MNB1501 - 2018
Semester 2
Ass 1 & 2 Answers + Feedback
Assignment 1
STUDY UNIT 1: THE BUSINESS WORLD AND BUSINESS MANAGEMENT
QUESTION 1
The correct answer is option 4.
The task of business management relates to the economic principle, namely to achieve the highest possible
satisfaction of needs with scarce resources. More specifically, it entails an examination of factors, methods
and principles that enable a business to function as efficiently and productively as possible in order to
maximise its profits.
If your answer was wrong, refer to section 1.3.3 in the 10th edition of Introduction to Business Management
(ITBM).
QUESTION 2
The correct answer is option 1.
Deregulation of the airline industry was a decision made by government in 1991. This was a variable in the
macro-environment as government affects the business environment and business enterprises in a
regulating capacity. Thus, an environmental change took place in the macro-environment and the correct
answer is option 1.
If your answer was wrong, refer to section 1.2 in the 10th edition of ITBM.
QUESTION 3
The correct answer is option 3.
The free-market economy, also known as the free-enterprise system is a system in which most products
and services demanded by a community are supplied by private organisations seeking profits. The main
characteristics of this system are:
- There is private ownership of the factors of production.
- There is freedom of choice.
- Free competition exists.
- Profit and reward are achieved according to individual ability and therefore the profit motive
is recognised.
- Workers are free to join a union and to strike.
,If your answer was wrong, refer to section 1.4.2 in the 10th edition of ITBM.
QUESTION 4
The correct answer is option 4.
This was a straightforward question and merely required you to know the definition of the concept of social
responsibility.
The term social responsibility is a concept that originated in media revelations of malpractice by businesses
and the resultant insistence of society on restricting such malpractice through regulation.
If your answer was wrong, refer to section 1.2 in the 10th edition of ITBM.
QUESTION 5
The correct answer is option 4.
This question dealt with the different resources that are required to start a new business namely; natural
resources, human resources, capital and entrepreneurship.
If we look at the options, the land that is diamond-rich is part of minerals and metals which are natural
resources, therefore a is linked to (i). The managers that need to be appointed to run the mine form part
of Marcus’s human resources, therefore b is linked to (ii). The equipment that Marcus is leasing is capital
that is needed; therefore, c is linked to (iii). Although Marcus will need to monitor the economic
environment, this is not a resource but rather part of the planning function of management. The risks
Marcus is accepting as part of starting a mine refer to the entrepreneurship resource and therefore d is
linked to (v).
If your answer was wrong, refer to section 1.3.2 in the 10th edition of ITBM.
2
, STUDY UNIT 2: ENTREPRENEURSHIP
QUESTION 6
The correct answer is option 2.
Outsourcing occurs when work is done for a company by people other than the company’s fulltime
employees. In the scenario, SAB no longer used their own trucks to distribute the beer, but rather hired
owner-drivers of trucks to distribute their beer, and thus the distribution of beer was outsourced to the
owner-drivers of trucks.
If your answer was wrong, please refer to section 2.6.3 in the 10th edition of ITBM.
QUESTION 7
The correct answer is option 3.
This question dealt with the various management skills that entrepreneurs need within the particular
environment that they operate.
Planning skills involves the ability to consider what the future might offer, how this will impact on the
business, and which resources and actions are necessary to prepare for it.
If your answer was wrong, refer to section 2.7.1 in the 10th edition of ITBM.
QUESTION 8
The correct answer is option 1.
Entrepreneurs generally do what they do because they seek opportunities that arise out of outsourcing,
have experience in a particular industry, are comfortable with risk-taking and are achievement motivated.
Thus, the only correct option is Lucy who starts a company due to the fact that the insurance firm
outsourced their cleaning to her.
If your answer was wrong, refer to section 2.6.1 in the 10th edition of ITBM.
QUESTION 9
The correct answer is option 2.
An internal locus of control indicates a person’s need to be in charge of his or her own destiny. Whereas an
external locus of control indicates that a person believes that, the outcome of an event is primarily out of
his or her personal control. Therefore, option 1 is incorrect as it refers to an external locus of control.
Achievement motivation refers to a person who is attracted to a job that challenges their skills and problem-
solving abilities and therefore option 3 is incorrect. A person’s ability to create something new or original
refers to entrepreneurs being innovative and creative and therefore option 4 is incorrect.
3
Semester 2
Ass 1 & 2 Answers + Feedback
Assignment 1
STUDY UNIT 1: THE BUSINESS WORLD AND BUSINESS MANAGEMENT
QUESTION 1
The correct answer is option 4.
The task of business management relates to the economic principle, namely to achieve the highest possible
satisfaction of needs with scarce resources. More specifically, it entails an examination of factors, methods
and principles that enable a business to function as efficiently and productively as possible in order to
maximise its profits.
If your answer was wrong, refer to section 1.3.3 in the 10th edition of Introduction to Business Management
(ITBM).
QUESTION 2
The correct answer is option 1.
Deregulation of the airline industry was a decision made by government in 1991. This was a variable in the
macro-environment as government affects the business environment and business enterprises in a
regulating capacity. Thus, an environmental change took place in the macro-environment and the correct
answer is option 1.
If your answer was wrong, refer to section 1.2 in the 10th edition of ITBM.
QUESTION 3
The correct answer is option 3.
The free-market economy, also known as the free-enterprise system is a system in which most products
and services demanded by a community are supplied by private organisations seeking profits. The main
characteristics of this system are:
- There is private ownership of the factors of production.
- There is freedom of choice.
- Free competition exists.
- Profit and reward are achieved according to individual ability and therefore the profit motive
is recognised.
- Workers are free to join a union and to strike.
,If your answer was wrong, refer to section 1.4.2 in the 10th edition of ITBM.
QUESTION 4
The correct answer is option 4.
This was a straightforward question and merely required you to know the definition of the concept of social
responsibility.
The term social responsibility is a concept that originated in media revelations of malpractice by businesses
and the resultant insistence of society on restricting such malpractice through regulation.
If your answer was wrong, refer to section 1.2 in the 10th edition of ITBM.
QUESTION 5
The correct answer is option 4.
This question dealt with the different resources that are required to start a new business namely; natural
resources, human resources, capital and entrepreneurship.
If we look at the options, the land that is diamond-rich is part of minerals and metals which are natural
resources, therefore a is linked to (i). The managers that need to be appointed to run the mine form part
of Marcus’s human resources, therefore b is linked to (ii). The equipment that Marcus is leasing is capital
that is needed; therefore, c is linked to (iii). Although Marcus will need to monitor the economic
environment, this is not a resource but rather part of the planning function of management. The risks
Marcus is accepting as part of starting a mine refer to the entrepreneurship resource and therefore d is
linked to (v).
If your answer was wrong, refer to section 1.3.2 in the 10th edition of ITBM.
2
, STUDY UNIT 2: ENTREPRENEURSHIP
QUESTION 6
The correct answer is option 2.
Outsourcing occurs when work is done for a company by people other than the company’s fulltime
employees. In the scenario, SAB no longer used their own trucks to distribute the beer, but rather hired
owner-drivers of trucks to distribute their beer, and thus the distribution of beer was outsourced to the
owner-drivers of trucks.
If your answer was wrong, please refer to section 2.6.3 in the 10th edition of ITBM.
QUESTION 7
The correct answer is option 3.
This question dealt with the various management skills that entrepreneurs need within the particular
environment that they operate.
Planning skills involves the ability to consider what the future might offer, how this will impact on the
business, and which resources and actions are necessary to prepare for it.
If your answer was wrong, refer to section 2.7.1 in the 10th edition of ITBM.
QUESTION 8
The correct answer is option 1.
Entrepreneurs generally do what they do because they seek opportunities that arise out of outsourcing,
have experience in a particular industry, are comfortable with risk-taking and are achievement motivated.
Thus, the only correct option is Lucy who starts a company due to the fact that the insurance firm
outsourced their cleaning to her.
If your answer was wrong, refer to section 2.6.1 in the 10th edition of ITBM.
QUESTION 9
The correct answer is option 2.
An internal locus of control indicates a person’s need to be in charge of his or her own destiny. Whereas an
external locus of control indicates that a person believes that, the outcome of an event is primarily out of
his or her personal control. Therefore, option 1 is incorrect as it refers to an external locus of control.
Achievement motivation refers to a person who is attracted to a job that challenges their skills and problem-
solving abilities and therefore option 3 is incorrect. A person’s ability to create something new or original
refers to entrepreneurs being innovative and creative and therefore option 4 is incorrect.
3
