• loss: occurs when income is less than expenses; loss = income < expenses • non-current asset: possession of a person or business that cannot easily be converted to cash within twelve months
• non-current liability: an amount owed to another person or business that must be paid back over a period longer than twelve months
• payments: all amounts paid out by a person or business, in cash or by cheque drawn on a current account or by credit card
• personal statement of net worth: summary of the financial position of a person on a specific date
• profit: occurs when income is more than expenses; profit = income > expenses • receipts: all sums of money received by a business and deposited in the current bank account of the business
• savings: money left over after all expenses have been paid that can be put aside for future use
• transaction: action or event involving an exchange of goods or services for monetary value, the details of which are recorded by date in the books of account of the business
Activity 1 Think about starting your own business Learner’s Book page 49
Guidelines to implement this activity
• This is an individual activity. • The aim of the activity is to see if learners can identify different sources of capital contribution to start a business.
• It is important that the amounts they use are realistic for the type of business they want to start.
Background knowledge
The learners need to know the difference between a need and a want and be able give examples.
Suggested answers Answers of learners will differ but consider the following guidelines:
• The type of business a learner can start will depend on the capital contribution. Where did the learner get the money from? Was only money required or other assets as well? üü
• Is it a service or retail business? üü • What assets is the learner wanting to buy, for example premises, equipment, a vehicle? üü
• Expenses will depend on the type of business. Make sure they are realistic. üü • Income earned will depend on the type of business. Make sure it is realistic. üü (10)
Assessment guidelines
• This is an informal assessment. • Assess the learners out of a mark of 10. See guidelines above for mark allocations.
44 Term 2: Financial literacy
9780199052050_OS_Economics_7_TG_CAPS2017.indb 44 11/29/17 9:02 AM
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51
