The Independent Institute of Education 2017

MODULE NAME: MODULE CODE:

BUSINESS MANAGEMENT AND ENTREPRENEURSHIP BUME112

ASSESSMENT TYPE: EXAMINATION (PAPER ONLY)

TOTAL MARK ALLOCATION: 120 MARKS
TOTAL HOURS: 2 HOURS (+10 minutes reading time)
INSTRUCTIONS:
1. Please adhere to all instructions in the assessment booklet.
2. Independent work is required.
3. Five minutes per hour of the assessment to a maximum of 15 minutes is dedicated to reading
time before the start of the assessment. You may make notes on your question paper, but not
in your answer sheet. Calculators may not be used during reading time.
4. You may not leave the assessment venue during reading time, or during the first hour or
during the last 15 minutes of the assessment.
5. Ensure that your name is on all pieces of paper or books that you will be submitting. Submit
all the pages of this assessment’s question paper as well as your answer script.
6. Answer all the questions on the answer sheets or in answer booklets provided. The phrase
‘END OF PAPER’ will appear after the final set question of this assessment.
7. Remember to work at a steady pace so that you are able to complete the assessment within
the allocated time. Use the mark allocation as a guideline as to how much time to spend on
each section.
Additional instructions:
1. This is a CLOSED BOOK assessment.
2. Calculators are not allowed.
3. For multiple-choice questions, give only one response per question. The marker will ignore
any question with more than one answer, unless otherwise stated. You should, therefore, be
sure of your answer before committing it to paper.
4. Answer all questions.

© The Independent Institute of Education (Pty) Ltd 2017

Page 1 of 9
The Independent Institute of Education 2017

Question 1 (Marks:20)
Multiple-choice questions: Select one correct answer for each of the following. In your answer
booklet, write down only the number of the question and next to it, the number of the correct
answer. E.g. 1.3 4

Q.1.1 Nearly …… of a manager’s time is spent actively exchanging information as they attend (2)
meetings, dictate letters, talk on the telephone, send and receive e-mail and reports
and so on.
(1) 20%;
(2) 50%;
(3) 80%;
(4) 100%;
(5) 25%.

Q.1.2 The greatest assets of an organisation are: (2)

(1) People;
(2) Machinery;
(3) Financials;
(4) Markets;
(5) Buildings.

Q.1.3 Ranking as a method of Performance Appraisal rates performance by: (2)

(1) systematically evaluating each employee’s job-related strengths;
(2) Evaluating employees on a series of performance dimensions along a points
scale, usually five or seven points;
(3) Using a numerical scale to measure a range of performance;
(4) Exchanging information about the employee’s strengths and developmental
needs during the interview;
(5) Comparing employees doing the same or similar work.

© The Independent Institute of Education (Pty) Ltd 2017

Page 2 of 9
The Independent Institute of Education 2017

Q.1.4 Medium-term goals are usually to be achieved within a …… period. (2)

(1) Five year;
(2) One year;
(3) Two year
(4) Three year;
(5) Ten year.

Q.1.5 Measurable means that goals must be: (2)

(1) realistic and attainable;
(2) objectively evaluated or quantified;
(3) Consistent with management perceptions and preferences;
(4) Congruent and attainable;
(5) flexible at the expense of specificity to allow for modifications.

Q.1.6 Strategic plans focus on: (2)

(1) people and action to implement the strategic plans;
(2) the entire organisation and interaction with the external environment;
(3) Single use plans and standing plans;
(4) segmentation of the market;
(5) non-recurring activities such as the refurbishment of a new office building.

Q.1.7 All of the following aspects form part of a job description except: (2)
(1) Working conditions;
(2) The job title;
(3) Summary of work;
(4) Duties to be performed;
(5) Qualifications of the applicant.

© The Independent Institute of Education (Pty) Ltd 2017

Page 3 of 9
The Independent Institute of Education 2017

Q.1.8 The term business plan is described as: (2)

(1) A set of steps taken to identify a problem and selecting the most effective
solution;
(2) The process of monitoring performance;
(3) A roadmap concerning where the business wants to go, and the tactics that will
be used to achieve its goals;
(4) The means of arranging tasks for goal attainment;
(5) An organisational structure made up of self-contained units or divisions.

Q.1.9 When a manager plays a role of decision-making he does the following except: (2)
(1) Spokesperson;
(2) Negotiator;
(3) Problem solver;
(4) Allocator of resources;
(5) Entrepreneur.

Q.1.10 In the macro-environment, technological environment is responsible for: (2)

(1) people’s lifestyles, habits, and shaping culture;
(2) Influencing the local and foreign trends and event;
(3) man-made improvements such as roads and bridges;
(4) the pace of innovation and change;
(5) government influence management.

© The Independent Institute of Education (Pty) Ltd 2017

Page 4 of 9
The Independent Institute of Education 2017

Question 2 (Marks:10)

Match the description in Column A with the correct term from Column B. In your answer booklet, write
down only the question number and, next to it, the letter of the correct answer.

Column A Column B
Q.2.1 Shows relationship of components in a single a. Gross profit margin, operating
financial statement. profit margin, net profit margin.
Q.2.2 The raw, unanalysed numbers and facts about b. Information
conditions or events from which we draw
information.
Q.2.3 Percentage analysis of the increases and c. Net working capital, current ratio,
decreases in the items on comparative financial quick ratio.
statement.
Q.2.4 Allow one to communicate with your computer. d. System software.
Q.2.5 Consists of electronic components that executes e. Application software,
and interpret the computer program’s
instructions.
Q.2.6 The processed data that is relevant to a f. Vertical financial statement
manager. analysis.
Q.2.7 Profitability Analysis g. Systems analysis.
Q.2.8 Manages the operations of the computer. h Horizontal financial statement
analysis
Q.2.9 Performs specific data processing or text- i Central processing unit (CPU),
processing functions such as a word-processing
package.
Q.2.10 Liquidity Analysis j Data
k Information system
l Input devices,

© The Independent Institute of Education (Pty) Ltd 2017

Page 5 of 9
The Independent Institute of Education 2017

Question 3 (Marks:10)
Franchising is one of the methods used to enter the business world.

Q.3.1 Explain what is meant by the term franchise. (2)

Q.3.2 Outline any two advantages and two disadvantages of franchising. (8)

Question 4 (Marks:10)
Discuss the characteristics needed by managers for effective decision making.

Question 5 (Marks:10)
The timing and scope of the change are important because most organisational change efforts run
into some form of resistance from employees.

Identify and describe the reasons why people resist change.

Question 6 (Marks:13)
Control is the final step in the management process and the term “control” implies that the
behaviour of individuals can be influenced in the course of activities and events.

Q.6.1 Explain the important role played by control in any organisation. (5)

Q.6.2 Outline the main steps in the control process. (8)

Question 7 (Marks:10)
Effective and efficient processing of information is crucial in an organisation. This can be achieved
by creating organisations like ‘Matrix’ or ‘Network’ organisations.

Describe how a Network organisation works and highlight its benefits to the Network organisation
manager.

© The Independent Institute of Education (Pty) Ltd 2017

Page 6 of 9
The Independent Institute of Education 2017

Question 8 (Marks:12)
Read the case study below and answer the questions that follow:
Williams & Company – Macro environment

Williams & Company (known as WC) is a South African based management consulting firm. WC is a
medium sized business in existence for 20 years. The firm provides consulting services to
corporations including business optimisation consulting, project management, productivity
improvement training, and improvement measurement systems. In the last decade the business
environment, locally and internationally, shifted drastically. WC had to contend with the following
changes:

 A world-wide economic down-turn which resulted in large businesses going down. The
financial services industry took serious strain as lending practices were confronted by
governments and regulatory bodies. This lead to the institution of new compliance,
governance and risk management policies.
 Certain countries headed towards bankruptcy which required international intervention and
assistance provided by the world-bank.
 The market generally, across industry-sectors, became much more cost sensitive. A trend
emerged where the start-up rate of new small and medium-sized enterprises (SME
businesses) diminished. Liquidation in SME sector increased at an alarming rate.
 Due to corporate restructurings and down-sizing, and greater risks for entrepreneurs in the
SME sector, retrenchments became the order of the day, and new employment creation
stagnated.
 The management consulting industry was not unaffected. Business models changed, and
consultancies merged and formed joint ventures to achieve greater market share and drive
competition out. Consultancies also expanded into new markets particularly in Africa and
Asia in response to limited growth opportunities in existing markets. Utilisation of new
technologies particularly in information management became a priority in order to create
more cost-effective structures, and to gain advantage in greater access to market
intelligence.
 In the South African context, government initiated a more aggressive push towards Broad-
Based Black Economic Empowerment (BBBEE). This changed the ownership profile of
businesses, as well as procurement and supply policies and practices. The drive towards
employment equity became sharper, and labour legislation became much stricter concerning

© The Independent Institute of Education (Pty) Ltd 2017

Page 7 of 9
The Independent Institute of Education 2017

resourcing and employee relations. Furthermore, employee development became regulated

in terms of skills development legislation. The financial services industry became more
regulated as far as credit supply was concerned.
 Moreover, substantial increases in fuel prices in South Africa, driven by the oil price, and
energy supply capacity challenges and the consequent increase in costing of electricity, had
a major inflationary impact across the economy.
 Instability in commodity prices and worsening industrial relations strained the resource
sector, a major contributor to the South African economy.

WC launched several initiatives to respond to the changes in the business environment. A major
strategic movement was to form a business partnership with a global consultancy to ensure access
into Africa and to achieve market consolidation.

Q.8.1 Identify macro-economic factors that drove change at W&C and motivate your (12)
answer with the quote from the case.

Question 9 (Marks:15)
Organisations use different types of training methods to improve the performance of their
employees.

Q.9.1 Discuss what training for the job does to employees in an organisation. (5)

Each group has a certain structure that determines how individual group members and the group
as a whole function. Briefly explain the following five factors that influence group structures.

Q.9.2 Leadership; (10)

Norms;
Cohesiveness;
Status hierarchy; and
Diversity.

© The Independent Institute of Education (Pty) Ltd 2017

Page 8 of 9
The Independent Institute of Education 2017

Question 10 (Marks:10)
Each and every organisation need to have a plan. A plan enables an organisation to get things done
through knowing what needs to be done or how to do them.

Explain the importance of planning for an enterprise.

END OF PAPER

© The Independent Institute of Education (Pty) Ltd 2017

Page 9 of 9