Summative Assessment

Please this assignment consists of SA Type questions, Case Studies about Management, Financial management, Entrepreneurship, Accounting. If your not comfortable with thies don’t attemt i need complete descriptive answers not short descriptions.

The main source for this assignment

TheEntrepreneurasaManager

Prescribed Text book

Niewenhuizen, C. (ed.), 2011, Basics of Entrepreneurship Second Edition. Cape Town: JUTA

isbn 978-0-70218-859-6

Or maybe this would help as i do not have the text book it includes the case studies

http://books.google.co.za/books?id=i625lP3TP8cC&pg=PA336&lpg=PA336&dq=business+plan+for+Ntombi%E2%80%99s+Milk+Market&source=bl&ots=X1OG3MtjFn&sig=cOD4jZGuckyQ2cJOoNqNu9r32-g&hl=en&sa=X&ei=ll17UuaXB8qUhQfz04GIBA&ved=0CE8Q6AEwAQ#v=onepage&q=business%20plan%20for%20Ntombi%E2%80%99s%20Milk%20Market&f=false

http://books.google.co.za/books?id=GcNWAmRkWskC&pg=PA148&lpg=PA148&dq=business+plan+for+Ntombi%E2%80%99s+Milk+Market&source=bl&ots=TlVAUuaB8f&sig=OBrJTtlZDmXDb6Hx0DhhUdHbujk&hl=en&sa=X&ei=ll17UuaXB8qUhQfz04GIBA&ved=0CFIQ6AEwAg#v=onepage&q=business%20plan%20for%20Ntombi%E2%80%99s%20Milk%20Market&f=false

Student Number:</b>

‐

SECTION A

SECTION B

SECTION C

/75

TOTAL

MAN

-1-1

Student Number:

‐

SUMMATIVE ASSESSMENT

(MODULES 7 & 8): ENTREPRENEURSHIP

SECTION A: SHORT QUESTIONS

Question 1: Select from
column

the correct answer to match
column

B
.

Match the concepts in column A with the descriptions in column B:

Statement: B

Nr:

Your Answers:

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

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

Statement: B

Nr:

Question 2: Select from column A the correct answer to match column B . Match the factors that influence the form of business ownership in column A with the descriptions in column B:
	Your Answers:
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

Nr:

( 3 ) Student Number:	‐
Question 3: Read each statement carefully then state true or false in the space provided.
		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

Nr:

Question 4: Choose the CORRECT answer by selecting a or b.
Statement:		Your Answers
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

Student Number: ‐

Nr:

Statement :

Your Answers:

Total question 5

Question 5: Choose the appropriate word or concept for the following statements. Select only one from the list below for each statement and write down the corresponding letter (a/b/c etc.) in the answer column. a. Advertising b. Sponsorship c. Publicity d. Sales promotion e. Personal selling
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

Nr:

Your Answers:

Question 6: Choose the appropriate word or concept for the following statements. Select only one from the list below for each statement and write down the corresponding letter (a/b/c etc.) in the answer column. Operations management: a. Productivity b. Capacity c. Batch production d. Mass production e. Job production
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

4
Student Number: ‐

Nr:

Your Answers

7.1

7.2

7.3

7.4

7.5

Statement: B

Nr:

Your Answers:

Question 7: Choose the CORRECT answer by selecting a or b.
Statement or question:
	7.1	One of the internal factors that influence Human resource planning is … a) The nature of the work or b) Trade union requirements
	7.2	…refers to the situation when people leave the company, for whatever reason. a) Net change or b) Attrition
	7.3	… refers to the way tasks are combined to form complete jobs a) Job enrichment or b) Job design
	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.
	7.5	Choosing the most suitable candidate from a pool of candidates is called … a) screening or b) selection
Total question 7
Question 8: Match the concepts in column A with the descriptions in column B:
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

Nr:

Statement :

Your Answers

Question 9: Read each statement carefully then state true or false in the space provided.
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
TOTAL: SECTION A	/50

SUMMATIVE ASSESSMENT 3 (MODULES 7 & 8): ENTREPRENEURSHIP

SECTION B : APPLICATION / ESSAY QUESTIONS

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).
13.	Discuss five important considerations when choosing the right sources and forms of finance.
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.
15.	Briefly explain five unique problems that small business entrepreneurs face in obtaining finance.
TOTAL:SECTION B	75

SUMMATIVE ASSESSMENT 3 (MODULES 7 & 8): MANAGEMENT PRINCIPLES

SECTION C : CASE STUDIES

Cඉඛඍ ඛගඝඌඡ 1

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.

Nr:

Question:

Mark:

QUESTIONS: CASE STUDY 1
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

Nr:

Question:

Mark:

5
2

Cඉඛඍ ඛගඝඌඡ 2 Please refer to the business plan for Ntombi’s Milk Market (Appendix A) of your prescribed book ( pages 333—352) when answering the following questions:
QUESTIONS: CASE STUDY 2
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.
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.
Total case study 2	40
TOTAL:SECTION C	75
TOTAL SUMMATIVE ASSIGNMENT 3	200

Student Number: ‐

SECTION

/50

SECTION B

SECTION C

TOTAL

/200

MAN681-1-

Student Number: ‐

SUMMATIVE ASSESSMENT 3 (MODULES

& 8): ENTREPRENEURSHIP

SECTION A: SHORT QUESTIONS

Question 1: Select from column A the correct answer to match column B.

Match the concepts in column A with the

descriptions in column B:

Statement: B

Nr:

Your

Answers:

a) Economics

1.1 Business cycle, inflation, and recession

1.1

b) Micro economics

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

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

Question 2: Select from column A the correct answer to match column B.

Match the factors that influence the form of business ownership in column A with the

descriptions in column B:

Statement: B

Nr:

Your

Answers:

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

e) Accounting
requirements

2.5 Responsibility for possible debts and

other legal obligations of a business.

2.5

Total question

Student
Number:

‐

Question 3: Read each statement carefully then state true or false in the space provided.

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.

Large corporate companies, in most of the successful world economies

are the biggest contributors to job creation.

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.

Innovation deals with finding an idea for a new product.

A viability study is an in-depth investigation of the profitability of a

business idea to be converted into a business enterprise.

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

Nike practises segment marketing by selling athletic gear for basketball,

running, and soccer.

Total question

/10

Question 4: Choose the CORRECT answer by selecting a or b.

Nr:

Statement:

Your

Answers

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

Student Number: ‐

Question 5: Choose the appropriate word or concept for the following statements. Select

only one from the list below for each statement and write down the corresponding letter (a/b/c

etc.) in the answer column.

a. Advertising

b. Sponsorship

c. Publicity

d. Sales promotion

e. Personal selling

Nr:

Statement :

Your
Answers:

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

Question 6: Choose the appropriate word or concept for the following statements. Select

only one from the list below for each statement and write down the corresponding letter (a/b/c

etc.) in the answer column.

Operations management:

a. Productivity

b. Capacity

c. Batch production

d. Mass production

e. Job production

Nr:

Your Answers:

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

Student Number: ‐

Question 7: Choose the CORRECT answer by selecting a or b.

Nr:

Statement or question:

Nr:

Your Answers

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

Question 8: Match the concepts in column A with the descriptions in column B:

Statement: B

Nr:

Your
Answers:

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

Question 9: Read each statement carefully then state true or false in the space provided.

Nr:

Statement :

Your Answers

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

TOTAL: SECTION A

/50

SUMMATIVE ASSESSMENT 3 (MODULES 7 & 8): ENTREPRENEURSHIP

SECTION B : APPLICATION / ESSAY QUESTIONS

Nr:

Question:

Mark:

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)

10.

Formulate a mission statement as well as 4 long-term objectives for your
business.

11.

Prepare a cash budget for the first 2 months of your own business

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).

13.

Discuss five important considerations when choosing the right sources and
forms of finance.

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.

15.

Briefly explain five unique problems that small business entrepreneurs
face in obtaining finance.

TOTAL:SECTION B

SUMMATIVE ASSESSMENT 3 (MODULES 7 & 8): MANAGEMENT PRINCIPLES

SECTION C : CASE STUDIES

Cඉඛඍ ඛගඝඌඡ 1

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: CASE STUDY 1

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.

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.

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.

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.

Total case study
1

Cඉඛඍ ඛගඝඌඡ 2

Please refer to the business plan for Ntombi’s Milk Market (Appendix A)

of your prescribed book ( pages 333—352) when answering the following questions:

QUESTIONS: CASE STUDY 2

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

a. Calculate the break-even point for NMM.

b. How can NMM lower their break-even point? Explain at least two ways.

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

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.

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.

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.

Total case study
2

TOTAL:SECTION
C

TOTAL SUMMATIVE ASSIGNMENT
3

200

Student

</p>

Number:

‐

Please this assignment consists of SA Type questions, Case Studies about Management, Financial management, Entrepreneurship, Accounting. If your’e not comfortable with this don’t attempt i need complete descriptive answers not short descriptions.

The main source for this assignment

TheEntrepreneurasaManager

Prescribed Text book

Niewenhuizen, C. (ed.),

1, Basics of Entrepreneurship Second Edition. Cape Town: JUTA

isbn 97

-0-70218-8

9-6

Or maybe this would help as i do not have the text book it includes the case studies

\http://books.google.co.za/books?id=i625lP3TP8cC&pg=PA336&lpg=PA336&dq=business+plan+for+Ntombi%E2%80%99s+Milk+Market&source=bl&ots=X1OG3MtjFn&sig=cOD

jZGuckyQ2cJOoNqNu9r32-g&hl=en&sa=X&ei=ll17UuaXB8qUhQfz04GIBA&ved=0CE8Q6AEwAQ#v=onepage&q=business%20plan%20for%20Ntombi%E2%80%99s%20Milk%20Market&f=false

SECTION A

SECTION B

/75

SECTION C

/75

TOTAL

/200

MAN681-1-1

Student Number:

‐

SUMMATIVE ASSESSMENT 3 (MODULES 7 & 8): ENTREPRENEURSHIP

SECTION A: SHORT QUESTIONS

Question 1: Select from
column

the correct answer to match
column

B
.

Match the concepts in column A with the descriptions in column B:

Statement: B

Nr:

Your Answers:

a) Economics

1.1

Business cycle, inflation, and recession

1.1

e).

b) Micro economics

1.2

Economy as a whole, supply and demand for money, capital and commodities

1.2

d).

c) Economic factors

1.3

Individual agents such as households and businesses

1.3

b).

d) Macro economics

1.4

Production, distribution, trade and consumption of goods and services

1.4

c).

e) Free Market economy

1.5

All transfers of money, goods and services are devoid of coercion and theft

1.5

a).

Total question 1

Statement: B

Nr:

b).

d).

Question 2: Select from column A the correct answer to match column B . Match the factors that influence the form of business ownership in column A with the descriptions in column B:
	Your Answers:
a) Liability and accountability	2.1 Lifespan of the business.	2.1
b) Continuity	2.2 Separate (from owner) legal entity.	2.2	c).
c) Legal personality	2.3 Statutory requirements that must be complied with.	2.3			a).
d) Legal requirements	2.4 Requirements on how financial record must be kept	2.4		e).
e) Accounting requirements	2.5 Responsibility for possible debts and other legal obligations of a business.	2.5
Total question 2		/5

Nr:

True

False

True

(
3
)

Student Number:

‐

Question 3: Read each statement carefully then state
true

false
in the space provided.

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.

True

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.

False

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

Nr:

b).

a).

b).

Question 4: Choose the CORRECT answer by selecting a or b.
Statement:		Your Answers
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.		b).
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

Student Number: ‐

Nr:

Statement :

Your Answers:

a).

c).

e).

b).

Total question 5

Question 5: Choose the appropriate word or concept for the following statements. Select only one from the list below for each statement and write down the corresponding letter (a/b/c etc.) in the answer column. a. Advertising b. Sponsorship c. Publicity d. Sales promotion e. Personal selling
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.	d).
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

Nr:

Your Answers:

e).

a).

b).

d).

Question 6: Choose the appropriate word or concept for the following statements. Select only one from the list below for each statement and write down the corresponding letter (a/b/c etc.) in the answer column. Operations management: a. Productivity b. Capacity c. Batch production d. Mass production e. Job production
6.1	Manufacturing a number of identical items either to meet a specific order or to meet a continuous demand.	c).
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

4
Student Number: ‐

Nr:

Your Answers

7.1

a).

7.2

a).

7.3

b).

7.4

b).

7.5

b).

Statement: B

Nr:

Your Answers:

c).

e).

b).

a).

d).

Question 7: Choose the CORRECT answer by selecting a or b.
Statement or question:
	7.1	One of the internal factors that influence Human resource planning is … a) The nature of the work or b) Trade union requirements
	7.2	…refers to the situation when people leave the company, for whatever reason. a) Net change or b) Attrition
	7.3	… refers to the way tasks are combined to form complete jobs a) Job enrichment or b) Job design
	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.
	7.5	Choosing the most suitable candidate from a pool of candidates is called … a) screening or b) selection
Total question 7
Question 8: Match the concepts in column A with the descriptions in column B:
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

Nr:

Statement :

Your Answers

False

True

/50

Question 9: Read each statement carefully then state true or false in the space provided.
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
TOTAL: SECTION A

SUMMATIVE ASSESSMENT 3 (MODULES 7 & 8): ENTREPRENEURSHIP

SECTION B : APPLICATION / ESSAY QUESTIONS

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).
13.	Discuss five important considerations when choosing the right sources and forms of finance.
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.
15.	Briefly explain five unique problems that small business entrepreneurs face in obtaining finance.	5
TOTAL:SECTION B	75

Business idea

After conducting a small research locally, a business opportunity emerged; starting a small distribution and supply company. The local area is full of small and medium sized retail stores that sell goods and services directly to the consumer, however they all suffered from one major problem.; delivery of their stock. Most of the manufacturing companies are located in the outskirts of the local business centre. This means that the retailers have to get their stocks from different manufacturers at their own expense. This is because most if not all of the manufacturing companies have a policy whereby they can only deliver an order if it is a big quantity; in this case the large retailers are the only ones that enjoy the service. The motivation behind the idea is because it fills in a lacuna and there is less competition as there is no other small distribution and supply companies.

As a preventive measure against loss of stock, the company will strictly deal with the supply of consumer durables that are non perishable; they will include household cleaning agents and personal consumables. The legal requirements to start a company is that there should be at least a mini-lorry, a licensed driver, a small office, funds for the purchase of the initial stock and in case of expansion a small go down. Marketing for the service will be done face to face by communicating to the retailers.

SUMMATIVE ASSESSMENT 3 (MODULES 7 & 8): MANAGEMENT PRINCIPLES

SECTION C : CASE STUDIES

C 1

QUESTIONS: CASE STUDY 1

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.

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.

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.

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.

Total case study 1

Please refer to the business plan for Ntombi’s Milk Market (Appendix A)

of your prescribed book ( pages 333—352) when answering the following questions:

QUESTIONS: CASE STUDY 2

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

a. Calculate the break-even point for NMM.

b. How can NMM lower their break-even point? Explain at least two ways.

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

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.

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.

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.

Total case study 2

TOTAL:SECTION C

TOTAL SUMMATIVE ASSIGNMENT 3

200

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