Student Number‐SECTIONA.docx

Student Number: ‐
SECTIONA
/50
SECTIONB
/75

SECTIONC
/75
TOTAL
/200
MAN681-1-1
1
Student Number: ‐
SUMMATIVEASSESSMENT3(MODULES7&8):ENTREPRENE
URSHIP

SECTIONA:SHORTQUESTIONS
Question1:SelectfromcolumnAthecorrectanswertomatchcolumnB
.
Match the concepts in column A with the descriptions in column
B:
A
Statement:B
Nr:
YourAnswers:
a) Economics
1.1 Business cycle, inflation, and recession
1.1
b) Micro economics

1.2 Economy as a whole, supply and demand for money, capital
and commodities
1.2
c) Economic factors
1.3 Individual agents such as households and businesses
1.3
d) Macro economics
1.4 Production, distribution, trade and consumption of goods
and services
1.4
e) Free Market economy

1.5 All transfers of money, goods and services are devoid of
coercion and theft
1.5
Total question 1
/5
Question2:SelectfromcolumnAthecorrectanswertomatchcolumnB
.
Match the factors that influence the form of business ownership
in column A with the descriptions in column B:
A
Statement:B
Nr:

YourAnswers:
a) Liability and accountability
2.1 Lifespan of the business.
2.1
b) Continuity
2.2 Separate (from owner) legal entity.
2.2
c) Legal personality
2.3 Statutory requirements that must be complied with.
2.3

d) Legal requirements
2.4 Requirements on how financial record must be kept
2.4
e) Accounting requirements
2.5 Responsibility for possible debts and other legal obligations
of a business.
2.5
Total question 2
/5

2
(
3
)
Student Number:
‐
Question3:Readeachstatementcarefullythenstatetrueorfalseinthes
paceprovided.
Nr:
Statement:

Your
3.1
An entrepreneur is a high risk-taker who will enthusiastically
embrace a new or original concept that has not been tried
before.
3.2
Large corporate companies, in most of the successful world
economies are the biggest contributors to job creation.
3.3
Entrepreneurs have the freedom to choose and make their own
decisions—they answer to no-one.
3.4
All SMMEs are owned or managed by entrepreneurs.
3.5

Entrepreneurs are also small business managers as they manage
their own enterprises to ensure permanence and growth.
3.6
Innovation deals with finding an idea for a new product.
3.7
A viability study is an in-depth investigation of the profitability
of a business idea to be converted into a business enterprise.
3.8
A feasibility study largely focuses on the entrepreneur’s ability
to convert an idea into a small business enterprise.
3.9
General Motors practises niche marketing when it sells specific
models for different income and age groups

3.10
Nike practises segment marketing by selling athletic gear for
basketball, running, and soccer.
Total question 3
/10
Question4:ChoosetheCORRECTanswerbyselectingaorb.
Nr:
Statement:
YourAnswers
4.1
‘Customised marketing’ involves …

a) Tailoring brands and promotions to the needs and wants of
local customer groups.
b) Tailoring products and marketing programs to the needs
and preferences of individual customers.
4.2
Demographic segmentation consists of ...
a) Dividing the market into groups based on variables such as
income and nationality.
b) Dividing the market into groups based on variables such as
social class and life style.
4.3
Shopping products are products that ...
a) Consumers consume regularly and purchase frequently.
b) Consumers spend more time on to locate since they are
relatively more expensive.

4.4
A referenced price serves as an ___ standard against which the
customer evaluates other prices.
a) internal or
b) external
4.5
When some businesses set high initial prices to attract first-time
buyers who are willing to pay a premium price to own the new
product, it is called ...
a) Penetration pricing
b) Price skimming.
Total question 5
/5

Student Number: ‐
Question5:Choosetheappropriatewordorconceptforthefollowings
tatements.Selectonlyonefromthelistbelowforeachstatementandwr
itedownthecorrespondingletter(a/b/cetc.)intheanswercolumn.
a. Advertising
b. Sponsorship
c. Publicity
d. Sales promotion
e. Personal selling
Nr:
Statement:
YourAnswers:
5.1
News reports about a new, tasty, nutritious dieting product.
5.2

Designed to intensify the efforts of the sales force and make it
easier to generate sales.
5.3
Non-personal, paid marketing message.
5.4
Primarily involves the relationship and interaction between
buyer and seller.
5.5
Financial support provided by a company in return for the rights
to use the company’s name (brand) and logo in connection with
a specific event
Total question 5
/5

Question6:Choosetheappropriatewordorconceptforthefollowings
tatements.Selectonlyonefromthelistbelowforeachstatementandwr
itedownthecorrespondingletter(a/b/cetc.)intheanswercolumn.
Operationsmanagement:
a. Productivity
b. Capacity
c. Batch production
d. Mass production
e. Job production
Nr:
YourAnswers:
6.1
Manufacturing a number of identical items either to meet a
specific order or to meet a continuous demand.

6.2
Products are made to satisfy a specific order from a customer.
6.3
The efficiency with which an organisation turns production
inputs into outputs.
6.4
The greatest possible workload that a business can handle
within a certain period.
6.5
Manufacturing the same type of product to meet the continuous
demand for that specific product.
Total question 6

/5
4
Student Number: ‐
Question7: Choose the CORRECT answer by selecting aorb.
Nr:
Statementorquestion:
Nr:
YourAnswers
7.1
One of the internal factors that influence Human resource
planning is ... a) The nature of the work or b) Trade union
requirements
7.1

7.2
…refers to the situation when people leave the company, for
whatever reason. a) Net change or b) Attrition
7.2
7.3
… refers to the way tasks are combined to form complete jobs
a) Job enrichment or b) Job design
7.3
7.4
Aptitude tests are designed to …
a) Measure the candidate’s ability to learn specific jobs or
skills or

b) Determine how well the candidate is able to do the job.
7.4
7.5
Choosing the most suitable candidate from a pool of candidates
is called ... a) screening or b) selection
7.5
Total question 7
/5
Question8: Match the concepts in column A with the
descriptions in column B:
A
Statement:B

Nr:
YourAnswers:
a) Current asset
8.1 Return on investment
8.1
b) Capital
8.2 The ability of an enterprise to pay off all its liabilities if it
should stop to operating at any given time.
8.2
c) Profitability
8.3 Money needed to acquire vehicles, manufacturing
equipment, etc. Sometimes called liabilities.

8.3
d) Liquidity
8.4 Owned by the enterprise and can be turned into cash within
12 months
8.4
e) Solvency
8.5 The ability of an enterprise to pay its short-term financial
commitments continuously and on time.
8.5
Total question 8

/5
Question9:Readeachstatementcarefullythenstatetrueorfalseinthes
paceprovided.
Nr:
Statement:
YourAnswers
9.1
Return on equity indicates the profitability of the business as a
whole.
9.2
Trade credit is a form of current capital.
9.3
A profitable small business can go bankrupt as result of

liquidity problems.
9.4
Factoring, a form of medium-term finance, is not readily
available to small businesses.
9.5
Mortgage bonds can be used to acquire furniture and fittings for
a business.
Total question 9
/5
TOTAL:SECTIONA
/50
5

SUMMATIVEASSESSMENT3(MODULES7&8):ENTREPRENE
URSHIP
SECTIONB:APPLICATION/ESSAYQUESTIONS
Nr:
Question:
Mark:
9.
Generate a business idea from everyday activities to start your
own micro business.
a. Explain what product/service you will be providing. What
will the chief activities of this business be? (5)
b. Why do you want to pursue this idea? Do you have the
support and motivation to pursue such an idea? Motivate your
answer. (3)

c. Discuss your target market — who are your customers? (3)
d. Do you have the skills and means to meet your customers’
needs? (3) e. How will you market your idea to your
customers? (3)
f. Explain the difference between the feasibility and viability
of the business idea. (3)
15
10.
Formulate a mission statement as well as 4 long-term objectives
for your business.
10
11.
Prepare a cash budget for the first 2 months of your own
business

10
12.
a. Using the chief activities of your business, do a job
analysis and identify possible jobs / positions in your business
(5)
b. Prepare a job description and job specification for one of
these positions (10).
15
13.
Discuss five important considerations when choosing the right
sources and forms of finance.
10

14.
Why is a thorough knowledge and understanding of financial
management so important for an entrepreneur? Your explanation
should also include how financial management relates to and
integrates with the other functional areas of a business.
10
15.
Briefly explain five unique problems that small business
entrepreneurs face in obtaining finance.
5
TOTAL:SECTIONB
75

6
SUMMATIVEASSESSMENT3(MODULES7&8):MANAGEMEN
TPRINCIPLES
SECTIONC:CASESTUDIES
Cඉඛඍඛගඝඌඡ1
Martha Mazibuku started a small business (registered as a close
corporation in 2009) which sells computer equipment in her
township. Martha did an A+ Computer technician course 4 years
ago and worked for a large computer company for about 6 years
before embarking on this venture. She took a loan of R200 000
from Khula and used all her savings to convert an old
hairdressing salon into a computer shop and to buy her initial
stock.

There is a great need for her products and services. High-school
children and students living in the township are her main
customers. Although she started by working on her own, she
now employs one technician and one sales lady.
Through hard work and good customer service her turn-over was
R550 000 for the past year and it is her vision to grow her
business into the preferred supplier of computer hardware and
services in her neighbourhood. She started planning to expand
her business and wants to achieve a turn-over of at least R750
000 in the next 12 months.
Martha realises that she must take the variables in the external
environment into account. However, she focuses only on the
variables in the market environment and does not consider those
in the macro environment. At the moment her only competitors
are two computer technicians who are doing PC repair work in
the area.
QUESTIONS:CASESTUDY1
Nr:
Question:
Mark:

16.
a. Do you regard Martha as an entrepreneur? Please provide
reasons for your point of view.
b. Do you regard her business as a micro, small or medium
enterprise? Please provide a reason for your answer.
3
2
17.
a. Name the variables in the macro environment that may
have an influence on her business.
b. Explain to Martha, with the help of suitable examples,
which of these variables will be more likely to influence the
operation and success of her business.
6

4
18.
a. Explain a creativity technique that you can use to help
Martha to generate more business ideas.
b. Further develop Martha’s business idea by using a bow-tie
diagram.
5
5
19.
a. What are the questions that Martha needs to answer when
formulating a mission statement for her business?
b. Formulate a mission statement for Martha’s business.
7
3

Total case study 1
35
7
Cඉඛඍඛගඝඌඡ2
PleaserefertothebusinessplanforNtombi’sMilkMarket(Appendix
A)
ofyourprescribedbook(pages333—
352)whenansweringthefollowingquestions:
QUESTIONS:CASESTUDY2
Nr:
Question:
Mark:

20.
a. Explain what a viable business idea is.
b. If the average Mamelodi household (Average income =
R3000 p.m.) spends 2% of their monthly income on milk, and
the business- to- business market amounts to R80 000 per
month, calculate the potential rand value of Ntombi’s Milk
Market’s (NMM) market.
c. Define indirect costs and give 3 examples of NMM’s
indirect costs
2
3
3
21
a. Calculate the break-even point for NMM.
b. How can NMM lower their break-even point? Explain at
least two ways.
4

3
22.
a. Classify all NMM’s products in terms of the consumer
product category.
b. To which category (according to your text book) of the
product-service mix does NMM belong? Give a reason for your
answer
5
2
23
a. What factors may have affected the pricing of NMM’s
products?
b. What pricing objective do you think NMM has adopted?
Give a reason for your answer.
4
2

24
a. Discuss the types of channels of distribution that a
business can use.
b. What type of channel does NMM use? Please motivate
your answer.
5
2
25
Calculate the Re-order point (ROP) for a small dairy shop that
buys milk from NMM. The shop has an average monthly
demand of 105 litres of milk. The order lead time is one week
and the safety stock is five litres.
5
Total case study 2
40

TOTAL:SECTIONC
75
TOTALSUMMATIVEASSIGNMENT3
200
8

(
-
)Student Number:
Formative Assessment
Module 8
The Entrepreneur as a Manager
Assignment No. MAN61FMod8-1

[Type text] [Type text] [Type text]
(
-
)Student Number:
Module 8 - FORMATIVE ASSESSMENT
Learner Full Names:
Surname:
Only fill in your answers in the provided columns to the right
hand side of the page.
Question 1: Match each of the following words to the statements
below (e.g. 1.1 - c, 1.2 -b)
a. Productivity b. Capacity
c. Operations management
d. Transformation process e. Production
Nr:
Statement:
Nr:
Your
Answers
1.1
The greatest possible workload the operations of an
organisation can handle.
1.1

1.2
Efficiency with which an organisation turns production inputs
into outputs.
1.2
1.3
Organising resources in order to meet a customer’s
requirements.
1.3
1.4
Systematic direction and control of the processes that change
inputs into outputs.
1.4
1.5
An activity that takes one or more inputs, changes the physical
characteristics of these inputs and adds value to them for the
customer.
1.5
Total question 1

/5
Question 2: Choose the CORRECT answer by selecting a or b.
Nr:
Statement or question:
Nr:
Your
Answers
2.1
The purchasing function plays a very important role in the
allocation of a) scarce production aids or
b) raw materials
2.1
2.2
Savings on purchasing has a direct effect on the of
an enterprise. a) efficiency or
b) profitability
2.2
2.3
Administrative planning consists of the establishment of
that can effectively determine needs.

a) material estimates or b) procedures
2.3
2.4
When all the purchasing responsibilities are allocated to
different divisions, individuals or geographically distributed
operations, it is known as purchasing.
a) centralised or b) decentralised
2.4
2.5
Maintenance stock consists of .
a) Raw materials, parts and components that are used in the
manufacturing process or
b) Goods, smaller production parts and cleaning products
used in the production process
2.5
Total question 2
/5

(
-
)Student Number:
Question 3: Choose one concept or explanation from the list
below, that best describes each group of words that follow.
a. Job design.
b. Job description.
c. Job specification. d. Job profiling.
e. Job analysis.
f. Job enlargement g. Job enrichment
h. Job rotation
Nr:
Word groups:
Nr:
Your Answers:
3.1
Document containing tasks, duties and responsibilities for a
specific job.
3.1
3.2
Combining tasks to form complete jobs.
3.2
3.3
Collecting information about a job to establish tasks, duties and
responsibilities of a position.

3.3
3.4
The description of a job in terms of its required outcomes.
3.4
3.5
Written document that describes the abilities, skills,
qualifications and characteristics for a specific job.
3.5
3.6
The vertical expansion of a job that allows the worker to do a
complete activity and assess and correct his own performance.
3.6
3.7
Increase in the number and variety of tasks that an individual
performs.
3.7
3.8
Increasing variety by permitting workers to shift to other jobs
periodically to
reduce boredom and distribute unpleasant jobs.
3.8

Total question 3
/8
Question 4: Fill in the missing words from the list below:
a. Just wage
b. Acceptable wage c. Competitive wage
d. Wage with increment
Nr:
Nr:
Your
Answers:
4.1
A makes provision for an increasing wage, regardless of
promotion to a higher post.
4.1
4.2
A _compares well with those of other employees in the region.
4.2
4.3

A is in accordance with the requirements of the position which
the employee must fill.
4.3
4.4
A enables the employee to provide at least in his / her basic
needs and to maintain a satisfactory standard of life
4.4
Total: question 4
/2
(
-
)Student Number:
Question 5: Read each statement carefully then state true or
false in the space provided.
Nr:
Nr:
Your Answers
5.1
The liquidity of a business has nothing directly to do with its

profitability.
5.1
5.2
The reliability of the value of the total assets of a business is
not so critical when calculating solvency.
5.2
5.3
A high return on investment is proof of management’s ability to
add value to
the enterprise.
5.3
5.4
Return on equity indicates the rate of return on total capital or
the profitability of a business.
5.4
5.5
Trade creditors and shot-term loans are examples of net working
capital
5.5

5.6
Sometimes over the short term it is wise to forget about
profitability issues and to make sure that major liquidity threats
are immediately addressed.
5.6
5.7
The break-even point of a business is the level of business
where the income from its sales is equal to the cost of sales.
5.7
5.8
For a retailer fixed costs, also called direct costs, consists of the
cost price of a product the retailer pays to the supplier.
5.8
5.9
Marginal income refers to the positive difference between
selling price per unit minus the direct cost price per unit.
5.9
5.10
The total indirect costs of a business vary according to the
volume of sales.

5.10
Total question 5
/10
Question 6: Choose one type of budget from the list below, that
best matches each definition or statement that follows. Write
down the corresponding letter (a/b/c etc.) in the answer column:
a. Master budget b. Sales budget
c. Purchases budget d. Production budget
e. Labour budget
Nr:
Definition or Statement
Your
Answers
6.1
It has an influence on many other budgets.
6.1
6.2
If a small business does not produce goods but buys and sells, it
must draw up this budget.
6.2

6.3
Without this budget you may find that you do not have enough
staff to complete your required production.
6.3
6.4
Compiled from a number of different budgets.
6.4
6.5
This budget helps you to ensure that the correct amount of stock
is carried in your business.
6.5
Total question 6
/5
TOTAL FORMATIVE 8
/35

Student Number‐SECTIONA.docx

Student Number‐SECTIONA.docx

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