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BSM1602 MCQ EXAM PACK 2023
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BSM1602MCQ
EXAM
PACK 2023
,3 BSM1602 Business Management 1B
Assignment 01 – Semester 01 – 2017
Chapter 1: Introduction to business management for the entrepreneur
Question 1
Effective supervision and motivation of employees within an enterprise, refers to _______ as a
fundamental management task.
1) planning
2) leading
3) organising
4) control
Answer: The correct answer is 2
Refer: Tutorial letter 201/1/2017; Prescribed Textbook, pg. 4
Reasoning: Effective supervision and motivation of employees within an enterprise, refers to
leading as a fundamental management task.
Question 2
Which one of the following statements is NOT correct?
1) Public enterprises are created to make a profit.
2) Public enterprises are funded by provincial administrations.
3) Public enterprises are responsible for providing the basic requirements for efficient
functioning of the economy.
4) Public enterprises are funded by government and local authorities.
Answer: The correct answer is 1
Refer: Tutorial letter 201/1/2017; Prescribed Textbook, pg. 8
Reasoning: Public enterprises are funded and managed by government, provincial
administrations or local authorities, and they are not created to make a profit.
Public enterprises are responsible for providing the basic requirements for the
efficient functioning of the economy and meeting the needs of the society. Option 1
is therefore incorrect as public enterprises are not created to make a profit.
Chapter 2: The general management function
Question 3
The process of transferring responsibilities for a specific business function from an employee group
to a non‐employee group, is known as _______.
1) public relations
2) organising
3) outsourcing
4) globalization
Answer: The correct answer is 3
Refer: Tutorial letter 201/1/2017; Prescribed Textbook, pg. 20
,4 BSM1602 Business Management 1B
Reasoning: Outsourcing is the process of transferring responsibilities for a specific business
function from an employee group to a non‐employee group.
Question 4
Which one of the following problem‐solving techniques would be the best to use if individuals want
to act independently, and the ideas of each individual are sought?
1) The Delphi technique
2) The nominal group technique
3) Brainstorming
4) Fishbone diagrams
Answer: The correct answer is 2
Refer: Tutorial letter 201/1/2017; Prescribed Textbook, pg. 41
Reasoning: When following the Nominal Group Technique to solve problems, the staff
members involved are only a group in name. All the members of the group act
independently, and the ideas of individuals are sought, not the ideas of the group as
a whole.
Chapter 3: The financial function
Question 5
The ratio that will measure how efficiently profits are being generated from the assets employed in
the enterprise, is known as the _______ ratio.
1) return on assets
2) net profit margin
3) gross profit margin
4) return on equity
Answer: The correct answer is 1
Refer: Tutorial letter 201/1/2017; Prescribed Textbook, pg. 61
Reasoning: The return on assets ratio is a measure of an enterprise’s success in earning a return
for all providers of capital. This ratio also measures how efficiently profits are being
generated from the assets employed in the enterprise, with its own previous
performance or with enterprises in a similar industry.
Question 6
During which step, of the development of effective long‐term plans, would you identify ways to
improve the enterprises’ productivity and profitability?
1) Step 2
2) Step 3
3) Step 4
4) Step 5
Answer: The correct answer is 4
Refer: Tutorial letter 201/1/2017; Prescribed Textbook, pg. 71
, 5 BSM1602 Business Management 1B
Reasoning: To develop effective and long‐term plans, one should take the following steps:
determine your personal objectives and how they affect your willingness and ability
to pursue financial goals for your business; set goals and objectives for the business;
develop long‐range plans that enable you to attain your goals and objectives; focus
on the financial, human and physical requirements; study methods of operation in
order to identify ways to improve the business’s productivity and profitability.
Chapter 4: The marketing function
Question 7
Which one of the following statements is correct?
1) A mission statement is an enterprise’s declaration of its reason for being.
2) A vision statement defines the fundamental unique purpose of the enterprise.
3) A mission statement only identifies the products, services and customers of an enterprise.
4) A vision statement gives direction to possible realistic business objectives.
Answer: The correct answer is 1
Refer: Tutorial letter 201/1/2017; Prescribed Textbook, pg. 105
Reasoning: An enterprise is defined by its mission statement. Only a clear definition of the
mission and purpose of an enterprise makes realistic business objectives possible.
The mission statement defines the fundamental unique purpose of the enterprise.
A mission statement does not only identify the products, services and customers.
Option 1 is therefore the only correct option.
Question 8
Which one of the following is NOT a criterion on which a market can be evaluated?
1) Size of the market
2) Level of completion
3) Market growth potential
4) Geographical location
Answer: The correct answer is 4
Refer: Tutorial letter 201/1/2017; Prescribed Textbook, pg. 113
Reasoning: The criteria used to evaluate market attractiveness are: size of the market, growth
potential of the market, how easy it is to reach customers, whether customers can
afford the product, how easy it is to enter the market and level of competition.
Geographical location is not one of the criteria used to evaluate market
attractiveness. Option 2 should however have read: level of competition. Due to
this typing error, this question was not marked and all students were awarded the
mark.
Chapter 5: Operations management
Question 9
The primary functions of operations management are:
a) Production planning and control
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