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Assignment 1 Management

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Tshepang Kanono
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3 views

Assignment 1 Management

Uploaded by

Tshepang Kanono
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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Section A
Question 1
Various options are given as possible answers to the following
statements/questions. Choose the answer and only write the correct letter (a-d)
next to the question number (1.1 – 1.10)
1.1 B
1.2 B
1.3 C
1.4 B
1.5 A
1.6 A
1.7 A
1.8 A
1.9 A
1.10 C

Question 2
Indicate whether the following statements are true or false. Write down the only
your choice of TRUE or FALSE next to the correct number of the question (2.1 –
2.10) in the answer book.
2.1 True
2.2 True
2.3 False
2.4 True
2.5 True
2.6 False
2.7 False
2.8 True
2.9 True
2.10 True
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Question 3
3.1 List any FIVE factors which can determine the failure or success of your
farming business and are outside your control.
 Discrimination against smaller enterprises
 Changes in the economic climate
 Change in political environment
 Demographic changes
 Changes in the buying patterns of the consumers.

3.2 Answer the following questions regarding a company as a form of ownership:


3.2.1 Name the TWO kinds of companies which are classified by the
companies Act.
 Companies with share capital
 Companies limited by guarantee

3.2.2 Name and define the TWO important documents that need to be signed
at the establishment of that company.
 Memorandum of Association. It contains the name of the company, its objectives
and the description of the share capital used in the establishment.
 Memorandum of Incorporation. It contain the rules and regulations that will be
applied in the management of the company.

3.2.3 List FIVE advantages of companies as a form of ownership.


 Transfer are simplified
 Continuity is simplified
 Limited liability
 Estate taxation benefits
 Possible increase in efficiency
3.3 Choose TWO characteristics for each form of ownership from the list that
follows. Write only the letters of your choice (a – j) next to the number of the
question (3.3.1 – 3.3.4)
3.3.1 G & A
3.3.2
3.3.3
3.3.4 H & D
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3.3.5

3.4 Answer the following questions regarding trusts as a form of ownership:


3.4.1 Name the TWO main types of trusts in South African legal system provides
for
 Testamentary trust
 and Contractual trust.

3.4.2 Describe FOUR obligations of a trustee in a trust.


 They are to manage the assets of the trust with care.
 To exercise good faith towards any beneficiary at all times.
 To keep good record.
 To keep their assets separate from those of the trust.

Question 4
4.1 The diagram below gives a representation of three dimensions into which
entrepreneurial activities are divided. Study the diagram and answer the
questions that follow:

4.1.1 Identify the THREE dimensions numbered (a) – (c).


A - Creation of organisation
B – Economic Innovation
C – Profit seeking in the market-focused sector

4.1.2 State the FIVE criteria that an undertaking must fulfil to be innovative.
 Creating new products.
 Introducing new production methods.
 Entering new markets
 Acquiring new stock resources.
 Industrial re-organisation.

4.1.3 Define the term entrepreneur


 A small business person.

4.1.4 Name and briefly explain the FIVE functions of the entrepreneur in the
production process.
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 Combine factors of production – any business enterprise is a creative activity


where different factors of production are applied to deliver the end result.
The onus rests upon the entrepreneur to select these factors of production or
any combination.
 Determine Rewards for Factors of Production – it is the responsibility of the
entrepreneur to determine the rand values of the different factors of
production that are used during the production process. Remuneration of
both management and other employees are essential in this process.
 Planning the Organisation – during the execution of the management
function the entrepreneur is responsible for the planning of the different
functional management facets.
 Risk Taking – the willingness to take risks is one of the understanding
characteristics of an entrepreneur. He is willing to implement decisions
although the outcome is not known and uncertain.
 Expansion of Business – as central decision maker in the organisation, the
entrepreneur is also responsible for the expansion and progress in the
business.

4.2 SIX factors to improve profitability of crop production on farm.


 Choice of crops
 Production system used
 Level of technical competencies
 Extent of production
 Input cost
 Output

4.3 SIX advantages of partnership ownership


 It is easy and cheap to establish a partnership.
 It is not subjected to special taxation as in the case of companies.
 The management and control of partnerships is not regulated by legislation as in the
case with companies.
 It offers the advantage that more than one person can put together the finance and
other assets to target a mutual objective.
 Partners usually have a personal interest in the success of the partnership.
 Dissolution of a partnership is relatively easily.

4.4 State FOUR reasons why the environmental analysis is important when doing
a strategic planning.
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 The environment changes constantly and therefore management needs a deliberate


effort in analysing the environment to be able to keep up with the changes.
 This analysis is needed to identify factors in the environment that may be a threat to
the objectives and strategy of the farming concern.
 It needs to be determined which factors in the environment offer opportunities in
reaching the goals through possible deviations in the strategy.
 There is a bigger chance of success when the environment is analysed systematically.

4.5 Give any TWO reasons why you would not recommend a sole trader as form
of ownership to a farmer.
 The continuity of this form of ownership is dependent on the lifespan of the owner.
 The owner is personally liable for an debts incurred in the business

Question 5
5.1 An aid that you may use during strategic planning is PLIABILITY. Explain what
is meant by pliability and how a farmer may benefit from it.
 Pliabililty refers to the ability to adapt and flexibility.

5.2 Discuss the THREE advantages of strategic planning.


 Strategic planning allows the farmer to investigate and evaluate the external
environment whereby more profitable opportunities for the farm may be identified.
 The strategic planning process requires a better understanding and awareness of
opportunities, as well as threats in the external environment – any resources on the
farm may be identified.
 It focuses the farmer’s actions and thoughts according to a long-term plan and by
doing so it provides guidance to the farmer in managing his daily activities on the
farm and provides a framework for decision making.

5.3 Briefly explain why the management of procurement and sales is important.
The farmer has very limited or no influence on the price of agricultural produce. The farmer
plays an important role in the decision of prices of goods and raw materials to be purchased
as well as the selling price of the produce, which will influence the final profits.

5.4 Briefly explain in your own words, the functions of the entrepreneur in the
production process.
5.5 List any FIVE characteristics of a good entrepreneur.
 Motivation to achieve
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 Positive self-image
 Acceptance of risk
 Intelligence and educations
 Pursuit of independence

5.6 Indicate in each of the following cases whether the event is CONTROLLABLE
or UNCONTROLLABLE.
5.6.1 C
5.6.2 U

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