Centre Number Candidate Number Candidate Name

NAMIBIA SENIOR SECONDARY CERTIFICATE

BUSINESS STUDIES ORDINARY LEVEL 4346/1

PAPER 1 2 hours
Marks 100 2013

Additional Materials: Non-programmable calculator

INSTRUCTIONS AND INFORMATION TO CANDIDATES

Candidates answer on the Question Paper.

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E
Write your Centre Number, Candidate Number and Name in the spaces at the top of this

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page and on all separate answer sheets used.
Write in dark blue or black pen.

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You may use a soft pencil for any rough work, diagrams or graphs.

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Do not use correction fluid.
Do not write in the margin For Examiners Use.

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You may use blank pages for workings/when answers are crossed out and corrected.

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Answer all questions. For Examiners Use

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1
The number of marks is given in brackets [ ] at the end of each

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question or part question. 2
3

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4

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5
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This document consists of 12 printed pages.

110174

Republic of Namibia
MINISTRY OF EDUCATION

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1 Jady Jadison, the owner of Comfy Shoes CC is using the principles of Use
specialisation and division of labour to produce shoes. He borrowed money
from a local bank to expand his business.
(a) Differentiate between division of labour and specialisation.

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(b) Jady is operating in a mixed economy. Explain at least two features of this
type of economy and relate them to the Namibian economy.

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(c) Globalisation is on the increase everywhere. Even Comfy Shoes CC is Use
increasingly trading with other southern African countries. Identify and
explain three reasons for this increase in international competition.

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(d) The governor of the Bank of Namibia (the central bank) recently announced
an increase in interest rates. Discuss how this announcement might affect
Comfy Shoes CC.

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2 Blinds for Africa is a newly established business. The management is trying to Use
classify their costs to help them in planning and decision making.
(a) Explain the following concepts:
(i) Variable costs

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(ii) Fixed costs

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(iii) Marginal costs

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(b)(i) What is the difference between a budget and a forecast?

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(ii) Explain two reasons why it is important for this firm to budget properly. Use

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(c) Blinds for Africa want to add more value to their product. They need to
borrow extra money for this expense.
(i) As a bank manager, identify two questions that you would ask before
granting the loan.

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(ii) Explain why the answers to the questions in (c) (i) are important.

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3 A clothing factory is experiencing problems with its workforce. The workers Use
are unhappy because there was no increase in salaries for the past two years.
There was also no change in their working conditions. The workers joined a
union to support them.
(a) Identify the type of union these workers could belong to.

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(b)(i) The owners decided to sign a single union agreement. Explain what is
meant by this statement.

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(ii) Explain two advantages and two disadvantages for the employer in
acknowledging this type of agreement.

Advantages

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Disadvantages

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(c) The union gave the workers two options, a selective strike or work to rule. Use
Describe the effectiveness of these two options.

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(d) To reduce the conflict employers decided to introduce non-financial rewards.
Explain, with examples, non-financial rewards.
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(e) Give three reasons why businesses might join employer associations. Use

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4 Posh Africa is a restaurant that specialise in Portuguese dishes as well as local Use
favourites. They added more value to their service by introducing a dial-a-
meal department for specific dishes. The motto of the manager is to liaise with
customers to know how to satisfy their needs.
(a)(i) Would you describe this business as product- or market orientated?
Justify your answer.

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(ii) Will a product- or market orientated business in this field have a better
chance of being successful? Explain and justify your answer.

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(b) State four possible marketing objectives that the management of Posh Use
Africa may set.

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(c) For the dial-a-meal to operate efficiently it is important that they use the right
method of transport. Identify and explain the most appropriate method.

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(d) Comment on the advantages and disadvantages of television as a means
of advertising Posh Africa and its dishes.

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5 The Namibian government intervene in business activity to protect the interest Use
of all the groups in the society as well as to achieve national objectives.
(a) State two possible effects on society if business activity was not controlled
by the government.

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(b) Name three economic objectives that the government might try to achieve.

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(c) Discuss two factors that must be considered in the location of a service
providing business.

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(d) Locating a factory near to communities can create jobs and other benefits. Use
However, the government sometimes intervene because of the social costs
involved. Illustrate and explain at least two social costs that the opening
and operation of a factory near to a community may generate.

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(e) How does the Namibian government protect the interest of those who lend
and provide capital?

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