ECONOMIC AND MANAGEMENT SCIENCES

ALBERTON COMMON CLUSTER PAPER

GRADE 8
___ NOVEMBER 2023
Paper 2: The Economy and Entrepreneurship
TIME: 60 MINUTES
MARKS: 50

CORRECTIONS
SECTION A: ALL TOPICS
QUESTION 1

1.1 MULTIPLE CHOICE QUESTIONS

1.1.1 A√√
1.1.2 B√√
1.1.3 C√√
1.1.4 C√√
1.1.5 D√√ [10]

1.2 MATCHING ITEMS

1.2.1 C√
1.2.2 E√
1.2.3 D√
1.2.4 A√
1.2.5 B√ [5]
SECTION A: 15 MARKS

2
SECTION B: THE ECONOMY
QUESTION 2: MARKETS

2.1 Define the term “market” (2)

A market can be defined as any place where people who buy and people
who sell,√ exchange goods and services in an economic transaction√

2.2 Briefly explain the two components of the factor market. (2)

 Those who offer their factors of production e.g. labour.√

 Those who want to buy factors of production e.g. businesses
advertising jobs in newspapers, on the internet or at an employment
agency.√

(Any relevant explanation that has to do with economic growth or shares

for 2 marks)

2.3 Differentiate between the Goods and Services Market and the Factor market.
(4)
Goods and Services Market: Any place where households and businesses
meet and negotiate about the exchange of goods and services√√

Factor Market: The market where the factors of production are being
traded√√. In the factor market people buy and sell the services of the factors
of production themselves – land capital, labour and entrepreneurship.

(Any other correct and relevant explanation, 1 difference per market for 2
marks each)

2.4 Complete the following sentence:

Stocks are traded on the FINANCIAL√√ market. (2)

2.5 Study the following picture before answering the questions:

2.5.1 Choose the correct words in brackets:

This picture is representing the (capital market / labour market√). (1)

2.5.2 Indicate the renumeration that is determined on this market. (1)

Wages or Salaries√

2.6 Explain the flow of income and spending in the markets. (3)
 This is a monetary (money) flow√
 Spending represents income:√
o Rent
o Wages and salaries
o Interest
o Profit
 Households receive the income
 They then spend it on goods and services√
 Spending of households represent the income to businesses/firms.

3
(Any 3 marks for a logical explanation of the flow of money between the
different participants)
[15]
TOTAL SECTION B: 15

4
SECTION C: ENTREPRENEURSHIP

QUESTION 3: FORMS OF OWNERSHIP

3.1.1 Identify the form of ownership in Picture 2. (2)

Sole Trader √√

3.1.2 Explain in your own words why you would classify it as this specific type of (1)
ownership.
The name of the business√

(Any other correct and relevant explanation for 1 mark)

3.2 Tabulate ONE difference between a public company and a private company.
(2)
Public Company Private Company
1 – unlimited shareholders√ 2 – unlimited shareholders √
Name ends with PTY LTD Name ends with Ltd
Can sell shares to the public to A private company is not allowed
raise capital to sell shares to the public

(Any one difference for 1 mark each. Any other correct difference
between the 2 types of companies)

3.3 List any TWO characteristics of a partnership. (2)

 There are no legal requirements in starting a partnership except the
drawing up of a partnership agreement.√
 Partners combine capital and may also borrow capital from
financial institutions.√
 Profit is shared according to the partnership agreement.
 Partners share responsibilities and they are all involved in decision
making
 Partners have unlimited liability and are jointly and severally liable
for the debts of the business
 No legal requirements regarding the name of the business.
 No legal formalities to start, only a written partnership agreement is
required.
 Partnership has no legal personality and therefore has no
continuity.
 The partnership does not pay income tax, only the partners in their
personal capacities.
 Auditing of financial statements is optional.
 Partners share responsibilities and they are all involved in decision
making.
 Diversity/Specialisation/Different skills of the partners can be used.
 There is no specific suffix to be reflected in the name of the
partnership.

5
 (Any other correct characteristic of a partnership. 2 characteristics for 1
mark each)

3.4 Explain how business can contribute to the sustainable use of natural resources. (3)
 Products need to be designed with resources use in mind √- Less
packaging or packaging that is recyclable, smaller quantities of
materials.√
 Business operations’ and factories need to use fewer resources √-
Such as water, paper, and electricity. Make sure that air conditioners,
lights and machinery are not overused.
 Businesses need to make sure that people can dispose of their
products safely or recycle them.
 Businesses should try to reduce their distances over which their
products and raw materials are transported.
 Businesses need to find ways of generating less waste.
 Businesses should employ leaders who know about sustainability
and are committed to making it work.

(Any relevant and correct explanations for 3 marks)

[10]

QUESTION 4: LEVELS AND FUNCTIONS OF MANAGEMENT

4.1 Define the term “manager”. (2)

It is a person being in charge of a project or other people that needs to be
directed to reach certain goals√√

(Any other correct and relevant definition for 2 marks)

4.2 Indicate which level of management the following people represent:

4.2.1 The CEO of The UPS Store will set the long term goals of the business. (1)
TOP MANAGEMENT√

4.2.2 The UPS Store has several supervisors. They work with small teams
and responsible for daily tasks to be carried out. (1)
LOWER MANAGEMENT√

4.3 Explain “leading” and “organizing” as part of the management tasks.

(4)
Leading: Managers direct and motivate the workers to work as efficiently
and effectively as possible.√√ OR
Lead by example in the workplace by being on time, paying attention to
details

Organizing: Managers are responsible for organising the activities in a

business.√√ OR
Organising is the process of giving tasks to different people or groups so
that goals can be achieved. OR
6
 It is the step after planning and anything that is well organised stands much
more chance of being successful.

(Any other correct and relevant explanation. 2 marks per fact)

4.4 Adopting the characteristics that make good management is a key for The UPS
store. List any TWO characteristics that is important for managers to have (2)
- Confidence √
- Self-motivated √
-Goal driven
- Hard working
- Calm
- Optimistic
- Flexible
- Team player
- Business know how
- Ability to delegate
- Ability to manage money
- Good communication skills
- Good relationship skills
- Respect for others
- Trustworthiness
- Honesty
- Patience
- Kindness
- Co-operation and collaboration

(Any other relevant and correct answer. Any 2 for 1 mark each)

[10]

TOTAL SECTION C: 20

TOTAL: 50