nAm I B I A U n IVERS ITV

OF SCIEnCE AnD TECHnOLOGY

FACULTV OF MANAGEMENT SCIENCES

DEPARTMENT OF MANAGEMENT
QUALIFICATION: BACHELOR OF BUSINESS MANAGEMENT

QUALIFICATION CODE: 07BBMA LEVEL: 5

COURSE NAME: INTRODUCTION TO BUSINESS

COURSE CODE: BMI511S
MANAGEMENT

SESSION: JULY 2017 PAPER: THEORY

DURATION: 3 HOURS MARKS: 100

SECOND OPPORTUNITY EXAMINATION PAPER

EXAMINER(S) Dr Asa R. Asa Ms 0 Kangandjo

Ms E Olivier Mr M Nelenge

Mr B Zealand Mr K Uirab

Mr T Hiveluah

MODERATOR:
Mr Brighten Simasiku

INSTRUCTIONS
1. Answer ALL the questions.
2. Write clearly and neatly.
3. Number the answers clearly.
4. Cross (X) in the appropriate box on the Answer Sheet provided for
MULTIPLE CHOICE QUESTIONS.

PERMISSIBLE MATERIALS

1. Calculator

THIS EXAMINATION PAPER CONSISTS OF 10 PAGES (Including this front page)

 SECTION A [40 MARKS]

Question 1- Multiple Choice Questions [20 x 2 marks]

1.1 An entrepreneur needs certain necessary resources to exploit a business opportunity.

Investors could therefore be classified as ____ resources .
A. human
B. physical
C. financial
D. operating

1.2 Bruce and Mandy owns a small tuck shop in Wanaheda . The business is not registered
and, therefore, they do not pay any rates or taxes to the Inland Revenue Services. This tuck
shop forms part of the sector.
A. informal
B. formal
C. unreserved
D. reserved

1.3 The level of strategic plan that focus on scope of organization and how resources are
used is?
A. business strategies
B. short-term strategies
C. long-term strategies
D. corporate strategies

1.4 The operations function is primarily concerned with using resources to provide output by
means of transformation process. Which of the resources is required for the aiding function in
the transformation process?

A. human resources
B. clients
C. information
D. material

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1.5 Okavango Price (Pty) Ltd, a producer of children's toys, has to comply with local and
international standards to protect consumers from unsafe products. This is known as _ __

A. business ethics
B. consumerism
C. sustainability
D. social responsibility

1.6 The management function that is concerned with the act of inspiring subordinates to perform
and engage in achieving business goals and objectives?

A. leading
B. organizing
C. planning
D. controlling

1.7 Ms Nangombe is the Managing Director (MD) of the Future City Hotel in Swakopmund which
is facing a problem of low demand for its rooms due to off season. Ms. Nangombe is very
worried about this problem. Hence, she called for a meeting with the Marketing Manager, Mr
Tweya for his advice. Each level of management requires certain skills, which skills are much
required for the top management position like the one held by Ms Nangombe?

A. adequate skills
B. technical skills
C. conceptual skills
D. interpersonal skills

1.8 _ _ _ _ _ _ _ Is when employees obey their managers simply because they like them,
respect them, and identify with them?

A. legitimate power
B. coercive power
C. referent power
D. reward power

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1.9 When an entrepreneur identifies an opportunity in the marketplace and produces and
creates a new and original product, which has not been introduced to the market before,
what entrepreneurial trait does the entrepreneur show?
A. internal locus of control
B. achievement motivation
C. creativity and innovation
D. risk-taking

1.10 The following is not an example of a standing plan?

A. programme
B. rule
C. procedures
D. policies

1.11 The variables that determine an individual's work performance are ..... ?

A. motivation, power and authority

B. motivation, authority and resources
C. ability, motivation and resources
D. ability, responsibility and motivation

1.12 The process whereby new employees are informed, among other things, of the business's
policy, procedures, remuneration and incentive schemes is referred to as _ _ _ _ _ _?

A. employment
B. induction
C. development
D. training

1.13 Which of the following components of leading cannot be delegated down the chain of
command?

A. accountability
B. authority
C. responsibility
D. none of above

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1.14 The _ _ _ _ _ _ _ _ _.reflects all the possessions and liabilities of the business,
together with their respective values at a specified date.

A. asset structure
B. balance sheet
C. income statement
D. asset side

1.15 Siyanga and her sister started a printing shop in Rundu on recycled paper; the shop is
trading under the name of "Siyanga Printing". They two sisters are equally liable for the
printing shop's losses and are financially responsible for its debts. What form of enterprise is
Siyanga Printing?
A. companies
B. partnership
C. cooperative
D. conglomerate

1.16 Which one of the following statements is NOT true regarding society's scarce resources?
A. the supply of natural resources a country possesses cannot be increased .
B. human resources include the physical and mental talents and skills of people
employed to create products and services.
C. capital products have a short working life and stocks can be built up quickly.
D. entrepreneurship refers to the collective capacity of those individuals who accept the
risks involved in providing products and services .

1.17 An enterprise is considered a legal/juristic personality when the:

a. members are liable for the debts and obligations of the juristic person.
b. enterprise has its own rights, assets and obligations.
c. members enjoy limited liability as they stand to lose only the capital they have
contributed .
d. enterprise's existence is not threatened by changes in its membership.

A. a, b, c
B. a,d
C. b, c,d
D. a, b, c, d

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1.18 Which one of the following is a characteristic of a market economy?
A. members of a community may not possess assets or earn a profit.
B. there is little or no freedom of choice for producers and consumers.
C. there is no competition in the market.
D. the state keeps its interference in the system to a minimum.

1.19 Mulaho recently moved to Windhoek to start a new job in the city. She feels, however,
that her colleagues do not respect her and that she is not recognised and valued by the
company. This refers to Mulaho's _ _ _ needs that are not satisfied according to
Maslow's hierarchy of needs.
A. self-realisation
B. security
C. esteem
D. social

1.20 Resources are the basic inputs in the production of products and services. These resources
are also known as production factors. Shikongo owns a shoe factory and shop in Golgotha.
Which one of the following would describe capital as a production factor?

A. the risk Shikongo is taking in starting a shoe shop in Golgotha.

B. the sales experience and skills Ruusa (Shikongo's sales person) has.
C. the computer and sales programme Shikongo purchased in order to make the recording
of sales easier.
D. the electricity Shikongo utilises in order to make his exclusive shoes.

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Question 2 -True or False [1 x 10 =10 marks]

Indicate whether the following statements are True or False in the examination booklet
provided.

2.1 In jobbing production processes, production takes place on a large scale with high

volume of output.

2.2 The process of developing a new idea to create new products and improving the

existing products is known as creativity.

2.3 Companies are subject to much more legal prescriptions than any other form of
enterprise.
2.4 Middle level managers need more technical skills than lower level managers.

2.5 In a free-market economy, business organisations may not exploit the consumer.

2.6 Marketing mix refers to the total of all the products that the business offers to its

customers.

2.7 Social responsibility is the ability of the firm to adapt to changing societal conditions.

2.8 Factoring of debt is a means of financing done by allowing the creditors or banks to

assist with the financial needs of the business through loans.

2.9 Ensuring the highest possible satisfaction of needs with scarce resources is known as
the economic principle
2.10 Examples of common variable costs include raw materials, packaging, and labor
directly involved in a company's manufacturing process.

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 SECTION B [SO MARKS]

Question 3
(This question requires that you show all your workings in order to get full marks)

3.1 A Japanese firm that produce car components has the fixed costs of N$ 40 000 per
month and variable costs of N$ 24 per component. lt sells the product at the price of N$ 44
per component, regardless of the number of units sold. Calculate the break-even points in
units. [5 marks]

3.2 The following are extracts from the financial statements of Gregory CC. Make use of
them to answer the questions below.

Gregory CC
Balance sheet extracts for the year ended 31 December 2016
Fixed Assets N$ 2 000

Current Assets
Stock N$ 15 000
Debtors N$ 25 000
Bank N$ 15 000
N$ 55 000

Creditors N$ 13 000

Capital/ Owner's Equity N$ 18 000

Net Profit N$ 110 000

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 Gregory CC
Income statement extracts for the year ended 31 December 2016
Sales N$ 180 000

Gross profit N$ 120 000

Expenses N$ 9 000

Net Profit Before Tax N$ 10 000

Net Profit N$ 110 000

a) Calculate the following accounting ratios and

i) Solvency ratios (indicate whether it is favourable or not) [8 marks]

ii) Net profit margin [3 marks]

3.3 If you deposit N$ 50 000 in an account that pays an annual interest rate of 16%
compounded quarterly, what will your account balance be in 15 years if you make no
withdrawals? [8 marks]

Question 4

4.1 An entrepreneur can conduct business through various forms of enterprise. Outline
four factors an entrepreneur should consider in choosing a form of enterprise? [4 marks]

4.2 The continued existence of humans depends upon the constant satisfaction of numerous
needs, both physical and psychological. Elaborate on this statement by drawing Abraham
Maslow's hierarchy of needs and explain its importance in managing a business. [1 0 marks]

4.3 Discuss the three different economic systems that society may adopt in pursuit of
satisfying their needs [8 marks]

4.4 lt is quite acknowledged that entrepreneurs play tremendous role towards economic
development of any country. Outline the role entrepreneurs play in a society? [4 marks]

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SURNAME & I N I T I A L : - - - - - - - - - STUDENT NUMBER: _ _ _ _ _ __

Question 1: (ANSWER SHEET- Cross in the appropriate box) [2 X 20 = 40]

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