CH 1: Business Sectors and Their Environments
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Questions and Answers

What sector involves the extraction and harvesting of natural products?

  • Tertiary Sector
  • Quaternary Sector
  • Primary Sector (correct)
  • Secondary Sector

    • Which sector provides services instead of goods?

  • Primary Sector
  • Tertiary Sector (correct)
  • Quinary Sector
  • Secondary Sector

    • In which sector can businesses optimize production processes?

  • Quaternary Sector
  • Secondary Sector (correct)
  • Primary Sector
  • Tertiary Sector

    • Which sector has limited control and is dependent on nature?

    <p>Primary Sector</p> Signup and view all the answers

    In which sector can services be tailored to meet customer needs?

    <p>Tertiary Sector</p> Signup and view all the answers

    Which sector involves transforming raw materials into products?

    <p>Secondary Sector</p> Signup and view all the answers

    Which sector deals with socio-economic and technological environments?

    <p>Tertiary Sector</p> Signup and view all the answers

    Which sector faces challenges like weather variations and natural disasters?

    <p>Primary Sector</p> Signup and view all the answers

    Which sector provides healthcare services?

    <p>Tertiary Sector</p> Signup and view all the answers

    What is a business example for the Secondary Sector?

    <p>A furniture manufacturing company</p> Signup and view all the answers

    Which type of integration involves a winery opening its own retail outlet?

    <p>Forward Vertical Integration</p> Signup and view all the answers

    What does Horizontal Diversification involve?

    <p>Adding unrelated products or services aimed at current customers</p> Signup and view all the answers

    Which strategy involves a business reducing its size or scope to become more financially stable?

    <p>Divestiture/Divestment</p> Signup and view all the answers

    What is the aim of the National Credit Act (NCA)?

    <p>Regulate the credit industry for responsible lending and borrowing</p> Signup and view all the answers

    In which diversification strategy does a bakery start offering catering services?

    <p>Concentric Diversification</p> Signup and view all the answers

    What is the purpose of the Employment Equity Act (EEA)?

    <p>Fight discrimination and enforce affirmative action in employment practices</p> Signup and view all the answers

    Which Act dictates marketing, service, and contractual standards in business-consumer interactions?

    <p>Consumer Protection Act (CPA)</p> Signup and view all the answers

    'Moving into entirely new lines of business' is associated with which diversification strategy?

    <p>Conglomerate Diversification</p> Signup and view all the answers

    What is required from businesses regarding the Employment Equity Act (EEA)?

    <p>Implementing equity plans and facing penalties for non-compliance</p> Signup and view all the answers

    What does Market Development entail for businesses?

    <p>Expanding into new markets</p> Signup and view all the answers

    Which type of integration strategy involves a car manufacturer acquiring a steel plant?

    <p>Backward Vertical Integration</p> Signup and view all the answers

    What is the primary purpose of the Broad-Based Black Economic Empowerment (BBBEE) Act?

    <p>To distribute wealth across a broad spectrum of South African society</p> Signup and view all the answers

    Which diversification strategy involves a business adding new, unrelated products or services aimed at its current customers?

    <p>Horizontal Diversification</p> Signup and view all the answers

    What is the main implication of the Consumer Protection Act (CPA) for businesses?

    <p>Businesses must adhere to specific marketing, service, and contractual standards, influencing operational practices and customer service protocols</p> Signup and view all the answers

    Which type of integration strategy involves a primary sector business like a winery opening its own retail outlet?

    <p>Forward Vertical Integration</p> Signup and view all the answers

    What is the primary purpose of the National Credit Act (NCA)?

    <p>To regulate the credit industry and ensure responsible lending</p> Signup and view all the answers

    Which diversification strategy involves a business adding related products or services, such as a bakery starting to offer catering services?

    <p>Concentric Diversification</p> Signup and view all the answers

    What is the main implication of the Employment Equity Act (EEA) for employers?

    <p>Employers must create and implement equity plans, subject to penalties for non-compliance</p> Signup and view all the answers

    Which intensive strategy involves a business expanding into new markets, such as a manufacturer exporting goods to new countries?

    <p>Market Development</p> Signup and view all the answers

    Which defensive strategy involves a business reducing its size or scope to become more financially stable?

    <p>Retrenchment</p> Signup and view all the answers

    Which sector is most directly impacted by changes in the natural environment?

    <p>Primary Sector</p> Signup and view all the answers

    A business that manufactures automobiles would be classified under which sector?

    <p>Secondary Sector</p> Signup and view all the answers

    Which of the following statements is true regarding environmental control across the three sectors?

    <p>The Primary Sector has the lowest level of control.</p> Signup and view all the answers

    Which sector would a business that provides consulting services be classified under?

    <p>Tertiary Sector</p> Signup and view all the answers

    Which of the following statements best describes the challenges faced by businesses across the three sectors?

    <p>Challenges are identified and classified based on the sector-specific environments.</p> Signup and view all the answers

    A business that operates a chain of retail stores would be classified under which sector?

    <p>Tertiary Sector</p> Signup and view all the answers

    Which sector would a business that extracts and processes crude oil be classified under?

    <p>Primary Sector</p> Signup and view all the answers

    Which of the following statements best describes the Secondary Sector?

    <p>It transforms raw materials into products.</p> Signup and view all the answers

    A business that operates a hospital would be classified under which sector?

    <p>Tertiary Sector</p> Signup and view all the answers

    Which sector has the highest level of control over its environment?

    <p>Tertiary Sector</p> Signup and view all the answers

    Which sector has the lowest level of environmental control, being highly dependent on natural factors?

    <p>Primary Sector</p> Signup and view all the answers

    A business that manufactures furniture would be classified under which sector?

    <p>Secondary Sector</p> Signup and view all the answers

    Which sector faces the greatest challenges in adapting to socio-economic and technological changes?

    <p>Tertiary Sector</p> Signup and view all the answers

    A business that operates a chain of retail stores would be classified under which sector?

    <p>Tertiary Sector</p> Signup and view all the answers

    Which sector has the highest level of control over its environment, allowing it to tailor services to customer needs?

    <p>Tertiary Sector</p> Signup and view all the answers

    Which sector would a business that extracts and processes crude oil be classified under?

    <p>Primary Sector</p> Signup and view all the answers

    A business that operates a hospital would be classified under which sector?

    <p>Tertiary Sector</p> Signup and view all the answers

    Which sector faces the greatest challenges in optimizing production processes?

    <p>Primary Sector</p> Signup and view all the answers

    Which sector would a business that provides consulting services be classified under?

    <p>Tertiary Sector</p> Signup and view all the answers

    Which sector faces the greatest challenges in adapting to changes in economic conditions?

    <p>All sectors face equal challenges in adapting to economic conditions</p> Signup and view all the answers

    What distinguishes forward vertical integration from backward vertical integration?

    <p>The direction of ownership expansion</p> Signup and view all the answers

    In the context of intensive strategies, what sets market development apart from market penetration?

    <p>The geographical location targeted</p> Signup and view all the answers

    How does horizontal diversification differ from conglomerate diversification?

    <p>The relationship between new and existing products or services</p> Signup and view all the answers

    What is a key implication for businesses under the Employment Equity Act (EEA)?

    <p>Penalties for non-compliance</p> Signup and view all the answers

    How does the Broad-Based Black Economic Empowerment (BBBEE) Act impact businesses differently from the National Credit Act (NCA)?

    <p>Emphasis on wealth distribution</p> Signup and view all the answers

    What fundamental aspect of business operations is directly influenced by the Consumer Protection Act (CPA)?

    <p>Customer service protocols</p> Signup and view all the answers

    How does retrenchment as a defensive strategy differ from liquidation?

    <p>Extent of business restructuring required</p> Signup and view all the answers

    In the context of diversification strategies, what separates concentric diversification from horizontal diversification?

    <p>'Relatability' to existing business activities</p> Signup and view all the answers

    'Nature and Purpose' are key attributes of which business legislation?

    <p>'Broad-Based Black Economic Empowerment (BBBEE)' Act'</p> Signup and view all the answers

    'Aims to regulate the credit industry and ensure responsible lending' pertains to which business legislation?

    <p>'National Credit Act (NCA)'</p> Signup and view all the answers

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