3

. . . . and panel beating/ therefo re

e Limited services(1 ) because they spec~alize in mechanic. and customers may take
might not take advantage of other services e.g. tyre services
their cars elsewhere(1)

2 points developed and applied 2 x 2 = 4 marks [4]

2 points listed 2 x 1 = 2 marks

(d) Evaluate whether or not a partnership was the most appropriate type of business structure
for Josa Motors. Justify your answer.

Partnership __ _::!{{.,~·;?,) c-J-i~>-;,cv.

1
,..__,Jc·~>, ..
:,11

• Partners contribui'e sdrt-up ;apital(1) which can b~;a large amount of moneyjl)
leading to possible business expansion/success as they can buy the needed
machines(spraying machines, lifting machines)(1) .-(,1,'-y :.f!s.-::t;: ~ '> ~ ,•,,-""-·i ht.,, . O
"" : ,; _ ··-· .

• Profits are shared among partners(1) unlike in sole p'roprietorship which can
demotivate the partners(1) however possibility of disputes/close of the business(1)
• Division of labour is done(1) as partners have different skills(1) which can..e.voo-att•Faet-
rnora.customeFs--te-the-bt1strress( 1)~~ ~ ~;,,.
• Partners have unlimited liability(1) unlike shareholders in a limited company as they
don't have separate legal entity( 1) which can lead to loss of confidence investors as
they might lose their personal possessions when the business is bankrupt(1)
• Better decisions can be made(1) as partners consult(1) but the process can be longer/
though there could be disagreement(1)
• AORP
3 reasons discussed and applied 3 x 3 = 9 marks
3 reasons explained arid applied 3 x 2 = 6 marks
3 reasons listed 3 x 1 = 3 marks [9]

NB: APPLICATION:/Part~er;iJohn.and·s~-;:-;h/·J-~~a-Motors-) ( :;:-/ n;_ ·': ;, :,

t , - - - ;~- - -- --- - -- - -- -- - ~- - ~- - -· ' . ~;-·

\ :/! ; '1; ,.. [Total: 19]

f "Tr I 1 ~:.2:,..··h ,N\
.r /

,~ , ,
\ •!
\ !"
j
./ r l f "'-.J ·: V;,-

..:--:1
,,i :f
f v'L-
2~i r;:::~~· s f
.l;::·

_),. /·
;) Sc,
,,rfi' \ ;--,r, d:,... ,f r: _J", ,. -' ., :"l'·L•
,'t,r V11 I t ·,:_,,

: 1: :1 t: 3 ) ............/
I t';'
 I ' 1i111 ,i l\'/ I ll ' id d,c. W ,t r 11 i , i'lr, 1·111c ,d o1 1 wll i"l 1 l1 c:! :-i l iC!\ 1(-:i l ,t:.)i.~ I , cc;l\r:::c;i'r::.,c:
l l ''.: 1 '.1 1t· l 1\ 1)
I)
bL)illl ("' / I dW (1 ~1lc1(
,. S0. L:l)i1d ,11y/U os l< rnseC1rc:l1( 'I) is tl, e use of infonn ation which has already been
c0 ll(·)ctorl/pro cossc cl rl at:J (1)

Any one method described 1 x 2 = 2 marks [2]

(b) Ex plain two possible reasons for tl1 e decline in sales for Josa IVlotors.

• Increase in tariffs( 1) mal<ing their parts expensive/lead to shortage of spare parts/

hence loss of custom ers to other repair businesses(1)
• Chang e in custom er preference(1) most customers are now buying brand new cars
/h ence red uction in th e need for repairs('!)
• Use of poor qu ality spa res/shortage of spares(1) leading to custemers returning their
cars du e to unsatisfacto ry service/hence poor reputation of Josa Motors(1 )
• Poor customer service(1) not repairing cars on time/ losing customers(1)
• Competition(1) offer better car repairing services hence customers moving to them(1)
• Poor manag ement of funds/ little working capital to repair cars/ 10 enough money for
advertising to attract customers . . ·
. .
2 reasons developed and applied= 4'marks
2 reasons listed = 2 marks [4]
(c) State two strengths of Josa Motors .

• Capital (own savings and grants) available so the business will be able to buy needed
spare pa1is and computer driven machines (1) though not enoug h
• Expertise/skill in panel beating and mechanics(1) the business will be able to provide
quality pane repair service('!)
• Good business location (Francistown) the second city in Botswana (1) hen ce a lot of
custome rs corn in g for repair service (1)

2 strength s stated = 2 m arks

[2]
 5
d) Josa Motors is considering th e advice fro m the suppliers of using one of th e followi ng
methods of payment.

1. Electronic transfer
2. Direct payment

Discuss both method of paym ent . W hich method would you recomm end? Give two reasons
for your recommendation .

Method advantages disadvantages I

I - Saves time/ money - There are restrictions e .g . no I
transfer/ payments of of transactions (1)
spares takes few - High risk of acco unt being
minutes(1) hacked (1) I

1. Electronic tran sfer - Reduced risk of loss and - Need internet to access( 1)
I
I theft/ Josa not forced to
carry large sums(1)
- Convenience payments
done anytime/flexible (1)

- Helps to keep record of - Too much paperwork as

I
transactions( 1) receipts are needed to cross
I - Low-cost loans(1) check with statemen ts( 1)
I 2. Direct payment - Provide instant cash(1 ) - Leads to overs pending
- helps to build positive credit misuse of funds ( 1)
I
worthiness/good reputation -High cost fees/ Bank
I
I
charg es(1)

2 methods discussed 2 marks x 3 = 6 marks+ 2 reasons stated [8]

2 methods explained 2 marks x 3 = 4 marks+ 2 reasons stated [6]
2 reasons stated 2 x 1 = 2 marks+ 1 reason for recommendation [3]

[Total: 16]
 th e Y,) uth
State .:v,; e, pos sible 1e2so,1s why "Iosco Motors decided tc 2~-:i=11; fo i- financi. :~· 2t
Jsvsi~•J n e;-,1 =\,..1 7 .:. .

c Th e grant was t"ead ily available

° C harges low inte rest rate
~ There is monitoring an d supervision
" Gives a grace period
" To take advantage of t he 50 % grant/ which will not be paid back
[2]
2 reasons st at ed = 2 marks
long-te rm
(b) Discuss two ways in which the subm iss ion of the business plan would help in the
success of Josa Motors.

To obtain capital( 1) cash fl ow and income statem ent wi ll be able to convince

g able to
Department of Youth and culture to fund them(1 ) leading to the business bein
buy th e necessa ry non-current assets(1)
in
• Check if th e business ides is feasible( 1) which had convince d investors to invest
Josa Moto rs (1) therefore possible expansio n/ diversification(1)
of its
• Evaluate the performa nce(1) to see if the business made a profit/loss at the end
trad ing period (1) which helps managers to come up with strategie s to improve
profitability(1)
re
To organize the resources needed(1) determin e how many mechan ics(1)therefo
enable the business to have enough supply in order to meet the demand of their
custome rs(1 )
s for
To contro l the operations of the business(1) as it will help set targets and standard
therefore manager s w ill be able to review and adopt th e
th eir replacing service( 1)
suitab le strategie s(1 )

2 ways discuss ed (con du ded/crltiqu ed) 2X3 = 6 marks

2 ways explaine d 2x2 =4 marks
2 ways iisted 2x1 = 2marks

{c) Explain two ben efits of good custome r service fo r Josa Motors.

ed with
it helps to bui ld good reputatio n of th e busi ness(1) as car owners will be satisfi
the service/ increase market share of Josa Motors(1 )
It enco urag es custom ers to always take their cars to Josa Motors (1) so custom ers
become loyal/ increase s return s from sales(1)
13
It gives Josa Motors a competit ive edge over others (1 ) hence attracti ng new
s in
custome rs/hence la rg e mark et sha re/expansion/esta blishm ent of other branche
other areas(1)
e
• It helps to get feedback on the repairi ng service( 1) wh ich enables Jos2 Motors to com
to improve their service/ good im age for Josa fVlotors( 1)
up with new ways on repai ring
• AORP

2 benefits exp la:ned and app lied 2x 2 :::: 4 m arks

2 benefits li st ed = 2 m arks 2x1=2m crks
 7

(d) Assess three factors that Josa Motors should consider when designing an advertisement.

Cost(1) how much will it cost Josa Motors on the advertisement e.g. tv is charged for
•
timing/pictures/duration of the campaign(1) however Josa Motors may not have enough
financial and human resources to carry out advertisement(1)
• Target market(1 )vehicle owner and insurance companies(1) in order to create the
advert(1)
• Duration of the campaign(1) how long the message about car repairing will last their
repairing service(1)however if the advert takes long it can be ignored by car owners(1)
• Message(1 )should be short and pricise(1) in order to bring in vehicle owner(1)
• Medium to use(1) medium which is available to reach car owners could be local
newspapers, billboards and leaflets e.g. northern advertiser(1) however medium might
not be reliable/effective(1)
• Good timing(1) when potential customers are likely to see or listen to Josa Motors'
advertise e.g . before/after evening news/along the roads/distribute pamphlets during
conferences( 1) however expensive( 1)

3 factors discussed and applied (concluded/ critiqued) 3x3 = 9 marks

3 factors explained and applied but not concluded/ critiqued 3x2 = 6 marks
3 factors listed 3x1= 3 marks

NB: MENTIONING OF THE MEDIA EG RADIO, TV ETC ITS APPLICATION

[Total: 21]
1~ · Jurcil sisinc
fo rwarding agent wh en ~
\<t. ) State tvvo reason s why Josa fViotors decided to use a ~
spme parts and machin es frorn Japan .

Organ ise transp ort for spares and machines

ents required in tra ns porting
0 Prepa re shipping docum ents/o btain the necessary docum
the goods
0 Arrang es insura nce policy
sported
0 Prepares storag es/ packaging for the spai-es being tran
[2]
2 reason s listed = 2 marks

ltant to admit a new partne r and

(b) John and Sarah are considering the advice from th e consu
to look for a new supplier.

mend? Give two reaso ns for

Discuss both options . What cause of action would you recom
your recommendation .

can widen marke t/ more

0 The new partner could bring new innovative ideas(1) which
howev er they cou ld be disagr eement(1)
income and skills on different cars (1)
spare parts of repairi ng cars(1 )howe ver it may
0 More capital being raised(1) to buy more
reduce their powers in running the busine ss(1)
which help cut costs/ reduce s
5 May get cheap er spare parts from a reliable supplier(1)
y new supplie r/ trustworthy suppli er( 1)
expenses howev er it may take time to identif
r( 1) attract ing more custom ers(1)
a better quality spare parts from a reliable supplie
howev er it will take some time to build good relatio n(1)
0 They could do both at the same time or do nothing

+ 2 reaso ns stated [8]

2 option s discu ssed and applie d 2 marks x 3 = 6 marks [6]
x 3 = 4 marks + 2 reaso ns stated
2 option s explai ned and applie d 2 marks [3]
mend ation
2 reaso ns stated 2 x 1 = 2 marks + 1 reaso n for recom

No mark for statin g a cours e of actio n

(c)
mach ines for Josa Motor s.
(i) Calculate how much was spent on buying equipm ent and
(show your working)

P400 000- (P1 00 000 + P150 000) (1) OR

= P400 000 -P250 000 (1) [2]
=P150 000 (1)

1 mark for correc t working

1 mark for correc t answe r
NB: 2 marks for correc t answe r only

2018.
{ii) Calcu late th e working capita l of Josa Motors at 31 March

Current assets - Current liabilities

= P1 0 000 + P50 000 + Pi 0 000 - (P90 000 + P24
000) (1) OR
= P70 000 - P114 000 (1)
[2]
= (P 44 000) (1)

·1 m a rk fo r correc t wo ri,;ng
'I mark fo r correc ·~ ~ '."1 £ \1ve :
:on-se t ar.sws r ln r.c:-. , :: c:r..:
s'ic:-wr
 8

(i ii) Analyse two ways in which Josa Moto

rs could improve th e work ing capit al of the
business .

• Josa Motors should adopt account recei

vables financing method (1).This will allow
finance company to pu rchase. Josa Moto a
rs account receivables/ assumes the risk
of customers ' ability to pay( 1)
• Josa Motors should lease equipment like
gargets( 1) instead of buying them / the
lease payment can be matched against
revenue(1)
• Securing short term loans (1) to jumpstart
growth /to improve cash flow( 1)
• Lines of credit/overdraft (1) This will enab
le Josa Motors to improve cash flow by
restructuring the debts ( 1)
• Selling of non-current assets(1) to get cash
which can be used in repairing of
vehicles(1)

2 points explained and applied 2x2= 4

marks
2 points listed 2x1=2 marks
[4]
(d) Discuss two sustainable ways in which
Josa Motors may use its resources .

• Recycling som e moto r parts(1) through

polishing or grinding old ones(1) howe ver
parts might not fit properly and customers some
will not be happy/mechanics may not have
skills(1)
• Re-use of waste e.g. oil(1) to polish the
floor to make it tidy(1 )/however it can be
health haza rd/flo or can be slippery/will caus a
e air pollution(1)
• Reduce the use of chemicals e.g. paint(1)
use natural based paints/oils which will not
affect the environment(1) however it may
reduce the quality of oil paint(1 )
• Spraying shou ld be done in a confined area
(1) to reduce pollution/contamination of
plants and animals(1) it can be expensive
and technical to find bigger area (1)

AORP
2 ways disc usse d and applied 2 x 3 =
6 marks
2 ways explained and applied but not
critiqued 2 x 2 = 4 marks
2 ways listed and appl ied = 2 x 1 = 2 mark
s

[Total:24]
 . ::,E. way .ill vvh1ch
. . crn. rs ~ ·-·'·-:,I;,, "" Vou'r' l..,I Devsioor:-:ei"'[
Expla in Josa !\fl \f.!OU!r) /J SE: '·-
,.lier va .-~
i.,!to. , 11 01:I J.I
Ulv . '

Fund .

I/Viii De usecJ to pay e::penses e.g . elec ,, 1c1ty, 1Nc1 le1~ , o.G! V0,..q-'·ic
, • • !. .• • ' J. ··7 , t ..i \
, L, ~1
.....~
, 9,, 1
.... •;- ,.....
,u "'-'
t-- oen
,
th e :-eo2
,
irs
of vehicles on going (1) . - ; · i ~(1)
0 Acquire non-current assets e.g. equipmen't(1) in order to ca rry out repai rs oi v enrc 8 -=>
o To buy spares , pa ints('I ) in order to repa ir vehicles('i) , ,, , .,, -"--
o Fi nancial rese rve for emergencies e.g . sudd en brea kd own OT tne cor,1p resso, ( , ) i v,
continuous provision of panel beating services('!)
AORP

1 point exp lained and applied 2 marks

1 point exp lain ed and not applied 'I mark
1 poi nt listed 1 mark [2]

(b) Expl ain two reasons why it is important for Josa Motors to keep accurate ! i~-~n?i~_l_res;_o_rd~
of the business .

0 Helps to kn ow if the business is profitable(1) so th at the owners ca n come up with new

strategies of improving profits(1)
0 Required for legal issues when the owners have been sued or want to sue(1) to give
proof of transactions that took place(1)
Acquisition of finance from banks(1) to assess the ability to pay back the loan(1)
8 To calculate tax payable(1) in order to plan/for tax penalties/ to receive tax cleara nce
certificate(1)
0
Sharing of own ership of the business(1) as the prospective investors will check if it is
worth investing in that business/and can make correct decision( 1)
C
Selling of the business( 1) for th e buyer to assess th e value of the business bei ng
sold/to ascertain return on investment(1)

2 points exp lained 2 x 2= 4

2 points list ed = 2 marks [4]
(c} _f.\_nalY-§e two _!ml?licatio.n·s· of spedalisation to Josa Motors. . ·.!.

0
More ca rs can be repaired(1) as partners specialize (spray painting, car striping)/ m ove
from one car to another(1) leading to efficiency( 1)
0
Tim e is saved( 1) as mechanics do not have to move fro m stripi ng to sprayi ng(1)
however if the ca r stripper is not around the car spraying worker won't carry out his
duties(1)
0
There is interdependence betvveen th e car strippers and sp ray pai nters(1) wh ich will
bring over re liance of a sp ray painter on car stripping(1)
Spra1 pa inting and car stripping can lead to loss of craftsmans hi p(1) (,⇒-) since t hey are
0

practicin g only one part of car striping or spray painting/ workin g on eng ines and gea r
boxes(1)
• A llows the use of san paper machin e/compressor(1) which requ ires fe v\J hum an labou r/
t he business enjoys reduced operational costs('i)
Trai nin g of_ pan el beate rs an d m echan ics is quick(1) as mechanica l jo bs are easier to
learn/ leading to red uced training costs( 1)
0
Jojo Motors w_ill become popular in repairin g cars (1) as they are efficient in repairing ('])
as a r.esu lt en Joying 1ncr~ase d sa les as more customers wi ll bring th eir cars(1) ·
Car smpping can be bori ng(1) 3.S car sirippers strip the cars everyday('!) leadi ng ,. lrn v
:)rod uct1v1ty( 1) L0 1