ministry of education of education ... nssch business studies syllabus, ... thus the namibia...

Republic of Namibia

MINISTRY OF EDUCATION

NAMIBIA SENIOR SECONDARY CERTIFICATE (NSSC)

FOR IMPLEMENTATION IN 2006 FOR FIRST EXAMINATION IN 2007

DEVELOPED IN COLLABORATION WITH UNIVERSITY OF CAMBRIDGE INTERNATIONAL EXAMINATIONS

BUSINESS STUDIES SYLLABUS

HIGHER LEVEL

SYLLABUS CODE: 8336

GRADES 11 - 12

Republic of Namibia

MINISTRY OF EDUCATION

NAMIBIA SENIOR SECONDARY CERTIFICATE (NSSC)

BUSINESS STUDIES SYLLABUS

HIGHER LEVEL

SYLLABUS CODE: 8336

GRADES 11 - 12

Ministry of Education National Institute for Educational Development (NIED) Private Bag 2034 Okahandja Namibia © Copyright NIED, Ministry of Education, 2005 NSSCH Business Studies Syllabus Grades 11 - 12 ISBN: 99916-69-32-9 Printed by NIED Publication date: 2005

TABLE OF CONTENTS

1. Introduction ............................................................................................................................................1

2. Rationale ................................................................................................................................................1

3. Aims .......................................................................................................................................................2

4. Learning Content....................................................................................................................................2

5. Assessment Objectives.........................................................................................................................17

6. Scheme Of Assessment ........................................................................................................................18

7. Specification Grid ................................................................................................................................19

8. Grade Descriptions...............................................................................................................................20

9. Glossary Of Terms ...............................................................................................................................22

Annexure A: Explanatory Notes To Teachers..........................................................................................28

NSSCH Business Studies Syllabus, NIED 2005 11

1. INTRODUCTION

The Namibian Senior Secondary Certificate (NSSC) for Business Studies Higher Level is designed as a two year course for examination after completion of the Junior Secondary Certificate. The syllabus is designed to meet the requirements of the Curriculum Guide for Formal Senior Secondary Education for Namibia and has been approved by the National Examination, Assessment and Certification Board (NEACB). Teachers are required to refer to ANNEXURE A (Explanatory notes to Teachers) before commencing with their teaching activities. The National Curriculum Guidelines, applicable at the stage of senior secondary education (grades 11 and 12) and at equivalent stages of non-formal education, as a part of life-long learning, recognise the uniqueness of the learner and adhere to the philosophy of learner-centred education. The Namibia National Curriculum Guidelines: • recognise that learning involves developing values and attitudes as well as knowledge and

skills; • promotes self-awareness and an understanding of the attitudes, values and beliefs of others

in a multilingual and a multicultural society; • encourage respect for human rights and freedom of speech; • provide insight and understanding of crucial “global” issues in a rapidly changing world

which affect quality of life: the AIDS pandemic, global warming, environmental degradation, uneven distribution of wealth, expanding and increasing conflicts, the technological explosion and increased connectivity;

• recognise that as information in its various forms becomes more accessible, learners need to develop higher cognitive skills of analysis, interpretation and evaluation to use information effectively;

• seek to challenge and to motivate learners to reach their full potential and to contribute positively to the environment, economy and society.

Thus the Namibia National Curriculum Guidelines should provide opportunities for developing essential/key skills across the various fields of study. Such skills cannot be developed in isolation and they may differ from context to context according to the field of study. Business Studies contribute directly to the development of the 8 key skills marked *: • critical and creative thinking skills* • communication skills* • information skills* • numeracy skills* • physical skills • problem-solving skills* • self-management and competitive skills* • social and co-operative skills* • work and study skills*

2. RATIONALE

Business Studies intends to impart the basic concepts of entrepreneurial skills in the learners that will enable them to create jobs for themselves, and for others as well as in the future. It will help learners to apply the business knowledge, skills and attitudes acquired to solve environmental, economic and social problems in their everyday lives. The subject will help learners to appreciate the importance of good working habits, to develop positive attitudes towards work and promote interest in self-employment.


3. AIMS

The aims of the syllabus are the same for all learners. These aims are set out below and describe the educational purposes of a course in Business Studies for the NSSCH examination. They are not listed in order of priority. The aims are to enable learners to: 1. develop knowledge and understanding of the environment within which business activity

takes place and of the way in which changes in that environment influence business behaviour;

2. develop knowledge and understanding of the major groups and organisations within an outside business and consider ways in which they are able to influence objectives, decisions and activities;

3. develop understanding of the roles and purposes of business activity in both the public and the private sectors and of competition and monopoly;

4. develop knowledge and understanding of how the main types of business and commercial institutions are organised, financed and operated and how their relations with other organisations, consumers, employees, owners and society are regulated;

5. develop knowledge and understanding of the factor inputs and product outputs of businesses and the forces which help to determine and control them;

6. develop knowledge and appreciation of the working world and of the co-operation and inter-dependence which participation in society entails; to encourage the confidence and awareness of students in their approach to such participation, particularly through group activity within the classroom and direct experience outside it;

7. develop knowledge and understanding of the language, concepts, techniques and decision-making procedures in business behaviour;

8. develop skills of numeracy, literacy, enquiry, selection and employment of relevant sources of information, presentation and interpretation;

9. develop an awareness of the nature and significance of innovation and change within the context of business activities;

10. acquire knowledge and understanding of the effect of HIV and AIDS on business activity; 11. understand the impact and influence of business activity on the environment and on

human rights. 4. LEARNING CONTENT

The content is divided into seven themes and these are: 1. Why is business activity needed? 2. How is business activity organised and financed? 3. What is work like? 4. What is produced and why? 5. How and why do the Government and the community influence business activity? 6. Entrepreneurship 7. Why is information important for decision making?


THEME 1: WHY IS BUSINESS ACTIVITY NEEDED? TOPIC GENERAL OBJECTIVES

Learners will: SPECIFIC OBJECTIVES Learners should be able to:

1.1 The nature and purpose of

economic activity

• understand the development of

economic activity and account for the emergence of specialisation, the division of labour and exchange.

• describe the development of economic activity; • describe the scarcity problem and opportunity cost; • explain the meaning of specialisation and division of labour; • describe the relationship between specialisation and trade; • identify the levels of specialisation with examples; • discuss the advantages and disadvantages of specialisation; • state the groups involved in business activity; • identify the objectives of the groups involved in business activity:

consumers, workers, managers, owners, those with a financial interest, the community as a whole;

• give examples of the conflict of objectives between the various groups involved in business activities and the ways in which priorities change;

• explain the purpose of business activity in terms of the objectives of: non-profit making activity, private enterprise, public enterprise.

1.2 Economic systems

• understand how economic systems are organised

• describe and explain the role of the State in the economy; • distinguish between market, mixed and planned economies.

• understand the creation and distribution of wealth

• explain how wealth is created and distributed; • explain the importance of welfare policies to alleviate poverty.

1.3 Types of business activity

• acquire knowledge and understanding of the classification of different types of business activity/stages of production.

• differentiate, with examples, between the different types of business activity in the primary, secondary and tertiary sectors.


THEME 1: WHY IS BUSINESS ACTIVITY NEEDED? TOPIC GENERAL OBJECTIVES


• understand the methods of measuring

the size of a business.

• state the main methods of measuring the size of businesses; • explain the purpose of the classification and measurement of business

units; • explain:

- internal growth, - external growth (mergers and take-overs);

• explain, with examples, the meaning of multinational firms; • identify the advantages and disadvantages of multinationals to the host

country; • explain the importance of globalisation; • explain the survival of small firms; • explain how businesses respond to the needs of the community.


THEME 2: HOW IS BUSINESS ACTIVITY ORGANISED AND FINANCED? TOPIC

GENERAL OBJECTIVES Learners will:

SPECIFIC OBJECTIVES Learners should be able to:

2.1 Ways of organizing

business activity: the public and private sectors

• understand the difference between the

public and private sectors.

• explain with examples the difference between public and private sectors; • distinguish between nationalisation and privatisation; • explain the functions and operation of the Namibian Stock Exchange

2.2 Forms of business organisations

• understand and analyse the different types of business organisations in the public and private sector.

• describe the main characteristics, advantages and disadvantages of the different types of business organisations: sole proprietors, partnerships, private limited companies, public limited companies, co-operatives, close corporations, public corporations, joint ventures, franchises;

• consider the appropriateness of each of these forms of business ownership to particular circumstances and choose between them (a detailed knowledge of legal requirements and procedures is expected);

• describe how ownership becomes divorced from control as business grows;

• compare formal and non-formal sectors, origin of non-formal sector, advantages and disadvantages for the business and workforce,, effect of non-formal sector on unemployment and crime, evolution from small to large scale enterprises.

2.3 Organisational structures,

by level and by function

• understand the need for and features of an organisational structure.

• define an organisational structure; • define and comment on central features of organisational structure and

activity, such as hierarchy, responsibility, authority, span of control, chain of command, line and staff organisation, centralisation, delegation;

• draw and explain a detailed organisation chart; • describe the need to change the organisational structure as the business

expands and how this might affect the business; • describe types of organisation structure: by function, by product, by

market, by systems.





2.4 Finance in the

private/public sector, meeting targets, raising finance

• acquire knowledge and understanding

of the sources of long-term and short-term finance.

• identify the main needs for funds and how such needs can be met; • identify and comment upon the main sources of private and public sector

finance; • explain the main ways of seeking finance from these sources; • identify the main ways in which a business is able to use funds from

internal sources; • explain the idea of cash flow and cash flow forecasts and its importance

in the management of finance; • identify and explain the main criteria which business will use when

seeking short- and long-term finance, large and small amounts: purpose, amount, time, risk, gearing;

• analyse a firm’s need for funds for specific purposes and make a choice between the available resources;

• explain the factors which financial providers (banks, shareholders, institutions) will consider in providing funds.

2.5 The accounting function,

planning and controlling business activity

• appreciate the importance of keeping simple records of business transactions.

• explain the role of the accounting function in the planning and control of business activity;

• use and interpret simple quantitative accounting data, in particular the final accounts (Profit and Loss Account and Balance Sheet) of a business, using performance ratio (return on net assets/return on capital employed, gross profit margin, net profit margin), liquidity ratio (current ratio, acid test/liquid ratio, stock turnover ratio) and solvency ratio (debt ratio);

• explain the nature and usefulness of budgets and cash flow forecasts and prepare examples to demonstrate their nature;





• distinguish between various kinds of costs, explaining their nature and

significance (fixed vs variable, average, marginal and total); • draw a break-even chart and calculate the break-even point; • explain the importance of break-even analysis on decision making; • recognise and use the following concepts: capital owned, capital

employed, employment of capital, working capital, liquidity; solvency.

2.6 Management of business

• demonstrate an understanding of the importance of management

• discuss the nature of management and the need for effective management;

• define management and explain management functions; • explain the qualities of a good manager; • discuss the different types of management styles; • discuss leadership, qualities, styles, effectiveness, roles.

2.7 Communications

• acquire knowledge of different types of communication.

• discuss the nature of communication and the need for effective communication in business situations;

• distinguish between: - internal and external communication, - one way and two way communication;

• explain and analyse the main elements of effective communication: message, media (verbal, written, visual), timing;

• identify and explain the barriers to effective communication and how they may be overcome;

• explain the characteristics of communication nets.


THEME 3: WHAT IS WORK LIKE? TOPIC



3.1 Why work? Needs of the

individual

• understand the importance of work to

an individual.

• identify the reasons why individuals work; • discuss the extent to which work satisfies individual’s needs.

3.2 Rewards for work

• understand the responsibilities required and rewards given for different jobs.

• identify the financial and non-financial rewards for work; • explain the place of rewards in motivation; • describe the different payments systems (salaries and wages) • including piece work, time work, combination systems, bonuses and

commissions, productivity agreements, profit sharing, • identify different types of responsibility structures in business and the

way in which work can be organised either to give or to remove responsibility e.g. span of control.

3.3 Groups and relationships

• understand the importance of groups in the workplace.

• describe the formation of groups in the workplace; • explain the importance of formal and informal groups and the roles they

play in the work situation.

3.4 Formal representation and participation

• demonstrate an understanding of the importance of co-operation and negotiation in the workplace.

• discuss what management can do to meet the needs of workers with regard to job satisfaction;

• explain why co-operation and joint responsibility are important in the workplace;

• describe the types of trade unions; • explain the reasons for joining trade unions; • describe the types of industrial action; • outline the structure of trade unions and the way they work (locally); • explain the issues involved in management accepting

workforce/unionisation and recognising trade unions;


THEME 3: WHAT IS WORK LIKE? TOPIC



• outline the structure of bargaining at plant level; • outline the roles of:

- the shop stewards - convenors - personnel department - joint committees on particular issues; - the Board and worker directors;

• define organisational conflict; • discuss the means of avoiding and resolving conflict when relations

break down; • describe the role of employer associations; • explain what is meant by worker participation in decision making; • explain different ways of worker participation; • explain advantages and disadvantages of worker participation.

3.5 Recruitment, training and

human resources

• understand the importance of

recruiting the right candidate for the job.

• describe the means of selecting and training the workforce:

- recruitment, - selection, - induction, - training;

• discuss the appropriateness of different types of training to particular circumstances;

• develop appropriate materials for recruitment, e.g.: - job descriptions, - job specifications, - application forms, - advertisements.


THEME 4: WHAT IS PRODUCED AND WHY? TOPIC GENERAL OBJECTIVES


4.1 The market and marketing

• demonstrate an understanding of how

and why firms attempt to satisfy consumer wants.

• explain the meaning of a market and marketing; • explain how businesses identify and meet the needs of customers; • list the objectives of marketing; • describe how businesses divide the market into segments by product,

region, purpose, price and decide which segment to enter; • distinguish between market orientation and product orientation.

4.2 Market research

• acquire knowledge and an understanding of the importance of market research.

• acquire knowledge of conducting market research

• explain the meaning of market research; • distinguish between the methods of primary research and secondary

research; • discuss when different methods of research should be used; • explain why information obtained in market research might not be

accurate; • draw up a questionnaire.

4.3 The marketing mix: product and packaging, price, promotion, distribution

• demonstrate knowledge and understanding of the importance of product and packaging in the marketing mix.

• explain the meaning of product; • distinguish between types of product; • discuss the features that will make a product successful; • distinguish between:

- brand name, - brand loyalty, - brand image;

• discuss the functions of packaging; • demonstrate an understanding of the product life cycle.




4.3 The marketing mix:

product and packaging, price, promotion, distribution

• understand the importance of the

price of a product on consumers and firms.

• explain the following pricing strategies:

- cost plus pricing, - penetration pricing, - price skimming, - competitive pricing, - promotional pricing;

• define demand and supply; • demonstrate the principle of equilibrium price (analyse simple market

situations with changes in supply and demand); • describe the causes of changes in demand and supply conditions and

analyse such changes to show the effect on prices (demonstrate and calculate elasticity of demand and supply);

• understand the significance of price elasticity of demand (diagrams and calculations are not required, only a descriptive analysis).

• understand the importance of

promotion in a business.

• distinguish between informative and persuasive advertising; • classify the types of advertising media (including E-Commerce); • briefly explain the requirements for effective advertising (AIDA); • explain different ways of how firms promote their products; • explain public relations.

• understand the importance of making a product available where customers expect to find it (place).

• define distribution; • explain different channels of distribution and E-Commerce; • explain why the manufacturer may use either direct channels or indirect

channels of distribution; • explain methods of transporting goods.

• acquire knowledge of how firms develop marketing strategies involving the marketing mix.

• define marketing objectives; • draw up a marketing plan (involving the elements of the marketing mix).




4.4 Deciding on the scale of

operations, and location

• understand how firms use resources to

produce goods and services and the influence of changes in technology.

• explain the meaning of:

- production, - productivity;

• explain the effects that HIV and AIDS can have on productivity; • explain the role of women in production; • differentiate between methods of production:

- job production, - batch production, - flow production;

• explain how changes in technology have influenced production; • explain: quality control, stock control, lean production; • draw a graph to explain how stock levels can be managed effectively; • demonstrate understanding of the general idea of scale of operation and

the economies / diseconomies associated with scale.

• acquire knowledge of factors influencing location.

• comment upon location factors with particular reference to particular firms/industries (manufacturing business, retailing business, service business);

• explain factors which influence firms to relocate either at home or abroad.


MODULE 5: WHY AND HOW DO GOVERNMENT AND THE COMMUNITY INFLUENCE BUSINESS ACTIVITY? TOPIC GENERAL OBJECTIVES


5.1 The reasons for regulation of business activity

• understand the role of the State in regulating business activity.

• list the social and economic objectives of the government; • discuss in general terms why the government needs to intervene in

business activity; • discuss the idea of social costs and the concept of cost-benefit analysis in

general terms (the treatment should be entirely descriptive); • apply the concept descriptively to the resolution of simple social cost and

social benefits situations; • discuss how the government can protect the environment against harm

(protection against pollution, protection against the exploitation of non-renewable resources).

5.2 Aiding and influencing the

producer

• understand the role of the State in assisting producers.

• discuss why and how the government may intervene in the production process: location decisions (local, national, international), production and relationships with other firms;

• discuss why and how the government may intervene in assisting businesses: regional assistance, small firms, and exporting of goods and services;

• discuss barriers to International Trade and the calculation of exchange rates (currency conversion between two currencies);

• discuss the implications to Namibia of being a member of SADC.

5.3 Aiding and protecting the employee

• understand the role of the State in protecting the employee

• discuss why the government may protect the employee; • discuss how the government may protect the employee (in both cases

reference must be made to: working conditions, social security, employment contracts, health and safety, redundancy, minimum wages, unfair labour practices);

• discuss how the government can protect people with HIV and AIDS at the workplace.


MODULE 5: WHY AND HOW DO GOVERNMENT AND THE COMMUNITY INFLUENCE BUSINESS ACTIVITY? TOPIC GENERAL OBJECTIVES


5.4 Persuading and protecting

the consumers and providers of capital

• understand the role of the State in

protecting the consumers and providers of capital.

• discuss the aims of private organisations and pressure groups in

protecting the interests of consumers; • discuss why and how the government may intervene in protecting the

interests of those who lend and provide capital.


MODULE 6: ENTREPRENEURSHIP TOPIC GENERAL OBJECTIVES


6.1 What is an entrepreneur?

• demonstrate an understanding of the

importance of efficient management of a business enterprise as a prerequisite for economic development in Namibia.

• discuss the ideas and characteristics, advantages and disadvantages of an

entrepreneur (reference should be made to the formal and non-formal sectors);

• discuss how to become an entrepreneur (need to identify a business idea, types of business, local community, competition, market, goals, risk taking, judgement in business situations and a business plan).

6.2 Types of enterprises

• acquire knowledge of different types of business enterprise

• list five basic types of enterprises (primary, manufacturing, wholesale, retail and service);

• explain the differences between these types of enterprises.

6.3 A business plan

• understand the importance of a business plan and how to draw one up

• define a business plan; • list and explain the elements and uses/applications of a business plan

(goals, product, consumer, market research, marketing, finance); • explain the importance of using the SWOT analysis • develop a detailed business plan.


MOLDULE 7: WHY IS INFORMATION IMPORTANT FOR DECISION MAKING? THIS MODULE (AREA) IS IMPORTANT FOR THE WHOLE CURRICULUM. IT SHOULD NOT BE DEALT WITH IN ISOLATION, BUT INTEGRATED IN ALL MODULES (AREAS) TOPIC GENERAL OBJECTIVES


7.1 Nature and presentation of

statistical information

• demonstrate how information as

obtained from various sources can be used to assist management in decision making

• discuss the nature and importance of the presentation of statistical

information.

7.2 Sources of information • acquire knowledge on identifying appropriate sources of information

• identify appropriate sources of information for interested parties, e.g. financial statements, sales records, questionnaires.

7.3 Present and analyse

Information

• acquire knowledge on how to analyse and present information

• present and analyse information, analyse and use information to advise and make decisions;

• present and disperse information for businesses using: graphs, pie charts, bar charts, tabulation.


5. ASSESSMENT OBJECTIVES

The four assessment objectives are: A Knowledge with understanding B Application C Analysis D Judgement and decision making A description of each assessment objective follows. A Knowledge with understanding

Learners should: 1. demonstrate knowledge and understanding of business facts, terms, concepts and

conventions appropriate to the syllabus; 2. demonstrate knowledge and understanding of theories and techniques commonly

applied to or used as part of business behaviour. The curriculum objectives define the factual material that learners may be required to recall and understand. Questions testing these objectives will often begin with words such as: define, describe, explain, list, outline, state.

B Application Learners should: 1. apply their knowledge and understanding of facts, terms, concepts and conventions

to business problems and issues; 2. apply their knowledge and understanding of theories and techniques commonly

applied to business problems and issues. Questions testing these objectives will often begin with words such as: calculate, comment, describe, determine, explain, illustrate.

C Analysis Learners should: 1. select, order, analyse and interpret information, in narrative, numerical and graphical

forms, using appropriate techniques; 2. use business data, recognise patterns in such data, and deduce relationships. Questions testing these objectives will often contain words such as :analyse, calculate, compare, contrast, distinguish, examine.

D Judgement and decision making Learners should: 1. distinguish between evidence and opinion, make reasoned judgements and

communicate them in an accurate and logical manner; 2. recognise that business theory is subject to various limitations and uncertainties; 3. plan to carry out appropriate enquiries in order to make judgements and decisions. Questions testing these objectives will often contain words such as: choose, assess, consider, discuss, evaluate, suggest.


6. SCHEME OF ASSESSMENT

All learners will take Paper 1 and Paper 2. Differentiation All learners are expected to pursue the same curriculum objectives, and differentiation will be by outcome.

Paper 1 Written 2 hours 80 marks 44% weighting A paper containing short-answer questions and structured/data response questions. Learners will be expected to answer four compulsory questions (each worth 20 marks) drawn from the whole learning content, covering all four Assessment Objectives (A to D) equally – i.e. 25% for each Assessment Objective (See Specification Grid). Paper 2 Written 2 hours 30 minutes 100 marks 56% weighting Learners will be expected to answer five compulsory questions (each worth 20 marks) arising from case studies. The first four questions are designed to test insight regarding the case study (or case studies) given. Question 5 will require a brief written report based on the information provided in the case study. The paper tests primarily, but not exclusively, Assessment Objective D (Judgement and decision making) – 30 marks (See Specification Grid).


7. SPECIFICATION GRID

The relationship between assessment objectives and components of the scheme of assessment is shown below.

Assessment Objectives Paper 1 (marks)

Paper 2 (marks)

Overall weighting of papers

A Knowledge with understanding

20

20

22%

B Application

20

25

25%

C Analysis

20

25

25%

D Judgement and Decision making

20

30

28%

Total marks

80

100

100%

Weighting

44 %

56%

100%

The assessment objectives are weighted to give an indication of their relative importance. They are not intended to provide a precise statement of the number of marks allocated to particular assessment objectives


8. GRADE DESCRIPTIONS

Grade descriptions are provided to give a general indication of the standards of achievement likely to have been shown by candidates awarded particular grades. The grade assessment will depend, in practice, upon the extent to which the candidate has met the assessment objectives overall. It might conceal weakness in one aspect of the examination which is balanced by above average performance in some other aspect. Learners will be graded on a scale of 1 to 4. The descriptors for judgmental thresholds (1, 3, 4) are given below. At Grade 1 the learner will be expected to show: A Knowledge with understanding

1. an excellent ability to identify detailed facts and principles in relation to the content of the syllabus.

2. an excellent ability to describe graphs, diagrams and tables. 3. an excellent ability to define the concepts of the syllabus.

B Application

1. a thorough ability to apply knowledge and understanding, using terms, concepts, theories and methods effectively to address business problems and issues.

2. an excellent ability to apply this information in a logical and well-structured manner to illustrate the application of a piece of economic analysis to a particular situation.

C Analysis

1. a thorough ability to classify and comment on economic information. 2. an excellent ability to distinguish between evidence and opinion.

D Judgement and decision making

1. a good ability to discriminate between complex and varied information and to distinguish clearly between facts and opinions.

2. a good ability to make clear, reasoned judgements and communicate them in an accurate and logical manner.

3. a good ability to make rational and consistent choices in matters where economic influences are at work.

At Grade 3 the learner will be expected to show: A Knowledge with understanding

1. a good ability to identify detailed facts and principles in relation to the content of the syllabus.

2. a good ability to describe graphs, diagrams and tables. 3. a good ability to define the concepts of the syllabus.

B Application

1. a good ability to classify and comment on business information. 2. a good ability to apply this information to illustrate the application of a piece of

economic analysis to a particular situation. C Analysis

1. a good ability to use and comment on information presented in various forms. 2. a sound ability to apply and make reasoned judgements.

D Judgement and decision making

1. a sound ability to discriminate between more complex and varied information and to distinguish clearly between facts and opinions.

2. a sound ability to evaluate and make reasoned judgements. 3. a sound ability to make rational and consistent choices in matters where

economic influences are at work.


At Grade 4 the learner will be expected to show: A Knowledge with understanding

1. some basic ability to identify detailed facts and principles in relation to the content of the syllabus.

2. some ability to describe graphs, diagrams and tables. 3. some ability to define the central concepts and ideas of the syllabus.

B Application

1. some ability to classify data and comment on economic information. 2. some basic ability to apply the tools of economic analysis to particular

situations. C Analysis

1. some basic ability to use and comment on information presented in various forms.

2. some ability to apply and make reasoned judgements. D Judgement and Decision making

1. a limited ability to discriminate between more complex and varied information and to distinguish clearly between facts and opinions.

2. a limited ability to make rational and consistent choice in matter where economic influences are at work.


9. GLOSSARY OF TERMS

What follows are words frequently used in NSSCH Business Studies which may present difficulties in understanding/applying. acquisition when one business buys out the owners of another

business which then becomes part of the ‘predator’ business, i.e. the firm has taken over. Also called take-over

AIDA model a simple way of planning an advert’s design: it stands for attention, interest, desire, action

annual general meeting (AGM) a legal requirement for all companies; all shareholders may attend. They vote on who they want to have on the board of directors for the coming financial year and on other issues raised by the board or themselves,

appraisal method of assessing the effectiveness of an employee, usually involving an interview with a senior member of staff

arbitrator a person who listens to both sides in an industrial dispute (trade union and management) and then gives a ruling of what the arbitrator thinks is fair to both sides

balance of payments the record of the difference between a country’s

exports and imports brand image where a product is given an image or identity to

distinguish it from its competitors’ brands brand loyalty when customers keep buying the same brand again

and again instead of choosing a competitor’s brand brand name the unique name of a product that distinguishes it

from other brands break-even the quantity of sales at which total costs equals total

revenue business decisions these include strategic decisions (very important

ones which can affect the overall success of the business), tactical decisions (those which are taken more frequently and which are less important) and operational decisions (day-to-day decisions which will be taken by lower-level managers)

cash flow forecast an estimate of future inflows and outflows of a

business, usually on a monthly basis centralised a management structure in which most decisions are

taken at the centre, or at higher levels of management chain of command a structure within an organisation which allows

instructions to be passed down from senior management to lower levels of management

closed shop all employees must be a member of the trade union conglomerate integration a firm mergers with or takes over another firm in a

completely different industry. Also known as diversification

consumer panels groups of people who agree to provide information about a specific product or general spending patterns over a period of time

contribution the selling price of a product less its variable cost corporation tax the tax paid by limited companies on their profits cost-benefit analysis the valuation by a government agency of social and

private costs and benefits resulting from a decision


craft union a trade union which represents a particular type of skilled worker

de-industrialisation occurs when there is a decline in the importance of

the secondary (or manufacturing) sector of industry in a country

decentralised a management structure in which many decisions are not taken at the centre of the business but are delegated to lower levels of management

delegation giving a subordinate the authority to perform particular tasks (NB it is the authority to perform a task which is being delegated – not the final responsibility)

desk research the use of information that has already been collected and is available for use by others. Also called secondary research

development area a region of a country where businesses will receive financial support to establish themselves (often regions of high unemployment)

direct costs costs that can be directly related to or identified with a particular product or department. These costs vary with the number of items produced or sold and is also known as variable costs

direct taxes taxes paid directly from incomes, such as income tax or profits tax

diseconomies of scale the causes of average cost increases which a business experiences as it grows beyond a certain scale

dividends payments made to shareholders from the profit of a company after it has paid corporation tax

division of labour when the production process is split up into different tasks and each worker performs one of these tasks. Also known as specialisation

economic growth when a country’s gross national product increases –

more goods and services are produced than in the previous year

economies of scale the causes of average cost reductions which a business experiences as it increases its scale of operations

employers’ association a group of employers join together to give benefits to their members

exchange rate appreciation when the value of a country’s currency rises compared to other currencies

exchange rate depreciation when the value of a country’s currency falls compared to other currencies

exchange rates the price of one currency in terms of another, e.g. £1:N$ 12.5

external benefits the gains to society resulting from a business decision. Also known as social benefits

external costs the cost paid by the rest of society, rather than the business as a result of a business decision. Also known as social costs

external growth occurs when a business takes over or merges with another business. Often called integration as one firm is integrated into another one

field research the collection and collation of original data via direct

contact with potential or existing customers. Also called primary research


final accounts accounts produced at the end of the financial year giving details of the profit or loss made over the year and the worth of the business

fixed costs costs which do not vary with the items produced or sold in the short term. Also called indirect costs or overheads

forecasts predictions of the future e.g. likely future changes in the size of the market

freight term used to describe bulk goods or products while they are being transported

fringe benefits non-monetary rewards given to employees

general union a trade union which represents workers (often unskilled but also semi-skilled) from a variety of trades

globalisation increase in world wide competition between businesses

go slow a form of industrial action when the employees do their normal tasks but much slower than usual

haulage the transport of bulk goods or products; which usually

refer to road transport but can also refer to rail transport

horizontal integration one firm mergers with or takes over another one in the same industry at the same stage of production

indirect taxes taxes added to the prices of goods and services. Tax

payers pay the tax as they purchase the goods or services, e.g. value added tax (VAT)

induction training introduction given to a new employee, explaining the firm’s organisational structure, activities and procedures

industrial union a trade union which represents all types of workers in a particular industry

inflation the increase in the average price level of goods and services over time

informative advertising advertising where the emphasis of advertising or sales promotion is to give full information about the product

internal growth occurs when a business expands its existing operations

job analysis the responsibilities and tasks relating to a job are

identified and recorded job description document which outlines the responsibilities and

duties expected to be carried out by someone employed to do a specific job

job production a single product is made at a time, usually to the customer’s exact specifications

job satisfaction enjoyment derived from feeling that you have done a good job

job specification document which outlines the requirements, qualifications and expertise required from a person to do a specific job

limited liability where the owners of a company cannot be held

responsible for the debts of the company they own line managers managers with direct authority over subordinates in

their department; they are able to take decisions in their departmental area


line of best fit a line drawn through a series of points, e.g. sales data, which best shows the trend of that data

liquidity the ability of a business to pay back its short-term debts

lock-out employees are locked out of their workplace marginal costs extra costs which a business will incur by producing

one more unit of output market-orientated a description applied to a business in which market

research is carried out to find out consumer wants before the product is developed and produced

market segmentation the market is divided up into groups of consumers who have similar needs

marketing the management process which identifies consumer wants and anticipates their future wants

merger when the owners of two businesses agree to join their firms together to make one business

monopoly a business which controls all of the market for a product

multinational business those with factories, production or service operations in more than one country. Also known as transnational businesses

net cash flow the difference, each month, between inflows and

outflows no-strike agreement trade unions and management agree to have pay

disputes settled by an independent arbitrator instead of taking strike action

non-co-operation a form of industrial action when employees refuse to comply with new working practices

organisational structure the levels of management and divisions of

responsibilities within an organisation overtime ban a form of industrial action when employees refuse to

work longer than their normal working hours packaging the physical container or wrapping for a product, also

used for promotional purposes persuasive advertising advertising or promotion which tries to persuade the

consumer that they really need the product and should buy it

picketing a form of industrial action, employees who are taking action stand outside their workplace to prevent or protest at delivery of goods, arrival and departure of other employees

planning permission when a government body allows a business to build a factory or office in a particular location

private benefits the financial gains made by a business as a result of a business decision

private costs the costs of a business decision actually paid for by the business

product life cycle the stages a product will pass through from its introduction, through its growth until it is mature and then finally declines

product-orientated a description applied to a business whose main focus of activity is on the product itself. See also market- orientated

productivity agreement workers and management agree to an increase in benefits, in return for an increase in productivity


prospectus a detailed document issued by the directors of a company when they are converting it to public limited status. It is an invitation to the general public to buy shares in a newly formed plc

public relations policies, strategies or measures taken to promote a good image for a company and/or its products

questionnaires a set of questions to be answered as a means of

collecting data for market research quota sample people selected on the basis of certain characteristics

(e.g. age, gender, income) as a source of information for market research

random sample people selected at random as a source of information

for market research redundancy when employees lose their jobs because they are no

longer needed, rather than due to any aspect of their work being unsatisfactory

revenue the income during a period of time from the sale of goods and services

revenue expenditure money spent on day to day expenses which does not involve the purchase of a long-term asset, e.g. wages and rent

shareholders the owners of a limited company; they have bought

shares which represent part ownership of a company single union agreement a firm will deal only with one particular trade union

and no other span of control the number of subordinates working directly under a

manager staff managers specialist advisers who provide support to line

managers and to the board of directors strike a form of industrial action where employees refuse to

work target audience people who are potential buyers of a product or

service target market the group of people for whom a particular product is

designed trade union a group of workers join together to ensure their

interests are protected trend the underlying movement or direction of data over

time unemployment when people who are willing and able to work but

cannot find a job unit cost the cost of producing one item, i.e. total cost of

production divided by total output vertical integration when one firm merges with or takes over another one

in the same industry but at a different stage of production. Vertical integration can be forward (a firm integrates with another firm which is at a later stage of production) or backward (a firm integrates with another firm at an earlier stage of production, i.e. closer to the raw materials supplies

white-collar union a union which represents non-manual workers (office

workers, management and professional staff)


work to rule a form of industrial action when rules are strictly obeyed so that work is slowed down

worker participation the employees contribute to decision-making in the business


ANNEXURE A: EXPLANATORY NOTES TO TEACHERS

Teachers should note that this syllabus (NSSC Higher Level) seems the same as that for NSSC Lower Level, but there are differences in these two syllabi. This syllabus (NSSC Higher Level) allows for teaching at a more advanced level whereas the NSSC Lower Level allows for teaching at a more elementary level. Thus some topics/subtopics are to be taught in greater detail in this (NSSC Higher Level) syllabus than in the NSSC Lower Level syllabus. Therefore, some topics and/ or subtopics to be taught in the NSSC Lower Level syllabus should not be taught in this (NSC Higher Level) syllabus, e.g. scarcity and opportunity cost as well as break-even charts, to mention but a few. Teachers are therefore encouraged to compare the two syllabi before commencing with their teaching, in order to know which topic is to be taught at which level and into how much depth. Teachers should also take note of the Assessment Objectives and more specifically pay attention to their weightings. In Paper 1 the weighting for all four Assessment Objectives are the same but in Paper 2 more emphasis is placed on the more complicated Assessment Objective D (Judgement and decision making) and less emphasis on Assessment Objective A (Knowledge with understanding). Candidates should be encouraged to write in context, especially in Paper 2 where most of the questions are based on the information provided in the case studies, or else they will lose marks. It must also be stressed that this (NSSC Higher Level) syllabus is designed for Namibian learners, and as such, the learning content should be taught in the Namibian context, thus explanations and examples must be responsive to Namibia, e.g. trade unions, the role of the government and the community, entrepreneurship, scale of operations, locating factors, exchange rates, to mention but a few. Learners should from the very start be made aware of key examination words to enable them to know how to answer a specific question in a test or examination. The following guide should help Teachers. Key examination words candidates need to know State or give As in ‘State three factors which might influence the price of a product.’ These two words mean ‘write down without explaining or expanding upon’ three factors which might influence the price of a product. List As in ‘List four reasons why one firm may merge with another.’ This is similar to ‘state’. Write down, without discussing or expanding upon, four reasons why firms may merge. Candidates could number their list 1-4. Too often candidates write far too much for both ‘state’ and ‘list’ questions. Explain As in ‘Explain your answer’. Here, the examiner is asking the candidate to give more detail than just listing or stating points. A common example of this type of question would ask the candidate to ‘State and explain three advantages to a business of developing a new product’. Here the candidates are expected to list the three factors which they consider to be advantages and then go on to explain why they think these are advantages to the business. One of the three advantages the candidates give in their answer might be: ‘New products will take the place of old products in the market’. The explanation could be: ‘If a business develops new products then these products can take over from older products, the sales of which may be falling due to loss of


consumer interest.’ The candidates will then need to think of two other advantages and to list and explain them in the same way. Analyse As in ‘Analyse the impact of a new competitor opening a shop close to a business which sells fresh flowers’. This also requires an explained answer. Candidates will have to examine or explain how a new competitor will affect an existing business. A possible answer could be: ‘As the new competitor is trying to get established, it may offer fresh flowers at very low prices to start with. This could force the existing business to lower prices too. Sales could increase but the profit on each sale will be less than before.’ Evaluate As in ’Evaluate the arguments for and against the business locating its factory in the south of the country.’ This is asking the candidates to show advanced skills. Candidates must first list and explain/analyse the advantages and disadvantages. Then candidates should weigh them and come to a final recommendation. The final sentence may, for example, read: ‘On the one hand, there are advantages to building in the south, such as cheap land. On the other hand, there are disadvantages, such as distance from consumers. However, on balance I am of the opinion that the factory should be built there (in the south of the country).’ Other key examination words include: Define, describe, outline, calculate, comment, determine, illustrate, compare, contrast, distinguish, choose, assess, consider, suggest, discuss, etc. Writing a report The last question in Paper 2 requires learners to write a brief report. Reports are frequently used in business. They contain a great deal of data and discussion on important issues. The following, or very similar format should be followed. If candidates do not use such a format in the examination, they will lose marks. Introduction Explain the purpose or the terms of reference of the report. Findings This is the main part of the report. It should contain the main evidence and arguments of the report. The sources of data used and methods of data collection should be stated. Conclusion Candidates should bring together the findings of the report and form a clear conclusion. Recommendation The report should end with a clear final recommendation which is based on analysis of the findings.

The National Institute for Educational Development P/Bag 2034 Okahandja NAMIBIA Telephone: +64 62 502446 Facsimile: + 64 62 502613 E-mail: [email protected] Website: http://www.nied.edu.na © NIED 2005

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