nAmIB lA UnIVERSITY OF SCIEnCE AnD TECHnOLOGY

FACULTY OF MANAGEMENT SCIENCES

DEPARTMENT OF MANAGEMENT

QUALIFICATION: BACHELOR OF BUSINESS MANAGEMENT

QUALIFICATION CODE: 07BBMA LEVEL: 5

COURSE CODE: BMI511S COURSE NAME: INTRODUCTION TO BUSINESS

MANAGEMENT

SESSION: JUNE 2016 PAPER: PAPER 1

DURATION: 3 HOURS MARKS: 100

EXAMINER(S)

MODERATOR:

FIRST OPPORTUNITY EXAMINATION QUESTION PAPER

Dr. AR Asa Ms. Kangandjo Mr. M Nelenge

Ms. E Olivier Mr. K Uirab Mr. B Zealand

Mr. JVO Ojo

INSTRUCTIONS 1. Answer ALL the questions.

2. Write clearly and neatly.

3. Question 1 section A should be answered on the answer sheet provided

on page 9 of this question paper. Detach the answer sheet and submit

it with your examination booklet before you leave the exam hall.

PERMISSIBLE MATERIALS

1. Calculators are allowed .

THIS QUESTION PAPER CONSISTS OF 9 PAGES (Including this front page)

SECTION A Question 1 [20 x 2 = 40 marks]

Multiple choice questions from 1-20. Shade or Cross in the appropriate box on the Answer

Sheet provided for this question. The answer sheet is attached on page 9 of this question

paper. Please submit your answer sheet with your examination booklet.

Indicate your answers next to each corresponding number on the Answer Sheet Provided.

1.1 The efforts made by a business to provide the greatest possible need satisfaction

with limited available resources is known as ------A. need satisfaction

B. productivity

C. the rate of return on total capital

D. the economic principle

1.2 Within the economic system, profit as the prime objective is

not allowed. Workers are urged to work for the glory of the state. Labour unions are

controlled by the government. Within this system, there is very limited choice of jobs

and products. As a result, productivity is low.

A. mixed economy

B. market economy

C. socialism

D. command economy

1.3 Small and medium enterprises are defined according to the following, except

A. Number of full time employees

B. Sales turnover

C. Profit margin

D. Number of branches or units

1.4 Which one of the following must be taken into by an entrepreneur when registering

a private company?

A. The general public can invest by buying the shares of a private company.

B. The name of the private company must end with "Limited" or "Ltd".

C. The articles of association must contain a restriction on the transferability of

shares of a private company.

D. A private company must have at least two directors but the number of

members is unlimited.

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1.5 Kavango Trading sells international and national branded cosmetics to middle and

upper income men and women. The international and national branded cosmetics

sold by Kavango Trading are indicated in which one of the following components of

the business plan?

A. General company description

B. Marketing plan

C. Management plan

D. Operating plan

1.6 Synap Forte is a pain medication produced by Adcock Ingram prescribed worldwide.

Recently the Namibia Medicines Control Council has banned the medication being

used due to a substance called dextropropoxyphene (DPP) because it is believed it

could lead to dangerous irregularities in heart rhythm and rate, including cardiac

arrest and death. The decision to ban Synap Forte in Namibia has had a major

influence on Adcock Ingram because of a change due to _____ which is part

ofthe environment.

A. population health factors; micro-

B. HIV/AIDS; market

C. the institutional governmental environment; macro

D. the role of women; market

Lorraine has just completed her degree in Business Management at NUST and has opened a

new photography studio that sells cameras and equipment, develops photos and gives

classes on the art of photography.

1.7 When Lorraine deals with clients, she requires ______ skills and when she is

busy developing photos, she requires ______ skills.

A. Interpersonal; technical

B. Conceptual, informational

C. Interpersonal; conceptual

D. Informational; technical

1.8 Rank the basic management functions managers perform running a business in the

correct order.

a. organizing

b. planning

c. leading

d. control

A. b, a, c, d

B. b, c, d, a

c. c, a, b, d

D. d, a, b, c

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1.9 A business enterprise with share capital can be regarded as a ____ _

A. Public company

B. Private company

C. Public or private company

D. None of the above

1.10 Nictus has decided to sell their Samsung 107 em plasma televisions at a low-priced

special in the hope that consumers will also purchase other products when they visit

the store to buy the special. This refers to :

A. Skimming prices

B. Market penetration prices

C. A market-price level

D. Leader prices

1.11 The sequential steps in the planning process are: A. developing plans, goal-setting, feedback

B. goal-setting, mission statement, implementation

C. mission statement, developing plans, feedback

D. goal-setting, developing plans, implementation, reactive planning

1.12 Which one of the following statements about strategic goals is incorrect? A. Middle managers are responsible for formatting strategic goals that apply to

the organisation as a whole over the medium term. B. Strategic goals include a vision, a mission statement and long-term goals. C. Long-term strategic goals are derived from the organizational mission

statement. D. Strategic goals should be clear, since tactical goals derive from them.

1.13 Organising means .................. .. .... ............ ..

A. that direction is given to the organisation in the form of goals and plans

B. that management has to develop mechanisms in order to implement the

strategy or plan

C. narrowing the gap between what was planned and the actual achievement

of management, and ensuring all activities are carried out as they should be

D. influencing employees to work willingly toward the achievement or organizational objectives

1.14 According to Maslow's hierarchy of needs, if a person's esteem needs have been satisfied, then it is safe to assume that all of the following needs have also been satisfied except:

A. belonging

B. self-actualisation

C. work-avoidant

D. safety and security

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1.15 You are the human resources manager of Success Portfolio Ltd. You have decided to

do your recruitment for the position of a financial analyst by means of head-hunting.

This means that you will have to recruit by ...

A. placing an advertisement in the local newspaper.

B. visiting schools and universities to find prospective applicants.

C. placing an advertisement on the internet.

D. offering the job to someone whom the management of Success Portfolio Ltd

knows personally.

1.16 The marketing mix does not include:

A. product

B. distribution

c. practicality

D. promotion

1.17 Place the steps in human resources planning in the correct order.

a. Identify the job currently being performed in the business

b. Identify the type of employees required to perform that job

c. Identify the number of employees who will be required in future

A. a c b

B. b a c

C. bca

D. abc

1.18 Bank Windhoek sponsors various educational and charitable events. The financial

services group is very visible in athletics, sponsoring Namibia Athletics and the

Quinton-Steele Bates Athletics training camp. This is an illustration of Bank

1.19

Windhoek adhering to the principle of of the marketing concept.

A. consumer orientation

B. social responsibility

C. organisational integration

D. product orientation

is what leaders do when communicating ideas, gaining

acceptance of them, and inspiring followers to support and implement the ideas

through change.

A. Delegating

B. Managing

C. Influencing

D. Controlling

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1.20 Margaret Whitman, the chief executive officer (CEO) of eBay, announced her plans

to retire at the beginning of 2008. She had served in the position for 10 years and

was popularly known as Meg Whitman and "darling of the internet" . In 2007, she

accepted the Lifetime Achievment Award for the community of buyers and sellers

that makes up eBay.

As CEO of eBay, Whitman had power. This is a form of

______ power.

A. Referent; positional

B. Referent; personal

C. Legitimate; personal

D. Legitimate; positional

Question 2

Indicate whether the following statements are True or False in the examination booklet

provided [1 x 10 = 10 marks]

No. Statement

2.1 Franchisees have the freedom to experiment, operate and market their business based on their own vision

2.2 Corporate entrepreneurship occurs when an entrepreneur starts his own business venture.

2.3 The partners in a partnership have limited liability.

2.4 Management has complete control over the micro-environment.

2.5 Corporate citizenship is about proactive efforts by companies to make a positive contribution to society.

2.6 Total quality control is concerned with improving products and services outside the business and thereby satisfying the customers' needs.

2.7 Middle management needs more interpersonal skills than lower management.

2.8 Factoring of a debt is a means of financing by allowing the creditors, or banks to assist with the financial needs of the business through loans.

2.9 The use of a new idea to develop a better product, service, process or technique is known as creativity.

2.10 Supply chain management is concerned with the choice of suppliers.

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SECTION B

Question 3 [24 Marks]

3.1 You have graduated and decided to open a Bakery with some of your class mates. As an

operational manager you are required to make a presentation to the other management

cadres on how the bakery produces bread.

(a) Draw a basic transformation model illustrating the transformation process in your

bakery. (5)

(b) Explain the process involved in your transformation model. (Hint: In your

explanation outline the resources required) (7)

3.2 Julia Amadhila is the marketing manager of a large ladies clothing enterprise called

Fashion Wear. A new range of fashionable clothing has just been designed and after

the market segmentation process, Julia describes the selected/identified market

segment as follows: "unmarried, outgoing women between the age of 18 and 28

years of age, with an income of more than N$230 000 per year, and who lives in

Windhoek".

Identify the segmentation criteria Julia used to identify this market segment.

Motivate your answer

3.3 As a human resources consultant, why would you advise an employer against

external recruitment?

(6)

Question 4 [26 Marks]

(Show all your workings in order to get full marks)

(6)

4.1 In 1998, your grandmother put N$10 000 into a special trust to be paid to you, her

grandchild some years later in 2018. How much will this trust be worth in the year

2018 if it has been earning 8% interest, compounded semi-annually? (8)

4.2 SS Packaging Ltd has the following data for the month of February:

Selling price per unit N$200

Variable cost per unit N$50

Total fixed cost N$300 000

Expected sales (units) 5 000

Find the break-even point in units. (4)

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4.3 Capital employed in SlowGrowth Ltd consists of long-term bank loans and shareholders'

funds. The debt ratio is 58% and SlowGrowth asks the bank to give another long-term loan.

a. What formula is used to calculate the debt ratio? {2)

b. Give two reasons why a bank might decline to advance a loan to SlowGrowth. {2)

4.4 From the following financial statement information calculate the liquidity ratios.

{10) SS Packaging

Extract From the Statement of Financial Position as at 31 December 2015

2015

ｾ＠Non-Current Assets 400 Inventories {Stock) 950 Trade Receivables {Debtors) 500 Cash 50 Trade creditors 425 Bank overdraft 675 Reserves and ｅｧｵｩｴｾ＠

• Share Capital 130

• Non-Current Liabilities 120

• Retained Profit 50

SS Packaging Extract From the Statement of Financial Performance for the year ended 31 December 2015

2015

ｾ＠Sales Revenue 5 500 Cost of Sales 2 850 Expenses 2 540 Profit {before tax) for the Year 110 Taxation 40 Profit {after tax) for the Year 70 Dividends 20 Retained Profit 50

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SURNAME & INITIAL:-----------

STUDENT NUMBER:------------

Question 1 (ANSWER SHEET- Cross in the appropriate box) (2 x 20 = 40) NB: THIS ANSWER SHEET SHOULD BE SUBMITTED WITH YOUR ANSWER BOOK.

NO A B c D

1.1

1.2

1.3

1.4

1.5

1.6

1.7

1.8

1.9

1.10

1.11

1.12

1.13

1.14 .. . -

1.15

1.16 '

1.17

1.18

1.19

1.20

TOTAL MARKS 20 X 2 = 40

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