cost of goods sold in the trading account
Working Capital
- The working capital of Agreement (Pty) Ltd is P16,000
- Formula: Current Assets – Current Liabilities
- Calculation: P125,000 + P37,500 + P11,000 + P7,500 + P1,500 - P6,000 – P9,000 = P16,000
Dishonored Cheque
- A cheque that is returned unpaid due to insufficient funds is a dishonored cheque
- Bank Reconciliation Statement treats dishonored cheques as a deduction from the bank balance
Owner Taking Goods
- When the owner takes inventory for personal use this transaction is recorded as a drawing
Reimbursement Calculations
- The amount to be reimbursed at the end of the period is P159
- Calculation: P700-00 – P541.00 = P159-00
Trade and Cash Discounts
- The amount to be paid within the credit period is P2,160
- Calculation: (12 items * P250.00) * 0.80 * 0.95 = P2,160
- An advantage of trade discounts is that they can encourage larger purchases
Carriage Inwards
- Carriage inwards is added to the cost of the goods purchased because it is considered an indirect expense incurred in bringing goods to the business
Customers' Accounts
- Customers’ personal accounts are found in the sales ledger
Balance Sheet Classification
- A car is classified as a fixed asset on the balance sheet
- Reasons: It is expected to be used in the business for multiple periods and it has value over time.
Balance Sheet Order
- Current assets are arranged in the balance sheet in descending order of liquidity
Contra Entry
- A contra entry is an entry that reverses or reduces the balance of an account
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Description
This quiz covers various business concepts relevant to Botswana, including large-scale retailers, market research, consumer rights, and production types. Test your knowledge on how these elements influence the retail landscape and consumer experience in the country.
