Business Concepts in Botswana

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

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.