MNB1501
TEST BANK
,BUSINESS MANAGEMENT IA - MNB1501
TEST BANK 2026
QUESTION 1
Which of the following statements correctly describes the economic principle?
a) The economic principle involves obtaining the greatest possible satisfaction of human
needs by making efficient use of scarce resources.
b) The economic principle requires a business to increase its input costs as much as
possible.
c) Businesses applying the economic principle aim to maximise the income they obtain
from available resources.
d) The economic principle does not apply to an economic system.
1. a (Correct answer: Option 1)
2. a, c, d
3. b, c, d
4. c, d
Case Study: The Airline Industry
Refer to Case Study 2, “The airline industry – developing value-based competition
in the South African airline market”, in the prescribed Business Cases textbook and
use it to answer Questions 2–4.
QUESTION 2
Kulula's mission statement indicates that employees should be given opportunities to
improve their skills and develop their abilities so that they can provide better service to
customers. Which level of Maslow's hierarchy of needs is being addressed?
1. Physiological needs
, 2. Security needs
3. Social needs
4. Esteem needs
5. Self-realisation needs (Correct answer: Option 5)
QUESTION 3
Which of the following resources are required by low-cost airlines?
a) Natural resources
b) Human resources
c) Capital resources
d) Entrepreneurship and management
1. a, b, c, d (Correct answer: Option 1)
2. a, b
3. a, b, c
4. b, c, d
QUESTION 4
Sally purchases cocoa from South America, processes it into 90% dark chocolate and
sells the finished product through her stores across South Africa. Which element of
business is illustrated by this activity?
1. Human activities
2. Transformation (Correct answer: Option 2)
3. Exchange
4. Profit
Case Study: MXit
, Refer to Case Study 4, “MXit – Using disruptive technology to build new mobile
social networks”, in the prescribed Business Cases textbook and answer Questions
5–7.
QUESTION 5
Which customer need was MXit primarily designed to satisfy?
1. Self-realisation needs
2. Esteem needs
3. Social needs (Correct answer: Option 3)
4. Security needs
QUESTION 6
When Herman Heunis developed the MXit business idea, he first needed to determine
whether the proposed venture was viable. Which action would have been appropriate?
1. Conduct a feasibility study (Correct answer: Option 1)
2. Prepare a business plan
3. Determine whether the necessary resources were available
4. Establish whether he personally possessed the qualities required to start the
venture
QUESTION 7
Herman Heunis had to assess his business offering and its features and determine how
the venture could meet customers' needs and wants. Which management skill does this
situation demonstrate?
1. Human-resource skills
2. Marketing skills (Correct answer: Option 2)
3. Planning skills
4. Strategic skills
TEST BANK
,BUSINESS MANAGEMENT IA - MNB1501
TEST BANK 2026
QUESTION 1
Which of the following statements correctly describes the economic principle?
a) The economic principle involves obtaining the greatest possible satisfaction of human
needs by making efficient use of scarce resources.
b) The economic principle requires a business to increase its input costs as much as
possible.
c) Businesses applying the economic principle aim to maximise the income they obtain
from available resources.
d) The economic principle does not apply to an economic system.
1. a (Correct answer: Option 1)
2. a, c, d
3. b, c, d
4. c, d
Case Study: The Airline Industry
Refer to Case Study 2, “The airline industry – developing value-based competition
in the South African airline market”, in the prescribed Business Cases textbook and
use it to answer Questions 2–4.
QUESTION 2
Kulula's mission statement indicates that employees should be given opportunities to
improve their skills and develop their abilities so that they can provide better service to
customers. Which level of Maslow's hierarchy of needs is being addressed?
1. Physiological needs
, 2. Security needs
3. Social needs
4. Esteem needs
5. Self-realisation needs (Correct answer: Option 5)
QUESTION 3
Which of the following resources are required by low-cost airlines?
a) Natural resources
b) Human resources
c) Capital resources
d) Entrepreneurship and management
1. a, b, c, d (Correct answer: Option 1)
2. a, b
3. a, b, c
4. b, c, d
QUESTION 4
Sally purchases cocoa from South America, processes it into 90% dark chocolate and
sells the finished product through her stores across South Africa. Which element of
business is illustrated by this activity?
1. Human activities
2. Transformation (Correct answer: Option 2)
3. Exchange
4. Profit
Case Study: MXit
, Refer to Case Study 4, “MXit – Using disruptive technology to build new mobile
social networks”, in the prescribed Business Cases textbook and answer Questions
5–7.
QUESTION 5
Which customer need was MXit primarily designed to satisfy?
1. Self-realisation needs
2. Esteem needs
3. Social needs (Correct answer: Option 3)
4. Security needs
QUESTION 6
When Herman Heunis developed the MXit business idea, he first needed to determine
whether the proposed venture was viable. Which action would have been appropriate?
1. Conduct a feasibility study (Correct answer: Option 1)
2. Prepare a business plan
3. Determine whether the necessary resources were available
4. Establish whether he personally possessed the qualities required to start the
venture
QUESTION 7
Herman Heunis had to assess his business offering and its features and determine how
the venture could meet customers' needs and wants. Which management skill does this
situation demonstrate?
1. Human-resource skills
2. Marketing skills (Correct answer: Option 2)
3. Planning skills
4. Strategic skills
