Faculty of Business Studies

Course Code: B120

Course Title: An Introduction to Business Studies

MTA - Set 1 - MG
2015-2016 / Fall Semester
Wednesday 2 – 12 - 2015

Number of Exam Pages: 7 Time Allowed: 2 Hours

(including this cover sheet(

Instructions:
Please Read the Following Instructions
 This MTA will be marked out of 100 marks and is worth 50% of the total mark of the B120
course.

 This exam consists of five essay questions. Students are required to answer FOUR out of the
five questions. Each question is worth 25 marks.

 Students are expected to refer to course materials and to spend more time and effort on
critical analysis, using diagrams, illustrations, and practical examples from their own
experience, where applicable.

 When a student selects a question from the list of exam questions, a student must answer
ALL parts of the question.

 Students should write their answers in the answer booklets provided and they should start
each answer to each question on a new page. Students should make sure that they have
written their name their personal identification number on the answer booklet.

 Students should keep the organization of the exam paper neat, use good English, and write
clearly using good handwriting and avoid cross through. Any work crossed through will not
be marked.
 Keep in mind that any form of cheating will not be tolerated and will subject you to AOU
Cheating Policy.

Page 1 of 7
Course Code: B120 MTA - SET 1- MG 2015 – 2016 / Fall Semester
Answer ONLY FOUR questions out of the following:

The answers presented in these marking guidelines are very detailed to give the
markers a wider scope of different aspects that might be discussed in each
question. Markers should not expect students to give the same level of detail in
answering the exam. Markers should be flexible to accept less detailed answers
from students as long as these answers are correct and valid.

Question One: ( 25 marks ) (Expected time to complete the answer – 20 minutes)

Define the followings business terms: (25 marks)

a. Business (8 marks)
b. SWOT. (8 marks)
c. Selection of employees. (9 marks)

MARKING GUIDELINES
a. Business enables objectives to be achieved through the interaction of individuals.
Although every business is different, there are common characteristics that can be
used to identify a business. All businesses has three common factors: people,
objective and structure. Business is categorized in term of the sector it belong to :
public or privet. It also categorized according to its objectives: profit or non- profit. (8
marks)

b. SWOT is an analysis tool that provides an overview of organization’s position in

relate to its internal and external environment. It stands for strength,
weaknesses, opportunities and threats. The strength and weaknesses arise
from internal environment. The opportunities ad threats pertain the external
environment. (8 marks)

c. Selection of employees is the process of selecting the right candidate for the
right job. By using various methods like interviews and other selection methods,
organizations are able to assess the knowledge, skills and abilities of an
individual and based on the results of the various tests and assessments, they
are deciding about the right candidate to be put on the job. The objective of
recruitment and selection process is choosing the right candidate for the job. (9
marks)
Mark Distribution- Q1
Discussion Points Allocated Marks
Business (8 marks)
SWOT 8 marks (4 points x 2marks each)
Selection of employees 9 marks

Total 25 marks
Page 2 of 7
Course Code: B120 MTA - SET 1- MG 2015 – 2016 / Fall Semester
Question Two: ( 25 marks ) (Expected time to complete the answer – 20 minutes).

Explain the following and support your answers with relevant examples: (25 marks)

a. What motivates people to go to work? (11 marks)

b. Stakeholders and their primary and secondary expectations. (14 marks)

Marking guidelines

a. What motivates people to go to work? (11 marks)

(1) Financial Reasons: (2 marks)

Earn money to secure a reasonable standard of living for themselves and their
families.
(2) Non financial reasons are: (6 marks)
(a) Job satisfaction: (feeling satisfied and interested).
(b) Meeting people and making friends.
(c) People’s perception and self-esteem affected by the job a person does.
(d) Work gives people an identity.
(e) Work does good things for others: (school teachers and nurses).
(f) Building a career.

For providing supporting examples (3 marks)

b. Stakeholders and their primary and secondary expectations. (14 marks)

Stakeholders are people, or groups, who have a legitimate interest in the activities of
businesses and other organizations in their society. All businesses have internal
stakeholders, different stakeholders have different interests and these interests may be in
conflict, stakeholders’ behavior affects the culture, structure, and control system within a
business and owners and shareholders are protected by property and company law,
whereas the interests of other stakeholders are protected, if at all, only by regulation or
management discretion. Examples – Owners, managers, employees, shareholders,
customers, suppliers, local communities and the state. (5 marks)

Stakeholders and their primary and secondary expectations: (7marks)

Stakeholders Expectations
Primary Secondary

Owners Financial return Capital growth

Employees Pa y Work satisfaction, training, Social

integration
Customers Supply of goods/ services Quality

Creditors Creditworthiness Security

Page 3 of 7
Course Code: B120 MTA - SET 1- MG 2015 – 2016 / Fall Semester
Suppliers Payment Long-term relationships

Community Safety and Security Contribution to the community

Government Compliance Improved competitiveness

For providing supporting examples (2 marks)

Mark Distribution- Q2
Discussion Points Allocated Marks
What motivates people to go to work? Total 11 marks
(1) Financial Reasons (2 marks)
(2) Non financial reasons. (6 marks)
(3) For providing supporting (3 marks)
examples

Stakeholders and their primary and Total 14 marks

secondary expectations
(1) Stakeholders definition and (5 marks)
explanation
(2) Stakeholders and their primary
(6marks)
and secondary expectations
(3) For providing supporting
examples (3 marks)

Total 25 marks

Question Three: ( 25 marks ) (Expected time to complete the answer – 20 minutes).

Identify and discuss benefits of small business (SME). Support your answer with
relevant examples? (25 marks)

Marking guidelines

Identifying and discussing the benefits of SME (17 marks)

 The SME sector creates employment which has impact on business activity
through increasing spending power.

 In wider economic and social life of a society benefits include :

 SMEs can offer specialized services to customers that larger

businesses may not regard as cost effective to provide.

Page 4 of 7
Course Code: B120 MTA - SET 1- MG 2015 – 2016 / Fall Semester
 ▪ Small businesses often work as sub-contractors on big projects.

 SMEs know more the local business environment and can provide the
needed products and services.

 SMEs assist in regional and local growth and rejuvenation.

 Smaller businesses tend to be less bureaucratic and more flexible in

their response to customer demands.

Providing supporting examples: (8 marks)

Mark Distribution- Q3
Discussion Points Allocated Marks
Identifying and discussing the benefits of SME (17 marks)

Providing supporting examples: (8 marks)

Total 25 marks

Question Four: ( 25 marks ) (Expected time to complete the answer – 20 minutes)

Douglas McGregor’s theory X and theory Y is one of the most well known models of
motivation in business studies. Discuss both theories and support your answer with
examples. (25 marks)

Marking guidelines

 McGregor’s Theory X and Theory Y is one of the most well known motivational
models in business studies.

 It comprises two different perspectives of individuals at work is

illustrated:

 The kind of people they are.

 What managers need to do to keep them working?

 Theory X and Theory Y can be thought as two different sets of assumptions that
lead managers in a business to adopt two different management styles.
(5marks)

 Theory X managers: (8 marks)

 Believe that workers are motivated only by money; they are lazy, dislike work
and lack ambition and thus they need to be controlled.

 Theory Y managers: (8 marks)

Page 5 of 7
Course Code: B120 MTA - SET 1- MG 2015 – 2016 / Fall Semester
  believe that workers are motivated by many needs. They can take pride and
responsibility in doing a good job. Mangers should trust workers and help
them to their best.

For providing supporting examples (4 marks)

Mark Distribution- Q4
Discussion Points Allocated Marks
General elaboration on theory X & Theory Y (5 marks)
as a motivational models
Theory X managers (8 marks)

Theory Y managers (8 marks)

providing supporting examples (4 marks)

Total 25 marks

Question Five: ( 25 marks ) (Expected time to complete the answer – 20 minutes).

Training is a key factor of any business success. List types of training courses as you
studied them, briefly list and explain seven types of training courses and support your
answer with relevant examples? (25 marks)

Marking guidelines

Types of training courses: (21) marks: 1 mark for listing and 2 marks for brief
explanation)

Type of training Explanation

Coaching (informal training) A way of transferring knowledge and skills from a more
experienced person to a less experienced person

Mentoring (informal training) Is similar to coaching, but the person carrying out the
mentoring should not be the other person’s line manager

Job rotation (informal training) Encouraging members of a team to be able to work

proficiently in each other’s job, thus creating greater
flexibility and skills within the team as a whole

Page 6 of 7
Course Code: B120 MTA - SET 1- MG 2015 – 2016 / Fall Semester
Special assignments/ projects Increasing the skills base of individuals by arranging
supervised project work in preparation for greater
responsibilities

Action learning A group of individuals who work on their own chosen

problems, but share advice and approaches to solving each
other’s problems

‘in-house’ courses A means of conveying knowledge and skills to groups of

individuals through training (provided either from within the
business or by external trainers)

Courses provided by external To convey knowledge or skills to groups of individuals, for

agencies example by specialist trainers or through attendance at a
local college

Distance learning

For providing supporting examples (4 marks)

Mark Distribution- Q5
Discussion Points Allocated Marks
Listing seven types of trainings courses
(21 ((21 marks ): 1 mark for listing and 2 marks for
and brief explanation. for brief explanation)

Providing supporting examples (4 marks)

Total 25 marks

End of MG

Page 7 of 7
Course Code: B120 MTA - SET 1- MG 2015 – 2016 / Fall Semester