Centre Number Candidate Number Candidate Name

NAMIBIA SENIOR SECONDARY CERTIFICATE

BUSINESS STUDIES HIGHER LEVEL 8336/1

PAPER 1 2 hours
Marks 80 2013

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Candidates answer on the Question Paper in the spaces provided.

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Answer all questions.
 For Examiners Use

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part question. 1
The businesses mentioned in this question paper are entirely fictitious. 2

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110231

Republic of Namibia
MINISTRY OF EDUCATION

MoE/DNEA 8336/1/13 [Turn over

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La Vive Fashion

La Vive Fashion has been in business for 20 years. The partnership is owned
by Jak and Marguerite. The partnership specialises in designer clothes for
the Namibian market. Only locally produced materials are used. The partners
believe that the success of the boutique will depend heavily on women with a
high level of income and taste. Despite extensive advertising in newspapers
and magazines, sales remain disappointingly low.

The sales of La Vive over the past financial year were:

2012
September October N$120 000
November December N$135 000
2013
January February N$ 88 000
March April N$ 67 000
May June N$ 94 000
July August N$112 000

Jak and Marguerite are concerned about the survival of La Vive. They want
to improve sales by 10% in the 2012 2013 financial year and improve the
working capital of the business. A possible way is either to re-locate La Vive
in a shopping mall where there are many shoppers or to export the clothes to
the neighbouring countries such as Botswana and Angola.

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For
Examiners
1 (a)(i) Compare the objectives of La Vive with the typical objectives of a public Use
sector business.

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(ii) Define public sector.

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(b) Explain two possible drawbacks for the partners when converting La Vive
into a close corporation.

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(c) Unlike close corporations, the ordinary partnership business does not have Use
a separate legal identity. Explain two ways in which this might affect the
owners of La Vive.

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(d) E
xplain how shoppers might have an influence on the re-location decision
of La Vive.

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2(a) Why does La Vive need working capital? Use

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(b) Explain how the sources of finance available for La Vive are different to
those available for a public limited company.

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(c) In your opinion, which source of finance bank overdraft, loan or equity Use
finance, would be more appropriate for La Vive to acquire new equipment?
Justify your answer.

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(d) Distinguish between capital employed and net assets in the Balance Sheet
of La Vive.

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For
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3(a) Define marketing. Use

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(b) (i) Use the sales information provided for the 2012 2013 financial year
and plot the sales using a line graph.

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(ii) La Vive want to improve sales by 10% in the 2013 2014 financial year.
Consider how a sales forecast would be useful to La Vive in this case.

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(c) Explain why it is important for the marketing mix of La Vives designer clothes Use
to be integrated.

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(d) Identify and explain two possible reasons, other than price, why the sales
of La Vive might have fallen in the 2012 2013 financial year.

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For
Examiners
4(a) How might the workers of La Vive have benefited by specialising in the Use
production of designer clothing?

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(b) Assume that partners chose to expand their business by opening a new
branch in Botswana. Discuss the effects of barriers to international trade
on La Vive.

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(c) Consider one economic objective of the government which could have a Use
negative influence on the survival of La Vive.

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(d) Assess the likely impact on La Vive of a decision by the government to
increase interest rates.

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