MNB1501 May/Jun 2017 exam paper — questions

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  1. Question 1 · The business world and business management · 1 marks

    This section, headed 'The business world and business management', consists of seven multiple-choice items, each worth one mark. Candidates must select the correct option and both circle it on the paper and mark it on the mark-reading sheet. Questions 2 and 3 are based on a case study which states that deregulation within the South African airline industry was introduced in 1991; before deregulation, South African Airways (SAA) was the only service provider on both the main domestic routes and the international routes, but the first decade after deregulation brought a wave of low-cost airline competitors such as Flitestar, Sun Air, Phoenix Air, Nationwide, 1time and Velvet Sky into the domestic market. Choose the option that correctly completes the statement: 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 that influence the activities in the micro-environment; or (4) determine how an enterprise can achieve the highest possible output with the least possible input.Show the full question

  2. Question 2 · The business world and business management · 1 marks

    This section, headed 'The business world and business management', consists of seven multiple-choice items, each worth one mark. Candidates must select the correct option and both circle it on the paper and mark it on the mark-reading sheet. Questions 2 and 3 are based on a case study which states that deregulation within the South African airline industry was introduced in 1991; before deregulation, South African Airways (SAA) was the only service provider on both the main domestic routes and the international routes, but the first decade after deregulation brought a wave of low-cost airline competitors such as Flitestar, Sun Air, Phoenix Air, Nationwide, 1time and Velvet Sky into the domestic market. Based on the case study about SAA and airline deregulation, several factors in the business world place pressure on a modern-day organisation such as SAA. Identify which one of the following factors is depicted in the mini-case study: (1) environmental change; (2) consumerism; (3) profitability; or (4) corporate social investment.Show the full question

  3. Question 3 · The business world and business management · 1 marks

    This section, headed 'The business world and business management', consists of seven multiple-choice items, each worth one mark. Candidates must select the correct option and both circle it on the paper and mark it on the mark-reading sheet. Questions 2 and 3 are based on a case study which states that deregulation within the South African airline industry was introduced in 1991; before deregulation, South African Airways (SAA) was the only service provider on both the main domestic routes and the international routes, but the first decade after deregulation brought a wave of low-cost airline competitors such as Flitestar, Sun Air, Phoenix Air, Nationwide, 1time and Velvet Sky into the domestic market. SAA operates within a free-market economy. The attributes listed are: (a) private ownership of production factors; (b) free competition; (c) profit motive recognised; (d) limited right to strike in state enterprises. Select the combination of attributes that correctly characterises a free-market economy: (1) a and b; (2) b and d; (3) a, b and c; or (4) a, b, c and d.Show the full question

  4. Question 4 · The business world and business management · 1 marks

    This section, headed 'The business world and business management', consists of seven multiple-choice items, each worth one mark. Candidates must select the correct option and both circle it on the paper and mark it on the mark-reading sheet. Questions 2 and 3 are based on a case study which states that deregulation within the South African airline industry was introduced in 1991; before deregulation, South African Airways (SAA) was the only service provider on both the main domestic routes and the international routes, but the first decade after deregulation brought a wave of low-cost airline competitors such as Flitestar, Sun Air, Phoenix Air, Nationwide, 1time and Velvet Sky into the domestic market. Select the term that correctly completes the statement: 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. Options are: (1) consumerism; (2) business ethics; (3) transformation; (4) social responsibility.Show the full question

  5. Question 5 · The business world and business management · 1 marks

    This section, headed 'The business world and business management', consists of seven multiple-choice items, each worth one mark. Candidates must select the correct option and both circle it on the paper and mark it on the mark-reading sheet. Questions 2 and 3 are based on a case study which states that deregulation within the South African airline industry was introduced in 1991; before deregulation, South African Airways (SAA) was the only service provider on both the main domestic routes and the international routes, but the first decade after deregulation brought a wave of low-cost airline competitors such as Flitestar, Sun Air, Phoenix Air, Nationwide, 1time and Velvet Sky into the domestic market. Identify the type of economy in which the profit motive is absent: the profit motive is absent in the ______ economy. Options are: (1) market; (2) command; (3) socialist; (4) free-enterprise.Show the full question

  6. Question 6 · The business world and business management · 1 marks

    This section, headed 'The business world and business management', consists of seven multiple-choice items, each worth one mark. Candidates must select the correct option and both circle it on the paper and mark it on the mark-reading sheet. Questions 2 and 3 are based on a case study which states that deregulation within the South African airline industry was introduced in 1991; before deregulation, South African Airways (SAA) was the only service provider on both the main domestic routes and the international routes, but the first decade after deregulation brought a wave of low-cost airline competitors such as Flitestar, Sun Air, Phoenix Air, Nationwide, 1time and Velvet Sky into the domestic market. Marcus decides to invest in a new mining company that will mine diamonds in the Northern Cape. For his mine to succeed he will require several resources. Match the resource in Column A with its correct description in Column B, where Column A lists (a) Natural resources, (b) Human resources, (c) Capital, and (d) Entrepreneurship, and Column B lists (i) the land Marcus purchases needs to be diamond-rich; (ii) he will need to appoint several managers to run the mine since labour law states each staff member may only work a certain number of hours; (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; (iv) Marcus will need to monitor South Africa's economic conditions to ensure the mine stays profitable; and (v) Marcus, along with four other business men, will have to accept the risks involved in starting this mine. Choose the correct matching combination: (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).Show the full question

  7. Question 7 · The business world and business management · 1 marks

    This section, headed 'The business world and business management', consists of seven multiple-choice items, each worth one mark. Candidates must select the correct option and both circle it on the paper and mark it on the mark-reading sheet. Questions 2 and 3 are based on a case study which states that deregulation within the South African airline industry was introduced in 1991; before deregulation, South African Airways (SAA) was the only service provider on both the main domestic routes and the international routes, but the first decade after deregulation brought a wave of low-cost airline competitors such as Flitestar, Sun Air, Phoenix Air, Nationwide, 1time and Velvet Sky into the domestic market. At Primedia Broadcasting, the business code of conduct states that all gifts exceeding the value of R350,00 need to be declared. Identify which term this scenario refers to: (1) corporate sustainability; (2) corporate social responsibility; (3) business ethics; (4) consumerism.Show the full question

  8. Question 8 · Entrepreneurship · 1 marks

    South African Breweries (SAB) is one of the main operators in the South African liquor market, alongside United National Breweries, Distell and Brandhouse. SAB forms part of the multinational beer brewer SABMiller, which mainly manufactures malt beer but also produces Flavoured Alcoholic Beverages (FABs) and owns more than 60% of the market for Coca-Cola soft drink sales in South Africa. SAB used to rely on its own large trucks to distribute the beer it brewed to customer outlets, but it has since stopped using its own trucks and now uses owner-drivers of trucks instead. These owner-drivers receive contracts from SAB to deliver beer to clients within demarcated areas. What term describes this arrangement?Show the full question

  9. Question 9 · Entrepreneurship · 1 marks

    SABMiller began in 1895 under the name Castle Breweries. At that time the company would have needed to think about what the future might hold, how such developments could affect the business, and what actions needed to be taken in the present to prepare for them. Which management skill does this scenario describe?Show the full question

  10. Question 10 · Entrepreneurship · 1 marks

    Which one of the following scenarios can be considered an entrepreneurial activity: Lucy starting her own cleaning business after a local insurance firm asks her to take over their cleaning; Sam, who wants to learn professional photography, applying for a position at the local photography shop; Kabelo, who is afraid of working at a high-risk firm, asking for a demotion; or Caron, who is tired of being driven to perform at the hotel where she works, deciding to run her mother's guesthouse instead?Show the full question

  11. Question 11 · Entrepreneurship · 1 marks

    Having conducted market research, an entrepreneur is able to establish that a feasible opportunity exists that could be exploited for profit. According to the entrepreneurial process, which of the following steps is undertaken next?Show the full question

  12. Question 12 · Entrepreneurship · 1 marks

    What does an internal locus of control indicate about a person?Show the full question

  13. Question 13 · Entrepreneurship · 1 marks

    M&M Consulting is a recruitment company dedicated to identifying the most talented applicants and introducing them to its valuable clients. The company employs 24 employees and has an annual turnover of R4.65 million. Based on these figures, how would M&M Consulting be classified?Show the full question

  14. Question 14 · Establishing a business · 1 marks

    These multiple-choice items belong to the 'Establishing a Business' section of the May/June 2017 MNB1501/RMB151K paper. Two of them (15 and 16) refer to a short case study about a company called Legit, which is described as being aimed at young, fashion-conscious women aged 16 to 24 who shop on a shoestring budget and want trendy clothing. Decide which one of the following options represents a valid reason for drawing up a business plan: (1) to sell the business to other entrepreneurs; (2) to obtain bank financing; (3) to bypass strategic alliances with other companies; or (4) to avoid mergers and acquisitions.Show the full question

  15. Question 15 · Establishing a business · 1 marks

    These multiple-choice items belong to the 'Establishing a Business' section of the May/June 2017 MNB1501/RMB151K paper. Two of them (15 and 16) refer to a short case study about a company called Legit, which is described as being aimed at young, fashion-conscious women aged 16 to 24 who shop on a shoestring budget and want trendy clothing. Given that Legit targets young, fashion-conscious women aged 16 to 24 who operate on a shoestring budget and offers them fashionable clothing, in which section of Legit's business plan would this description of its target market most likely appear?Show the full question

  16. Question 16 · Establishing a business · 1 marks

    These multiple-choice items belong to the 'Establishing a Business' section of the May/June 2017 MNB1501/RMB151K paper. Two of them (15 and 16) refer to a short case study about a company called Legit, which is described as being aimed at young, fashion-conscious women aged 16 to 24 who shop on a shoestring budget and want trendy clothing. Considering the same Legit case study, identify in which section of the business plan Legit's name and physical location would be recorded.Show the full question

  17. Question 17 · Establishing a business · 1 marks

    These multiple-choice items belong to the 'Establishing a Business' section of the May/June 2017 MNB1501/RMB151K paper. Two of them (15 and 16) refer to a short case study about a company called Legit, which is described as being aimed at young, fashion-conscious women aged 16 to 24 who shop on a shoestring budget and want trendy clothing. The entrepreneur George B. Boedecker, Jr developed the shoe brand Crocs Inc. Determine which type of company Crocs Inc exemplifies.Show the full question

  18. Question 18 · Establishing a business · 1 marks

    These multiple-choice items belong to the 'Establishing a Business' section of the May/June 2017 MNB1501/RMB151K paper. Two of them (15 and 16) refer to a short case study about a company called Legit, which is described as being aimed at young, fashion-conscious women aged 16 to 24 who shop on a shoestring budget and want trendy clothing. A particular form of enterprise is designed to secure certain economic benefits for its members through joint action carried out on their behalf; the members run the enterprise democratically, and specific values must be upheld for the enterprise to continue existing. Identify which of the following terms best matches this description.Show the full question

  19. Question 19 · Establishing a business · 1 marks

    These multiple-choice items belong to the 'Establishing a Business' section of the May/June 2017 MNB1501/RMB151K paper. Two of them (15 and 16) refer to a short case study about a company called Legit, which is described as being aimed at young, fashion-conscious women aged 16 to 24 who shop on a shoestring budget and want trendy clothing. Kabelo currently works for a large company that produces television shows for a local broadcaster, but he is keen to start his own production company and has begun the process of establishing this new business. He anticipates needing to employ at least 50 people, and because of the nature of the industry he expects the company's annual turnover to exceed R50 million. Determine which of the following would be the biggest consideration for Kabelo when deciding on the form of enterprise for his new business.Show the full question

  20. Question 20 · Establishing a business · 1 marks

    These multiple-choice items belong to the 'Establishing a Business' section of the May/June 2017 MNB1501/RMB151K paper. Two of them (15 and 16) refer to a short case study about a company called Legit, which is described as being aimed at young, fashion-conscious women aged 16 to 24 who shop on a shoestring budget and want trendy clothing. Identify which one of the following statements correctly describes an advantage of a private business trust.Show the full question

  21. Question 21 · The business environment · 1 marks

    A short case study explains that since its inception, the commercial airline industry (with its full-service business model) has found it difficult to survive and grow in a highly dynamic business environment. Among the major challenges have been continually changing aircraft technology, sharply rising capital outlay needed to acquire top-of-the-range aircraft, and shifting government priorities - all of which have repeatedly forced commercial airlines to adjust to a dynamic environment in which politics plays a significant role. This case study is used for questions 21 and 22. Based on the airline case study, the changing aircraft technology that affects the commercial airline industry is described as a variable operating within a certain environment, and this environment in turn forms part of a broader environment. Select the option that correctly completes both blanks: economic/market; economic/macro; technological/market; or technological/macro.Show the full question

  22. Question 22 · The business environment · 1 marks

    A short case study explains that since its inception, the commercial airline industry (with its full-service business model) has found it difficult to survive and grow in a highly dynamic business environment. Among the major challenges have been continually changing aircraft technology, sharply rising capital outlay needed to acquire top-of-the-range aircraft, and shifting government priorities - all of which have repeatedly forced commercial airlines to adjust to a dynamic environment in which politics plays a significant role. This case study is used for questions 21 and 22. Still referring to the airline case study, an airline's reputation is best described as an example of which of the following aspects of the business: a tangible resource, an intangible resource, an organisational capability, or a physical resource?Show the full question

  23. Question 23 · The business environment · 1 marks

    A short case study explains that since its inception, the commercial airline industry (with its full-service business model) has found it difficult to survive and grow in a highly dynamic business environment. Among the major challenges have been continually changing aircraft technology, sharply rising capital outlay needed to acquire top-of-the-range aircraft, and shifting government priorities - all of which have repeatedly forced commercial airlines to adjust to a dynamic environment in which politics plays a significant role. This case study is used for questions 21 and 22. Which one of the following statements about business organisations is INCORRECT: that society depends on business organisations for most of the products and services it needs; that business organisations are generally self-sufficient and autonomous; that business organisations and society are mutually dependent on one another; or that business organisations obtain resources from the society and environment in which they operate?Show the full question

  24. Question 24 · The business environment · 1 marks

    A short case study explains that since its inception, the commercial airline industry (with its full-service business model) has found it difficult to survive and grow in a highly dynamic business environment. Among the major challenges have been continually changing aircraft technology, sharply rising capital outlay needed to acquire top-of-the-range aircraft, and shifting government priorities - all of which have repeatedly forced commercial airlines to adjust to a dynamic environment in which politics plays a significant role. This case study is used for questions 21 and 22. Current labour legislation together with the Employment Equity Act 55 of 1998 are examples of variables found in a particular environment, and this environment is said to have either a direct or an indirect influence on a business and its management. Choose the option that correctly names the environment and the type of influence: institutional/governmental with a direct influence; institutional/governmental with an indirect influence; social with a direct influence; or social with an indirect influence.Show the full question

  25. Question 25 · The business environment · 1 marks

    A short case study explains that since its inception, the commercial airline industry (with its full-service business model) has found it difficult to survive and grow in a highly dynamic business environment. Among the major challenges have been continually changing aircraft technology, sharply rising capital outlay needed to acquire top-of-the-range aircraft, and shifting government priorities - all of which have repeatedly forced commercial airlines to adjust to a dynamic environment in which politics plays a significant role. This case study is used for questions 21 and 22. Consider the statement: 'Consumers are given the assurance that their interest will receive attention from government and related parties.' Which right of the consumer does this statement describe: the right to freedom, the right to be heard, the right to be informed, or the right to safety?Show the full question

  26. Question 26 · The business environment · 1 marks

    A short case study explains that since its inception, the commercial airline industry (with its full-service business model) has found it difficult to survive and grow in a highly dynamic business environment. Among the major challenges have been continually changing aircraft technology, sharply rising capital outlay needed to acquire top-of-the-range aircraft, and shifting government priorities - all of which have repeatedly forced commercial airlines to adjust to a dynamic environment in which politics plays a significant role. This case study is used for questions 21 and 22. Airlines have begun appointing more female pilots, a trend that would have been unheard of just a decade ago. This shift reflects a change in which environment of the business: the micro-environment, the market environment, the macro-environment, or the consumer environment?Show the full question

  27. Question 27 · The business environment · 1 marks

    A short case study explains that since its inception, the commercial airline industry (with its full-service business model) has found it difficult to survive and grow in a highly dynamic business environment. Among the major challenges have been continually changing aircraft technology, sharply rising capital outlay needed to acquire top-of-the-range aircraft, and shifting government priorities - all of which have repeatedly forced commercial airlines to adjust to a dynamic environment in which politics plays a significant role. This case study is used for questions 21 and 22. Which one of the following factors is NOT part of a business's micro-environment: competitive strategy, enterprise resources, marketing opportunities, or public relations policy?Show the full question

  28. Question 28 · Corporate social responsibility · 1 marks

    Select the option that best completes the statement: corporate governance is essentially about ____.Show the full question

  29. Question 29 · Corporate social responsibility · 1 marks

    Read the following case study: South African Breweries' (SAB) ethical conduct is based on the King III report, which explains the primary principles of good corporate governance. The company has long played a role as one of South Africa's most socially progressive and innovative enterprises. Based on this, if SAB's goal is to work together with a partner in a contractual relationship where one partner directs the objectives and provides the funding, at what level of engagement will SAB be involved?Show the full question

  30. Question 30 · Corporate social responsibility · 1 marks

    Continuing with the case study about South African Breweries (SAB), whose ethical conduct is based on the King III report and which has long been regarded as one of South Africa's most socially progressive and innovative enterprises: a company such as SAB has many stakeholders. The shareholders of SAB are usually viewed as what type of stakeholders?Show the full question

  31. Question 31 · Corporate social responsibility · 1 marks

    If information is shared and the outcomes of the engagement process are integrated into business practice, identify which step of the stakeholder engagement process this represents.Show the full question

  32. Question 32 · Corporate social responsibility · 1 marks

    Identify which one of the following statements regarding the King III report is correct.Show the full question

  33. Question 33 · Corporate social responsibility · 1 marks

    Not wanting to have the reputation of being seen as socially irresponsible is an example of which type of driver of corporate social responsibility (CSR)?Show the full question

  34. Question 34 · Introduction to general management · 1 marks

    This section, worth 8 marks in total, tests introductory concepts of general management through eight separate multiple-choice items (questions 34 to 41), each covering a different management principle, level, skill, role or approach. Imagine that you are a lecturer at Unisa who has just been promoted into a line management post. In this new role you must guide the staff within your own subsection and keep close control over what they do. Identify which level of management you now belong to.Show the full question

  35. Question 35 · Introduction to general management · 1 marks

    This section, worth 8 marks in total, tests introductory concepts of general management through eight separate multiple-choice items (questions 34 to 41), each covering a different management principle, level, skill, role or approach. Identify which set of key aspects a marketing manager would take into account when drawing up tactical plans.Show the full question

  36. Question 36 · Introduction to general management · 1 marks

    This section, worth 8 marks in total, tests introductory concepts of general management through eight separate multiple-choice items (questions 34 to 41), each covering a different management principle, level, skill, role or approach. Techni Design is an online design business that sells high-quality art made from reusable materials. Its CEO has just resigned, and a replacement must be found urgently. Determine which skill would be most important for the new CEO to possess.Show the full question

  37. Question 37 · Introduction to general management · 1 marks

    This section, worth 8 marks in total, tests introductory concepts of general management through eight separate multiple-choice items (questions 34 to 41), each covering a different management principle, level, skill, role or approach. Consider the following case study: SAB forms part of the multinational beer brewer SABMiller, which mainly manufactures malt beer but also produces Flavoured Alcoholic Beverages (FABs) and controls more than 60% of the South African market for Coca-Cola soft drink sales. Suppose South African Breweries (SAB) tries to adapt the tools and principles offered by various management approaches to suit a particular situation so that it can reach its objectives. Identify which management approach this represents.Show the full question

  38. Question 38 · Introduction to general management · 1 marks

    This section, worth 8 marks in total, tests introductory concepts of general management through eight separate multiple-choice items (questions 34 to 41), each covering a different management principle, level, skill, role or approach. Continuing with the SAB case study: Sarah has come to realise that she cannot manage the different parts of the HR function at SAB separately, but must instead manage them as one integrated whole. Identify the name given to this approach to management.Show the full question

  39. Question 39 · Introduction to general management · 1 marks

    This section, worth 8 marks in total, tests introductory concepts of general management through eight separate multiple-choice items (questions 34 to 41), each covering a different management principle, level, skill, role or approach. Identify which of the listed options relates to the interpersonal role of a manager.Show the full question

  40. Question 40 · Introduction to general management · 1 marks

    This section, worth 8 marks in total, tests introductory concepts of general management through eight separate multiple-choice items (questions 34 to 41), each covering a different management principle, level, skill, role or approach. Thembi works as a shift supervisor at a mine, where she is in charge of the day-to-day activities and short-term planning for her section. Determine which level of management Thembi, as a shift supervisor, belongs to.Show the full question

  41. Question 41 · Introduction to general management · 1 marks

    This section, worth 8 marks in total, tests introductory concepts of general management through eight separate multiple-choice items (questions 34 to 41), each covering a different management principle, level, skill, role or approach. Complete the statement: lower-level managers use blank goals to develop blank goals. Choose the option that correctly fills in both blanks in that order.Show the full question

  42. Question 42 · Planning · 1 marks

    Tsogo Sun has operated in the hospitality industry for more than 44 years, and as part of its strategy it has, over recent years, bought and refurbished distressed hotels before returning them to profitable operation. In 2014 Tsogo Sun launched a newly refurbished Sun Square Hotel targeted at local economy-class travellers seeking comfort and class at an affordable price. Identify which type of strategy this represents.Show the full question

  43. Question 43 · Planning · 1 marks

    Continuing with the Tsogo Sun case (a hospitality group with over 44 years in the industry that has strategically acquired and revamped distressed hotels), determine what its long-term strategic goals are derived from.Show the full question

  44. Question 44 · Planning · 1 marks

    Planning creates a blueprint of an organisation's goals and formulates the plans needed to attain them. Identify which benefit of planning is being described by this statement.Show the full question

  45. Question 45 · Planning · 1 marks

    Select which one of the listed options is classified as an operational plan.Show the full question

  46. Question 46 · Planning · 1 marks

    Identify which specific corporate strategy involves a business taking over other businesses that supply its raw materials or serve as its outlets.Show the full question

  47. Question 47 · Planning · 1 marks

    Consider the rule that pilots cannot be scheduled for more than 35 hours in any seven-day week, nor more than 100 hours in a 28-day cycle, and that they must receive a 36-hour break every seven days as well as 30 days off within an 84-day cycle. Determine what type of planning document this rule represents, and what category of plan it falls under (i.e. fill in the blanks: 'This is an example of a ____, which is a ____ plan').Show the full question

  48. Question 48 · Organising · 1 marks

    Complete the following statement about the organising function of management: 'Organising means that management ___.' Choose the correct option: (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 there; (4) is guaranteed that the goals of the business organisation will be accomplished.Show the full question

  49. Question 49 · Organising · 1 marks

    Nike put in place a basic matrix-like structure that combines functional and product departmentalisation. Its current organisational structure still resembles this matrix structure, in which each unit has multiple responsibilities and reporting lines. Based on this scenario, which of the following 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.Show the full question

  50. Question 50 · Organising · 1 marks

    Continuing with the Nike scenario: Alex is a manager at a Nike store in Gauteng, and he has four subordinates who report to him on a daily basis. This situation describes which management concept? (1) chain of command; (2) span of management; (3) scalar principle; (4) unity of command.Show the full question

  51. Question 51 · Organising · 1 marks

    Which one of the following statements correctly identifies a distinct characteristic of formal authority? (1) Formal authority is vested in people, not organisational positions; (2) Formal authority is accepted by subordinates; (3) Formal authority flows up the vertical hierarchy of an organisation; (4) Formal authority is only present in centralised structures.Show the full question

  52. Question 52 · Organising · 1 marks

    The human resources department at the Beach Mist Luxury Resort is made up of several sub-departments, including Remunerations and Training and Development, all of which report to the Human Resources Manager, Cindy. Cindy has authority over Craig, the Remunerations Manager, and Thabi, the Training and Development Manager. What kind of authority does Cindy hold in this case? (1) Staff authority; (2) Command authority; (3) Informal authority; (4) Line authority.Show the full question

  53. Question 53 · Organising · 1 marks

    FastForward Sports is a large company, and Matt's department, which handles running shoes, is only one of several similar departments. Even though each department functions almost as its own business unit, it is important that all departments remain aligned with the goals set by FastForward Sports's top management. What is the key mechanism that keeps each department focused on FastForward Sports's overall goals? (1) strategic management; (2) coordination; (3) leadership; (4) cohesion.Show the full question

  54. Question 54 · Organising · 1 marks

    FastForward Sports operates with only a few levels of management, but each manager oversees many subordinates. This arrangement means that FastForward Sports has which type of structure? (1) narrow; (2) low; (3) high; (4) broad.Show the full question

  55. Question 55 · Organising · 1 marks

    Thabo manages an advertising company that is divided into several business units, namely sales, marketing, media, customer insight, and products and services. According to this structure, Thabo's advertising company is departmentalised according to which basis? (1) function; (2) product; (3) location; (4) customer.Show the full question

  56. Question 56 · Leading · 1 marks

    Edcon, a retailer with over 20 000 permanent staff and 25 000 temporary staff, has grown through acquisitions to add top stationery and houseware brands to its clothing, footwear and textiles (CFT) portfolio. The company is organised into three divisions, namely the Departmental Store Division, the Discount Store Division and the CNA division. Managers have been given delegated authority for the day-to-day running of each of the Departmental Store, Discount, CNA and Group Services divisions. What does the term 'authority' mean in this context? Option 1: the right of a manager to give commands to, and demand actions from, employees. Option 2: the manager's ability to influence the behaviour of his/her employees. Option 3: the obligation to achieve the organisational goals by performing required activities. Option 4: the evaluation of how well individuals meet their responsibilities.Show the full question

  57. Question 57 · Leading · 1 marks

    Edcon identifies transformational leadership as one of its five pillars of leadership. Which of the following best defines transformational leadership? Option 1: an exchange of rewards for compliance. Option 2: the leader's effect on followers, namely that they develop trust, admiration, loyalty and respect for their leader. Option 3: motivating followers by appealing to their self-interest. Option 4: the ability of leaders to create and articulate a realistic, credible, attractive vision of the future of the organisation.Show the full question

  58. Question 58 · Leading · 1 marks

    A certain type of team is made up of employees who occupy the same hierarchical level but come from different work areas, and who join together to complete a task. What type of team is being described here? Option 1: Problem-solving. Option 2: Self-managed. Option 3: Cross-functional. Option 4: Work.Show the full question

  59. Question 59 · Leading · 1 marks

    A manager is described as having a particular type of power when he or she can influence employees by offering them something that they value. Which type of power is this? Option 1: coercive. Option 2: reward. Option 3: legitimate. Option 4: referent.Show the full question

  60. Question 60 · Leading · 1 marks

    Chris motivates his employees by appealing to their self-interest: he pays them and rewards them for their work efforts. Based on this, Chris is an example of which type of leader? Option 1: transformational. Option 2: transactional. Option 3: charismatic. Option 4: visionary.Show the full question

  61. Question 61 · Leading · 1 marks

    Trust is one of the most important elements of leadership and shows itself through 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 trust does Phenya display? Option 1: Integrity. Option 2: Openness. Option 3: Consistency. Option 4: Loyalty.Show the full question

  62. Question 62 · Leading · 1 marks

    Danny is the technical manager at a large computer engineering firm. He arranged a meeting with one of the technicians because he believes she could perform better. Danny decided to apply pressure and told her that she could be demoted or even retrenched if her performance did not improve. What type of power is Danny exercising over the technician in this situation? Option 1: legitimate. Option 2: coercive. Option 3: referent. Option 4: expert.Show the full question

  63. Question 63 · Control · 1 marks

    Identify which one of the following statements about control is correct: (1) only managers at the top level are involved in the control process; (2) control influences the first step in the management process, namely planning; (3) control procedures are only necessary in large bureaucratic organisations; (4) control is the third component of the management process.Show the full question

  64. Question 64 · Control · 1 marks

    Determine which one of the following statements about 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 aims 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) applying the JIT system will mean that larger quantities will be ordered less often.Show the full question

  65. Question 65 · Control · 1 marks

    State how productivity standards are usually expressed: (1) as the numerical value of profit expected for the period; (2) as the percentage of market share of the total market the business is aiming to conquer; (3) as the ratio between inputs and outputs; (4) as the effectiveness of training programmes.Show the full question

  66. Question 66 · Control · 1 marks

    MTN wants its control systems to be able to accommodate change and adjust to revisions within limits, without management having to develop and implement an expensive new control system. Identify which characteristic of an effective control system this describes: (1) integration; (2) flexibility; (3) accuracy; (4) timeliness.Show the full question

  67. Question 67 · Control · 1 marks

    If Toyota were to use the economic order quantity (EOQ) system for control purposes, identify which type of control this would be an example of: (1) quality; (2) information; (3) inventory; (4) financial resources.Show the full question

  68. Question 68 · Control · 1 marks

    Read the following scenario, which also applies to question 69: Maria Ramos and her management team at Transnet had to deal with two major problems in transforming the organisation. In a presentation, Maria Ramos identified four key issues, two of which related to controlling human resources and financial resources. The problem in Transnet's Human Resource Department included low staff morale and a lack of investment in human capital. Identify the main instrument Transnet could use to control its human resources: (1) specific ratio analysis; (2) labour force composition; (3) social control mechanism; (4) performance measurement.Show the full question

  69. Question 69 · Control · 1 marks

    Continuing the Transnet scenario involving Maria Ramos and her management team: Transnet needed a control system that could accommodate change when the organisation faced the disposal of non-core assets such as Viamax and SAA Metrorail. Identify which characteristic of an effective control system this refers to: (1) integration; (2) flexibility; (3) accuracy; (4) timeliness.Show the full question

  70. Question 70 · Control · 1 marks

    Time projections of projects and sales volumes expressed in units are examples of which type of budget: (1) non-financial; (2) operational; (3) financial; (4) production.Show the full question

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