Grade 11 Term 3: Entrepreneurial Qualities and Success Factors

Q1 Calculated risk

1

Thandi has R2 000 available for her lunch business. Several customers ask for deliveries, but demand is uncertain. Which decision best applies calculated risk-taking? A. Borrow R20 000 immediately to buy a delivery vehicle. B. Spend R300 on a one-week delivery trial, record orders and costs, then decide whether to expand. C. Reject deliveries because every risk must be avoided. D. Spend the full R2 000 on delivery equipment without checking demand.

B. A limited trial tests demand and costs while restricting possible losses. Calculated risk-taking requires evidence and manageable exposure; neither avoiding every risk nor committing all available funds demonstrates it. Reasoning check: If the trial attracts many orders but delivery costs exceed the extra income, should Thandi expand? Explain why not.

Q2 Adaptive perseverance

1

Sipho's repair business receives few repeat customers. He works longer hours, but customers still complain about late completion. Which response best combines perseverance with an appropriate improvement? A. Continue unchanged; working longer always guarantees success. B. Stop the business immediately because complaints prove it cannot succeed. C. Analyse the delays, set realistic completion dates and check whether repeat business improves. D. Advertise faster service while keeping the same delays.

C. Perseverance means sustained effort informed by evidence, not repeating an ineffective practice. Addressing delays and monitoring repeat customers connects improvement to the actual cause of dissatisfaction. Reasoning check: Would advertising alone fix the problem if repairs remain late? Explain the likely effect on trust.

Q3 Profitability evidence

1

Lebo's bakery earns R10 000 in monthly sales. All business costs for that month total R11 500. Customer numbers have increased. Which conclusion is best supported? A. The bakery is profitable because it earns R10 000 in sales. B. More customers prove the bakery is financially sustainable. C. The bakery makes a R1 500 profit because costs exceed sales. D. The bakery makes a R1 500 loss; customer growth alone does not establish financial success.

D. Profit = revenue minus total costs = R10 000 - R11 500 = -R1 500, a loss. Customer growth is a useful success indicator, but it cannot replace evidence of profitability. Reasoning check: If sales stay at R10 000 and total costs fall to R9 000, what changes? Explain why the business now earns R1 000 profit.

Q4 Management priorities

1

A school-uniform business has many paid orders, but poor records cause missed deadlines and dissatisfied customers. Its owner has limited time. Which action should take priority? A. Establish an order register, realistic deadlines and daily progress checks. B. Seek more orders before dealing with the existing delays. C. Give all customers discounts but leave the order process unchanged. D. Blame employees without investigating where orders are delayed.

A. Good management tackles the identified operational weakness. Reliable records and progress checks support timely delivery and customer retention; acquiring more orders first could worsen the existing failure. Reasoning check: If demand doubles but record-keeping stays poor, what is likely to happen to customer confidence? Justify your prediction.

Q5 Sustainable success

1

A clothing business is profitable. Its owner wants lasting success. Which proposal best supports profitability, a loyal customer base and continuity? A. Sell below total cost indefinitely to attract the most customers. B. Delay supplier payments to finance expansion, although this risks losing essential supplies. C. Maintain consistent quality, review prices against costs and honour supplier agreements. D. Reduce quality without telling customers to increase this month's profit.

C. Long-term success requires several connected indicators: viable margins, customer trust and dependable supplies. Short-term sales or profit gained by persistent losses, unreliable payments or concealed quality cuts can undermine continuity. Reasoning check: Would more customers make option A sustainable if every sale remains below total cost? Explain using the relationship between sales and losses.