BSM1602 EXAM PACK

1 BSM1602 Business Management 1B This document is a compilation of UNISA Questions and Answers for BSM1602 Answers are motivated by a combination of: Page references to the UNISA Study Guide and/or Prescribed Textbook: Short summaries and/or content from the Guide regarding the relevant topic(s) in question. (Incorrect options are also marked where applicable, in order to identify and disregard red‐herring alternatives) Assignments and Exams: All Assignments from 2017 and 2020 are covered: Exams covered are: • May June (2016) • May June (2017) • Oct Nov (2017) • May June (2018) • Oct Nov (2018) • May June (2019) • Oct Nov (2019) Please note: This document is an additional tool for exam preparation. The Stuvia‐user that compiled and uploaded this document takes no responsibility for incorrect answers. Students must ensure that they study the prescribed material and understand the content. BSM1602 EXAM PACK 2 BSM1602 Business Management 1B Table of Contents Assignment 01 – Semester 01 – 2017 ..................................................................................................... 3 Assignment 02 – Semester 01 – 2017 ................................................................................................... 10 Assignment 01 – Semester 02 – 2017 ................................................................................................... 26 Assignment 02 – Semester 02 – 2017 ................................................................................................... 33 Exam May‐June 2016 ............................................................................................................................ 57 Exam May‐June 2017 .......................................................................................................................... 125 Exam October‐November 2017 .......................................................................................................... 153 Exam May‐June 2018 .......................................................................................................................... 179 3 BSM1602 Business Management 1B Assignment 01 – Semester 01 – 2017 Chapter 1: Introduction to business management for the entrepreneur Question 1 Effective supervision and motivation of employees within an enterprise, refers to _______ as a fundamental management task. 1) planning 2) leading 3) organising 4) control Answer: The correct answer is 2 Refer: Tutorial letter 201/1/2017; Prescribed Textbook, pg. 4 Reasoning: Effective supervision and motivation of employees within an enterprise, refers to leading as a fundamental management task. Question 2 Which one of the following statements is NOT correct? 1) Public enterprises are created to make a profit. 2) Public enterprises are funded by provincial administrations. 3) Public enterprises are responsible for providing the basic requirements for efficient functioning of the economy. 4) Public enterprises are funded by government and local authorities. Answer: The correct answer is 1 Refer: Tutorial letter 201/1/2017; Prescribed Textbook, pg. 8 Reasoning: Public enterprises are funded and managed by government, provincial administrations or local authorities, and they are not created to make a profit. Public enterprises are responsible for providing the basic requirements for the efficient functioning of the economy and meeting the needs of the society. Option 1 is therefore incorrect as public enterprises are not created to make a profit. Chapter 2: The general management function Question 3 The process of transferring responsibilities for a specific business function from an employee group to a non‐employee group, is known as _______. 1) public relations 2) organising 3) outsourcing 4) globalization Answer: The correct answer is 3 Refer: Tutorial letter 201/1/2017; Prescribed Textbook, pg. 20 4 BSM1602 Business Management 1B Reasoning: Outsourcing is the process of transferring responsibilities for a specific business function from an employee group to a non‐employee group. Question 4 Which one of the following problem‐solving techniques would be the best to use if individuals want to act independently, and the ideas of each individual are sought? 1) The Delphi technique 2) The nominal group technique 3) Brainstorming 4) Fishbone diagrams Answer: The correct answer is 2 Refer: Tutorial letter 201/1/2017; Prescribed Textbook, pg. 41 Reasoning: When following the Nominal Group Technique to solve problems, the staff members involved are only a group in name. All the members of the group act independently, and the ideas of individuals are sought, not the ideas of the group as a whole. Chapter 3: The financial function Question 5 The ratio that will measure how efficiently profits are being generated from the assets employed in the enterprise, is known as the _______ ratio. 1) return on assets 2) net profit margin 3) gross profit margin 4) return on equity Answer: The correct answer is 1 Refer: Tutorial letter 201/1/2017; Prescribed Textbook, pg. 61 Reasoning: The return on assets ratio is a measure of an enterprise’s success in earning a return for all providers of capital. This ratio also measures how efficiently profits are being generated from the assets employed in the enterprise, with its own previous performance or with enterprises in a similar industry. Question 6 During which step, of the development of effective long‐term plans, would you identify ways to improve the enterprises’ productivity and profitability? 1) Step 2 2) Step 3 3) Step 4 4) Step 5 Answer: The correct answer is 4 Refer: Tutorial letter 201/1/2017; Prescribed Textbook, pg. 71 5 BSM1602 Business Management 1B Reasoning: To develop effective and long‐term plans, one should take the following steps: determine your personal objectives and how they affect your willingness and ability to pursue financial goals for your business; set goals and objectives for the business; develop long‐range plans that enable you to attain your goals and objectives; focus on the financial, human and physical requirements; study methods of operation in order to identify ways to improve the business’s productivity and profitability. Chapter 4: The marketing function Question 7 Which one of the following statements is correct? 1) A mission statement is an enterprise’s declaration of its reason for being. 2) A vision statement defines the fundamental unique purpose of the enterprise. 3) A mission statement only identifies the products, services and customers of an enterprise. 4) A vision statement gives direction to possible realistic business objectives. Answer: The correct answer is 1 Refer: Tutorial letter 201/1/2017; Prescribed Textbook, pg. 105 Reasoning: An enterprise is defined by its mission statement. Only a clear definition of the mission and purpose of an enterprise makes realistic business objectives possible. The mission statement defines the fundamental unique purpose of the enterprise. A mission statement does not only identify the products, services and customers. Option 1 is therefore the only correct option. Question 8 Which one of the following is NOT a criterion on which a market can be evaluated? 1) Size of the market 2) Level of completion 3) Market growth potential 4) Geographical location Answer: The correct answer is 4 Refer: Tutorial letter 201/1/2017; Prescribed Textbook, pg. 113 Reasoning: The criteria used to evaluate market attractiveness are: size of the market, growth potential of the market, how easy it is to reach customers, whether customers can afford the product, how easy it is to enter the market and level of competition. Geographical location is not one of the criteria used to evaluate market attractiveness. Option 2 should however have read: level of competition. Due to this typing error, this question was not marked and all students were awarded the mark. Chapter 5: Operations management Question 9 The primary functions of operations management are: a) Production planning and control