MNB1601 May/Jun 2018 exam paper — questions

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  1. Question 1 · Operations management · 1 marks

    Questions 1 to 9 are based on an extract from the business case 'Operations management: Air traffic operations excellence'. The extract states that a revamp and extension of a new terminal building, worth R2.2 billion, is a significant milestone realising the vision of a truly international airport. The new, multi-level terminal links the original domestic and international terminals and therefore improves passenger experience and orientation. Based on the air traffic operations excellence case, the new multi-level terminal links the original domestic and international terminals, thereby improving passenger experience and orientation. In terms of the transformation model, the multi-level terminal represents a blank space followed by another blank space describing what it does. Select the correct pair of words to complete: 'the multi-level terminal represents ___ which ___'.Show the full question

  2. Question 2 · Operations management · 1 marks

    Questions 1 to 9 are based on an extract from the business case 'Operations management: Air traffic operations excellence'. The extract states that a revamp and extension of a new terminal building, worth R2.2 billion, is a significant milestone realising the vision of a truly international airport. The new, multi-level terminal links the original domestic and international terminals and therefore improves passenger experience and orientation. Airports and airlines are regarded mainly as service providers. Identify which one of the following is a characteristic of a service produced by such a service provider.Show the full question

  3. Question 3 · Operations management · 1 marks

    Questions 1 to 9 are based on an extract from the business case 'Operations management: Air traffic operations excellence'. The extract states that a revamp and extension of a new terminal building, worth R2.2 billion, is a significant milestone realising the vision of a truly international airport. The new, multi-level terminal links the original domestic and international terminals and therefore improves passenger experience and orientation. According to the transformation model, passengers are regarded as customers/clients, and customers represent inputs seen as resources to be transformed during the transformation process. Determine which one of the following would also constitute an input to be transformed during this transformation process.Show the full question

  4. Question 4 · Operations management · 1 marks

    Questions 1 to 9 are based on an extract from the business case 'Operations management: Air traffic operations excellence'. The extract states that a revamp and extension of a new terminal building, worth R2.2 billion, is a significant milestone realising the vision of a truly international airport. The new, multi-level terminal links the original domestic and international terminals and therefore improves passenger experience and orientation. During construction of the new multi-level terminal, it was essential that the project be completed error-free. Providing error-free services that are ready and suitable for consumption by customers gives the business a quality advantage. Identify which operations-management performance objective/guideline this describes.Show the full question

  5. Question 5 · Operations management · 1 marks

    Questions 1 to 9 are based on an extract from the business case 'Operations management: Air traffic operations excellence'. The extract states that a revamp and extension of a new terminal building, worth R2.2 billion, is a significant milestone realising the vision of a truly international airport. The new, multi-level terminal links the original domestic and international terminals and therefore improves passenger experience and orientation. The new multi-level terminal links the original domestic and international terminals, improving passenger experience and orientation. By implication, the new terminal would also be able to service more passengers, more efficiently. Determine which characteristic of output this describes.Show the full question

  6. Question 6 · Operations management · 1 marks

    Questions 1 to 9 are based on an extract from the business case 'Operations management: Air traffic operations excellence'. The extract states that a revamp and extension of a new terminal building, worth R2.2 billion, is a significant milestone realising the vision of a truly international airport. The new, multi-level terminal links the original domestic and international terminals and therefore improves passenger experience and orientation. The revamp and extension of the new terminal building would be classified as a project process. Identify which of the following correctly completes the statement: 'it represents an operational process ___'.Show the full question

  7. Question 7 · Operations management · 1 marks

    Questions 1 to 9 are based on an extract from the business case 'Operations management: Air traffic operations excellence'. The extract states that a revamp and extension of a new terminal building, worth R2.2 billion, is a significant milestone realising the vision of a truly international airport. The new, multi-level terminal links the original domestic and international terminals and therefore improves passenger experience and orientation. All products and services consist of three interdependent components: a concept, a package and a process. Determine which of the following correctly describes the 'concept' component.Show the full question

  8. Question 8 · Operations management · 1 marks

    Questions 1 to 9 are based on an extract from the business case 'Operations management: Air traffic operations excellence'. The extract states that a revamp and extension of a new terminal building, worth R2.2 billion, is a significant milestone realising the vision of a truly international airport. The new, multi-level terminal links the original domestic and international terminals and therefore improves passenger experience and orientation. Arrange the following three steps for the layout and flow of a manufacturing/service provision facility into their correct order: (a) selecting the basic layout type, (b) detail design of the layout, (c) selecting the process type. Choose the option showing the correct sequence.Show the full question

  9. Question 9 · Operations management · 1 marks

    Questions 1 to 9 are based on an extract from the business case 'Operations management: Air traffic operations excellence'. The extract states that a revamp and extension of a new terminal building, worth R2.2 billion, is a significant milestone realising the vision of a truly international airport. The new, multi-level terminal links the original domestic and international terminals and therefore improves passenger experience and orientation. During the design of products and services, determine at what point the final design and specifications of the product or service will be compiled.Show the full question

  10. Question 10 · Operations management · 1 marks

    Questions 1 to 9 are based on an extract from the business case 'Operations management: Air traffic operations excellence'. The extract states that a revamp and extension of a new terminal building, worth R2.2 billion, is a significant milestone realising the vision of a truly international airport. The new, multi-level terminal links the original domestic and international terminals and therefore improves passenger experience and orientation. The different processes required to manufacture the new Toyota Prius are arranged in consecutive order, with the layout adapted specifically to the Prius. Identify which layout type this describes.Show the full question

  11. Question 11 · Operations management · 1 marks

    Questions 1 to 9 are based on an extract from the business case 'Operations management: Air traffic operations excellence'. The extract states that a revamp and extension of a new terminal building, worth R2.2 billion, is a significant milestone realising the vision of a truly international airport. The new, multi-level terminal links the original domestic and international terminals and therefore improves passenger experience and orientation. Reconciling the supply of products or services with the demand for them occurs in terms of three dimensions: volume, timing and a third dimension. Identify the missing third dimension.Show the full question

  12. Question 12 · Operations management · 1 marks

    Questions 1 to 9 are based on an extract from the business case 'Operations management: Air traffic operations excellence'. The extract states that a revamp and extension of a new terminal building, worth R2.2 billion, is a significant milestone realising the vision of a truly international airport. The new, multi-level terminal links the original domestic and international terminals and therefore improves passenger experience and orientation. Rachel works for a domestic cleaning agency called Busy Bee's Cleaning. She needs to determine the maximum level of value-added activity that their cleaners can achieve under normal operating circumstances in a day. Identify which aspect of the operations process Rachel is determining.Show the full question

  13. Question 13 · Operations management · 1 marks

    Questions 1 to 9 are based on an extract from the business case 'Operations management: Air traffic operations excellence'. The extract states that a revamp and extension of a new terminal building, worth R2.2 billion, is a significant milestone realising the vision of a truly international airport. The new, multi-level terminal links the original domestic and international terminals and therefore improves passenger experience and orientation. Rachel, from Busy Bee's Cleaning, realises that just before the holiday season, demand for their cleaning services picks up. To capitalise on this increase in demand, she arranges for more part-time cleaners during these high-peak seasons. Identify which type of capacity plan Rachel is using.Show the full question

  14. Question 14 · Operations management · 1 marks

    Questions 1 to 9 are based on an extract from the business case 'Operations management: Air traffic operations excellence'. The extract states that a revamp and extension of a new terminal building, worth R2.2 billion, is a significant milestone realising the vision of a truly international airport. The new, multi-level terminal links the original domestic and international terminals and therefore improves passenger experience and orientation. Quality planning and control can be divided into six steps. Identify which one of the following options represents the second step in this process.Show the full question

  15. Question 15 · Human resource management · 1 marks

    An extract from the case 'Human resource management: Derby Departmental Stores' explains that when filling lower-level and entry-level jobs, the HR department used the local private recruitment agency closest to the Derby store, and instructed these agencies to recruit only people living within a 50 kilometre radius of the store in question. Based on this, it is clear that Derby Departmental Stores follows a well-defined recruitment policy for these posts. The question asks: what is the express purpose of recruiting? Choose the correct option: (1) forecasting the expected growth or shrinkage of the business in view of likely economic developments; (2) ensuring that a sufficient number of applicants apply for the various jobs in the business as and when required; (3) determining whether there are sufficient opportunities in the labour market; or (4) making provision for active recruiting campaigns where the need for intensive training programmes is emphasised.Show the full question

  16. Question 16 · Human resource management · 1 marks

    Referring again to the Derby Departmental Stores case, HR's practice of using the local private recruitment agency closest to the Derby store to fill lower-level and entry-level vacancies is described. This practice is an example of which of the following: (1) recruitment from the inside; (2) internal recruiting; (3) external recruiting; or (4) active recruitment?Show the full question

  17. Question 17 · Human resource management · 1 marks

    Still using the Derby Departmental Stores scenario, the requirement that only candidates living within a 50 kilometre radius will be accepted can be verified during a specific phase of the talent selection process. During which phase can this specification be checked: (1) on-boarding; (2) final selection; (3) intensive assessment; or (4) application and shortlisting?Show the full question

  18. Question 18 · Human resource management · 1 marks

    Coca-Cola pays its employees a salary. According to Maslow's hierarchy of needs, which specific category of needs does this salary satisfy: (1) physiological needs; (2) safety and security needs; (3) esteem needs; or (4) self-actualisation needs?Show the full question

  19. Question 19 · Human resource management · 1 marks

    Catherine is the human resource manager at Sparta Training Academy and firmly believes in Alderfer's ERG theory as an explanation of employee motivation. According to Alderfer, which type of needs concern a person's desire for interpersonal relationships and interaction: (1) existence needs; (2) relatedness needs; (3) growth needs; or (4) none of these, as this is not one of the needs Alderfer defined?Show the full question

  20. Question 20 · Human resource management · 1 marks

    Which motivation theory holds that needs are learnt and reinforced over time, rather than being primary and instinctive: (1) McClelland's theory of needs; (2) Herzberg's two-factor theory; (3) Alderfer's ERG theory; or (4) Maslow's hierarchy of needs?Show the full question

  21. Question 21 · Human resource management · 1 marks

    Employees tend to be better motivated when they are personally involved in decisions about the career options available to them, compared to when they are excluded from such decisions. This principle lies at the core of which employee motivational strategy: (1) empowerment programmes; (2) training and education; (3) job design; or (4) career management?Show the full question

  22. Question 22 · Human resource management · 1 marks

    Nedine works at a company that manufactures custom-made doors and windows. She has noticed that the carpenters employed there are taking longer to produce items than the industry-standard time, and after investigating, she concludes that they lack motivation. To address this, Nedine decides to use the expectancy theory as the basis for improving staff motivation. Which of the following is an assumption underlying the expectancy theory: (1) behaviour is a combination of forces controlled by the organisation and the environment; (2) the organisation will make decisions regarding behaviour on behalf of its employees; (3) different people have different needs, goals and desires; or (4) people tend to act unpredictably and behaviour cannot be predicted, irrespective of certain expectations?Show the full question

  23. Question 23 · Human resource management · 1 marks

    As part of her new 'motivation improvement plan', Nedine decides to award a cost-of-living adjustment to all employees so that their salaries keep pace with the inflation rate. This adjustment is an example of which type of compensation: (1) reward; (2) indirect compensation; (3) direct compensation; or (4) amendments?Show the full question

  24. Question 24 · Human resource management · 1 marks

    Nedine also decides to change the development methods used to train carpenters. She introduces an intensive programme in which an instructor demonstrates the correct processes to be followed on the same type of machinery the carpenters will use on the job. This training approach is an example of which method: (1) role playing; (2) vestibules; (3) e-learning; or (4) seminars?Show the full question

  25. Question 25 · Human resource management · 1 marks

    The Human Resource (HR) Manager of a travel company wants to find out what Reservation Managers employed at other companies are paid by way of compensation. To gather this information, the HR manager must conduct a certain activity, and this activity forms part of a broader first step in deciding on compensation. Complete both blanks correctly by choosing from: (1) factor comparison, and this being part of an external comparison; (2) salary survey, and this being part of an external comparison; (3) factor comparison, and this being part of a job description; or (4) salary survey, and this being part of a job evaluation.Show the full question

  26. Question 26 · Human resource management · 1 marks

    During 2014, SANParks appointed a new CEO, Mr Fundisile Mketeni. Mr Mketeni needed to possess certain personal qualifications in order to perform the duties and responsibilities set out in the job description for the role. This description of the personal qualifications required is known as: (1) a job description; (2) a job analysis; (3) a job specification; or (4) human resource forecasting.Show the full question

  27. Question 27 · Human resource management · 1 marks

    Feedback should form part of performance appraisals. When giving feedback, on which of the following should the appraiser focus: (1) using real-life situations as examples of desirable behaviour; (2) focusing feedback on behaviour, not on the person; (3) giving feedback on both controllable and uncontrollable behaviour; or (4) giving as much feedback as possible, even if the employee cannot process it all?Show the full question

  28. Question 28 · Human resource management · 1 marks

    Clive is the HR manager of Active Wear, a sport clothing manufacturer, and one of his responsibilities is to carry out human resource planning for the company. Which of the following represents the second phase Clive must complete in the human resource planning process: (1) giving a summary of the job and a brief description of each main task; (2) describing the personal qualifications an employee must possess in order to perform the duties and responsibilities; (3) describing and recording information about job behaviours and activities; or (4) conducting regular forecasts of the quantity and quality of employees who will be needed in the future?Show the full question

  29. Question 29 · Marketing management · 1 marks

    An extract from the business case 'Marketing management: Heineken and SABMiller's beer war' states that, according to SABMiller, it has not done enough to appeal to women through its previous advertising campaigns, so it is developing lighter beers and non-alcoholic fruit-flavoured variants to exploit the shift in drinking habits and appeal to more health-conscious drinkers. By dividing consumers into gender classifications such as male and female, SABMiller is making use of which type of segmentation?Show the full question

  30. Question 30 · Marketing management · 1 marks

    Referring to the same SABMiller extract, the brewer is making a deliberate effort to appeal to more health-conscious drinkers, meaning its marketing approach places emphasis on what the consumer needs. Which principle of the marketing concept does this illustrate?Show the full question

  31. Question 31 · Marketing management · 1 marks

    Which term is best defined as creating a need-satisfying product or service?Show the full question

  32. Question 32 · Marketing management · 1 marks

    Consider the following case study. Dumisani owns a company called Knowledge Uncapped that conducts marketing research for local businesses. One of its long-standing clients, Joe's Gym, has approached Dumisani to determine which equipment its clients would prefer to have access to at the gym. Joe and his team of fitness experts have noticed that many clients have cancelled their contracts with Joe's Gym to join a new, modern gym across the street. To retain his clients, Joe wants to upgrade his equipment, but first needs to find out what his clients want. To gather this information, Dumisani will need to compile a document that asks respondents a set of questions and is used to generate the data required to meet the research objectives. What is this document called?Show the full question

  33. Question 33 · Marketing management · 1 marks

    Referring to the same Dumisani/Joe's Gym case study, during which step of conducting a survey will Dumisani make sure that all of the questions address the issue under investigation?Show the full question

  34. Question 34 · Marketing management · 1 marks

    Still referring to the Dumisani/Joe's Gym case study, during which step of conducting a survey will Joe put into practice the final decisions that were reached based on the conclusions drawn from the initial questionnaire and the evaluation of the results?Show the full question

  35. Question 35 · Marketing management · 1 marks

    Angie has joined the social club at her workplace. She hopes that becoming a member will lead to her being accepted by her colleagues and included in social functions. The social club can be regarded as which type of group?Show the full question

  36. Question 36 · Marketing management · 1 marks

    Amanda wants to buy a microwave oven but is not at all knowledgeable about the different kinds available. She visits several stores, including Pick n Pay, Checkers and Makro, and compares various brands in terms of their suitability, quality, features and price. What type of products are microwave ovens classified as in this scenario?Show the full question

  37. Question 37 · Marketing management · 1 marks

    Mercedes-Benz offers consumers the following vehicle options: passenger cars, delivery vehicles, SUVs and heavy transport vehicles. What does this illustrate about Mercedes-Benz's product offering?Show the full question

  38. Question 38 · Marketing management · 1 marks

    The distinctive triangular boxes used for Toblerone Swiss Chocolates create an image of exclusivity and distinguish the chocolates from competitors on grocery store shelves. Which type of packaging is Toblerone using for its chocolates?Show the full question

  39. Question 39 · Marketing management · 1 marks

    KFC operates within the quick service restaurant industry, meaning customers no longer need to sit down to eat breakfast as they would at Wimpy; instead they can get breakfast on the go through convenient drive-thrus. KFC is differentiating its breakfast product from Wimpy's breakfast product on which basis?Show the full question

  40. Question 40 · Marketing management · 1 marks

    During its first week of operations, the low-cost airline Mango sold flights at the low price of R169 per one-way ticket. Which pricing adaptation did Mango use when it launched its flights?Show the full question

  41. Question 41 · Marketing management · 1 marks

    During which stage of the decision-making process do consumers recall information they already have or collect relevant information from external sources?Show the full question

  42. Question 42 · Marketing management · 1 marks

    External customers all have different wants, but they share five basic needs. Which one of the following is NOT considered a basic need of an external customer?Show the full question

  43. Question 43 · Financial management · 1 marks

    This section covers Financial Management. Two discounting-factor tables are supplied for the section: the present-value factors (for periods 1-6) are 0.9524, 0.9070, 0.8638, 0.8227, 0.7835, 0.7462 at 5%; 0.9091, 0.8264, 0.7513, 0.6830, 0.6209, 0.5645 at 10%; and 0.8696, 0.7561, 0.6575, 0.5718, 0.4972, 0.4323 at 15%. The future-value factors (for periods 1-6) are 1.0500, 1.1025, 1.1576, 1.2155, 1.2763, 1.3401 at 5%; 1.1000, 1.2100, 1.3310, 1.4641, 1.6105, 1.7716 at 10%; and 1.1500, 1.3225, 1.5209, 1.7490, 2.0114, 2.3131 at 15%. These factors should be used wherever needed in this section. An extract from a business case titled 'Financial management: IBM' shows IBM's latest financial highlights for 2010 compared with 2009: revenue of $99 870 (2010) versus $95 758 (2009); net income of $14 833 versus $13 425; earnings per share of common stock of $11.69 versus $10.12; market capitalisation of $180 220 versus $170 869; stock price per common share of $146.76 versus $130.90; and 426 751 employees versus 399 400. Given that IBM increased its earnings per share of common stock in 2010 to $11.69, which one of the following strategies would have made it possible to improve the earnings per share?Show the full question

  44. Question 44 · Financial management · 1 marks

    This section covers Financial Management. Two discounting-factor tables are supplied for the section: the present-value factors (for periods 1-6) are 0.9524, 0.9070, 0.8638, 0.8227, 0.7835, 0.7462 at 5%; 0.9091, 0.8264, 0.7513, 0.6830, 0.6209, 0.5645 at 10%; and 0.8696, 0.7561, 0.6575, 0.5718, 0.4972, 0.4323 at 15%. The future-value factors (for periods 1-6) are 1.0500, 1.1025, 1.1576, 1.2155, 1.2763, 1.3401 at 5%; 1.1000, 1.2100, 1.3310, 1.4641, 1.6105, 1.7716 at 10%; and 1.1500, 1.3225, 1.5209, 1.7490, 2.0114, 2.3131 at 15%. These factors should be used wherever needed in this section. Using the same IBM financial highlights extract (2010 revenue of $99 870, net income $14 833, earnings per share $11.69, market capitalisation $180 220, stock price per common share $146.76, and 426 751 employees, compared with 2009 figures of $95 758, $13 425, $10.12, $170 869, $130.90 and 399 400 respectively), the paper states that IBM recorded a net income of $99 870 for 2010. The income of a business primarily consists of receipts resulting from which of the following?Show the full question

  45. Question 45 · Financial management · 1 marks

    This section covers Financial Management. Two discounting-factor tables are supplied for the section: the present-value factors (for periods 1-6) are 0.9524, 0.9070, 0.8638, 0.8227, 0.7835, 0.7462 at 5%; 0.9091, 0.8264, 0.7513, 0.6830, 0.6209, 0.5645 at 10%; and 0.8696, 0.7561, 0.6575, 0.5718, 0.4972, 0.4323 at 15%. The future-value factors (for periods 1-6) are 1.0500, 1.1025, 1.1576, 1.2155, 1.2763, 1.3401 at 5%; 1.1000, 1.2100, 1.3310, 1.4641, 1.6105, 1.7716 at 10%; and 1.1500, 1.3225, 1.5209, 1.7490, 2.0114, 2.3131 at 15%. These factors should be used wherever needed in this section. Balls Galore, a tennis ball manufacturing company, produced 2 500 units which were sold at R17 per unit. At the end of its financial year, its financial statements reflected the following costs: salaries of R10 000, factory rent of R15 000, materials of R7 500, and depreciation of R5 000. Which one of these four costs cannot be classified as a fixed cost?Show the full question

  46. Question 46 · Financial management · 1 marks

    This section covers Financial Management. Two discounting-factor tables are supplied for the section: the present-value factors (for periods 1-6) are 0.9524, 0.9070, 0.8638, 0.8227, 0.7835, 0.7462 at 5%; 0.9091, 0.8264, 0.7513, 0.6830, 0.6209, 0.5645 at 10%; and 0.8696, 0.7561, 0.6575, 0.5718, 0.4972, 0.4323 at 15%. The future-value factors (for periods 1-6) are 1.0500, 1.1025, 1.1576, 1.2155, 1.2763, 1.3401 at 5%; 1.1000, 1.2100, 1.3310, 1.4641, 1.6105, 1.7716 at 10%; and 1.1500, 1.3225, 1.5209, 1.7490, 2.0114, 2.3131 at 15%. These factors should be used wherever needed in this section. Using the same Balls Galore scenario (2 500 units produced and sold at R17 each, with costs of R10 000 salaries, R15 000 factory rent, R7 500 materials and R5 000 depreciation), what is the profit or loss made by Balls Galore?Show the full question

  47. Question 47 · Financial management · 1 marks

    This section covers Financial Management. Two discounting-factor tables are supplied for the section: the present-value factors (for periods 1-6) are 0.9524, 0.9070, 0.8638, 0.8227, 0.7835, 0.7462 at 5%; 0.9091, 0.8264, 0.7513, 0.6830, 0.6209, 0.5645 at 10%; and 0.8696, 0.7561, 0.6575, 0.5718, 0.4972, 0.4323 at 15%. The future-value factors (for periods 1-6) are 1.0500, 1.1025, 1.1576, 1.2155, 1.2763, 1.3401 at 5%; 1.1000, 1.2100, 1.3310, 1.4641, 1.6105, 1.7716 at 10%; and 1.1500, 1.3225, 1.5209, 1.7490, 2.0114, 2.3131 at 15%. These factors should be used wherever needed in this section. Which one of the following items is an element that forms part of the cash budget?Show the full question

  48. Question 48 · Financial management · 1 marks

    This section covers Financial Management. Two discounting-factor tables are supplied for the section: the present-value factors (for periods 1-6) are 0.9524, 0.9070, 0.8638, 0.8227, 0.7835, 0.7462 at 5%; 0.9091, 0.8264, 0.7513, 0.6830, 0.6209, 0.5645 at 10%; and 0.8696, 0.7561, 0.6575, 0.5718, 0.4972, 0.4323 at 15%. The future-value factors (for periods 1-6) are 1.0500, 1.1025, 1.1576, 1.2155, 1.2763, 1.3401 at 5%; 1.1000, 1.2100, 1.3310, 1.4641, 1.6105, 1.7716 at 10%; and 1.1500, 1.3225, 1.5209, 1.7490, 2.0114, 2.3131 at 15%. These factors should be used wherever needed in this section. Paul owns a sport store that specialises in extreme sports such as paragliding and wakeboarding. To encourage customers to spend more, he has recently introduced store credit, subject to approval. Which one of the following represents a cost of granting credit that Paul needs to be aware of?Show the full question

  49. Question 49 · Financial management · 1 marks

    This section covers Financial Management. Two discounting-factor tables are supplied for the section: the present-value factors (for periods 1-6) are 0.9524, 0.9070, 0.8638, 0.8227, 0.7835, 0.7462 at 5%; 0.9091, 0.8264, 0.7513, 0.6830, 0.6209, 0.5645 at 10%; and 0.8696, 0.7561, 0.6575, 0.5718, 0.4972, 0.4323 at 15%. The future-value factors (for periods 1-6) are 1.0500, 1.1025, 1.1576, 1.2155, 1.2763, 1.3401 at 5%; 1.1000, 1.2100, 1.3310, 1.4641, 1.6105, 1.7716 at 10%; and 1.1500, 1.3225, 1.5209, 1.7490, 2.0114, 2.3131 at 15%. These factors should be used wherever needed in this section. The net present value (NPV) technique helps a company decide whether to pursue a particular investment opportunity. If a large shopping mall project produces an NPV of 1 340, which one of the following describes the correct decision criteria to apply?Show the full question

  50. Question 50 · Financial management · 1 marks

    This section covers Financial Management. Two discounting-factor tables are supplied for the section: the present-value factors (for periods 1-6) are 0.9524, 0.9070, 0.8638, 0.8227, 0.7835, 0.7462 at 5%; 0.9091, 0.8264, 0.7513, 0.6830, 0.6209, 0.5645 at 10%; and 0.8696, 0.7561, 0.6575, 0.5718, 0.4972, 0.4323 at 15%. The future-value factors (for periods 1-6) are 1.0500, 1.1025, 1.1576, 1.2155, 1.2763, 1.3401 at 5%; 1.1000, 1.2100, 1.3310, 1.4641, 1.6105, 1.7716 at 10%; and 1.1500, 1.3225, 1.5209, 1.7490, 2.0114, 2.3131 at 15%. These factors should be used wherever needed in this section. Mohammad owns a gourmet ice-cream shop in Durban that has just opened ahead of the December holidays. He has secured financing for his opening inventory from Vivoli Gelato, which has agreed to supply R20 000 worth of ice-cream for the store in exchange for a R10 000 down payment, with the remaining balance due within 30 days. Which source of financing for small businesses does this arrangement illustrate?Show the full question

  51. Question 51 · Financial management · 1 marks

    This section covers Financial Management. Two discounting-factor tables are supplied for the section: the present-value factors (for periods 1-6) are 0.9524, 0.9070, 0.8638, 0.8227, 0.7835, 0.7462 at 5%; 0.9091, 0.8264, 0.7513, 0.6830, 0.6209, 0.5645 at 10%; and 0.8696, 0.7561, 0.6575, 0.5718, 0.4972, 0.4323 at 15%. The future-value factors (for periods 1-6) are 1.0500, 1.1025, 1.1576, 1.2155, 1.2763, 1.3401 at 5%; 1.1000, 1.2100, 1.3310, 1.4641, 1.6105, 1.7716 at 10%; and 1.1500, 1.3225, 1.5209, 1.7490, 2.0114, 2.3131 at 15%. These factors should be used wherever needed in this section. A particular category of financing consists of unsecured loans that are not freely negotiable, where the name of the lender and the credit conditions are recorded. Which term describes this category of financing?Show the full question

  52. Question 52 · Financial management · 1 marks

    This section covers Financial Management. Two discounting-factor tables are supplied for the section: the present-value factors (for periods 1-6) are 0.9524, 0.9070, 0.8638, 0.8227, 0.7835, 0.7462 at 5%; 0.9091, 0.8264, 0.7513, 0.6830, 0.6209, 0.5645 at 10%; and 0.8696, 0.7561, 0.6575, 0.5718, 0.4972, 0.4323 at 15%. The future-value factors (for periods 1-6) are 1.0500, 1.1025, 1.1576, 1.2155, 1.2763, 1.3401 at 5%; 1.1000, 1.2100, 1.3310, 1.4641, 1.6105, 1.7716 at 10%; and 1.1500, 1.3225, 1.5209, 1.7490, 2.0114, 2.3131 at 15%. These factors should be used wherever needed in this section. Mosibudi is passionate about the South African motor industry and likes to invest his discretionary funds in the sector by buying shares. He has recently purchased shares from a well-known car dealership that give him preferential claims on profit after tax, as well as preferential claims on any of the business's assets should it be liquidated. What type of shares did Mosibudi buy?Show the full question

  53. Question 53 · Financial management · 1 marks

    This section covers Financial Management. Two discounting-factor tables are supplied for the section: the present-value factors (for periods 1-6) are 0.9524, 0.9070, 0.8638, 0.8227, 0.7835, 0.7462 at 5%; 0.9091, 0.8264, 0.7513, 0.6830, 0.6209, 0.5645 at 10%; and 0.8696, 0.7561, 0.6575, 0.5718, 0.4972, 0.4323 at 15%. The future-value factors (for periods 1-6) are 1.0500, 1.1025, 1.1576, 1.2155, 1.2763, 1.3401 at 5%; 1.1000, 1.2100, 1.3310, 1.4641, 1.6105, 1.7716 at 10%; and 1.1500, 1.3225, 1.5209, 1.7490, 2.0114, 2.3131 at 15%. These factors should be used wherever needed in this section. Suren is the financial manager of Exiplex, a company that manufactures Plexiglas for industrial use. Because Exiplex relies on large and expensive machinery during production, one of Suren's main responsibilities is to ensure there is enough finance available for this machinery. Suren prefers to use long-term funds to finance temporary current-asset requirements, since this is regarded as less risky. What type of short-term financing approach does Suren use at Exiplex?Show the full question

  54. Question 54 · Financial management · 1 marks

    This section covers Financial Management. Two discounting-factor tables are supplied for the section: the present-value factors (for periods 1-6) are 0.9524, 0.9070, 0.8638, 0.8227, 0.7835, 0.7462 at 5%; 0.9091, 0.8264, 0.7513, 0.6830, 0.6209, 0.5645 at 10%; and 0.8696, 0.7561, 0.6575, 0.5718, 0.4972, 0.4323 at 15%. The future-value factors (for periods 1-6) are 1.0500, 1.1025, 1.1576, 1.2155, 1.2763, 1.3401 at 5%; 1.1000, 1.2100, 1.3310, 1.4641, 1.6105, 1.7716 at 10%; and 1.1500, 1.3225, 1.5209, 1.7490, 2.0114, 2.3131 at 15%. These factors should be used wherever needed in this section. A particular banking arrangement allows a business to make payments from a cheque account even when this exceeds the balance held in that account. What is this arrangement called?Show the full question

  55. Question 55 · Financial management · 1 marks

    This section covers Financial Management. Two discounting-factor tables are supplied for the section: the present-value factors (for periods 1-6) are 0.9524, 0.9070, 0.8638, 0.8227, 0.7835, 0.7462 at 5%; 0.9091, 0.8264, 0.7513, 0.6830, 0.6209, 0.5645 at 10%; and 0.8696, 0.7561, 0.6575, 0.5718, 0.4972, 0.4323 at 15%. The future-value factors (for periods 1-6) are 1.0500, 1.1025, 1.1576, 1.2155, 1.2763, 1.3401 at 5%; 1.1000, 1.2100, 1.3310, 1.4641, 1.6105, 1.7716 at 10%; and 1.1500, 1.3225, 1.5209, 1.7490, 2.0114, 2.3131 at 15%. These factors should be used wherever needed in this section. Mandla works for Money Matters, a large financial institution that offers various financial services to businesses. Mandla is responsible for one of these services, in which he acts as an intermediary between savers—businesses with excess funds—and businesses experiencing a shortage of funds, within the financial market. Which financial service is Mandla responsible for?Show the full question

  56. Question 56 · Financial management · 1 marks

    This section covers Financial Management. Two discounting-factor tables are supplied for the section: the present-value factors (for periods 1-6) are 0.9524, 0.9070, 0.8638, 0.8227, 0.7835, 0.7462 at 5%; 0.9091, 0.8264, 0.7513, 0.6830, 0.6209, 0.5645 at 10%; and 0.8696, 0.7561, 0.6575, 0.5718, 0.4972, 0.4323 at 15%. The future-value factors (for periods 1-6) are 1.0500, 1.1025, 1.1576, 1.2155, 1.2763, 1.3401 at 5%; 1.1000, 1.2100, 1.3310, 1.4641, 1.6105, 1.7716 at 10%; and 1.1500, 1.3225, 1.5209, 1.7490, 2.0114, 2.3131 at 15%. These factors should be used wherever needed in this section. Adventure Trails offers city dwellers an ideal adventure escape from its large estate near Hartbeespoort Dam, providing various adrenaline-fuelled activities. The manager, Glen, wants to expand the range of activities and has asked for advice in choosing between two possible projects, both of which will use a 10% interest rate: constructing a bungee jump slide, requiring an initial investment of R21 000 with net cash flows of R3 800 in year 1, R4 200 in year 2, R5 300 in year 3 and R6 900 in year 4; and developing an obstacle course, requiring an initial investment of R12 000 with net cash flows of R2 800 in year 1, R3 200 in year 2, R4 600 in year 3 and R5 900 in year 4. Using the present-value discounting factors provided for the section, calculate the Net Present Value for the bungee jump slide and for the obstacle course, and select the option giving both values correctly (bungee jump NPV first, obstacle course NPV second).Show the full question

  57. Question 57 · Purchasing and supply management · 1 marks

    Read the extract taken from the business case 'Purchasing and supply chain management: Toyota': The global automotive industry is the largest manufacturing sector in the world, with industry output equivalent to the world's sixth largest economy. It draws on a wide range of supplier industries, from raw materials (such as steel, aluminium, plastics and chemicals) through to sophisticated component assemblies, tooling, design and engineering services. Given that the global automotive industry is the largest manufacturing sector in the world, it follows that the purchasing and supply management function becomes increasingly important for automotive manufacturers such as Toyota. Identify which one of the listed options represents a factor that will determine the importance of the purchasing and supply function within an organisation.Show the full question

  58. Question 58 · Purchasing and supply management · 1 marks

    Continuing with the Toyota extract about the automotive industry drawing on a wide range of supplier industries (from raw materials through to sophisticated component assemblies, tooling, design and engineering services): because savings in purchasing costs make up a major portion of an automotive manufacturer's total cost, such savings produce a greater profit potential than an equivalent increase in sales. Identify the term used to describe this phenomenon.Show the full question

  59. Question 59 · Purchasing and supply management · 1 marks

    Still referring to the Toyota case, since the automotive industry draws on a wide range of supplier industries, the planning process must include elements such as supplier alliances, supplier development and supply-chain process integration. Determine at which level of purchasing and supply planning these elements will occur.Show the full question

  60. Question 60 · Purchasing and supply management · 1 marks

    Continuing with the Toyota case, the automotive industry requires a variety of raw materials, including steel, aluminium, plastics and chemicals, making inventory management an important aspect of the purchasing and supply management function for automotive manufacturers such as Toyota. Identify the correct description of the aim of inventory management.Show the full question

  61. Question 61 · Purchasing and supply management · 1 marks

    Mustafa owns an electronic equipment chain store called E-Connect, which currently has nine stores across South Africa, one located in each province. To keep distribution costs down, purchases are made from a number of local suppliers. Determine which type of purchasing and supply structure would best suit E-Connect.Show the full question

  62. Question 62 · Purchasing and supply management · 1 marks

    Michael is a contractor who owns his own home renovations business called Let's Build. He currently has two work teams, each managing their own projects. However, Michael has noticed that some of his projects run over budget, and to counter this he has decided to initiate a cost-reduction plan. Identify which purchasing and supply objective would be appropriate given Michael's new business objective.Show the full question

  63. Question 63 · Purchasing and supply management · 1 marks

    There are four main issues that need to be addressed when organising the purchasing and supply function. Identify which one of the listed options represents such an issue.Show the full question

  64. Question 64 · Purchasing and supply management · 1 marks

    The purchasing and supply function can be divided into a particular arrangement in which each person takes responsibility for buying a specific material or service. Identify the term that describes this arrangement.Show the full question

  65. Question 65 · Purchasing and supply management · 1 marks

    The use of cross-functional teams is an important practice in purchasing and supply. Identify which one of the listed options is an objective of using cross-functional sourcing teams.Show the full question

  66. Question 66 · Purchasing and supply management · 1 marks

    Determine which one of the listed options correctly applies to the cyclical ordering system.Show the full question

  67. Question 67 · Purchasing and supply management · 1 marks

    Sarah owns a boutique called RunFast, which sells high-end running apparel. She recognises that there is a fine line between holding too much inventory and holding too little inventory. Identify which one of the listed options is a disadvantage of having too much inventory.Show the full question

  68. Question 68 · Purchasing and supply management · 1 marks

    During recessions, a favourable buyers' market exists and materials can be bought at lower prices. Identify which factor influencing the scheduling of purchases this situation is an example of.Show the full question

  69. Question 69 · Purchasing and supply management · 1 marks

    Identify the term for the quick and informal method used for both standard materials and non-standard materials with a high value.Show the full question

  70. Question 70 · Purchasing and supply management · 1 marks

    Purchasing and supply consist of several steps or cycles. Identify which one of the listed options is generally considered to be the first step in the purchasing process.Show the full question

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