GENERAL EDUCATION AND TRAINING CERTIFICATE
NQF LEVEL 1
ABET LEVEL 4 SITE-BASED ASSESSMENT
LEARNING AREA
:
SMALL, MEDIUM AND MICRO
ENTERPRISES
CODE
:
SMME4
TASK
:
CASE STUDY
DURATION
:
1½ HOURS
MARKS
:
50
This assessment task consists of 3 pages.
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SMME4
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SBA Task: Case Study 2017
INSTRUCTIONS AND INFORMATION
1.
This case study covers US 10009.
2.
Answer ALL the sub-questions.
3.
Learners must do this task individually.
4.
The task must be completed within ONE-AND-HALF HOURS.
_____________________________________________________________________________
QUESTION 1
Read the case study below carefully and answer the questions.
Simon owns a big fruit and vegetables store which is registered as a close
corporation. He employed seven people – three of them are cashiers and four are
general workers. Simon performs all the management functions. He installed CCTV
security cameras and spends most of his time looking at the TV screen at the counter
next to the exit. He also checks the customers' receipts and searches suspicious
looking customers who might be stealing from the store.
Simon does not adhere to the legal requirements of the business. His employees are
underpaid and the business is understaffed. Simon does not provide his employees
with personal protection equipment and did not register them with Workman's
Compensation Fund. He hires and fires employees every month. The business hours
are as follow: Monday to Friday the business opens from 07:00 until 19:00 and
Saturday they work from 07:00 until 14:00. Employees are expected to be at work
every working day and they are not paid for working overtime.
Late in 2015 and early 2016 South Africa experienced a severe draught. The supply
of fruits and vegetables decreased which led to their price increase. Simon had to
travel a long distance to get stock for his store. He had to increase prices which led to
the loss of customers.
It started to rain again and the business became stable again. One busy Friday the
town experienced a power failure. Everything in the business shut down including the
lights and cameras. Employees and customers used that as an opportunity to steal
from Simon's store. It only took 15 minutes for the power to return again, but the
damage was already done. Simon lost a huge amount of stock and money.
Simon borrowed R20 000 from his brother and agreed that the money will be paid
back after two months without interest. If Simon fails to pay on the agreed time,
R1 500 interest will be added for every month. Simon only paid back the loan money
after three months.
1.1.
1.2
Name FOUR systems that Simon can develop to run and maintain his
business.
(4)
Explain the purpose of having different systems named in QUESTION 1.1 in
the business.
(2)
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SBA Task: Case Study 2017
1.3
List FOUR legal requirements that Simon fails to adhere to.
(4)
1.4
Give TWO actions that can be taken by the Labour Department against
Simons' business.
(2 × 2)
(4)
Give TWO actions that may be taken by the South African Revenue Services
against Simon's business.
(2 × 2)
(4)
1.5
1.6
'Simon hires and fires employees every month'.
(2 × 2)
(4)
Who will be responsible for the employees who might suffer injuries on duty?
Motivate your answer.
(3)
1.8
Identify THREE risks that Simons' business experienced.
(3)
1.9
Explain how insurance could have assisted Simon's business.
(3)
1.10
Simon's business does not have alternative power supply.
State TWO possible effects of such actions on the business.
1.7
Which quick action can be taken to prevent theft, when there is power cut?
(2)
1.11
Give FIVE reasons for the possible changes in a business environment.
(5)
1.12
According to South African labour laws, how many hours should an employee
work per week?
(2)
1.13
Calculate how many hours do Simon’s employees work per week.
(4)
1.14
Calculate how many hours do Simon’s employees work overtime per week?
(3)
1.15
Calculate how much interest Simon is going to pay after three months.
TOTAL:
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(3)
[50]
50