•'

nAm I BIA UniVERSITY

OF SCIEnCE AnD TECHnOLOGY

QUALIFICATION: CATS

QUALIFICATION CODE: LEVEL: 5

COURSE: APPLIED BUSINESS ECONOMICS lA COURSE CODE: ABE 1115

DATE: NOVEMBER 2016 SESSION: 1

DURATION: 2 HOURS MARKS: 100

l 5tOPPORTUNITY EXAM

EXAMINER: MRS. Y. ALCOCK

MODERATOR: MR. J. OJO

THIS EXAMINATION PAPER CONSISTS OF 5 PAGES

(INCLUDING THIS FRONT PAGE)

INSTRUCTIONS

1. Answer ALL questions.

2. Please write down your answers in the answer book provided.

EXAMINER: MRS. Y. ALCOCK

MODERATOR: MR. J. OJO

1
SECTION A
QUESTION 1

Choose the correct answer and use the answer sheet provided. Write down only the number and the
correct letter.

1.1 Which aspect of the management process involves determining what the organization needs to
do and how best to get it done?
A. Organizing
B. Planning
c. Controlling
D. Coordinating (2)

1.2 Which of the following are not elements ofthe Maslow's Hierarchy of needs?
A. Social needs
B. Physiological needs
C. Theoretical needs
D. Self-actualization needs (2)

1.3 Which level of management sets general policies, formulates strategies, approves all significant
decisions, and represents the company in dealings with other firms and with government
bodies?
A. Operations managers
B. Production managers
c. Top managers
D. Middle managers (2)

1.4 An accountant's ability to audit a company's records is an example of what type of skills?
A. Decision making skills
B. Technical skills
c. Human relations skills
D. Conceptual skills (2)

1.5 Camille Graham is a manager who works with people and makes them feel excited about their
work. What type of skills is she illustrating?
A. Human relations skills
B. Technical skills
c. Analytical skills
D. Conceptual skills (2)

1.6 Which of the following managers depend most on conceptual skills?

A. First-line managers
B. Top managers
c. Middle managers
D. Top and middle managers (2)

1.7 An entrepreneur is characterized by the following personality traits.

A. Creativity and innovation
B. Commitment and determination
c. Opportunity-orientated
D. All of the above (2)

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1.8 The external Environment:
A. Is difficult to separate from the organization's internal environment
B. Is that portion of the environment that is controlled by top management
c. Is the organization's hierarchical structure
D. Lies outside of the formal boundaries of an organization (2)

1.9 Which of the following systems cannot be classified as an economic system?

A. A free market system
B. A mix free system
c. The socialist system
D. The communist system (2)

1.10 The following are challenges of owning your own business, except;
A. Demand for full responsibility
B. Guaranteed income
c. Hard work
D. Sacrificing quality family life (2)

1.11 A statement most consistent with the philosophy of the marketing concept would say that the
key to success is:
A. Innovative product development
B. A persuasive sales force
c. An experienced team of marketing managers
D. Customer satisfaction (2)

1.12 Willem and Johan are debating who all their potential customers are; who share the need for
their product and are willing and able to buy it. Willem and Johan are debating:
A. The definition of customer value
B. Customer satisfaction
c. Who their market is
D. What constitutes and exchange (2)

1.13 What does a planned economy rely on a centralized government to do?

A. Support free enterprise in every way possible
B. Allocate all or most factors of production
C. Encourage citizens to buy shares of stock in small companies
D. Keep its control activities to a minimum (2)

1.14 Which economic system emphasizes the private ownership of most factors of production?
A. Socialism
B. Communism
C. Capitalism
D. Marxism (2)

1.15 What is the most significant disadvantage of owning a franchise?

A. Start-up costs
B. Operational guidelines
C. Difficulty obtaining loans
D. Double taxation (2)

3
1.16 Which of the following is the most significant disadvantage of starting a business?
A. Having few employees
B. The risk of failure
C. Having competition
D. Coming up with new ideas (2)

1.17 Which type of business is legally considered a separate entity from its owners and is liable for its
own debts?
A. Sole proprietorship
B. Company
c. Limited partnership
D. Cooperative (2)

1.18 When the company communicates with its customers in the media it is:
A. Recruitment
B. Buffering
C. Coalescing
D. Advertising (2)

1.19 Which ofthe following lists Maslow's Hierarchy of Human Needs in order, starting with the most
basic?
A. Physiological, security, social, esteem, self-actualization
B. Social, security, physiological, esteem, self-actualization
C. Physiological, self-actualization, security, esteem, social
D. Physiological, esteem, security, social, self-actualization (2)

1.20 .............................................. is a written document that identifies, describes and defines a job in
terms of its tasks, responsibilities, duties, working conditions and supervisory relationships?
A. Job description
B. Job enrichment
C. Job specification
D. Job enlargement (2)

QUESTION 2 {20 marks x 2)

Indicate whether the following statements are True or False.

2.1 The customs, values and demographic characteristics ofthe society in which an organization
functions, are the principal elements of the political-legal environment. (1)

2.2 Economic systems differ in how factors of production are used. {1)

2.3 Capital is the amount that each shareholder receives from the share of profit. (1)

2.4 Namibia Breweries Ltd is a private company. (1)

2.5 People who assume the risk of business ownership with a primary goal of growth and expansion
are called entrepreneurs. (1)

2.6 A business plan demonstrates how an entrepreneur's business strategy will be implemented. {1)

4
' {

2.7 Franchisees may be obligated to contribute a percentage of sales to parent corporations. {1)

2.8 By law, each general partner is liable for all debts incurred in the name ofthe partnership. (1)

2.9 Just-in-time (JIT) production systems normally require large amounts of "safety stock" to be
maintained in a firm's warehouse. {1)

2.10 The biggest challenge ofTWM is motivating employees throughout the company to achieve
quality goals. (1)
(10 marks)

SECTION B
QUESTION 3

3.1 The Marketing Manager of Tigla CC, Mr. Hindjou, discovered that their market shares have gone
down and he wants to find out why. As a marketing consultant, explain the steps that Mr.
Hindjou has to follow in conducting a marketing research . (15)

3.2 Define the following concepts:

A. Business management (2)

B. Human Resources Management (2)

c. Corporate Social Responsibility (2)

D. Entrepreneurship (2)

E. Break-even analysis (2)

(25 marks)
QUESTION 4

4.1 The continued existence of humans depends on 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. (10)

4.2 Differentiate between a job description and a job specification. (5)

4.3 List at least five (5) characteristics ofTQM . {10)

(25 marks)

Section A: 50
Section B: 50
[GRAND TOTAL: 10q