MNB1501 EXAM STUDY PACK
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
, 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
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
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
, 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
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
