SEMESTER 1 – 2018
ASSIGNMENT 1
STUDY UNIT 1: THE BUSINESS WORLD AND BUSINESS MANAGEMENT
QUESTION 1
Sasol was established in 1950 to make oil from coal. This idea per se was totally out of the box and
attracted worldwide attention. The strategic reason was simple: national self-sufficiency in fuel for a
country without oil. Which one of the following statements regarding the role of business in society
is correct?
1 A business such as Sasol produces products or services for its own use.
2 At the heart of all business activity are banks that provide funding for businesses.
3 A business such as Sasol produces products and services in exchange for money.
4 A business such as Sasol produces predominantly intangible products.
QUESTION 2
In order for Sasol to be sustainable, the core of sustainability for Sasol would involve
______________________.
1 its ability to survive and prosper over long periods of time
2 Sasol striving to ensure excessive short-term profits
3 Sasol striving to make a long-term profit
4 Sasol constantly searching for new ideas, new products and new technologies
QUESTION 3
The South African Broadcasting Corporation (SABC) is seen as a/an ________________.
1 private enterprise
2 public corporation
3 non-profit seeking organisation
4 entrepreneurial enterprise
QUESTION 4
In a ___________________ economy, individuals will need to take the tastes, preferences and
demands of consumers into account when deciding about production and marketing; if they want to
make a profit.
1 market
2 command
3 socialist
4 centrally directed
QUESTION 5
The number of cell phones in South Africa surpasses the number of people living in the country. Cell
phone use in South Africa has increased enormously during the last decade, from 17% of adults in
2000 to 76% in 2010. Besides calling people, South Africans use their cell phones to send text
messages, access social media sites, chat with a group of friends on instant messaging services, and
browse the internet. The need for constant communication with friends is a ______________ need
according to Maslow’s hierarchy of needs.
1 self-actualisation
2 esteem
3 physiological
4 social
,STUDY UNIT 2: ENTREPRENEURSHIP
QUESTION 6
Which one of the following statements about being an entrepreneur is incorrect?
1 The entrepreneur decides what, how, by whom, and for whom products and services should be
produced.
2 Entrepreneurs assume relatively little risk for the success or failure of the business.
3 An entrepreneur is someone who starts a business with the intention of making a profit.
4 An entrepreneur assumes the risk of losing all of his/her resources if the venture fails.
QUESTION 7
Herman Heunis launched MXit in January 2005 as a subscription service. In which step of the
entrepreneurial process would he have needed to assess whether the opportunity can be turned
into a successful venture?
1 When Herman assessed whether he had the resources or access to resources.
2 When Herman conducted a feasibility study.
3 When Herman compiled his business plan.
4 When Herman launched and managed the new business.
QUESTION 8
In order for MXit to be successful, Herman Heunis needed to have the ability to consider the business
as a whole and to understand how it fits within its marketplace. Which skill is referred to here?
1 Strategy skills
2 Planning skills
3 Marketing skills
4 Project management skills
QUESTION 9
One of the reasons why entrepreneurs do what they do is that they have an internal locus of control.
Which one of the following relates to the internal locus of control trait of the entrepreneur?
1 Entrepreneurs have a strong need to be personally responsible for solving problems.
2 There is a strong need to be in charge of his/her own destiny.
3 Entrepreneurs want to create new things.
4 Entrepreneurs often feel that it is necessary to take risks.
QUESTION 10
Which one of the following is an advantage of buying an existing business?
1 Employees are inherited.
2 The image will be difficult to change.
3 There will be an established customer base.
4 The inventory may be obsolete.
STUDY UNIT 3: ESTABLISHING A BUSINESS
It is recommended that you read business case number 2: “Establishing a business: Kiph” (in the
recommended book “Business Cases”) before attempting to answer questions 11 and 12. It is not
compulsory that you do so, as the answers to the assignment questions can be found in
QUESTION 11
Regarding the New Companies Act 71 of 2008, which one of the following changes should
entrepreneurs such as Wes, Dane and Nate from Kiph be aware of?
1 The powers and responsibilities of directors will be increased.
2 The power and responsibilities of directors will be decreased.
3 The rights of shareholders to hold directors accountable and to remove directors have been limited.
4 The burden of the office of director will be decreased as duties and liabilities of directors have been
limited.
,QUESTION 12
Which one of the following is an example of an internal stakeholder within a company such as Kiph?
1 Customers
2 Investors
3 Employees
4 Banks
QUESTION 13
When considering a form of enterprise, what can impose a considerable administrative and financial
burden on the enterprise?
1 Compliance with legal formalities and regulations
2 The potential for capital acquisition
3 Taxation and the rates for income tax
4 An enterprise having total management autonomy
QUESTION 14
Which one of the following statements is NOT true for a business with a legal personality?
1 The business is dependent on its members.
2 The business is recognised as a legal subject alongside natural persons or individuals.
3 The business has its own rights, assets and obligations.
4 The existence of the business is not affected by changes in its membership.
QUESTION 15
Which one of the following statements is true for a partnership?
1 The partnership has a separate estate from its partners and their personal assets.
2 The continued existence of the partnership is not dependent on the legal capacity of the partners.
3 The partnership is regarded as a separate taxpayer.
4 The partners are jointly and severally liable for all claims made against the partnership.
STUDY UNIT 4: THE BUSINESS ENVIRONMENT
QUESTION 16
Andrew’s Copper business manufactures copper wire and sells it to Elec Incorporated, a local
electrical company, who uses the copper in the production of their electrical products such as
televisions and radios. In which market does Andrew’s Copper operate?
1 Government market
2 International market
3 Industrial market
4 Services market
QUESTION 17
You are a business management lecturer and you are explaining to your students that the micro-
environment ______________influences the business and consists of variables such as the
______________.
1 directly; consumers
2 indirectly; technological advancements
3 directly; resources within the business
4 indirectly; mission and objectives of the business
QUESTION 18
The most elementary form of environmental scanning is __________________.
1 to add primary information
2 to update relevant secondary information
3 to establish a scanning unit
4 to scan the business tasks
, It is recommended that you read business case number 3: “The business environment: The
airline industry” (in the recommended book “Business Cases”) before attempting to answer
questions 19 and 20. It is not compulsory that you do so, as the answers to the assignment
questions can be found in ITBM.
QUESTION 19
If an organisation such as Kulula.com has a scanning unit, it would make use of
_____________________.
1 scanning at the more advanced level
2 scanning at intermediate level
3 scanning at an external level
4 scanning in the most elementary form
QUESTION 20
In the _____________ environment, management at Kulula.com would identify, assess, and takes
advantage of opportunities in the market, and develops and adapts its strategies to meet competition.
1 micro-
2 task
3 macro-
4 primary
SEMESTER 1
ASSIGNMENT 2 - 2018
QUESTION 1
If a company such as SAB complies with the spirit of the law, then it means that
___________________.
1 it is doing the bare minimum to avoid sanctions
2 the company is doing what can be reasonably expected to further the objectives of the
legislation
3 the company reduces cost by avoiding fines and legal costs
4 the company improves access to markets, for example, government procurement
QUESTION 2
SAB wants to establish a corporate policy by using a reactive approach which allows stakeholders to
determine what they want from the company and what they consider to be the issues and culture of
the company. Which approach would they be following?
1 A value-based system
2 A stakeholder-engagement process
3 A combination of both a value-based system and a stakeholder-engagement process
4 The corporate governance approach
QUESTION 3
Corporate governance is essentially about __________________.
1 effective leadership
2 the company’s core business activities
3 the creation of employment and training opportunities
4 the company’s contribution through its engagement in public policy
QUESTION 4
Corporate __________ recognises corporations as legal persons with certain rights and
responsibilities in the same way that individual citizens are members of a community.
1 citizenship
2 governance
3 philanthropy
4 social responsibility
ASSIGNMENT 1
STUDY UNIT 1: THE BUSINESS WORLD AND BUSINESS MANAGEMENT
QUESTION 1
Sasol was established in 1950 to make oil from coal. This idea per se was totally out of the box and
attracted worldwide attention. The strategic reason was simple: national self-sufficiency in fuel for a
country without oil. Which one of the following statements regarding the role of business in society
is correct?
1 A business such as Sasol produces products or services for its own use.
2 At the heart of all business activity are banks that provide funding for businesses.
3 A business such as Sasol produces products and services in exchange for money.
4 A business such as Sasol produces predominantly intangible products.
QUESTION 2
In order for Sasol to be sustainable, the core of sustainability for Sasol would involve
______________________.
1 its ability to survive and prosper over long periods of time
2 Sasol striving to ensure excessive short-term profits
3 Sasol striving to make a long-term profit
4 Sasol constantly searching for new ideas, new products and new technologies
QUESTION 3
The South African Broadcasting Corporation (SABC) is seen as a/an ________________.
1 private enterprise
2 public corporation
3 non-profit seeking organisation
4 entrepreneurial enterprise
QUESTION 4
In a ___________________ economy, individuals will need to take the tastes, preferences and
demands of consumers into account when deciding about production and marketing; if they want to
make a profit.
1 market
2 command
3 socialist
4 centrally directed
QUESTION 5
The number of cell phones in South Africa surpasses the number of people living in the country. Cell
phone use in South Africa has increased enormously during the last decade, from 17% of adults in
2000 to 76% in 2010. Besides calling people, South Africans use their cell phones to send text
messages, access social media sites, chat with a group of friends on instant messaging services, and
browse the internet. The need for constant communication with friends is a ______________ need
according to Maslow’s hierarchy of needs.
1 self-actualisation
2 esteem
3 physiological
4 social
,STUDY UNIT 2: ENTREPRENEURSHIP
QUESTION 6
Which one of the following statements about being an entrepreneur is incorrect?
1 The entrepreneur decides what, how, by whom, and for whom products and services should be
produced.
2 Entrepreneurs assume relatively little risk for the success or failure of the business.
3 An entrepreneur is someone who starts a business with the intention of making a profit.
4 An entrepreneur assumes the risk of losing all of his/her resources if the venture fails.
QUESTION 7
Herman Heunis launched MXit in January 2005 as a subscription service. In which step of the
entrepreneurial process would he have needed to assess whether the opportunity can be turned
into a successful venture?
1 When Herman assessed whether he had the resources or access to resources.
2 When Herman conducted a feasibility study.
3 When Herman compiled his business plan.
4 When Herman launched and managed the new business.
QUESTION 8
In order for MXit to be successful, Herman Heunis needed to have the ability to consider the business
as a whole and to understand how it fits within its marketplace. Which skill is referred to here?
1 Strategy skills
2 Planning skills
3 Marketing skills
4 Project management skills
QUESTION 9
One of the reasons why entrepreneurs do what they do is that they have an internal locus of control.
Which one of the following relates to the internal locus of control trait of the entrepreneur?
1 Entrepreneurs have a strong need to be personally responsible for solving problems.
2 There is a strong need to be in charge of his/her own destiny.
3 Entrepreneurs want to create new things.
4 Entrepreneurs often feel that it is necessary to take risks.
QUESTION 10
Which one of the following is an advantage of buying an existing business?
1 Employees are inherited.
2 The image will be difficult to change.
3 There will be an established customer base.
4 The inventory may be obsolete.
STUDY UNIT 3: ESTABLISHING A BUSINESS
It is recommended that you read business case number 2: “Establishing a business: Kiph” (in the
recommended book “Business Cases”) before attempting to answer questions 11 and 12. It is not
compulsory that you do so, as the answers to the assignment questions can be found in
QUESTION 11
Regarding the New Companies Act 71 of 2008, which one of the following changes should
entrepreneurs such as Wes, Dane and Nate from Kiph be aware of?
1 The powers and responsibilities of directors will be increased.
2 The power and responsibilities of directors will be decreased.
3 The rights of shareholders to hold directors accountable and to remove directors have been limited.
4 The burden of the office of director will be decreased as duties and liabilities of directors have been
limited.
,QUESTION 12
Which one of the following is an example of an internal stakeholder within a company such as Kiph?
1 Customers
2 Investors
3 Employees
4 Banks
QUESTION 13
When considering a form of enterprise, what can impose a considerable administrative and financial
burden on the enterprise?
1 Compliance with legal formalities and regulations
2 The potential for capital acquisition
3 Taxation and the rates for income tax
4 An enterprise having total management autonomy
QUESTION 14
Which one of the following statements is NOT true for a business with a legal personality?
1 The business is dependent on its members.
2 The business is recognised as a legal subject alongside natural persons or individuals.
3 The business has its own rights, assets and obligations.
4 The existence of the business is not affected by changes in its membership.
QUESTION 15
Which one of the following statements is true for a partnership?
1 The partnership has a separate estate from its partners and their personal assets.
2 The continued existence of the partnership is not dependent on the legal capacity of the partners.
3 The partnership is regarded as a separate taxpayer.
4 The partners are jointly and severally liable for all claims made against the partnership.
STUDY UNIT 4: THE BUSINESS ENVIRONMENT
QUESTION 16
Andrew’s Copper business manufactures copper wire and sells it to Elec Incorporated, a local
electrical company, who uses the copper in the production of their electrical products such as
televisions and radios. In which market does Andrew’s Copper operate?
1 Government market
2 International market
3 Industrial market
4 Services market
QUESTION 17
You are a business management lecturer and you are explaining to your students that the micro-
environment ______________influences the business and consists of variables such as the
______________.
1 directly; consumers
2 indirectly; technological advancements
3 directly; resources within the business
4 indirectly; mission and objectives of the business
QUESTION 18
The most elementary form of environmental scanning is __________________.
1 to add primary information
2 to update relevant secondary information
3 to establish a scanning unit
4 to scan the business tasks
, It is recommended that you read business case number 3: “The business environment: The
airline industry” (in the recommended book “Business Cases”) before attempting to answer
questions 19 and 20. It is not compulsory that you do so, as the answers to the assignment
questions can be found in ITBM.
QUESTION 19
If an organisation such as Kulula.com has a scanning unit, it would make use of
_____________________.
1 scanning at the more advanced level
2 scanning at intermediate level
3 scanning at an external level
4 scanning in the most elementary form
QUESTION 20
In the _____________ environment, management at Kulula.com would identify, assess, and takes
advantage of opportunities in the market, and develops and adapts its strategies to meet competition.
1 micro-
2 task
3 macro-
4 primary
SEMESTER 1
ASSIGNMENT 2 - 2018
QUESTION 1
If a company such as SAB complies with the spirit of the law, then it means that
___________________.
1 it is doing the bare minimum to avoid sanctions
2 the company is doing what can be reasonably expected to further the objectives of the
legislation
3 the company reduces cost by avoiding fines and legal costs
4 the company improves access to markets, for example, government procurement
QUESTION 2
SAB wants to establish a corporate policy by using a reactive approach which allows stakeholders to
determine what they want from the company and what they consider to be the issues and culture of
the company. Which approach would they be following?
1 A value-based system
2 A stakeholder-engagement process
3 A combination of both a value-based system and a stakeholder-engagement process
4 The corporate governance approach
QUESTION 3
Corporate governance is essentially about __________________.
1 effective leadership
2 the company’s core business activities
3 the creation of employment and training opportunities
4 the company’s contribution through its engagement in public policy
QUESTION 4
Corporate __________ recognises corporations as legal persons with certain rights and
responsibilities in the same way that individual citizens are members of a community.
1 citizenship
2 governance
3 philanthropy
4 social responsibility
