Exam (elaborations)

MNB1601 ASSESSMENT 3 SEM 2 OF 2024 EXPECTED QUESTIONS AND ANSWERS

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Course
Business Management IB (MNB1601)

Institution
University Of South Africa (Unisa)

THIS DOCUMENT CONTAINS MNB1601 ASSESSMENT 3 SEM 2 OF 2024 EXPECTED QUESTIONS AND ANSWERS. USE IT CORRECTLY AS A GUIDE AND FOR PRACTICE TO SCORE ABOVE 80%

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Uploaded on August 23, 2024
Number of pages 54
Written in 2024/2025
Type Exam (elaborations)
Contains Questions & answers

mnb1601 assessment 2

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Started on Monday, 5 August 2024, 8:18 PM
State Finished
Completed on Monday, 5 August 2024, 8:31 PM
Time taken 12 mins 50 secs
Marks 18.00/20.00
Grade 90.00 out of 100.00

Question 1 Study the information from IBM’s financial statements below:
Correct
Mark 1.00 out
of 1.00 Dec 31, 2010 Dec 31, 2009 Dec 31, 2008
Flag Current assets R 48 116 000 R 48 935 000 R 49 004 000
question
Current R 40 562 000 R 36 002 000 R 42 435 000
liabilities
Inventory R 2 450 000 R 2 494 000 R 2 701 000
Total liabilities R 90 405 000 R 86 385 000 R 96 058 000
Total assets R 113 452 000 R 109 022 000 R 109 524 000
Net income R 14 833 000 R 13 425 000 R 12 334 000
Gross profit R 46 014 000 R 43 785 000 R 45 661 000
Sales R 99 870 000 R 95 758 000 R 103 630 000

What is the acid-test ratio for the year 2008?

Select one:
a. 1,14:1

b. 1,13:1

c. 1,11:1

d. 1,09:1

The correct answer is: 1,09:1

The _________ side of the statement of financial position reflects the possessions
of the business.

Select one:
a. asset
b. liability

, c. income
Question 2
Correct d. expense
Mark 1.00 out
of 1.00

Flag
question The correct answer is: asset

Question 3 Kabelo and Hendrik are joint owners of Fitness Gym. They are currently
Correct investigating the option of investing in cryotherapy, a cold therapy that may reduce
Mark 1.00 out
inflammation in tendons or joints. After much planning and deliberation, Kabelo and
of 1.00 Hendrik decides to base their decision on investing in cryotherapy on the net
present value of the investment they would have to make in order to purchase the
Flag
question cryotherapy equipment for Fitness gym. Their calculations determine that the NPV
for the cryotherapy equipment is R365 234. This means that Kabelo and Hendrik
must ______________ .

Select one:
a. contact a business consultant to assist with better decision-making
criteria
b. reject the project and develop a new proposal
c. accept the project and install the new equipment as soon as possible
d. delay their decision until more information becomes available

The correct answer is: accept the project and install the new equipment as soon as
possible

Question 4 The __________ of IBM consists primarily of receipts resulting from the sale of its
Correct products and/or services.
Mark 1.00 out
of 1.00 Select one:
Flag a. profit
question
b. income
c. liquidity
d. capital structure

The correct answer is: income

Question 5 Kelly is the owner of a small gourmet burger food truck. She sells her burgers
Correct during lunch in the parking lot of the Menlyn Maine shopping centre. Her expenses

,Mark 1.00 out are recorded as follow:
of 1.00
Sales price per burger: R35 per burger
Flag
question Variable cost per burger: R12 per burger
Total fixed cost per annum: R42 000
Calculate the break-even point for Kelly’s hamburgers.

Select one:
a. 1 200 burgers

b. 1 826 burgers
c. 420 burgers

d. 3 500 burgers

The correct answer is: 1 826 burgers

Question 6 _________________ is the ability of the business to satisfy its short-term obligations
Correct as they become due.
Mark 1.00 out
of 1.00 Select one:
Flag a. Solvency
question
b. Liquidity
c. Profitability
d. Currency

The correct answer is: Liquidity

Question 7 If IBM would like to improve its gross profit margin, which one of the following
Correct strategies would be the most appropriate? IBM would have to _______________ .
Mark 1.00 out
of 1.00 Select one:
Flag a. decrease its marketing efforts in order to decrease sales while increasing
question the cost of products sold
b. reduce equity by buying back shares and cancelling the shares
c. improve its marketing efforts in order to increase sales while reducing
the cost of products sold
d. increase sales by relaxing the credit standards while improving productivity
by means of performance-management systems

, The correct answer is: improve its marketing efforts in order to increase sales
while reducing the cost of products sold

Question 8 Gerstner added $20 billion in annual revenue to IBM. Which one of the following
Correct formulas would calculate the profit IBM earned?
Mark 1.00 out
of 1.00 Select one:
Flag a. Profit = cost – income
question
b. Profit = price x cost
c. Profit = income – cost
d. Profit = price x units sold

The correct answer is: Profit = income – cost

Question 9 Study the information from IBM’s financial statements below:
Incorrect
Mark 0.00 out
of 1.00 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Flag Current assets R 48 116 000 R 48 935 000 R 49 004 000
question
Current R 40 562 000 R 36 002 000 R 42 435 000
liabilities
Inventory R 2 450 000 R 2 494 000 R 2 701 000
Owners’ equity R56 455 000 R55 932 000 R53 657 000
Total liabilities R 90 405 000 R 86 385 000 R 96 058 000
Total assets R 113 452 000 R 109 022 000 R 109 524 000
Net income R 14 833 000 R 13 425 000 R 12 334 000
Net profit R 46 014 000 R 43 785 000 R 45 661 000
Sales R 99 870 000 R 95 758 000 R 103 630 000

What is the return on owners’ equity (ROE) for the year 2019?

Select one:
a. 24%

b. 1,95:1

c. 78%

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Exam (elaborations)

MNB1601 ASSESSMENT 3 SEM 2 OF 2024 EXPECTED QUESTIONS AND ANSWERS

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