OTE2601
EXAM
PACK 2023
QUESTIONS WITH
ANSWERS
,Contents
page
SECTION A : ECONOMIC AND MANAGEMENT SCIENCES
ISSUES 1
1 STUDY UNIT 1: THE ECONOMY IN A SOUTH AFRICAN CONTEXT 4
Learning outcomes 4
1.1 The economic reality 4
1.1.1 Defining economics 5
1.1.2 Economic management 6
1.1.3 Participants in the economy 7
1.1.4 The economic process 7
1.2 The South African economic system 9
1.2.1 A market-oriented mixed economic system 10
1.3 Economic growth, inflation and unemployment 12
1.3.1 Economic growth 12
1.3.2 Inflation 13
1.3.3 Unemployment and the world of work 14
1.4 The government sector 18
1.4.1 Tax 19
1.4.2 Fiscal policy and South Africa’s national budget 19
1.4.3 The Reconstruction and Development Programme (RDP) 23
1.4.4 The government and politics 23
1.4.5 Trade unions and their influence in the economy 24
1.4.6 The government and the employee 27
1.5 The monetary sector and other important financial institutions that play a role
in the economy 29
1.5.1 Monetary policy 29
1.5.2 Important financial institutions/mediators 30
, OTE2601/102/0/2020
2.3.2 Buying and selling 36
2.3.3 The quality of goods 36
2.3.4 Production of goods and services 37
2.3.5 The consumer and the retailer 39
2.4 Productivity* 42
2.5 Personal financial management and planning 43
2.5.1 Money 43
2.5.2 Instruments associated with money 45
2.5.3 A budget 46
2.5.4 Savings 48
2.5. 5 Bank overdrafts 49
2.5. 6 Credit 50
2.5. 7 Investment 51
SECTION B
MANAGEMENT SCIENCES AND ENTREPRENEURSHIP 53
3 STUDY UNIT 3: ENTREPRENEURSHIP 54
Learning outcomes 54
3.1 What is entrepreneurship? 54
3.2 Entrepreneurship and the economy 56
3.2. 1 Reasons why entrepreneurs are important to the economy 57
3.3 Establishing a culture of entrepreneurship in South Africa 58
3.4 Promotion of entrepreneurship 58
3.4. 1 The national Department of Education 58
3.4. 2 Community involvement in entrepreneurship education 60
3.4. 3 Entrepreneurship at school level 61
3.5 Factors which hamper the promotion of an entrepreneurial culture 62
4 STUDY UNIT 4: THE ENTREPRENEUR AS A PERSON 65
Learning outcomes 65
4.1 The characteristics of an entrepreneur 65
4.1. 1 Qualities and personality 67
4.1. 2 Aptitudes, abilities and skills 69
4.1. 3 Interest 73
4.1. 4 Attitudes and values 76
4.1. 5 Conclusion 77
4.2 Self-knowledge and entrepreneurship 79
4.2. 1 Johari’s window and self-knowledge 80
4.3 Motivation and entrepreneurship 82
4.3. 1 Intrinsic motivation 83
4.3. 2 Extrinsic motivation 83
, 5.2 Step 1: Assessing your own abilities and knowledge of business 94
5.2. 1 Formal and informal sector 94
5.2. 2 Forms of business 96
5.3 Step 2: Consider the feasibility of your business idea 109
5.3. 1 Generating business ideas 110
5.3. 2 Is your business idea feasible? 111
5.3. 3 Is your business idea viable? 111
5.3. 4 Protecting your business idea 112
5.4 Step 3: The business plan 113
5.4. 1 The cash flow plan 114
5.4. 2 The cash budget 116
5.4.3 The human resources (personnel) plan 118
5.4.4 Additional information 118
5.5 Step 4: Starting a business 118
5.5.1 Who to turn to for help when starting out 118
5.5.2 Establishing a new business 119
5.5.3 Marketing 123
5.5.4 Personnel 126
STUDY UNIT 6: FINANCIAL MANAGEMENT, MEANING AND
FUNCTIONS 128
6.1 Meaning of financial management 128
6.2 Functions of financial management 129
6.3 The concept of managerial accounting 129
6.4 Important tools and techniques used in management accounting 129
6.5 Recordkeeping in accounting for a business 132
6.6 Equipment and stationery 134
6.7 Conclusion 144
STUDY UNIT 7: ENTREPRENEURSHIP IN THE CLASSROOM 146
Learning outcomes 146
7.1 A strategy for developing entrepreneurship 146
7.2 The teacher’ s role in entrepreneurship activities and their facilitation 148
7.3 Teaching methods 150
7.3.1 Story-telling technique 150
7.3.2 Games technique 151
7.3.3 Role-play technique 152
7.3.4 Mentoring programme as a technique 153
7.3.5 Brainstorming as a technique 153
7.3.6 Group work and discussion as a technique 154
7.3.7 Case study as a technique 155
7.3.8 Active participation and experience as a technique 155
EXAM
PACK 2023
QUESTIONS WITH
ANSWERS
,Contents
page
SECTION A : ECONOMIC AND MANAGEMENT SCIENCES
ISSUES 1
1 STUDY UNIT 1: THE ECONOMY IN A SOUTH AFRICAN CONTEXT 4
Learning outcomes 4
1.1 The economic reality 4
1.1.1 Defining economics 5
1.1.2 Economic management 6
1.1.3 Participants in the economy 7
1.1.4 The economic process 7
1.2 The South African economic system 9
1.2.1 A market-oriented mixed economic system 10
1.3 Economic growth, inflation and unemployment 12
1.3.1 Economic growth 12
1.3.2 Inflation 13
1.3.3 Unemployment and the world of work 14
1.4 The government sector 18
1.4.1 Tax 19
1.4.2 Fiscal policy and South Africa’s national budget 19
1.4.3 The Reconstruction and Development Programme (RDP) 23
1.4.4 The government and politics 23
1.4.5 Trade unions and their influence in the economy 24
1.4.6 The government and the employee 27
1.5 The monetary sector and other important financial institutions that play a role
in the economy 29
1.5.1 Monetary policy 29
1.5.2 Important financial institutions/mediators 30
, OTE2601/102/0/2020
2.3.2 Buying and selling 36
2.3.3 The quality of goods 36
2.3.4 Production of goods and services 37
2.3.5 The consumer and the retailer 39
2.4 Productivity* 42
2.5 Personal financial management and planning 43
2.5.1 Money 43
2.5.2 Instruments associated with money 45
2.5.3 A budget 46
2.5.4 Savings 48
2.5. 5 Bank overdrafts 49
2.5. 6 Credit 50
2.5. 7 Investment 51
SECTION B
MANAGEMENT SCIENCES AND ENTREPRENEURSHIP 53
3 STUDY UNIT 3: ENTREPRENEURSHIP 54
Learning outcomes 54
3.1 What is entrepreneurship? 54
3.2 Entrepreneurship and the economy 56
3.2. 1 Reasons why entrepreneurs are important to the economy 57
3.3 Establishing a culture of entrepreneurship in South Africa 58
3.4 Promotion of entrepreneurship 58
3.4. 1 The national Department of Education 58
3.4. 2 Community involvement in entrepreneurship education 60
3.4. 3 Entrepreneurship at school level 61
3.5 Factors which hamper the promotion of an entrepreneurial culture 62
4 STUDY UNIT 4: THE ENTREPRENEUR AS A PERSON 65
Learning outcomes 65
4.1 The characteristics of an entrepreneur 65
4.1. 1 Qualities and personality 67
4.1. 2 Aptitudes, abilities and skills 69
4.1. 3 Interest 73
4.1. 4 Attitudes and values 76
4.1. 5 Conclusion 77
4.2 Self-knowledge and entrepreneurship 79
4.2. 1 Johari’s window and self-knowledge 80
4.3 Motivation and entrepreneurship 82
4.3. 1 Intrinsic motivation 83
4.3. 2 Extrinsic motivation 83
, 5.2 Step 1: Assessing your own abilities and knowledge of business 94
5.2. 1 Formal and informal sector 94
5.2. 2 Forms of business 96
5.3 Step 2: Consider the feasibility of your business idea 109
5.3. 1 Generating business ideas 110
5.3. 2 Is your business idea feasible? 111
5.3. 3 Is your business idea viable? 111
5.3. 4 Protecting your business idea 112
5.4 Step 3: The business plan 113
5.4. 1 The cash flow plan 114
5.4. 2 The cash budget 116
5.4.3 The human resources (personnel) plan 118
5.4.4 Additional information 118
5.5 Step 4: Starting a business 118
5.5.1 Who to turn to for help when starting out 118
5.5.2 Establishing a new business 119
5.5.3 Marketing 123
5.5.4 Personnel 126
STUDY UNIT 6: FINANCIAL MANAGEMENT, MEANING AND
FUNCTIONS 128
6.1 Meaning of financial management 128
6.2 Functions of financial management 129
6.3 The concept of managerial accounting 129
6.4 Important tools and techniques used in management accounting 129
6.5 Recordkeeping in accounting for a business 132
6.6 Equipment and stationery 134
6.7 Conclusion 144
STUDY UNIT 7: ENTREPRENEURSHIP IN THE CLASSROOM 146
Learning outcomes 146
7.1 A strategy for developing entrepreneurship 146
7.2 The teacher’ s role in entrepreneurship activities and their facilitation 148
7.3 Teaching methods 150
7.3.1 Story-telling technique 150
7.3.2 Games technique 151
7.3.3 Role-play technique 152
7.3.4 Mentoring programme as a technique 153
7.3.5 Brainstorming as a technique 153
7.3.6 Group work and discussion as a technique 154
7.3.7 Case study as a technique 155
7.3.8 Active participation and experience as a technique 155
