OTE2601 Assignment 2 Semester 2 2023

OTE2601 Assignment 2 Semester 2 2023 answers Question 1 1.1) • An unskilled occupation which requires no training, doing basic work, such as cleaners, bus conductors and hospital porters. Training is done on the job when it is required to maintain standards and to stay on top of any changes. • A semi-skilled occupation requires a certain amount of basic training, which is normally provided by the company or the employee who’s position you are taking over, for example: factory machine operators, typist’s or waiters. Sometimes refresher courses are given to these employees depending on if they need it. • A skilled occupation is one where a few years of training and practice is necessary, for example: Jewellers, electricians, carpenters, secretaries and building supervisors. • A professional and managerial occupation normally requires a qualification from a tertiary educational institution (Degrees, diplomas, higher certificates) for example, lawyers, social workers, teachers, doctors, engineers, opticians and chemists. 1.2) Same as above. Question 2 2.1) • Fees – Used by schools or universities for study fees • Lobola – In marriage, the funds paid to the family • Salary – The money received at the end of the month by an employee for the work did during the month. • Income – Is the amount paid in (Money received) • Expense – Is the amount paid out (Money spent) • Pension – Persons who have retired receive this income monthly • Tax – Money paid over to the government monthly by an individual or business (Income tax, provisional tax) • Pocket Money or allowance – is money paid to children to use for lunch at school or to buy toys with. 2.2)  Little experience is needed as they are working with a person who is familiar with everything of which they can learn from  Less risk of failure as it is a familiar and already started up business  Consumers are more comfortable with your services or product as the brand is already established  Initial assistance and financial support is given from the person giving the right to do business  Training is provided in administrative aspects  Marketing and advertising is already established and does not need to be done from scratch  Receiving more discounts as the quantities ordered will be in bulk or big enough for discounts  Credit already available for stock purchases  Profit is easily or easier made (where income is greater than expenses) is reached more quickly 2.3.1) Grocery Stokvel - These stokvels are commonly used to purchase groceries in bulk or to help fund household expenses. Contributors collect grocery or cash coupons when buying provisions for the Stokvel parties throughout the year. These are then distributed at the end of the saving period. 2.3.2) Property Stokvel - Property stokvel’s makes property investment more accessible to those who would like to purchase a property but cannot afford it. Property investors get together and put their money together to invest in a particular property or purchase land for commercial, industrial or residential development. 2.3.3) Funeral Stokvel - Funeral stokvels are known to provide material and non-material support to families in the event of a death, These help families in the case where they cannot afford to transport the body to the rural areas where cultural traditions and customs take place. The stokvel usually includes a coffin and transportation costs of the body. Question 3 3.1) Kind of business - Some entrepreneurs are satisfied with less profit than others. This depends on the kind of business that they run, for example a grocery store is always busy and in constant demand as people need food to survive, as opposed to a clothing store where the demand is not as high. 3.2) Element of risk – There is never a guarantee as to how much profit a business will make.The profits of different industries will differ according to the degree of uncertainty which exists in every production area. In well-established industries, uncertainty is small and profits are higher. The greater the uncertainty, the greater the expectations of profit but also the expectations of loss. The element of risk is always high when new products are launched. 3.3) Competence of the entrepreneur – Profits in businesses who are dealing in the same business or industry do not normally differ much from each other. When differences do exist, they are due to the competent and efficient running of the individual businesses, which includes good organisation, optimising the use of labour and materials, keeping unit costs down. 3.4) Turnover and market size - The entrepreneur’s total profit is determined by the businesses turnover. If the market is large, a lower profit can be made on each unit. This will increase the turnover and lead to a larger total profit. A high turnover usually leads to a lowering of unit costs. 3.5) New production techniques - Strong competition and working towards maximum profits encourage entrepreneurs to develop and apply new production techniques to improve the efficiency of their businesses. Applying new and improved production techniques often results in much higher profits while businesses which continue to use outdated methods and equipment have lower profits. A business which employs the best combination of methods is likely to make more profit than a business which sticks to outdated ways.