BSM1602 EXAM PACK-LATEST.

BSM 1602 EXAM BANK MAY 2015- MAY 2019 BUSINESS MANAGEMENT 1B OCTOBER/ NOVEMBER 2014 Chapter 1: Introduction to business management for the entrepreneur 1. Cyril and Cindy used _______ as factors of production to manufacture the curtains and blinds. (pg 9) 1) Entrepreneurship, capital, money and labour 2) Entrepreneurship, creativity, capital and labour 3) Entrepreneurship, capital, labour and natural resources 4) Entrepreneurship, labour, natural resources and skils 2. Consumers wanted curtains made according to their individual needs and preferences, rather than buying ready-made curtains that were manufactured in bulk. This is an example of the influence that the ________environment has on Chetty’s Curtain Creations.( pg 12-13) 1) Economic- is influenced by the political, social, technological and international environments, but conversely, influences the other environments significantly. 2) Social and cultural- consists of may dimensions, including culture, language, religion and customs 3) Technological- changes in technology have a dramtic influence on the lives of individuals and business. 4) Physical- includes the essential resources required by people and businesses 3. An increase in the inflation rate may result in a decrease in the sales of new curtains and blinds. This is an example of the influence that the environment has on Chetty’s Curtain Creations. 1) International- all the environments are influence each other and businesses directly or indirectly. 2) Social and cultural- consists of may dimensions, including culture, language, religion and customs 3) Technological- changes in technology have a dramtic influence on the lives of individuals and business. 4) Economic- is influenced by the political, social, technological and international environments, but conversely, influences the other environments significantly. 4. The primary objective of Chetty’s Curtain Creations is to______. 1) Satisfy consumers’ needs 2) Launch a marketing campaign 3) Include a bigger variety of products in their product range 4) Make a profit (pg 27) Page 1 of 161 BSM1602 EXAM PACK-LATEST. BSM 1602 EXAM BANK MAY 2015- MAY 2019 BUSINESS MANAGEMENT 1B 5. Management is a business management function and involves the coordination of all the business functions. The fundamental/ ,main management tasks include the following_________. (pg 26) 1) Planning, coordination, control and leading 2) Planning, control, leading and organising 3) Organising, control, leading and communication 4) Delegation, leading, organising and control 6. Which one of the following is not a characteristic of an entrepreneur? 1) He/she manages and existing enterprise 2) He/she starts his own enterprise 3) He/she is creative and innovative 4) He/she is responsible for growth Chapter 2: The general management function 7. Fatima was the administrative manager and Paulina acted as her assistant. They were responsible for answering the telephone, handling enquiries and complaints, placing orders, etcetera. This division of tasks refers to _________. 1) Planning- Adequate planning is needed; in the long, medium and short term. 2) Organising- this means taking decisions on how to divide up the work that is to be completed 3) Leading- involves the effective supervision and motivation of employees 4) Control- this included monitoring performance, in other words, comparing what should have been done with what was actually done. Corrective action should be considered if a gap is found to exist. 8. The way in which Cyril and Cindy assist subordinates to achieve the objectives of the business, refers to_____________ (pg 41-43) 1) Delegation- is the process whereby tasks are allocated to employees with the necessary power and responsibility to enable them to do the tasks. 2) Co-ordination- is the process by which the various functions in the business are treated as a functional unit so that its objectives can successfully be achieved. 3) Discipline- shapes the behaviour of employees so that their conduct helps to ensure the successful operation and achievement of the objectives of the business. Page 2 of 161 BSM 1602 EXAM BANK MAY 2015- MAY 2019 BUSINESS MANAGEMENT 1B 4) Motivation- is the process in which the entrepreneu and manager persuade the employees that they should voluntarily do their work as well as possible 9. The middle management of Chetty’s Curtain Creations is responsible for planning__________. ( pg 20-22) 1) Strategic- The final authority and responsibility for carrying out management duties will be taken on a strategic level. 2) Functional- is responsible for a certain departmental function, for instance marketing, purchasing or production. 3) Operational - is concerned with all the activities regarding the daily tasks of the business. 4) organisational 10. Cyril and Cindy should be aware of the key components to reshape the would of the new economy and utilise the knowledge and ideas of their employees. This statement refers to____________. (pg 19-20) 1) New communication technologies- Communication technologies are responsible for enormous change in the business world 2) Globalisation- Multinational businesses have global offices and production facilities. 3) Knowledge management- is a process. of discovering and connecting a business’s intellectual resources. 4) Alliances across business borders 11. Which one of the following is not a strategic planning that has to be executed at the top management level of Chetty’s Curtain Creations? (pg 27-28) 1) To decide on the vision and mission of the enterprise 2) To plan the strategy and policy of the enterprise 3) To do the budgets of the enterprise 4) To work out the operational strategy of the enterprise (pg 23) 12. At Chetty’s Curtain Creations, Cyril and Cindy aim to persuade their employees to voluntarily do their work to the best of their ability. This statement refers to __________. 1) Leading- to the management function that guides people within a business in such a way that they voluntarily cooperate or work together to achieve the objectives of the business as effectively as possible.(pg 38). 2) Motivation- is the process in which the entrepreneur and manager persuade the employees that they should voluntarily do their work as well as possible. Page 3 of 161 BSM 1602 EXAM BANK MAY 2015- MAY 2019 BUSINESS MANAGEMENT 1B 3) Co-ordination - is the process by which the various functions in the business are treated as a functional unit so that its objectives can successfully be achieved. 4) Control- By exercising control, an entrepreneur ensures that people carry out instructions according to plan. 13. Additional or short-term objectives that are set to improve working conditions or to provide quality curtains an blinds at Chetty’s Curtain Creations, can be classified as the _________ objectives. 1) Main- of small businesses is usually to make a profit. 2) Strategic3) Overall 4) Secondary 14. When Cyril and Cindy allocate power and responsibility to sub-ordinator employees, it refers to ______. ( pg 41-42) 1) Co-ordination- is the process by which the various functions in the business are treated as a functional unit so that its objectives can successfully be achieved. 2) Discipline- shapes the behaviour of employees so that their conduct helps to ensure the successful operation and achievement of the objectives of the business. 3) Delegation- is the process whereby tasks are allocated to employees with the necessary power and responsibility to enable them to do the tasks. 4) Decision-making- various possible solutions are considered for problems and the best solution is chosen. Chapter 3: The financial function 15. Which financial statement will Cyril and Cindy consult if they want to evaluate the financial status of Chetty’s Curtain Creations at the end of a certain accounting period? 1) Income statement 2) Balance sheet 3) Pro forma income statement 4) Cash budget 16. The items acquired for long-term use in Chetty’s Curtain Creations, such as land, equipment, machinery and furniture with an expected useful business life measured in years, are known as __________. (pg 50-51) 1) Current liabilities- are accounts payable, notes payable to banks, accrued expenses (wages, salaries), taxes payable, the current portion (due within one year) of long-term debt and other obligations owing to creditors due within one year. Page 4 of 161