Mnb1501 Exam Prep

MNB1501 TEST BANK

QUESTION 1

Which of the following statements on the economic principle are correct?

a) Ensuring the highest possible satisfaction of needs with scarce resources is
known as the economic principle.
b) The economic principle refers to a business‟s endeavour to keep its input
costs as high as possible.
c) Businesses that apply the economic principle try to achieve the highest
possible income.
d) The economic system is not subject to the economic principle.

1. a Correct answer Option 1
2. acd
3. bcd
4. cd

Read case study 2 “The airline industry – developing value-based competition
in the South African airline market” (page 13 in your prescribed book “Business
Cases”) and answer questions 2 to 4.

QUESTION 2

Part of Kulula‟s mission statement states “where possible, we provide our staff with
the best opportunities to develop their skills, and take their abilities to new heights in
the service of our customers.” Kulula therefore satisfies the ________________ of
their employees.
1. Physiological needs
2. Security needs
3. Social needs
4. Esteem needs
5. Self-realisation needs Correct answer Option 5

QUESTION 3

The resources used by low-cost airlines include _________________.
a) natural resources
b) human resources
c) capital resources
d) entrepreneurship/management

1. a b c d Correct answer Option 1
2. ab
3. abc
4. bcd




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,QUESTION 4

Sally buys cocoa from South America and uses it to make 90% dark chocolate that
she sells in her stores located throughout South Africa. Which element of business
does Sally deal with here?
1. Human activities
2. Transformation Correct answer Option 2
3. Exchange
4. Profit

Read case study 4 “MXit – Using disruptive techonology to build new mobile
social networks” (page 56 in your prescribed book “Business Cases”) and answer
questions 5 to 7.


QUESTION 5

Which need of its customers did MXit focus on satisfying?
1. Self-realisation needs
2. Esteem needs
3. Social needs Correct answer Option 3
4. Security needs


QUESTION 6

When Herman Heunis came up with the idea of the MXit concept, he first had to
evaluate whether his business venture would be viable. He therefore needed to
__________________.
1. conduct a feasibility study Correct answer Option 1
2. compile a business plan
3. identify whether he would have access to resources
4. clarify whether he had what it takes to start the new business

QUESTION 7

As an entrepreneur, Herman Heunis needed the ability to evaluate the offering of his
business and features, and to determine how he would satisfy customers‟ needs and
wants. Which management skill is referred to here?
1. Human resources skills
2. Marketing skills Correct answer Option 2
3. Planning skills
4. Strategic skills

QUESTION 8

Which of the following are fundamental requirements for a good investment
opportunity?
a) There must be a clearly defined market need for the product or service.
b) The opportunity must have the potential to grow.

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, c) The entrepreneur must have ample experience before investing in a new
venture.
d) The opportunity must be rewarding to the investor and/or the entrepreneur.

1. ab
2. abc
3. a b d Correct answer Option 3
4. bcd

QUESTION 9

The entrepreneurial process is the process of identifying, creating or sensing an
opportunity where others do not see it. Arrange the five phases of the
entrepreneurial process in the correct order.
a) Resources
b) Feasibility
c) Opportunities and ideas
d) Entrepreneurial activities and skills
e) Business plan

1. abcde
2. badec
3. d a c b e Correct answer Option 3
4. ecdab

QUESTION 10

Which of the following statements about franchising are correct?
a) Franchisees have the freedom to experiment, operate and market their
business based on their own vision.
b) Franchisees must usually adhere strictly to the plans of the franchisor.
c) Franchisors usually fall in the medium sized to large business category.
d) The franchisor is an entrepreneur.

1. abcd
2. b c d Correct answer Option 2
3. abc
4. ad


QUESTION 11

Which of the following are characteristics of a private company?
a) The number of shareholders is limited to 50 people.
b) Members of the general public may apply for shares in the company.
c) The name of a private company has to end with the words (Pty) Ltd.
d) The transferability of shares in the company is limited.

1. a b c d
2. a b d

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, 3. a c d Correct answer Option 3
4. b c d

Read case study 4 “MXit – Using disruptive technology to build new mobile
social networks” (page 56 in your prescribed book “Business Cases”) and answer
questions 12 and 13.

QUESTION 12

What form of enterprise is MXit?
1. A public company
2. A partnership
3. A close corporation
4. A private company Correct answer Option 4

QUESTION 13

Which characteristic is applicable to an establishment such as MXit?
1. There must be at least two directors in the establishment.
2. MXit can list its shares on the stock exchange.
3. Shares are freely transferable in an establishment such as MXit.
4. The articles of association must contain some restriction on the transferability
of its shares. Correct answer Option 4

QUESTION 14

Thandi is an entrepreneur and wants to open a new venture. Thandi knows she
needs to write up a detailed business plan in order to obtain financing from the bank.
Which two of the following are considerations that Thandi needs to take into
account to determine the amount of planning she needs when writing up the
business plan?

a) Style and ability
b) Capital
c) The micro-environment
d) The level of uncertainty

1. ab
2. ac
3. bc
4. a d Correct answer Option 4

QUESTION 15

In which section of Thandi‟s business plan will she describe the business‟s
customers and type of competition that the business will face?
1. Marketing plan Correct answer Option 1
2. Financial plan
3. Management plan
4. Operating plan

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