UNIVERSITY OF THE FREE STATE

EBUS1514

DEPARTMENT: BUSINESS MANAGEMENT

TEST 2: 4 May 2018

ASSESSOR(E): 1. Mr N Miya
2. Ms A van Noordwyk
3. Ms E van Tonder

MODERATOR: Ms N Fernandes

TIME: 50 Minutes MARKS: 40

Section A [10 marks]

Answer questions 1 to 10 by identifying whether the statement is true or false

and writing it on your answer sheet (e.g. 1 False).

1. With the recent Enterprise scandal, Tiger Brands could have used any type of
online media to counter the negative publicity immediately, since online media is
available 24 hours a day, 7 days a week and 365 days a year.
[1]

2. Oramedia (folk media) such as puppet shows, poetry and music can be used as
a form of support media by any public relations officer.
[1]

3. Public relations are inflexible and the public relations team will always react in
the same manner if a crisis is experienced by a business.
[1]

4. The following are all functions of public relations: research, speaking, writing and
editing.
[1]

5. The financial department or division of a business is only responsible for

preparing financial statements.
[1]

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6. A customer receives goods from Kloppers on 1 April 2018 and promises to pay
the full amount at the end of the same month. This is an example of trade credit
between the customer and Kloppers.
[1]

7. Solvability refers to the business’s ability to pay its short-term financial

commitments continuously and on time.
[1]

8. On every sale Jane makes she will receive 10% commission. This is an example
of a benefit Jane will receive as part of her compensation package from her
employer.
[1]

9. Development programmes for employees have a longer-term focus on improving

employees’ competencies, in preparation for future jobs.
[1]

10. The orientation function carried out by die human resource manager involves
finding the most suitable person for a specific post.
[1]

Section B [30 marks]

Question 1 [10 marks]

Facebook has recently been involved in a data harvesting scandal. Personal data of
Facebook users were taken (“harvested”) and then sold to “malicious third parties”.
These third parties used the personal data to launch criminal acts including identity
theft, hacking, etc. Among the personal data that was sold, was also the personal data
of Facebook CEO, Mark Zuckerberg.

Zuckerberg was questioned by senior United States senators about this serious
matter. Zuckerberg defended himself by saying: “Every time that someone chooses to
share something on Facebook…there is a control. Right there.”

Although Mark Zuckerberg apologised live on the CNN television channel, there is not
much he can do about the way in which the general public responds to the Facebook
scandal.

Here are some Twitter posts:

“Have you guys deactivated your FB accounts already? #FacebookDataLeaks”

(Naveed Ahmad Khan @ Navid)

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 “Zuckerberg reminds you of the guy who causes a car accident but pretends to
be injured when the public confronts him for a possible beating #Facebook”
(Abishek Singhvi @DrAMSinghhvi)

“Senator, in 38 seconds, sums up what Scumbag #Zuckerberg and #Facebook

does with people’s lives. #DeleteFacebook” (P.J. @Portosj81).
Reference: www.dailymail.co.uk

1.1 From the information above, it is evident that Facebook has been in the limelight,
serving as the topic of countless discussions. In the scenario there are various
examples of uncontrolled media. Provide one (1) example from the scenario of
uncontrolled media. Justify, from the scenario, why this example will be seen as
uncontrolled media by the management team of Facebook.
[1 + 1 = 2]

1.2 Which broadcast media is mentioned in the scenario?

[1]

1.3 Imagine that someone (a malicious third party) hacks into the Facebook page of
NuMetro movie theatres. After they now have access, they make a public post
on Facebook (making it look like NuMetro is saying the following message):

“Free for All Week at NuMetro!! Anyone can enjoy a free movie, popcorn and
cooldrink at any NuMetro in South Africa during the month of May. There is no
limit to the amount of movies you would like to come and see! See you soon at
your nearest NuMetro!”

1.3.1 There are different forms of media. Is the above case an example of
earned or hijacked media?
[1]

1.3.2 Name and shortly describe any other two (2) forms of media, not
mentioned in 1.3.1.
[2 x 2 = 4]

1.4 You are about to go in and write this semester test. Your friend asks what the
difference is between public relations and marketing. What is your answer?
Explain the difference between these two concepts.
[2 x 1 = 2]

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Question 2 [10 marks]

Peter and Kamohelo are good friends and they both study B Com. They decided to
open up a car wash, Auto Bubbles, on campus. They are allowed to rent an old garage
on campus which is no longer being used by the UFS.

To start the business, Peter takes some of his savings money and buys buckets and
some cleaning cloths. Kamohelo has a high pressure spray that he donates to the
business.

Peter’s grandmother also decides to help them and gives them R8 000 cash to buy all
the other items they still need to get started. One of the first things they buy, is a cash
register and some soap.

2.1 Identify any two (2) fixed/non-current assets of Auto Bubbles from the scenario.
[2 x 1 = 2]

2.2 Identify any two (2) current/liquid assets of Auto Bubbles from the scenario.
[2 x 1 = 2]

2.3 After the first few months in business Kamohelo and Peter realise that their
business idea really took off and that they can do very well if they grow the
business by expanding. They do not have any other money to do this with at this
stage, and will therefore have to apply for finance.

2.3.1 Name any two (2) critical considerations Kamohelo and Peter have to
take into account when choosing sources or forms of finance for the
expansion of their business.
[2 x 1 = 2]

2.3.2 Name any four (4) of the typical problems that businesses, such as Auto
Bubbles, may come across when they need to obtain finance.
[4 x 1 = 4]

Question 3 [10 marks]

Retabile was looking for a new job as a personal assistant and came across the
following job advertisement on Careers24.com. Read through the job advertisement
and answer the questions that follows:

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3.1 Retabile knows that there is a difference between a job description and a job
specification. She asks you as an EBUS1514 student to explain to her in table
format, what each concept entails and to provide one (1) practical example from
the above job advertisement for each of these concepts. (Tip: redraw the table
below to answer the question.)

Job Description Job specification

Definition
Example from job
advertisement
[2 + 2 = 4]

3.2 Retabile used Careers24.com to access the job advertisement from Starke
Ayres (Pty) Ltd.

3.2.1 Does the human resource department from Starke Ayres (Pty) Ltd. use
external or internal recruitment to recruit potential candidates for the post
of personal assistant displayed in the job advertisement above?
[1]

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 3.2.2 Identify one (1) other recruitment method the human resource manager
from Starke Ayres (Pty) Ltd. can use to recruit potential candidates from
outside the company.
[1]

3.3 After Starke Ayres (Pty) Ltd recruited potential candidates for the post of
personal assistant, the most suitable candidate should be selected. Identify and
explain any two (2) selection methods the human resource team at Starke
Ayres (Pty) Ltd. can use for this task.
[2 + 2 = 4]

Total = 40 marks

End of the paper

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