BUSM5111 Quiz 1

Businesses are vastly different to one other; however, they all use the world’s limited resources to meet society’s needs and therefore have four elements of business in common.

• True

• False

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

The purpose of business management is to ensure that the business produces the most units of goods or services at the lowest possible cost, in the shortest amount of time, and of the right quality.

• True

• False

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

 

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

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

Examples of businesses that would typically fall into the formal sector include hawkers, vendors, freelance plumbers and builders, a hairdresser or barber operating on the roadside or working from home.

1.      True

2.      False

• TRUE

• FALSE

Parastatals – also called government organisations, have varying levels of government control and intervention through government ownership.

• TRUE

• FALSE

Businesses are vastly different to one other; however, they all use the world’s limited resources to meet society’s needs and therefore have four elements of business in common.

• TRUE

• FALSE

Non-profit organizations are primarily focused on generating profit for their owners.

• FALSE

• TRUE