BSM1602
Exam Pack
Together We Pass
Exam Pack 2021
Written by Dylan
www.togetherwepass.co.za
support@togetherwepass.co.za
,Welcome
Welcome to your BSM1602 2021 Exam Pack, which was made and created by a team of
individuals dedicated to provide students with the best possible document in order to guide
students on what to possibly expect in their exams.
Complete with past examination papers and memorandums, this Exam Pack will guide you in the
right direction, leaving you well-prepared for your upcoming BSM1602 exam.
- The Together We Pass Team
© 2021 Together We Pass. All rights reserved.
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,Table of Contents
Welcome ............................................................................................................................................... 2
BSM1602 May/June 2020 Exam Paper ......................................................................................... 4
Questions .............................................................................................................................. 6
BSM1602 October/November 2019 Exam Paper ....................................................................... 20
Questions ............................................................................................................................ 22
BSM1602 May/June 2019 Exam Paper ....................................................................................... 36
Questions ............................................................................................................................ 37
© 2021 Together We Pass. All rights reserved.
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, BSM1602 Exam Pack Business
Management IB
BSM1602 May/June 2020 Exam Paper
Case Study: Leather For You
Oudtshoorn is a town in the Klein Karoo that is well-known as the ostrich capital of the world. Julie
Smith is the owner of a small enterprise, called Leather for You. Leather for You manufactures
handbags, purses and belts from locally sourced ostrich leather. Julie buys the leather from a local
tannery and manufactures the products with the help of her two employees, Peter and John.
Leather for You mainly sells products to the local shops and tourists in Oudtshoorn. Leather for
You promises that its products will last for at least 10 years, ensuring that the customers get value
for money.
Julie gained the knowledge and skills to manufacture these products when she completed a
leather craft training programme in Cape Town. Although she had the technical skills and
knowledge to manufacture leather products, she did not have any knowledge of marketing,
financial management, or human resource management. As a result, Julie only kept records of her
income and expenditure and had no knowledge or proof of any financial statements for Leather
for You.
Due to Julie’s ignorance, Leather for You experienced a serious cash flow problem when she
decided to sell the products to the local shops on credit. Leather for You, therefore, did not have
enough cash at hand to pay the suppliers who required upfront cash payments. To make matters
even worse, the price of leather also increased due to a drought in the area, and the outbreak of
bird flu. Leather for You, experienced a drastic sales decline and now also had to compete with
larger enterprises that had the facilities to manufacture leather products in bulk at lower prices.
Due to the financial strains and stress, Julie decided to retire and asked her son, Quinton, if he
would like to take over Leather for You. Quinton realised that the enterprise will not survive
unless he made some drastic changes and was up for the challenge. Quinton, who is a qualified
accountant, decided to leave his full-time job, and invest all his time and efforts in turning around
Leather for You. When he left his full-time job, he paid out his retirement fund of R250 000 and
invested this money, together with his personal savings of R200 000, in Leather for You.
Quinton knew that Leather for You, had to be expanded to be able to compete with the larger
enterprises offering the same products. For this reason, he immediately found a larger factory,
based just a few kilometres out of town, to rent for R12 500 per month, for a six-month renewable
lease. With the larger manufacturing facilities, Quinton decided to also expand Leather for You’s,
product range. The new product range would include a larger variety of purses, handbags and
belts, and new diaper bags, backpacks, aprons and custom-made leather products according to
consumer needs. In order to support the new product range, Quinton ensured that leather
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