MNE3701 Assignment 1 2021.

MNE3701 Assignment 1 2021. Entrepreneurship And Small Business Management. Creators Plus, a modest-size manufacturer of quality crafts, expends considerable resources to ensure that its products are created in the most efficient manner. According to the owner, distribution and promotion are secondary considerations to managing an expedient production process. Creators Plus subscribes to the ____ marketing philosophy. 1. process-oriented 2. market-oriented 3. sales-oriented 4. production-oriented Answer: 1 4. Jane and Roy have a partnership with their company of JR Enterprises. Which statements reflect how the partnership pays taxes? 1. JR Enterprises does not pay any taxes. 2. JR Enterprises pays taxes only as a partnership. 3. Jane and Roy each pay taxes on the total income. 4. Jane and Roy do not pay taxes since they are married. Answer: 1 5. Which statement is true concerning business environment conditions for a new business? 1. State governments will help new business by levying taxes. This study source was downloaded by from CourseH on 09-12-2021 06:13:16 GMT -05:00 This study resource was shared via CourseH 2. Determining the zoning is important as it may limit a company’s operations. 3. Many states offer location incentives to attract jobs to very stable areas. 4. Finding an area that has a low cost of living means a low standard of living for employees. Answer: 2 6. Ivan applied for a loan for his business that he will repay in nine months. The best way to describe this loan is as a(n): 1. trade and other payable. 2. accrued expense. 3. current liabilities. 4. non-current liabilities. Answer: 3 7. Fatima borrowed money from the bank to expand her business. She plans to repay the loan within 12 months. How is this reflected on the statement of cash flows? 1. As an increase in equity and an increase to cash. 2. As an increase to cash. 3. As a decrease to cash. 4. As an increase to current liabilities. Answer: 2 8. Maria uses other people’s money whenever possible to finance her business. She prefers to minimise and control rather than maximise and own. This practice is known as: 1. high-stepping. 2. bootstrapping. 3. unethical business practice. 4. taking advantage of others. Answer: 1 9. Mark wants to make sure he does not run out of cash so he is preparing a monthly cash budget. After determining the percentage of cash collections by month, he should: 1. estimate the amount and timing of cash disbursements. 2. calculate cash flow from operations. 3. determine the end-of-month cash balance. 4. determine beginning-of-the-month cash balance. Answer: 2 10. If the business’s rate of return on its assets is _____ than the cost of borrowing, then the owners’ rate of return on equity will _____ as the business uses _____ debt. 1. less, decrease, less 2. greater, decrease, more 3. greater, increase, more 4. less, increase, more This study source was downloaded by from CourseH on 09-12-2021 06:13:16 GMT -05:00 This study resource was shared via CourseH Answer: 2 11. Freida used a discount coupon to purchase a new product. In which category of the customer profile should this be recorded? 1. Personal Information 2. Lifestyle data 3. Profile of past responses 4. Transaction data Answer: 1 12. Joe has redesigned an app that helps businesses organise their taxes after a rival gained market share. SARS and the South African Institute of Chartered Accountants (SAICA) have said the app meets tax standards. The app would be considered a: 1. sustainable competitive advantage. 2. strategic alliance. 3. competitive adjustment. 4. business process reengineering. Answer: 1 13. Hollywood Amusement, a small independent movie theatre, decreased the price of admission from R10 to R9. Prior to the price decrease, the business sold 1 000 tickets each month. After the price decrease, it experienced ticket sales of 1 500 a month. If the change in sales is attributable only to the change in price, Hollywood Amusement faces ____ for its movie tickets. 1. elastic demand 2. constant demand 3. inelastic demand 4. variable demand