The budget below shows the estimated financial aspects for an animal production enterprise for the 2016/2017 financial year - NSC Agricultural Management Practices - Question 3 - 2017 - Paper 1
Question 3
The budget below shows the estimated financial aspects for an animal production enterprise for the 2016/2017 financial year.
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Worked Solution & Example Answer:The budget below shows the estimated financial aspects for an animal production enterprise for the 2016/2017 financial year - NSC Agricultural Management Practices - Question 3 - 2017 - Paper 1
Step 1
3.1.1 Name the management principle of the budget.
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Answer
The management principle that this budget addresses is Financial Planning. This principle is crucial for ensuring that resources are allocated effectively to meet the financial goals of the animal production enterprise.
Step 2
3.1.2 Identify THREE possible markets in the data above that this farmer is targeting.
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Answer
Livestock auctioning
Farm gate marketing
Manure retailers
These markets represent avenues through which the farmer can sell their products and services.
Step 3
3.1.3 Calculate the possible profit/loss that this farmer could generate. Show ALL calculations.
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The possible profit the farmer could generate is R363,936.00.
Step 4
3.1.4 State TWO possible ways to increase the income of the enterprise.
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Finding more markets to sell the livestock and manure, thereby increasing the customer base.
Adding value to the products, such as processing meat or dairy products, to enhance profitability.
Step 5
3.1.5 Identify the section of a business plan that is addressed in this scenario above.
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Answer
The sections of a business plan addressed in this scenario include Financial aspects and Budgeting. These sections are essential for planning and managing the financial resources of the enterprise.
