SECTION A QUESTION 1 1.1 1.1.1 C 1.1.2 A 1.1.3 B 1.1.4 D 1.1.5 A 1.1.6 C 1.1.7 D 1.1.8 C 1.1.9 C 1.1.10 B (10 x 2) (20) 1.2 1.2.1 D 1.2.2 E 1.2.3 A 1.2.4 C 1.2.5 F (5 x 2) (10) 1.3 1.3.1 Codominance 1.3.2 Atavism 1.3.3 Cash flow 1.3.4 Price fixing 1.3.5 Budget (5 x 2) (10) 1.4 1.4.1 Variation 1.4.2 Selling 1.4.3 Seasonal 1.4.4 Balance sheet 1.4.5 Capital (5 x 1) (5) TOTAL SECTION A: 45
SECTION B QUESTION 2: AGRICULTURAL MANAGEMENT AND MARKETING 2.1 2.1.1 Condition that exists on the market at R5
Market equilibrium (1)
2.1.2 Law of supply from the table
The higher the price the higher the quantity supplied (2)
2.1.3 TWO factors that could have affected the demand of peaches
Changes in consumer preferences
Number of consumers on the market
Festive seasons
Complementary products
Availability of substitutes (Any 2 x 1) (2)
2.1.4 Line graph showing the demand of peaches
(6) 2.2 2.2.1 Caption for the diagram
Marketing chain / Agri-business chain (1)
2.2.2 Labels for A and B
A – Supply chain
B – Demand chain (2)
2.2.3 THREE marketing functions in the diagram
Transport
Storage
Processing (3)
2.2.4 TWO ways of streamlining the agri-business chain
Improving road infrastructure
Improving access to market information
Marketing collectively
Processing products close to where they are produced
Using cold storage and refrigerated trucks
Grading and standardisation of products (Any 2 x 1) (2)
2.4.2 Marketing system associated with the marketing channel
Free marketing (1)
2.4.3 Motivation for use of the channel above by the farmers
Payment is guaranteed
Seller has access to a wider market than the local one (2)
2.4.4 TWO other marketing channels available to the farmers
Internet marketing
Direct marketing
Farm gate marketing
Fresh produce marketing (Any 2 x 1) (2)
2.5 2.5.1 Definition of a business plan
It is a document that describes a business you want to start and states what its goals and objectives are. (2)
2.5.2 TWO important aspects of a business plan
Secure funding
To guide daily operations
To determine financial needs
To test the feasibility of a business idea
To allow the entrepreneur to foresee problems
To reposition/analyse the business
To gain knowledge about marketing opportunities and competitors
To ensure effective business management
Mapping out the objectives/goals of the enterprise
Provides information on the internal/external business environment
Provision of time frames (Any 2 x 1) (2)
2.5.3 ONE example of an entrepreneurial success factor
Leadership
Risk-taking
Perseverance
Motivation
Market driven (Any 1 x 1) (1)
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QUESTION 3: PRODUCTION FACTORS 3.1 3.1.1 Definition of land
An area of ground used for farming and agricultural production. (2)
3.1.2 Identification of economic functions of land shown in diagrams A and B.
A – Land provides physical space needed for production processes.
B – Land provides physical space where the farmer produces products. (2)
3.1.3 TWO economic characteristics of land as a production factor
Land is limited.
Urban development affects land availability.
The value of land appreciates over time.
Land is indestructible.
The production capacity of land varies widely.
Land is subject to the law of diminishing returns. (Any 2 x 1) (2)
3.1.4 TWO measures a farmer can take to improve the productivity of land B
Consolidation of uneconomic farming units
Use of scientific farming methods
Water management
Use of farming methods that are suited to the area (Any 2 x 1) (2)
3.2 3.2.1 Problem associated with labour described in the passage
HIV/AIDS (1)
3.2.2 TWO measures farmers can take to address the problem identified in QUESTION 3.2.1.
Awareness campaigns
Providing access to condoms
Ensuring access to treatment (STI’s) and anti-retroviral drugs through government programmes.
Nutritional schemes
Avoid multiple partners
Support groups (Any 2 x 1) (2)
3.2.3 TWO other problems associated with labour
High cost of labour
Limited education
Availability of labour
Strikes
Abuse of alcohol and drugs (Any 2 x 1) (2)
3.2.4 TWO strategies that can be used by farmers to improve labour productivity
Motivating labourers
Having the right type and number of labourers
Upskilling/training the workforce
Provision of adequate living conditions (Any 2 x 1) (2)
3.3 3.3.1 Identification of budget
Enterprise budget (1)
3.3.2 An example of a variable cost
Seed
Fertiliser and lime
Machinery fuel
Labour costs
Harvesting (Any 1 x 1) (1)
3.3.3 Justification of answer to QUESTION 3.3.2
The cost above increases with the level of production. (2)
3.3.4 Calculation of profit/loss
Profit = Income – Expenses OR = R2 100 – (R100+R700+R100+ R600+R450+R100+ R300+R200+R100) = R2 100 – R2 650 = - R550 OR Loss of R550 (3)
3.3.5 Deduction of enterprise viability
The enterprise is not viable due to the loss (2)
3.4 3.4.1 Identification of farm record
Farm inventory (1)
3.4.2 Importance of an inventory list
Allows the farm to track available assets for insurance purposes or to determine if equipment may need to be repaired
To track equipment loss to natural disasters or theft (Any 1 x 1) (1)
3.4.3 Type of capital in the document
Movable capital (1)
3.4.4 Problem associated with capital that is unique to movable capital
Depreciation (1)
3.4.5 TWO methods used to create capital
Savings
Production
Credit/grants (Any 2 x 1) (2)
3.5 3.5.1 Internal and external forces affecting the company in the passage above.
Internal force – skilled workforce / aging equipment
External force – increased competition (2)
3.5.2 Type of risk faced by the company
Market and price risk (1)
3.5.3 Explanation of how the internal and external forces lead to the risk mentioned in QUESTION 3.5.2.
Increased competition and aging equipment will result in the company’s products being more expensive than that of the competitors resulting in low sales. (2)