MNB1601 - Business Management IB Multiple Choice (Questions & Answers)

1. OR Tambo International delivers a mass service because ________________. A) There is a fair amount of client contact B) Services are standardised to a certain extent C) The number of clients served is greater than with professional services D) The service is equipment orientated 2. Which one of the following is a characteristic of a service produced by a service provider suchasORTamboInternational ? A) Output kept in stock B) Manufactured before use C) Labour intensive D) Capital-intensive production 3. During the design of the processes that will be used at the new OR Tambo building, passengerneedswereattheforefront of the decision-making process. Which one of the following will occur during the designof processes?A) Screening process B) Preliminary design C) Design of supply network D) Design of prototype 4. The new, multi-level terminal links the original domestic and international terminals andthereforeimprovespassenger experience and orientation. In the transformation model, the improved passenger experiencerepresentsan/a ___________. A) Input B) Aid C) Output D) Transformation process 5. Airports such as OR Tambo International must be able to deal with a short waiting toleranceaspassengersexperience most value-adding activities first-hand. Passengers should be able to collect baggage fromterminalsinareasonable time period. This refers to the _____________ of output. A) Variety B) Visibility C) Variation D) Volume 6. The steel, glass and plastic used by a motor manufacturer refer to which one of the followinginputsinthetransformation model ? A) Information B) Equipment and facilities C) Technology D) Material 7. It is imperative that products and services be produced or provided at a cost that will enable thebusinesstoplace them on the market at a price that will ensure an acceptable profit for the business. By doingthis, thepositive result for the business will be ________________ . A) Lower cost B) Higher quality C) Better service D) Lower variability Downloaded by: mitchvogel13 | Distribution of this document is illegal 8 S - The Marketplace to Buy and Sell your Study Material . SASKO, a wheat mill, operates 16 bakeries throughout South Africa, supplying over a millionfreshloavesviamore than 30 000 delivery points daily. Which one of the following process types would SASKOusetoproduceitsproducts ? A) Project process B) Jobbing process C) Continuous process D) Mass process 9. During which stage in the design of products and services will provision of the product and/orservicebemadeless expensive and easier ? A) Prototype and final design B) Evaluation and improvement C) Preliminary design D) Screening process 10. Desperado Ship Repairers operate from one of the largest shipyards in South Africa andofferrepairsanddrydock services to a variety of marine users. Desperado Ship Repairers would make use of a _____________layout.A) Flexible-flow B) Line-flow C) Fixed-position D) Hybrid  Topic 2 - Human Resource Management 11. Sipho wants to know more about Maslow’s hierarchy of needs. This theory assumes that thereare________.A) Five main areas that should be satisfied simultaneously B) Three main areas of needs and the most dominant of these must be determined C) Five main areas and some needs must be satisfied before others can become important D) Three main areas that are activated by how much employees want something 12. Mary Mashego is the human resources manager of KZB Computers which is situated inDurban. Shehasdecided to recruit for the position of a financial analyst by means of head-hunting. This means that Marywillhaveto recruit by _________ . A) Placing an advertisement in the local newspaper B) Visiting schools and universities to find prospective applicants C) Placing an advertisement on the internet D) Offering the job to someone whom the management of KZB knows personally 13. After Mary Mashego has completed the application and shortlisting phase (preliminary screeningofapplicants)for a financial analyst position, she must do an intensive assessment. This involves two steps, namely__________testing and ___________ interviewing. A) IQ; psychological B) Medical; shortlist C) Diagnostic; shortlist D) Psychological; diagnostic 14. Lizzie is the HR manager at a game lodge in the Western Cape. She realises that many of hergamerangersarestruggling with motivation, showing up late for game drives and ignoring client requests. After doingsomeresearch, Lizzie found three types of needs that would affect her staff's motivation levels: existenceneeds,relatedness needs and growth needs. To which motivation theory do these three needs refer ? A) Maslow's hierarchy of needs B) Alderfer's ERG theory C) Herzberg's two-factor theory D) McClelland's theory of needs Downloaded by: mitchvogel13 | Distribution of this document is illegal 15 S - The Marketplace to Buy and Sell your Study Material . Edcon invested 4,6% of its payroll in learning and development. The company offers bursariestopermanentemployees to encourage them to further their education. By doing this, Edcon is satisfying ________________needs according to Maslow’s hierarchy of needs. A) Esteem B) Physiological C) Social D) Self-actualisation It is recommended that you read business case number 10 “Human Resource Management: Derby DepartmentalStores”(in the recommended book “Business Cases”) before attempting to answer questions 16 to 20. It is not compulsorythatyou do so, as the answers to the assignment questions can be found in ITBM. 16. To improve employee motivation, in a bid to avoid future strikes, Derby has endeavoredtoprovidejobswhichare challenging, provide growth and allow adequate achievement opportunities. Which employeemotivationalstrategy is Derby using ? A) Job design B) Management-by-objectives strategies C) Intrapreneurial incentives D) Training and education 17. In order to rectify the current problems at Derby, management will need to look at three thingswhichdetermine employee performance in an organisation: motivation, ability and __________ . A) Behavioural rewards B) Functional behaviour C) Work environment D) Job specification 18. Derby has decided to fill all the positions at their new stores with employees fromoutside theorganisation.Which one of the following would be a disadvantage of recruiting from the outside ? A) An active effort is made to obtain the right person for the job. B) Recruiting costs are considerably higher. C) The business tends to stagnate. D) There can be a lot of personal competition amongst colleagues. 19. In a bid to improve employee performance and to avoid future strikes, Derby decides to implementregularperformance appraisals. Which one of the following is a basic purpose for which the results of aperformanceappraisal can be used ? A) To provide a basis for dismissal. B) To determine if an employee may be demoted. C) To provide feedback to the employee. D) To determine an employee’s state of wellness. 20. Derby’s management team has realised that the compensation paid to employees is not sufficient. Theydecideto review the compensation of employees. The first step when deciding on compensation is to makeanexternalcomparison. An external comparison can be done by doing a ___________ . A) Job analysis B) Work study C) Job evaluation D) Salary survey Downloaded by: mitchvogel13 | Distribution of this document is illegal  Second Ass S - The Marketplace to Buy and Sell your Study Material ignment  Topic 3 - Marketing Management It is recommended that you read business case number 11 “Marketing management: Heineken and SABMiller’sbeerwar”(in the recommended book “Business Cases”) before attempting to answer questions 1 to 5. It is not compulsorythatyoudo so, as the answers to the assignment questions can be found in ITBM. 1. The female market’s perception regarding beer is an individual factor that determines consumerbehaviour.There are also group factors which influence consumer behaviour. Which one of the followingis agroupfactorthat will determine the behaviour of female beer drinkers ? A) Lifestyle B) Motivation C) Attitude D) Culture 2. Heineken realises that their new low-alcohol beer, Radler, will have to compete with many othersimilaralcoholic drinks targeted at women. They, therefore, decide to have a lower, initial price for the beer. Thisadaptionto the final price is known as ___________ prices. A) Skimming B) Market-penetration C) Market D) Bait 3. Heineken is making use of its strong brand presence to launch the new beer, Radler. Whichoneof thefollowingrepresents the last phase of brand loyalty the consumer will move through ? A) Brand recognition B) Brand preference C) Brand insistence D) Brand activation 4. During the development of the new product, Radler, Heineken would have gone throughseveral phasesofnewproduct development. Which one of the following represents phase 4 of the new product developmentprocess?A) Physical product is developed. B) Product ideas are developed. C) Product ideas are screened. D) Non-viable product ideas are eliminated. 5. Heineken would have made several decisions regarding the packaging to be used for the newRadlerbeer.Which one of the following is NOT a relevant factor in the choice of packaging design ? A) Reusable packaging B) Packaging materials C) The shape of the package D) Packaging sizes 6. Richemont decided to do research on the smoking habits of South Africans, making use of asurvey. Duringwhich step would they come to the conclusion that South Africans continue to smoke, even if theirdiscretionaryincome decreases, thereby confirming previous results that cigarette sales are inelastic ? A) Step 12 B) Step 10 C) Step 9 D) Step 8 7. Brand loyalty and price sensitivity are factors that determine the __________ criteria for market segmentation.A) Geographic B) Behavioural C) Demographic D) Psychographic Downloaded by: mitchvogel13 | Distribution of this document is illegal 8 S - The Marketplace to Buy and Sell your Study Material . Few intermediaries have the right to sell Jimmy Choo shoes in a certain geographical area. Theseintermediariesundertake not to stock other competing shoe brands. What type of market coverage is used for sellingJimmyChooshoes ? A) Intensive market coverage B) Exclusive market coverage C) Selective market coverage D) Mainstream market coverage 9. Which phase in the consumer decision-making process entails consumers using criteria suchas price, quality,performance standards and aesthetic qualities to gauge the contribution a product will make toneedsatisfactionand their lifestyle ? A) Awareness of an unsatisfied need or a problem. B) Gathering of information on how best to solve the problem. C) Evaluation of the possible solutions. D) Decision on a course of action or purchase. 10. Which of the following participants would you typically find in Channel 4 (four) of the alternativedistributionchannels ? A) Manufacturer; consumer B) Manufacturer; retailer; consumer C) Manufacturer; wholesaler; consumer D) Manufacturer; wholesaler; retailer; consumer  Topic 4 - Financial Management It is recommended that you read business case number 12 “Financial management: IBM” (in the recommendedbook“Business Cases”) before attempting to answer questions 11 to 15. It is not compulsory that you do so, astheanswerstothe assignment questions can be found in ITBM. 11. By ____________________, Gerstner Jr. would be able to improve the gross profit marginat IBM. A) Increasing sales by means of more effective marketing B) Reviewing assets C) Reducing equity D) Reducing the operating expenses 12. If Gerstner Jr. were to reduce the number of shares by buying back shares, he would be attemptingtoimproveIBM’s profitability by adjusting which ratio ? A) Gross profit margin B) Earnings per share C) Net profit margin D) Return on assets 13. Which one of the following options from IBM’s statement of financial performance correctlycompletesthefollowing statement ? Net income (sales) less _____________ is gross profit. A) Returns and cash discount B) Cost of products sold C) Operating costs D) Interest 14. The most common expenses accrued by businesses, such as IBM, are ___________ . A) Bank overdrafts and interest B) Wages and trade credit C) Invoice discounts and salaries D) Wages and taxes Downloaded by: mitchvogel13 | Distribution of this document is illegal 15 S - The Marketplace to Buy and Sell your Study Material . If IBM wants to look at their activities and priorities afresh on an annual basis, which budgetingapproachwould IBM be using ? A) Traditional budgeting B) Zero-base budgeting C) Financial budgeting D) Operating budgeting 16. During the 2009/2010 fiscal year, SAB generated sales revenue of R33 billion. SABdecidedtoinvestRin a fixed account that earns 10% interest. How much will the fixed account be worth in five years’ time?A) R531 465 B) R337 669 C) R483 153 D) R. You have been given the following information extracted from the statement of financial positionofTBS&SonsLtd.Cash and cash equivalent: R15 000 Debtors or receivables: R250 000 Inventories: R420 000 Creditors: R120 000 Accruals: R280 000 The current ratio is ____________ . (Rounded down) A) 2,3:1 B) 1,51:1 C) 1,71:1 D) 1,15:1 18. Gunn&Moore manufactures cricket bats at one of its plants. The fixed cost amounts to Rperannum.The bats are sold at R400 each and the variable cost per unit amounts to R150. The break-evenpoint ofthisplantis ________ units. A) 2 909 B) 2 300 C) 4 000 D) 6 400 19. The use of ______________ is the best way to establish credit with a commercial bank. A) Mortgage loans B) Small-business loans C) Bank credit D) Capital share listings 20. Kate owns her own bakery and leases her operating equipment, such as ovens and fridges, fromEasyBake.The lease amount, which Kate pays back in regular installments, is determined in such a way that thevalueoftheasset, plus an interest charge, is paid back by the end of the term of the lease, which is usually relatedtothelifespan of the asset. Which type of financial leasing agreement does Kate have with EasyBake ?A) Operating-lease agreement B) Direct financial leasing C) Leaseback agreement D) Lifespan leasing Downloaded by: mitchvogel13 | Distribution of this document is illegal  Top S - The Marketplace to Buy and Sell your Study Material ic 5 - Purchasing and Supply Management 21. Carol is the quality controller for J’Divine, a popular wedding photography business. It is herresponsibilitytoensure that the photo books which are sent out to customers meet stringent quality requirements. Carolmakesuseof ______ to describe the required quality of the books and _____ to control the quality of the photobooks.A) Inspection; standardisation B) Specifications; inspection C) Specifications, standardisation D) Inspection; specifications 22. As from the end of August 2013, Edgars will have a new international brand in some of its stores, calledPaulFrank. This new range of apparel is fun, vibrant and edgy. Edgars has decided to make use of Paul FrankIndustries as a supplier for the new summer range. Edgars had to research prices and availabilityof variousranges. An order was issued and a contract was concluded. What would the next step in the purchasingprocessbe ? A) Follow-up and expediting B) Receipt, inspection and distribution C) Paying for the order D) Closing the order 23. Cross-functional sourcing teams play an important role when it comes to purchasing andsupplyactivities.Cross-functional sourcing teams are used in which one of the following activities ? A) Commodity sourcing strategy B) Sourcing C) Supplier performance evaluation D) Supplier certification 24. During the first step of the purchasing process, the need for materials is conveyed by means of a________.A) Delivery note B) Requisition C) Reminder note D) Inspection report 25. Jennifer is the purchasing manager of a large retail chain in Kwa-Zulu Natal. She is currentlybusycalculatingall of the costs related to placing an order at their suppliers. Some of the costs that she needs toincludeinhercalculation are salaries of the purchasing and supply personnel, stationery, online costs andinboundtransportation. Which inventory cost is Jennifer busy calculating ? A) Total inventory cost B) Inventory-carrying cost C) Inventory-ordering cost D) Inventory-management cost It is recommended that you read business case number 13 “Purchasing and supply chain management: Toyota”(intherecommended book “Business Cases”) before attempting to answer questions 26 to 30. It is not compulsorythatyoudoso, as the answers to the assignment questions can be found in ITBM. 26. Toyota aims to keep their inventory to the minimum. This means nothing is produced until thecustomerrequests it, and subsequently nothing is purchased until the production process begins and materialsarerequestedfrom the supplier. What is the system used by Toyota called ? A) System of fixed order quantities B) Cyclical ordering system C) Materials-requirements planning (MRP) system D) Just-in-time (JIT) system 27. Toyota purchases material just before they are needed. This is an especially effective strategyduringboomperiods when economic activities are high, provided that ________________ . A) The boom is expected to level out B) The purchaser pays cash C) Large quantities are purchased D) There are no government restrictions Downloaded by: mitchvogel13 | Distribution of this document is illegal 28 S - The Marketplace to Buy and Sell your Study Material . In modern organisations like Toyota the purchasing function forms an inherent and integrativepartofanintegrated supply chain. Which one of the following would be one of the main issues that needs tobeaddressedwhen organising the purchasing function at Toyota ? A) The determination of the lowest operations level activities. B) Cross-functional teams. C) Sourcing activities. D) The development of BEE suppliers. 29. Areas of control in the purchasing function of Toyota include the management task andthe performanceofpurchasing and supply activities. Which one of the following represents a control point to gauge theeffectivenessofpurchasing and supply activities ? A) Relationship performance with suppliers B) Adequacy of performance appraisals C) Cross-functional teams’ contribution D) Number of purchasing contracts 30. Toyota does not only purchase parts from suppliers, but also develops suppliers’ capabilities. Supplierdevelopment will occur at which level of purchasing and supply planning ? A) Strategic level B) Tactical level C) Operational level D) Functional level Downloaded by: mitchvogel13 | Distribution of this document is illegal  Th S - The Marketplace to Buy and Sell your Study Material ird Assignment  Topic 1 - Operations Management 1. Which one of the following represents the final step in the layout of a manufacturing or servicefacility?A) Making a detailed design of the layout. B) Selecting the process type. C) Refining the process design. D) Evaluation and improvement of the design. 2. __________________ entails the application of techniques designed to determine howlong it takesatrainedandqualified worker to do a specific job at a fixed level of performance. A) Work study B) Method study C) Work measurement D) Job design 3. Chris, an operations manager at Koda Printers, is responsible for the allocation of the volumeof worktobedone at the various work centres. He needs to take into account the available capacity of the operationsprocesswhen allocating work. Chris is busy with the ___________ of tasks. A) Loading B) Sequencing C) Scheduling D) Reconciliation It is recommended that you read business case number 9 “Operations management: Air traffic operationsexcellence”(inthe recommended book “Business Cases”) before attempting to answer questions 4 to 8. It is not compulsorythatyoudoso, as the answers to the assignment questions can be found in ITBM. 4. There are many critical events that will determine whether or not a flight arrives safely at ORTamboInternational. If a problem is experienced with a specific type of aircraft where the landing gear getsstuckeverytime after take-off, it would be considered as a ______________ failure. A) Design B) Facility C) Staff D) Engine 5. ORTIA, the Rand and Lanseria airports can be classified as which one of the following process types?A) Service shops B) Mass services C) Continuous processes D) Professional services 6. Having an effective and efficient operation, will give ORTIA several advantages. Which one of thefollowingwould be such as an advantage ? A) It can reduce the cost of offering services. B) It can increase the capital required to offer services. C) It can reduce the volume of client contact when offering services. D) It can provide the impetus for maintaining service standards. 7. Operations improvements, such as those incorporated during the upgrading of ORTIA, formpart ofthe________ of the general model of operations management. A) Inputs B) Transformation process C) Outputs D) Products and/or services Downloaded by: mitchvogel13 | Distribution of this document is illegal 8 S - The Marketplace to Buy and Sell your Study Material . The operations-management function of ORTIA should be able to adapt or change activities if unforeseencircumstances make it necessary to do so. This refers to the operations-management performanceobjective/guideline of ________ . A) Doing things right the first time B) Doing things cost effectively C) Doing things quickly D) Making changes quickly 9. _______________ processes manufacture a limited range of products and production occurs inlots. A) Mass B) Jobbing C) Batch D) Continuous 10. The plan-do-check-act (PDCA) cycle is often used in practice and is an example of a ___________improvement. A) Kaizen B) Breakthrough C) Quality D) Preventative  Topic 2 - Human Resource Management 11. Samuel is the Human Resource manager at Uni-Sweat, a gym franchise. He is currently busycompilingadocument which not only outlines the qualifications required for a new personal trainer, but alsotheamountofhours the personal trainer will need to be standing on the gym floor, lifting equipment or walkingaroundthegym.Samuel is busy with the job ____________ of the new personal trainer position. A) Analysis B) Description C) Specification D) Development 12. Clive is the HR manager of Active Wear, a sport clothing manufacturer, and one of his tasks istoplanthedevelopment methods Active Wear uses for training and development activities. Clive prefers tomoveastaffmember to a new job as soon as the staff member knows how to do the current job well. This is anexampleofwhich type of development ? A) Lecturers B) Job rotation C) E-learning D) Role playing 13. Caylee works for an exclusive beauty company which only sells products directly to salons. As partofhercompensation package, Caylee has access to a company car which she must use to travel to clients. Shemayalsomake use of the car for personal travel. The car is part of Caylee’s ___________ compensation. A) Direct B) Indirect C) Reward D) Allowance 14. According to Herzberg’s two factor theory, _____________ factors are those factors people consideressentialto do any job and are thought of as extrinsic conditions. A) Hygiene B) Motivational C) Growth D) Internal Downloaded by: mitchvogel13 | Distribution of this document is illegal 15 S - The Marketplace to Buy and Sell your Study Material . Studies have shown that successful organisations share similar human resource management attributes.Whichone of the following represents such a human resource management attribute ? A) Primary benefits and working conditions such as leave allowance. B) Secondary benefits which are monetary in nature such as pension. C) The availability of non-function related development initiatives. D) Career development which includes long-term career-path development. It is recommended that you read business case number 10 “Human Resource Management: Derby DepartmentalStores”(in the recommended book “Business Cases”) before attempting to answer questions 16 to 20. It is not compulsorythatyou do so, as the answers to the assignment questions can be found in ITBM. 16. Two years ago, Derby would have required additional employees for their new stores. This newdevelopmentinthe business would have influenced the human resource forecasting being done at Derby. Whichoneofthefollowing is another factor which would influence human resource forecasting ? A) The social environment B) The labour market C) Supplier development D) International human resource trends 17. If Derby had decided to go ahead with the planned stores, they could have made use of variousrecruitingmethods to source new employees. Which recruitment method would be the most common formof recruiting,inspite of its high costs ? A) Recruitment through advertising. B) Recruitment through private employment/recruitment agencies. C) Recruitment through existing employees. D) Recruitment through the Internet. 18. In an effort to curb industrial unrest and strikes, Derby may make use of employee motivational strategies.IfDerby decides to reward above-average work performance with overseas visits, which employee motivationalstrategy are they using ? A) Empowerment programmes B) Employee-recognition programmes C) Intrapreneurial incentives D) Employee involvement programmes 19. Which one of the following would Derby typically use to provide employees with the knowledgeandskillsneeded to do a particular task or job ? A) Orientation B) On-boarding C) Development D) Training 20. In a bid to improve employee performance and to avoid future strikes, Derby decides to implementregularperformance appraisals. Which one of the following is considered to be the least-effective formof performanceappraisals ? A) Appraisals which include the assessment of an employee’s characteristics. B) Multi-source ratings such as the 360° system. C) Using objectives to measure the employee’s performance. D) Appraisals based on impressions of employees in comparison with each other. Downloaded by: mitchvogel13 | Distribution of this document is illegal  Four S - The Marketplace to Buy and Sell your Study Material th Assignment  Topic 3 - Marketing Management It is recommended that you read business case number 11 “Marketing management: Heineken and SABMiller’sbeerwar”(in the recommended book “Business Cases”) before attempting to answer questions 1 to 5. It is not compulsorythatyoudo so, as the answers to the assignment questions can be found in ITBM. 1. SABMiller makes use of various channels when distributing their products. For example, SABMillermayselltheir products in bulk to Makro and Game. Makro and Game are South African examples of ______________stores which mostly sell shopping products and are renowned for their high stock turnover. A) Speciality B) Discount C) Convenience D) Chain 2. Makro offers consumers a convenient option where one may purchase a variety of SABMillerproductsonline.This is known as direct marketing and is becoming increasingly popular in South Africa. Whichoneofthefollowing is a benefit of direct marketing ? A) It is not necessary to build a long-term relationship with the consumer. B) One cohesive message can be used to reach a large audience. C) A customer database can be developed. D) It is no longer necessary to conduct marketing campaigns. 3. During the launch of their new beer, Radler, SABMiller would have made use of an integratedmarketstrategy.This strategy follows the product’s life cycle. The objective in the growth phase of the integratedmarketingstrategy is to _____________ . A) Develop demand B) Counteract competition C) Maintain market share D) Create demand 4. The increasing spending power of the middle classes in Africa has also increased the expansionof thebeermarket. The ______________ market then consists of individuals or households purchasing productsfortheirownconsumption. A) Consumer B) Industrial C) Resale D) Government 5. By segmenting consumers into social class, such as the middle-classes, Heineken is making useof __________segmentation. A) Geographic B) Demographic C) Psychographic D) Behavioural 6. Roy is a cigar connoisseur and always makes a special purchasing effort when sourcing newproductstoaddtohis collection. Often, Roy will rather insist on a specific brand that he knows rather than try somethingnew.Cigarscan be classified as a ___________ product. A) Shopping B) Speciality C) Convenience D) Imported Downloaded by: mitchvogel13 | Distribution of this document is illegal 7 S - The Marketplace to Buy and Sell your Study Material . Linsey is graduating at the end of the year and her dad would like to purchase a fountainpenforherasaspecial graduation gift. He decides to purchase a Mont Blanc stainless steel pen. The ____________productinthiscase would refer to a stainless steel pen that has a stainless steel casing with a fountain-point tipwhichmeetstheneed to communicate. A) Core B) Formal C) Need-satisfying D) Total 8. The trademark, Mont Blanc, and the specific packaging Mont Blanc uses for their fountainpenswouldcontribute to the _____________ product. A) Core B) Formal C) Need-satisfying D) Total 9. Lux, Dove and Knorr are all products sold through Unilever. However, each product has aseparatemarketingcommunication strategy which is aimed at a specific target market. What type of brand wouldLux, DoveandKnorr be ? A) Family brand B) Generic brand C) Individual brand D) Dealer brand 10. New car models are well-known examples of ______________ obsolescence which points totheintroductionofa new model, resulting in the consumer rejecting the ‘old’ product. A) Unplanned technical B) Unplanned psychological C) Planned technical D) Planned psychological  Topic 4 - Financial Management 11. Which one of the following is a characteristic of ordinary shares ? A) The liability of ordinary shareholders is limited to the amount of debt the business has incurreduponliquidation.B) Shareholders have no certainty that the money paid for shares will be recouped. C) Ordinary shares in an unlisted company can be traded on the stock exchange. D) Ordinary shareholders are only members of the business and do not have full control of the business. 12. Erin is the accountant for a company that produces pharmaceutical products. After calculatingthegearingratio for the financial year, she arrives at a ratio of 1.7:1. This means that the company _____________________.A) Has 17 cents of current assets available for each R1 of its current liabilities B) Has R1.70 of non-current assets available for each R1 of its non-current liabilities C) Has R1.70 of owners’ equity for each R1 of its debt D) Financed 17% of its assets with debt 13. Mala has invested R3 000 in a fixed deposit account. When he receives his annual statement, heseesthathisinvestment is now worth R3 200. To which fundamental principle of financial management does thisrefer?A) The risk-return principle B) The cost-benefit principle C) The time value of money principle D) The liquidity principle 14. The formula for calculating the future value of an original investment is : FVn = PV (1 + i)n Downloaded by: mitchvogel13 | Distribution of this document is illegal Where PV S - The Marketplace to Buy and Sell your Study Material is : A) The original investment B) The future value of the investment C) The interest rate per period D) The number of discrete periods over which the investment extends 15. A/an ____________ centre measures inputs in monetary terms, but not outputs. The reasonforthisisthattheprimary purpose of such a centre is not the generation of income. A) Income B) Cost C) Profit D) Investment It is recommended that you read business case number 12 “Financial management: IBM” (in the recommendedbook“Business Cases”) before attempting to answer questions 16 to 20. It is not compulsory that you do so, astheanswerstothe assignment questions can be found in ITBM. 16. IBM had a better statement of financial position, despite falling behind in sales. Which one of thefollowingbest describes the statement of financial position ? A) Can be described as the accrued power of disposal over the products and services used by the businesstogeneratea monetary return. B) Consists of primarily receipts resulting in the sale of the business’s products and/or services. C) Reflects all of the possessions of the business as well as the nature and extent of the interests inthesepossessions.D) Furnishes details about the manner in which the profit or loss for a particular period was arrivedat andhowithasbeen distributed. 17. Which one of the following would appear on IBM’s statement of financial position ? A) Shareholders’ interest B) Operating profit C) Returns D) Provision for tax 18. In 1993, Louis Gerstner “rescued” IBM and added $20 billion in annual revenue. To accomplishthis,IBMwould have made use of rigorous budgets. Which one of the following is a purpose of financial budgets?A) They verify the viability of the strategic plans (operating budgets). B) They reveal the financial actions that the business must take to make the execution of its strategicbudgetspossible. C) They indicate how the operating plans of the financial function will affect past financial actions. D) They indicate how the operating plans of the business will affect future financial actions. 19. Calculate the break-even point for IBM South Africa with the following information : Sales price : R6 400 per Thinkpad laptop Variable cost : R2 400 per Thinkpad laptop Total fixed cost : R1 100 000 per annum Number of Thinkpad laptops/units sold : 3 500A) 125 Thinkpad laptop/units B) 220 Thinkpad laptop/units C) 275 Thinkpad laptop/units D) 172 Thinkpad laptop/units 20. IBM will need to have sufficient cash available to meet normal current expenditure. The __________motiveexists because receipts and disbursements are not fully synchronised. A) Transaction B) Precautionary C) Speculative D) Debt Downloaded by: mitchvogel13 | Distribution of this document is illegal  Top S - The Marketplace to Buy and Sell your Study Material ic 5 - Purchasing and Supply Management It is recommended that you read business case number 13 “Purchasing and supply chain management: Toyota”(intherecommended book “Business Cases”) before attempting to answer questions 21 to 25. It is not compulsorythatyoudoso, as the answers to the assignment questions can be found in ITBM. 21. Should Toyota be required to choose a new supplier, what would be the first step in the supplierselectionprocess ? A) Request a quote from suppliers. B) Compile a list of possible suppliers. C) Consider aspects such as past performance and reliability. D) Evaluate supplier performance 22. Should Toyota assess the effectiveness of their purchasing and supply activities by lookingat thenumberoforders indicated as urgent, it would be assessing activities based on ______________________ . A) Inventory-holding B) Workload C) Timeliness D) Supplier performance 23. An organisation such as Toyota, with a head office, different business units and plants, has variousoptionswhen it comes to an organisational structure. If each plant and each branch at Toyota do their ownpurchasing,then Toyota has a ____________ purchasing and supply structure. A) Centralised B) Decentralised C) Combination of centralised and decentralised D) Matrix 24. The JIT system at Toyota SA is complicated by the fact that some of their suppliers are overseas. Inordertomake a JIT system work, ______________ is/are needed. A) Fixed order quantities B) Cyclical ordering C) Supplier alliances D) Automatic replenishment 25. Toyota would convey their need for products, material or services through a ____________duringthefirststep of the purchasing cycle, development and description of a need. A) Requisition B) Register of supplies C) Price list D) Delivery note 26. By its nature, brewing beer is a water-intensive process. By curbing the amount of water SABusestomaketheir beer, they reduce their purchasing costs. This saving in purchasing costs results in a higherprofitpotentialthan if SAB had a similar increase in the sale of their beer. This is known as ______________ . A) The time-value of money B) Inventory-holding C) Profit leverage D) The contribution of marketing 27. The aim of ________________ is to keep inventory levels as low as possible without riskinganinterruptioninthe operational process (as a result of an out-of-stock situation). A) Inventory management B) Purchasing and supply management C) Purchasing and supply function D) Warehousing management Downloaded by: mitchvogel13 | Distribution of this document is illegal 28 S - The Marketplace to Buy and Sell your Study Material . Ingomso owns an event company which specialises in the hosting of sport events. After consultingabusinessanalyst, he decides to set a new purchasing and supply objective for 2018: To search for more uniqueproductsinthe supplier market. Which one of the following would be the business objective fromwhichthis newobjectivewasderived ? A) To initiate a cost-reduction plan. B) To develop an overall production capacity plan. C) To move to the general market. D) To retain market share. 29. If the supply market is a monopoly or an oligopoly, negotiation should take place at a highlevel. Thiswillinfluence the ____________ level of the purchasing and supply function in the organisational structure. A) Strategic B) Hierarchical C) Managerial D) Operational 30. In order to determine the future availability of materials or services, a study of the technical, managerialandfinancial abilities of suppliers is necessary. This is done by ___________ . A) Doing an internal audit of suppliers B) Drawing up quality specifications C) Going on business retreats D) Analysing suppliers’ financial statements Downloaded by: mitchvogel13 | Distribution of this document is illegal S - The Marketplace to Buy and Sell your Study Material 2019 ASSIGNMENTS  First Assignment  Topic 1 - Operations Management It is recommended that you read business case number 9 “Operations Management: Air traffic operationsexcellence”(inthe recommended book “Business Cases”) before attempting to answer questions 1 to 6. It is not compulsorythatyoudoso, as the answers to the assignment questions can be found in Introduction to Business Management (ITBM). 1. The new, multi-level terminal links the original domestic and international terminals andthereforeimprovespassenger experience and orientation. In the transformation model, the multi-level terminal represents______________ which ______________ . A) Inputs; are transformed B) Inputs; make transformation possible C) Outputs; are transformed D) Outputs; make transformation possible 2. Airports and airlines are considered to be mainly service providers. Which one of the followingisacharacteristic of a service produced by a service provider ? A) Long response time B) Large production facilities C) Little customer contact D