MNB1501 Oct/Nov 2018 exam paper — questions
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View the paper as writtenscanned pages →Question 1 · The business world and business management · 1 marks
Complete the following statement about business functions: the ______ function creates a favourable image of the business and promotes goodwill between the business and the external groups that are directly and indirectly involved in the business. Choose the correct function from the options provided.Show the full question
Question 2 · The business world and business management · 1 marks
Read the following case study: A reason for the success of Southwest Airline lies in how the airline treats its personnel. Management believes that when employees are treated well, they will treat customers well, creating a beneficial situation for all stakeholders. Southwest Airlines' wages are generally lower than those of competitors, but the company compensates by offering employees stock options, allowing them to benefit from the airline's financial success. Given that Southwest Airline operates within a free-market environment, select the statement that correctly describes what this means.Show the full question
Question 3 · The business world and business management · 1 marks
Referring to the same Southwest Airline case study: businesses such as Southwest Airlines need to ensure they provide a safe environment for their employees, for example by ensuring that materials are packed, transported and moved to and within the organisation in the safest possible manner. This practice ensures that the ______ needs of employees are satisfied. Select the correct type of need.Show the full question
Question 4 · The business world and business management · 1 marks
Karla is expecting her first baby and is researching hospitals that would best suit her particular needs. In order to provide Karla with the health service and care she requires during her pregnancy, the hospital needs labour, beds and medicine. Identify the correct business term for the process whereby the labour, beds and medicine are converted into a health service.Show the full question
Question 5 · The business world and business management · 1 marks
Identify which one of the following statements is NOT true regarding society's scarce resources.Show the full question
Question 6 · The business world and business management · 1 marks
Identify which one of the following is a characteristic of a market economy.Show the full question
Question 7 · The business world and business management · 1 marks
Complete the following statement: within a ______ economy, spending is only limited by income. Choose the correct type of economy.Show the full question
Question 8 · Entrepreneurship · 1 marks
Read the case study and answer questions 8 and 9: In January 2005, MXit was launched as a subscription service, which Heunis knew would not work, but he decided to try anyway. By the end of April 2005 MXit had only 40 subscribers. At the end of May 2005, it was relaunched as a free service and the user numbers started skyrocketing. The growth of MXit since its 2005 launch has been astronomical and can only be attributed to an exceptionally visionary entrepreneur, Herman Heunis. Herman Heunis was able to consider what the future might offer, how this would impact on the business, and which resources and actions would be necessary to prepare for it. Which management skill is apparent in this scenario? Option 1: Strategy skills. Option 2: Planning skills. Option 3: Marketing skills. Option 4: Financial skills.Show the full question
Question 9 · Entrepreneurship · 1 marks
Read the case study and answer questions 8 and 9: In January 2005, MXit was launched as a subscription service, which Heunis knew would not work, but he decided to try anyway. By the end of April 2005 MXit had only 40 subscribers. At the end of May 2005, it was relaunched as a free service and the user numbers started skyrocketing. In order to accommodate their meteoric rise in the user base, MXit continually upgraded their servers. The servers form part of which type of resources of the business? Option 1: human. Option 2: physical. Option 3: financial. Option 4: natural.Show the full question
Question 10 · Entrepreneurship · 1 marks
Read the case study and answer questions 8 and 9: In January 2005, MXit was launched as a subscription service, which Heunis knew would not work, but he decided to try anyway. By the end of April 2005 MXit had only 40 subscribers. At the end of May 2005, it was relaunched as a free service and the user numbers started skyrocketing. Technology forms an important part of almost any business in the modern business world. During the entrepreneurial process, many businesses need to determine whether the technology they require exists and whether they can gain access to it. During which phase of the entrepreneurial process would this decision be made? Option 1: Decision to become an entrepreneur. Option 2: Identifying opportunities and ideas. Option 3: Access to resources. Option 4: Writing a business plan.Show the full question
Question 11 · Entrepreneurship · 1 marks
Read the case study and answer questions 8 and 9: In January 2005, MXit was launched as a subscription service, which Heunis knew would not work, but he decided to try anyway. By the end of April 2005 MXit had only 40 subscribers. At the end of May 2005, it was relaunched as a free service and the user numbers started skyrocketing. Identify which one of the following options represents an advantage of buying an existing business. Option 1: Employees are inherited. Option 2: The image will be difficult to change. Option 3: There will be an established customer base. Option 4: The inventory may be obsolete.Show the full question
Question 12 · Entrepreneurship · 1 marks
Read the case study and answer questions 8 and 9: In January 2005, MXit was launched as a subscription service, which Heunis knew would not work, but he decided to try anyway. By the end of April 2005 MXit had only 40 subscribers. At the end of May 2005, it was relaunched as a free service and the user numbers started skyrocketing. Peter intends to open a cell phone repair business in his rural community. He is currently busy collecting information from local residents that will help him establish whether the business idea will work, including how many people in the area own cell phones and how often they require repair services for their phones. What is the correct business term for the activity Peter is currently undertaking? Option 1: Business study. Option 2: Feasibility study. Option 3: Business analysis. Option 4: Forecasting proposal.Show the full question
Question 13 · Entrepreneurship · 1 marks
Read the case study and answer questions 8 and 9: In January 2005, MXit was launched as a subscription service, which Heunis knew would not work, but he decided to try anyway. By the end of April 2005 MXit had only 40 subscribers. At the end of May 2005, it was relaunched as a free service and the user numbers started skyrocketing. Fill in the blank: ______ skills involve the ability to evaluate the offerings of the business and their features, to determine how they satisfy customers' wants and needs, and to establish why customers find them attractive. Option 1: Planning. Option 2: Strategy. Option 3: Project management. Option 4: Marketing.Show the full question
Question 14 · Establishing a business · 1 marks
This section deals with establishing a business. Considering the legal perspective on selecting a business form, which of the following is identified as the most important consideration: (1) whether the enterprise is able to transfer its shares, (2) whether the enterprise will possess legal personality, (3) the extent of control or management authority the entrepreneur can exercise over the business's activities, or (4) the potential the business has for acquiring capital?Show the full question
Question 15 · Establishing a business · 1 marks
This section deals with establishing a business. MXit is a lifestyle company known for its disruptive technology, offering services such as free instant messaging. In which section of MXit's business plan would you expect to find a description of the company's 'key players', including active investors, the management team, and directors? Choose from: (1) marketing plan, (2) products and/or services, (3) general company description, or (4) management plan.Show the full question
Question 16 · Establishing a business · 1 marks
This section deals with establishing a business. Still considering MXit as a lifestyle company offering free instant messaging among other services, in which section of its business plan would the company's revenue and expense projections be included: (1) the management plan, (2) the operating plan, (3) the general company description, or (4) the financial plan?Show the full question
Question 17 · Establishing a business · 1 marks
This section deals with establishing a business. Lizzy, a writer, has established her own publishing company called Book&Beyond, choosing to register it as a private company. Which of the following statements correctly describes a characteristic of a private company such as Book&Beyond: (1) it must have at least seven shareholders upon registration, (2) its registered name must include the words '(Pty) Ltd', so that the company's name reads 'Book&Beyond (Pty) Ltd', (3) its members will share management and control of the business equally, or (4) choosing this type of enterprise minimises the legal formalities Book&Beyond must comply with?Show the full question
Question 18 · Establishing a business · 1 marks
This section deals with establishing a business. To secure the necessary bank finance and attract investment funds for starting Book&Beyond, Lizzy needs to prepare a particular document. Which one is it: (1) a memorandum of agreement, (2) an article of association, (3) a contract, or (4) a business plan?Show the full question
Question 19 · Establishing a business · 1 marks
This section deals with establishing a business. Transnet (SOC Ltd) serves as an example of which type of company: (1) personal-liability, (2) state-owned, (3) private, or (4) public?Show the full question
Question 20 · Establishing a business · 1 marks
This section deals with establishing a business. From the perspective of customers, why would having a business plan be important for a company? Select the most accurate reason: (1) it assures customers that the business will still exist in three to five years' time, (2) it gives a clear understanding of the venture's mission and objectives, (3) it clarifies the expected return on investment, or (4) it fosters an understanding of the emerging culture of a young business.Show the full question
Question 21 · The business environment · 1 marks
Read the following case scenario: In 2012, Tsogo Sun Gaming and Southern Sun announced that they would consolidate their operating divisions under one name. Southern Sun, which had previously been the umbrella brand for Tsogo Sun's hotel division, and Tsogo Sun Gaming, the group's casino and entertainment division, were incorporated into the Tsogo Sun brand, unifying the company under one name and the 'Sunburst' logo. Based on this scenario, Tsogo Sun's reputation is an example of which of the following in relation to the company?Show the full question
Question 22 · The business environment · 1 marks
Continuing with the Tsogo Sun case scenario described above, note that South Africa has experienced dramatic increases in the fuel price in recent years, which has had a knock-on effect on the prices of food and other commodities. Identify which environment this development forms part of, and what type of influence it has on a business such as Tsogo Sun, by completing the statement: 'This development forms part of the ________ environment and has a/an ________ influence on a business such as Tsogo Sun.'Show the full question
Question 23 · The business environment · 1 marks
Complete the following statement about business environments: 'The current labour laws and the Employment Equity Act 55 of 1998 are examples of variables in the ________ environment that ________ have an influence on the business and the management of businesses.'Show the full question
Question 24 · The business environment · 1 marks
Identify which environment is being described in the following statement: 'In the ________ environment, management identifies, assesses, and takes advantage of opportunities in the market, and develops and adapts its strategies to meet competition.'Show the full question
Question 25 · The business environment · 1 marks
Airlines are starting to appoint more female pilots, something that was unheard of a mere decade ago. This change refers to a shift in which environment? Complete the statement: 'This refers to a change in the ________ environment.'Show the full question
Question 26 · The business environment · 1 marks
Airlines know that if there is a global shortage of fuel, their ticket prices have to increase to accommodate the higher price they will pay for the fuel. Which characteristic of the business environment is being illustrated by this example?Show the full question
Question 27 · The business environment · 1 marks
Complete the following statement: 'The ability to combine resources, people and processes is known as ________, which is part of the ________ environment.'Show the full question
Question 28 · Corporate social responsibility · 1 marks
Which one of the following statements about corporate social investment (CSI) is correct? Option 1: CSI refers to a company's contribution to society through its core business activities. Option 2: CSI refers to a company's contribution through its engagement in public policy. Option 3: CSI is also called corporate philanthropy. Option 4: CSI is synonymous with corporate social responsibility.Show the full question
Question 29 · Corporate social responsibility · 1 marks
Consider the following case scenario: South African Breweries (SAB) is listed on the Johannesburg Stock Exchange, and its parent company, SABMiller, is listed on the London Stock Exchange. As a result, the SABMiller group of companies must comply with corporate governance rules applicable to listed companies in various countries. Although corporate governance is the responsibility of every employee in the company, the structures particularly responsible for corporate governance in the SABMiller group are the Board of Directors, the Executive Committee, the Audit Committee and the Chief Financial Officer. Given that SAB is aware of the damaging effect alcohol can have on its consumers and has implemented various programmes to counteract this, SAB has a social driver behind its CSR programme. This means that SAB is aware that: option 1 - it is desirable for a company to be thought of as socially responsible; option 2 - there is specific legislation encouraging socially responsible behaviour; option 3 - the main advantage is a reduction in costs; option 4 - a decision was made that clearly indicated what was right and what was wrong.Show the full question
Question 30 · Corporate social responsibility · 1 marks
Using the same SAB and SABMiller case scenario (SAB listed on the JSE, parent company SABMiller listed on the London Stock Exchange, with corporate governance handled by the Board of Directors, Executive Committee, Audit Committee and Chief Financial Officer): SAB needs to engage various stakeholders when planning for corporate social responsibility (CSR). Which one of the following stages will typically occur first during the stakeholder-engagement process: planning, preparation, engagement, or evaluation?Show the full question
Question 31 · Corporate social responsibility · 1 marks
Referring again to the SAB and SABMiller case scenario: 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 the issues and culture of the company to be. Which approach would SAB be following in this instance: a values-based system, a stakeholder-engagement process, a combination of both a values-based system and a stakeholder-engagement process, or the corporate governance approach?Show the full question
Question 32 · Corporate social responsibility · 1 marks
A term needs to be identified that refers to the way in which an organisation or group makes decisions about how to manage its affairs. Is this term: social responsibility, corporate social responsibility, sustainability, or corporate governance?Show the full question
Question 33 · Corporate social responsibility · 1 marks
Consider this scenario: Foxy Lady sells fur coats and accessories. The animal activist group PETA has launched a petition against Foxy Lady to stop it from selling furs. PETA has presented a convincing legal argument against the fur trade and has gathered a lot of local support. PETA organises daily mass protests outside the Foxy Lady store, making the store's operations impossible, and has become a high priority and major source of concern for Foxy Lady. PETA can be seen as which type of stakeholder to Foxy Lady: subordinate, active, primary, or secondary?Show the full question
Question 34 · Introduction to general management · 1 marks
Management is described as an integrated process. Consider a scenario where managers motivate their staff and obtain feedback from the employees under their supervision to help them reach their goals, and where these managers also hold regular meetings with both their superiors and their subordinates. Which management activity are these managers engaged in when acting in this way?Show the full question
Question 35 · Introduction to general management · 1 marks
A business's marketing manager will be responsible for developing a particular type of plan because such plans are more specific in focus and concentrate on the people involved and the actions to be taken. Which type of plan is the marketing manager developing?Show the full question
Question 36 · Introduction to general management · 1 marks
Supervisors and foremen belong to a particular level of management within an organisation. Which level of management do supervisors and foremen form part of?Show the full question
Question 37 · Introduction to general management · 1 marks
Tsogo Sun has operated in the hospitality industry for more than 44 years and is currently the leading hotel and entertainment group in Africa. Imagine that you are the CEO of Tsogo Sun. As the CEO, which type of plans would you be responsible for developing at Tsogo Sun?Show the full question
Question 38 · Introduction to general management · 1 marks
Tsogo Sun has operated in the hospitality industry for more than 44 years and is currently the leading hotel and entertainment group in Africa. Still acting as the CEO of Tsogo Sun, you are expected to motivate your employees as well as promote them when they perform well. In carrying out these actions, which type of managerial role are you fulfilling within the business?Show the full question
Question 39 · Introduction to general management · 1 marks
Of the various skills a manager may possess, which one would be regarded as the most important skill for a CEO to have?Show the full question
Question 40 · Introduction to general management · 1 marks
Different schools of thought on management have contributed various insights to the discipline. Which particular school of thought is credited with identifying the six functions of a business?Show the full question
Question 41 · Introduction to general management · 1 marks
Jamie is employed by a pharmaceutical company based in the Eastern Cape, where his main responsibility is to formulate long-term strategic goals and strategic plans. Given this role, which level of management does Jamie belong to?Show the full question
Question 42 · Planning · 1 marks
Tsogo Sun creates and sustains long-term value by focusing on several key pillars, such as satisfying reasonable stakeholder requirements, ensuring financial strength and durability, and keeping its products relevant to the customer experience. A central part of the group's plan for organic growth is developing its casino and hotel real estate. Tsogo Sun invests more than R800 million every year in expanding, refurbishing and maintaining its existing casinos and hotels. Which of the following best describes this kind of activity?Show the full question
Question 43 · Planning · 1 marks
As part of its growth strategy, Tsogo Sun has acquired and revamped hotels that were in financial distress, such as the former Grace Hotel in Rosebank, where the TSG group opened a new five-star deluxe boutique hotel called 54 on Bath in 2012. This gave the group a competitive edge as it boldly moved into a new market. Which corporate strategy has Tsogo Sun adopted in this scenario?Show the full question
Question 44 · Planning · 1 marks
Planning creates a blueprint of an organisation's goals and sets out the plans needed to reach them. Which specific benefit of planning is being described by this statement?Show the full question
Question 45 · Planning · 1 marks
Complete the statement: lower-level managers use ______ goals in order to develop ______ goals.Show the full question
Question 46 · Planning · 1 marks
A goal is said to be ______ when it is realistic but still presents a challenge.Show the full question
Question 47 · Planning · 1 marks
Which ONE of the following statements is an example of a project?Show the full question
Question 48 · Organising · 1 marks
A manager's span of management is determined by which of the following: 1) the number of subordinates who report directly to him; 2) the number of subordinates at lower levels; 3) the number of subordinates on the same level; or 4) the size of the enterprise?Show the full question
Question 49 · Organising · 1 marks
Structure is extremely important at Nike, since it largely determines where management spend their time. Large organisations such as Nike often become overwhelmed with information if the organisational structure is not appropriate. To further improve the current reporting relationships at Nike, a decision was taken to introduce an additional management layer into the Nike hierarchy. Given this, what was the first step Nike had to take in establishing reporting lines when it introduced this additional management layer: did Nike management have to 1) determine the appropriate chain of command; 2) determine who reports to whom; 3) determine the optimal span of management; or 4) determine if managers would be underutilised?Show the full question
Question 50 · Organising · 1 marks
Alex is a manager at a Nike store in Gauteng. He needs to ensure that there is a clear, unbroken line of authority running from the lowest to the highest position in the organisation. Which concept does this describe: 1) chain of command; 2) span of management; 3) scalar principle; or 4) unity of command?Show the full question
Question 51 · Organising · 1 marks
Thabo is a lecturer at Unisa. He contacts the ICT manager to help him set up the self-assessment application on his computer on the myUnisa system. What type of authority does the ICT manager have over Thabo: 1) line; 2) staff; 3) functional; or 4) centralised?Show the full question
Question 52 · Organising · 1 marks
As a business becomes more complex, what happens to its potential span of management: does it become 1) broader; 2) narrower; 3) flatter; or 4) more decentralised?Show the full question
Question 53 · Organising · 1 marks
Which management practice involves continually assigning employees new, challenging tasks so as to increase their opportunities for growth and advancement: 1) Job specialisation; 2) Job enrichment; 3) Job enlargement; or 4) Job rotation?Show the full question
Question 54 · Organising · 1 marks
If South African Breweries (SAB) wants a structure in which specialist project managers can help manage complex projects while still retaining functional specialisation, which organisational structure should SAB use: 1) Functional; 2) Matrix; 3) Location; or 4) Customer?Show the full question
Question 55 · Organising · 1 marks
Referring to the organisational structure described in question 54 that SAB will adopt, what is a main disadvantage of using this structure: 1) divided authority and a serious risk of soured relations between the project and functional executives; 2) managers in each section concentrate their attention almost exclusively on their own products and tend to lose sight of the products of the rest of the business; 3) administrative costs increase because each section has to have its own functional specialists such as market researchers or financial experts; or 4) it is a very basic type of departmentalisation and the specialised knowledge of employees is not used to maximum effect?Show the full question
Question 56 · Leading · 1 marks
Consider the following case scenario: South African-born serial entrepreneur and CEO of Tesla Motors, Inc. and Space X, Elon Musk, has changed the playing field by making his company's intellectual property available in an open source format. As CEO of Tesla Motors, Elon Musk has the ability to influence the behaviour of his employees. Which component of leadership does this ability refer to?Show the full question
Question 57 · Leading · 1 marks
Referring to the same case scenario about Elon Musk and Tesla Motors: if Tesla Motors' supervisors are rewarded by management for meeting their performance goals, which type of power is management making use of in this instance?Show the full question
Question 58 · Leading · 1 marks
Which of the following best describes the concept of social loafing?Show the full question
Question 59 · Leading · 1 marks
In a global business world that is plagued by corporate scandals, which leadership approach is becoming increasingly crucial?Show the full question
Question 60 · Leading · 1 marks
Chris motivates his employees by appealing to their self-interest: he pays them and promotes them based on their work efforts. Chris is an example of which type of leader?Show the full question
Question 61 · Leading · 1 marks
The executive dean at the College of Economic and Management Sciences decides to appoint a committee made up of staff members from the ICT department as well as junior and senior academics from each department, in order to investigate the efficiency and usability of the myUnisa system as a viable ICT system. Once the project is completed, the group will disband. This is an example of which type of group, and which broader category of group does it fall under?Show the full question
Question 62 · Leading · 1 marks
Edcon's monthly Club magazine has a readership of 5.8 million. The Club magazine is used to communicate with account holders, conveying not only special offers but also important account information. Within the communication model, what role do the account holders play?Show the full question
Question 63 · Control · 1 marks
Identify which pair of words correctly completes the statement that the hallmarks of a sound, effective control system are ___ and ___.Show the full question
Question 64 · Control · 1 marks
Maria Ramos and her management team at Transnet have had to deal with two major problems during the company's transformation. In a presentation she identified four key issues, two of which relate to controlling human resources and two to controlling financial resources; the financial concerns she raised included weak financial performance and weak financial controls. Given this, identify in which step of the control process Maria Ramos would have gathered data in order to quantify activities and produce dependable reports on the company's performance.Show the full question
Question 65 · Control · 1 marks
Continuing with the Transnet scenario involving Maria Ramos, the human resources problem she identified included low staff morale and insufficient investment in human capital. Determine which of the following tools Transnet could use to control its human resources.Show the full question
Question 66 · Control · 1 marks
There is an unwritten rule of effective control stating that a control system should not be made so intricate that putting it into practice costs more than the benefits it produces. Name the characteristic of an effective control system being described here.Show the full question
Question 67 · Control · 1 marks
Suppose MTN decides to undertake economic forecasting as part of its planning activities. Identify which area of control this activity would fall under.Show the full question
Question 68 · Control · 1 marks
Complete the statement: when a company uses the ___ system, stock items are only ordered when they are actually required, which removes the expense of holding inventory for long periods of time.Show the full question
Question 69 · Control · 1 marks
Suppose Thembi wanted to concentrate on the revenue side of her cosmetics business. Identify which type of budget she would use for this purpose.Show the full question
Question 70 · Control · 1 marks
To support and complement the budgeting process, management can apply financial control by making use of ___. Identify the correct tool from the options given.Show the full question
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