PRODUCTION

Justification of location (4mks)

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state the location of the business (1mk)

clearly state where you intend to locate the business
Outline three reasons to justify the location(3mks)
Give three clear reasons why you have chosen this location.

Selection of appropriate labour (4mks)

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State the type of labour necessary(1mk)

Types of labour are skilled, semi-skilled and unskilled workers.
Outline one reason why this type of labour is necessary(1mk)
Number of persons to be employed and their duties or functions(2mks)
State the number of persons you will need for each job involved in production
of the good as well as the total number of workers in the production
department.
Give a brief description of the duties they will have to do.

Sources of fixed and working capital (4mks)

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Identify sources of fixed capital and give examples (2mks)

Fixed capital refers to financing of assets that are more permanent in the
business, such as the building, machinery and equipment.
State two sources and two examples relevant to the business.
Identify sources of working capital and give examples(2mks)
Working capital refers to financing of the day-to-day activities of the business,
such as purchasing raw material/stock, paying utilities, paying wages
State two sources and two examples relevant to the business.

Role of the entrepreneur (4mks)

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Define the role of the entrepreneur (1mk)

State the definition of an entrepreneur
Outline three functions of the entrepreneur (3mks)
These functions must be specific to the business.
Do not simply explain what the functions mean, but you must relate the
functions directly to the business.
Be specific regarding what you as the entrepreneur will be required to do
successfully establish and operate your business.

Type of production (2mks)

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Identify the type of production(1mk)

There are three types of production, primary, secondary and tertiary
Identify the types of production relevant to the business
Describe the type of production(1mk)
Briefly describe how your business is involved in the type of production
identified

Level of production (2mks)

Identify the level of production (1mk)

There are three levels of production:
.domestic- producing for the local market using local raw materials/resources.
. subsistence production- producing for oneself
. surplus/export- producing for an external market
Identify the level of production relevant to the business
Describe the level of production (1mk)
Briefly describe how your business carries out the level of production
identified

Quality control measures (2mks)

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Describe two quality control measures the business should adhere to (1mk
each)
Quality control is a process of inspecting or testing products during the
production process to identify problems
For this ection you must describe two measures your business will put in
place to ensure that your product meets a set standard to maintain good
quality

Use of technology (2mks)

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Identify two types of technology used (1mk)

The two types of technology identified must relate to the use in production.
Outline how the technology is used to enhance the efficiency of the business
(1mk)
Outline how the use of the technology identified makes the production of the
good easier and faster, as opposed to if it were to be done manually/hand

Linkages (2mks)
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State the type of linkage to be derived from the business(1mk)

Types of linkage include forward and backward linkages.
Forward linkage is when the output of one industry becomes the input for
another
Backward linkage is when one industry is dependent on another for its raw
material
Outline one benefit of that type of linkage (1mk)
The benefit outlined should relate to the business itself.

Potential for growth (4mks)

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Explain the potential for internal growth (2mks)

Internal growth refers to growth within the organization itself, such as need
for more employees, purchase new equipment or machinery as well as
expanding the physical building used to house the business operations.
Explain the potential for external growth (2mks)
External growth refers to growth within the market for example opening a
branch in a new location to access new markets or offering new products.

Government regulations (2mks)

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Identify government regulations that impact on the business (1mk)

State one government regulation that may impact on the business such as:
vat, nis contribution, income tax, health and safety regulations
Explain how it impacts (1mk)
Explain how the government regulation identified impacts on the business
and its operrations.

Ethical issue
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Discuss one ethical issue relating to production showing how it impacts on

the business (2mks)
Identify on ethical issue relating to production that may impact on the
business such as pollution, use of dangerous chemicals in production, or use
of expired goods or low quality raw materials.