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Leadership and management strategies aimed at ensuring good returns must be focused on the short term but must also take into account the future of the business in the long term. The primary objective is to make a reasonable profit and maintain a sound financial position in the business.
Divide a piece of cardboard in two and paste pictures of service enterprises on one half and commercial enterprises on the other half. Choose one service enterprise and one commercial enterprise on your poster and write down points that the management of each must take into consideration in order to ensure a good profit on their earnings.
Transactions of Dixon Dry Cleaners, owner D. Dixon.
1. D. Dixon started a business called Dixon Dry Cleaners by depositing R50 000 in the current bank account of the business.
2. He pays the municipality R500 for a trade licence by cheque 001.
3. He leases a building from Ena Properties and pays R1 000 by cheque 002.
4. A delivery vehicle is purchased from Rennie Motors and R52 000 is paid by cheque 003.
5. Stationery is purchased from Stationery Ltd. and pays R70 by cheque 004.
6. Cheque 005 for R500 is issued to Cleaning Material Distributors for cleaning material.
7. Cash received for services provided as per cash register roll, is R3 520.
8. Telephone account of R180 is paid to Telkom by cheque 006.
9. Cheque 007 for R15 000 is issued to Elke Dealers for equipment purchased.
10. The municipality is paid R600 by cheque 008 for water and electricity.
11. Cheque 009 for R900 for the payment of wages is cashed.
12. Cash received for services provided as per the cash register roll, is R2 100.
13. An industrial dry cleaning machine for the provision of services is purchased from Industrial Ltd. and R3 000 is paid by cheque 010.
14. Cash received for letting a section of the building is, R2 500.
Table for Dixon Dry Cleaners’ transactions
(a) Indicate the effect of the transactions on the assets and ownership interest.
(b) Calculate the total income.
(c) Calculate the total expenditure.
(d) Calculate the profit.
| (a) | NUMBER | ASSETS | OWNERSHIP INTEREST | |
| (b)……………………………. | ||||
| (c) | ||||
| (d) | ||||
Learning Outcomes (LOs)
LO 3
Management, Consumer and Financial Knowledge and Skills
The learner will be able to demonstrate knowledge and the ability to apply responsibly a range of managerial, consumer and financial skills.
Assessment Standards(ASs)
We know this when the learner:
3.1 differentiates between financial concepts used in business (e.g. fixed assets, current assets, liabilities, owner’s equity);
3.2 develops leadership and management strategies that will ensure a return on investments;
3.3 completes source documents (e.g. receipts, deposit slips, cheques) and records elementary
cash transactions in a statement of receipts and payments;
3.4 uses keyboard skills and function keys in developing, storing and retrieving basic information;
3.5 explains the concept and analyses a statement of net worth;
3.6 investments the various methods of savings and investments (e.g. savings accounts, fixed deposits, shares, unit trusts), and calculates on a variety of investments.
ACTIVITY 2
SERVICE ENTERPRISES
COMMERCIAL ENTERPRISES
Hairdresser
Hardware store
Medical practitioner
Pharmacy
Plumber
SPAR
Electrician
Clothes shop
Provide good service
Ask competitive prices
High income
Expenditure as low as possible
Good prices
Good quality products
Attract clients with special offers
Large profits
ACTIVITY 3
(a)
NUMBER
ASSETS
OWNERSHIP INTEREST
1
+50 000
+50 000
2
-500
-500
3
-1 000
-1 000
4
+52 000
- 52 000
5
-70
-70
6
-500
-500
7
+3 520
+3 520
8
-180
-180
9
+15 000
- 15 000
10
-600
-600
11
-900
-900
12
+2 100
+2 100
13
+3 000
- 3 000
14
+ 2 500
+2 500
(b) R8 120
(c) R3 750
(d) R4 370
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