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MINISTRY OF EDUCATION AND TRAINING

Business Education

MOHLOLING OA THUTO

c

2004

Acknowledgement

This programme was developed by Commercial Subjects Panel of the National Curriculum Development Centre. The National Curriculum Development Centre would like to thank the following persons for the contribution in the development of this programme:

Panel Members Mr. Malefetsane E. Nketekete (Chair person - NCDC) Mrs. ‘Mankoneng Jessie Mrs. ‘Maletele Motebang (NUL) Mr. Raphooka Matooane (LCE) ‘Mathabang Moroj ele (Makoanyane High School) Mr. Teba Ramahapu (ECOL) Mrs. Ntholelo Nonyane (St. James Anglican High School) Mr. Maloko Tau (Lesotho High School) Mr. Joseph Lebusa ( IEMS) Mr. Makara Rampeta (Sacred Heart High School) Mr. Joseph Molise (Dahon High School) Ms. Belina Moeletsi (Likuena High School)

(Secretary- Central Inspectorate)

Co-opted Members Mrs. ‘Matiisetso Ramothamo (Lesotho High School) Mr. Motlalemang Sefefo (Cana High School) Mr. Martin Makoa (St. John’s High School Mr. John Hlongwane (Hlotse High School)

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@National Curricu pment Centre 2Om

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______ . Identifying different types of human needs Show understanding of how business satisfy human needs

SCOPE AND SEQUENCE

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Identify/mention the rights of consumers. Describe mechanisms that can be employed in addressing the rights of consumers when violated. Identify rational ways in which buying decisions can be reached.

. Distinguish between barter system and money economy

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Identify different types of money. Describe four functions of money.

______ .......................................................................................................................................... . Distinguish between stages of production factors of production. Describe/explain methods of production Explain different modes of production. Describe/explain division of labour . Explain the advantages and disadvantages of

Describe/explain four factors of production Explain the concept of scarcity as it relates to

division of labour. Distinguish between consumer and capital goods Identify characteristics of the entrepreneur. Explain the importance of entrepreneurship.

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. Identify the following: manufacturing, . Describe the bc t ions of wholesalers, retailers wholesaling, retailing, service and franchising. and manufacturers.

. Identify different types of wholesalers and retailers.

__---- ...................... 9 Identify the following: sole trader,

partnership, companies and cooperatives in

.................................................................................................................. . Identify advantages and disadvantages of sole trader, partnership, limited liability companies

Explain market research (its purpose, factws to consider) Identify the elements and explain the importance of a business plan.

Conceit: Factors considered when starting a . Identifjdexplain the following: location,

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_ _ _ _ _ _ ..................................... -_

capital and licence. Identifjdexplain the sources and importance of capital Show how the assets are acquired and their relationship with capital

Conceit: SupIortive Services I

___--- ___-- ............................... Identify different types of banks and their functions in relation to business Identify/explain the importance and types of transport Explain the importance of insurance to business Explain the importance of advertising

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................................................ Generate business idea from different sources such as common needs, problems, everyday activities, skills, magazines and newspapers, hobbies and trade shows. Conduct market research using observation and survey methods.

resale, governments, local and international markets . Draw up a simple business plan.

Distinguish between consumer, industrial,

business Identify /describe procedures followed in acquiring a business licence in Lesotho. Explain the importance of registering fixed assets.

.............................................. Identify types of cheques and their treatment. Explain reasons for dishonouring a cheque. Identify factors that influence the choice of mode of transport. Explain the principles of insurance. Explaidmention the advantages and disadvantages of advertising.

when choosine advertising medium. =

............................................. Identifjdmention the functions of the commercial bank IdentifyAist the advantages and disadvantages of various modes of transport Explain different types of insurances and risks. Identify different types of advertising. Describe differkt types of telecommunication

electronic and other recent svstems. --

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Explain the importance of warehousing. Explain the importance of communication. Identifjdmention services offered by post office.

_______ _________ . Determine a selling price of merchandise using a percentage mark-up and taking into consideration other factors namely cost, market price, market forces, quality and purchasing power of consumers.

THEME: BUSINESS MANAGEMENT

______-------------------------------------------------------------------------------------------------------------------------. Determine a price of a manufactured commodity and service.

------ ----- --- ----_------ a Identify source documents in recording

business transactions namely invoice, receipts, cheque, order, quotation, credit/debit note and rice list

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------------------------------------------------------------------------------------------------------------------. Distinguish between short-term and long-term Identify/explain advantages and disadvantages credit, as forms of buying and selling. of credit system

Concejt: Books of Accounts Record business transactions by means of a Record transactions in the cash book, sales and . Prepare supplementary cash book and bank

------- .......................................................................................................................................... double entry in the ledger (cash, credit, and bank transactions) returns allowances books using source a

purchases books, petty cash book, general and

documents. Post information from subsidiary books to the ledger.

Construct a trial balance from the ledger and

Identifjdmention errors which can be revealed by the trial balance and those which cannot be revealed by the trial balance.

reconciliation.

. Concejt: Trial Balance ------- ..........................................................................................................................................

Construct a trial balance from a ledger and given information. given information.

a

sole trader taking into account the adjustments:

opening stocks and depreciation of fixed

partnership business.

expenditure and balance sheet of a non-trading concern.

stock) and other allowances.

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BUSINESS EDUCATION

INTRODUCTION The pulpose of Business Education syllabus is that students should gain the knowledge of how the business is established and operated. The syllabus covers four interrelated areas. The areas are business environment, business formation, business management and evaluating business performance.

MISSION STATEMENT The organisation of the syllabus around these themes is intended to give students a holistic view of the nature of business. Business Education aims at equipping students with knowledge, attitudes and skills necessary for survival either as employed by others or self-employed. It aims at equipping students with entrepreneurial skills that are necessary for the development of enterprise culture.

SUBJECT AIMS After the completion of Business Education students are expected to have:

1. 2.

3.

4.

5 .

6.

7.

8. 9.

Acquired knowledge and understanding of the dynamic nature of business world. Acquired knowledge, skills and attitudes that would enable them interpret the trends and developments in the business world for decision-making. Have acquired an understanding of the role of business in socio-economic development. Acquired knowledge, skills and understanding of processes involved in establishing a business. Have developed understanding and appreciation of competitive nature of the

business world. Acquired knowledge, skills and attitudes in the management of business operations. Acquired knowledge and skills of evaluating business information for decision- making. Developed ability to apply entrepreneurial skills in non-business undertakings. Developed ability to apply concepts, principles and skills acquired to new situations.

SPECIFIC OBJETIVES (End of Course Objectives) After the completion of Business Education, students should be able to: 1 - Identify trends and factors within the environment that affect business. 2- Acquire knowledge, skills and attitudes important for establishing and managing a

business. 3- Acquire knowledge and attitude of the interdependence of business for the well

being of each other in promotion of economic growth. 4- Acquire the knowledge, attitudes and skills of general and specific management

functions of the business. 5- Acquire knowledge and skills of record keeping as a necessary management skill

for the effective running of the business. 6- Evaluate the performance of business activities by using different statements and

tools.

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APPROACHES

Business Education should be practically oriented. Students should sei 1 the application of what they learn in school in real life situation. Attempts ( ere possible) should be made to show the relationship of Business Education with ther subjects such as Agriculture, Home Economics, Typing, Woodwork, asic Handicrafts and others. To enhance the practicality of the subject projects shou be central to its teaching. Thus students should be given hands on experience by king

Group projects are strongly recommended. The projects should reflect the proc $s of starting, managing and evaluating a business. The following should be demons ted: . Show how the business idea was arrived at (this will include market res 4 arch

involved in different projects. i and business plan).

Show business records (ledger and other books).

Remarks as to whether a project has achieved its aims.

. Show aspects of management. .

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I I . Preparation of final accounts. I

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The subject should be presented in such a way that it reflects the business as a dhole. The diagram below reflects the general orientation which can be follow$P in teaching/learning the subject:

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Teaching methods used should encourage students to be acquainted with 1

affairs particularly those that affect business. Hence students should be encouri read newspapers and listen to radio and television. Teaching methods shou cater for different learning abilities of pupils.

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nent :d to also

ASSESSMI3NT

ASSESSMENT OBJECTIVES

The assessment objectives in Business Education have been grouped as follows:

1. Knowledge - Comprehension - Application 2. Analysis and Synthesis 3. Evaluation and Decision-making

1. Knowledge - Comprehension - Application (knowledge with understanding)

Students should be able to:

(a) Demonstrate knowledge of terms, facts, methods and procedures, concepts,

(b) Demonstrate understanding of knowledge through numeracy, literacy,

(c) Apply knowledge and information to various business situation and problems.

principles and techniques relevant to the syllabus.

presentation and interpretation.

Illustrative verbs that will be used to test these objectives will include: define, name, explain, prepare, rewrite, calculate, record, draw-up, describe, identi&.

2. Analysis

(d) Select data relevant to different business situations and problems. (e) Analyse, present and order information in written, numerical and in appropriate

accounting form.

Illustrative verbs that will be used in the test items will include: prepare, draw-up, compare.

3. Evaluations and Decision-making

,$I Apply facts, data and information in new situations in making judgement and

(g) Demonstrate ability to interpret and evaluate business information in order to

(h) Identi5 significant issues in business that can have a signifzcant impact on

decisions.

draw conclusions.

decisions.

Illustrative verbs that will be used in the test items will include: indicate, choose, decide, present, select, design, comment, and advise.

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Specification Grid

The assessment objectives are weighted as follows:

Paper Assessment Objectives

Knowledge, Comprehension and Analysis Evaluatior Decision - I:

1 70% 20% 10% 2 60% 10%

Application (Knowledge with underst andign)

INTERNAL ASSESSMENT

Practical projects, assignments, exercises and classroom tests should form pi teaching.

EXTERNAL EXAMINATIONS

Form C

1. Two papers shall be set.

Paper 1 (2% hours) - fifty multiple choice questions covering the whole syl accounting for

50 marks

Paper 2 (3 hours) - consists of three sections withfive compulsory question:

These sections are divided as follows: Section A : Three compulsory questions based on: Business Environ Starting and Business Management. Section B: One compulsory question asked from either evaluation performance of a trading or nun-trading concern. Section C: One question asked on projects done during the course period.

(150 marl I

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FORM A SYLLABUS

END OF LEVEL OBJECTIVES At the end of Form A students should be able to: 1. Identify types of human needs. 2. Distinguish between systems of exchange. 3. Explain how business satisfies human needs.

4. Explain factors of production. 5. Distinguish between stages of production. 6. Explain methods of production. 7. Exdain the division of labour.

8. Identify different types of business.

9. Identify different types of business ownership.

CONTENT 1. Human needs and business. 1.1 Types of human needs, material

1.2 Purpose of business. 1.3 Barter system and money

and service.

economv. 2. Production 2.1 Factors of production. 2.2 Stages of production. 2.3 Methods of production. 2.4 Division of labour. 3. Types of business 3.1 Manufacturing 3.2 Wholesaling 3.3 Retailing 3.4 Service 3.5 Franchising 4. Business ownership 4.1 Sole trader 4.2 Partnership 4.3 Companies 4.4 Cooperatives

NOTES

1.1 It is important to show the relationship between a business and satisfaction of human needs.

1.2 A brief discussion of the evolution of need satisfaction.

2.1 Refer to local examples.

3.1 Refer to the relationship between these types of businesses.

4.1 Briefly discuss the nature of each (membership, capital).

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1. Generate business ideas based on identified needs.

2. Mention different ways of finding information about the market.

3. Explain the purpose of the market research. 4. Identify factors to consider for market

research. 5. Explain the importance of a business plan. 6. Identify the elements of a business plan.

7. Identify factors that determine the lo-cation of the business.

8. Identify sources of capital. 9. Explain the-importance of capital. 10. Explain the importance of acquiring a business

licence.

1 1. Identify different types of banks and functions

12. Explain the-importance of transport. 13. Distinguish between different types sf

14. Explain the importance of insurance to a

15. Explain the importance of advertising. T T i ~ y - W e m t y p e s o - . ~

of commercial banks.

transport.

business. ~ - - ~~~ ~ ~~ ~~~~

5. Business idea 5.1 Generating ideas. 5.2 Market research. 5.3 Business plan.

6. Factors considered when starting a business. 6.1 Location 6.2 Capital 6.3 Licence 6.4 Acquisition of assets

7. Supportive services 7.1 Banking 7.2 Transport 7.3 Insurance 7.4 Advertising

5.1 Discuss different needs as sources of

5.2 IdentlJication of: market, competitors, ideas.

finance, management and employees, location and type of business.

6. I Refer to density of population, purchasing power, premises, competition, sources of supply, labour, legal requirements.

6.2 Briefly show the role of capital in business and sources.

6.3 Show the relationship between assets, liabilities and capital.

7.1 Brief discussion referring to types, functions(saving and lending) and sewices such as current account, savings account and deposit account.

7.2 Brief discussion of importance and types. 7.3 Refer to the importance (risks, premium,

agreement and compensation). 7.4 Refer to the importance of advertising

~ ZDi&ZalfJerent media. ~ ~ ~~~

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26. Identify factors to consider when pricing a commodity.

27. Identify different forms of buying and selling.

28. Identify source documents to record business transactions.

29. Record business transactions by means of a double-entry in the Ledger.

30. Construct a Trial balance fiom a ledger or

3 1. Prepare a Trading and Profit and Loss given information.

Accounts of a sole trader.

8. Pricing : merchandise

9. Forms of buying and selling. 9.1 Credit 9.2 Cash

10. Business documents 10.1 Invoice 10.2 Receipts 10.3 Cheque 10.4 Order 10.5 Quotation 10.6 Credit note and debit note 10.7 Price list

11. Ledger

12. Trial balance

13. Final accounts

8.1 Determine a selling price using a percentage mark-up. Discuss factors that influence pricing e.g. transport; tax etc.

9.1 Briefly refer to some advantages and disadvantages of credit sales and purchases.

9.2 Briefly refer to advantages and disadvantages of cash sales and wurchases.

10.1 Correlate with (9) and (1 1). Discuss the purpose and basic format of each document.

11.1 Correlate with (a) and (1 0).

13.1 Simple Trading and Proft and Loss account without returns and allowance.

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END OF LEVEL OBJECTIVES At the end of Farm B students should be able to: 1. Identify different types of money. 2. Describe four functions of money.

CONTENT 1. Monetary System

3. Explain scarcity in relation to factors of production.

4. Explain different modes of production. 5. Explain the advantages and disadvantages of

division of labour. 6 . Distinguish between consumer and capital

goods. 7. Identify the characteristics of an entrepreneur. 8. Explain the importance of entrepreneurship.

NOTES 9

9. Describe functions of different types of business units.

10. Discuss advantages and disadvantages of different types of business ownership.

1.1 Types of money 1.2 Functions of money

1 . 1 Revise the evolution of need satisfaction.

2. Factors of production 2.1 Scarcity of factors of production. 2.2 Modes of production: labour and

2.3 Division of labour 2.5 Capital goods and consumer

2.6 Entrepreneurship

capital intensive.

goods.

(a) Importance of entrepreneurship

4.2 Partnership 4.3 Limited liability companies

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I 1 1. Generate business ideas from different sources. 12. Conduct market research by using observations or

13. Distinguish between various types of market. 14. Draw up a simple business plan.

15. Explain procedures to be followed to

16. Explain obligations observed after acquiring a

17. Explain the importance of registering fixed assets

survey research method.

acquire a licence in Lesotho.

licence.

and their value.

18. Identify types of cheques and explain their

19. Explain reasons for dishonouring a cheque. 20. Identify factors that are considered when choosing

2 1. Explain the principles of insurance. 22. Explain advantages and disadvantages of

23. Explain factors that are considered when choosing

24. Explain the importance of warehousing 25. Explain the importance of communication. 26. Discuss services offered by post office.

treatment.

a mode of transport.

advertising.

advertising medium..

27. Determine a price of a commodity and a service.

5. Business idea 5.1 Market research 5.2 Business plan 5.3 Types of markets

6. Factors considered when establishing business

6.1 Capital 6.2 Licence 6.3 Acquisition of assets

7. Supportive services 7.1 Banlung

(a) Types of cheques and their treatment

(b) Reasons for dishonouring a cheque

(a) Choosing a mode of transport

(a) Principles of insurance

7.2 Transport

7.3 Insurance

7.4 Advertising 7.5 Warehousing 7.6 Communication

(a) Importance of communication (b) Services offered by the Post Office. (c)

8. Pricing (a) Production of goods and services

5.1 Markets include: Consumer, government, export and local markets.

6.1 Revise sources of capital: loan, private, credit facilities, contributions.

7.1 Cheques: crossings, endorsements, reasons

7.2 Discuss the following services provided by for dishonouring a cheque.

the Post Office: post office boxes, private bags facilities; fast-mail, registered mail, express mail, ordinary.

8.1 Simple costing to determine a selling price: Consider cost elements such as material, labour and overheads.

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29. Distinguish between different forms of buying and selling on credit.

30. Record transactions in the subsidiary books using source documents.

3 1. Post information from subsidiary books to the Ledger.

32. Construct a Trial Balance from the Ledger and given information.

that can be revealed bv the Trial balance. 33. Identify errors which cannot be revealed and those

34. Prepare final accounts and Balance Sheet of a sole trader tcaking into account given adjustments.

9. Types of credit 9.1 Short term credit 9.2 Long-term credit

10. Business Documents and

10.1 Cash Book 10.2 Sales journal 10.3 Purchase journal 10.4 Returns and allowances journal 10.5 Petty cash book 10.6 General iournal

Subsidiary Books

11. Ledger

12. Trial Balance

13. Final Accounts and Balance Sheet

9.1 Reference shuuld be made to open credit account.

9.2 Brief study of hire purchase and deferred Davments.

10.1 The use of all relevant documents should be emphasis:d.

10.2 Treatment of cash discount should also be emphasized.

1 1.1 Classification of Ledger accounts should be introduced.

12. Treatment of correction of errors is not required.

13.1 Treatment of final accounts should include both merchandise and service businesses.

13.2 The following end of period adjustments should be treated: accruals, prepayments, bad debts, closing stocks and depreciation of fixed assets.

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END OF LEVEL OBJECTIVES

At the end of Form C students should be able to:

1. Identify different types of wholesalers and retailers.

2. Prepare the final accounts- and Balance sheet of a partnership business including adjustments.

3. Prepare current accounts both in the ledger as well as in the balance sheet.

FORM C SYLLABUS

CONTENT

1. Types of Businesses 1.1 Wholesaler

(a) General (b) Specialist

(a) Supermarket (b) Street markets (c) Hawkers (d) Mobile shop (e) Chain stores (f) Mailorder (g) General dealer (h) Speciality shop (i) Bazaars (i) Hypermarket (k) Department stores

1.2 Retailers

2. Partnership Business ownership 2.1 Trading and Profit and Loss

2.1 Profit and Loss Appropriation

2.2 Current accounts

Accounts

Account

NOTES

1.1. Review the importance and types of

1.2. Distinguish between general and business.

1.3

specialist wholesaler. Cash and Carry is a mode of selling. Also relate the types wholesalers to the needs of customers. Relate the establishment of these retailers to the type of needs, customers and availability of factors of production.

2.1 Students should be able to prepare appropriation account including interest on capitals, partners’ salaries and share of profit. Interest on drawings and bonuses should not be treated.

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4. 5 .

6. 7. 8.

9.

Discuss the functions of the commercial bank. Discuss the advantages and disadvantages of various modes of transport. Explain different types of insurances and risks. Explain different types of advertising. Explain different types of telecommunication systems such as telex/fax, telephone, telephone, telegram, electronic and other recent means. Describe different types of warehouses.

2.3 Balance sheet I 2.2 The importarge of partnership agreement as the basis of sharing profits and losses should be emphasised. ’

final accounts. 2.3 Adjustments may be treated within the

3.Supportive Services 3.1 Banking (a) Provision of

Loans Overdrafts

3.1 These services should be treated within the context of their usefulness to the businesses. It is also important for students to learn about life insurance in relation to the other types of insurance.

Letter of credits Banker’s reference ATM facilities Stop order facilities Credit transfer

e Debit order Direct debit

3.2 Transport (a) Air (b) Land (c) Water

3.3 Insurance (a) Types of insurant,

e Fire 0 Burglary & +;mr+tmtPr- e Public liability

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10. Discuss the rights of consumers. 1 1. Explain mechanisms which can be followed

when consumer rights have been violated. 12. Identify rational ways in which buying

decisions can be reached.

13. Discuss advantages and disadvantages of credit system.

0 Fidelity 0 Motor

3.4 Advertising (a) Types of advertising

Informative Persuasive

0 Generic 3.5 Warehousing (a) Types of warehousing

Bonded 0 Ordinary

3.6. Communication (a) Telecommunication

4. Consumer Education 12.1 Consumer rights 12.2Consumer rights enforcement

mechanisms Complaining to the seller

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Court action 9.3 Buying Decisions

Taking the seller to a mediator

5. Credit system 5.1 Hire Purchase 5.2 Deferred payments 5.3 Open account

4.1 This should be dealt with within the context of business, that is, how consumer r i a t s affect or develop business.

4.2 Consideration of the following as the basis for rational buying decision: Expiry date, cost per gram, contents of a product, economic pack and so on.

5.1. Review the work that has been covered in credit system.

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14. Prepare supplementary cash book and bank reconciliation statement.

15. Prepare the books of non-trading organisations.

16. Prepare a simple individual and household budget based on one’s income and expenditure.

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6. Cash and Cheques’ Management

6.1 Supplementary cash book

6.2 Bank reconciliation statement

7. Non-Trading Concerns 7.1 Books of non-trading

organisations (a) Receipts and payments (b) Income and expenditure (c) Balance sheet

7.2 Individual and household budget

6.1 It is important to establish the relationship between the business and the bank through their transactions.

7.1 The following items should be treated: credit transfer, stop order, dishonoured cheques, bank charges, debit order, late deposit, and unpresented cheques.

Bank overdraft should not be treated.

7.1 Examples of such organisations are: clubs, schools, charity organizations.

7.2

7.3

7.4

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Use examples in the school or around Show how adjustments are treated in the final accounts and the balance sheet. Contrast such organisations with trading or business concerns e.g. purpose, formation and their accounts. Separate preparation of trading account for fund raising activities is not reauired.

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