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Page No.
The rights of the consumer 2-4
QUESTION 1
Buying and selling
The quality of goods
Production of goods and services
The consumer and the retailer
1
NAME : EKTHA NANKOOMAR STUDENT NUMBER : 48325961
MODULE CODE: PST 311 L ASSIGNMENT 2
QUESTION 1
1.1 The rights of the consumer
Every time that goods are bought or sold, the buyer and the seller have to reach an
agreement which is known as a sales agreement or sales contract
Before a sales agreement is binding on the seller and the buyer, they have to agree
on the following:
The article which is bought
The price to be paid
If goods are bought to be transported and a freight rate is charged, the buyer and
seller should agree if the freight rate should be included in the price. Following
quotations of prices in sales contracts:
Local price. This price does not include transport costs. The buyer has
to pay the transport costs.
Free on rail (F O R). The seller pays the transport costs to the sellers
station.
Rail charges paid. The price includes the rail charges, which the seller
pays
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NAME : EKTHA NANKOOMAR STUDENT NUMBER : 48325961
MODULE CODE: PST 311 L ASSIGNMENT 2
In order to provide for our needs, goods have to be produced. These days we all do only
those tasks that we have been trained for. We are paid in money for doing these tasks and
we use the money that we earn to buy goods to satisfy our needs and wants.
Retailers fulfill a very important function in satisfying human needs because they handle the
collecting, storage and distribution of the articles that consumers need. Listed below are
examples of some of the important services rendered to consumers.
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NAME : EKTHA NANKOOMAR STUDENT NUMBER : 48325961
MODULE CODE: PST 311 L ASSIGNMENT 2
Retailers do not render their services free of charge. Consumers have to pay for their
services because retailers have a right to make a profit as a reward for their services
rendered.
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NAME : EKTHA NANKOOMAR STUDENT NUMBER : 48325961
MODULE CODE: PST 311 L ASSIGNMENT 2
QUESTION 2
2.1 Kind of business
It is known that some entrepreneurs are satisfied with less profit than others. This is linked
closely with the kind of business they have. For example, for grocery store or fashion shop,
and to whether the goods are in a constant demand. The demand for groceries in this case
will be greater than the demand a fashion items.
Due to the uncertainty of economic life there can be no question of general rate of profit. In
well established industries that are subject to lower fluctuations, uncertainty in small and
pure profits are inclined to be low. The greater the uncertainty, the greater the expectations
of profit but also the expectations of loss. The element of risk is always high when new
products are launched, but expectations of high profits often move people to invest capital
in those production areas.
The profits of similar businesses which produce under similar conditions, do not normally
differ much from each other. If differences between similar businesses occur, it would be
due to competent and efficient running of individual businesses, which includes good
organisation, optimising the use of manpower and materials, keeping unit costs down, etc.
The total profit is determined by turnover. If the market is large, a lower profit can be made
on each unit which will increase the turnover and lead to larger total profit. A high turner
usually leads to a lowering of unit costs.
Some of the most important factors which influence profits. During prosperity profits are
usually high and during depressions are the order of the day. One of the reasons for this is
because prices usually rise and drop faster than costs.
5
NAME : EKTHA NANKOOMAR STUDENT NUMBER : 48325961
MODULE CODE: PST 311 L ASSIGNMENT 2
QUESTION 3
3.1 Cash flow plan
A cash flow plan shows you how much cash you can expect to come into your business and
how much cash you expect to go out your business.
The cash budget is an essential instrument in the hands of the management of a business,
enabling them to ensure that funds are available to meet the obligations of the business. If
the business has insufficient funds to meet these obligations then there could be serious
implications for the business. A cash budget indicates the financial implications of the
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NAME : EKTHA NANKOOMAR STUDENT NUMBER : 48325961
MODULE CODE: PST 311 L ASSIGNMENT 2
planned activities for the budgeting period and therefore serves as a good indication of
whether to cash available will be too little or too much. The budgeting period is normally
one year, divided into periods of one month each.
A balance sheet
The bank balance at the beginning of the budget period
Expected cash and credit sales
Payments from debtors
Credit conditions for debtors
Expected cash and credit purchases of trading stock
Payments to creditors
Credit conditions for creditors and credit purchases
Other specified payments and receipts.
Estimated cash to be received from debtors for cash sales and collections for credit
sales during the month
Estimated cash to be paid for cash purchases and the payment of credit purchases to
creditors for a particular month.
The bank balance at the beginning of the month
The estimated bank balance of the end of the month (this closing balance is the new
opening balance for the following month).
The human resources plan is a description of how many staff you intend employing, and
where, why and how you intend recruiting them. Human resource planning serves as a link
between human resource management and the overall strategic plan of an organization.
The aim of human resource is to maximize employee performance in service of the
employers strategic objectives. Human resources focuses on the management of people
within organizations, focusing on policies and systems.
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NAME : EKTHA NANKOOMAR STUDENT NUMBER : 48325961
MODULE CODE: PST 311 L ASSIGNMENT 2
QUESTION 4
An intrinsically motivated person feels the need to perform because he/she finds the task at hand
interesting and informative and because it leads to self-actualization. A person who interested in a
particular task will also be motivated to undertake the task and carry it out without any
encouragement and coercive pressure from outside. An intrinsically motivated person therefore
derives more satisfaction from success at studying than from the idea of merely achieving
something, like passing matric.
People who are extrinsically motivated act because something or someone other than themselves
has prompted them, or will reward them, or even because they want to merely impress or satisfy
someone other than themselves. In this case, the individual is compelled to act. The individual shows
no enthusiasm and has to be admonished continually to perform a task. An extrinsically motivated
person exhibits no initiative or creativity.
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NAME : EKTHA NANKOOMAR STUDENT NUMBER : 48325961
MODULE CODE: PST 311 L ASSIGNMENT 2
REFERENCES
PST311L Study Guide for Economic Literacy and Entrepreneurship
http://en.wikipedia.org/wiki/Strategic_human_resource_planning
http://en.wikipedia.org/wiki/Human_resource_management