4.1

Question 1

Impact of low income levels on consumer behavior

Answer 1

•Consumers opt to spend money on cheaper goods and products.
•Many South Africans live in poverty, which limits their buying power.

Question 2

Impact of economic crime on businesses

Answer 2

Theft of business profits through fraud and deception leads to a decrease in profits.

Question 3

Impact of inflation on business sales

Answer 3

Businesses’ sales will decrease because of reduced consumer spending on goods and services.

Question 4

Definition of illiteracy

Answer 4

Refers to people who can’t read or write.

Question 5

Impact of illiteracy on business contracts

Answer 5

•Businesses may find it difficult to enter into written contracts with illiterate individuals.
•There is a strong link between unemployment and illiteracy as businesses cannot employ people who cannot read or write.

Question 6

Impact of dumping on local businesses

Answer 6

•Local businesses lose profits as they cannot compete with cheaper prices.
•They may lose income and be forced to close their operations.

Question 7

Meaning of piracy

Answer 7

Piracy is the illegal use or imitation of another persons work

Question 8

Impact of piracy

Answer 8

•Artists may see no value in producing a new set of music or movies because of reduced sales
•this may affect the artists and producers productivity levels

Question 9

Possible solutions to deal with piracy in a business

Answer 9

Patent
Trademark
Copyright