MNB1501 - Complete Exam Prep For Distinction 2022

The business world and business management The most important characteristic of the business world in countries that adopt a market economy is 1. That the business involves human activities 2. That the businesses produce predominantly tangible products such as bread, cars and houses 3. That individuals themselves decide what to produce, how to produce and what to price to sell the product 4. That the rationing of products occurs and prices of products are set by the state Read the case below and answer questions 2 & 3 Deregulation within the airline industry was introduced in South Africa in 1991. Before deregulation, SAA was the only service provider on the main domestic airline routes as well as the international routes. The first decade after deregulation resulted in a wave of low cost airline competitions such as Filestar, Sun Air, Phoenix Air, Nationwide 1time and velvet sky entering the domestic market There are several factors in the business world that apply pressure on a modern-day organisation such as SAA. Which one of these factors is depicted in the mini-case study above? 1. Environmental change 2. Consumerism 3. Profitability 4. Corporate social investment SAA functions within a free-market economy, which is characterised by which of the following attributes? a. Private ownership of production factors b. Free competition c. Profit motive recognised d. Limited right to strike in state enterprises 1. Ab 2. Bd 3. Abc 4. Abcd The voluntary compliance of business with practices that are sustainable is known as 1. Business ethics 2. Consumerism 3. Corporate sustainability 4. Corporate social responsibility The function is responsible for acquiring all product and materials that are required by the business to function 1. Operations 2. Purchasing and supply 3. Human resources 4. General management Column A – Economic System Column B - Description a. Free market i. Generally has low productivity and increase the difficulty of proper planning b. Command Economy ii. The main driving force in the market is profit generation c. Socialism iii. The state has full control over production factors thereby increasing competition in the market iv. Employees are free to choose employment and have a limited right in government institutions to participate in strikes The world is divided into 3 basic economic systems and each system and each has its own unique characteristics. Match the