EXAMINATIONS COUNCIL OF ESWATINI

Junior Certificate Examination

CANDIDATE
NAME

CENTRE CANDIDATE
NUMBER NUMBER

BUSINESS STUDIES 521/01

Paper 1 October/November 2021
1 hour 45 minutes

READ THESE INSTRUCTIONS FIRST

1. Write your candidate name, Centre number and candidate number on For Examiner’s use
the spaces provided.
1.
2. Answer all questions.
3. Write your answers using a dark blue or black pen in the spaces 2.
provided.
3.
4. Marks are given in [ ] at the end of each question or part
question. 4.
5. Special attention must be paid to legibility and neatness.
TOTAL
6. Name(s) of businesses/persons used in this paper are
fictitious.
7. You may use a calculator.

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This document consists of 10 printed pages and 2 blank pages.

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QUESTION 1

Musa, a sole trader, operates his business under the market economy. The business trades as
Pick-a-Toy and sells a variety of toys at affordable prices. Recently, the business has grown
through horizontal integration.
(a) Identify four reasons for horizontal integration.
Reason 1 …………………………………………………………………………………….
Reason 2 …………………………………………………………………………………….
Reason 3 ……………………………………….……………………………………………
Reason 4 …………………………………………………………………………………… [4]

(b) Explain the sector of the economy that Pick-a-Toy operates in.
Sector of the economy …………………………………………………………………….
Explanation ……………………………………………………………………………............
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(c) Explain two fundamental questions that could be addressed by Pick-A-Toy in the market
economy.

Question 1 …………………………………………………………………………………….

Explanation ……………………………………………………………………………………...
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Question 2 …………………………………………………………………………………….

Explanation ……………………………………………………………………………………...
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(d) Explain two features of the market economy that Pick-a-Toy operates under.
Feature 1 ………………………………………………………………………………………..
Explanation ……………………………………………………………………………………...
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Feature 2 ………………………………………………………………………………………...
Explanation ……………………………………………………………………………………...
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(e) Do you think Musa should continue operating Pick-a-Toy as a sole trade? Justify your
answer.
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[Total marks: 25]

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QUESTION 2

Senga Corporation (SENCO) is a public sector business which processes dairy products in
Eswatini. SENCO gets its milk supply from farmers who operate as close corporations.
(a) Identify four examples of public sector businesses in Eswatini.
Example 1 …………………………………………………………………………………….
Example 2 …………………………………………………………………………………….
Example 3 ……………………………………………………………………………............
Example 4 ……………………………………………………………………….................. [4]

(b) Explain one aim of SENCO as a public sector business.

Aim ……………………………………………………………………………………………….
Explanation ……………………………………………………………………………………...
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(c) Explain two reasons why government own businesses such as SENCO.
Reason 1 …………………………………………………………………………………….
Explanation …………………………………………………………………………………….
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Reason 2 …………………………………………………………………………………….
Explanation ……………………………………………………………………………………...
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(d) Explain two ways in which the size of Senga Corporation could be measured.
Way 1 …………………………………………………………………………………….
Explanation …………………………………………………………………………………….
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Way 2 …………………………………………………………………………………….
Explanation ……………………………………………………………………………………...
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(e) Do you think the close corporation by the farmers that supply milk is a good form of
business organisation? Justify your answer.
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[Total marks: 25]

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QUESTION 3

Khutsala Ltd is a small knitting factory located at Buhleni. The company advertised the position
of a General Manager. The company made it clear that it was looking for someone who had
good qualities of a manager. The company hired Sipho as the General Manager. The General
Manager supervises 20 workers. Sipho made it known to the workers that job rotation and job
enrichment would be considered going forward. Some workers were not happy with Sipho since
they suspected that he prefers the autocratic leadership style. The company’s workers receive
both monetary and non-monetary rewards as motivation.
(a) Identify four examples of non-monetary rewards.
Example 1 …………………………………………………………………………………….
Example 2 …………………………………………………………………………...............
Example 3 …………………………………………………………………………………….
Example 4 …………………………………………………………………………………… [4]

(b) Explain the stage of production that Khutsala Ltd is in.

Stage …………………………………………………………………………………………….
Explanation …………………………………………………………………………………….
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(c) Explain two differences between job rotation and job enrichment.
Difference 1
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Difference 2
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(d) Explain two qualities of a good manager that Sipho should possess.
Quality 1 …………………………………………………………………………………….
Explanation …………………………………………………………………………………….
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Quality 2 …………………………………………………………………………………….
Explanation …………………………………………………………………………………….
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Some workers suspect that Sipho prefers an autocratic leadership style.

(e) Do you think the autocratic leadership style is the best leadership style? Justify your
answer.
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[Total marks: 25]

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QUESTION 4

Meat King Butchery sells pork, beef, goat and chicken meat. The butchery’s revenue has
increased and the accountant has explained that the change is due to a shift in the demand
curve. The owners of Meat King Butchery now require more finance to increase production in
order to meet demand.
(a) Identify four causes of a shift in a demand curve.

Shift 1 …………………………………………………………………………………….
Shift 2 …………………………………………………………………………………….
Shift 3 …………………………………………………………………………………….
Shift 4 …………………………………………………………………………………… [4]

(b) Explain one type of demand.

Type …………………………………………………………………………………………….
Explanation………………………………………………………………………………………
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(c) Table 1 shows Meat King’s Butchery’s demand and supply of pork as of October 2021.
Table 1: Meat King’s Butchery’s demand and supply of pork as of October 2021

Price (E) Quantity Demanded (per Quantity supplied (per week)

week) (units) (units)
250 1000 3000
200 1500 2500
150 2000 2000
100 2500 1500
50 3000 1000

Draw a graph showing;

(i) Demand curve

(ii) Supply curve

(iii) Equilibrium price
(iv) Equilibrium point [4]

450

400

350

300
Price (E)

250

200

150

100

50

0 500 1000 1500 2000 2500 3000 3500 4000 4500

Qty demanded and supplied (units)

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As Meat King’s Butchery expands more finance will be required.

(d) Explain two reasons why Meat King’s Butchery would require more finance for the
expansion.
Reason 1 …………………………………………………………………………………….
Explanation………………………………………………………………………………………
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Reason 2 ………………………………………………………………………………………...
Explanation………………………………………………………………………………………
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The owners of Meat King’s Butchery want the business to sell old unused assets to raise funds
for expansion as opposed to getting a bank loan.
(e) Do you think the sale of old unused assets would be a suitable source of finance for Meat
King’s Butchery? Justify your answer.
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. [Total mark: 25]

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