NATIONAL CERTIFICATE

ENTREPRENEURSHIP AND BUSINESS

MANAGEMENT N4
(Second paper)
(4090304)
24 May 2024 (X-paper)
09:30–12:00

OPEN-BOOK EXAMINATION

FIVE reference works, namely dictionaries, textbooks student files,

notes and a pocket calculator, are allowed.

This question paper consists of 7 pages and 1 answer sheet.

068Q2J2424
Copyright reserved Please turn over
(4090304) -2-

DEPARTMENT OF HIGHER EDUCATION AND TRAINING

REPUBLIC OF SOUTH AFRICA
NATIONAL CERTIFICATE
ENTREPRENEURSHIP AND BUSINESS MANAGEMENT N4
(Second paper)
TIME: 2½ HOURS
MARKS: 150

INSTRUCTIONS AND INFORMATION

1. Answer only THREE questions.

2. Read all the questions carefully.

3. Number the answers according to the numbering system used in this question paper.

4. Answer QUESTION 3.2 on the ANSWER SHEET (attached). Write your EXAMINATION
NUMBER on the answer sheet, detach it from the question paper and hand in with the
ANSWER BOOK.

5. Use only a black or blue pen.

6. Write neatly and legibly.

Copyright reserved Please turn over

(4090304) -3-

SECTION B

QUESTION 1

Read the scenario below and answer the questions.

Mkhabile (28) is an inspiration to any young person who wants to become a successful
entrepreneur. She started her catering business at Pretoria Bus Station selling Vetkoek,
Chips, Russians and Pap and Meat from a mobile kitchen.

She realised that everybody coming to the bus station liked her products and decided to
take her business to the next level by starting a well-established restaurant. However,
she did not have enough finances, adequate mentorship and other appropriate skills to
do so. She then surfed the internet and researched different funding schemes and
business mentorship. It was very challenging for Mkhabile as she had no experience of
doing it. She finally managed to pitch her idea and had it posted on different social media
platforms.

After some weeks, she was identified by NYDA (NATIONAL YOUTH DEVELOPMENT
AGENCY). They assist young inspiring entrepreneurs such as Mkhabile, with business
funding, mentoring and developing other business skills needed. Aspiring entrepreneurs
with good business ideas are encouraged to apply and submit their business plans.


[Source: www.google/images.co.za]

1.1 State FIVE roles of NYDA in helping young aspiring entrepreneurs. (5 × 2) (10)

1.2 Give a brief description of the business Mkhabile wants to start (product
description). (2 × 2) (4)

1.3 Name SIX fixed items that Mkhabile will need for the new restaurant. (6)

1.4 Name the form of data collection and sources used by Mkhabile. (2 × 2) (4)

1.5 State THREE legal requirements that Mkhabile will need to run the catering
business. (3 × 2) (6)

1.6 Name FIVE institutions where young aspiring entrepreneurs could find
assistance and financial institutions that assist young aspiring entrepreneurs.
(5 × 2)
 (10)

1.7 State FIVE qualities that MKHABILE should possess to be a successful

entrepreneur. (5 × 2) (10)
[50]

Copyright reserved Please turn over

(4090304) -4-

QUESTION 2

Study the case study and answer the questions:

Some time ago Mr John Phume could do welding and liked creating products. He then
decided to enrol for the Certificate in Welding at Letaba TVET College to develop more
skills and never looked back after the completion of his studies. He established a
business known as EXTENSIVE SECURITY and started to produce safety doors and
burglar bars.
John was staying in an area where many burglaries had been reported. Due to
socioeconomic circumstances such as an increase in unemployment (economic
environment) there was an increase in theft. He found out that customers needed
affordable, strong doors as a new phenomenon in the area was that some burglars were
able to unlock the doors in some way. Competitors had entered the market with standard
safety doors which sold for about R500 each.
John outwitted his competitors by marketing and providing a better product and service

and is now attracting many customers. At present, he is providing work for FIVE people
and is providing products for about FIFTY customers per week. He has recently secured
a new contract with NYDA.

2.1 Name and describe FIVE business skills that John should possess, referring to
the scenario, that resulted in the success of the business. (5 × 2) (10)

2.2 John wants to know how customers feel about his service. Construct an
after-sales evaluation form of FIVE questions that he can use for his business. (14)

2.3 Draw up a contract of employment between JOHN PHUME and one of his
employees in which you refer to each of the following Items:

A Definition of employer/employee in detail

B
C
D
Nature of service
Lunch and tea break
Termination of contract

E General clause (5 × 2) (10)

2.4 To be eligible for funding from the NYDA programme, a business plan is
required.
Draw up a business plan for JOHN PHUME and include the following headings:

A Competitive advantage
B Legal requirement

 C
D
Marketing plan
Appendix of supporting material (4 × 3) (12)

2.5 Name and explain the procedure that JOHN PHUME can use to protect his
business idea. (2 × 2) (4)
[50]

Copyright reserved Please turn over

(4090304) -5-

QUESTION 3

3.1 Name the types of discount indicated below. Write your answer next to

(3.1.1-3.1.6) in the ANSWER BOOK.

3.1.1. 3.1.2

3.1.3 3.1.4


3.1.5 3.1.6

[Source: www.google/images.co.za]


(6 × 2) (12)

Copyright reserved  Please turn over

(4090304) -6-

3.2 Use the following information to draw up the estimated cash-flow statement for
the next THREE months. At the end of April 2024, there was a favourable bank
balance of R9 500. Answer this question on the ANSWER SHEET (attached).
Write your EXAMINATION NUMBER on the answer sheet, detach it from the
question paper and hand it in with the ANSWER BOOK.

MONTH ESTIMATED SALES ESTIMATED PURCHASES

April R9 000 R4 000

May R6 000 R3 500

June R7 000 R4 000

July R8 500 R5 000

OTHER INFORMATION

1.

The average expenses per month are:

 Wages
 Rental
 Telephone
 Electricity
 Fuel

2. A printer was bought in May. The deposit of R2 500 was paid and monthly
payments thereafter will be R650 for the next two years.

3. 30% of all sales are on credit. Debtors usually pay 30 days later.

4. 25% of all purchases are on credit. The business usually pays 30 days


later.

5. In June the business will sell an old computer for R6 000 cash.

6. In June the business will buy an office desk. The deposit will be R850 and
the monthly instalments thereafter will be R450 for the next two years.
(28)

3.3 Design a professional cover page for Busi’s business plan. (10)
[50]


Copyright reserved Please turn over

(4090304) -7-

QUESTION 4

Study the information below and answer the questions.

You want to start a well-priced butchery that sells fresh meat and research has shown
a lot of interest for these products in the area.
[Adapted from: https://heaids.org.za/events/page]

4.1 Decide on a form of ownership for the butchery and give FOUR advantages of
the structure that you will choose. (2 + 4 × 2) (10)

4.2 Design an advertisement for your choice of butchery, adhering to the AIDA
principle. (5 × 2) (10)

4.3 State where your business will be located and give TWO reasons why you
would select the specific location. (3 × 2) (6)

4.4 Design a label for the butchery, keeping in mind the requirements for designing


an informative label. (10)

4.5 State FIVE ways in which you would get rid of slow-moving products in the
business. (5 × 2) (10)

4.6 Mention TWO security measures you will put in place for your business.


(2 × 2) (4)
[50]

TOTAL SECTION B: 150

GRAND TOTAL: 200

Copyright reserved
(4090304)

ANSWER SHEET
EXAMINATION NUMBER:

SECTION B

QUESTION 3.2

MONTH
Opening balance
MAY JUNE  JULY

Cash sales

Credit sales

Other receipts

Total cash receipts

Cash purchases

Credit purchases

Monthly payments

Total cash payments

Month-end balance

 (28)

Copyright reserved