Identify the source of risk depicted in the picture above.
About this question
Question 3.6.1 of Agricultural Sciences Grade 12 Paper 2, NSC Preparatory Examination (Eastern Cape DoE, September 2025). It tests the Term 3 ATP topic Capital & Management Capital.
- TermTerm 3
- ATP topicCapital & Management Capital
- PaperPaper 2
- Marks1 mark
Picture: bad weather and maize
Answer
1 markProduction risk
Bad weather damages the crop and lowers yield.
Study this in your textbook: CAPS Annual Teaching Plan, Grade 12, Term 3: Agricultural Economics & Management.
More Questions On Capital & Management Capital
Answer
Two risk management strategies for bad weather are:
- Diversification, by growing other crops or keeping livestock as well as maize.
- Risk sharing, for example through crop insurance or sharing risk with other farmers.
Answer
B: External
External factors come from outside the farm business.
Answer
Assets are the house plus the machinery and livestock.
| House | R1 200 000 |
| Machinery and livestock | R600 000 |
| Total assets | R1 800 000 |
Answer
D: Analytical skills.
Analytical skills are used to process and interpret information.