TOM NEWBY SCHOOL EXAMINATION

Transcription

1 1 TOM NEWBY SCHOOL EXAMINATION Subject EMS Examiner Miss L Klemp/Miss B Botha Date 13 June 2017 Total marks 100 Session 1 Duration 2 Hours Grade 7 Moderator Mrs A Singh Special instructions/ Pen, Pencil, Ruler and Calculator Equipment This assessment has been compiled using notes and information contained in the Tom Newby School resource material. The marking memorandum has been compiled accordingly. While alternative responses will be given due acknowledgement, the official memorandum will be considered a priority document to ensure uniformity of marking. Name and Surname: Class: Instructions: 1. Write your name, surname and class on the front of your booklet. 2. Number questions carefully. 3. Skip a line after each answer. 4. Rule-off after each question. 5. Answer all questions on the booklet.

2 2 QUESTION 1 (15) 1. Provide the correct term for the following definitions: a) Being able to make or find everything you need to satisfy your own needs. b) To exchange goods for other goods without the use of money. c) A modern society that uses technology to produce goods for trade. d) Unlimited needs and wants, but limited resources. e) They have no records of transactions, and don t pay tax. (5) 2. Choose the correct answer by writing only the correct letter next to the number: e.g. 2 e 2.1 Tables and computers are: a) Liabilities b) Current assets c) Equipment d) Expenses 2.2 Which of the following is NOT an expense? a) Salaries b) Stationery c) Vehicles d) Water and electricity 2.3 Money received by a service enterprise for services rendered to a client. a) Current income b) Interest income c) Rent income d) Sales 2.4 Money paid to workers on a weekly basis for work done. a) Income tax b) Levies c) Salaries d) Wages 2.5 Manufacturing, businesses a) Sell their expertise, experience and skill. b) Convert raw materials into finished products. c) Buy products and resell them at a higher price. d) Provide goods and services to consumers. (5)

3 3. Match the terms in Column A with the explanation or example in Column B. Write only the correct letter next to the number e.g. 1 a 3 COLUMN A 1. Promissory note 2. Assets 3. Informal Business 4. A form of money 5. Surplus COLUMN B a) Pays taxes b) Spaza, hawker, gardener c) Agree to pay a sum of money on a particular day. d) Income is more than expenses. e) Land, building or money in bank. f) Cowry Shells. g) Expenses are more than income. QUESTION 2 (15) 1. How would a health epidemic affect a business? (2) 2. Explain the difference between a Formal and Informal business. You must give at least 2 clear differences and one example of each. (4) 3. State whether the following statements are True or False. a) The first coins were produced in Europe. b) A manufacturing business can be both formal and informal. c) Secondary needs are essential for survival. d) Businesses are producers, not consumers. e) The tertiary sector of the economy provides services. (5) 4. Explain the following terms: a) Consumers b) Re-use c) Recycle d) Economic goods (4) (5) QUESTION 3 (24) 1. Explain the term personal income. (2) 2. List two types of personal income. (2) 3. Explain the difference between fixed income and variable income. (2) 4. List 4 reasons why budgets are important. (4) 5. Provide definitions for the following terms: a) Deficit b) Liquidity c) Loss d) Savings (4) 6. Name, and give one example of the 5 types of capital. (10)

4 QUESTION 4 (29) 1. What Is a Statement of Net Worth? (2) 2. Read the case study about Portia Zulu and answer the questions below. Portia Zulu is 16 years old and stays with her grandmother. She receives an amount of R1 000 per month from her mother, who is working in the city. She also earns extra money for looking after the neighbour s children after school, helping them with their homework. These children are performing a lot better at school since they have been at Portia s after school day care. She is taking care of three children at a monthly fee of R200 per child. At the beginning of March she had R50 left from February. During March she will have the following expenses: Toiletries and make-up, R410. R15 per day for the taxi to school and back, R330. Poster paper and other stationery for a project, R60. Washing powder and soap to wash her clothes, R90. Medicine at the chemist for a nasty cold, R150. Airtime for her cell phone during the month, R80. She saw a new dress in a shop window that will be perfect for her boyfriend s party in April, but does not know if she will have enough money to buy it. If she buys the dress without proper budgeting, she might not have enough money left for transport to school every day. 4 a) Help Portia draw up a budget to see if she will have enough money to pay for a new dress. (11) b) Calculate the budget deficit or surplus. (1) c) How much money will she have left at the end of March, if you keep in mind that she had money left from February? (1) QUESTION 5 Read the case study about the Smith family to answer the question below. Prepare a Statement of Net Worth for the Smith family. (14)

5 Mr and Mrs Smith have two sons: Johan and Tom. The family often goes camping on the weekends. Mrs Smith inherited R from her aunt. In June 2017 Mr and Mrs Smith worked out what the family was worth: A house worth R ; electrical appliances worth R45 000; furniture worth R80 000; Johan has a computer and printer worth R13 400; Tom has an IPod worth R1 500; a caravan worth R and four mountain bikes worth R in total: R in their current bank account; a family car worth R , but they still owe R on the car. They also owe R on their credit card. Mr Smith earns R a month and Mrs Smith earns R Their expenses are as follows: Groceries; R12 700; water and electricity; R2 140; telephone expenses; R1 860; fuel expenses: R1 580; money to go away (twice a month): R8 000; repayment on loans: R8 400; pocket money for the boys per month: R2 000; buying clothes: R QUESTION 6 (17) Read the case study about Sophie s decision and answer the questions below: When Sophie s father passed away, she inherited R Sophie needs to make a decision. She can invest the R , earn interest on it and still work for a salary, or she can use the money as capital to start her own hairdressing business. She knows that it is hard work and stressful to have your own business. A friend told her that she could make a lot of money by opening a Spaza shop nearby a school where she can sell food and cool drinks to the children. 1. State how Sophie will get an income if she: a) Decides to invest her money at a bank. (2) b) Decides to open her own hairdressing business. (2) c) Decides to start a Spaza shop. (1) 2. Compile a list of 4 examples of what Sophie s expenses would be if she: a) Decides to open a hairdressing business. (4) b) Decides to open a Spaza shop. (4) 3. Motivate why Sophie is right when she says that it is a lot of stress and hard work to own a business. Give 2 reasons for your answer, (2) 4. What do you think would be the best decision for Sophie to make? Justify your answer with a reason. (2) TOTAL: 100 MARKS