MNB1501 Exam Prep For Distinction 2022.

MNB1501 Exam Prep For Distinction 2022. 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. That 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 investment 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. 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 generation The 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 strikes 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 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 creativity 1. 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 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 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. Internal The 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.