60 Questions
What sector involves the extraction and harvesting of natural products?
Primary Sector
Which sector provides services instead of goods?
Tertiary Sector
In which sector can businesses optimize production processes?
Secondary Sector
Which sector has limited control and is dependent on nature?
Primary Sector
In which sector can services be tailored to meet customer needs?
Tertiary Sector
Which sector involves transforming raw materials into products?
Secondary Sector
Which sector deals with socio-economic and technological environments?
Tertiary Sector
Which sector faces challenges like weather variations and natural disasters?
Primary Sector
Which sector provides healthcare services?
Tertiary Sector
What is a business example for the Secondary Sector?
A furniture manufacturing company
Which type of integration involves a winery opening its own retail outlet?
Forward Vertical Integration
What does Horizontal Diversification involve?
Adding unrelated products or services aimed at current customers
Which strategy involves a business reducing its size or scope to become more financially stable?
Divestiture/Divestment
What is the aim of the National Credit Act (NCA)?
Regulate the credit industry for responsible lending and borrowing
In which diversification strategy does a bakery start offering catering services?
Concentric Diversification
What is the purpose of the Employment Equity Act (EEA)?
Fight discrimination and enforce affirmative action in employment practices
Which Act dictates marketing, service, and contractual standards in business-consumer interactions?
Consumer Protection Act (CPA)
'Moving into entirely new lines of business' is associated with which diversification strategy?
Conglomerate Diversification
What is required from businesses regarding the Employment Equity Act (EEA)?
Implementing equity plans and facing penalties for non-compliance
What does Market Development entail for businesses?
Expanding into new markets
Which type of integration strategy involves a car manufacturer acquiring a steel plant?
Backward Vertical Integration
What is the primary purpose of the Broad-Based Black Economic Empowerment (BBBEE) Act?
To distribute wealth across a broad spectrum of South African society
Which diversification strategy involves a business adding new, unrelated products or services aimed at its current customers?
Horizontal Diversification
What is the main implication of the Consumer Protection Act (CPA) for businesses?
Businesses must adhere to specific marketing, service, and contractual standards, influencing operational practices and customer service protocols
Which type of integration strategy involves a primary sector business like a winery opening its own retail outlet?
Forward Vertical Integration
What is the primary purpose of the National Credit Act (NCA)?
To regulate the credit industry and ensure responsible lending
Which diversification strategy involves a business adding related products or services, such as a bakery starting to offer catering services?
Concentric Diversification
What is the main implication of the Employment Equity Act (EEA) for employers?
Employers must create and implement equity plans, subject to penalties for non-compliance
Which intensive strategy involves a business expanding into new markets, such as a manufacturer exporting goods to new countries?
Market Development
Which defensive strategy involves a business reducing its size or scope to become more financially stable?
Retrenchment
Which sector is most directly impacted by changes in the natural environment?
Primary Sector
A business that manufactures automobiles would be classified under which sector?
Secondary Sector
Which of the following statements is true regarding environmental control across the three sectors?
The Primary Sector has the lowest level of control.
Which sector would a business that provides consulting services be classified under?
Tertiary Sector
Which of the following statements best describes the challenges faced by businesses across the three sectors?
Challenges are identified and classified based on the sector-specific environments.
A business that operates a chain of retail stores would be classified under which sector?
Tertiary Sector
Which sector would a business that extracts and processes crude oil be classified under?
Primary Sector
Which of the following statements best describes the Secondary Sector?
It transforms raw materials into products.
A business that operates a hospital would be classified under which sector?
Tertiary Sector
Which sector has the highest level of control over its environment?
Tertiary Sector
Which sector has the lowest level of environmental control, being highly dependent on natural factors?
Primary Sector
A business that manufactures furniture would be classified under which sector?
Secondary Sector
Which sector faces the greatest challenges in adapting to socio-economic and technological changes?
Tertiary Sector
A business that operates a chain of retail stores would be classified under which sector?
Tertiary Sector
Which sector has the highest level of control over its environment, allowing it to tailor services to customer needs?
Tertiary Sector
Which sector would a business that extracts and processes crude oil be classified under?
Primary Sector
A business that operates a hospital would be classified under which sector?
Tertiary Sector
Which sector faces the greatest challenges in optimizing production processes?
Primary Sector
Which sector would a business that provides consulting services be classified under?
Tertiary Sector
Which sector faces the greatest challenges in adapting to changes in economic conditions?
All sectors face equal challenges in adapting to economic conditions
What distinguishes forward vertical integration from backward vertical integration?
The direction of ownership expansion
In the context of intensive strategies, what sets market development apart from market penetration?
The geographical location targeted
How does horizontal diversification differ from conglomerate diversification?
The relationship between new and existing products or services
What is a key implication for businesses under the Employment Equity Act (EEA)?
Penalties for non-compliance
How does the Broad-Based Black Economic Empowerment (BBBEE) Act impact businesses differently from the National Credit Act (NCA)?
Emphasis on wealth distribution
What fundamental aspect of business operations is directly influenced by the Consumer Protection Act (CPA)?
Customer service protocols
How does retrenchment as a defensive strategy differ from liquidation?
Extent of business restructuring required
In the context of diversification strategies, what separates concentric diversification from horizontal diversification?
'Relatability' to existing business activities
'Nature and Purpose' are key attributes of which business legislation?
'Broad-Based Black Economic Empowerment (BBBEE)' Act'
'Aims to regulate the credit industry and ensure responsible lending' pertains to which business legislation?
'National Credit Act (NCA)'
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