BSM1501/101/3/2013

Tutorial letter 101/3/2013

Business Management 1A
BSM1501

Semesters 1 & 2

Department of Business Management

IMPORTANT INFORMATION:
This tutorial letter contains important information
about your module.
 CONTENTS

Page
1 INTRODUCTION ................................................................................................................ 3
1.1 Study material ..................................................................................................................... 4

2 PURPOSE OF AND OUTCOMES FOR THE MODULE .................................................... 5

2.1 Purpose ............................................................................................................................... 5
2.2 Outcomes ............................................................................................................................ 5

3 LECTURERS AND CONTACT DETAILS .......................................................................... 6

3.1 Lecturers .............................................................................................................................. 6
3.2 Department .......................................................................................................................... 6
3.3 University ............................................................................................................................. 6

4 MODULE-RELATED RESOURCES ................................................................................... 7

4.1 Prescribed books ................................................................................................................. 7
4.2 Recommended books ......................................................................................................... 7
4.3 Electronic Reserves (e-Reserves) ..................................................................................... 7

5 STUDENT SUPPORT SERVICES FOR THE MODULE .................................................... 8

6 MODULE-SPECIFIC STUDY PLAN .................................................................................. 9

7 MODULE PRACTICAL WORK AND WORK-INTEGRATED LEARNING ....................... 9

8 ASSESSMENT .................................................................................................................. 10
8.1 Assessment plan ............................................................................................................... 10
8.2 General assignment numbers .......................................................................................... 11
8.2.1 Unique assignment numbers............................................................................................. 11
8.2.2 Due dates for assignments ................................................................................................ 12
8.3 Answering of assignments ................................................................................................ 12
8.4 Submission of assignments ............................................................................................... 13
8.5 Assignments ...................................................................................................................... 14
8.5.1 Assignment 01 ................................................................................................................... 14
8.5.2 Assignment 02 ................................................................................................................... 17

9 OTHER ASSESSMENT METHODS ................................................................................. 32

10 EXAMINATION ................................................................................................................. 32

11 FREQUENTLY ASKED QUESTIONS .............................................................................. 32

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 BSM1501/101/3/2013

1 INTRODUCTION

Dear Student

Welcome to UNISA and in particular to Business Management 1A. I am Ms Etta Neethling, your
lecturer, and am assisted by Ms Elsa Kruger, Ms Nadia Marx and Mr Andreas de Beer.

This tutorial letter provides you with general information and introduces you to this module.
Read it through carefully as it contains important information regarding assignments, year marks
and the examination.

Although you will receive extensive guidance from the assignments, tutorial letters and study
material, you are more than welcome to contact us if you need to. We are fully aware that you
sometimes study under very difficult circumstances and we therefore invite you to contact us if
you require information, encounter problems, or if you want to discuss any aspect of the work. It
is very important to us that you pass this module and we will do our best to assist you in this
regard. If you would like to discuss anything with us, please feel free to phone us, or make an
appointment to see us personally.

You are welcome to phone us on any weekday between 08:00 and 16:00. If you would like to
see us in person, we would appreciate it if you make an appointment first to ensure that we will
be available.

We wish you success in your studies. We hope that you will not only pass the examination with
flying colours, but also thoroughly enjoy the course.

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1.1 Study material

The Department of Despatch should supply you with the following study material for this study
unit:

• Tutorial letter 101/3/2013

• Tutorial letter 301/3/2013
• Study guide
• Workbook and answer book
• Mark-reading sheets

If you have any enquiries about study material, please consult the my Studies @ Unisa
brochure for contact details.

Please note
Some of this study material may not have been available when you registered. Study material
that was not available when you registered will be posted to you as soon as possible, but is
also available on myUnisa.

myUnisa
The virtual campus, myUnisa, is an Internet website that has been developed to improve
communication between lecturers and students, as well as support the delivery of distance
education. It is available to all registered Unisa students.

If you have access to a computer that is linked to the Internet, you can quickly access resources
and information at the university. From this site students have access to both administrative and
academic details regarding their studies at Unisa. Administrative information includes academic
and assignment records, examination results and financial records. Academic information
comprises online courseware where available, subject-related academic guidance, discussion
groups, recommended books and particulars of students studying the same subject.

Website: http://my.unisa.ac.za

Please consult the my Studies @ Unisa brochure for more information on myUnisa.

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 BSM1501/101/3/2013

2 PURPOSE OF AND OUTCOMES FOR THE MODULE

2.1 Purpose

The purpose of the module Entrepreneurship and how to establish your own business is for you,
as a student, to acquire foundational concepts in business management. This module will
develop your understanding of entrepreneurship and it will teach you how to become an
entrepreneur and introduce you to the route that you have to follow to start your own business.
It provides a foundation for all later modules in this subject.

2.2 Outcomes

After completing this module, you should have the competence to identify and start a small
business enterprise with the necessary assistance and support, and to develop business plans
that comply with appropriate laws and that reflect an ethical approach to management.

The intended outcomes can be distinguished as follows:

EXIT LEVEL OUTCOMES SPECIFIED OUTCOMES

1. Compile a business plan with
assistance
2. Implement a business plan
with assistance
1.1 Apply market research techniques and the SWOT
analysis to identify and evaluate opportunities; sketch
customer profiles; and identify competitive advantages
1.2 Apply financial marketing knowledge and planning and
information technology skills to generate a business
plan
2.1 Apply knowledge of the business world and
communication and networking skills in obtaining a
support base
2.2 Use knowledge of legal requirements to register an
enterprise and ensure compliance
2.3 Apply knowledge of business practice to obtain the
necessary resources
2.4 Identify entrepreneurial skills to start an enterprise
according to the business plan

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3 LECTURERS AND CONTACT DETAILS

3.1 Lecturers

NAME CAMPUS TELEPHONE E-MAIL ADDRESS

Ms Etta Neethling Florida 011 471 2151 ANeethli@unisa.ac.za

Ms Elsa Kruger Pretoria 012 429 4936 krugee1@unisa.ac.za

Ms Nadia Marx Pretoria 012 429 8014 marxn@unisa.ac.za

Mr Andreas de Beer Pretoria 012 429 2593 adebeer@unisa.ac.za

3.2 Department

Department of Business Management

Telephone: 012 429 4220

3.3 University

General Unisa contact details are available in the my Studies @ Unisa brochure.
Please use your student number when you contact the university.

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4 MODULE-RELATED RESOURCES

4.1 Prescribed books

You need to purchase the following textbook

• C Nieuwenhuizen, JW Strydom.
Entrepreneurship and how to establish your own business.
4th edition. 2012. Cape Town: Juta.
ISBN Number: 9780702189203

• Please consult the list of official booksellers and their addresses in the my Studies @
Unisa brochure.

• Prescribed books can be obtained from the University’s official booksellers. If you have
difficulty locating your book(s) at these booksellers, please contact the Prescribed Books
Section at Tel: 012 429 4152 or e-mail: vospresc@unisa.ac.za

4.2 Recommended books

There is a wide range of books available on the topics discussed in the textbook and we are
therefore not going to recommend a specific book. At the end of some of the chapters of the
textbook you will find a list of references that deals with that particular topic.

4.3 Electronic Reserves (e-Reserves)

There are no e-Reserves for this module.

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5 STUDENT SUPPORT SERVICES FOR THE MODULE

5.1 Tutorial support

Unisa offers tutorial support for students at the various Unisa regional learning centres
throughout the country. For details of a learning centre near you, please consult the my Studies
@ Unisa brochure.

Please note the following regarding tutorial sessions

• Sessions – tutorial support depends on the number of students that are interested in these
sessions. If there are not enough students that want tutorial sessions for this subject at your
regional office, no sessions will be offered.

• Payment – you have to pay to attend these sessions. Information regarding the cost of
these sessions is available at your nearest regional office.

• Venues – information on where and when the sessions will be held is available at your
nearest regional office.

• Attendance – although we strongly recommend that you attend these sessions, attendance
is not compulsory.

• Facilitators – these sessions are facilitated by tutors, not by your lecturers.

• Enquiries – any enquiries regarding these sessions should be directed to your regional
office, not to the lecturers, as we do not schedule these sessions.

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6 MODULE-SPECIFIC STUDY PLAN

Use the my Studies @ Unisa brochure for general time management and planning skills.

Compile your own study plan according to the guidelines in the my Studies @ Unisa
brochure. When you compile the study plan you should take your personal circumstances and
your work schedule into consideration, as well as the other subjects for which you have
registered. Keep in mind that you should allow yourself enough time to study the required parts
of the study material thoroughly so that you would be able to answer the assignments. You
should also make provision for enough time to do revision for the examination.

Keep the following steps in mind when you draw up the study plan:

1. Indicate the due dates for both assignments and the examination period on the study
plan.

2. Use these dates to do backward planning to determine how many weeks would be
available to cover all the chapters in the study material.

3. Determine the contents of the chapters – some of the chapters contain much more detail
than others.

4. Divide the number of weeks at your disposal with the number of chapters in the module.

5. Decide on the completion date of each chapter.

6. Try by all means to keep to your schedule!

7 MODULE PRACTICAL WORK AND WORK-INTEGRATED LEARNING

There are no practicals for this module.

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8 ASSESSMENT

8.1 Assessment plan

The assignments form an integral part of your study programme and you have to complete and
submit both the assignments for evaluation.

Please note: If you do not submit assignment 01, your registration will be cancelled
automatically and you will not be allowed to write the examination. No late assignments will
be accepted.

Assignment 01 counts 10% of your year mark and assignment 02 counts 90%. The year
mark contributes 10% towards your final mark, and the examination mark contributes 90%.

Please note that your year mark does NOT have to be 40% to gain admission to the
examination, as your active participation in the learning process automatically gives you
admission to the examination.

You need to achieve a final mark of 50% in order to pass this subject/module, and a final
mark of 45% to qualify for the supplementary examination.

Please note: If you obtain an examination mark of less than 40% your year mark will not
be considered for your final mark. This means that you will not qualify for the
supplementary examination if you obtain less than 40% in the examination.

Calculation of your year mark

Example
Assignment 01: 70%
Assignment 02: 50%
Year mark: (70 x 10%) + (50 x 90%)
= 7 + 45
= 52%

Calculation of your final mark

Example
Year mark: 52%
Examination mark: 60%
Final mark: (52 x 10%) + (60 x 90%)
= 5,2 + 54
= 59,2
= 59%

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8.2 General assignment numbers

Please note!
This subject is a semester course, which means you can either be registered for
Semester 01, or for Semester 02. Please make sure for which semester you have
registered before you submit your assignments, otherwise the system will reject your
assignments.

• On your proof of registration is a column that indicates the registration period for each
of your registered subjects:
o If the registration period for this subject is indicated as ‘1’, it means that you are registered for
Semester 01 and that you must follow the due dates for Semester 01. You will write your
examination during the May/June examination period.
o If the registration period for this subject is indicated as ‘2’, it means that you are registered for
Semester 02 and that you must follow the due dates for Semester 02. You will write your
examination during the October/November examination period.

• You have to submit TWO compulsory assignments:

o Students that are registered for Semester 01 have to submit Assignment 01 and Assignment
02 on the due dates for Semester 01, as indicated under topic 8.2.2 of this tutorial letter.
o Students that are registered for Semester 02 have to submit Assignment 01 and Assignment
02 on the due dates for Semester 02, as indicated under topic 8.2.2 of this tutorial letter.

• Please note that the assignments for Semester 01 and Semester 02 are the same.

8.2.1 Unique assignment numbers

Semester 01
Assignment 01 883351
Assignment 02 684260

Semester 02
Assignment 01 845140
Assignment 02 756431

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8.2.2 Due dates for assignments

Semester 01
Assignment 01 11 March 2013
Assignment 02 25 March 2013

Semester 02
Assignment 01 02 September 2013
Assignment 02 16 September 2013

PLEASE ENSURE THAT YOU SUBMIT THE ASSIGNMENTS BY THE DUE DATES!

Rules that apply to due dates

• The due date for an assignment is not the date on which you must post your assignment,
but the date by which we must receive it.

• No assignment will be marked before the due date. Utilize your time to ensure that the
assignment you submit reflects your best work.

• No assignment will be accepted after the due date – it will be returned to you directly
without being marked, as the system will not accept your assignment.

• Please note: No extensions will be granted for assignments!

8.3 Answering of assignments

Assignments 01 and 02
• Use the mark-reading sheet that is provided for this purpose.

• Use a HB pencil for completing your personal details and for indicating your answers.

• Please follow the instructions on the mark-reading sheet.

• If you submit your assignments via myUnisa you are allowed to use the answer sheet that is
available on the screen.

• Please use the correct subject code, assignment numbers and unique numbers. The
mark-reading sheets are marked by a computer – your assignments will be rejected if the
information on the mark-reading sheets does not correspond with your registration details.

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8.4 Submission of assignments

• Very important: Make copies of your assignments before you submit them! The mark-
reading sheets will NOT be posted back to you.

• Use the envelopes provided to post your assignments to Unisa. You can also submit your
assignments at any of the regional service points, or Mobile MCQ, or electronically via
myUnisa. However, assignments may not be submitted by fax or e-mail.

• Please note that you are not allowed to post, fax or e-mail assignments to the lecturers!

• For detailed information and requirements on assignments, see the my Studies @ Unisa
brochure, which you received with your study package.

To submit an assignment via myUnisa

• Go to myUnisa
• Log in with your student number and password
• Select the module
• Click on “Assignments” in the menu on the left-hand side of the screen
• Click on the assignment number you wish to submit
• Follow the instructions on the screen

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8.5 Assignments

8.5.1 Assignment 01 for Semester 01 and Semester 02 (compulsory)

Semester 01
DUE DATE UNIQUE NUMBER
11 March 2013 883351

Semester 02
DUE DATE UNIQUE NUMBER
02 September 2013 845140

PLEASE NOTE
Study the mind maps in the Workbook before you answer this assignment.

Multiple-choice questions
Use a mark-reading sheet to answer these questions.

1. A small business manager …

1) has the same characteristics as an entrepreneur.

2) is not creative and innovative.
3) is creative and innovative.
4) is responsible for the growth of the business.

2. The internal business environment consists of the … environment.

1) micro
2) market
3) macro
4) economic

3. In order to start an enterprise, an entrepreneur needs … as factors of production.

1) capital, labour, raw materials and natural resources

2) entrepreneurship, capital, labour and employees
3) capital, money, entrepreneurship and labour
4) entrepreneurship, capital, labour and natural resources

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4. In order to cultivate a creative attitude, an entrepreneur should …

1) actively seek ideas.

2) use the common needs of the community.
3) apply his or her skills, expertise and aptitudes.
4) be aware of his or her everyday activities.

5. The first step in determining the market potential of an idea would be to …

1) determine the mission and objectives of the enterprise.

2) establish the need for the products or services.
3) do market research.
4) do a market analysis.

6. To calculate the profit potential of the idea, the entrepreneur should …

1) determine the expected market share.

2) determine the target market.
3) calculate the break-even point.
4) determine the potential market.

7. The guidelines for writing a business plan states that the entrepreneur should …

1) base the business plan on past experiences.

2) keep the business plan short.
3) not mention any critical risks.
4) not try to capture the reader’s interest.

8. The purpose of drawing up a business plan is to …

1) assist with the application for finance.

2) communicate with the consumers.
3) address only a few business activities.
4) communicate with competitors.

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9. A commercial business would consider … as the most important establishment factor.

1) raw materials
2) the market
3) the availability of labour
4) energy and water

10. In order to be allowed to start an enterprise, an entrepreneur must have full legal
capacity. This is an example of …

1) a function of the enterprise.

2) a form of enterprise.
3) an establishment factor.
4) a legal requirement.
TOTAL: 10

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8.5.2 Assignment 02 for Semester 01 and Semester 02 (compulsory)

Semester 01
DUE DATE UNIQUE NUMBER
25 March 2013 684260

Semester 02
DUE DATE UNIQUE NUMBER
16 September 2013 756431

PLEASE NOTE
Study Chapters 1 to 6 thoroughly before you answer this assignment.

Read through the case study and answer all the questions that follow.

CASE STUDY: NEW ROMANTICS

Nadene Marx started New Romantics ten years ago in Bergbron, a small suburb in Northcliff.
Nadene is a qualified fashion designer who specialises in making bridal gowns, bridesmaid’s
gowns, mother-of-the-bride outfits and couture evening gowns.

After the birth of their first child, Nadene and her husband decided that she should resign from
her job. She started her own enterprise and registered it as a sole proprietorship. After careful
consideration, they decided that Nadene should rather work from home instead of spending
thousands of rands per month on renting a small space in a shopping mall. Nadene contributed
R100 000 of her savings to convert their double garage into a studio. She also applied for a loan
of R50 000 to buy new sewing machines, overlockers and furniture for the studio. The studio
consisted of a small reception and display area, a fitting room and a workshop for 2
seamstresses.

Nadene’s business became so popular that she could not accept all the orders anymore. She
had to employ another 2 seamstresses and she appointed Vera to do the administration of the
business. Administration plays an extremely important role in this business, as the brides must
come to the studio for at least four fittings before the dresses can be finished. New Romantics
must therefore keep record of the dates of each bride’s fittings and their wedding dates to
ensure that the dresses are completed in time. Vera had to handle the record-keeping, schedule
all Nadene’s appointments and answer the phone.

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Due to the appointment of the additional staff members, Nadene’s premises became far too
small. When their neighbours wanted to sell their home, Nadene decided to buy the building for
her enterprise. She had to apply for a loan of R900 000 to buy the premises and offered their
own home, worth R1 million, as security. She also applied for financing of R80 000 to buy more
advanced sewing machines, overlockers, office equipment and furniture.

The new premises had enough space for Nadene to open a small shop that sells accessories
such as veils, hair accessories, jewellery and underwear. She appointed a full-time shop
assistant to handle the sales. After numerous complaints from clients that they could not find
affordable bridal shoes, one of the new seamstresses, Nicky, suggested that they should use
off-cuts of the fabric to cover ordinary shoes with the same fabric of which the wedding gown is
made. The brides would then buy shoes of their choice and Nicky would cover them with
matching fabric.

The process of making a wedding gown starts when a potential bride phones Nadene to make
an appointment to see her at the studio. Nadene will then sketch a design according to the
bride’s preferences and show her samples of fabric that will suit that particular design. As soon
as the bride has decided on a design and matching fabric, Nadene will work out a quotation for
the dress. The bride must then sign a contract to confirm acceptance of the quotation and pay a
deposit of 50% of the final price so that Nadene has enough cash to buy the fabric and
accessories. Nadene will then cut the fabric according to the design and the seamstresses will
start with the sewing. The bride has to come to the studio for regular fittings and a final fitting
will take place one week before the wedding. The remainder of the money has to be paid when
the bride collects the dress from the studio.

Nadene buys most of her fabric from Fiona’s in Randburg and from haberdashery stores at the
Oriental Plaza in Fordsburg. Fiona’s specialises in bridal fabric and sells a large collection of
local and imported material. The stock in her shop is bought from a wholesaler in Randburg and
the jewellery from a designer in Roodepoort.

Nadene’s target market is in Randburg and Roodepoort, and she competes with various other
dress designers in nearby areas, as well as with big businesses such as Bride & Co and The
Bridal Couture in Rivonia. Although her dresses are more expensive than those of Bride & Co,
she has the competitive advantage that her designs are unique – each bride can decide for
herself what her dress should look like. A bridal gown usually costs between R7 000 and
R12 000, depending on the design, the type of fabric and the finishing. If a bride decides to hire
the dress, the price will be about R1 000 less.

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Although Nadene’s designs are original, she has to be aware of the latest trends in fashion, and
overseas designs play an extremely big role in the choices of her clients. The fabric, designs
and trimmings of bridal gowns change constantly and Nadene has to be aware of new methods
of stitching and ironing. Her equipment also has to be of the best quality and she has to
upgrade her sewing machines and overlockers regularly.

The enterprise is located in a busy street, which makes it clearly visible to passers-by. Nadene’s
husband also put up a big billboard in front of the shop. Nadene decided not to advertise in
bridal magazines as her competitors do, as a single advertisement can cost as much as
R8 000. She advertises on the internet where she pays an annual fee of R2 500 for placing nine
photos of her wedding gowns. The name of her business, her website and her contact details
are also displayed on her car. In addition, she displays some of her gowns at various local
wedding expos. Participation in these expos created the opportunity for Nadene to make friends
with caterers and photographers, and some of them came to a mutual agreement to display one
another’s business cards in their respective reception areas and to refer potential clients to one
another. However, most of Nadene’s clients are referrals from previous, satisfied clients.

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MULTIPLE-CHOICE QUESTIONS

Chapter 1

1. Nadene Marx could be classified as …

1) an intrapreneur.
2) an entrepreneur.
3) a small business manager.
4) an intrapreneur and a small business manager.

2. Nicky, who suggested that they should use off-cuts of the fabric to cover ordinary shoes
with the same fabric of which the wedding gown is made, could be classified as …

1) an intrapreneur.
2) an entrepreneur.
3) a small business manager.
4) an intrapreneur and a small business manager.

3. Nadene registered New Romantics as a sole proprietorship. An advantage of a formal

enterprise is that Nadene …

1) does not have to pay tax.

2) does not have to keep financial records.
3) has to pay tax.
4) has easier access to finance.

4. Nadene sketches the designs according to the brides’ preferences, works out quotations
for the dresses and cuts the fabric according to the designs. This could be regarded as an
example of her …

1) involvement.
2) commitment.
3) positive attitude and approach.
4) perseverance.

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5. Nadene applied for a loan of R50 000 to buy new sewing machines, overlockers and
furniture for the studio. This could be regarded as an example of her …

1) creativity and innovative ability.

2) perseverance.
3) positive attitude and approach.
4) willingness to take risks.

6. The opening of a small shop that sells accessories such as veils, hair accessories,
jewellery and underwear, could be regarded as an example of Nadene’s …

1) creativity and innovative ability.

2) perseverance.
3) positive attitude and approach.
4) willingness to take risks.

Chapter 2

7. The workshop where the seamstresses make the bridal gowns could be regarded as New
Romantics’ …

1) enterprise.
2) establishment.
3) industrial column.
4) purchasing function.

8. New Romantics makes bridal gowns, bridesmaid’s gowns and mother-of-the-bride outfits,
and sells them directly to their clients. The enterprise could therefore be classified under
the … production branches.

1) manufacturing and service

2) commercial and service
3) manufacturing and commercial
4) clothing manufacturing and clothing trading

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9. The seamstresses use sewing machines to transform fabric into bridal gowns. New
Romantics could therefore be classified under the … sector.

1) primary
2) secondary
3) commercial
4) tertiary

10. The route that a bridal gown follows from its original stage until it is collected by the
bride, is known as the …

1) enterprise.
2) establishment.
3) industrial column.
4) operations function.

11. The primary objective of New Romantics would be to …

1) make a profit.
2) make bridal gowns of outstanding quality.
3) maintain good relations with Fiona’s and the haberdashery stores.
4) create good working conditions for the seamstresses.

12. Nadene sketches a design according to the bride’s preferences and shows her samples of
fabric, after which the bride must decide on a design and matching fabric. Her clients
have the right to …

1) be informed.
2) exercise personal choice.
3) be heard.
4) be protected.

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13. Overseas designs play an extremely big role in the choices of her clients. This is an
example of how the … environment could influence New Romantics.

1) economic
2) social
3) technological
4) international

14. The culture and age of the bride would determine the type of bridal gown that she would
want to wear to her wedding. This is an example of how the … environment could influence
New Romantics.

1) economic
2) social
3) political
4) international

15. Nadene’s dresses are expensive and cost between R7 000 and R12 000. The inflation
rate would determine the disposable income of consumers and this, in turn, would
determine how much they would be willing to spend on a bridal gown. This is an example of
how the … environment could influence New Romantics.

1) economic
2) social
3) political
4) international

Chapter 3

16. Nadene should know the difference between creativity and innovation. Creativity is ...

1) the ability to identify new opportunities.

2) the ability to implement new ideas.
3) less important than innovation.
4) the ability to come up with new ideas and to implement them.

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17. In order to come up with creative ideas, Nadene has to apply divergent and convergent
thinking. Divergent thinking …

1) entails the ability to evaluate ideas logically.

2) is essential to the novelty of creative ideas.
3) is essential to the appropriateness of creative products.
4) is the ability to see things in an analytical manner.

18. Since Nadene is a qualified fashion designer, she used her … as a method to generate
her business ideas.

1) skills
2) expertise
3) aptitudes
4) talents

19. After numerous complaints from clients that they could not find affordable bridal
shoes, Nicky suggested that they cover ordinary shoes using the same fabric of which the
wedding gown is made. This is an example of using … as a method to generate small
business ideas.

1) everyday activities
2) business publications
3) other sources
4) existing problems

20. Nadene would use … to develop her ideas.

1) a feasibility study
2) a viability study
3) a bow-tie diagram
4) the implementation stage

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Chapter 4

21. Nadene’s viability study would focus on ...

1) her ability to convert the idea into a real enterprise.

2) the potential of the idea to be converted into an enterprise.
3) the market and profit potential of the idea.
4) her ability to write a business plan.

22. A bridal gown usually costs between R7 000 and R12 000. The income of her clients
determines their ability to pay for her dresses. This forms part of the … segment of
Nadene’s total potential market.

1) geographic
2) demographic
3) psychographic
4) behaviouristic

23. Most of the brides are young, modern women that want their dresses to be made according
to the latest trends in fashion. This forms part of the … segment of Nadene’s total
potential market.

1) geographic
2) demographic
3) psychographic
4) behaviouristic

24. Brides prefer buying unique designer dresses to buying ready-made ones. This relates
to the … segment of Nadene’s total potential market.

1) geographic
2) demographic
3) psychographic
4) behaviouristic

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25. Although Nadene’s dresses are more expensive than those of Bride & Co, she has the
competitive advantage that her designs are unique. She could list this as ... in her SWOT
analysis.

1) a strength
2) a weakness
3) an opportunity
4) a threat

26. Nadene opened a small shop that sells accessories such as veils, hair accessories,
jewellery and underwear. She could list this as ... in her SWOT analysis.

1) a strength
2) a weakness
3) an opportunity
4) a threat

27. The fact that Nicky was creative and came up with new ideas, could be listed as ... in
Nadene’s SWOT analysis.

1) a strength
2) a weakness
3) an opportunity
4) a threat

28. Nadene competes with various other dress designers in nearby areas, as well as with big
businesses such as Bride & Co and The Bridal Couture in Rivonia. The percentage of the
market that she could serve is known as her …

1) market share.
2) target market.
3) total potential market.
4) market segmentation.

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 BSM1501/101/3/2013

29. New Romantics employed only four seamstresses, which could limit the maximum
number of bridal gowns that they could make within a certain period. This is known
as ...

1) Nadene’s target market.

2) the state of the country’s economy.
3) Nadene’s total potential market.
4) the capacity of the enterprise.

30. Nadene had to apply for a loan of R900 000 to buy the new premises. The monthly
instalments that she has to pay would stay the same, regardless of the number of
bridal gowns that she makes, and could therefore be classified as ... costs.

1) fixed
2) variable
3) direct
4) unimportant

31. When Nadene has to calculate the total cost per unit of making one bridal gown, she
would add the direct material costs per unit, the indirect costs per unit and the ... per unit.

1) total costs
2) cost of sales
3) direct labour costs
4) overheads

32. When Nadene has to calculate the total cost per unit of selling one piece of jewellery,
she would add the cost of sales per unit to the ... per unit.

1) total costs
2) direct material costs
3) direct labour costs
4) overheads

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33. Nadene could try to lower the break-even point of New Romantics by …

1) decreasing her selling prices.

2) increasing her selling prices.
3) exercising less control over her fixed costs.
4) increasing her direct costs.

Chapter 5

34. Nadene should keep in mind that the principles of a business plan state that it …

1) does not have to be a blueprint of the business.

2) should be an inflexible planning document.
3) should be compiled by herself.
4) should be compiled by professional people.

35. Since the brides have to collect their dresses from the studio, New Romantics uses …
distribution channel.

1) an indirect
2) no
3) more than one
4) a direct

36. Nadene buys the jewellery from a designer in Roodepoort and sells them in her shop. The
jewellery designer uses … to transfer the jewellery to the brides.

1) an indirect distribution channel

2) no distribution channel
3) three distribution channels
4) a direct distribution channel

37. Most of Nadene’s clients are referrals from previous, satisfied clients. This could be
regarded as an example of … as part of her marketing communication.

1) advertising
2) sales promotions
3) personal sales
4) publicity

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 BSM1501/101/3/2013

38. When Nadene compiles the ownership structure, she would indicate that she owns … of
New Romantics.

1) 20%
2) 25%
3) 50%
4) 100%

39. Nadene offered her home as security, because it forms part of her …

1) current assets.
2) fixed assets.
3) short-term liabilities.
4) long-term liabilities.

40. Nadene would calculate her ending cash flow by …

1) adding total cash receipts to total cash payments.

2) deducting total cash receipts from total cash payments.
3) adding the beginning cash balance to the net cash flow.
4) adding the beginning cash balance to total cash receipts.

41. Nadene’s balance sheet would indicate the assets and liabilities of New Romantics …

1) for a period of twelve months.

2) for a period of six months.
3) for a period of three months.
4) at a particular time or date.

42. When Nadene writes the conclusion of her business plan, she should …

1) indicate the amount that she has invested as own capital.

2) include a description of her marketing strategy.
3) include an organisational structure of New Romantics.
4) indicate the ownership structure of New Romantics.

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Chapter 6

43. A sole proprietorship does not have legal personality. This means that New Romantics …

1) can exist independently from Nadene.

2) can act in its own name.
3) does not exist independently from Nadene.
4) can own its own assets.

44. A sole proprietorship has limited continuity. This means that New Romantics would …

1) not cease to exist if Nadene dies.

2) not cease to exist if Nadene goes bankrupt.
3) have an indefinite lifespan.
4) cease to exist if Nadene dies.

45. Nadene has to deduct tax from her employees and pay it to the Receiver of Revenue.
This refers to registration … with the Receiver of Revenue.

1) as a taxpayer
2) as an employer
3) for VAT
4) as a clothing manufacturing enterprise

46. Nadene must also deduct UIF from her employees’ gross income to ensure that they would
still receive an income if they …

1) sustain occupational injuries.

2) decide to retire.
3) lose their jobs.
4) are involved in occupational accidents.

47. The most important establishment factor that Nadene had to consider would be the …

1) accessibility of the premises.

2) climate.
3) nature of the end product.
4) availability of transport facilities.

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 BSM1501/101/3/2013

48. The purpose of the external (public) relations function is to …

1) ensure positive support from all the relevant interest groups of New Romantics.
2) sell the bridal gowns to prospective brides.
3) advertise the bridal gowns.
4) ensure that New Romantics sells the bridal gowns at competitive prices.

49. Before Nadene could appoint the seamstresses, she had to determine what
qualifications they should have. This relates to …

1) a job description.
2) a job specification.
3) recruitment.
4) employment.

50. Nadene has to set performance and quality standards for her employees and she has to
ensure that her staff members comply with these standards. This forms part of the …
element of the general management function of New Romantics.

1) planning
2) organising
3) leading
4) control
TOTAL: 50

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9 OTHER ASSESSMENT METHODS

There are no other assessment methods for this module.

10 EXAMINATION

10.1 Examination dates

Semester 01
Examination period Supplementary examination period
May/June 2013 October/November 2013

Semester 02
Examination period Supplementary examination period
October/November 2013 May/June 2014

For the specific dates and venues, please contact the Examination Department. Please
consult the my Studies @ Unisa brochure for the Examination Department’s contact details.

10.2 The examination paper

Your examination will cover all the chapters in the prescribed textbook. No section of the
syllabus will be excluded. The examination paper will consist of a case study with questions that
are based on the case study. There will be 70 multiple-choice questions and you will be
allowed 2 hours to complete the paper. The questions will be in the same format as those in
assignment 02.

Further details about the final examination will be sent to you by means of a follow-up tutorial
letter, Tutorial 201/3/2013.

Very important:
Please note that there are examples of previous examination papers on myUnisa (under official
study material). However, you must NOT focus on previous examination papers only, as
we compile new examination papers for each examination period.

11 FREQUENTLY ASKED QUESTIONS

Please consult the my Studies @ Unisa brochure as it contains an A-Z guide of the most
relevant study information.

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