MNB1501 EXAM prep for distinction 2019 .

The business world and business management The most important characteristic of the business world in countries that adopt a market economy is 1. That the business involves human activities 2. That the businesses produce predominantly tangible products such as bread, cars and houses 3. That individuals themselves decide what to produce, how to produce and what to price to sell the product 4. That the rationing of products occurs and prices of products are set by the state Read the case below and answer questions 2 & 3 Deregulation within the airline industry was introduced in South Africa in 1991. Before deregulation, SAA was the only service provider on the main domestic airline routes as well as the international routes. The first decade after deregulation resulted in a wave of low cost airline competitions such as Filestar, Sun Air, Phoenix Air, Nationwide 1time and velvet sky entering the domestic market There are several factors in the business world that apply pressure on a modern-day organisation such as SAA. Which one of these factors is depicted in the mini-case study above? 1. Environmental change 2. Consumerism 3. Profitability 4. Corporate social investment SAA functions within a free-market economy, which is characterised by which of the following attributes? a. Private ownership of production factors b. Free competition c. Profit motive recognised d. Limited right to strike in state enterprises 1. Ab 2. Bd 3. Abc 4. Abcd The voluntary compliance of business with practices that are sustainable is known as 1. Business ethics 2. Consumerism 3. Corporate sustainability 4. Corporate social responsibility The _________________ function is responsible for acquiring all product and materials that are required by the business to function 1. Operations 2. Purchasing and supply 3. Human resources 4. General management Column A – Economic System Column B - Description a. Free market i. Generally has low productivity and increase the difficulty of proper planning b. Command Economy ii. The main driving force in the market is profit generation The world is divided into 3 basic economic systems and each system and each has its own unique characteristics. Match the correct characteristic in block B with the appropriate economic system in Black A 1. A(ii) B (I) C (iv) 2. A(iv) B(i) C(III) 3. A(iv) B(iii) C(ii) 4. A(ii) B(iii) C(i) Many micro-enterprises form part o the so-called informal sector. Which one of the following statements regarding enterprises in the informal sector is incorrect? 1. They are not part of the formal economy because they are not registered 2. Many people involved in these enterprises live primarily on a subsistence or survival basis 3. They put pressure on the infrastructure of inner-city areas and do not contribute to rates and taxes 4. Even though they are not registered, these enterprises contribute to rates and taxes ENTREPENEURSHIP Read the case study below and answer questions 8 & 9 The main operators in the SA liquor market are SAB, United National Brewries, Distell and Brandhouse. SAB forms part of the multinational beer brewer SABMiller, which manufactures manly malt beer but also flavoured alcoholic beverages (FABs) and also owns more than 60% of the market for sales of the Coca-Cola soft drink in SA. c. Socialism iii. The state has full control over production factors thereby increasing competition in the market iv. Employees are free to choose employment and have a limited right in government institutions to participate in strikes SAB previously used their own large trucks to distribute the beer that the company brewed to customer outlets. However, SAB decided to no longer use their own trucks, but use owner-drivers of trucks to distribute their beer. These drivers receive contracts from SAB to deliver beer to clients in demarcated areas, the above scenario is referred to as 1. Franchising 2. Outsourcing 3. Insourcing 4. Innovating When SABMiller first started in 1895 as Castle Breweries, they would have needed to consider the business as a whole and to understand how it fits within its marketplace. Which management skill does this refer to? 1. Strategy skills 2. Marketing skills 3. Planning skills 4. Project management Kohler has adopted several strategies to sustain a culture of continuous innovation. Growth has been generated substantially from within, by people creating an area, grafting it financed internally and executing it successfully. This is an example of________________. 1. Franchising 2. Intrapreneurship 3. Entrepreneurship 4. None of the above. Lucy Dlamini aims to open her own hairdressing salon in CT. which of the following are traits and characteristics that she should possess in order to be classified as an entrepreneur. a. Achievement and motivation b. Risk taking c. High tolerance for ambiguity d. Innovation and creativity