University of South Africa MNB1501 - Exam Prep For Distinction 2019. All Commonly Tested Q&A

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The business world and business management The most important characteristic of the business world in countries that adopt a market economy is 1. That the business involves human activities 2. Tha... t the businesses produce predominantly tangible products such as bread, cars and houses 3. That individuals themselves decide what to produce, how to produce and what to price to sell the product 4. That the rationing of products occurs and prices of products are set by the state Read the case below and answer questions 2 & 3 Deregulation within the airline industry was introduced in South Africa in 1991. Before deregulation, SAA was the only service provider on the main domestic airline routes as well as the international routes. The first decade after deregulation resulted in a wave of low cost airline competitions such as Filestar, Sun Air, Phoenix Air, Nationwide 1time and velvet sky entering the domestic market There are several factors in the business world that apply pressure on a modern-day organisation such as SAA. Which one of these factors is depicted in the mini-case study above? 1. Environmental change 2. Consumerism 3. Profitability 4. Corporate social investmentSAA functions within a free-market economy, which is characterised by which of the following attributes? a. Private ownership of production factors b. Free competition c. Profit motive recognised d. Limited right to strike in state enterprises 1. Ab 2. Bd 3. Abc 4. Abcd The voluntary compliance of business with practices that are sustainable is known as 1. Business ethics 2. Consumerism 3. Corporate sustainability 4. Corporate social responsibility The _________________ function is responsible for acquiring all product and materials that are required by the business to function 1. Operations 2. Purchasing and supply 3. Human resources 4. General management Column A – Economic System Column B - Description a. Free market i. Generally has low productivity and increase the difficulty of proper planning b. Command Economy ii. The main driving force in the market is profit generationThe world is divided into 3 basic economic systems and each system and each has its own unique characteristics. Match the correct characteristic in block B with the appropriate economic system in Black A 1. A(ii) B (I) C (iv) 2. A(iv) B(i) C(III) 3. A(iv) B(iii) C(ii) 4. A(ii) B(iii) C(i) Many micro-enterprises form part o the so-called informal sector. Which one of the following statements regarding enterprises in the informal sector is incorrect? 1. They are not part of the formal economy because they are not registered 2. Many people involved in these enterprises live primarily on a subsistence or survival basis 3. They put pressure on the infrastructure of inner-city areas and do not contribute to rates and taxes 4. Even though they are not registered, these enterprises contribute to rates and taxes ENTREPENEURSHIP Read the case study below and answer questions 8 & 9 The main operators in the SA liquor market are SAB, United National Brewries, Distell and Brandhouse. SAB forms part of the multinational beer brewer SABMiller, which manufactures manly malt beer but also flavoured alcoholic beverages (FABs) and also owns more than 60% of the market for sales of the Coca-Cola soft drink in SA. c. Socialism iii. The state has full control over production factors thereby increasing competition in the market iv. Employees are free to choose employment and have a limited right in government institutions to participate in strikesSAB previously used their own large trucks to distribute the beer that the company brewed to customer outlets. However, SAB decided to no longer use their own trucks, but use owner-drivers of trucks to distribute their beer. These drivers receive contracts from SAB to deliver beer to clients in demarcated areas, the above scenario is referred to as 1. Franchising 2. Outsourcing 3. Insourcing 4. Innovating When SABMiller first started in 1895 as Castle Breweries, they would have needed to consider the business as a whole and to understand how it fits within its marketplace. Which management skill does this refer to? 1. Strategy skills 2. Marketing skills 3. Planning skills 4. Project management Kohler has adopted several strategies to sustain a culture of continuous innovation. Growth has been generated substantially from within, by people creating an area, grafting it financed internally and executing it successfully. This is an example of________________. 1. Franchising 2. Intrapreneurship 3. Entrepreneurship 4. None of the above. Lucy Dlamini aims to open her own hairdressing salon in CT. which of the following are traits and characteristics that she should possess in order to be classified as an entrepreneur. a. Achievement and motivation b. Risk taking c. High tolerance for ambiguity d. Innovation and creativity1. AB 2. ABC 3. ACD 4. ABCD Lucy needs to collect data that will help forecast whether her idea or venture will survive. This is known as ____________ study. 1. Business 2. Planning 3. Feasibility 4. Financial Which one of the following statements describes corporate entrepreneurship the best? 1. Corporate entrepreneurship occurs in an existing business when a new and diversified product is added to the current business 2. Corporate entrepreneurship occurs when an entrepreneur working in the corporate world establishes his own business separate from his current job. 3. Corporate entrepreneurship occurs when an entrepreneur starts his own corporate business venture 4. Corporate entrepreneurship occurs when a corporate company hires an entrepreneur ESTABLISHING A BUSINESS Which one of the following represents the most important objective of a business plan? 1. It presents a written plan on how the entrepreneur plans to exploit an opportunity2. It provides a way to identify the key variables that will impact on the success of the business 3. It identifies and describes the nature of the business opportunity or new venture 4. It acts as a management instrument for comparing actual results with planned outcomes Read through the case scenario below and answer questions 15 and 16 MXit is described as a lifestyle company with a disruptive technology offering a range of services including free instant messaging application for mobile phones and computers, mobile voice clips, community-based applications and entertainment In which part of the business plan would the description of the MXit mobile phonebased instant messaging service and its features be? 1. Market plan 2. Products and/or services 3. General company description 4. Operating plan MXit’s name and location will be included in the _____________ of the business plan 1. Management plan 2. Operating plan 3. General company description 4. Executive company description Thabang Molefe is a young up and coming entrepreneur from Soweto. Thabang used all the money she saved while working as a beauty therapist on a passenger liner to open a beauty spa (Sole proprietorship) in a township. Her Roots Health and Beauty Spa was so successful that she decided to open another spa in spruitview. Which one of the following formalities must Thabang comply with, to ensure that her business is a success?1. She must comply with a few formalities and legal requirements for the establishment of a sole proprietorship 2. She must institute legal proceedings in the name of the business 3. She must alter certain aspects of the business 4. She must accumulate capital Which one of the following statements is true for a partnership? 1. The partnership has a separate estate from its partners and their personal capital 2. The continued existence of the partnership is not dependent on the legal capacity of the partners 3. The partnership is regarded as a separate taxpayer 4. The partners are jointly and severally liable for all claims made against the partnership. Besides Lizzy, who is an experienced writer, the management team of Book & Beyond would include Zuri, and editor of a larger newspaper, and Jacobus, a typesetter in which section of the business plan will the team be discussed? 1. The executive summary 2. General company overview 3. Marketing plan 4. Management plan THE BUSINESS ENVIRONMENT Read the case study and answer question 21 and 22 SAB has long played a role as one of SA most socially progressive enterprises. SAB understood decades ago, before the political changes in the county that transformation and BEE were essential for the future stability of SA. In 2009 SAB announced a Zanele BBBEE transaction that was worth R7.3b and placed 8 45% of the company shares under black ownership.The BBEEE policy which implemented in 2003 and published as an Act that provides legislative framework for the promotion of BEE is a variable in the _____________ environment which is part of the _____________ environment. 1. Economic/market 2. Economic/macro 3. Technological/market 4. Institutional-governmental/market SAB reputation is an example of a/an_______________ of the business 1. Tangible resources 2. Intangible resource 3. Organisational capability 4. Physical resource Burger King’s signature burger is called the Whopper. The Whopper is made to order for each customer, using only the freshest ingredients. The whopper trademark Is an example of a/an ______________ resource 1. Tangible 2. Physical 3. Intangible 4. Organisational Burger King Competitors in the fast food market include McDonalds and Steers. These competitors for part of Burger King’s ______________ environment. 1. Micro 2. Market 3. Macro 4. InternalThe most elementary form of scanning is 1. To add primary information 2. To update relevant secondary information 3. To establish a scanning unit 4. To scan the business tasks The strength and weakness of an organisation are determined in the __________ environment. 1. Micro 2. Market 3. Task 4. Macro Which one of the following components is NOT part of the market or task environment? 1. Competitors 2. Suppliers 3. Intermediaries 4. Consumerism CORPORATE SOCIAL RESPONSIBILITY Which one of the following statements about corporate social investment is correct? 1. Corporate social investment is also called corporate philanthropy 2. Corporate social investment refers to a company’s contribution to society through its core business activities 3. Corporate social investment refers to a company’s contribution to society through local business development 4. Corporate social investment refers to a company’s contribution through its engagement in public policy.Read through the case study and answer question 29 & 30 SAB is listed on the JSE and the parent company SABMiller is listed on the London stock exchange. As such the SABMiller group of companies must comply with corporate governance rules set out for listed companies in various countries. Although corporate governance is the responsibility of every employee in the company, the following structures are particularly responsible for corporate governance in the SABMiller group. The Board f Directors, the Executive Committee, Audit Committee and Chief Financial Officer. The employees of SABMiller are usually viewed as _____________ stakeholders 1. Direct 2. Indirect 3. Primary 4. Secondary Sab Strives to make more beer with less water is the world leader in responsible water management during the brewing process. This is an indication of which of the following drivers of corporate responsibilities? 1. Social drivers 2. Governmental drivers 3. Market drivers 4. Ethical drivers If a company such as SAB complies with the spirit of the law, then it means that: 1. It is doing the bare minimum to avoid sanctions 2. The company is doing what can be reasonably expected to further the objective of the legislation 3. The company reduces cost by avoiding fines and legal costs 4. The company improves access to markets, for example, government procurementWhich of the following statements in NOT correct regarding stakeholders? 1. Stakeholders are persons or groups who can be affected by a business activity 2. There is a clear distinction between a primary and a secondary stakeholder 3. Shareholders and employees are primary stakeholder in a company 4. An environmental NGO is an example of a secondary stakeholder A ____________ aligns the CSR policy to the company’s own vision, mission, values and guiding principles 1. Stakeholder-engagement process 2. Values-based system 3. Vision-based programme 4. Bottom-down approach INTORDUCTION TO GENERAL MANAGEMENT Which one of the following sentences regarding the role of management is correct? 1. One of the most common causes of failure in a business is poor physical resources 2. It is not the role of management to keep the organisation in equilibrium with its environment 3. Management in necessary to reach the goals of the organisation at the highest possible level of productivity 4. A business can maintain the purpose for its existence without effective management Jimmy has just completed his degree in Business Management at UNISA and has opened a new photography shop that sells cameras and equipment, develops photos and gives classes on the art of photography. When Jimmy deals with clients, he requires __________ skills and when he is busy developing photos he requires __________ skills1. Interpersonal/technical 2. Conceptual/information 3. Interpersonal/conceptual 4. Informational/technical In a government department, the ministers are typically part of __________ management. 1. Top 2. Middle 3. Functional 4. Lower Tsogo Sun has been in the hospitality industry for over 44 years and is currently the leading hotel and entertainment group in Africa. If Tsogo Sun decides to use a management approach to force the rganisation to focus on its core business and to outsource those activities that do not relate to the core business, they would be applying the ____________ 1. Scientific school of management 2. Quantitative school of management 3. Contingency approach to management 4. Re-engineering approach to management The HR Manager at Tsogo Sun realises that she cannot manage the separate parts of the HR function at Tsogo Sun independently, but that she should rather manage them as integrated whole. This is known as the ___________ to/of management. 1. Systems approach 2. Contingency approach 3. Scientific school 4. Quantitative schoolLufthansa announced that is has achieved its operating result objective for 2014 carstons sphor, chair of the executive board and CEO of Deutsche Lufthansa said in the statement that ‘Our results for 2014 show us clearly where we currently stand. On the one hand, all the business segments of the Lufthansa Group are profitable and, with an operating profit of almost EUR 1 billion, we achieved our projection in a far from easy year. As CEO of Lufthansa, Carstons Sphor acts as the representative figure of the company and therefore plays a/an _____________ role in the company 1. Decision-making 2. Information 3. Interpersonal 4. Formal You are the lecturer at UNISA and you get promoted to a line manager position where you are responsible for guiding your staff in their own subsections and for keeping close control over their activities. You are therefore part of the __________ management. 1. Top 2. Middle 3. Functional 4. Lower Lower-level management use _____________ goals to develop ___________ goals 1. Strategic/short-term 2. Strategic/medium term 3. Tactical /short term 4. Tactical/medium termPLANNING Nike has established a five year strategy to encourage the growth of its global operations in addition, Nike would like to sustain or grow market leadership of the NIKE brand and its affiliated brands. The five year strategy described above is an example of Nike formulating a _______ goal that applies to the organisation as a whole 1. Tactical 2. Operational 3. Strategic 4. Medium-term By wanting to sustain or grow market leadership of the Nike brand its affiliated brands, Nike is embarking on a _________ growth strategy 1. Diversification 2. Market development 3. Product development 4. Turnaround The planning process consists of several steps. Which one will be done first in planning process? 1. Implement the plan 2. Establish goals 3. Evaluate alternative plans 4. Select a plan Which one of the following is considered an advantage of using the management by objectives (MBO) technique? 1. Operational goals may displace strategic goals 2. The organisation’s performance can improve 3. MBO will result in very little paperwork 4. The organisational culture will also embrace the use of MBO_________________________ are executed by front-line managers 1. Operational goals 2. Tactical goals 3. Tactical plans 4. Operational plans Goals must relate to an organisation’s mission and strategic goals that would imply that goals are___________________ 1. Time bound 2. Specific 3. Measureable 4. Relevant ORGANISING Organising means______________ 1. Dividing up the total task of the business into smaller units so as to take advantage of specialisation and achieving the goals of the business as productively as possible 2. Giving direction to the organisation and forcing managers to be future oriented and enables the organisation to deal with changes in the business environment. 3. Establishing and implementing mechanisms to ensure that the objectives of the organisation are achieved 4. Communicating ideas, gaining acceptance of them, and inspiring followers to support and implement the ideas through change Structure is extremely important at Nike as it largely prioritises where management spend their time. Large organisations such as Nike are often inundated with information if the organisational structure is not appropriate. Tofurther enhance the current reporting relationships at Nike, the decision was taken to introduce an additional management layer in the Nike hierarchy. What was the first step Nike had to take in establishing reporting lines, when they introduces the additional management layer in the Nike hierarchy? 1. Nike management had to determine how many people will report to one manager 2. Nike management had to determine who reports to whom 3. Nike management had to determine the optimal span of management 4. Nike management had to determine if managers would be underutilised Alex is a manager at a Nike store in Gauteng. He has hour subordinates that report to him on a daily basis. This describes the _____________ 1. Chain of command 2. Span of management 3. Scalar principle 4. Unity of command The duty to perform a task or activity as it has been assigned is referred to as: 1. Delegation 2. Authority 3. Coordination 4. Responsibility A few years ago UNISA made the decision to introduce an online marketing system, known as the Router, throughout the university. At the time, the staff in the Business Management department was instructed by the COD to make use of the Router to mark assignments. The COD thus had _________ authority. 1. Staff authority 2. Command authority 3. Informal authority 4. Line authorityWhich one of the following statements about job specialisation is correct? 1. When an employee who performs a specialist job is absent, the managers need to train somebody new at a very high cost. 2. Job specialisation is usually an extension of organisational growth 3. Specialisation involves systematically moving employees from one job to another 4. The more narrowly defined a job is, the more difficult it is to develop specialised equipment to assist with that job. Simon is the warehouse manager at Denel, Simon is responsible for overseeing 80 warehousing staff members, indicating that he is responsible for many subordinates Denel therefore has a/an____________ organisational structure 1. Tall 2. Flat 3. Ideal 4. High Job ______________________ involves increasing the number of tasks a worker does and the control the worker has over the job. 1. Rotation 2. Enlargement 3. Enrichment 4. Specialisation LEADING South African born serial entrepreneur and CEO of Tesla Motors, Inc and Space X, Elon Musk, has changed the playing field, namely to make his company’s intellectual property available in an open source format. AAs CEO of Tesla Motors, Elon Musk, has ________________ power as he has the right to insist that employees do their work and the right to discipline or dismiss them if they fail to comply 1. Reward2. Referent 3. Expert 4. Legitimate One of Elon Musk’s new invitations in the Hyperloop – a high-speed train service between Los Angeles and San Francisco. He enlisted and involved a group of experts to develop the Hyperloop as he believes in enlisting large groups of people in solving problems. The group of experts enlisted were chosen for their knowledge and professional ability and therefore this gives them_______________ power. 1. Reward 2. Referent 3. Expert 4. Legitimate __________ is the process through which leaders communicate ideas and gain acceptance for them 1. Influencing 2. Responsibility 3. Authority 4. Delegation Match Column A with the correct description in column B Column A Column B a. Competence i. A manager’s reliability when it comes to telling the whole truth b. Consistency ii. A manager’s willingness to protect another person c. Loyalty iii. A manager’s reliability, predictability and good judgement in handling situations d. Openness iv. A manager’s technical and interpersonal knowledge and skills 1. A(ii), b(i), c(iv), d(iii) 2. A(iv), b(iii), c(ii), d(i) 3. A(iii), b(i), c(iv), d(ii) 4. A(i), b(iii), c(ii), d(iv)The premise the ___________ is based on, is that the work maturity if employees determines the best leadership style to be used 1. Situational leadership 2. Contingency approach 3. Managerial grid 4. Path-goal model A/an ____________ is a small number of employees with complementary competencies who work together on a project, are committed to a common purpose and are responsible for performing tasks that contribute to achieving an organisation’s goals 1. Task group 2. Interest group 3. Work team 4. Work group In the communication model, listening skills are important with regard to the ________ element 1. Sender 2. Message 3. Channel 4. Receiver CONTROL Which of the following statements concerning the control process are correct a. As the size of a business increases, it becomes easier to identify areas of weak performance b. An effective control system allows management to identify problems before they become critical for the organisation c. Increasing competition results in ineffective cost and quality control d. Control usually results in better quality 1. Ab2. Bc 3. Ac 4. Bd In 1938 Toyota launched ‘just in time’ (JIT) on a full scale basis. The JIT philosophy is also incorporated in the Toyota production system. The JIT system is an example of a/an _______________ control system 1. Quality 2. Inventory 3. Financial 4. Product The just in time system I based on the premise that ______________ 1. The organisation must replenish inventory levels by ordering the most economical quantity 2. Raw materials and components should be ordered according to an estimate of the demand 3. Actual orders for finished products are converted into orders for raw materials and components 4. The quality of a product is the responsibility of everyone in the organisation. At Toyota it is vital that its control system should accommodate change. This is an example of the _________ characteristics of its control system 1. Accuracy 2. Integration 3. Flexibility 4. Simplicity The Corolla, Auro and Verso (52 546 vehicles) were recalled in South Africa to correct a potentially faulty accelerator pedal mechanism. Recalling the vehicles represents which step in the control process? 1. Setting standards 2. Measuring actual performance 3. Evaluating deviations4. Rectifying deviations Which one of the following control systems can be used for the control of physical resources? 1. Material requirements planning (MRP) 2. Periodic inspections 3. Specific ratio analysis 4. Total quality management (TQM) If Thembi were to focus on the revenue of her cosmetics business, she would use a ________ budget 1. Cash flow 2. Capital 3. Production 4. Sales To complement the budget, management can use ___________ to apply financial control 1. Ration analysis 2. The cost benefit principle 3. Cost analysis 4. Future value factor calculations QUESTION 1 Which of the following statements on the economic principle are correct? a) Ensuring the highest possible satisfaction of needs with scarce resources is known as the economic principle. b) The economic principle refers to a business’s endeavour to keep its input Costs as high as possible. c) Businesses that apply the economic principle try to achieve the highest possible income. d) The economic system is not subject to the economic principle. 1. a Correct answer Option 12. a c d 3. b c d 4. c d Read case study 2 “The airline industry – developing value-based competition in the South African airline market” (page 13 in your prescribed book “Business Cases”) and answer questions 2 to 4. QUESTION 2 Part of Kulula‟s mission statement states “where possible, we provide our staff with the best opportunities to develop their skills, and take their abilities to new heights in the service of our customers.” Kulula therefore satisfies the ________________ of their employees. 1. Physiological needs 2. Security needs 3. Social needs 4. Esteem needs 5. Self-realisation needs Correct answer Option 5 QUESTION 3 The resources used by low-cost airlines include _________________. a) natural resources b) human resources c) capital resources d) entrepreneurship/management 1. a b c d Correct answer Option 1 2. a b 3. a b c 4. b c d QUESTION 4 Sally buys cocoa from South America and uses it to make 90% dark chocolate that she sells in her stores located throughout South Africa. Which element of business does Sally deal with here?1. Human activities 2. Transformation Correct answer Option 2 3. Exchange 4. Profit Read case study 4 “MXit – Using disruptive techonology to build new mobile social networks” (page 56 in your prescribed book “Business Cases”) and answer questions 5 to 7. QUESTION 5 Which need of its customers did MXit focus on satisfying? 1. Self-realisation needs 2. Esteem needs 3. Social needs Correct answer Option 3 4. Security needs QUESTION 6 When Herman Heunis came up with the idea of the MXit concept, he first had to evaluate whether his business venture would be viable. He therefore needed to __________________. 1. conduct a feasibility study Correct answer Option 1 2. compile a business plan 3. identify whether he would have access to resources 4. clarify whether he had what it takes to start the new business QUESTION 7 As an entrepreneur, Herman Heunis needed the ability to evaluate the offering of his business and features, and to determine how he would satisfy customers‟ needs and wants. Which management skill is referred to here? 1. Human resources skills 2. Marketing skills Correct answer Option 2 3. Planning skills 4. Strategic skills QUESTION 8Which of the following are fundamental requirements for a good investment opportunity? a) There must be a clearly defined market need for the product or service. b) The opportunity must have the potential to grow. 3 c) The entrepreneur must have ample experience before investing in a new venture. d) The opportunity must be rewarding to the investor and/or the entrepreneur. 1. a b 2. a b c 3. a b d Correct answer Option 3 4. b c d QUESTION 9 The entrepreneurial process is the process of identifying, creating or sensing an opportunity where others do not see it. Arrange the five phases of the entrepreneurial process in the correct order. a) Resources b) Feasibility c) Opportunities and ideas d) Entrepreneurial activities and skills e) Business plan 1. a b c d e 2. b a d e c 3. d a c b e Correct answer Option 3 4. e c d a b QUESTION 10 Which of the following statements about franchising are correct? a) Franchisees have the freedom to experiment, operate and market their business based on their own vision. b) Franchisees must usually adhere strictly to the plans of the franchisor. c) Franchisors usually fall in the medium sized to large business category. d) The franchisor is an entrepreneur. 1. a b c d2. b c d Correct answer Option 2 3. a b c 4. a d QUESTION 11 Which of the following are characteristics of a private company? a) The number of shareholders is limited to 50 people. b) Members of the general public may apply for shares in the company. c) The name of a private company has to end with the words (Pty) Ltd. d) The transferability of shares in the company is limited. 1. a b c d 2. a b d 3. a c d Correct answer Option 3 4. b c d Read case study 4 “MXit – Using disruptive technology to build new mobile social networks” (page 56 in your prescribed book “Business Cases”) and answer questions 12 and 13. QUESTION 12 What form of enterprise is MXit? 1. A public company 2. A partnership 3. A close corporation 4. A private company Correct answer Option 4 QUESTION 13 Which characteristic is applicable to an establishment such as MXit? 1. There must be at least two directors in the establishment. 2. MXit can list its shares on the stock exchange. 3. Shares are freely transferable in an establishment such as MXit. 4. The articles of association must contain some restriction on the transferability of its shares. Correct answer Option 4QUESTION 14 Thandi is an entrepreneur and wants to open a new venture. Thandi knows she needs to write up a detailed business plan in order to obtain financing from the bank. Which two of the following are considerations that Thandi needs to take into account to determine the amount of planning she needs when writing up the business plan? a) Style and ability b) Capital c) The micro-environment d) The level of uncertainty 1. a b 2. a c 3. b c 4. a d Correct answer Option 4 QUESTION 15 In which section of Thandi‟s business plan will she describe the business‟s customers and type of competition that the business will face? 1. Marketing plan Correct answer Option 1 2. Financial plan 3. Management plan 4. Operating plan Read case study 5 “Edcon –Retail leaders” (Page 68 in your prescribed book “Business Cases” and answer questions 16 to19. QUESTION 16 Woolworths, Mr Price, Ackermans, Pep, Truworths and Foschini are all competitors of Edcon and thus part of the ________________ environment. 1. Market Correct answer Option 1 2. Macro 3. Physical 4. MicroQUESTION 17 Edcon‟s vision and mission is consolidated into the Edcon purpose statement. These are all variables in the ________________ environment and are under _____________control of management. 1. market; direct 2. macro; indirect 3. physical; indirect 4. micro; direct Correct answer Option 4 QUESTION 18 The Edcon logo and brand are referred to as the _________________ within the company. 1. tanglible resources 2. intangible resources Correct answer Option 2 3. organisational capabilities 4. fixed assets QUESTION 19 When Edcon sets goals, this can be viewed as the starting point of the ______________ process. 1. Control 2. Planning Correct answer Option 2 3. Leading 4. Organising QUESTION 20 Which one of the following statements concerning the business environment is incorrect? 1. Management has complete control over the micro-environment. 2. The market environment includes both suppliers and competitors. 3. The market environment exerts no influence on the micro-environment. Correct answer Option 3 4. An enterprise‟s mission and goals are variables within the micro-environment.QUESTION 21 What is included in the „triple bottom line‟ of sustainability and corporate social responsibility? a) Public relations b) Financial issues c) Supply issues d) Social issues e) Environmental issues 1. a b c d e 2. a b c 3. d e 4. b d e Correct answer Option 4 QUESTION 22 Sustainable development will be most effective and efficient in a company such as SAB if ________________. 1. there are strict rules in companies. 2. management develop policies regarding sustainable development. 3. sustainable development is integrated into the day to day operations of the business. Correct answer Option 3 4. personnel receive training regarding sustainable development. QUESTION 23 SAB‟S “soul” investment includes ad hoc donations and support for disaster and humanitarian relief. A budget is allocated to address welfare issues and is purely an outreach response to day-to-day requests for donations and disaster relief. SAB‟s commitment to invest its profits in community-based projects is an example of the company being involved in_________________. 1. Corporate citizenship 2. Corporate social investment Correct answer Option 3 3. The triple bottom line 4. Corporate scandalsQUESTION 24 Edcon applies corporate governance in order to ensure sustainability of the organisation and its business. These principles and practices are applied in line with the ________________. 1. Kyoto Protocol 2. King 3 report Correct answer Option 3 3. Global Reporting Initiative (GRI) 4. JSE SRI index QUESTION 25 There are several ways in which the board can determine the corporate social responsibility policy. Woolworths has one of the leading corporate social responsibility policies that is aligned to its vision, mission, values and guiding principles. Woolworths therefore made use of the __________ to establish its corporate policy. 1. Triple bottom line 2. value-based system Correct answer Option 2 3. King 3 report 4. Ethical vision guidelines QUESTION 26 Match the term in column A with the correct description in column B. Column A Column B a. Mission (i) A goal-setting technique whereby managers and employees jointly define goals for the business b. Organisational goal (ii) “To become the most safe, consistent, reliable and profitable of the train operating franchises in a climate that respects different views and where people need not be afraid to be open and honest”. c. Management by objectives (iii) The purpose as set out by the management of the organisation. d. Vision (iv) A specific achievement to be attainedat a specific future date. . 1. a (iv) b (i) c (iii) d (ii) 2. a (iii) b (iv) c (i) d (ii) Correct answer Option 2 3. a (ii) b (iv) c (i) d (iii) 4. a (iii) b (i) c (iv) d (ii) QUESTION 27 Goals are influenced by ____________________. a) the mission of the organisation b) the business environment c) management‟s values d) the experience of management 1. a b 2. a b c 3. b c d 4. All of the above Correct answer Option 4 Read the scenario below and answer questions 28 and 29. Kulula is a budget airline in South Africa and forms part of the British Airways (BA) group. It began operations in 2001 and became known for its low-priced tickets, friendly service and memorable and often funny ads. In its company’s mission statement, Kulula declares that they will "help people lighten up." True to its declaration, Kulula quickly developed a reputation for flight crews who dispensed humour and jokes as well as beverages and snacks. Kulula advertisements, too, continue to feature humour. Adapted from an article by Chris Moerdyk QUESTION 28 Which one of the following options contains the correct steps for Kulula to follow in the planning process?1. Develop alternative plans; evaluate alternative plans; select a plan; implement the plan; do reactive planning; establish goals. 2. Do reactive planning; establish goals; develop alternative plans; evaluate alternative plans; select a plan; implement the plan. 3. Establish goals; develop alternative plans; evaluate alternative plans; select a plan; implement the plan; do reactive planning. Correct answer Option 3 4. Establish goals; develop alternative plans; evaluate alternative plans; select a plan; do reactive planning; implement the plan. QUESTION 29 A plan for achieving Kulula‟s set goals is seen as a ___________________. 1. desired future state 2. blueprint Correct answer Option 2 3. the purpose statement 4. good idea QUESTION 30 Planning does not only have benefits, but also costs. Which of the following are costs of planning? a) Rigidity b) Control c) Time consuming d) Reduces change e) Replaces intuition 1. a b c 2. a b 3. a c e Correct answer Option 3 4. a b c d e QUESTION 31 The mission statement spells out the mission or overarching goal of the organisation. In the mission statement, the organisation answers the following questions: 1. What is our business? Who are our employees (labour force)? 2. What is our business? Who are our customers (markets)? Correctanswer Option 2 3. What are the strategic goals of our business? What is our vision? 4. What are the strategic goals of our business? What are our products? QUESTION 32 An enterprise taking over a competitor in order to eliminate the competition is an example of __________________. 1. Diversification 2. horizontal integration Correct answer Option 2 3. innovation 4. vertical integration Read case study 6 “The dilemmas at NCX Pharmaceuticals” (page 82 in your prescribed book “Business Cases”) and answer questions 13 and 14. QUESTION 33 NCX Pharmaceuticals was faced with a crisis situation in 2008, and therefore top management decided to decentralize operations and concentrate attention on the customer. This means that _________________. 1. decision-making power and authority are retained at the higher levels of management 2. decision-making power and authority are delegated as far down in the chain of command as possible Correct answer Option 2 3. decision-making power and authority are delegated only to middle management 4. decision-making power and authority are delegated only at the lowest levels of management QUESTION 34 Ringane (CEO of NCX Pharmaceuticals) was of the view that managers at NCX needed to improve their management skills and provided a list of skills to the HumanResources Development Manager, with the instruction that all managers should receive management skills training. Ringane has ___________________ authority over the Human Resources Development Manager. 1. Staff 2. Indirect 3. Line Correct answer Option 3 4. Supplementary Read case study 5 “Edcon – Retail leaders” (page 68 in your prescribed book “Business Cases”) and answer question 35. QUESTION 35 Edcon is organized into three divisions namely the Departmental Store Division, the Discount Store Division and CNA Division. Edcon is departmentalized according to __________________. 1. Function 2. Location 3. Customer Correct answer Option 3 4. Product QUESTION 36 _________________ is where the scope of the existing job is extended to give a broader range of responsibility, plus extra knowledge and skills development. 1. Job enrichment 2. Job specialisation 3. Job rotation 4. Job enlargement Correct answer Option 4 QUESTION 37 Which of the following spans of management are appropriate for a business that is complex, needs a high degree of interaction and has a supervisor who has little skill and competence? a) Narrow structure b) Broad structurec) High structure d) Flat structure 1. a b 2. b c 3. b d 4. a c Correct answer Option 4 QUESTION 38 Specialisation became part of the organising process because _________________. 1. labour productivity started declining 2. the use of assembly lines increased 3. the specialized skills of individuals increased 4. of constant pressure to split up the total task into smaller units Correct answer Option 4 Read case study 5 “Edcon – Retail leaders” (page 68 in your prescribed book “Business Cases”) and answer question 39. QUESTION 39 In order to motivate employees Edcon offers competitive remuneration packages and recognition schemes. Edcon also offers performance incentives that are based on the individual‟s performance. Edcon therefore uses ______________ power to motivate their employees. 1. Coercive 2. Legitimate 3. Referent 4. Reward Correct answer Option 4 Read case study 6 “The dilemmas at NCX Pharmaceuticals” (page 82 in your prescribed book “Business Cases”) and answer question 40. QUESTION 40As CEO of NCX Pharmaceuticals, Arnold Ringane has ________________ power and has the right to insist the employees do their work and the right to discipline or dismiss if they fail or comply. 1. Legitimate Correct answer Option 1 2. Coercive 3. Referent 4. Expert QUESTION 41 “Work maturity of employees determines the best leadership style for a particular situation”. To which leadership theory does this refer to? 1. Trait theory 2. Contingency theory 3. Behavioural theory 4. Situational leadership model Correct answer Option 4 QUESTION 42 The obligation to achieve organisational goals by performing required activities. This refers to which one of the following components of leadership? 1. Authority 2. Power 3. Accountability 4. Responsibility Correct answer Option 4 QUESTION 43 Which of the following statements on aspects of leadership are correct? a) Authority gives a leader the right to give commands to subordinates. b) Authority denotes the right of a leader to demand actions from subordinates. c) Authority denotes the ability of a leader to influence the behaviour of others without necessarily using his or her authority. d) Responsibility is a manager’s ability to influence his or her employees‟ behaviour. 1. a b Correct answer Option 1 2. a b d 3. a c d4. b c d 5. a b c d QUESTION 44 Which one of the following describes a group? 1. Two or more individuals who regularly interact with each other and who work for a common purpose Correct answer Option 1 2. A small number of employees with complementary competencies who work together on a project 3. All members are dependent on each other because the output of one member becomes the input of another member. 4. Positive synergy, meaning that performance can be greater than the sum of the performance of individual team members QUESTION 45 Thapelo owns a big furniture company called Fine Furniture and has been in the business for over 10 years. He understands how important it is to use control procedures to ensure that they are progressing towards their goals, and that their resources are being used properly and productively. He realises that a control process is necessary for the following reasons: 1. Control is the first step in the business management process and is linked with planning, organising and leading. 2. Control helps companies adapt to environmental change. 3. Control is only necessary in large organisations that have complex networks and narrow structures 4. Control helps minimize costs. 1. a b 2. a c 3. b c 4. b d Correct answer Option 4QUESTION 46 Thapelo understands that every organisation needs a control process because even the best-laid plans may go wrong. Place the following steps of the control process in the correct order: a) Thapelo needs to measure the actual performance and ensure that the organisation collects information and reports on actual performance on a continuous basis. b) Thapelo needs to determine the need for corrective action and needs to ensure that deviations do not recur. c) Thapelo needs to establish performance standards at strategic points within the business. d) Thapelo needs to determine the performance gap between the performance standard and actual performance. 1. c a d b Correct answer Option 1 2. c d b a 3. a c d b 4. a d b c QUESTION 47 In order for a control system to be effective, Thapelo tells his staff that their control system needs to be able to accommodate change. The characteristic that Thapelo is referring to is called ___________________. 1. Integration 2. Flexibility Correct answer Option 2 3. Accuracy 4. Timeliness QUESTION 48 When Edcon decides that they want to capture 30% of the children‟s clothing market, this refers to step ______________ of the control process. 1. One Correct answer Option 1 2. Two 3. Three4. Four QUESTION 49 When Edcon determines the difference or performance gap between the 30% market share which they aimed to capture and the actual market share which they captured, this refers to step________________ of the control process. 1. One 2. Two 3. Three Correct answer Option 3 4. Four QUESTION 50 Sophie has a manufacturing company. She wants to keep inventory costs as low as possible provided the method she uses does not cause shortages or delay the manufacturing process. Which of the following control systems can she use in order to control her inventory? a) EOQ (economic ordering quantity) b) ratio analysis c) performance measurement d) just-in-time (JIT) 1. a b 2. c d 3. a d Correct answer Option 3 4. b c PART C QUESTION 51 A business‟s effort to provide the greatest possible need satisfaction with limited available resources is known as _________________________ 1. need satisfaction. 2. productivity. 3. rate of return on total capital. 4. the economic principle. The correct answer is option 4.QUESTION 52 The following are skills required to be a successful entrepreneur: a) Strategy skills b) Marketing skills c) Financial skills d) Project management skills e) Human relations skills f) Planning skills g) Organising skills h) Motivation skills i) Control skills 1. a, b, c, d, e, f The correct answer is option 1. 2. a, b, c, d, e, i 3. a, c, f, g, h, i 4. a, b, c, e, f, i QUESTION 53 Match the answer in column A with the explanation in column B. Column A Column B a Entrepreneurship (i) Starting your own business b Capital (ii) Borrowing R100 000 from ABSA c Natural resources (iii) Having a borehole on the farm so that you can irrigate your own vegetables d Human resources (iv) Acquiring a BCom degree e Management (v) Making decisions such as planning, organising,leading and control 1. a (v); b (ii); c (iii); d (iv); e (i) 2. a (i); b (ii); c (iii); d (v); e (iv) 3. a (i); b (ii); c (iii); d (iv); e (v) The correct answer is option 3. 4. a (ii); b (i); c (iv); d (v); e (iii) 5. a (iii); b (ii); c (iv); d (v); e (i)QUESTION 54 As an economic system, a free-market economy is characterised by which of the following attributes? a) private ownership of production factors b) free competition c) profit motive recognised d) limited right to strike in state enterprises 1. a b 2. b d 3. a b c The correct answer is option 3 (a b c). 4. a b c d QUESTION 55 Small and medium enterprises in South Africa are defined as_______ 1. having less than 200 employees, an annual turnover of less than R100 000 and direct managerial involvement by the owners. 2. having less than 50 employees, an annual turnover of less than R64 million and direct managerial involvement of the owners. 3. having less than 200 employees, an annual turnover of less than R64 million and direct managerial involvement. The correct answer is option 3. 4. having less than 200 employees, an annual turnover of less than R64 million and capital assets of more than R10 million QUESTION 56 Jack developed an idea to start a laundromat. During the _______________ stage of the entrepreneurial process Jack thoroughly researched his idea and collected data to help him forecast whether his idea and venture would survive. 1. feasibility study The correct answer is option 1. 2. opportunity identification 3. market analysis 4. business planningQUESTION 57 Private investors did not like Jack’s idea. As such he sought to obtain the R100 000 capital he needed from a bank rather than private investors. In considering his application for finance, the bank would consider the “four Cs”. Which of the following are included in the four Cs that banks generally consider when evaluating a loan application? a) Collateral b) Capacity c) Capital d) cash flow 1. a b 2. a c The correct answer is option 2 (a c). 3. a b c 4. a b c d QUESTION 58 The bank was impressed with Jack‟s application for finance and his business plan, but suggested that he first register his business as a close corporation (CC). In registering his CC in South Africa, Jack will have to adhere to ___________ legal prescriptions and will incur ___________ costs in the process. 1. many; minor 2. few; minor The correct answer is option 2. 3. many; considerable 4. few; considerable QUESTION 59 Jack could have chosen from various legal forms of ownership for his business. Which of the following are important in choosing a legal form of business? a) The degree of direct control and authority which the proprietors must have over the activities and assets of the business b) The ratio of liquidity which the business must maintain when in operation c) The possibilities of acquiring capital for the business upon establishment and for subsequent expansion d) The possibility for the transfer of ownership in the businesse) The legal requirements concerning the establishment and dissolution of the business 1. a d 2. b e 3. a b d 4. a c d e The correct answer is option 4 (a c d e). 5. a b c d e QUESTION 60 Which one of the following statements is true? 1. If a member of a close corporation dies, the close corporation ceases to exist. 2. The close corporation has better capital acquisition potential than a company. 3. The partnership has minimal legal requirements imposed by the government. The correct answer is option 3. 4. The partners in a partnership have limited liability. 5. The owners of the company have direct control and authority over the business. QUESTION 61 Izel Jooste recently decided on a form of ownership for the preschool business she intends starting in Pretoria. The form of ownership she has chosen means that her business will have a separate legal personality and will be created by the registration of a founding statement. The type of business chosen by Izel is known as a ________________. 1. close corporation The correct answer is option 1. 2. partnership 3. section 21 company 4. private company QUESTION 62 In deciding on a location for her preschool which of the following factors would Izel have to consider? a) the sources of raw material b) the availability of labour c) the proximity of the marketd) the availability of transport facilities 1. a b c 2. a b d 3. a c d 4. b c d 5. a b c d The correct answer is option 5 (a b c d). QUESTION 63 A business plan has a number of components. Which one of the following represents the most important components of the business plan? 1. executive summary, general description of the venture, advertising plan, human resource plan, operating plan, location strategy 2. executive summary, general description of the venture, products and services plan, management plan, operating plan, marketing plan, financial plan The correct answer is option 2. 3. executive summary, general description of the business, production plan,financial strategy, advertising plan, description of the capital requirements of the venture 4. executive summary, ownership information, products and services plan, human resource plan, production plan, operating plan, financial strategy QUESTION 64 The HIV/Aids pandemic as experienced in sub-Saharan Africa is a variable in the ___________ environment, which forms part of the __________ environment, over which managers in an organisation have ___________ control. 1. physical; market; indirect 2. social; market; direct 3. politico-governmental; macro; no 4. social; macro; no The correct answer is option 4. 5. politico-governmental; micro; indirect Read the brief case study below and then answer questions 65 and 66 that follow: Steel giants, ArcelorMittal‟s biggest loss since 2001 The global economic downturn has wreaked havoc on ArcelorMittal SA‟s profits, with the steel giant posting its first loss since mid-2001. Mittal posted a headline loss ofR247 million in the first quarter of this year, a massive reversal from a profit of R2 billion in the same period last year, as a slump in steel demand saw steel prices halved from levels barely six months ago. Still, with more than R7 billion in excess cash it built up during the good times, Mittal has opted to return almost R4 billion to shareholders through a share buyback. More good news for shareholders is that the deal, which will reduce the number of shares in issue, is expected to be earnings enhancing. Mittal shares have slumped from a peak of R265 million to a paltry R58 million in a tumultuous 12-month period, and cash-flush Mittal yesterday said it would spend R3,9 billion to buy up 10% of its stock. All shareholders will participate equally in the buyback, which means the holding of parent group ArcelorMittal, which currently owns 52%, will not be increased. Moreover, CEO Nku Nyembezi-Heita hinted that some of the shares could be used for a future empowerment deal. However, no concrete plan to conclude such a deal was on the table. The group‟s woes were compounded by high input costs, due to supply contracts concluded while prices were high. It also made losses on foreign currency transactions, as the rand strengthened against the dollar during the first quarter of this year. On the upside, Mittal anticipated that a drop in inflation and further rate cuts may oil demand, while steel sales for Eskom‟s new power stations were starting to take off, Nyembezi-Heita said. No further job cuts were on the horizon, she said, but the company was assessing the situation “day to day”. “If market reality dictates that need, we will have to look at it,” she said. Question 65 As a result of the global economic downturn, Mittal has experienced its first major loss since mid-2001. The global economic downturn causing havoc on Mittal‟s profits is an event in Mittal‟s ________ environment. 1. Market 2. Micro 3. Macro The correct answer is option 3. 4. SocialQuestion 66 Mittal is anticipating the drop in inflation to oil demand. The effect of inflation is a variable in Mittal‟s _______environment which forms part of the ________environment over which Mittal management has_______ control. 1. economic; macro; no The correct answer is option 1. 2. social; macro; indirect 3. economic; market; no 4. social; market; no QUESTION 67 Which statements regarding the market environment are correct? a) The market environment has an indirect influence on the business, because this is where competitors compete, where the customer is found and where the suppliers and intermediaries operate. b) Suppliers are those institutions used to bridge the gaps between the manufacturer and the customer. c) The market environment has a direct influence on the business, because this is where the competitors compete, where the customer is found and where the suppliers and intermediaries operate. d) The micro-environment consists of the business itself, over which management has complete control and includes variables such as the vision of the business. 1. a b 2. b c d 3. c d The correct answer is option 3. 4. a b c d Consider the diagram below and then answer question 68 that follows. MicroEnvironment Macro Environemnt Market Environment a b cQUESTION 68 The various sub-environments within the management environment influence each other in different ways. In the diagram above, (b) represents ___________________ while (d) represents__________ 1. influence on consumers through strategy; direct influence through economic policies and social variables. 2. influence on consumers through strategy; direct influence by com petitors. 3. direct influence by competitors; indirect influence through factors such as interest rates or legislation. The correct answer is option 3. 4. indirect influence on competitors through strategy; direct influence through technological innovation and legislative developments. QUESTION 69 Which of the following are examples of variables in the macro environment? a) Dramatic increase in bank interest rates having a negative impact on the disposable income of consumers. b) The dramatic increase in the fuel price and the knock-on effect on the prices of food and other commodities c) The impact of HIV/AIDS on the workplace and on employees d) The involvement of multiple stakeholders in policy and programme development for the organisation 1. a b 2. a b c The correct answer is option 2 (a b c). 3. b c d 4. a b c d QUESTION 70 The most elementary form of environmental scanning involves______________ 1. the collection of primary information or special investigations. 2. the establishment of a scanning unit. 3. the use of industrial analysts to make market forecasts. 4. the collection and updating of secondary information. The correct answer is option 4.QUESTION 71 Identify the most dominant causes of business failure. a) managerial incompetence b) lack of leadership c) excessive competition d) lack of managerial experience 1. a b 2. a c 3. a b c 4. a b d The correct answer is option 4 (a b d). QUESTION 72 Which one of the following statements is wrong? Management is necessary to ________________ 1. direct an enterprise towards its goals. 2. keep the operations of an enterprise on a balanced course. 3. keep the enterprise in equilibrium with its environment. 4. attain enterprise goals at the lowest possible productivity levels. The correct answer is option 4. QUESTION 73 The school of management thought which sought to identify the most important functions in a business and the most important elements of management is known as ___________________ 1. the scientific school. 2. the quantitative school. 3. the management process school. The correct answer is option 3. 4. the human relations school. QUESTION 74 The school of management thought which sought to prove that productivity could be increased through the application of observation, job analysis, job measurement and the redesigning of jobs is known as ___________________ 1. the scientific school. The correct answer is option 1.2. the quantitative school. 3. the management process school. 4. the human relations school. QUESTION 75 Match the school of management thought listed in column A with the appropriate pioneering scientist in column B School of management thought Description a Scientific school (i) Elton Mayo b Human relations movement (ii) Henri Fayol c Management process school (iii) FW Taylor 1. a (i) b (ii) c (iii) 2. a (ii) b (i) c (iii) 3. a (i) b (iii) c (ii) 4. a (iii) b (i) c (ii) The correct answer is option 4. QUESTION 76 Thembi is a shift supervisor at Grootgeluk Coal Mine. As such she is responsible for the day-to-day activities of and short-term planning for her section. As a shift supervisor within the business, Thembi is a member of ___________ management. 1. Top 2. Middle 3. Lower The correct answer is option 3. 4. Tactical QUESTION 77 Which two of the following statements are correct? a) The higher the management level, the more interpersonal skills are required. b) Top management requires more technical skill than lower management. c) Lower management requires more technical skill than top management.d) Conceptual skill is the mental ability of a manager to view a business in its individual parts. e) The ability to use knowledge of a particular discipline is known as technical skills. 1. a b 2. b c 3. a d 4. c e The correct answer is option 4 (c e). 5. b e QUESTION 78 Which of the following represent an information role performed by a manager? a) the manager as a spokesperson b) the manager as an analyst c) the manager as an entrepreneur d) the manager as a troubleshooter 1. a b The correct answer is option 1 (a b). 2. a d 3. a c d 4. b c d 5. a b c d QUESTION 79 Thabo is a manager at a Netcare hospital in Pretoria. He made use of a research company (TNS Global) to determine how current patients/customers feel about the service provided by the hospital. Once the research company provided Thabo with the results and analysis, Thabo arranged a meeting with his supervisors and colleagues to discuss how Netcare could provide a better service. The role that Thabo portrayed is _____________role. 1. an interpersonal 2. a decision making 3. a technical skills 4. an equilibrium-seeking 5. an information The correct answer is option 5.QUESTION 80 In developing alternative plans during the planning process, management will constantly bear which of the following facets in mind? a) external factors b) strong and weak points c) rational decision making d) strategic planning 1. a b The correct answer is 1 (a b). 2. b d 3. a b c 4. b c d 5. a b c d QUESTION 81 Unilever is a company started by the Lever brothers in the early 1900s. They produced mainly soap products. Well-known brands that have been produced over the years by Unilever in South Africa include Sunlight, OMO, SKIP and Surf. Over time Unilever have extended their core production to include product ranges such as ice cream, margarine and personal hygiene products. In South Africa we have come to know these brands as Ola, Stork, Rama, Sunsilk, Vaseline, Ponds and many more. To produce these items over the decades, Unilever had to take over firms or set up entirely new business entities. This is known as____________ 1. diversification. The correct answer is option 1. 2. liquidation. 3. divestiture. 4. joint venture. 5. a concentration strategy. QUESTION 82 Which one of the following amalgamations is an example of horizontal integration? 1. An abattoir purchasing a number of butcheries. 2. A motor manufacturer purchasing a shoe factory. 3. A tyre manufacturing company purchasing a tyre fitment enterprise.4. A national bookseller purchasing a number of small independent bookstores. The correct answer is option 4. QUESTION 83 Which of the following are examples of strategic decisions? a) Woolworths's decision to concentrate its business not only on clothing, but also to move into the grocery market b) Standard Bank‟s decision to open a new branch in Hermanus c) Unisa's decision to send more audio cassettes to students d) Kodak's decision to return to South Africa e) Nissan's decision to enter the small passenger car market with the introduction of the Nissan Micra 1. a b c 2. a b d 3. a d e The correct answer is option 3 (a d e). 4. b c e 5. a b c d e QUESTION 84 Which of the following is an operational goal? 1. Increase Pick n Pay‟s market share by 6% per annum. 2. Obtain temporary staff members to assist over the busy holiday season in Pick n Pay stores. The correct answer is option 2. 3. Pick n Pay wants to be South Africa‟s preferred retailer. 4. Increase total turnover by 10% over the next 12 mon ths in all Pick n Pay stores. 5. Reduce Pick n Pay‟s staff turnover by 3% over the next three years. QUESTION 85 The authority delegated down the chain of command from the CEO to the General Manager: Operations is known as ________________ authority. If, however, the Manager: Computers and Software were to give instructions to the General Manager: Marketing in the form of advice or recommendations, based on his or her specialist knowledge, this would be referred to as ___________________ authority. 1. functional, line2. staff, line 3. line, functional 4. line, staff The correct answer is option 4. QUESTION 86 A key principle of organising is the concept of span of management. A narrow span of management leads to ____________________. a) a tall organisational structure b) a long chain of command c) overworked managers d) slow decision making e) a flat organisational structure 1. a b c 2. a b d The correct answer is option 2 (a b d). 3. a c d 4. b c d 5. c d e QUESTION 87 To overcome some of the inherent problems with conventional organisational structures, managers have started to structure their organisations in new and different ways. One of the contemporary approaches that has emerged allows for both horizontal and vertical lines of authority to occur in the same structure. This approach to structuring organisations is particularly suited to large organisations and to those handling many projects and is known as the __________structure. 1. Virtual 2. Boundaryless 3. Team 4. Matrix The correct answer is option 4.QUESTION 88 Match the form of departmentalisation in column A with the appropriate example in column B. Departmentalisation Example a According to function (i) The company has departments that focus on selling equipment specifically to the motor industry, the computer industry and the Navy b According to location (ii) The company has departments that specialise in selling its products in Gauteng and KwaZulu-Natal respectively c According to customer (iii) Sasol has various business units that focus on the production of different products such as Sasol Synthetic Fuels, Sasol Fertilisers and Sasol Plastics d According to product (iv) The company has grouped all its financial activities under the financial manager or section, and all its marketing activities under the marketing manager or section 1. a (iv) b (ii) c (i) d (iii) The correct answer is option 1. 2. a (ii) b (iv) c (iii) d (i) 3. a (iii) b (iv) c (i) d (ii) 4. a (ii) b (iii) c (iv) d (i) QUESTION 89 A manager is likely to be a successful leader if he/she _________________ 1. uses his/her formal authority to motivate his/her subordinates. 2. can activate his/her subordinates to carry out his/her instructions. 3. can influence his/her subordinates positively without using authority. The correct answer is option 3. 4. uses legitimate power to get his/her subordinates to perform their duties.QUESTION 90 A manager has _________________ power if her subordinates obey her simply because they like, respect and identify with her. This is a form of _________ power. 1. expert; personal 2. legitimate; positional 3. coercive; positional 4. referent; personal The correct answer is option 4. QUESTION 91 When an employee is appointed to a certain managerial post, he/she will have been given ___________ power. This is a form of _____________ power. 1. expert; personal 2. legitimate; positional The correct answer is option 2. 3. coercive; positional 4. referent; personal QUESTION 92 Which of the following statements on groups are correct? a) The success of a group depends on the quality of its leadership. b) The success of a leader depends on the members' acceptance of his or her leadership. c) Group pressure influences most members to adhere to group norms. d) All groups have a strong sense of solidarity amongst their members. 1. b c 2. c d 3. a b c The correct answer is option 3 (a b c). 4. a b d 5. a b c d QUESTION 93 The managing director of a local computer business must inform his employees that the business will soon merge with a large international business. Which of the following are prerequisites for effective communication between the managing director and his employees?a) The communication channel must suit the employees. b) The message must be interpreted correctly by the employees. c) The managing director must determine whether the message has been correctly interpreted. d) The employees must be able to grasp the concept the managing director wishes to convey. 1. a b 2. c d 3. a b c The correct answer is option 4 (a b c d). 4. a b c d QUESTION 94 In terms of Maslow‟s Hierarchy of Needs challenging assignments and the opportunity to participate in decision making will go a long way towards satisfying ______________ needs of the employees? 1. Basic 2. Security 3. Social 4. Esteem 5. self-actualisation The correct answer is option 5. QUESTION 95 The primary purpose of the control process is to______________. 1. establish the standards that have to be maintained 2. see that the results come as close as possible to the objectives The correct answer is option 2. 3. take corrective action to counteract deviations 4. continually analyse the cause of deviations QUESTION 96 Managers in the organisation must exercise control over four key areas, namely physical, financial, information and human resources. Which of the following are control systems used in the control of human resources? a) equity analysisb) performance measurement c) affirmative action d) labour turnover e) absenteeism ratios 1. a c 2. b c 3. b d e The correct answer is option 3 (b d e). 4. a c d e 5. a b c e QUESTION 97 Study the diagram below and answer the question. The diagram above refers to the control process. In the diagram, which step in the control process is represented by (b)? 1. determining the performance gap The correct answer is option 1. 2. determining goals 3. benchmarking performance 4. establishing standards a Measuring actual performance b Rectifying deviationsQUESTION 98 Corporate citizenship __________________ 1. measures the financial, social and environmental impacts of business. 2. refers to how a company‟s objectives, strategies and decision-making structures are developed, implemented and monitored and also relates to the extent to which the company is accountable to its shareholders and stakeholders. 3. is the extent to which an organisation gains acceptance in a foreign market. 4. is about proactive efforts by companies to make a positive contribution to society. The correct answer is option 4. QUESTION 99 In an effort to show your parents what you have learnt in MNB 101D, you tell them that, “The Primary Stakeholders of the company are________” a) the environmental NGOs. b) the executive board members. c) the government. d) the media. e) the shareholders. Select the most appropriate combination. 1. a b d 2. a c d 3. b c e The correct answer is option 3 (b c e). 4. a b c d QUESTION 100 Which of the following statements about the stakeholder engagement process are correct? a) It is a process that allows stakeholders to determine what they want from the company and what they consider to be the issues and culture of the company. b) It involves mapping the internal and the external stakeholders and defining their roles in, and impact on the company. c) It is interchangeable with the company‟s public relations function. d) The company may use instruments such as questionnaires, market research, and personal visits to gather information on its stakeholders.e) It is a process that can be seen to be at the heart of good corporate citizenship. 1. a b 2. a b c e 3. a b d c 4. b c d 5. a b d e The correct answer is option 5. QUESTION 101 A business’s effort to provide the greatest possible need satisfaction with limited available resources is known as....................................... 1. need satisfaction. 2. productivity. 3. rate of return on total capital. 4. the economic principle. The correct answer is option 4. QUESTION 102 Within the free-market economy …………… and ……………… is true. 1. free competition ; high social costs The correct answer is option 1. 2. free competition ; limited choice of a job 3. no profit is allowed ; limited right to strike 4. no profit is allowed ; low productivity QUESTION 103 The economic principle applies to non-profit seeking business as it does to profit seeking business. Is this statement true or false? 1. True The correct answer is option 1. 2. False QUESTION 104 The primary task of business management is to ……………………. 1. provide solutions for the management problems experienced in business enterprises. 2. study the economic needs that have to be satisfied in the community.3. examine the factors in the macro environment which influence the activities in the micro environment. 4. determine how an enterprise can achieve the highest possible output with the least possible input. The correct answer is option 4. QUESTION 105 Which one of the following statements regarding socialism is true? 1. Farmers, factory owners, industrialists and individuals are free to do what they want with their assets. 2. The state owns and controls the community’s resources. 3. The state owns and controls principle industries such as transportation, health services and energy. The correct answer is option 3. 4. There is minimum state interference in markets. Read the scenario below and answer questions 106 to 108.Naledi is an entrepreneur. She purchases organic fresh produce and makes homemade baby meals for day-care facilities in her community. Naledi‟s business is called Mama‟s Kitchen. Naledi has sensed that there is a definite need for such a service in her community. The day-care facilities are so filled with children that the labour cost for these facilities to produce their own whole some meals is just too vast. Naledi needs to be in charge of her own destiny. She knows that in order for her to be successful, she cannot rely on luck and fortune; she has to work hard and take responsibility for her own actions. In order for Mama‟s Kitchen to be successful, she needs to have certain managerial skills. QUESTION 106 Naledi knows that one of her strong points is that she can persuade and motivate other people. The characteristic described in the scenario is …………………. 1. achievement motivation. 2. an internal locus of control. The correct answer is option 2. 3. innovation and creativity. 4. risk taking.QUESTION 107 During Naledi‟s decision making regarding her new venture, she had to determine whether Mama‟s Kitchen would be successful or not. This is known as a/an…..………………….. 1. opportunity. 2. business plan. 3. feasibility study. The correct answer is option 3. 4. implementation plan. QUESTION 108 Help Naledi to match the management skills in column A with the correct description in column B. Column A Managerial skills Column B Description a. Strategy skill i. Determining the needs of the day-care facilities, how to satisfy their needs and building a relationship with each day-care facility. b. Planning skill ii. The ability to organise, set specific goals and draw schedules to ensure that the fresh produce is available at the right place and the right time c. Marketing skill iii. The ability to keep track of expenditure, monitor cash flow and assess investments d. Project management skill iv. The ability to consider what the future might offer Mama‟s Kitchen and what needs to be done now to prepare for it. v. The ability to deal with people, leadership and motivation. vi. The ability to consider Mama‟s Kitchen as a whole and to understand how it fits within the market place. 1. a (i) b(ii) c(v) d(iv) 2. a (ii) b(iv) c(v) d(iii) 3. a (v) b(ii) c(iii) d(i) 4. a (vi) b(iv) c(i) d(ii) The correct answer is option 4.Read the scenario below and answer question 109. Nathan and his wife love cats. So much so that they have rescued and housed seven cats in their neighbourhood. Cats have a wandering nature which comes to the fore once owners go on holiday. When owners are away, cats start to wander the streets of Nathan‟s neighbourhood and might become startled and lost. Nathan realised that looking after cats might be a wonderful business opportunity. He considered opening a Cat hotel. He spoke to a number of cat owners in his neighbourhood and found that they would consider leaving their cats in a facility where they would be looked after and nurtured during the holiday periods, setting the owners‟ minds at ease on the safety of their cats. Nathan had to follow the entrepreneurial process in order to reach the implementation and launch of his idea. QUESTION 109 Put the following steps of the entrepreneurial process in the correct order for Nathan‟s Cat hotel. a) Nathan had to assess the opportunity of the Cat hotel and determine whether it was a feasible idea. b) Nathan had to compile a business plan in order to obtain finance from the bank. c) Nathan had to launch the Cat hotel and manage the new business. d) Nathan had to clarify whether he and his wife have all the abilities and skills it takes to start the Cat hotel. e) Beside capital, Nathan had to determine whether they have time, energy and other resources in order to launch the Cat hotel. 1) a b c d e 2) b c d e a 3) e c d b a 4) d e a b c The correct answer is option 4. QUESTION 110 Which of the following is an advantage of purchasing an existing business? 1) Customers are familiar with the location of the business. The correct answer is option 1. 2) The image of the existing business might be difficult to change. 3) Potential liability for past business contracts.4) Possible obsolete inventory and equipment. Read the scenario below and answer questions 111 to 113 that follow. Lindiwe is a young lady who grew up in the foothills of the Drakensberg. She grew up among women who taught her that she had a lot of potential to be her own boss. She has spent many an afternoon after school listening to the stories the women told while making their arts and crafts. Lindiwe realised that what might come naturally to these women could be turned into a business opportunity. And so her business venture idea was born. She called her business Smart Creations and decided to focus the attention of the business on authentic South African jewellery and adornments. QUESTION 111 Smart Creations is a sole proprietorship. Which one of the following statements regarding a sole proprietorship is true? 1) Smart Creations‟ lifespan is directly linked to Lindiwe‟s lifespan. The correct answer is option 1. 2) Smart Creations is liable for debts and liabilities. 3) Smart Creations was created by means of a founding statement. 4) Should Lindiwe wish to transfer ownership of Smart Creations, it will be done by means of free transfer of shares. QUESTION 112 Lindiwe is tired of doing all the work on her own. She decides to change Smart Creations from a sole proprietorship to a partnership. Lindiwe will now be partners with her friends Naomi and Carla. Which of the following applies to a partnership? 1) Lindiwe, Naomi and Carla are not liable for any debts or liabilities of Smart Creations. 2) Lindiwe, Naomi and Carla have a fiduciary relationship with Smart Creations. 3) Smart Creations as a partnership is a juristic person. 4) Smart Creations as a partnership is not a taxpayer. The correct answer is option 4.QUESTION 113 Lindiwe, Naomi and Carla are the owners of Smart Creations. They wish to register Smart Creations as a close corporation. A close corporation is created by the………………….. 1) memorandum of association. 2) registration of a founding statement. The correct answer is option 2. 3) transfer of shares. 4) general meeting of members. QUESTION 114 Nirvashni is an Indian lady living in the Laudium area, just outside Pretoria. She realised that there are a lot of elderly people living alone in this area. She came up with an idea to provide traditional Indian home cooked meals for the elderly living in Laudium, and delivering these meals to their homes. Nirvashni has two staff members Lesedi, a lady assisting her in the kitchen and Mokgosi the driver doing the deliveries. Nirvashni now needs to develop a business plan to ensure funds for her venture. A business plan is of extreme importance for the various stakeholders of a venture. Which of the following statements is correct for internal stakeholders? 1) Nirvashni‟s business plan is important for her customers. Her customers want the assurance that her home cooked Indian meals will be available for a long time. They come to rely on Nirvashni to provide them with regular meals whether it be twice or three times a week. Some of her customers ask her what her plans are for the future and she can happily tell them that she plans to expand her business as is set out in her business plan. 2) Nirvashni needs to have investors in order to facilitate the expansion of her business. In order to do this she decided to appeal to the business council of Laudium. The business council would like to know from Nirvahsni what their return on investment will be. Nirvashni relies heavily on her business plan in order to provide the correct information to the council. 3) Nirvashni‟s employees Lesedi and Mokgosi had a meeting with Nirvashni to discuss her business plan. They have a clear understanding of Nirvashni‟s plans for the future. Her vision and mission is clearly set out in the business plan. Nirvashni hopes that the business plan will encourage all current and future employees to have an honest and diligent work-ethic. The correct answer is option 3.4) Nirvashni has indicated in her business plan that she will have to put her personal assets (her house and a plot of land her family owned in the Natal Midlands) as collateral for her business. She has put the details down in the business plan she hopes to propose to ABSA bank, should the Laudium business council decline investing in her venture. QUESTION 15 Match the items in the business plan, in Column A with the description in Column B. Column A: Business plan Item Column B: Description a. Marketing plan i. Gives an overview of the business plan. Highlights the significant points of the entire business plan. b. General company description ii. Describes the facilities and the labour to be used, raw materials and processing requirements c. Operating plan iii. Identifies the customers and the competitors d. Products and services plan iv. Explains the history of the company, the type of business and legal organisation v. Determines the key players in the business such as investors and the management team. It also states their experience and competencies. vi. Describes the product and services points and their unique features. It also explains why people will buy the product. 1) a(i) b(ii) c(iii) d(iv) 2) a(iii) b(iv) c(ii) d(vi) The correct answer is option 2. 3) a(ii) b(i) c(iii) d(v) 4) a(iv) b(iii) c(ii) d(i)QUESTION 116 Match the following macro variables in Column A with the correct description in Column B Column A: Macro variables Column B: Description a. Technological environment i. More and more organisations are looking for alternative energy sources such as solar power. b. Economic environment ii. South Africa‟s inflation rate is steady at 4.6% at July 2010 c. Social environment iii. The effect HIV/Aids has on a labour intensive industry such as mining. d. Physical environment iv. The pressure of the UN (United Nations) on Zimbabwe. v. Results in the development of new machinery, products, approaches to management and higher productivity. vi. The non-smoking health regulation as put forward by the health ministry. 1) a (i) b(ii) c(v) d(iv) 2) a (ii) b(iv) c(v) d(iii) 3) a (v) b(ii) c(iii) d(i) The correct answer is option 3. 4) a (vi) b(iv) c(i) d(ii) Read the scenario below and answer question 117 and 118 that follow. Dineo owns a nursery in the Modimole area. She purchased the franchise nursery from the current owners. The franchise Dineo owns is a Plantland nursery. She purchased the Plantland nursery from an elderly couple who could not continue with the running of the nursery due to ill health.QUESTION 117 Which of the following descriptions is relevant to the microenvironment for Dineo‟s Plantland in Modimole? 1) Dineo‟s suppliers include Keith Kirsten, Margaret Roberts and Malan and Sons. 2) Dineo has to compete with other nurseries in the area, all of which are privately owned. 3) Dineo needs to be aware that there is an imminent increase in petrol which might influence her nursery directly. 4) Dineo has set a clear objective and vision for her nursery. The correct answer is option 4. QUESTION 118 Dineo has been very aware of climate change over the past few years. It is one of her aspirations to become part of the global drive towards safe and „greener‟ energy. Besides implementing „green‟ strategies like a solar geyser and switching off unnecessary lights andequipment, Dineo is also working towards making consumers aware of reducing their carbon footprint by means of purchasing indigenous plants and trees as well as water wise lawns and plants for gardens. Dineo is responding to change in the …………………. environment. 1) Economical 2) Social 3) Physical The correct answer is option 3. 4) Technological QUESTION 119 The most elementary form of environmental scanning involves…………… 1) the collection of primary information or special investigations. 2) the establishment of a scanning unit. 3) the use of industrial analysts to make market forecasts. 4) the collection and updating of secondary information. The correct answer is option 4.QUESTION 120 Within the free-market economy …………… and ……………… is true. 1) free competition ; high social costs The correct answer is option 1. 2) free competition ; limited choice of a job 3) no profit is allowed ; limited right to strike 4) no profit is allowed ; low productivity Read the case study below and answer questions 121 to 123 that follow. Shell is one of the world‟s largest and most profitable companies and has consistently made healthy profits which are then used productively to reward shareholders in the form of dividend and to plough back into developing new research, new products, new forms of energy for the future and better ways of managing fuel reserves. Shell‟s main shareholders consist of large institutional stockholders, employees and the general public. Shell believes that it has a key responsibility to protect shareholders‟ investment, and provide a long term return competitive with those of other leading companies in the industry. Shell believes that it will continue to exist and grow if it can balance the needs of stakeholder groups. Shell employs three criteria in making such decisions. It assesses whether: (1) the economic impact of the activity is likely to yield a good return for shareholders (2) the social impact will be suitable for employees and communities; and (3) the long-term effect of its activity will harm the environment. To avoid conflict, Shell sets minimum levels that must be met for all three areas before making a major decision or investment in any one. QUESTION 121 Shell understands that they need to consider the social, environmental as well as the economic impacts the company has. This approach is known as……………. 1) the triple bottom line (TBL). The correct answer is option 1. 2) the stakeholder engagement process. 3) corporate social investment (CSI). 4) corporate governance.QUESTION 122 Balancing the needs of all stakeholders is particularly important for large energy companies like Shell. Some are internal to the business and others are external. The external stakeholders of Shell are ……………………. a) customers. b) employees. c) local community. d) shareholders. 1) a b c 2) a c d The correct answer is option 2. 3) a b d 4) b c d QUESTION 123 The internal stakeholders of Shell are ………………….. a) customers. b) employees. c) executive board members. d) shareholders. 1) a b 2) c d 3) a d 4) b c The correct answer is option 4. QUESTION 124 Which statements about the stakeholder engagement process are correct? The stakeholder process …………………. a) allows stakeholders to determine what they want from the company. b) involves mapping only the internal stakeholders. c) involves defining the role and impact the stakeholders have in the organisation. d) involves using methods such as questionnaires, focus groups and market research to engage with stakeholders. 1) a c2) a b c 3) a c d The correct answer is option 3. 4) a b c d QUESTION 125 Corporate social responsibility ………………… 1) measures the financial, social and environmental impacts of a business. 2) refers to how a company‟s objectives, strategies and decision-making structures are developed, implemented and monitored. 3) is the extent to which an organisation gains acceptance in a foreign market. 4) is about proactive efforts by companies to make a positive contribution to society. The correct answer is option 4. QUESTION 126 Match the term in Column A to the description in Column B. Column A: Term Column B: Description a Sustainable development (i) Refers to the increasing expectations for companies to publicly report not just on financial matters, but also on social and environmental issues. b Corporate social investment (CSI) (ii) Refers to how a company’s objectives and strategy and decision-making structures are developed, implemented and monitored. c Sustainability reporting (iii) Refers to the need to improve the lives of poor people and to protect the natural environment d Corporate governance (iv) Refers to a company‟s philanthropic initiatives, such as sponsorships for students. 1) a (iii) b (iv) c (i) d (ii) The correct answer is option 1. 2) a (iv) b (iii) c (ii) d (i) 3) a (i) b (iii) c (ii) d (iv) 4) a (ii) b (i) c (iv) d (iii)QUESTION 127 Identify the statements that indicate the importance of planning. a) Planning promotes cooperation. b) Planning gives direction. c) Planning is more important in smaller businesses. d) Planning compels managers to look to the future. 1) a b c 2) a b d The correct answer is option 2. 3) a c d 4) b c d QUESTION 128 Tim is busy planning the future of his newspaper agency and has approached you to assist with the process. He has indicated that he would like to use the bottom-up approach (also known as Management by objectives) for setting goals. What is the correct way to use this approach? 1) Tim sets all of the goals himself and holds a staff meeting where he explains it to the staff at the newspaper. 2) Tim calls Aggie, the office manager, to assist him with the setting of the goals, but he decides not to use Aggie‟s input. 3) Tim approaches a management consultant from one of his advertisers to assess which goals he should use. 4) Tim calls a meeting with Mandla the Reporter, Eroll the Dispatcher and Aggie the Office Manager and asks them to help set joint goals for the agency. The correct answer is option 4. QUESTION 129 Match the corporate strategy in Column A with the correct description in Column B. Column A Column B a Market development strategy i An organisation constantly improving products to take advantage of the initial high profitability of a better product.b Productdevelopment strategy ii A business that directs all its resources and skills to the profitable growth of a single product in a single market. c Concentrationgrowth strategy iii An organisation develops new products for existing markets. iv The organisation plans to develop existing markets for its present products more intensively v Two or more firms embark on some project that is too big for one to tackle on its own. 1) a (iv) b (ii) c (iii) 2) a (iv) b (iii) c (ii) The correct answer is option 2. 3) a (ii) b (iv) c (i) 4) a (ii) b (i) c (v) QUESTION 130 In expanding its share of the retail and grocery market in South Africa the Shoprite group has embarked on a major campaign to acquire grocery retailers similar to itself. This has led to a marked increase in market share for the group. What kind of long-term growth strategy has been adopted by Shoprite? 1) Market development 2) Concentration growth 3) Horizontal integration The correct answer is option 3. 4) Diversification QUESTION 131 Which two of the following are meaningful annual objectives for a sales manager of a large business? a) To increase sales by 15% by December 2012. b) To limit bad debts to a minimum. c) To maintain a gross profit margin of 38% per annum. d) To motivate sales representatives.1) a b 2) a c The correct answer is option 2. 43 3) b d 4) c d QUESTION 132 Which of the following are requirements for setting sound objectives? a) Objectives have to be measurable. b) Objectives should be set consistently. c) Goal setting should be integrated into the remuneration system of an organisation. d) Management must ensure that employees accept the objectives. 1) a b c 2) a b d 3) a c d 4) a b c d The correct answer is option 4. QUESTION 133 Sarah decides to open a sandwich delivery business from her house. Sarah realizes that in order to increase productivity, she will need to separate the different tasks into smaller units. She hires a chef to make the sandwiches and three people to do the deliveries so that she can focus on the marketing and management aspects of the business. The division of labour and the way in which Sarah separated the tasks into smaller units to improve productivity is known as .......................... 1) job design. 2) specialisation. The correct answer is option 2. 3) departmentalisation. 4) job enlargement.QUESTION 134 Match the term in Column A to the description in Column B. Column A: Term Column B: Description a Responsibility (i) The manager has twenty employees who report directly to him/her. b Line authority (ii) The employees must be able to account for the work they have done. c Staff authority (iii) The marketing research department makes recommendations to the marketing manager, based on research results. d Span of management (iv) The managing director instructs the marketing manager on goals to be achieved, while the marketing manager tells the advertising manager what to do to achieve these goals. 1) a (i) b (ii) c (iii) d (iv) 2) a (ii) b (iv) c (iii) d (i) The correct answer is option 2. 3) depa (iii) b (iv) c (i) d (ii) 4) a (ii) b (iii) c (iv) d (i) Read the brief case study below and answer questions 135 and 136 that follow. Hallmark used to design cards (birthday cards, greeting cards, Christmas cards) in a step-by-step process – artists and writers rarely spoke to one another, and the employees who created the lettering worked in another building. Because of delays and rework, it sometimes took the company more than two years to create and produce a new greeting card. Now Hallmark puts teams of employees from every department in the same room and empowers each team to take charge of specific cards. Artists, lithographers, writers, designers and photographers share ideas, critique their own work and make their own decisions without waiting for management permission. Although the decision making is decentralised in terms of the team approach being used, management thought it wise to appoint team leaders on a three month rotational basis. The cycle time for getting new cards to the market has been cut in half. For employees the change has brought more responsibility and greater job satisfaction. The change in structure and organising has also broughtabout new ideas and thinking in the company. Hallmark recently also introduced its new line of postcards which are doing extremely well in the market. QUESTION 135 How was Hallmark departmentalised before the company set about changing the way the business is organised? 1. According to customer. 2. According to function. The correct answer is option 2. 3. According to location. 4. According to product. QUESTION 136 How is Hallmark departmentalised now? 1. According to customer. 2. According to function. 3. According to location. 4. According to product. The correct answer is option 4. QUESTION 137 The process of linking the activities of the various departments in an organisation into a single integrated unit is known as ....................... 1. chain of command. 2. span of management. 3. coordination. The correct answer is option 3. 4. planning. QUESTION 138 Which one of the following is not a basic form of departmentalisation? 1. According to product. 2. According to location. 3. According to customers. 4. According to resources. The correct answer is option 4.QUESTION 139 The tendency of individuals to put in less effort when working in a group than when working individually is known as 1. social loafing. The correct answer is option 1. 2. incompetence. 3. consistency. 4. moonlighting. QUESTION 140 Deon Leminie owns Niche Logistics, a company formed in 2005 to keep the upmarket retail group‟s online delivery service up to speed in Johannesburg, Pretoria, Durban, Cape Town and Bloemfontein. „I was working as a floor supervisor for The Parcel Company, which went into liquidation on Friday,‟ he recalls. „One of its accounts was making deliveries for Woolworth‟s, a client I‟d taken a close interest in. Delivering groceries was in my blood. Growing up in Western Cape I used to sell my granny‟s fruit and vegetables from a cart on Fridays after school. It struck a chord. So I called up the owner of The Parcel Company on the Sunday and explained in detail how we could keep that part of the company in operation. He agreed, and said I should run it‟.Whilst working as a floor supervisor, Deon Leminie was part of …………………….. management. Deon has the right to insist that employees do their work and to discipline or dismiss them if they fail to comply, he therefore possesses…………………………. power. 1. lower; legitimate The correct answer is option 1. 2. lower; expert 3. middle; legitimate 4. middle; expertQUESTION 141 Match the correct description in Column B to the leadership component in Column A. Column A Column B a Authority i Temba instructs her secretary to design invitations for their launch as she is too busy to design them herself. b Power ii Paul, as the manager of a fast food restaurant, is accountable for ensuring the restaurant’s profitability. c Responsibility iii As the manager, Chloe can order her sale staff to increase their sales. d Delegation iv Jonas has the power to fire any employee as he wishes. v Kim has the remarkable ability to persuade her employees in such a way that her company reaches its objectives. 1. a(ii); b(iv); c(i); d(iii) 2. a(i); b(ii); c(iii); d(v) 3. a(iii); b(v); c(ii); d(i) The correct answer is option 3. 4. a(iii); b(i); c(iv); d(ii) QUESTION 142 Ntombi is the managing director of a big cosmetic company, Beauty Inc. They have been in business for over 20 years and have decided to expand their market to include male customers with a new range called „Beauty for Men‟. Ntombi appoints a committee comprising of employees from the marketing department to investigate what cosmetic products men would be interested in. The group will then disband after completion of the task. This is a type of ____________group known as a _______________group. 1. formal/command 2. formal/task The correct answer is option 2. 3. informal/command 4. informal/taskQUESTION 143 Match the type of power in Column A with the examples of people who possess that type of power in Column B. Column A: Type of power Column B: Example a Legitimate power (i) A group of gangsters b Referent power (ii) Bill Gates c Coercive power (iii) Nelson Mandela d Expert power (iv) The CEO of a company 1. a (i) b (ii) c (iii) d (iv) 2. a (i) b (iii) c (iv) d (ii) 3. a (iv) b (ii) c (i) d (iii) 4. a (iv) b (iii) c (i) d (ii) The correct answer is option 4. QUESTION 144 The basic model of motivation takes place in a series of steps. These steps are listed below: a) Satisfaction b) internal needs, motives or drives c) reinforcement d) purpose or goals e) behaviour or action Which one of the following is the correct order of the steps in the motivation process? 1. a b c d e 2. d b e c a 3. b e d a c The correct answer is option 3. 4. b d c e aQUESTION 145 Quinn has her own medical practice and has appointed an additional four physicians to look after patients. Quinn decides to implement a new control system that monitors physicians‟ hygiene levels rigorously. In order for her system to be effective, which characteristics are required? 1. Complexity and flexibility 2. Creativity and integration 3. Creativity and complexity 4. Integration and flexibility The correct answer is option 4. QUESTION 146 Sophie has a manufacturing company. Sophie wants to keep inventory costs as low as possible provided the method she uses does not cause shortages or delay the manufacturing process. Which of the following control systems can she make use of in order to control her inventory? a) EOQ (Economic ordering quantity) b) Ratio analysis c) Performance measurement d) Just-in-time 1. a b 2. c d 3. a d The correct answer is option 3. 4. b c QUESTION 147 Thabo is the CEO of Computers Ltd, an IT company in Pretoria. Thabo uses certain control procedures to ensure that the company is progressing towards their goals and that the company’s resources are being used properly and productively. He does this by means of the control process which consists of four steps. Arrange the statements below in the correct order according to the four steps of the control process. a) Thabo revises some of the company’s strategies in an attempt to accomplish the standards that were not met.b) Thabo establishes certain performance standards related to profitability, market share, productivity and staff development. These performance standards enable Thabo to monitor the company’s strategies and goals. c) Thabo is concerned to see that sales are 10% lower than the previous year and decides to investigate why there was a deviation between the previous year and the current year. d) Thabo measures the actual performance of the company to indicate whether there are disparities between performance standards and actual performance of the company. 1. b d c a The correct answer is option 1. 2. d c a b 3. c a b d 4. a c d b QUESTION 148 In terms of Maslow‟s Hierarchy of Needs the provision of things such as a salary, rest rooms, a cafeteria, heating and adequate lighting will go a long way towards satisfying ______________ needs of the employees? 1. Physiological The correct answer is option 1. 2. Security 3. Social 4. Esteem QUESTION 149 Which of the following factors make control in the present day business important? a) The rapidity of change in the business environment. b) The increasing size of the organisation. c) The delegation of tasks to subordinates. d) The possibility of managers and subordinates making poor decisions and committing errors. e) The organising of subordinates. 1. a b c d The correct answer is option 1. 2. b d 3. a c d e4. c d QUESTION 150 Which of the following statements concerning control are correct? a) Control means applying strict discipline to subordinates. b) Control means getting planning and performance to coincide. c) Control is the last fundamental task of the management process. d) Control is a continuous process. 1. a b 2. b d 3. b c d The correct answer is option 3. 4. a c d QUESTION 151 Which one of the following statements about a free-market economy is correct? 1. In a free market economy the state controls the most important industries and resources. 2. The state plays no role in a free-market economy. 3. Profit and reward according to individual ability represents the main driving force in a free-market economy. The correct answer is option 3. 4. In a free-market economy workers have a limited right to strike. QUESTION 152 The prevailing economic system in South Africa can best be described as a ____________ - oriented economy with a ____________ degree of government participation and control. 1. market; high The correct answer is option 1. 2. socialist; high 3. socialist; low 4. market; low QUESTION 153 Business Management followed a course of pragmatic empirical development through which certain approaches, methods and functional areas have taken shapein conformity with practical needs. Place the phases of this empirical development in the correct sequence from the year 1900. a) Sales management b) Production management c) Strategic planning d) The marketing concept 1. a b c d 2. b a d c The correct answer is option 2 (b a d c). 3. d c a b 4. c a b d QUESTION 154 Society‟s endeavour to achieve the highest possible satisfaction of needs with limited available resources is known as ____________. 1. the economic motive 2. the profit motive 3. entrepreneurship 4. the economic principle The correct answer is option 4. QUESTION 155 The task of business management is _________________. 1. to study the economic needs that have to be satisfied in the community 2. an examination of the factors, methods and principles that enable a business to efficiently and productively maximise its profits The correct answer is option 2. 3. to examine the factors in the macro-environment which influence the activities in the micro-environment 4. to provide solutions for the management problems experienced in businesses QUESTION 156 Jack developed an idea to start a laundromat and thoroughly researched the idea. His laundromat would be different. It would have a coffee bar, a large-screen TV and a good atmosphere where people could meet and relax while getting their laundry done. Banks did not like his idea and refused to fund his business. Jack refused togive up and approached private investors. Ten months later he accumulated enough capital to start his business. What character traits does Jack display as an entrepreneur? a) need for achievement b) high risk-taking propensity c) external locus of control d) self-awareness 1. a b The correct answer is option 1 (a b). 2. c d 3. a d 4. a b c d QUESTION 157 When Jack set about looking for investors for his business, he developed a thorough business plan. Which one of the following represents the most important objective of a business plan? 1. It presents a written plan on how the entrepreneur plans to exploit an opportunity. 2. It provides a way to identify the key variables that will impact on the success of the business. 3. It identifies and describes the nature of the business opportunity or new venture. The correct answer is option 3. 4. It acts as a management instrument for comparing actual results with planned outcomes. QUESTION 158 The entrepreneurial process can be divided into a number of sequential steps. The second last step of this process results in a document that identifies and describes the nature of the new business or opportunity. This document is a result of which step in the entrepreneurial process? 1. Business planning The correct answer is option 1. 2. Opportunity identification 3. The feasibility study 4. Resource determinationQUESTION 159 Peter intends opening a cellphone repair business in his rural community. He is currently busy collecting information from the villagers that will help him establish whether the idea will work or not. This information includes how many people in the area own cellphones and how often they require repair services for their cellphones. What is the business term for the activity Peter is currently undertaking? 1. Business study 2. Feasibility study The correct answer is option 2. 3. Business planning 4. Viability study QUESTION 160 Which of the following considerations are important in choosing a legal form for a proposed business? a) The degree of direct control and authority which the proprietors must have over the activities and assets of the business b) The ratio of liquidity which the business must maintain when in operation c) The possibilities of acquiring capital for the business upon establishment and for later expansion d) The possibility of transferring ownership in the business e) The legal requirements concerning the establishment and dissolution of the business 1. a d 2. b e 3. a b d 4. a c d e The correct answer is option 4 (a c d e). 5. a b c d e QUESTION 161 Match the legal form of a business in the first column with the corresponding characteristic in the second column. Form of ownership Characteristica Sole proprietorship (i) Created by the registration of a founding statement b Close corporation (ii) Owner personally liable for the debts of the business c Private company (iii) Must have at least one director 1. a (i) b (ii) c (iii) 2. a (ii) b (i) c (iii) 3. a (ii) b (i) c (iii) The correct answer is option 3. 4. a (iii) b (ii) c (i) QUESTION 162 Which two of the following represent differences between a company and a close corporation? a) Tax liability b) Legal requirements c) Legal personality d) Division between control and ownership 1. a c 2. a d 3. b c 4. c d 5. b d The correct answer is option 5 (b d). QUESTION 163 A business plan has a number of components. Which one of the following represents the most important components of the business plan? 1. Executive summary, general description of the venture, advertising plan, human resource plan, operating plan, location strategy 2. Executive summary, general description of the venture, products and services plan, management plan, operating plan, marketing plan, financial plan. The correct answer is option 2.3. Executive summary, general description of the business, production plan, financial strategy, advertising plan, description of the capital requirements of the venture 4. Executive summary, ownership information, products and services plan, human resource plan, production plan, operating plan, financial strategy QUESTION 164 You are a business analyst for a large consulting firm in South Africa. A client has requested you to provide them with a brief report on the main factors that they need to consider in their market environment. Which one of the following options would best describe the possible content of your report? 1. An analysis of the prevailing interest rates, exchange rates, trade deficit and balance of payments account situation in South Africa and how these relate to the client’s business 2. An analysis of the latest technological innovations in the international environment as well as a consideration of the latest legislative and political developments in South Africa and possible implications for the business 3. An analysis of developments in the social structure in South Africa, focusing on aspects such as urbanisation, HIV/AIDS, education levels, consumerism and the changing role of women in South Africa 4. An analysis of the business’s competitors, suppliers and intermediaries, as well as a brief demographic profile of the business’s customers The correct answer is option 4. QUESTION 165 In 2004 the former Minister of Education, Kader Asmal, initiated the transformation and reconstruction of the higher education system in South Africa. As a result of this reconfiguration Unisa incorporated Vudec and merged with Technikon South Africa (TSA). The resulting merger was brought about by an influence in Unisa‟s _____________environment, over which the management of Unisa had _______________control. 1. macro; no The correct answer is option 1. 2. market; indirect3. micro; direct 4. micro; indirect QUESTION 166 As a result of the merger between the three institutions, the management of the new Unisa had to create a new vision and mission for the institution. The vision and mission of a business form part of an organisation‟s _________ 1. Task 2. Market 3. Micro The correct answer is option 3. 4. Macro QUESTION 167 For the management of a business to stay in touch with the changes in the environment, it needs to regularly scan the environment. The scope of environmental scanning differs from business to business. Which of the following are determinants of the scope of environmental scanning? a) The nature of the environment b) The basic relationship between the business and its environment c) The size of the industry in which the business operates d) The source and extent of change e) The rate of change in the environment 1. ab 2. bc 3. abd The correct answer is option 3 (a b d). 4. abce 5. abcde QUESTION 1 Which of the following statements are correct? a) Profit is the driving force behind entrepreneurs and their businesses in a free market. b) Individuals can own land, factories and equipment under the command economy. c) In the socialistic economy the state can stabilise economic fluctuations.d) Within the free-market economy, the economic environment is unstable. 1. a b c 2. b c d 3. a c d The correct answer is option 3 (a c d). 4. a b d QUESTION 2 Which one of the following statements regarding socialism is true? 1. Farmers, factory owners, industrialists and individuals are free to do what they want with their assets. 2. The state owns and controls the community’s resources 3. The state owns and controls principle industries such as transportation, health services and energy the correct answer is option 3. 4. There is minimum state interference in markets. QUESTION 3 The primary task of business management is to ______________. 1. provide solutions for the management problems experienced in business enterprises 2. study the economic needs that have to be satisfied in the community 3. examine the factors in the macro environment which influence the activities in the micro environment 4. determine how an enterprise can achieve the highest possible output with the least possible input The correct answer is option 4. QUESTION 4 Which of the following statements on the state and economic systems are correct? a) State intervention to solve an economic problem in a market economy indicates a move towards a command or centrally controlled economy b) Government intervention in the economic system aims at encouraging economic growth and stability c) Control of strategic organisations cannot be left to profit-seeking entrepreneurs d) An expanding entrepreneurial role by the state eventually leads to a democracy 1. a c2. b c The correct answer is option 2 (b c). 3. a b d 4. a b c d QUESTION 5 A business‟s effort to provide the greatest possible need satisfaction with limited available resources is known as ___________________. 1. need satisfaction 2. productivity 3. rate of return on total capital 4. the economic principle The correct answer is option 4. Read the following brief case study and answer Questions 6 and 7 that follow. Nathan and his wife love cats. So much so that they have rescued and housed seven cats in their neighbourhood. Cats have a wandering nature which comes to the fore once owners go on holiday. When owners are away, cats start to wander the streets of Nathan‟s neighbourhood and might become startled and lost. Nathan realised that looking after cats might be a wonderful business opportunity. He considered opening a Cat hotel. He spoke to a number of cat owners in his neighbourhood and found that they would consider leaving their cats in a facility where they would be looked after and nurtured during the holiday periods, setting the owners‟ minds at ease on the safety of their cats. Nathan had to follow the entrepreneurial process in order to reach the implementation and launch of his idea. QUESTION 6 Put the following steps of the entrepreneurial process in order for Nathan‟s Cat hotel. a) Nathan had to assess the opportunity of the Cat hotel and determine whether it was a feasible idea. b) Nathan had to compile a business plan in order to obtain finance from the bank. c) Nathan had to launch the Cat hotel and manage the new business. d) Nathan had to clarify whether he and his wife have all the abilities and skills it takes to start the Cat hotel. e) Beside capital, Nathan had to determine whether they have time, energy and other resources in order to launch the Cat hotel.1. a b c d e 2. b c d e a 3. e c d b a 4. d e a b c The correct answer is option 4. 5. c b d a e QUESTION 7 If Nathan were to register the Cat hotel as a Close Corporation (CC) which of the following characteristics would be true? a) Nathan and his wife are personally liable for the debts incurred by the Cat hotel. b) The Cat hotel will have certain fundamental rights as set out in the country‟s Constitution. c) The Cat hotel is seen by SARS (the South African Revenue Service) as a separate taxpayer. d) Julia (Nathan‟s wife) can transfer her interest in the Cat hotel to their daughter Jennifer. e) The main objective of the Cat hotel is set out in a memorandum of association. 1. a b c 2. b d e 3. a c e 4. b c d The correct answer is option 4. 5. c d e QUESTION 8 Which of the following people are not entrepreneurs? a) Joan and Sam buy old books which they sell at their flea market stall. b) Maggie turns part of her home into a day-care centre. c) Jack resigns from his job as a teacher to manage his uncle‟s restaurant. d) Mkgosi sells snacks at a soccer match for SAFA. He gets paid R20 an hour. 1. a b 2. b c 3. c d The correct answer is option 3 (c d). 4. a dQUESTION 9 Which of the following considerations are important in choosing a legal form for a proposed business? a) The degree of direct control and authority which the proprietors must have over the activities and assets of the business b) The ratio of liquidity which the business must maintain when in operation c) The possibilities of acquiring capital for the business upon establishment and for later expansion d) The possibility for the transfer of ownership in the business e) The legal requirements concerning the establishment and dissolution of the business 1. a d 2. b e 3. a b d 4. a c d e The correct answer is option 4 (a c d e). 5. a b c d e QUESTION 10 Peter intends opening a cellphone repair business in his rural community. He is currently busy collecting information from the villagers that will help him establish whether the idea will work or not. This information includes how many people in the area own cellphones and how often they require repair services for their cellphones. What is the business term for the activity Peter is currently undertaking? 1. Business study 2. Feasibility study The correct answer is option 2. 3. Business planning 4. Viability study QUESTION 11 The bank was impressed with Peter‟s application for finance and business plan, however they suggested that he first register his business as a private company. In registering his company in South Africa Peter will have to adhere to ___________ legal prescriptions and will incur ___________ costs in the process. 1. many; minimal2. few; minimal 3. many; considerable The correct answer is option 3. 4. few; considerable QUESTION 12 Match the legal form of a business in the first column with the corresponding characteristic in the second column. Form of ownership Characteristic a. Sole proprietorship (i) Created by the registration of a founding statement b. Close corporation (ii) Owner personally liable for the debts of the business c. Private company (iii) Must have at least one director 1. a (i) b (ii) c (iii) 2. a (ii) b (i) c (iii) The correct answer is option 2. 3. a (iii) b (i) c (ii) 4. a (iii) b (ii) c (i) QUESTION 13 Mr Samuel owns JP Clothing Manufacturers. In 2009 he decided to sell 20 000 shares of his business to 30 of his employees. Mr Samuel assures his employees that they are only liable for the amount which they have invested in his business, he also informed them that the business will now be known as JP and Associates Clothing (PTY) Ltd. The new form of ownership at JP Clothing is a ___________________. 1. Partnership 2. close corporation 3. private company 4. public company The correct answer is option 4. QUESTION 14 According to the National Small Business Amendment Act 26 of 2003, which of the following are characteristics of an SME? a) Must be listed on the Johannesburg Securities Exchange (JSE) b) Has fewer than 200 employees c) Has a maximum annual turnover of R100 milliond) Have capital assets of less than R10 million 1. b c 2. b d The correct answer is option 2 (b d). 3. b c d 4. a b c d Read the brief case study below and answer questions 15 – 19 that follow. STRIKE LOOMS AT SASOL A strike in the industrial chemical sectors may be unavoidable, trade union Solidarity warned on Thursday. Solidarity decided not to accept the sector's final wage offer of 11% plus an additional 1% increase in January 2009. The trade union, which contends that only an increase of 12% will be accepted, has already been issued a strike certificate allowing its members to go on strike within 48 hours of issuing notice. "Employees cannot survive on the current offer," said Solidarity spokesperson for the chemical industry Marius Croucamp. "Inflation, the increase in municipal rates and the new property tax regulation place enormous pressure on employees' budgets and the only solution is a more favourable wage increase," Croucamp said. The trade union said Sasol, the largest employer in this sector, was benefiting from record Brent crude oil prices as well as the weak rand/dollar exchange rate. "It is expected that Sasol will make a profit of approximately R25bn for the year 2007/08. This remarkable profit indicates that a wage increase of 12% definitely is within their financial capabilities," pointed out Croucamp. At the same time as Sasol is making unprecedented profits by producing oil from coal, the world has seen an increase in the production of cleaner and more sustainable energy in the form of „biofuels‟. Biofuels are created either through the production of ethanol from plant sources such as sugar cane and maize or the production of biodiesel from oil producing plants sources such as soya beans and algae. And it has not taken long for South African companies to get onboard in terms of biofuel production. In fact the Koega Industrial Development Zone (IDZ) in the Eastern Cape is so serious about getting its biofuel plant off the ground that it has found an investor that is already hard at work buildin g a R1.5billion soya bean processing plant.QUESTION 15 The high inflation rate mentioned by Mr Croucamp is a variable in Sasol‟s __________________ Which forms part of the _____________ environment over Which Sasol management has ___________ control? 1. social; macro; indirect 2. economic; market; direct 3. social; market; no 4. economic; macro; no The correct answer is option 4. QUESTION 16 The high inflation rate and increase petrol prices have a direct impact on the purchasing power of consumers. A consumer‟s purchasing power is a variable in Sasol‟s _________________ environment and is represented by the consumer‟s _______________ income. 1. social; total 2. economic; total 3. market; disposable The correct answer is option 3. 4. economic; disposable QUESTION 17 Sasol is the only company in the world with the technology to produce oil, and hence petrol, from coal. In order to achieve this Sasol needs enormous quantities of coal daily. This coal is supplied to Sasol from various coal mines in the Mpumalanga region. The supply of coal to Sasol takes place in the __________ market setting. 1. International 2. Consumer 3. Governmental 4. Industrial The correct answer is option 4. QUESTION 18 Sasol‟s willingness to engage with Solidarity is indicative of its current human resource policy. Sasol‟s human resource policy forms part of its ________ environment. 1. Market2. micro- The correct answer is option 2. 3. macro-4. Social QUESTION 19 In terms of the five forces of competition what does the new soya bean processing plant in the Koega IDZ represent to Sasol? 1. The threat of new entrants 2. Rivalry amongst existing competitors 3. The bargaining power of suppliers 4. The bargaining power of buyers 5. The threat of substitute products The correct answer is option 5. QUESTION 20 Which of the following statements are correct? Environmental scanning is necessary ________________. a) to keep abreast of change b) to determine which factors pose threats to existing goals c) to determine which factors represent opportunities to promote current goals d) because businesses that scan the environment systematically are guaranteed of success 1. a b c The correct answer is option 1 (a b c). 2. a b d 3. a c d 4. a b c d QUESTION 1 Identify the single most dominant cause of business failure. 1. Managerial incompetence The correct answer is statement 1. 2. Lack of leadership 3. Excessive competition 4. Lack of managerial experienceQUESTION 2 Which of the following are key skills required for sound management? a) Conceptual skills b) Intellectual skills c) Interpersonal skills d) Technical skills 1. a b d 2. a b 3. a c d The correct answer is option 3 (a c d). 4. b c d 5. a b c d QUESTION 3 The theory or approach to management which suggests that the application of management principles is dependent on the situation confronting the manager at a particular point in time is known as ___________________. 1. theory Z 2. the systems approach 3. the contingency approach The correct answer is option 3. 4. the excellence movement QUESTION 4 Match the school of management thought listed in Column A with the appropriate description in Column B School of Management Thought Description a Scientific school (i) Found that increased productivity is not always attributable to well-designed tasks and sufficiently high wages b Human relations movement (ii) Identified the most important functions in a business so that universal management principles could be developed for each function c Management process school (iii) Productivity could be increasedthrough the application of observation, job analysis, the redesign of jobs and financial incentives 1. a (i) b (ii) c (iii) 2. a (ii) b (i) c (iii) 3. a (i) b (iii) c (ii) 4. a (iii) b (i) c (ii) The correct answer is option 4. QUESTION 5 The theories of management can be classified into two main schools of thought, namely the classical approaches and the contemporary approaches. Which of the following form part of the contemporary approaches to management? a) Contingency theory b) Re-engineering c) Total Quality Management (TQM) d) Strategic Management 1. a c 2. b d 3. a b c 4. b c d The correct answer is option 4 (b c d). QUESTION 6 Match the statement in Column A with the correct item in column B Column A Column B a The process of developing a broad plan for how a business is going to compete in the industry i Strategic planning b The managers that are between the top and the lower-level managers c The process of setting goals, ii Operational planningobjectives, and deciding on methods for achieving them iii Middle managers d The managers who don’t have managers for subordinates iv Lower level (first line managers) e The process of formulating shorter term plans for implementing an organisations‟ overall strategic plan v Planning 1. a (i); b (ii); c (iii); d (iv); e (v) 2. a (i); b (iii); c (v); d (iv); e (ii) The correct answer is option 2. 3. a (ii); b (iii); c (i); d (iv); e (v) 4. a (v); b (iv); c (i); d (iii); e (ii) 5. a (v); b (ii); c (i); d (iv); e (iii) QUESTION 7 Thembi is a member of the board of directors at Grootgeluk Coal Mine. As such she is responsible for strategic and long-term planning for the mine. As a member of the board of directors of the mine, Thembi is a member of ________________ management. 1. Top The correct answer is option 1. 2. Middle 3. Lower 4. Tactical QUESTION 8 As a director Thembi will primarily make use of ___________ skills in carrying out her duties. 1. Conceptual The correct answer is option 1. 2. Intellectual 3. Interpersonal 4. TechnicalQUESTION 9 Which of the following represent the decision-making role performed by a manager? a) The manager as spokesperson b) The manager as an analyser c) The manager as an entrepreneur d) The manager as a troubleshooter 1. a b 2. c d The correct answer is option 2 (c d). 3. a c d 4. b c d 5. a b c d QUESTION 10 Which of the following statements are correct? a) Planning includes deciding how to achieve a particular goal b) Organising involves telling workers how to perform a particular task c) Leading includes the motivation of staff d) Controlling enables management to detect deviations 1. a c 2. b d 3. a c d The correct answer is option 3 (a c d). 4. b c d 5. a b c d QUESTION 11 Match the type of objective in the first column with the correct example of the objective in the second column for a company such as Eskom. Objective Example a The mission of the organisation (i) To limit load shedding cycles over the public holiday period in May b Functional objectives (ii) To decrease electricity demand for the entire country by 10% over the next two yearsc Operational objectives (iii) To provide an economical electricity powerbase for sustainable growth and development 1. a (i) b (ii) c (iii) 2. a (i) b (iii) c (ii) 3. a (iii) b (ii) c (i) The correct answer is option 3. 4. a (iii) b (i) c (ii) QUESTION 12 Which two of the following are meaningful annual objectives for a sales manager of a large business? a) To increase sales by 15% by December 2008 b) To limit bad debts to a minimum c) To maintain a gross profit margin of 38% per annum d) To motivate sales representatives 1. a b 2. a c The correct answer is option 2 (a c). 3. b d 4. c d QUESTION 13 Which of the following are characteristics of strategic planning? a) It has a time-frame of three to ten years b) It is focused on an organisation as a whole c) It is concerned with fine details and specifics d) It is future-orientated 1. a b c 2. a b d The correct answer is option 2 (a b d). 3. a c d 4. b c d 5. a b c dQUESTION 14 In expanding its share of the retail and grocery market in South Africa the Shoprite group has embarked on a major campaign to acquire grocery retailers similar to itself. This has led to a marked increase in market share for the group. What kind of long-term growth strategy has been adopted by Shoprite? 1. Market development 2. Concentration growth 3. Horizontal integration The correct answer is option 3. 4. Diversification 5. Joint venture QUESTION 15 In response to Kulula.com‟s new product offering, the marketing manager at SAA, Phindiwe, plans to increase her expenditure on advertising by 20% over the next three years. What she does not know however is that the Chief Financial Officer at SAA is planning to cut the marketing department‟s budget in the short term. Phindiwe‟s goal does not meet the requirements of a good goal as it lacks ________________. 1. Measurability 2. Acceptability 3. horizontal consistency The correct answer is option 3. 4. vertical consistency Read the following brief case study and answer the question 16, 17 and 18 that follow. Hallmark used to design cards (birthday cards, greeting cards, Christmas cards) in a step-by-step process – artists and writers rarely spoke to one another, and the employees who created the lettering worked in another building. Because of delays and rework, it sometimes took the company more than two years to create and produce a new greeting card. Now Hallmark puts teams of employees from every department in the same room and empowers each team to take charge of specific cards. Artists, lithographers, writers, designers and photographers share ideas, critique their own work and make their own decisions without waiting for management permission. Although the decision making is decentralised in terms ofthe team approach being used, management thought it wise to appoint team leaders on a three month rotational basis. The cycle time for getting new cards to the market has been cut in half. For employees the change has brought more responsibility and greater job satisfaction. The change in structure and organising has also brought about new ideas and thinking in the company. Hallmark recently also introduced its new line of postcards which are doing extremely well in the market. QUESTION 16 Hallmark‟s decision to move into the business of postcards is an example of what kind of corporate growth strategy? 1. Concentration growth 2. Market development 3. Product development The correct answer is option 3. 4. Integration QUESTION 17 How was Hallmark departmentalised before the company set about changing the way the business is organised? 1. According to customer 2. According to function The correct answer is option 2. 3. According to location 4. According to product QUESTION 18 How is Hallmark departmentalised now? 1. According to customer 2. According to function 3. According to location 4. According to product The correct answer is option 4. QUESTION 19 A tall organisation structure will probably lead to _________________. 1. managers being over worked 2. a greater span of management3. less subordinates for each manager The correct answer is option 3. 4. less intensive supervision of subordinates QUESTION 20 The basic model of motivation takes place in a series of steps. These steps are listed below: a) Satisfaction b) internal needs, motives or drives c) reinforcement d) purpose or goals e) behaviour or action Which one of the following is the correct order of the steps in the motivation process? 1. a b c d e 2. d b e c a 3. b e d a c The correct answer is option 3 (b e d a c). 4. b d c e a 5. d b e c a QUESTION 21 When an employee is appointed to a certain managerial post, he/she will have been given _______________ power. 1. Referent 2. Personal 3. Coercive 4. Expert 5. Legitimate The correct answer is option 5. QUESTION 22 The University of Iowa researchers identified three basic leadership styles. Which one of the following is not a leadership style identified by the University of Iowa studies? 1. Autocratic leadership 2. Democratic leadership3. Participative leadership The correct answer is option 3. 4. Laissez-faire leadership QUESTION 23 If managers understand what motivates the behaviour of employees, they can influence the employee‟s work performance. Motivation is however not the only factor influencing work performance. What other two factors influence work performance? a) Ability b) work environment c) resources d) remuneration 1. a b 2. a c The correct answer is option 2 (a c). 3. b c 4. b d QUESTION 24 In terms of Maslow‟s Hierarchy of Needs challenging assignments and the opportunity to participate in decision making will go a long way towards satisfying ______________ needs of the employees? 1. Basic 2. Security 3. Social 4. Esteem 5. self-actualisation The correct answer is option 5. QUESTION 25 Managers in the organisation must exercise control over four key areas, namely physical, financial, information and human resources. Which of the following are control systems used during the control of inventory as a physical resource? a) Total quality management (TQM) b) Economic ordering quantity (EOQ)c) Just in Time (JIT) d) An operational budget e) Equipment control 1. a c 2. b c The correct answer is option 2 (b c). 3. b c d 4. a c d e 5. a b c e QUESTION 26 Which of the following factors make control in the present day business important? a) The rapidity of change in the business environment b) The increasing size of the organisation c) The delegation of tasks to subordinates d) The possibility of managers and subordinates making poor decisions and committing errors e) The organising of subordinates 1. a b c d The correct answer is option 1 (a b c d). 2. b d 3. a c d e 4. c d QUESTION 27 Which one of the following statements about corporate citizenship is incorrect? 1. Corporate citizenship suggests that companies will benefit if they contribute to the welfare of people in the community 2. All aspects of corporate citizenship have an economic benefit for companies The correct answer is option 2. 3. The business case for corporate citizenship refers to the argument that being a good corporate citizen can contribute to a company’s profitability 4. Good corporate citizenship practices can create market opportunities and increase competitiveness of companies that use innovation to develop Products or services based on sustainability criteriaQUESTION 28 Match the term in the Column A to the description in Column B. Column A Term Column B Description a Sustainable development (i) Refers to the increasing expectations for companies to publicly report not just on financial matters, but also on social and environmental issues b Corporate social investment (ii) Refers to how a company’s objectives and strategy and decision-making structures are developed, implemented and monitored c Sustainability reporting (iii) Refers to the need to improve the lives of poor people and to protect the natural environment d Corporate governance (iv) Refers to a company’s philanthropic initiatives, such as sponsorships for students 1. a (iii) b (iv) c (i) d (ii) The correct answer is option 1. 2. a (iv) b (iii) c (ii) d (i) 3. a (i) b (iii) c (ii) d (iv) 4. a (ii) b (i) c (iv) d (iii) QUESTION 29 In an attempt to assist the victims of the 2008 xenophobic attacks in South Africa, UNISA held a charity golf day to raise funds for foreign students who lost their study material or books in the xenophobic attacks. These actions are indicative of Unisa fulfilling its _________________ imperatives. 1. triple bottom line 2. sustainable development 3. corporate social responsibility The correct answer is option 3. 4. total quality managementSTUDY UNIT 1: THE BUSINESS WORLD AND BUSINESS MANAGEMENT QUESTION 1 Sasol was established in 1950 to make oil from coal. This idea per se was totally out of the box and attracted worldwide attention. The strategic reason was simple: national self-sufficiency in fuel for a country without oil. Which one of the following statements regarding the role of business in society is correct? 1 A business such as Sasol produces products or services for its own use. 2 At the heart of all business activity are banks that provide funding for businesses. 3 A business such as Sasol produces products and services in exchange for money. 4 A business such as Sasol produces predominantly intangible products. QUESTION 2 In order for Sasol to be sustainable, the core of sustainability for Sasol would involve ______________________. 1 its ability to survive and prosper over long periods of time 2 Sasol striving to ensure excessive short-term profits 3 Sasol striving to make a long-term profit 4 Sasol constantly searching for new ideas, new products and new technologies QUESTION 3 The South African Broadcasting Corporation (SABC) is seen as a/an ________________. 1 private enterprise 2 public corporation 3 non-profit seeking organisation 4 entrepreneurial enterprise QUESTION 4 In a ___________________ economy, individuals will need to take the tastes, preferences and demands of consumers into account when deciding about production and marketing; if they want to make a profit. 1 market 2 command3 socialist 4 centrally directed QUESTION 5 The number of cell phones in South Africa surpasses the number of people living in the country. Cell phone use in South Africa has increased enormously during the last decade, from 17% of adults in 2000 to 76% in 2010. Besides calling people, South Africans use their cell phones to send text messages, access social media sites, chat with a group of friends on instant messaging services, and browse the internet. The need for constant communication with friends is a ______________ need according to Maslow’s hierarchy of needs. 1 self-actualisation 2 esteem 3 physiological 4 social STUDY UNIT 2: ENTREPRENEURSHIP QUESTION 6 Which one of the following statements about being an entrepreneur is incorrect? 1 The entrepreneur decides what, how, by whom, and for whom products and services should be produced. 2 Entrepreneurs assume relatively little risk for the success or failure of the business. 3 An entrepreneur is someone who starts a business with the intention of making a profit. 4 An entrepreneur assumes the risk of losing all of his/her resources if the venture fails.QUESTION 7 Herman Heunis launched MXit in January 2005 as a subscription service. In which step of the entrepreneurial process would he have needed to assess whether the opportunity can be turned into a successful venture? 1 When Herman assessed whether he had the resources or access to resources. 2 When Herman conducted a feasibility study. 3 When Herman compiled his business plan. 4 When Herman launched and managed the new business. QUESTION 8 In order for MXit to be successful, Herman Heunis needed to have the ability to consider the business as a whole and to understand how it fits within its marketplace. Which skill is referred to here? 1 Strategy skills 2 Planning skills 3 Marketing skills 4 Project management skills QUESTION 9 One of the reasons why entrepreneurs do what they do is that they have an internal locus of control. Which one of the following relates to the internal locus of control trait of the entrepreneur? 1 Entrepreneurs have a strong need to be personally responsible for solving problems. 2 There is a strong need to be in charge of his/her own destiny. 3 Entrepreneurs want to create new things. 4 Entrepreneurs often feel that it is necessary to take risks. QUESTION 10 Which one of the following is an advantage of buying an existing business? 1 Employees are inherited. 2 The image will be difficult to change. 3 There will be an established customer base. 4 The inventory may be obsoleteSTUDY UNIT 3: ESTABLISHING A BUSINESS It is recommended that you read business case number 2: “Establishing a business: Kiph” (in the recommended book “Business Cases”) before attempting to answer questions 11 and 12. It is not compulsory that you do so, as the answers to the assignment questions can be found in ITBM. QUESTION 11 Regarding the New Companies Act 71 of 2008, which one of the following changes should entrepreneurs such as Wes, Dane and Nate from Kiph be aware of? 1 The powers and responsibilities of directors will be increased. 2 The power and responsibilities of directors will be decreased. 3 The rights of shareholders to hold directors accountable and to remove directors have been limited. 4 The burden of the office of director will be decreased as duties and liabilities of directors have been limited. QUESTION 12 Which one of the following is an example of an internal stakeholder within a company such as Kiph? 1 Customers 2 Investors 3 Employees 4 Banks It is recommended that you read business case number 2: “Establishing a business: Kiph” (in the recommended book “Business Cases”) before attempting to answer questions 11 and 12. It is not compulsory that you do so, as the answers to the assignment questions can be found in ITBM. QUESTION 13 When considering a form of enterprise, what can impose a considerable administrative and financial burden on the enterprise?1 Compliance with legal formalities and regulations 2 The potential for capital acquisition 3 Taxation and the rates for income tax 4 An enterprise having total management autonomy QUESTION 14 Which one of the following statements is NOT true for a business with a legal personality? 1 The business is dependent on its members. 2 The business is recognised as a legal subject alongside natural persons or individuals. 3 The business has its own rights, assets and obligations. 4 The existence of the business is not affected by changes in its membership. QUESTION 15 Which one of the following statements is true for a partnership? 1 The partnership has a separate estate from its partners and their personal assets. 2 The continued existence of the partnership is not dependent on the legal capacity of the partners. 3 The partnership is regarded as a separate taxpayer. 4 The partners are jointly and severally liable for all claims made against the partnership. STUDY UNIT 4: THE BUSINESS ENVIRONMENT QUESTION 16 Andrew’s Copper business manufactures copper wire and sells it to Elec Incorporated, a local electrical company, who uses the copper in the production of their electrical products such as televisions and radios. In which market does Andrew’s Copper operate? 1 Government market 2 International market 3 Industrial market 4 Services marketQUESTION 17 You are a business management lecturer and you are explaining to your students that the micro-environment ______________influences the business and consists of variables such as the ______________. 1 directly; consumers 2 indirectly; technological advancements 3 directly; resources within the business 4 indirectly; mission and objectives of the business QUESTION 18 The most elementary form of environmental scanning is __________________. 1 to add primary information 2 to update relevant secondary information 3 to establish a scanning unit 4 to scan the business tasks QUESTION 19 If an organisation such as Kulula.com has a scanning unit, it would make use of _____________________. 1 scanning at the more advanced level 2 scanning at intermediate level 3 scanning at an external level 4 scanning in the most elementary form QUESTION 20 In the _____________ environment, management at Kulula.com would identify, assess, and takes advantage of opportunities in the market, and develops and adapts its strategies to meet competition. 1 micro-2 task 3 macro-4 primaryCORPORATE SOCIAL RESPONSIBILITY It is recommended that you read business case number 4: “Corporate social responsibility: South African Breweries” (in the recommended book “Business Cases”) before attempting to answer questions 1 and 2. It is not compulsory that you do so, as the answers to the assignment questions can be found in ITBM. QUESTION 1 If a company such as SAB complies with the spirit of the law, then it means that ___________________. 1 it is doing the bare minimum to avoid sanctions 2 the company is doing what can be reasonably expected to further the objectives of the legislation 3 the company reduces cost by avoiding fines and legal costs 4 the company improves access to markets, for example, government procurement QUESTION 2 SAB wants to establish a corporate policy by using a reactive approach which allows stakeholders to determine what they want from the company and what they consider to be the issues and culture of the company. Which approach would they be following? 1 A value-based system 2 A stakeholder-engagement process 3 A combination of both a value-based system and a stakeholder-engagement process 4 The corporate governance approach QUESTION 3 Corporate governance is essentially about __________________. 1 effective leadership 2 the company’s core business activities 3 the creation of employment and training opportunities 4 the company’s contribution through its engagement in public policyQUESTION 4 – This has an error to the marking – question was automatic credit Corporate __________ recognises corporations as legal persons with certain rights and responsibilities in the same way that individual citizens are members of a community. 1 citizenship 2 governance 3 philanthropy 4 social responsibility STUDY UNIT 6: INTRODUCTION TO GENERAL MANAGEMENT QUESTION 5 You are a lecturer at Unisa and you get promoted to a line management position where you are responsible for guiding your staff in their own subsections and for keeping close control over their activities. You are therefore part of __________ management. 1 top 2 middle 3 functional 4 low It is recommended that you read business case number 5: “General Management: Edcon” (in the recommended book “Business Cases”) before attempting to answer questions 6 and 7. It is not compulsory that you do so, as the answers to the assignment questions can be found in ITBM The executive management team at Edcon is mandated to assist in reviewing the operations of and performance of Edcon Holdings (Proprietary) Limited and its subsidiaries, for developing strategy and policy proposals which are considered by the board of directors. QUESTION 6 Jurgen Schreiber, a German national, is Edcon’s chief executive officer (CEO). At his level in the organisation, ____________ skills are the most important.1 technical 2 interpersonal 3 conceptual 4 general QUESTION 7 Sarah, the human resource (HR) manager, is coming to grips with the fact that she cannot manage the separate parts of the HR function in Edcon independently, but that she should rather manage them as an integrated whole. This is known as the ____________________ to/of management. 1 systems approach 2 contingency approach 3 scientific school 4 quantitative school QUESTION 8 Tumelo is a line manager at Transnet and is responsible for training and motivating newly appointed employees to achieve their goals. This is an example of Tumelo’s ____________ role as a manager. 1 monitoring 2 leading 3 representative 4 negotiating STUDY UNIT 7: PLANNING QUESTION 9 _________________ is the process by which management ensures that the actual organisational activities are compatible with the predetermined goals and planned activities. 1 Cohesion 2 Organising 3 Coordination4 Control It is recommended that you read business case number 6: “Planning: Tsogo Sun” (in the recommended book “Business Cases”) before attempting to answer questions 10 and 11. It is not compulsory that you do so, as the answers to the assignment questions can be found in ITBM. QUESTION 10 Marcel von Aulock, CEO of Tsogo Sun, attributes their success to their diverse product offering and their strategythat they are continuously developing and refining. As CEO, Marcel von Aulock needs to ensure that the goals of all the different parts of the organisation are reconcilable with each other as well as with the primary goals of the organisation as a whole. Which benefit of planning is referred to here? 1 Planning promotes coordination 2 Planning ensures cohesion 3 Planning facilitates control 4 Planning provides direction QUESTION 11 One of Tsogo Sun’s growth strategies included the new addition to the popular economy StayEasy brand with the opening of the new hotel, StayEasy Lusaka in Zambia. This is an example of a ____________ strategy. 1 Product development 2 Market development 3 Concentration growth 4 Horizontal integration QUESTION 12 Goals must relate to an organisation’s mission and strategic goals that would imply that goals are ___________. 1 time bound 2 specific 3 measurable 4 relevantQUESTION 13 The planning process consists of several steps. Which one of the following will be done first in the planning process? 1 Implement the plan 2 Establish goals 3 Select the plan 4 Evaluate alternative plans STUDY UNIT 8: ORGANISING It is recommended that you read business case number 7: “Organising: The Nike Matrix” (in the recommended book “Business Cases”) before attempting to answer questions 14 and 15. It is not compulsory that you do so, as the answers to the assignment questions can be found in ITBM. QUESTION 14 Nike has adopted a relatively flat span of management which means __________________. 1 there are few subordinates per managers 2 there are many subordinates per manager 3 that managers are being underutilised 4 it is easy to coordinate and control the task of a large number of subordinates QUESTION 15 Nike made the decision to move to a matrix-like organisational structure. Which one of the following can be a disadvantage that Nike might experience with the matrixlike structure? 1 The unity of command can be affected, which will result in a serious risk of soured relations between the project and functional executives. 2 Despite sophisticated specialisation, coordination remains a problem. 3 Certain regions may be successful, but the rest of the business will not reap the benefits of a good organisation. 4 This organisational structure is not suited to ad hoc and complex projects requiring specialised skills.QUESTION 16 Job __________ involves increasing the number of tasks that a worker has to perform. 1 specialisation 2 enrichment 3 enlargement 4 rotation QUESTION 17 The ________________ can be defined as the beliefs and values shared by the people in the business. 1 organisational structure 2 informal organisation 3 organisational culture 4 business environment QUESTION 18 Matt works for a company called FastForward Sports. FastForward Sports manufactures a variety of sportinggoods including apparel, shoes and equipment. Matt is the manager of the department responsible for running shoes, and almost all of his subordinates are experts on running shoes. This means that decisions are made quickly in his department and the team’s performance is easily measured. Which one of the following is the most logical departmentalisation structure for them to use? 1 Functional 2 Product 3 Location 4 Customer STUDY UNIT 9: LEADING It is recommended that you read business case number 8: “Leading and controlling: South African business leadership in action” (in the recommended book “Business Cases”) before attempting to answer questions 19 and 20. It is notcompulsory that you do so, as the answers to the assignment questions can be found in ITBM QUESTION 19 Sir Richard Branson believes that leaders should be able to praise employees for a job well done. This refers to the____________ power a leader possesses. 1 legitimate 2 reward 3 referent 4 expert QUESTION 20 Branson motivates people and pushes them to the limit. He believes that every underdog must have his day. His employees, in turn, also raise him to higher levels of motivation. This is known as which type of leadership? 1 Charismatic 2 Visionary 3 Transactional 4 Transformational QUESTION 21 Match the term in column A with the correct description in column B Column A Column B (a) Competence (i) A manager’s reliability when it comes to telling the whole truth (b) Consistency (ii) A manager’s willingness to protect another person (c) Loyalty (iii) A manager’s reliability, predictability and good judgment in handling situations (d) Openness iv) A manager’s technical and interpersonal knowledge and skills 1 a(ii) b(i) c(iv) d(iii) 2 a(iv) b(iii) c(ii) d(i)3 a(iii) b(i) c(iv) d(ii) 4 a(i) b(iii) c(ii) d(iv) QUESTION 22 The premise the _________________________________ is based on, is that the work maturity of employees determines the best leadership style to be used. 1 situational leadership model 2 contingency approach to leadership 3 managerial grid 4 path-goal model QUESTION 23 A/an _______________ is a small number of employees with complementary competencies who work together on a project, are committed to a common purpose and are responsible for performing tasks that contribute to achieving an organisation's goal. 1 task group 2 interest group 3 work team 4 work group QUESTION 24 Motivation, ability (training, knowledge and skills) and the opportunity to perform (resources) are variables that determine _________________. 1 success 2 strategy 3 performance 4 effectivenessSTUDY UNIT 10: CONTROLLING THE MANAGEMENT PROCESS QUESTION 25 Sam has gathered all the relevant information and has compiled a report on the actual performance of his business. What would be the next step for Sam to take in the control process? 1 Establishing standards 2 Evaluating deviations 3 Rectifying deviations 4 Taking corrective actions QUESTION 26 A performance standard is ____________________. 1 a planned target against which the actual performance will be compared. 2 the actual performance that is achieved. 3 part of the mission statement that is compared against the actual performance. 4 a control standard that is compared to the planned target. It is recommended that you read business case number 8: “Leading and controlling: South African business leadership in action” (in the recommended book “Business Cases”) before attempting to answer questions 27 and 28. It is not compulsory that you do so, as the answers to the assignment questions can be found in ITBM During a presentation, Maria Ramos identified four key issues, two of which are related to controlling human resources and financial resources. The financial concerns included poor financial performance and controls. QUESTION 27 In which step of the control process would she have identified the poor financial performance? 1 Step 1: Setting standards 2 Step 2: Measuring actual performance 3 Step 3: Evaluating deviations (performance gaps) 4 Step 4: Rectifying deviationsQUESTION 28 If Transnet decides to implement an instrument that can be applied for labour turnover, absenteeism and the composition of the labour force, which human resource instrument would they make use of? 1 Performance measurement 2 Time projections of projects 3 Specific ratio analyses 4 Just-in-time (JIT) system QUESTION 29 To which characteristic of an effective control system does the following statement refer? “The system should be able to accommodate change. Timeous adjustments in objectives or plans should not be regarded as deviations but as revised objectives or plans.” 1 Integration 2 Flexibility 3 Timeliness 4 Accuracy QUESTION 30 Time projections of projects and sales volumes in units are examples of which type of budget? 1 Non-financial 2 Operational 3 Financial 4 Production STUDY UNIT 1: THE BUSINESS WORLD AND BUSINESS MANAGEMENT QUESTION 1 The primary task of business management is to ____________________. 1 provide solutions for the management problems experienced in business enterprises2 study the economic needs that have to be satisfied in the community 3 examine the factors in the macro-environment that influence the activities in the micro-environment 4 determine how an enterprise can achieve the highest possible output with the least possible input QUESTION 2 Deregulation within the airline industry was introduced in South Africa in 1991. Before deregulation, South African Airways (SAA) was the only service provider on the main domestic airline routes as well as the international airline routes. The first decade after deregulation resulted in a wave of low cost airline competitors such as Flitestar, Sun Air, Phoenix Air, Nationwide, 1Time and Velvet Sky entering the domestic market. There are several factors in the business world that apply pressure on a modern-day organisation such as SAA. Which one of these factors is depicted in the mini-case study above? 1 Environmental change 2 Consumerism 3 Profitability 4 Corporate social investment It is recommended that you read business case number 3: “The business environment: the airline industry” (in the recommended book “Business Cases”) before attempting to answer question 2 and 3. It is not compulsory that you do so, as the answers to the assignment questions can be found in ITBM. QUESTION 3 SAA functions within a free-market economy, which is characterised by which of the following attributes? a Private ownership of production factors b Free competition c Profit motive recognised d Limited right to strike in state enterprises 1 a b2 b d 3 a b c 4 a b c d QUESTION 4 The term ___________ is a concept that originated in media revelations of malpractice by businesses and the resultant insistence of society on restricting such malpractice through regulation. 1 consumerism 2 business ethics 3 transformation 4 social responsibility QUESTION 5 Marcus decides to invest in a new mining company that will mine diamonds in the Northern Cape. In order for his mine to be successful, he will require several resources. Match the resource in Column A with the correct description in Column B. Column A - Resource Column B – description a. Natural resources i. The land that Marcus will purchase needs to be diamond-rich. b. Human resources ii. He will need to appoint several managers to run the mine since the labour law states that each staff member is only allowed to work a certain amount of hours. c. Capital iii. Marcus has entered into a deal with one of Africa’s largest mining equipment suppliers that will lease equipment to him on a five-year basis. d. Entrepreneurship iv. Marcus will need to monitor the economic conditions of South Africa to ensure that his mine stays profitable v. Marcus, along with four other business men, will have to accept the risks involved in starting this mine 1 a(i); b(ii); c(iii); d(iv) 2 a(i); b(iv); c(iii); d(v) 3 a(iii); b(i); c(ii); d(iv) 4 a(i); b(ii); c(iii); d(v)STUDY UNIT 2: ENTREPRENEURSHIP QUESTION 6 SAB previously used their own large trucks to distribute the beer that the company brewed to customer outlets. However SAB decided to no longer use their own trucks, but use owner-drivers of trucks to distribute their beer. These drivers receive contracts from SAB to deliver beer to clients in demarcated areas. The above scenario is referred to as ______________. 1 franchising 2 outsourcing 3 insourcing 4 innovating QUESTION 7 When SABMiller first started in 1895 as Castle Breweries, they would have needed to consider what the future might offer, how this impacts on the business, and what needs to be done now to prepare for it. Which management skill does this refer to? 1 Strategy skills 2 Marketing skills 3 Planning skills 4 Project management QUESTION 8 Which one of the following can be considered an entrepreneurial activity? 1 Lucy starts her own cleaning business following a request from a local insurance firm to take over their cleaning. 2 Sam wants to learn professional photography and applies for a position at the local photography shop. 3 Kabelo is afraid of working at a high risk firm and asks for a demotion. 4 Caron is tired of being driven to perform at the hotel where she works and decides to run her mother’s guesthouse.QUESTION 9 An internal locus of control indicates ____________________________________. 1 that a person believes that the outcome of an event is primarily out of his/her control 2 a person’s need to be in charge of his/her own destiny 3 that a person is attracted to a job that challenges their skills and problem-solving abilities 4 a person’s ability to create something new or original It is recommended that you read business case number 11: “Marketing management: Heineken and SABMiller’s beer war” (in the recommended book “Business Cases”) before attempting to answer question 6 and 7. It is not compulsory that you do so, as the answers to the assignment questions can be found in ITBM. QUESTION 10 M&M Consulting is a recruitment company dedicated to finding the most talented applicants and then introducing them to their valuable clients. M&M Consulting employs 24 employees and has an annual turnover of R4.65 million. M&M Consulting can be classified as a __________________ business. 1 micro 2 very small 3 small 4 medium-sized STUDY UNIT 3: ESTABLISHING A BUSINESS It is recommended that you read business case number 5: “General Management: Edcon” (in the recommended book “Business Cases”) before attempting to answer questions 11 and 12. It is not compulsory that you do so, as the answers to the assignment questions can be found in ITBM.QUESTION 11 Legit is aimed at young fashionable women. It provides fashionable clothing to fashion-conscious women between the ages of 16 and 24 who work with a shoestring budget. In which section of Legit’s business plan would this description appear? 1 Financial plan 2 Management plan 3 Marketing plan 4 Operating plan QUESTION 12 Legit’s name and location will be included in the ____________________ of the business plan. 1 management plan 2 operating plan 3 general company description 4 executive summary QUESTION 13 The entrepreneur George B. Boedecker, Jr developed the shoe brand Crocs Inc. Crocs Inc. is an example of a___________________. 1 private company 2 state-owned company 3 public company 4 personal-liability company QUESTION 14 Kabelo is working at a large company that produces television shows for the local broadcaster. He is quite keen to start his own production company and has started the process to establish his own business. He will need to employ at least 50 employees to start his business and, due to the nature of the industry, he is expecting the company’s turnover to be more than R50 million. Which one of thefollowing would be the biggest consideration for Kabelo when choosing a form of enterprise for his new business? 1 Legal (juristic) personality 2 Limited liability 3 Control 4 Compliance QUESTION 15 Which one of the following statements is an advantage of a private business trust? 1 A business trust has unlimited access to capital. 2 There is very little potential for conflict between parties in a business trust. 3 It is a very rigid type of enterprise. 4 This type of enterprise is very easy to form. STUDY UNIT 4: THE BUSINESS ENVIRONMENT QUESTION 16 The changing aircraft technology influencing the commercial airline industry is a variable in the ___________ environment which is part of the ___________ environment. 1 economic/market 2 economic/macro 3 technological/market 4 technological/macro QUESTION 17 An airline’s reputation is an example of a/an ____________ of the business. 1 tangible resource 2 intangible resource 3 organisational capability 4 physical resource It is recommended that you read business case number 3: “The business environment: The airline industry” (in the recommended book “Business Cases”)before attempting to answer question 16 and 17. It is not compulsory that you do so, as the answers to the assignment questions can be found in ITBM. QUESTION 18 The current labour laws and the Employment Equity Act No. 55 of 1998 are examples of variables in the ___________ environment that _____________ have an influence on the business and the management of businesses. 1 institutional/governmental; directly 2 institutional/governmental; indirectly 3 social; directly 4 social; indirectly QUESTION 19 Airlines are starting to appoint more female pilots, something that was unheard of a mere decade ago. This refers to a change in the ___________ environment. 1 micro- 2 market 3 macro- 4 consumer QUESTION 20 “Consumers are given the assurance that their interest will receive attention from government and related parties.” To which right of the consumer does this statement refer? 1 The right to freedom 2 The right to be heard 3 The right to be informed 4 The right to safetySTUDY UNIT 5: CORPORATE SOCIAL RESPONSIBILITY QUESTION 1 Corporate governance is essentially about __________________. 1 effective leadership 2 the company’s core business activities 3 the creation of employment and training opportunities 4 the company’s contribution through its engagement in public policy It is recommended that you read business case number 4: “Corporate Social Responsibility: South African Breweries” (in the recommended book “Business Cases”) before attempting to answer question 3. It is not compulsory that you do so, as the answers to the assignment questions can be found in ITBM. QUESTION 2 If information is shared and the outcomes of the engagement process are integrated into business practice, this would be the __________________ step of the stakeholder engagement process. 1 preparation 2 planning 3 application 4 evaluation QUESTION 3 A company such as SAB has many stakeholders. The shareholders of SAB are usually viewed as _____________ stakeholders. 1 direct 2 indirect 3 primary 4 secondary QUESTION 4 Which one of the following statements regarding the King III report is correct?1 The King III report provides a broader definition of the responsibilities of corporations focusing only on the social aspects of corporate responsibility. 2 The King III report provides organisations with guidance on good corporate governance practices and applies to all entities regardless of manner and form. 3 The King III report provides organisations with guidance on good corporate governance practices and only applies to those entities listed on the Johannesburg Stock Exchange (JSE). 4 The King III report provides information on the number of sector-specific charters that have been adopted to promote socioeconomic transformation. QUESTION 5 Not wanting to have the reputation of being seen as socially irresponsible is a __________ driver of corporate social responsibility (CSR). 1 governmental 2 ethical 3 market 4 social It is recommended that you read business case number 11: “Marketing management: Heineken and SABMiller’s beer war” (in the recommended book “Business Cases”) before attempting to answer questions 8 and 9. It is not compulsory that you do so, as the answers to the assignment questions can be found in ITBM. STUDY UNIT 6: INTRODUCTION TO GENERAL MANAGEMENT QUESTION 6 The marketing manager will consider the following key aspects when developing the tactical plans: 1 product line, market position and distribution channels. 2 policies on debtors, dividends and capital structure. 3 improvement of productivity, location problems and legislation. 4 suppliers, policy on creditors and sources of raw materials.QUESTION 7 Techni Design is an online design company that sells high quality art made from reusable materials. The CEO has recently resigned and a new CEO will need to be appointed quickly. Which one of the following skills would be the most important for a CEO? 1 Conceptual skills 2 Interpersonal skills 3 Technical skills 4 Design skills QUESTION 8 Should the South African Breweries (SAB) attempt to adapt the available techniques and principles provided by the various management approaches to a given situation in order to reach its objectives, it would be applying the_______________. 1 scientific school of management 2 quantitative school of management 3 contingency approach to management 4 diversity management QUESTION 9 Sarah is coming to grips with the fact that she cannot manage the separate parts of the HR function in SAB independently, but that she should rather manage them as an integrated whole. This is known as the __________ to/of management. 1 systems approach 2 contingency approach 3 scientific school 4 quantitative school QUESTION 10 Lower-level managers use ____________ goals to develop ___________ goals. 1 strategic; short-term 2 strategic; medium-term 3 tactical; short-term 4 tactical; medium-termSTUDY UNIT 7: PLANNING QUESTION 11 In 2014, Tsogo Sun launched a newly refurbished Sun Square Hotel aimed at the local economy-class traveller who is looking for comfort and class at an affordable price. This is an example of a _________________ strategy. 1 concentration growth 2 market development 3 vertical integration 4 diversification QUESTION 12 Long-term strategic goals will be derived from Tsogo Sun’s ______________. 1 mission statement 2 vision statement 3 values and culture 4 business plan QUESTION 13 Which one of the following is an operational plan? 1 The turnaround strategy 2 Divestiture 3 Product-development 4 The budget QUESTION 14 Which specific corporate strategy involves taking over other businesses that provide raw materials or act as outlets? 1 Market-development 2 Joint-venture 3 Horizontal integration 4 Vertical integrationSTUDY UNIT 8: ORGANISING QUESTION 16 Organising means that management ___________________. 1 has to develop mechanisms in order to implement the strategy or plan 2 has to set goals and develop plans of action to achieve the goals as productively as possible 3 needs to decide where the organisation should go in future and how to get it there 4 is guaranteed that the goals of the business organisation will be accomplished QUESTION 17 What is an advantage of the matrix organisational structure that Nike follows? 1 Activities are grouped together under specific functions. 2 Specialised knowledge of employees is used to maximum effect. 3 Specialist project managers can help manage complex projects. 4 Decisions can be made quickly. QUESTION 18 Alex is a manager at a Nike store in Gauteng. He has four subordinates that report to him on a daily basis. This describes the ____________________. 1 chain of command 2 span of management 3 scalar principle 4 unity of command QUESTION 19 The HR department at the Beach Mist Luxury Resort comprises many subdepartments, including Remunerations and Training and Development, that all report to the Human Resources Manager. Cindy, the HR Manager, has authority over Craig, the Remunerations Manager, and Thabi, the Training and Development Manager. What kind of authority does Cindy have? 1 Staff authority 2 Command authority 3 Informal authority 4 Line authorityIt is recommended that you read business case number 7: “Organising: The Nike Matrix” (in the recommended book “Business Cases”) before attempting to answer question 17 and 18. It is not compulsory that you do so, as the answers to the assignment questions can be found in ITBM. QUESTION 20 FastForward Sports is a big company, and Matt’s department, running shoes, is just one of many similar departments. Although each department tends to act as a single business unit, it is crucial that they should stay focussed on the goals set by FastForward Sports’ top management. The key to keeping each department focused on FastForward’s goals is _____________________. 1 strategic management 2 coordination 3 leadership 4 cohesion STUDY UNIT 8: LEADING QUESTION 21 They have delegated authority for the day-to-day affairs of each of the Departmental Store, Discount, CNA and Group Services divisions. What is meant by authority? 1 The right of a manager to give commands to, and demand actions from, employees. 2 The manager’s ability to influence the behaviour of his/her employees. 3 The obligation to achieve the organisational goals by performing required activities. 4 The evaluation of how well individuals meet their responsibilities. QUESTION 22 Edcon describes one of its five pillars of leadership as transformational leadership, which can be defined as ______________________. 1 an exchange of rewards for compliance 2 the leader’s effect on followers, namely that they develop trust, admiration, loyalty and respect for their leader3 motivating followers by appealing to their self-interest 4 the ability of leaders to create and articulate a realistic, credible, attractive vision of the future of the organisation QUESTION 23 A manager has __________ power if he or she is able to influence employees by means of something that is of value to them. 1 coercive 2 reward 3 legitimate 4 referent It is recommended that you read business case number 5: “General management: Edcon” (in the recommended book “Business Cases”) before attempting to answer questions 21 and 22. It is not compulsory that you do so, as the answers to the assignment questions can be found in ITBM. QUESTION 24 Chris motivates his employees by appealing to their self-interest: he pays them and rewards them for their work efforts. Chris is an example of a __________ leader. 1 transformational 2 transactional 3 charismatic 4 visionary QUESTION 25 One of the most important elements of leadership is trust, which exhibits various dimensions. Phenya is well-known in the business world as someone who is able to tell the whole truth about a situation. Which dimension of trustdoes Phenya possess? 1 Integrity 2 Openness 3 Consistency 4 LoyaltySTUDY UNIT 9: CONTROLLING THE MANAGEMENT PROCESS QUESTION 26 Which one of the following statements about control is correct? 1 Only managers at top level are involved in the control process. 2 Control influences the first step in the management process (planning). 3 Control procedures are only necessary in large bureaucratic organisations. 4 Control is the third component of the management process. QUESTION 27 Which one of the following pertaining to the just-in-time (JIT) system is not correct? 1 The JIT system is a refinement of the material-requirements-planning system. 2 The JIT philosophy endeavours to manufacture products without incurring significant inventory costs. 3 JIT is based on the premise that actual orders for finished products are converted into orders for raw material and components. 4 The application of the JIT system will imply that larger quantities will be ordered less often. QUESTION 28 MTN wants to make sure its control systems are able to accommodate change and adjust to revisions, within limits, without management having to develop and implement an expensive new control system. Which characteristic of an effective control system is described here? 1 Integration 2 Flexibility 3 Accuracy 4 Timeliness QUESTION 29 The problem in Transnet’s HR Department included low morale and the lack of investment in human capital. What is the main instrument Transnet could use to control its human resources? 1 Specific ratio analysis 2 Labour force composition3 Social control mechanism 4 Performance measurement QUESTION 30 Transnet had to have a control system in place that was able to accommodate change when they faced the disposal of non-core assets like Viamax and SAA Metrorail. To which characteristic of an effective control system does this refer? 1 Integration 2 Flexibility 3 Accuracy 4 Timeliness [Show More]

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