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Questions and Answers

What is the primary economic problem described in business studies?

Scarcity occurs when there are enough resources to meet all demands.

Unlimited needs can be met because factors of production are unlimited.

Unlimited wants cannot be met due to limited factors of production. (correct)

Resources are distributed equally among all consumers.

What are consumer goods?

Goods that are not available to the public.

Products sold directly to the final consumer. (correct)

Products created for businesses to use.

Intangible products that benefit consumers.

What does ‘opportunity cost’ refer to?

The cost of a good in relation to its market price.

The total profit made on sold goods.

The benefit lost from an alternative use of resources. (correct)

The amount spent on producing goods.

What is the concept of specialization in business?

People and businesses concentrate on tasks they are most efficient at. Signup and view all the answers

Which sector is involved in the manufacturing of goods from natural resources?

Secondary Sector Signup and view all the answers

What does adding value in business signify?

Turning raw materials into products that sell at a higher price than their cost. Signup and view all the answers

In which classification are firms that supply services categorized?

Tertiary Sector Signup and view all the answers

What is meant by the term ‘chain of production’?

The interconnected stages of production from primary to tertiary sectors. Signup and view all the answers

What is the main goal of the National Youth Service Programme?

To create a culture of service among young people Signup and view all the answers

Which organization is responsible for helping women in the construction industry in South Africa?

South African Women in Construction (Sawic) Signup and view all the answers

What does Technology for Women in Business (TWIB) focus on?

Making technology accessible to women in business Signup and view all the answers

What service does the Gender and Women Empowerment Unit provide?

It manages the South African Women Entrepreneurs Network (SAWEN) Signup and view all the answers

How does SAWEN help women in business?

By compiling a database of women-owned enterprises Signup and view all the answers

Which of the following is NOT a contact number mentioned for the organizations?

013 450-7890 Signup and view all the answers

What is a key component of the National Youth Services?

Improving youth employability through experience and skills development Signup and view all the answers

What strategy does Sawic employ for its members?

Administers and lobbies for the empowerment of women in construction Signup and view all the answers

What is one of the primary requirements for a cooperative to qualify for a grant?

It must be registered with CIPRO. Signup and view all the answers

What is the maximum grant amount available for a single company under the Black Business Supplier Development Programme?

R100,000 Signup and view all the answers

Which activity is NOT supported by the Black Business Supplier Development Programme?

Real estate investment Signup and view all the answers

What is the primary role of Khula Enterprise Finance LTD?

It provides mentorship and helps businesses get bank loans. Signup and view all the answers

Which of the following statements accurately describes the criteria for black-owned enterprises to qualify for grants?

The management team must have significant representation of black managers. Signup and view all the answers

What should a company do first after obtaining the application form for the Black Business Supplier Development Programme?

Complete the application form. Signup and view all the answers

What services does the South African Micro Finance Apex Fund (Samaf) provide?

Financial services to small-scale entrepreneurs. Signup and view all the answers

Which form is needed to register a cooperative?

Form CR1 Signup and view all the answers

What is the purpose of the Micro-Credit Fund offered by Samaf?

To give loans to qualifying entrepreneurs Signup and view all the answers

In which area does the Technology for Sustainable Livelihoods programme primarily operate?

Assisting communities in forming viable businesses Signup and view all the answers

Which type of organization is created to facilitate community business under the DST programme?

Section 21 Companies or cooperatives Signup and view all the answers

What service does Umsobomvu Youth Fund primarily provide to support youth?

Training in essential business skills Signup and view all the answers

What type of facilities do Umsobomvu youth Advisory Centres (YACs) provide?

Information, training, and referral services Signup and view all the answers

What must communities have access to in order to benefit from fish farming under the DST programme?

Irrigation dams Signup and view all the answers

What is required to legally start a business according to the guidelines provided?

Registration at CIPRO Signup and view all the answers

Which fund provided by Samaf aims to improve institutions’ skills and systems?

Capacity Building Fund Signup and view all the answers

What characterizes a developed country compared to a developing country?

Higher standard of living Signup and view all the answers

Which of the following organizations supports the growth of small businesses?

Small Enterprise Development Agency (Seda) Signup and view all the answers

What is a primary focus of the Small Enterprise Development Agency (Seda)?

Co-operative enterprises Signup and view all the answers

When writing a business plan, what is the first step that should be taken?

State your business idea clearly Signup and view all the answers

What type of financial support is provided by the Co-operatives Incentive Scheme (CIS)?

Cash grants for quality services Signup and view all the answers

To ensure a business plan's effectiveness, what should be included regarding market viability?

Research into whether the idea will work Signup and view all the answers

Which statement about the classification of countries based on business activity is true?

It indicates economic status but does not define developing or developed status. Signup and view all the answers

What is the purpose of the cash grants provided by the Co-operatives Incentive Scheme (CIS)?

To support acquisition of quality services for growth Signup and view all the answers

Study Notes

Business Activity

Production of goods and services to satisfy consumer demand.
Examples: Manufacturing cars, providing healthcare, or offering financial services.

Need

Essential good or service for survival.
Examples: Food, water, shelter, and clothing.

Want

Desired good or service that is not essential for living.
Examples: Luxury cars, designer clothes, and expensive vacations.

Economic Problem

Unlimited wants clash with limited resources. This results in scarcity.
Examples: Limited supply of drinking water in a drought-stricken region or a shortage of affordable housing in a densely populated city.

Factors of Production

Resources used to produce goods and services.
Land: Natural resources like forests and minerals.
Labour: Human effort used in production.
Capital: Man-made resources like machinery and buildings.
Enterprise: The skills and risk-taking ability of entrepreneurs.

Scarcity

Limited availability of resources to meet all needs and wants.
Examples: A scarcity of fossil fuels leading to higher energy prices or a shortage of skilled workers limiting economic growth.

Opportunity Cost

The value of the next best alternative forgone when making a choice.
Examples: Choosing to study economics instead of pursuing a career in engineering might lead to a lower starting salary but greater knowledge in a specific field.

Specialisation

Focus on a specific task, product, or service to improve efficiency and quality.
Examples: A car manufacturer specializing in electric vehicles, a software developer specializing in mobile applications, or a doctor specializing in cardiology.

Division of Labour

Breaking down production into individual tasks for increased efficiency and production.
Examples: An assembly line in a car factory, a customer service department in a retail store, or a research team working on a specific project.

Consumer Goods

Tangible products purchased by individuals for personal use.
Examples: Clothes, electronics, food, furniture, and vehicles.

Consumer Services

Intangible services bought by individuals for personal use.
Examples: Education, healthcare, entertainment, travel, and financial services.

Capital Goods

Physical goods used by other businesses to produce goods and services.
Examples: Machinery, equipment, factories, computers, and vehicles.

Adding Value

Enhances the value of raw materials through processing or transformation to sell at a higher price.
Examples: Converting wood into furniture or processing wheat into bread.

Branding

Creating a unique image and identity for a company and its products.
Examples: Apple's focus on design and innovation, Nike's association with athletic performance, or Coca-Cola's association with happiness and refreshment.

Excellent Service Quality

Providing exceptional customer service to ensure satisfaction and repeat business.
Examples: Prompt and helpful assistance, personalized attention, dealing with complaints effectively, and exceeding customer expectations.

Product Features

Added functionalities or attributes to a product that can increase its value and price.
Examples: Smartphones with advanced cameras and processing power, cars with safety features like lane departure warning, and clothes with moisture-wicking technology.

Convenience

The ease and accessibility of obtaining a good or service.
Examples: Online shopping, delivery services, 24/7 customer support, and convenient locations.

Primary Sector

Extracting natural resources.
Examples: Mining, agriculture, forestry, and fishing.

Secondary Sector

Processing or manufacturing goods from natural resources.
Examples: Steel production, textile manufacturing, car assembly, and food processing plants.

Tertiary Sector

Providing services to consumers and other businesses.
Examples: Retail stores, hospitals, banks, restaurants, transportation, and entertainment.

Chain of Production

The interconnected flow of activities from primary, secondary, and tertiary sectors to deliver goods to consumers.
Examples: Farmers grow wheat (primary), mills process it into flour (secondary), bakeries bake bread (secondary), and retailers sell bread to consumers (tertiary).

Small Business Development

Processes and initiatives to support the growth and success of small and medium-sized enterprises (SMMEs).

Seda

Small Enterprise Development Agency: Offers business support services to entrepreneurs.
Services include: Training, business plan development, access to finance, and market research.

Co-operatives

Groups of entrepreneurs who share profits and responsibilities in a business.

CIS (Co-operatives Incentive Scheme)

Provides financial grants to cooperatives for improvement and development.

How to write a Business Plan

Define your business idea, how you will implement it, and your timeline for success.
Research the viability of your idea and plan.
Cover these main areas:
- Executive summary: Briefly outlines the business, its goals, and key aspects.
- Marketing plan: Outlines target audience, pricing strategy, and promotional activities.
- Financial plan: Includes projections, budgets, and funding sources.
- Operations plan: Covers daily operations, production, and staffing.

Black Business Supplier Development Programme

Grants for black-owned businesses for skill development.
Criteria: Majority black-owned (15% or more), significant black management representation, annual revenue under R12 million, trading for at least a year.
Max grant: R100 000.

Finance for Small Businesses

Khula Enterprise Finance: Connects SMMEs with bank loans and provides mentorship.
Samaf (South African Micro Finance Apex Fund): Provides financial services to rural and outer city entrepreneurs through local institutions.
- Micro-Credit Fund: Loan program.
- Capacity Building Fund: Funding for skills, systems, and equipment.
- Savings Mobilisation Fund: Encourages savings.

Technology for Sustainable Livelihoods

Programme by the Department of Science and Technology (DST) to support SMMEs in communities.
Provides access to technology, skills development, and training to create jobs.

Registering your business

Requires registration with the Companies and Intellectual Property Registration Office (CIPRO) by submitting necessary forms.

Support for Youth

Umsobomvu Youth Fund: Business development and essential skills training for youth.
Umsobomvu Youth Advisory Centres (YACs): Provides information, training, and referral services.

National Youth Service (NYS)

Program for youth to engage in community development, gain work experience, and develop skills.

Support for Women

Sawic (South African Women in Construction): National association empowering women in construction.
TWIB (Technology for Women in Business): Aims to improve access to science & technology for women in business.
Gender and Women Empowerment Unit (Department of Trade and Industry): Manages SAWEN (South African Women Entrepreneurs Network).
SAWEN: Helps women overcome business obstacles, builds networks, provides training, and advocates for policies supporting women entrepreneurs.

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