CONSUMER STUDIES
GRADE 12
NOVEMBER 2019
MEMORANDUM
NATIONAL SENIOR CERTIFICATE

QUESTION 1: SHORT QUESTIONS
1.1
1.1.1 C✓Remembering, easy (Focus, p.182; Successful, p.201-203)(1)
1.1.2 B✓Remembering, easy (Focus, p.180; Successful, p.196)(1)
1.1.3 A✓Applying, moderate (Focus, p.166; Successful, p.184)(1)
1.1.4 C✓Remembering, easy (Focus, p.71; Successful, p.78)(1)
1.1.5 A✓Remembering, easy (Focus, p.95; Successful, p.112-113)(1)
1.1.6 B✓Analysing, moderate (Focus, p.73-74; Successful, p.83-84)(1)
1.1.7 C✓Understanding, moderate (Focus, p.71; Successful, p.77)(1)
1.1.8 D✓Understanding, moderate (Focus, p.140; Successful, p.159)(1)
1.1.9 B✓Understanding, easy (Grade 11)(1)
1.1.10 A✓Understanding, easy (Grade 11)(1)
1.1.11 B✓Understanding, easy (Focus, p. 49; Successful, p.51)(1)
1.1.12 B✓Understanding, easy (Focus, p. 53; Successful, p.57)(1)
1.1.13 D✓Remembering, easy (Focus, p.125; Successful, p.146)(1)
1.1.14 A✓Understanding, moderate (Focus, p.130; Successful, p.148,49)(1)
1.1.15 D✓Understanding, moderate (Focus, p.97; Successful, p.117)(1)
1.1.16 C✓Applying, moderate (Focus, p.36-37; Successful, p.38-39)(1)
1.1.17 C✓Applying, moderate (Focus, p.36-37; Successful, p.38-39)(1)
1.2
1.2.1 D✓
1.2.2 C✓
1.2.3 F✓
1.2.4 G✓
1.2.5 A✓
Understanding, moderate (Focus p.163-165; Successful p.180-182)
1.3 A✓
E✓
NOTE: minus (1) mark if the words are written.
(Any order) (2)
Understanding, moderate (CAPS p.32)
1.4
1.4.1 F✓
1.4.2 B✓
1.4.3 G✓
1.4.4 E✓
1.4.5 C✓
Remembering, moderate (Focus p.95; Successful p.113-114)
1.5 C✓
D✓
F✓
G✓
H✓ (Any order)
Remembering, easy (Focus, p.120; Successful, p.139) (5)
1.6
1.6.1 (Product) specifications✓ (Focus p.16; Successful p.21)
1 6.2 Consumer/ Customer appeal / packaging ✓ (Focus p.13; Successful p.20)
1.6.3 Sustainable (production)/ sustainability ✓ (Focus p.26; Successful p.26)
1.6.4 Start-up/ pre-operational costs✓ (Focus p.35; Successful p.18)
1.6.5 Customer relations/ care/ service/ consumer rights✓ (Focus p.24; Successful p.25)
1.6.6 Overhead costs/ Operational/ running costs✓(Focus p.37; Successful p.41)
Understanding, difficult
Note: Do not accept examples
(6)
[40]

QUESTION 2: THE CONSUMER
2.1
2.1.1 Name TWO forms of renewable sources of energy.

  • Solar power/ solar energy/ sun✓
  • Wind power/ turbines energy✓
  • Hydro power/ hydro energy/ water✓
  • Bio/ wood/ dung/ vegetable matter energy✓ (Any 2) (2)

Remembering, easy (Focus, p.170-171; Successful, p.191-192)
2.1.2 State THREE advantages of using renewable sources of energy for the natural environment.

  • Less air pollution/ cleaner air/ no acid rain/ no sulphur dioxide/ no carbon dioxide gases/ less smoke/ fog.✓
  • Less water pollution/ underground water pollution.✓
  • Reduced/ no noise pollution.✓
  • Reduced need for fossil fuels/ coal/ energy✓
  • Reduced soil pollution/ no land disruption/ digging for coal✓
  • No habitat loss/ no animals will be displaced/ no plants harmed / fauna and flora not affected.✓
  • Will not harm the environment /environmentally friendly/ clean environment. ✓
    If only ‘less pollution’ is given, a mark can be allocated for tick 1/2/3 (Any 3) (3)

Understanding, moderate (Focus, p.170-171; Successful, p.191-192)
2.2 Define the terms below:

  1. Guarantee
    • The assurance✓ that the product will remain in working order✓ for a particular length of time.✓ (Any 2)
      OR
    • It is a promise from the manufacturer✓ that they will sort out any problems with the product✓ within the specific fixed period of time.✓ (Any 2)
      OR
    • A promise in writing✓ that the quality/ durability of a product/ service will meet certain standards✓ and that if the product/ service does not satisfy the terms of the guarantee, the money paid will be returned/ reimbursed.✓
      (Any 2) (2)
      Understanding, moderate (Focus, p.158; Successful, p.175)
  2. Exemption clause
    An exemption clause exonerates/ clears a party for any liability✓ should he/ she fails to honour the agreement/ when the agreed product does not serve the purpose for which it was acquired/ purchased.✓ (2)
    Understanding, moderate (Focus, p.156; Successful, p.173)

2.3 Read the scenario below and identify the exemption clause that was stipulated in the contract.
No return policy.✓ (1)
Understanding, moderate (Focus, p.156; Successful, p.173)
2.4
2.4.1 Explain the effects that the minimum wage will have on inflation.

  • As the cost of labour increases,✓ the wage bill/ employer’s wage cost will increase.✓
  • It will cause an increase in inflation✓ as the price of goods and services will increase/ consumers will pay more✓ (4)
    Applying, moderate (Focus, p.167-168; Successful, p.184-185)

2.4.2 Predict the effects that the minimum wage will have on the finances of South African households.

  • As the cost of labour increases✓ many employers may not be able to employ the same number of employees✓ and many people could end up being unemployed.✓
  • More unemployment will put more strain on the economy/ household finances/ families will become poorer✓and will in turn slow down economic growth.✓
  • Unemployed people in households will rely more on unemployment facilities/ UIF/ social assistance social grants.✓
  • Unemployed people in households will not be able to buy goods and services.✓
  • People who are unemployed cannot save money/ households cannot save money.✓
  • The lower level wage earner does not pay income tax.✓
  • Employer may reduce the working hours to pay the same wages for fewer hours which will not affect or change the finances of the household.✓
  • People who earned less than minimum wage will now earn more/ households will now have more money.✓ Poverty will be reduced.✓
  • People/ households will have more buying power and can now buy food for survival/ meet basic needs✓ and will have better living conditions✓ once they earn the minimum wage.
    (Any 6) (6)

Analysing, difficult (Focus, p.167-168; Successful, p.184-185)
[20]

QUESTION 3: FOOD AND NUTRITION
3.1 Define the term food security.
Food security is the ability of individuals to obtain sufficient/ enough food✓ on a daily basis.✓
OR
Food security means getting enough/ adequate✓ food that is safe.✓
OR
Access to safe✓ nutritious food to maintain a healthy active life✓ (2)
Remembering, easy (Focus, p.106; Successful, p.128)
3.2 Name the eating disorder characterised by eating large amounts of food or binge eating followed by self-induced vomiting.
Bulimia (nervosa)✓ (1)
Remembering, easy (Focus, p.82; Successful, p.95)
3.3
3.3.1 Identify the enzyme that is added to the milk.
Lactase✓ (1)
Remembering, easy (Focus, p.79; Successful, p.93)
3.3.2 Explain the advantage of adding the enzyme to the milk for a person suffering from lactose intolerance.
The person will not suffer from the side effects✓ of lactose intolerance anymore because the (enzyme) lactase will help to breakdown/ digest✓ the lactose to glucose/ galactose✓ which are then absorbed into the bloodstream.✓ ( Any 2) (2)
Remembering, moderate (Focus, p.79; Successful, p.93)
3.3.3 Explain the reason why Nolac milk is suitable for a person with osteoporosis.

  • (Nolac milk contains calcium which) strengthens the bones/ increase bone density.✓
  • (It contains vitamin D which) helps with the absorption of calcium.✓(2)

Remembering, easy (Focus, p.76; Successful, p.90)
NOTE: No marks for naming the nutrients as they are stated in the question.
3.3.4 State if Nolac milk is suitable for a person with milk allergies.
Motivate your answer.

  • Nolac milk is not suitable.✓(1)
  • Nolac milk contains protein/ an allergen in milk.✓
    If consumed, the body will wrongfully think that the protein is harmful✓ and the immune system will react✓ against the protein by building up antibodies.✓ (Any 2)(2)

Understanding, moderate (Focus, p.76; Successful, p.91-92)
3.4 Recommend, with reasons, FOUR dietary guidelines for the management of obesity.

  • Eat more foods high in fibre.✓This will fill you up/ delay the feeling of hunger✓ so that you will eat less.✓
  • Eat at least three meals a day/ do not skip breakfast.✓Skipping meals can lead to over eating later in the day.✓ Skipping breakfast slows down metabolism.✓
  • Reduce the intake of fat/ eat lean meat/ fish/ chicken✓as this will reduce the total energy intake✓ and contribute to weight loss.
  • Grill/ bake/ steam food✓ as frying adds more energy/ kilojoules✓that could be stored as adipose fat.✓
  • Eat low GI food✓ as this will help with blood glucose control✓ and delay the feeling of hunger.✓
  • Increase the intake of pulses✓ as they are filling✓ and low in fat.✓ This will reduce overeating.✓
  • Snack on healthy foods/ choosing less junk/ fewer sweets in between meals✓ this will reduce the total kJ intake.✓
  • Drink lots of (clean) water✓ will make them feel fuller✓ so that they will eat less.✓
  • Eating at least 5 serving/ plenty of fruit and vegetables per day✓ as they are rich in fibre✓ and will reduce hunger✓ Therefore they will eat less.✓
  • Reduce alcohol intake✓ as it is high in energy/ kilojoule value.✓
  • Eat small amounts/ portions of food✓ as this will reduce the total energy intake ✓ and contributes to weight loss. (Any 4 x 2)(8)

Understanding, moderate (Focus, p.83; Successful, p.97-98)
NOTE: Not exercise or active lifestyle as it is about dietary guidelines.
3.5
3.5.1 Name TWO symptoms that the flood victims may have shown.

  • Jaundice/ (yellow skin/ eyes) ✓
  • Fever/ sweats✓
  • Fatigue/ tiredness✓
  • Loss of appetite✓
  • Diarrhoea/ running stomach✓
  • Nausea✓
  • Dark urine✓
  • Clay-coloured stools/ faeces✓
  • Vomiting✓
  • Joint pains✓
  • Abdominal pains✓
  • Discomfort around the liver area.✓ (Any 2) (2)
    Remembering, easy (Focus, p.89; Successful, p.103)

3.5.2 Give a reason why the symptoms only appeared after they returned home.
The incubation period of Hepatitis A is 15 to 50 days/ with an average of 28 days/ 3-5 weeks after infection✓
OR
It takes a while for the symptoms to show/ be evident.✓(1)
Understanding, moderate (Focus, p.89; Successful, p.103)
3.5.3 Write a paragraph explaining how the disease could spread so easily amongst the flood victims.
They shared toilets/ ablution/ washing facilities/ eating utensils/ poor sanitation/ lack of personal hygiene.✓If people have not been vaccinated/ unvaccinated people✓ are susceptible/ vulnerable so they contract hepatitis A easily.✓ People housed in close contact easily infect each other/ spread from person to person/ people in confined spaces.✓ There was no/ not enough
running/ clean water for personal hygiene/ washing themselves✓
There was no/ not enough running/ clean water for washing eating utensils.✓ Prepared food could have been prepared by infected people who did not wash their hands after visiting the toilet.✓ Available food/ water could have been contaminated.✓
(Any 4) (4)
Applying, moderate (Focus, p.89; Successful, p.103)
NOTE: Deduct ONE mark if not written in paragraph format.
3.6
3.6.1 Discuss why it is not likely that Colin will suffer from anaemia.

  • The chicken/ lean meat/ fish/ leafy vegetables/ prunes/ whole wheat products provides enough iron✓ to build red blood cells/ haemoglobin in the red blood cells✓to carry oxygen to the body cells.✓
  • The chicken/ lean meat/ fish are rich in vitamin B12✓ which is necessary for the formation of red blood cells.✓
  • The dark green leafy vegetables/ whole grain products provide folic acid✓ that assist in the formation of red blood cells.✓
  • The orange/ berry juice contains vitamin C✓ which helps with the absorption of iron.✓
  • The iron will be absorbed well✓ in the body as he does not drink coffee✓ (Any 3 x 2) (6)

Applying, moderate (Focus, p.76; Successful p.90-91)
NOTE: If only the correct nutrients are mentioned, and there is no discussion NO mark should be awarded.
3.6.2 Propose, with reasons, why Colin is not at risk of developing diabetes.

  • Colin eats a low-fat diet✓(skinless chicken/ lean meat/ fish/ dairy products) that helps to control body weight✓ and this helps with the management of the blood-glucose levels✓
  • The fresh green leafy vegetables/ whole grain products/ prunes are rich in fibre✓digests slowly/ gradually✓ and will prevent large fluctuations in the blood-glucose levels.✓
  • The unsweetened dairy products/ unsweetened pure orange juice/ berry juice/ salad is low in sugar✓ and may be low in GI✓ that will prevent a rapid increase of blood-glucose level✓ and will prevent the pancreas from producing too much insulin.✓
  • He runs10 km daily/ exercises✓ which helps to burn the kilojoules he consumes✓ and reduces the blood-glucose levels/ helps with the functioning of insulin✓
    (Any 8) (8)

Analysing, moderate (4); Analysing, difficult (4) (Focus, p.72-73; Successful p.80-83)
[40]

QUESTION 4: CLOTHING
4.1 Give TWO examples of eco-friendly fabrics.

  • Hemp✓
  • Bamboo✓
  • Soya fabric✓
  • Organic✓ cotton
  • Flax/ linen✓
  • lyocell ✓
  • Silk✓
  • (Angora) mohair✓
  • Alpaca wool✓
  • Wool✓ (Any 2) (2)
    Remembering, easy (Focus, p.62; Successful, p.67)

4.2
4.2.1 Define the term fashion trend.
Fashion trend is the direction fashion/ style/ silhouette moves in.✓ (1)
Remembering, easy (Focus, p.49; Successful, p.51)
4.2.2 Give THREE reasons why denim jeans can be regarded as a classic fashion.

  • The denim jeans remain popular for a long time/ period/ over many seasons/ years/ timeless.✓
  • They are accepted by a large group of people/ different age groups/ they are tasteful/ suitable for most people.✓
  • Almost everyone looks good in jeans.✓
  • They are characterized by simplicity/ simple lines.✓
  • Now and then denim jeans have a subtle change in the style/ silhouette/ outline✓ (Any 3)(3)
    Understanding, moderate (Focus, p.49; Successful, p.51)

4.2.3 Identify TWO years (eras) when denim jeans were a retrospective fashion of the 1960s.

  • 1970/ flared✓
  • 1995/ boot cut/leg✓
  • 2005/ embellished✓ (Any 2) (2)
    Understanding, easy (Focus, p.51; Successful, p.53)

4.2.4 The denim jeans of 2019 is an example of a fashion revival from a previous year. Name the year.
1950✓(1)
Understanding, easy (Focus, p.51; Successful, p.53)
4.2.5 Discuss how technological factors have brought about changes in the textile and trends of denim jeans.

  • It led to better textiles/ fabrics✓ and creation of stretch fabrics for denim/ skinny jean.✓
  • Better computerised patterns✓ led to the creation of more/ new/ different styles and features✓
  • Improved machines✓ make mass production ✓possible to cope with new trends
  • Improved dyeing and colourfast processes✓/ acid wash✓ increased variety/ range of colours available.✓
  • Better sewing/ embroidery machines✓ allowed for embroidery on the denim.✓
  • Denim jeans can be decorated with studs/ beads✓ using embellishment machines.✓
  • Ripped jeans became fashionable✓ as a result of technological developments as machines are ripping the jeans✓ after the jeans have been manufactured.
    (Any 3 x 2) (6)
    Applying, difficult (Focus, p.51; Successful, p.54)

4.3
4.3.1 Identify the practice that the retail giant was found guilty of.
Counterfeiting✓(1)
Understanding, moderate (Focus, p.64-65; Successful, p.72)
4.3.2 Predict the impact that the retail giant could have had on the original business.

  • The original owner/ business will lose income/ loss of sales/ customers/ profit ✓as the market will be flooded with a similar product that is cheaper than the original product.✓
  • The image and reputation of the owner/ business could be tarnished✓ as it is not exclusive anymore✓ as there is a cheaper version available✓
  • Consumers may lose faith in the original product✓
  • The owner/ business will miss opportunities to expand✓ will be lost due to the retail giant flooding the market with cheap copies.✓ (Any 4) (4)
    Evaluating, difficult (Focus, p.64; Successful, p.72)

[20]

QUESTION 5: HOUSING AND INTRIOR
5.1
5.1.1 Name the type of housing ownership where a levy is paid each month.
Sectional –title ownership✓ (1)
Remembering, easy (Focus, p.122; Successful, p.140)
5.1.2 State to whom the levy is paid.
The body corporate.✓ (1)
Remembering, easy (Focus, p.122; Successful, p.140)
5.2 Name THREE documents that will be required by a bank to grant a prospective homeowner a home loan.

  • (Certified) copy of a buyer’s South African identity document or passport✓
  • Proof of income (recent salary slips or banking statements) for the last three months/ letter from employer✓
  • Copy of offer to purchase/ Deed of sale✓
  • Proof of current residential address/ utility bill✓
  • Income tax reference number✓Fully completed and (signed) application forms✓(Any 3) (3)
  • Remembering, easy (Focus, p.129; Successful, p.147)

5.3 Define the term lease.
A lease is a contract/ agreement ✓between a property owner/ landlord/lessee and the tenant/ lessor.✓(2)
Remembering, easy (Focus, p.118; Successful, p.137)
5.4 Refer to the information above and discuss THREE benefits of renting property and THREE benefits of buying property.
Benefits of renting:

  • With so many units being empty, rent can be negotiated.✓
  • Will not be difficult✓ to find property to rent as many places are available.✓
  • Renting is a more affordable option than before✓ while you are saving/ waiting to buy/ build.✓
  • A ready furnished property/ unit/ apartment/ flat can be rented✓and it will be more affordable than buying furniture as well as paying a bond✓ (Any 3)

Benefits of buying:

  • It is cheaper✓ to buy now than a year ago.
  • Selling prices can be negotiated✓ as sellers are not selling property easily.
  • Transfer cost/ bond registration costs will be lower✓ if property prices are lower.
  • Buying property at a lower price✓ is a sound investment✓as the value will increase over time✓
  • Larger variety of houses to choose from✓
    (Any 3) (6)
    Understanding, moderate (Focus p.117-122: Successful p.137-140)

NOTE: General advantages and disadvantages of renting/buying must not be included.
5.5
5.5.1 Name FOUR universal design features that can be found on freezers.

  • Reversible doors✓
  • Automatic door closing function✓
  • Height- adjustable racks/ different size compartments✓
  • Easy to clean interior✓
  • Glass shelves with anti-spill trim✓
  • Drawers with rollers that are easy to remove/ pull out drawers/ baskets that are easy to remove✓
  • Temperature control✓
  • Warning/ alarm to close the door when it is open✓
  • No frost system/ auto defrosts✓
  • A light goes on when the door is opened✓
    (Any 4) (4)

Remembering, easy (Focus, p.137; Successful, p.159)
5.5.2 State the advantages of a freezer that has a no-frost option.
No-frost option saves electricity✓ time✓ and human energy✓ as you do not have to defrost the freezer/ easy to clean.✓ (2)
Understanding, moderate (Focus, p.145; Successful, p.159)
5.5.3 Give THREE reasons why buying a freezer for cash will be the cheapest option.

  • Deposit is not required.✓
  • No administration fees payable.✓
  • No insurance fees payable.✓
  • A cash discount can be asked for/ negotiated4 therefore the freezer can become cheaper than the original price.✓
  • No interest is paid✓ (Any 3) (3)
    Understanding, easy (Focus, p.148; Successful, p.162)

5.5.4 Explain the advantages of buying a freezer on an instalment sales transaction.

  • The freezer can be paid off in instalments over a period of time.✓
  • It is more affordable to pay smaller instalments over a period of time.✓
  • A broken/ faulty freezer can be replaced immediately with a new one.✓
  • The freezer can be taken home while paying it off / while using it.✓
    (Any 2) (2)
    Understanding, easy (Focus, p.148; Successful, p.162)

5.5.5 Compare the upright freezer and the chest freezer below with regard to the following criteria and give a reason for EACH answer.

CRITERIA UPRIGHT FREEZER CHEST FREEZER
(a) Non-human
energy consumption
Upright freezers use more electricity.✓(1)
Reason:
More cold air escapes when the door is opened(1)
Chest freezers uses (10-25%) less electricity✓ (1)
Reason:
They are more insulated/ air does not escape when the door is opened✓(1) 
(b) Human
energy consumption
Easy to organise/ require less energy to remove items/ easier to clean/ saves time✓(1)
Reason:
Items are organized/ packed on shelves that can be removed/ accessed easily✓ (1) 
Not always easy to organise/ require more human energy to remove items / require more energy to clean/ takes more time✓(1)
Reason:
Baskets/ other items must be removed to get to frozen food at the bottom

(8)
Understanding, moderate (Focus, p.145; Successful, p.159)
NOTE: Deduct one mark if not written in table format.
5.6 Evaluate the suitability of purchasing the portable/mobile freezer above to comply with the needs of the family.

  • It can be used when they go on camping trips✓ and double up as a second freezer✓at home (multipurpose).
  • It is smaller than a standard freezer and will fit in into the townhouse.✓
  • The freezer can serve as a coffee table for TV at home (multipurpose).✓
  • Stainless-steel finishing is durable/will last longer/ will not rust✓
  • Baskets are included which makes organization of food easier.✓
  • Polyurethane insulation will ensure the appliance keeps its low temperature while being transported.✓
  • LED light is environmentally friendly/ long lasting.✓
  • LED light will ensure that food can easily be seen inside in the dark.✓
  • The lid opening alarm will warn them if the appliance is open for too long and too much cold air is lost/ when the food is taken✓
  • Can be easily transported on the trailer✓ when they go camping.
  • It is more expensive than a conventional chest freezer.✓
  • The temperature can be adjusted (-22°C to 10°C) ✓ so it can be used as a freezer or a refrigerator. ✓
  • It is easy to set the digital thermostat if the temperature is adjusted/ it is easy to read the digital thermostat.✓
  • The locks mean that the fridge can be locked while camping/ transporting✓
  • The double handles mean that the fridge/ freezer can be handled easily.✓
  • The source of energy is not indicated and therefore it is unclear that the freezer will be able to keep food for days.✓
  • The mobile freezer is not portable,✓ the size is too big✓ and it won’t fit onto the trailer.✓
  • There may not be enough storage space for the freezer in the house.✓
  • The size is too big to be used for camping✓ and also for the family of four.
  • It will consume a lot of electricity/ gas and a lot of fuel for the car that is pulling the trailer.✓
  • The price is suitable as compared it to the features and the size of the freezer.✓ (Any 7)

Conclusion:
This appliance would be suitable for this family even though it is expensive. It has many purposes.✓
OR
The freezer is not suitable for the family of 4 and camping as the size is too big✓(7)
Evaluating, difficult (Focus, p 133-137, 145; Successful, p.152-155)
NOTE: Learners can combine positives and negatives aspects
[40]

QUESTION 6: ENTREPRENEURSHIP
6.1 State TWO requirements that must be considered to ensure quality products.

  • Appropriate for the target group✓
  • Presentation of the product✓
  • Quality of raw materials✓
  • Quality and design of packaging✓
  • Quality of storing✓
  • Safety✓
  • Labelling✓ (Any 2) (2)
    Remembering, easy (Focus, p.20-24; Successful, p.24)

6.2 Explain why a quality product should have a competitive edge.

  • A competitive edge will ensure that the product has something special/ different✓ that the competition/ competing business/ product does not have and therefore it is more attractive to buy.✓
    OR
  • A product with a competitive edge will have an advantage over a similar product of the competition/ competing business/ product✓ and therefore it is more attractive to buy.✓ (Any 2) (2)
    Remembering, easy (Focus, p.13; Successful, p.11)

6.3 Give FOUR reasons why it is advisable for an entrepreneur to use locally produced products.

  • They are easy to obtain.✓
  • It stimulates the local economy/ support local businesses.✓
  • Freshly produced products will be of good quality.✓
  • It is cheaper than to purchase products from other areas.✓
  • Does not need to be transported so there is less carbon emissions/ is less pollution.✓
  • Save on transport costs.✓
    (Any 4) (4)
    Remembering, easy (Focus, p.13; Successful, p.32)

6.4 Describe the stage at which an entrepreneur should do a financial feasibility study.
A financial feasibility study should be done before a new business is
started/ bought/ before a new product is introduced✓ or before spending any money on a business idea/ business plan/ or to continue with the business or product.✓ (2)
Remembering, moderate (Focus, p.35; Successful, p.35)
6.5
6.5.1 Identify Nellie’s target market.

  • Learners✓
  • Teachers✓
  • Co-workers✓
  • Parents✓
  • People having weddings✓
  • People having funerals✓
  • Community members/ neighbours✓ (Any 3) (3)
    Understanding, easy (Focus, p.20; Successful, p.11)

6.5.2 Name the non-human resources that Nellie had to consider when she chose her product for small scale production.

  • (Availability) of start-up money/ costs✓/ she earns a salary as she is a general worker.
  • (Availability) of equipment/ stove/ gas stoves/ biscuit mixer/ a freezer.✓
  • (Availability) of raw materials/ ingredients.✓
  • (Availability) of work/ storage space (outside rooms).✓(4)
    Understanding, moderate (Focus, p.20; Successful, p.11)

6.5.3 Give TWO reasons why Nellie bought her ingredients in bulk.

  • It is cheaper.✓
  • Saves on transport costs.✓
  • Saves time as she does not have to shop often.✓
  • She has storage space.✓
  • Most ingredients have a long shelf life.✓
  • Prevents shortages/ break in production✓
  • She has large orders.✓ (Any 2) (2)
    Understanding, moderate (From the scenario)

6.5.4 Name the distribution method used by the shopping outlet where Nellie bought her ingredients.
Indirect selling/ through a middleman✓ (1)
Understanding, easy (Focus, p.29; Successful, p.32)
6.5.5 Nellie's biscuit sales were consistent during the year but were best in November.

  1. Consistent sales:
    • Consumers purchase the biscuits in all seasons/ throughout the year/ not a seasonal product.✓
    • Weddings and funerals take place throughout the year✓ and are attended by many people.✓
    • She offered a variety of biscuits.✓
      (Any 3) (3)
  2. Peaking in November:
    November is the start of the festive season✓ and people entertain more/ families visit each other✓/ some people may use biscuits as seasonal gifts✓ therefore people stock up biscuits in November.✓(3)
    Understanding, moderate (Scenario) (Focus, p.39-41; Successful, p.41-42)

6.5.6 Identify FOUR stages in Nellie's biscuit production process during which she will need to do quality control.

  • When she selects the ingredients for production/ input✓
  • During the production/ making of the biscuits/ process✓
  • The completed biscuits✓
  • The packaged product, ready for sale/ output✓ (4)
    Understanding, moderate (Focus, p.16; Successful, p.22)

6.5.7 Analyse the impact that load shedding could have had on the efficient production of Nellie's products if she did not buy a generator.

  • If there is load shedding there is no electricity✓ but she could still bake still produce the biscuits.✓
  • Nellie would have been unable to mix the biscuit dough with the electric mixer✓resulting in more effort to physically mix the biscuit dough/ more human energy consumption/ physical labour/ time consuming.✓
  • If there was no electricity the freezer would not work✓ which could lead to spoilage of raw materials/ perishable raw materials/ margarine/ milk.✓ This leads to a loss of money.✓
  • There could be stoppage in production✓while the fulltime employees still had to be paid.✓
  • They probably had to work longer hours✓ to meet the delivery times/ dates, thus had to be paid more/ overtime✓ leading to a loss of money for the business.✓
  • This could have reduced her production✓ and delayed her timeous deliveries.✓
  • This could have resulted in a loss of orders✓ thus loss of income and profit✓
  • There could be a reduced profit margin✓ with the business not breaking even.✓
  • Not meeting the best sale scenario✓ which could mean that they could make a loss.✓
    (Any 5 x 2) (10)
    Analysing, difficult (Focus p.15; Successful p.21)

[40]
GRAND TOTAL: 200

Last modified on Tuesday, 15 February 2022 08:59