Question 2
Indicate whether the following statements are True or False in the examination booklet provided.
e.g. 2.1 True
[20 marks]
No. Statement
2.1 In a free-market economy, business organisations may not exploit the consumer.
2.2
The first reason why studying management is that we all have a vested interest in
improving our own chances of finding a quality and secure job.
2.3
Quantitative guidelines for defining SMME's include a simple organisational
structure that is independent, privately owned and managed.
2.4
Accountability is the obligation to achieve organuisational goals by performing
required activities.
2.5 Intermediaries are bridging the gap between manufacturers and consumers.
2.6 Housing benefits are regarded as direct compensation.
2.7
A farmer who sells mushrooms at a farm stall to passing motorists is an example of
a three-link distribution channel.
2.8
Total quality is concerned with improving products and services outside the
business and thereby satisfying the customers' needs.
2.9 Price is a quality characteristic used in quality planning and control.
2.10
Operations management in the business can help the business to satisfy the needs
of its clients more effectively.
2.11
The sequencing of task refers to the use of a detailed roster that indicates when a
specific task should start and when it should be completed.
2.12 Supply chain management is concerned with the choice of suppliers.
2.13
2.14
2.15
2.16
Corporate social investment recognizes corporations as legal persons with certain
rights and responsibilities.
Analytical skill centres on a manager's mental ability to coordinate all of the
organisation's interest and activities.
A job specification describes the nature of the work and the performance expected
from the employee.
Advertising is the last promotional tool.
2.17 Psychographic criteria could also be considered for market segmentation.
2.18 The task environment is within the control of the business itself.
2.19
When one of the partners in a partnership is declared insolvent, then the
partnership can be dissolved.
The memorandum of association is the organisation's set of principles, rules and
2.20 regulations.
7