MNB 1601 Assignment 2 MNB 1601(UPDATED 2020)

Assignment 2 MNB 1601 QUESTION 1 Pg 428 The increasing spending power of the middle classes in Africa has also increased the expansion of the beer market. The ______________ market then consists of individuals or households purchasing products for their own consumption. 1 consumer 2 industrial 3 resale 4 government QUESTION 2 Pg 432 By segmenting consumers into social class, such as the middle-classes, Heineken is making use of ______________ segmentation. 1 geographic 2 demographic 3 psychographic 4 behavioural QUESTION 3 Pg 440 Heineken is making use of its strong brand presence to launch the new beer, Radler. Which one of the following represents the last phase of brand loyalty the consumer will move through? 1 Brand recognition 2 Brand preference 3 Brand insistence 4 Brand activation QUESTION 4 Pg 446 During the development of the new product, Radler, Heineken would have gone through several phases of new product development. Which one of the following represents phase 4 of the new product development process? 1 Physical product is developed. 2 Product ideas are developed. 3 Product ideas are screened. 4 Non-viable product ideas are eliminated. QUESTION 5 Pg 442 Heineken would have made several decisions regarding the packaging to be used for the new Radler beer. Which one of the following is NOT a relevant factor in the choice of packaging design? 1 Reusable packaging 2 Packaging materials 3 The shape of the package 4 Packaging sizes QUESTION 6 Pg 435 Linsey is graduating at the end of the year and her dad would like to purchase a fountain pen for her as a special graduation gift. He decides to purchase a Mont Blanc stainless steel pen. The ____________ product in this case would refer to a stainless steel pen that has a stainless steel casing with a fountain-point tip which meets the need to communicate. 1 core 2 formal 3 need-satisfying 4 total QUESTION 7 The trademark, Mont Blanc, and the specific packaging Mont Blanc uses for their fountain pens would contribute to the _____________ product. 1 core 2 formal 3 need-satisfying 4 total QUESTION 8 Pg 436 Leanda has picked up a nasty cough and needs to purchase some cough syrup. She easily finds some at her local grocery store and discovers that the variety of brands, although limited, are homogeneously priced. As which type of consumer product can cough syrup be classified? 1 Convenience product 2 Shopping product 3 Speciality product 4 Grudge product QUESTION 9 Lux, Dove and Knorr are all products sold through Unilever. However, each product has a separate marketing communication strategy which is aimed at a specific target market. What type of brand would Lux, Dove and Knorr be? 1 Family brand 2 Generic brand 3 Individual brand 4 Dealer brand QUESTION 10 Pg 472 There are five primary dimensions to service that affect customers’ perception of the service they have received. Customers want care and concern and desire to be treated as individuals. To which dimension does this refer? 1 Assurance 2 Empathy 3 Responsiveness 4 Reliability QUESTION 11 Pg 482 IBM increased the 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? 1 Reduce the number of shares. 2 Reduce equity. 3 Decrease sales. 4 Review assets. QUESTION 12 Pg 484 IBM recorded a net income of $99 870 for 2010. The income of a business primarily consists of receipts resulting from the _________________. 1 sale of its products/services 2 acquisition of assets 3 interest earned on investments 4 favourable difference between sales and the costs incurred to earn that sale QUESTION 13 Pg 498 Which one of the following options from IBM’s statement of financial performance correctly completes the following statement? Net income (sales) less _____________ is gross profit. 1 returns and cash discount 2 cost of products sold 3 operating costs 4 interest QUESTION 14 The most common expenses accrued by businesses, such as IBM, are ___________. 1 bank overdrafts and interest 2 wages and trade credit 3 invoice discounts and salaries 4 wages and taxes QUESTION 15 Pg 508 If IBM used the actual income and expenditure of the previous year as a basis for budgeting purposes, which budgeting approach would IBM be using? 1 Traditional budgeting 2 Zero-base budgeting 3 Financial budgeting 4 Operating budgeting QUESTION 16 Pg 485 Which one of the following costs CANNOT be classified as a fixed cost? 1 Salaries 2 Factory rental 3 Materials 4 Depreciation QUESTION 17 Pg 486 What is the profit/loss of Balls Galore? 1 R35 000 2 R27 500 3 R12 500 4 R5 000 QUESTION 18 Pg 511 Which one of the following is an element of the cash budget? 1 Cash disbursements 2 Credit receipts 3 Gross changes in cash 4 Debentures QUESTION 19 Pg 513 Paul is the owner of a sport store that specialises in extreme sports such as paragliding and wakeboarding. To entice customers to spend more he has recently launched store credit, subject to approval. Which one of the following is a cost of granting credit that Paul has to be aware of? 1 Loss of interest 2 Insurance cost 3 The loss of customer goodwill 4 Loss of flexibility QUESTION 20 Pg 519 - 521 The net present value (NPV) helps a company decide whether it should pursue certain investment opportunities or not. Which one of the following would be the decision criteria for a large shopping mall if the NPV is found to be 1 340? 1 Accept – the initial investment amount and an addition to the value of the business can be sustained by the cash flow of the project. 2 Accept – the initial investment amount can be sustained by the cash flow of the project, although no addition to the value of the business is made. 3 Reject – the initial investment amount cannot be redeemed by the cash flow of the project. 4 Reject – the initial investment amount can be sustained by the cash flow of the project, but no addition to the value of the business is made. QUESTION 21 pg 562 ABC Fashions is a clothing store where materials are used on an irregular basis and acquiring materials can be planned far in advance on the basis of sales forecasts. Which one of the following inventory control systems will be the best one to use in this enterprise? 1 The system of fixed order quantities 2 The materials requirement planning system 3 The just-in time system 4 The cyclical ordering system QUESTION 22 pg 568 During recessions, there is a favourable buyers’ market and materials can be bought at lower prices. This is an example of which factor influencing the scheduling of purchases? 1 Internal factor 2 Economic factor 3 External factor 4 Speculative factor QUESTION 23 Pg 567 The time at which purchases are made often determines the price paid for materials. Which one of the following is NOT an aim of buying at the right time? 1 To ensure that the business is supplied on an ongoing basis with materials and services required for operations. 2 To reduce the risk of price fluctuations. 3 To reduce the amount of capital investment required. 4 To keep inventory-holding at an optimal level. QUESTION 24 ______________ PG 567 are quick and informal and are used for both standard materials and non-standard materials with a high value. 1 Tenders 2 Quotations 3 Negotiations 4 Price lists QUESTION 25 PG 566 Which of the following are attributes of strategic-supplier alliances? a Risk and benefit sharing b Interdependence c Joint quality-improvement efforts d Trust e Low involvement 1 a b c d 2 a c d e 3 c d e 4 b c d e QUESTION 26 Pg 562 Toyota aims to keep their inventory to the minimum. This means nothing is produced until the customer requests it, and subsequently nothing is purchased until the production process begins and materials are requested from the supplier. What is the system used by Toyota called? 1 System of fixed order quantities 2 Cyclical ordering system 3 Materials-requirements planning (MRP) system 4 Just-in-time (JIT) system QUESTION 27 PG 564 The selection of Toyota’s suppliers forms a crucial part of purchasing and supply management. Which one of the following would occur last during the selection process? 1 A shortlist is compiled. 2 Continuous evaluation of supplier performance. 3 Final choice of the supplier is made. 4 Requests for quotes are submitted. QUESTION 28 Pg 545 Toyota does not only purchase parts from suppliers, but also develops suppliers’ capabilities. Supplier development will occur at which level of purchasing and supply planning? 1 Strategic level 2 Tactical level 3 Operational level 4 Functional level QUESTION 29 Pg 546 Toyota might have a purchasing and supply objective to seek new and larger suppliers. The business objective from which this objective was derived is to ____________________. 1 retain the market share 2 move from the speciality market to the general market 3 develop an overall production capacity plan 4 initiate a cost-reduction plan QUESTION 30 Pg 547 If each Toyota plant does its own purchasing of parts, a ___________ purchasing and supply structure is used. 1 centralised 2 decentralised 3 combination of centralised and decentralised 4 hierarchical