Guidelines for Principles of Business School Based Assessment (S.B.A.)

For students doing the topic: Establishing a Business: Production

1.     Description of business – In this part you are required to give a brief description of your intended business. The examiner should

(a)   The name of your intended business e.g. Xtreme Graphics production

(b)  The type of business e.g. sole, proprietorship etc.

(c)   What is the proposed business  engaging in? e.g. production of local fruit juices

(d)  The major aims or aims of your business e.g.  To make 100% profit by ensuring customer’s satisfaction.

(e)   If possible you can give example(s) of the goods and/ services you will be producing.

2.     Justification of location in this part you are required to :

(a)   State the location of your intended business, e.g. 152 John Street

(b)  Secondly, you will have to list and explain the factors which influence your choice of location. (Check your textbook) e.g. Closeness to raw materials.

3.     Selection of appropriate labour– as we already know labour is an important of production and if you don’t select the most appropriate type of labour then inefficiency would take occur and productivity will decline. You are required to”

(a)   List the type of labour you will enjoy employ. e.g. cleaner

(b)  Then classify them under the three main categories of labour namely:

–        Skilled

–        Unskilled

–        Semi-skilled

4.     Sources of fixed and working capital– Capital refers to money and all other assets of a person, company or industry that can be converted into money. PHYSICAL CAPITAL ­ consists of fixed capital and working or circulating capital. FIXED ­ capital refers to capital that is of a lasting nature and which does not change its form during the course of production, e.g., factory buildings, machines and tractors. WORKING or CIRCULATING ­ capital changes its form or state during the course of production, e.g., raw materials and partly finished goods.  You are required to identify the sources of these capitals. e.g. loans

5.     Roles of the Entrepreneur– The entrepreneur is a other factors of production and bear risks. Human factor of production whose main functions are to organize the other factors of production. The entrepreneur consciously moves resources from an area of lower productivity and lower yield to an area of higher productivity and higher yields.  You are required to list and briefly explain the roles of the entrepreneur. (Check Note book)

6.     Type of production- Production refers to the combining of the factors to create goods and services to satisfy people’s wants and needs. The types (stages) of production should not be confused with the levels of production. You are required to state the type(s) of production your intended business will engage itself in. ( Check Note Book/ Text book)

7.     Levels of Production – The levels of production classify the amounts of goods and services produced under three different headings:

  • subsistence
  • domestic
  • surplus or export levels.

8.     Quality control measures- in this part you should be able to define quality as it relates to your business and then you will state the measures/ ways of ensuring quality in your intended business. E.g. hiring only trained employees.

9.     Use of technology- We all know that technology plays an important part in any business. If businesses don’t adapts to changes in technology if ultimately lead to making a loss. You are required to show how you will employ technology in your operations.

10.  Linkages-. A linkage industry is an industry which is associated or connected to other industries in such a way that the existence of one is dependent on the other, or it enhances the other’s production process. These industries are also referred to as ‘spin-off’ and ‘screwdriver’ industries. You will be required to:

(a.)  state the type(s) of linkages your intended business will create and

(b)  Why will you create those linkages?

11.  Potential for growth– You are required to state if your business will grow and how will it grow. E.g. employing more machineries

12.  Government Regulations– Governments in any country has regulations as it relates to the setting up and operations of a business. You are required state some regulations that are enforced in your country as it relates to businesses. e.g. require to pay taxes.

13.  Ethical Issues– Ethics has to do with right and wrong, good and bad. You as the entrepreneur should be aware of such issues and its consequences. You are required to list and briefly explain some of those issues as it relates to your business.  E.g. Avoiding of poor labeling

14. Communication of information in a logical way using correct Grammar.

You are required to:

(a)   Write in future tense, i.e. the event will occur sometime in the future

(b)  Correct spelling , punctuation

(c)   Subject and verb agreement i.e. the verb of the sentence must agree with the subject.

E.g. The dog is walking. The subject is dog and it is singular (one) and as a result will take a singular verb.

(d) Remember this is a report and should be written in paragraphs.


Prepared by: Raymond Govinda

RGOVINDA   Date prepared: 19th July, 2009

Principles of Business SBA Marketing Sample HERE!!!


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