Chapter 1 - Practice Questions and Answers
Chapter 1 - Practice Questions and Answers
1. Identify the management function, from the following available options that is the
process of delegating and co-ordinating tasks and allocating resources to achieve
goals and objectives:
a. Leading
b. Planning
c. Controlling
d. Organising
[1]
2. The business function that is responsible for transferring goods and services to
customers in order to satisfy their needs, as well as the activities that make the
transfer possible.
a. Human resource
b. Public relations
c. Marketing
d. Purchasing
[1]
a. Natural resource
b. Financial resource
c. Human resource
d. Entrepreneurship
[1]
4. Naledi was promoted to CEO by the board of directors. She will operate at a/an:
a. Operational level
b. Managerial Level
c. Strategic level
d. Functional level
[1]
True and False Questions:
5. During delegation, various possible solutions are considered for problems and the
best solution is chosen.
[1]
7. Being effective means that managers in an organisation are using resources wisely
and in a cost-effective manner and being efficient means that managers in an
organisation are making the right decisions and successfully implementing them.
[1]
8. Diagnostic skills refer to the manager’s ability to see and understand the business
as a whole, as well as how all the parts fit together.
[1]
Answers:
Multiply choice answers:
1. d. Organising
2. c. Marketing
3. b. Financial resource
4. c. Strategic level
5. False
6. True
7. False
8. False
Scenario questions:
Scenario 1:
MTN has made a quick move to replace the CEO of its South African operation, Mteto
Nyati, who is leaving the telecommunications group to take the reins from Robbie
Venter as CEO of Altron. Altron announced, after markets closed on Tuesday, that
Nyati will take over from Venter by 1 July. It now appears he’ll be able to start sooner,
given that MTN has said he will step down as CEO of the South African operation with
effect from 13 March. Former Vodacom executive Godfrey Motsa, who is currently
vice-president of the South and East Africa region at MTN Group, will take over as
CEO of the South African operation from Nyati on the afore-mentioned date. Before
joining MTN last year, Motsa was chief officer of the consumer business unit at
Vodacom South Africa.
1.1. On what level of management is Mr. Godfrey Motsa within MTN? Motivate your
answer from the scenario.
[1 + 1 = 2]
1.2 Mr. Godfrey Motsa will be responsible for formulating the goals that will enable
MTN South Africa to realise its mission and vision. Mention and explain one (1)
management skill required to carry out such a task. (Hint: Your answer should
apply to the case study)
[1 + 1 = 2]
1.3 Mention any three (3) core management functions that are vital for Mr. Godfrey
Motsa to manage MTN South Africa successfully.
[3 x 1 = 3]
Scenario 2:
Sipho owns a small company called Africa Rise Creation in the Free State province.
His company manufacturer’s unique leather products, such as shoes, belts, purses,
wallets, slings and laptop bags for both males and females. Africa Rise Creation
employed six young people who are helping Sipho with the production
(manufacturing), marketing and selling of the products in the Free State province. On
a daily basis, Sipho informs his staff what is expected of them at work and assigns
responsibility to workers, ensuring orders are delivered to the clients in time. The
company has grown significantly and its annual financial statements are impressive,
as the profit margin grew from 15% to 25% in the 2016/17 financial year. Moreover,
Africa Rise Creation attracted consumers from other provinces because of their ability
to timeously sell and deliver its products outside the Free State province.
Consequently, Sipho is of the opinion that it is about time to expand Africa Rise
Creation’s footprint to other provinces in order to increase its market share.
2.1 As the owner/manager of Africa Rise Creation, Sipho needs to use additional
management functions to successfully manage the business. Identify two (2)
additional management functions Sipho is already using. Justify your answer
by referring to the scenario.
[2 x 2 = 4]
2.2 Identify the management skill displayed by Sipho in the following sentence:
“Consequently, Sipho is of the opinion that it is about time to expand Africa Rise
Creation’s footprint to other provinces to increase its market share.”
[1]
2.3 List two (2) business functions that are performed by the employees of Africa
Rise Creation to ensure that the enterprise is operating effectively and efficiently.
(Hint: you should only refer to business functions performed by the employees
and not by Sipho)
[2 x 1 = 2]
Scenario Answers:
Scenario 1:
Conceptual skill
It will allow him to think strategically and see the bigger picture to be able to
make decisions that will affect MTN South Africa as a whole.
OR
Diagnostic skills
It will help him to diagnose and analyse problems within MTN South Africa
by studying their symptoms and thereafter develop appropriate solutions.
[1 + 1 = 2]
1.3 ANY THREE
• Planning
• Organising
• Leading
• Control/Activation
[3 x 1 = 3]
Scenario 2:
2.1 Communication
On the daily basis, Sipho explain to his staff what is expected of them at
work.
Delegating
Sipho delegates the responsibility of ensuring orders are delivered to the
clients in time to his employees.
[2 x 2 = 4]