NORTH WEST PROVINCIAL

ASSESSMENT

GRADE 9

ECONOMIC AND MANAGEMENT SCIENCE

NOVEMBER 2016

MARKS: 200

TIME: 2 HOURS

This question paper consists of 12 pages.

Economic and Management Science/Gr.9 2 NWPA/November 2016

INSTRUCTION TO LEARNERS

1. Read all the instruction carefully

2. Answer all the question on the answer sheet provided

3. The duration of examinations is 2 hours

4. Write neatly and legibly

Economic and Management Science/Gr.9 3 NWPA/November 2016

SECTION A

QUESTION 1

Various possible options are given as answers to the following questions.

Choose which one is the most correct answer and write only the corresponding
letter next to the question number on your answer sheet, for example 1.1B

1.1 In the simple circular flow model… (2)

A households are sellers of resources and demanders of products

B households are sellers of products and demanders of resources
C business are sellers of resources and demanders of products
D business are sellers of both resources and products

1.2 In a market economy… (2)

A the factors of production are privately owned

B the government sets output targets for each area
C people have little or no freedom of choice
D everyone earns similar incomes

1.3 The business function that involves the setting of long term goals… (2)

A administration
B marketing function
C general management function
D finances

1.4 One of the functions of human resources is… (2)

A promoting the organisation

B building good relations between the company and third party
C protecting the image of the business
D ensuring the business has the right skills in the right quantity at the
right time
Economic and Management Science/Gr.9 4 NWPA/November 2016

1.5 Collective bargaining is the term used to describe… (2)

A negotiations by trade unions with business about working conditions

B a work stoppage by workers
C the process of employing an external party to help workers find a
solution
D unfair treatment of workers

1.6 Current assets refer to… (2)

A all assets owned by the company

B assets that can be turned into cash quickly
C assets that have high value to the company
D assets which will last for more than one year

1.7 The owner deposits his capital contribution in the current account of the
business, R65 000

The analysis of it is…

Sources document Account Account

debited credited
A duplicate receipt Bank Capital
B cheque counterfoil Capital Bank
C cheque counterfoil Bank Drawings
D duplicate receipt Capital Bank

1.8 The General Ledger is… (2)

A the book of first entry

B the summary of transactions in the subsidiary journals
C the final book of entry for all transactions
D a check that total debits equal credits
Economic and Management Science/Gr.9 5 NWPA/November 2016

1.9 A Creditors List summarises… (2)

A the list of creditors

B the amounts owed to creditors
C the amounts owed to debtors
D all of the above

1.10 The source document for credit purchases from Creditors is a/an… (2)

A original invoice
B duplicate invoice
C original receipt
D cheque counterfoil
[20]

QUESTION 2

State whether the following statements are True of False. Write answer only.

2.1 An increase in the price of beef, will lead to an increase in the demand for
chicken. (2)

2.2 The circular flow is in fact the huge market. (2)

2.3 The driving force behind a market economy is profit. (2)

2.4 When trading stock is bought on credit, assets as well as liabilities

increase. (2)

2.5 The idea behind management is to achieve the lowest income with the
highest cost. (2)

[10]
Economic and Management Science/Gr.9 6 NWPA/November 2016

QUESTION 3

Choose the correct word in brackets and write it next to the correct number on
your answer sheet.

3.1 In a (planned / market) economy system the state controls all economic
activity. (2)

3.2 In a (planned / market) economy prices are determined by demand and

supply. (2)

3.3 An estate agency is an example of a (consumer / factor) market. (2)

3.4 All income and expenses are (nominal / balance sheet) accounts. (2)

3.5 When the media is invited to launch a new product it is called

(advertising / a press conference). (2)

[10]
QUESTION 4

Match the statements in Column A with the term in Column B. Write only the
corresponding next to the question number, for example 3.1 C

COLUMN A COLUMN B
4.1 Membership fees A leading

4.2 Business that offers credit purchases B market research

4.3 Customers that buy on credit C creditors

4.4 Data that has been process into useful form D tertiary sector

4.5 Analysing positives and negatives of the business E information

4.6 Banking, transport, retailers and wholesalers F SWOT

4.7 Taking raw materials out of earth G national credit act

4.8 Direct and motivate workers to work efficiently H dues

4.9 Is protecting the consumer and credit provider I debtors

4.10 Finding out what consumer really want J primary sector

[20]

TOTAL SECTION A: 60
Economic and Management Science/Gr.9 7 NWPA/November 2016

SECTION B

QUESTION 5

Read the following case study and answer the question that follows.
Shoprite strikers back at work

About 300 Malawian employees of the South African supermarket chain Shoprite
Training Limited have returned to work after their two-week strike failed to win any
concession from the company.
The workers, who were striking in support of their demand for better wages,
suspended the strike after the company advertised in the local press for workers to
replace them.
The workers, who claim they are paid as little K400 (about R23) a week, were
demanding a 400 per cent wage increase, having rejected the 12 per cent wage
increase offered by the Shoprite management. The strikers also demanded the
removal of Shoprite general manager Sven Eckoff and called for better working
conditions.
The general public was sympathetic to the strike. One consumer, Jonathan
Kazembe, commented: “You do not expect these workers to remain silent when
they are given very little pay. Shoprite deserve this.”
Most of the workers have to walk home at night after work, as they cannot afford
transport. Those with money wait for local minibuses to take them back to their
homes, some five or six kilometres away. A 32-year-old woman worker, said
management was to be blamed for the strike because it “never wanted to listen to
the workers’ grievances”.
Shoprite management approached the high court for an order to stop the strike,
which began on 29 October. The order was granted and the company also issued
an ultimatum to the workers to resume work or lose their jobs. They ignored the
ultimatum and were dismissed. The strikers obtained an order from the high court,
reinstating them.
When Shoprite advertised in the local press last weekend for workers to replace
strikers, hundreds of Malawians applied.

Source: Adapted from: Mail & Guardian 12 November 2004

5.1 In which African country did the strike take place? (1)

5.2 Which company were the workers from? (1)

5.3 How many workers were striking and why? (2)

5.4 How much bigger were the salaries that the workers wanted, compared
to Shoprite was prepared to pay. (2)
Economic and Management Science/Gr.9 8 NWPA/November 2016

5.5 What were the Malawian government and the general public’s opinion
about the situation? Motivate your answer with the quote from the text. (2)

5.6 What did Shoprite do when the workers were allowed to strike? (2)

5.7 What did the strikers do? Give reasons for your answer. (2)
[12]

QUESTION 6

6.1 Explain the following concepts.

a. Economic problem (2)

b. Trade union (2)

6.2 Use the words below to show the flow of money, factors of production
and goods and services between consumers and producers.

households business factor market goods market

factors of production goods and services

(8)

6.3 Explain how the producers and consumers interact in the market. (6)
[18]

QUESTION 7

Choose the correct alternative in brackets

7.1 The demand curve has a (positive/negative) slope. (2)

7.2 An increase in the quantity demanded at every price level is indicated

by a shift of the demand curve to the (right/left). (2)

7.3 The quantity supplied (increases/decreases) as the price of a good or

services increases. (2)

7.4 The supply curve has a (negative/positive) slope. (2)

7.5 Law of demand states that “When price high demand is (high/low)” (2)
[10]

TOTAL SECTION B: 40
Economic and Management Science/Gr.9 9 NWPA/November 2016
SECTION C

QUESTION 8

Use the transaction below to prepare the following journals for Star Supermarket
for the month of May 2015:

1. Cash Receipts Journal (5)

2. Cash Payment Journal (2)

3. Debtors Journal (4)

4. Creditors Journal (5)

5. Debtors Allowance Journal (2)

6. Creditors Allowance Journal (2)

The business applies a mark-up of 25% to all its products.

5 Sold goods on credit to R. Deli for R4 500.

12 Cash takings at the till amounted to R6 000 for goods sold.

15 Purchased stock on credit from Western Wholesalers, R7 500.

16 Sold goods on credit to C. Hotels for R5 000.

18 R. Deli returned goods wrongly supplied with a cost price of R600.

Credit note 402 was issued.

20 A debtor, C. Plaza, paid R2 000 in settlement of their account.

21 Purchased stationery for R1 500 and a new printer costing R4 000 from Top
Suppliers on account.

25 Paid R6 500 to Western Wholesaler in part payment of their account. Cheque

569 was used.

28 Returned stock bought from Cloverleaf Dairies for R500 as it was past its sell
by date. Debit note 001 was received.
Economic and Management Science/Gr.9 10 NWPA/November 2016
QUESTION 9

9.1 For the following accounts, indicate whether the General Ledger account
would be a Debit or a Credit.

Bank overdraft; Trading Stock; Debtors Allowances; Creditors Control;

Wages paid; Discount received; Cost of Sales; Loan from Shareholder. (8)

9.2 Analyse the transaction below to show the effect on the Accounting Equation

9.2.1 Stock purchased on credit for R5 000.

9.2.2 Cash sales of R7 500. A mark-up of 50% was applied.

(12)
[20]

QUESTION 10

Fill in the missing amounts

Cost Price Selling Price Mark-up %

R2 500 10.1._______ 33.3%
10.2._______ R3 000 50%
R5 500 10.3._______ 100%
R6 000 10.4._______ 20%
10.5._______ R7 500 150%
(10)
Economic and Management Science/Gr.9 11 NWPA/November 2016

QUESTION 11

Use the Totals below to prepare the General Ledger of Rainbow Store for the
following accounts.

1. Bank (4)
2. Trading Stock (4)
3. Cost of Sales (1)
4. Rent Income (1)

Totals in the Cash Receipts Journal: June 2.15

Bank Debtors Sales Cost of
Control Sales Amount Details
59 305 20 670 17 276 12 340 7 750 Rent income

Totals in the Cash Payment Journal: June 2.15

Bank Trading Wages Stationery
Stock Amount Details
45 696 28 670 8 500 850 6 785 Equipment
(10)

TOTAL SECTION C: 60
Economic and Management Science/Gr.9 12 NWPA/November 2016

SECTION D

QUESTION 12

12.1 Give two reasons why a business might need to prepare a formal
business plan. (2)

12.2 Name six essential components that a business plan should have. (6)

12.3 Name 4 P’s of marketing mix. (4)

12.4 Describe three issues that the financial plan addresses. (6)

[18]

QUESTION 13

13.1 Name eight business function that are performed in the process of
running a business. (8)

13.2 Give four examples of how the secondary sector depends on the
primary sector. (8)

13.3 Name and explain three levels management (6)

[22]

TOTAL SECTION D: 40

GRAND TOTAL: 200