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6.1 Give THREE examples of start-up costs for a small business from home - NSC Consumer Studies - Question 6 - 2023 - Paper 1
Question 6
6.1 Give THREE examples of start-up costs for a small business from home. 6.2 State THREE factors that influence the efficient production of quality products. 6.3 ... show full transcript
Worked Solution & Example Answer:6.1 Give THREE examples of start-up costs for a small business from home - NSC Consumer Studies - Question 6 - 2023 - Paper 1
Step 1
Give THREE examples of start-up costs for a small business from home.
Answer
- Electricity: Essential for operating machinery and appliances needed for the business.
- Raw materials: Ingredients for the products such as flour, sugar, and eggs.
- Administrative costs: Expenses related to phone bills, internet services, and any other necessary registrations.
Step 2
State THREE factors that influence the efficient production of quality products.
Answer
- Planning: A well-structured production plan ensures resources are utilized effectively.
- Quality control: Regular checks during production help maintain high standards.
- Tidy workspaces: Keeping a clean and organized area minimizes errors and accidents.
Step 3
Give reasons for conducting a financial feasibility study.
Answer
- Identify potential risks: Understanding market conditions helps in avoiding financial losses.
- Evaluate profitability: Calculating expected returns helps assess whether the business idea is worth pursuing.
- Determine startup costs: Knowing how much capital is required aids in planning funding and investments.
Step 4
Give THREE characteristics of eco-friendly packaging materials.
Answer
- Biodegradable: They break down naturally in the environment, reducing waste.
- Reusable: Designed to be used multiple times, which minimizes resource usage.
- Recyclable: Can be processed into new products, contributing to sustainability efforts.
Step 5
Explain the advantages of using local raw materials for a small-scale business.
Answer
Using local raw materials supports community farmers and suppliers, which fosters good relationships within the local economy. Additionally, it can reduce transportation costs, making the overall production process more cost-effective. Furthermore, sourcing locally often results in fresher ingredients, enhancing product quality.
Step 6
Explain why it is important for a business to handle customer queries or complaints immediately.
Answer
- Customer satisfaction: Quick responses improve customer loyalty and trust.
- Business improvement: Addressing feedback allows businesses to adapt and enhance their offerings.
- Reputation management: Responding promptly can mitigate negative reviews and foster a positive business image.
Step 7
List the information that must be included on the package label of the baked products.
Answer
- Name of the product
- Name of manufacturer
- Trade name / mark / logo / emblems
- Address/ details of manufacturer
- Country of origin
- Ingredients
- Storage instructions
- Nutritional information
- Weight/ volume/ quantity/ size
- Allergens
Step 8
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Step 11
Calculate Pick n Pay's selling price for each pack of snowballs. Show ALL calculations.
Answer
From the previous calculation, the cost price is R11.20.
Pick n Pay adds 70% profit per pack:
Selling price = Cost price + Profit
Profit = R11.20 × 0.70 = R7.84
Selling price = R11.20 + R7.84 = R19.04
Step 12