Business Management BUSM5111

QUESTION 1

Some of the characteristics of a mixed economy are that__________.

(i)        the level of government intervention fluctuates

(ii)       the government chooses what to produce

(iii)      there is free competition in all sectors

(iv)      it is normally associated with a socialist form of government.

• a.         (i) and (ii)

• b.         (ii) and (iii)

• c.         (i) and (iv)

• d.         (i), (ii), (iii) and (iv).

QUESTION 2

Which of the following businesses listed below do not form part of the formal sector?

a.      A clothing store in a mall

b.     A vendor selling goods at the traffic light

c.      A shopping centre

d.     A cellphone company

• A

• B

• C

• D

QUESTION 3

In which economic system do decisions by buyers and sellers result in the economic decisions of the country?

a. The traditional system

b. The command system

c. The mixed-market system

d. The market system

• A

• B

• C

• D

QUESTION 4

Robert sells jars of organic, sugar and salt free peanut butter. His business starts growing and he employs Elliot to help him produce more of his product, which he sells for R50 a jar. Robert also buys a new industrial blender to speed up the peanut butter-making process. The capital in this example is:

 

a. The blender

b. Elliot

c. The peanuts

d. The profits

• A

• B

• C

• D

QUESTION 5

 

A society for the Prevention of Cruelty to Animals (SPCA) is an example which type of organisation?

 

a. Private organisation,

b. State-owned enterprises (SOEs),

c. Non-profit organisation,

d. Parastatal organisation.

• A

• B

• C

• D

QUESTION 6

As a manager, you will need to develop your people skills, as well as develop increasingly advanced technological skills. The 3 most needed skills in 2020 are:

a.      Complex problem solving, Negotiation, Quality control

b.     Complex problem solving, Critical thinking, Creativity.

c.      Co-ordinating with others, People management, critical thinking.

d.     Cognitive flexibility, Creativity, Service orientation.

• A

• B

• C

• D

QUESTION 7

Which of the following can be regarded as a characteristic of a centrally planned economy?

a.      there is very little state involvement in the market

b.     resources are set aside for use of government officials only

c.      there is free competition

d.     all factors of production are owned by the government.

• A

• B

• C

• D

QUESTION 8

An advantage of a centrally planned economy is that __________.

a.                private citizens are free to start a business

b.               the consumer decides what is to be produced

c.                there is an efficient allocation of resources

d.               workers are less likely to be exploited

 

• A

• B

• C

• D

QUESTION 9

Businesses exist to:

a.      provide employment and job satisfaction to employees

b.     satisfy humankind’s wide and almost unlimited range of needs in order to make profit

c.      provide a return on investment to the owners of the business

d.     generate taxable income to fund the government.

• A

• B

• C

• D

QUESTION 10

Which of the below options do not form part of the four elements that businesses have in common:

a.      Humans

b.     Goods and services

c.      Sustainability

d.     Profit

• A

• B

• C

• D