Documente Academic
Documente Profesional
Documente Cultură
people need certain goods & services , a process of production, ex change of goods and consumption was started.
consumer and producer forced to make choices about what to consume and what to produce
1.1.4.1 Production
- What needs to be produced - the consumer wants the specific producer's product and is prepared to pay for it.
- How to produce - materials limited, careful choices to production techniques, production process be efficient, economical
- For whom to produce - usually directed at a specific area of the consumer market
- SA economic system has elements of command economy: enterprises directly or indirectly owned by state (Iscor, Telkom,
SABC), certain prices are fixed, government interfere in free movement of production factors through influx control and job
reservation
- SA = market-oriented mixed economic syste: people free to decide what they want to do, obey certain rules and laws, private
ownership and initiative important, state plays an important role
- State inteference: combating production of harmful goods, control monopolistic tendecies, ensure health and safety
1.3.2 Inflation
indicate a drop in the buying pow er of money as a result of a general rise in prices of goods and services.
In simple terms, inflation is an increase in prices over a period of time
H ere are a few facts regarding the present and future w orld of w ork in South Africa:
enormously oversupplied basic labour market
serious shortage at the upper end of the labour market.
Unemployment is one of the w orst problems
Compulsory payments to the government and most important source of government income
Classified into tw o main categories:
- Direct taxation: Personal taxation is the most important form of direct tax ation. Personal taxes paid on the taxable.
Progressive personal tax system in SA - higher incomes contribute higher percentages
- Indirect taxation: Value-added tax (V AT) , customs and ex cise duties are the most important forms of indirect tax ation. After
personal taxation, V AT is the government' s largest source of income.
-
1.4.2 Fiscal policy and the budget
- a policy regarding the level and composition of government spending and tax ation, w hich is know n as the fiscal policy. Fiscal
refers to the government' s financial activities.
- government' s financial policy is called fiscal policy
- Most important fiscal policy instrument is the budget.
- fiscal policy is government attempt to influence the economy by changing the expenditure and/or the taxation in order to limit
unemployment or inflation to a minimum and to promote economic grow th.
government believes free-market system has greatest economic and personal adv.
Leads to economic developmetn and growth – higher standard of living
Government contributes to healthy labour relaions by instituting the following collective bargaining bodies
o Industrial councils – permanent statutory institution that aim at maintaining healthy labour relations between employers and
employees
o Industrial court – settlement of labour disputes with the aim of preserving industrial peace
Before a sales agreement is binding on the seller and the buyer, they have to agree on the follow ing:
o The article ( item )
o The price to be paid.
goods bought to be transported and a freight rate is charged. buyer and seller should agree if freight rate should be included in the
price. Following quotations of prices in sales contracts:
o . Local price. This price does not include transport costs. The buyer has to pay the transport costs.
o . Free on rail ( F O R ) . The seller pays the transport costs to the seller' s station.
o . Rail charges paid. The price includes the rail charges, w hich the seller pays.
2.3.5.1 Profit
entitled to compensation when he or she delivers a service.
an article sold at a higher price than what it was bought for, the difference is the profit.
Retailer is entitled to a profit because he or she renders a service.
2.3.5.2 Retailers
(a) T he general d ealer
o in every town or suburb
o order a large variety of goods from wholesalers and sell them to consumers.
2.4 Productivity
o relation between real output (volume of goods and services produced) and amount of input used to produce output
o also described: average amount or number of products that every labourer produces per hour.
o If the output increases while the input remains unchanged, it leads to increased productivity.
2.5.1 Money
means w hereby human needs are satisfied / known as a means of payment
A good currency (medium of ex change) should comply w ith a number of requirements. A currency should be:
o Generally accepted o Easy to recognise
o Durable o Stable
o Easy to handle o Scarcity
o Homogenous, easy to handle, easy to divide up
2.5.2.1 Cheques
o Written instruction by cheque account holder, ordering bank to pay money to specified person / bearer of cheque
2.5.3 A budget
makes you aw are of how much money you have and w here it goes.
It can help you save and make your money grow to achieve your goals.
2.5.4 Savings
ways to fight inflation:
The simplest w ay (though not the best
savings account w ith a bank or building society. Earns interest and grows.
The amount of interest that your money earns depends on a number of factors:
o The amount of money that you save
o Length of time you save your money.
o Bank or building society you choose
o Interest is taxable
Interest is what makes your money grow
the money that banks pays us for saving with them is called interest
2.5.6 Credit
Open an account, given certain amount of credit - you can buy up to this limit.
buy something w ithout paying the full price all at once.
agrees to pay off a certain amount every month over a period of time
2.5.7 Investment
People invest their money by buying shares in businesses and, in return, they ex pect to receive part of the profits made by those
businesses.
Money invested in shares grows in two ways:
o pays out a part of its profits to people w ho ow n shares in the business – its’ shareholders
o If business is grow ing and making good profits more and more people w ill w ant to buy its shares. This increases the value of
the shares.
Study Unit 3
Entrepreneurship
3.1 What is entrepreneurship?
entrepreneur: owner of a business enterprise who, by risk and initiative, attempts to make profits.
Is someone w ho
o . recognises opportunities
o . dares to grasp the opportunities
o . is able to handle the opportunities
Bow ler (1996:5): business owner can be called an entrepreneur only when at least one of the follow ing five innovations is evident in
his or her business:
o new or improved product/service is introduced.
o new production or marketing method is used.
o An existing product/service is introduced to a group of customers w ho have never used the product before.
o new source of supply of raw materials or other components is used.
o new type of business is created.
Curriculum 2005 is the “new” schooling curriculum in South Africa. Focus is to help learners to achieve outcomes
new approach to teaching and learning concentrates:
o understanding know ledge
o skills
o values, norms and attitude
New approach = O utcomes Based Education (OBE)
Intends to enable learners to ex perience learning in a holistic w ay
E ntrepreneurship falls w ithin the learning area of Economic and Management Sciences