Business Studies June exam P2 (Mix)
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Questions and Answers

What is the definition of poverty?

  • Embracing diversity in the workplace
  • Deprivation of essential needs and services (correct)
  • Having limited business opportunities
  • Lack of access to quality education

    • How does poverty impact business according to the text?

  • Increases access to quality education
  • Reduces security costs
  • Boosts consumer markets
  • Restricts full participation in the economy (correct)

    • What does cyclical poverty refer to?

  • Lack of access to quality education and employment opportunities (correct)
  • Regular fluctuations in market prices
  • Reducing inequality in society
  • Ensuring equal opportunities for all

    • Why do poverty and inequality impact business security costs?

    <p>Increase crime rates requiring higher security spending (D)</p> Signup and view all the answers

    What is the definition of inclusivity in a business context?

    <p>Ensuring equal opportunities for all (A)</p> Signup and view all the answers

    What is the main aim of inclusivity in business?

    <p>To reduce inequality and foster a skilled workforce (D)</p> Signup and view all the answers

    Which form of ownership has an unlimited joint and several liability among partners?

    <p>Partnership (D)</p> Signup and view all the answers

    In which form of ownership does the continuity depend on the involvement of any particular shareholder?

    <p>Public Company (Ltd) (B)</p> Signup and view all the answers

    Which form of ownership requires a minimum number of members depending on the type of cooperative?

    <p>Co-operative (D)</p> Signup and view all the answers

    Which form of ownership is known for being the simplest and least costly to establish?

    <p>Sole Proprietorship (C)</p> Signup and view all the answers

    In which form of ownership is the management solely done by the owner?

    <p>Sole Proprietorship (D)</p> Signup and view all the answers

    Which form of ownership involves issuing a prospectus and registering with regulatory bodies?

    <p>Public Company (Ltd) (A)</p> Signup and view all the answers

    What is one way investment in community development can benefit a company?

    <p>Enhanced market opportunities (B)</p> Signup and view all the answers

    What role do trade unions play in Corporate Social Responsibility (CSR)?

    <p>Advocate for employee benefits and fair labor practices (B)</p> Signup and view all the answers

    How do fair compensation and benefits impact employees according to the text?

    <p>Improve morale and productivity (C)</p> Signup and view all the answers

    What type of programs provide long-term financial security for employees and contribute to economic stability?

    <p>Pension funds (B)</p> Signup and view all the answers

    What is one way to combat HIV/AIDS in the workplace?

    <p>Offering financial support to NGOs (D)</p> Signup and view all the answers

    Which quality of entrepreneurs involves having a keen eye for spotting business opportunities?

    <p>Opportunity-seeking (D)</p> Signup and view all the answers

    What is a critical trait defining successful entrepreneurs?

    <p>Persistence to overcome hurdles (C)</p> Signup and view all the answers

    In which group of qualities do entrepreneurs who are committed to their vision fall?

    <p>Achievement-oriented (B)</p> Signup and view all the answers

    What do entrepreneurs contribute to by creating employment opportunities and driving innovation?

    <p>Economic growth (C)</p> Signup and view all the answers

    How do stakeholders like suppliers impact CSR according to the information provided?

    <p>Support collaborative relationships for sustainability (B)</p> Signup and view all the answers

    What Act encourages businesses to reflect the demographic makeup of society in their workforce?

    <p>Employment Equity Act (C)</p> Signup and view all the answers

    Which of the following statements best describes unemployment?

    <p>Being willing and able to work but without employment (C)</p> Signup and view all the answers

    What is the impact of HIV and AIDS on businesses?

    <p>Continuous investment in training due to high turnover (B)</p> Signup and view all the answers

    What does piracy entail?

    <p>Unauthorized use of another's work (D)</p> Signup and view all the answers

    How do strikes impact a company?

    <p>Lead to disruptions and affect reputation and finances (B)</p> Signup and view all the answers

    What is the purpose of consumer protection laws against piracy and counterfeiting?

    <p>Protect consumers from harmful products (D)</p> Signup and view all the answers

    What is the major impact of workplace violence on businesses?

    <p>Disruptions in daily operations and financial losses (B)</p> Signup and view all the answers

    What does corporate social responsibility entail?

    <p>Commitment to contribute positively to stakeholders' quality of life (B)</p> Signup and view all the answers

    How is illegal gambling related to organized crime?

    <p>It often funds organized crime activities (C)</p> Signup and view all the answers

    What impact do pyramid schemes have on newer recruits?

    <p>Benefit at the expense of newer recruits (C)</p> Signup and view all the answers

    What is a defining characteristic of entrepreneurs in terms of risk-taking?

    <p>They carefully assess risks before engaging in manageable ones. (D)</p> Signup and view all the answers

    Which quality is essential for capitalizing on business opportunities according to the text?

    <p>A balanced approach to risk-taking. (C)</p> Signup and view all the answers

    What is a key quality of entrepreneurs in terms of their vision?

    <p>Dreaming big with clear, actionable visions. (B)</p> Signup and view all the answers

    Which characteristic do entrepreneurs possess to align with market demands?

    <p>Adaptability and seeking information for informed decisions. (D)</p> Signup and view all the answers

    What do entrepreneurs embrace in terms of business responsibility?

    <p>Embracing the responsibility that comes with running a business. (D)</p> Signup and view all the answers

    Which skill is critical for ensuring business success according to the text?

    <p>Effective leadership and management. (B)</p> Signup and view all the answers

    What drives successful entrepreneurs according to the text?

    <p>Profound confidence in their capabilities and a genuine passion for their business. (D)</p> Signup and view all the answers

    What is one characteristic of entrepreneurs concerning organizational skills?

    <p>Exceling in organizing factors of production efficiently. (D)</p> Signup and view all the answers

    Which term describes a business's capacity to continue operations despite owner changes?

    <p>Continuity in operations despite owner changes. (C)</p> Signup and view all the answers

    How are owners' liabilities affected in a business with limited liability?

    <p>Owners are only responsible for the amount they've invested. (C)</p> Signup and view all the answers

    How does cyclical poverty perpetuate across generations?

    <p>By restricting access to marketplace opportunities (C)</p> Signup and view all the answers

    What impact does poverty have on economic participation and consumer markets?

    <p>Restricting full participation in the economy (B)</p> Signup and view all the answers

    Why do poverty and inequality often necessitate higher spending on security measures by businesses?

    <p>To counteract increased crime rates and ensure business security (B)</p> Signup and view all the answers

    What is the primary aim of inclusivity in a business context?

    <p>To ensure equal opportunities for all employees (A)</p> Signup and view all the answers

    What does poverty perpetuate through deprivation of essential needs and services?

    <p>Vulnerability and marginalization (B)</p> Signup and view all the answers

    How does Inclusivity aim to contribute to the workforce?

    <p>By embracing diversity and a wide range of skills (B)</p> Signup and view all the answers

    Which form of ownership is managed by members or appointed managers?

    <p>Close Corporation (CC) (A)</p> Signup and view all the answers

    Which form of ownership requires at least one director for management?

    <p>Private Company (Pty Ltd) (D)</p> Signup and view all the answers

    In terms of continuity, which form of ownership is known for depending on the partnership agreement?

    <p>Partnership (D)</p> Signup and view all the answers

    Which form of ownership involves a more complex registration process including a memorandum of incorporation?

    <p>Private Company (Pty Ltd) (C)</p> Signup and view all the answers

    Which form of ownership has a stable continuity and does not depend on any single member?

    <p>Co-operative (D)</p> Signup and view all the answers

    Which form of ownership requires reserving a business name and registering the founding statement?

    <p>Close Corporation (CC) (C)</p> Signup and view all the answers

    What is the main purpose of the Employment Equity Act?

    <p>Enhancing social cohesion and business reputation (C)</p> Signup and view all the answers

    How does unemployment impact society according to the text?

    <p>Increases dependence on social welfare systems and escalates social issues like crime and poverty (C)</p> Signup and view all the answers

    What is the primary business impact of HIV and AIDS highlighted in the text?

    <p>Reducing labor productivity and increasing healthcare costs (C)</p> Signup and view all the answers

    Which of the following types of activities often fund organized crime, hence contributing to social issues?

    <p>Unregulated gambling (B)</p> Signup and view all the answers

    What is the primary impact of workplace violence on businesses according to the text?

    <p>Leads to significant financial and human resource losses (A)</p> Signup and view all the answers

    Why do laws against piracy and counterfeiting protect consumers?

    <p>Maintaining market integrity (B)</p> Signup and view all the answers

    In relation to strikes, what is a key aspect that can significantly disrupt a company's production?

    <p>Employer-imposed work stoppages (B)</p> Signup and view all the answers

    What is a distinguishing characteristic of entrepreneurs in terms of their ability to seize new business opportunities?

    <p>Persistence in overcoming challenges (C)</p> Signup and view all the answers

    How does money laundering affect economic stability according to the text?

    <p>Undermines economic stability (D)</p> Signup and view all the answers

    How do owners of businesses with limited liability benefit in terms of their liabilities?

    <p>Protection of personal assets (C)</p> Signup and view all the answers

    Which stakeholder group in CSR is primarily responsible for advocating for fair labor practices?

    <p>Trade Unions (B)</p> Signup and view all the answers

    What is the critical aim of Corporate Social Responsibility (CSR) according to the text?

    <p>Contribute to societal well-being and address socio-economic challenges (C)</p> Signup and view all the answers

    What quality is essential for entrepreneurs aiming to stay ahead of competitors and increase profitability?

    <p>Keen eye for spotting opportunities (C)</p> Signup and view all the answers

    What is the main purpose of implementing policies related to HIV/AIDS in the workplace?

    <p>Managing workplace implications of the disease (B)</p> Signup and view all the answers

    Which quality do entrepreneurs demonstrate by continuously putting in dedicated effort to create valuable and sustainable businesses?

    <p>Perseverance (D)</p> Signup and view all the answers

    What is a direct benefit of investing in community development for a business?

    <p>Increased consumer trust (D)</p> Signup and view all the answers

    Which group of qualities do entrepreneurs fall into when they are known for their proactive approach in seeking business opportunities?

    <p>Achievement-oriented qualities (B)</p> Signup and view all the answers

    What distinguishes entrepreneurs from others in terms of ability to generate profit?

    <p>Effective resource organization (C)</p> Signup and view all the answers

    Which measure demonstrates a business's commitment to combatting HIV/AIDS in the workplace?

    <p>Offering access to anti-retroviral drugs and counseling (D)</p> Signup and view all the answers

    Amongst the stakeholder groups in CSR, which is responsible for ensuring product quality and safety?

    <p>Community (B)</p> Signup and view all the answers

    What does it mean when entrepreneurs assess risks carefully and engage in manageable risks?

    <p>Entrepreneurs take calculated risks. (C)</p> Signup and view all the answers

    What is a key reason for entrepreneurs to continuously seek information and adjust strategies according to market demands?

    <p>To align with the dynamic business environment. (A)</p> Signup and view all the answers

    In terms of liability, what distinguishes owners in businesses with limited liability?

    <p>They are only liable for the amount they invested. (C)</p> Signup and view all the answers

    What does having legal personality mean in the context of businesses?

    <p>Companies are legally separate from their owners. (D)</p> Signup and view all the answers

    How is taxation different for sole proprietors compared to corporations as per the text?

    <p>They are taxed based on owner's personal income rates. (B)</p> Signup and view all the answers

    What is a critical trait successful entrepreneurs exhibit in their leadership style?

    <p>Effective leadership combined with visionary qualities. (D)</p> Signup and view all the answers

    What characteristic is fundamental for establishing and sustaining a successful business in the face of challenges?

    <p>Strong willpower to overcome obstacles. (D)</p> Signup and view all the answers

    What quality do entrepreneurs possess related to organizational skills, according to the text?

    <p>Superior organizational skills in efficiently creating value. (C)</p> Signup and view all the answers

    What role does confidence and self-belief play in an entrepreneur's approach to achieving business objectives?

    <p>Boosting an entrepreneur's drive to achieve goals. (A)</p> Signup and view all the answers

    How do entrepreneurs approach responsibility, as highlighted in the text?

    <p>They embrace responsibility that comes with running a business. (D)</p> Signup and view all the answers

    How does cyclical poverty contribute to the perpetuation of poverty across generations?

    <p>By reinforcing societal divides through inadequate education and employment access. (D)</p> Signup and view all the answers

    Which factor is impacted by poverty and inequality, often leading to increased crime rates and necessitating higher security costs for businesses?

    <p>Economic participation in the market (B)</p> Signup and view all the answers

    What does inclusivity aim to achieve in a business context?

    <p>To reduce inequality and foster a more skilled workforce (C)</p> Signup and view all the answers

    What impact can poverty and inequality have on business operational costs due to increased crime rates?

    <p>Necessitating higher security expenditures (D)</p> Signup and view all the answers

    How does inclusivity contribute to reducing societal disparities within a business?

    <p>By ensuring equal opportunities for all employees (A)</p> Signup and view all the answers

    What role do wealth disparities play in the perpetuation of poverty according to the text?

    <p>Wealth disparities reinforce societal divides through access to quality education. (A)</p> Signup and view all the answers

    What is a distinguishing characteristic of a Close Corporation (CC) concerning continuity?

    <p>Continues irrespective of changes in membership (D)</p> Signup and view all the answers

    In terms of management, what is the common feature between a Partnership and a Close Corporation (CC)?

    <p>Managed by members or appointed managers (A)</p> Signup and view all the answers

    What is a defining characteristic of a Public Company (Ltd) in terms of the number of shareholders?

    <p>Has no limit on the number of shareholders (B)</p> Signup and view all the answers

    Which type of ownership involves reserving a business name and registering the founding statement?

    <p>Close Corporation (CC) (B)</p> Signup and view all the answers

    What is a characteristic specific to a Sole Proprietorship concerning legal personality?

    <p>The owner has unlimited liability (D)</p> Signup and view all the answers

    Which form of ownership requires a more complex registration process, including a memorandum of incorporation?

    <p>Private Company (Pty Ltd) (D)</p> Signup and view all the answers

    What is the primary focus of social responsibility in business?

    <p>Addressing socio-economic challenges (A)</p> Signup and view all the answers

    How does illegal gambling impact the economy?

    <p>Funds organized crime and deters economic growth (D)</p> Signup and view all the answers

    What distinguishes piracy from counterfeiting?

    <p>Piracy involves imitation products, while counterfeiting involves unauthorized use of another's work (D)</p> Signup and view all the answers

    What is one adverse consequence of unemployment according to the information provided?

    <p>Increasing dependence on social welfare systems (B)</p> Signup and view all the answers

    What direct benefit can a company gain from investing in community development?

    <p>Increased profits (B)</p> Signup and view all the answers

    What characterizes workplace violence in a business setting?

    <p>Results in significant financial and human resource losses (A)</p> Signup and view all the answers

    How do entrepreneurs contribute to economic growth according to the text?

    <p>By creating employment opportunities (C)</p> Signup and view all the answers

    How does money laundering impact the economy negatively?

    <p>Undermines economic stability and legal business operations (B)</p> Signup and view all the answers

    What is the key reason for businesses to comply with employment equity legislation?

    <p>To enhance social cohesion and business reputation (B)</p> Signup and view all the answers

    Why is fair compensation and benefits important for employees?

    <p>To boost morale and productivity (A)</p> Signup and view all the answers

    What is a critical characteristic of entrepreneurs in terms of their vision?

    <p>Having clear, actionable visions (B)</p> Signup and view all the answers

    What effect does workplace violence have on a company's profitability?

    <p>Decreases overall profitability due to increased insurance costs and security investments (A)</p> Signup and view all the answers

    In the context of ownership, which type of liability means owners are personally responsible for all business debts?

    <p>Unlimited liability (D)</p> Signup and view all the answers

    Which quality of entrepreneurs involves identifying and seizing new business opportunities?

    <p>Opportunity-seeking (B)</p> Signup and view all the answers

    What is the main difference between corporations and sole proprietors in terms of tax?

    <p>Corporations pay a second tax on dividends on top of the corporate tax (C)</p> Signup and view all the answers

    How can a company enhance its reputation through CSR activities?

    <p>By investing in community development (B)</p> Signup and view all the answers

    How does pyramid schemes differ from genuine investments?

    <p>Primarily benefit top investors at the expense of newer entrants (A)</p> Signup and view all the answers

    Which form of ownership describes the legal situation where a company can enter into contracts independently of its owners?

    <p>Corporation (C)</p> Signup and view all the answers

    What is the critical role that trade unions play in CSR?

    <p>Advocating for employee benefits (D)</p> Signup and view all the answers

    Why is it vital for businesses to address social issues like crime and poverty?

    <p>To promote societal well-being and safeguard business reputation (A)</p> Signup and view all the answers

    What aspect of entrepreneurs is crucial for driving their businesses forward?

    <p>Passion and high energy levels (D)</p> Signup and view all the answers

    How do entrepreneurial qualities improve market efficiency?

    <p>By driving innovation (A)</p> Signup and view all the answers

    What is a distinguishing characteristic of entrepreneurs regarding risk-taking?

    <p>Assuming calculated risks (B)</p> Signup and view all the answers

    Why do successful entrepreneurs need exceptional organizational skills?

    <p>To create and deliver value effectively (B)</p> Signup and view all the answers

    How can businesses make supply chains more sustainable?

    <p>By establishing collaborative relationships with suppliers (B)</p> Signup and view all the answers

    Which type of characteristics do entrepreneurs exhibit as they strive to overcome obstacles?

    <p>Strong will to overcome challenges (B)</p> Signup and view all the answers

    What aspect of employee development contributes to a more skilled workforce?

    <p>Employee training in new technologies (B)</p> Signup and view all the answers

    In terms of a business's legal continuity, what does the ability to continue operations despite the exit of owners refer to?

    <p>Continuity (C)</p> Signup and view all the answers

    Why do entrepreneurs continuously adjust their strategies according to market demands?

    <p>To align strategies with market demands (A)</p> Signup and view all the answers

    Which factor differentiates corporations and close corporations from partnerships and sole proprietorships?

    <p>Legally distinct from owners (C)</p> Signup and view all the answers

    Which type of ownership allows for the most possible shareholders?

    <p>Public Company (Ltd) (B)</p> Signup and view all the answers

    Among the forms of ownership described, which one has a management structure requiring at least one director?

    <p>Private Company (Pty Ltd) (C)</p> Signup and view all the answers

    Which form of ownership is known for requiring a more structured registration process involving a memorandum of incorporation?

    <p>Private Company (Pty Ltd) (B)</p> Signup and view all the answers

    In terms of continuity, which form of ownership is mainly dependent on the involvement of the partnership agreement?

    <p>Close Corporation (CC) (C)</p> Signup and view all the answers

    Which form of ownership is governed by a board of directors elected by its members?

    <p>Co-operative (D)</p> Signup and view all the answers

    Among the forms of ownership mentioned, which has a management structure that can be led by one or several partners?

    <p>Partnership (B)</p> Signup and view all the answers

    How does cyclical poverty negatively impact economic participation and consumer markets?

    <p>By limiting access to quality education and employment, reducing consumer spending (D)</p> Signup and view all the answers

    What is the main consequence of poverty and inequality on security costs for businesses?

    <p>Increasing crime rates and necessitating higher security spending (D)</p> Signup and view all the answers

    How does embracing diversity and inclusivity contribute to reducing inequality in the workforce?

    <p>By fostering a more skilled and equitable workforce (A)</p> Signup and view all the answers

    What impact does poverty have on the perpetuation of poverty across generations according to the text?

    <p>It ensures that future generations continue to face deprivation and marginalization (D)</p> Signup and view all the answers

    What is the definition of inclusivity in a business context based on the information provided?

    <p>Ensuring diversity and equal opportunities irrespective of personal attributes (B)</p> Signup and view all the answers

    How does poverty restrict full participation in the economy, affecting consumer markets and business opportunities?

    <p>By diminishing consumer markets and limiting business opportunities (B)</p> Signup and view all the answers

    What impact does the Employment Equity Act aim to have on businesses?

    <p>Encouraging demographic diversity in the workforce (B)</p> Signup and view all the answers

    What characterizes the impact of unemployment on individuals according to the text?

    <p>Escalated social issues like crime and poverty (D)</p> Signup and view all the answers

    What is the primary difference between piracy and counterfeiting?

    <p>Unauthorized use of another's work (A)</p> Signup and view all the answers

    How does illegal gambling typically impact the economy?

    <p>Funding organized crime (A)</p> Signup and view all the answers

    What distinguishes pyramid schemes from money laundering?

    <p>Primarily benefiting top-level participants (D)</p> Signup and view all the answers

    How does workplace violence affect businesses according to the content?

    <p>Increasing insurance costs (A)</p> Signup and view all the answers

    What is the main aim of social responsibility in business according to the text?

    <p>Engaging in activities for societal well-being (D)</p> Signup and view all the answers

    How does the Employment Equity Act contribute to social cohesion?

    <p>By encouraging demographic diversity in the workforce (D)</p> Signup and view all the answers

    What purpose do laws against piracy and counterfeiting serve?

    <p>Protecting consumers from harmful products (A)</p> Signup and view all the answers

    How do strikes impact the reputation of a company?

    <p>Disrupting production and financial standing (C)</p> Signup and view all the answers

    What key role does the community play in Corporate Social Responsibility (CSR)?

    <p>Enhancing market opportunities (C)</p> Signup and view all the answers

    How can businesses contribute to economic growth according to the provided text?

    <p>Empowering employees through skill development (B)</p> Signup and view all the answers

    What is the primary focus of entrepreneurs in terms of market competition?

    <p>Staying ahead of competitors through business opportunities (B)</p> Signup and view all the answers

    How do trade unions contribute to Corporate Social Responsibility (CSR)?

    <p>Advocating for employee benefits (D)</p> Signup and view all the answers

    What is the main function of entrepreneurs in regard to economic investment?

    <p>Enhancing community well-being through investment (B)</p> Signup and view all the answers

    Which characteristic defines the entrepreneurial approach to tackling an unproductive labor force?

    <p>In-service training in new technologies (D)</p> Signup and view all the answers

    In what way do entrepreneurs drive innovation in the business landscape?

    <p>By fostering a culture of creativity and risk-taking (C)</p> Signup and view all the answers

    What characteristic is fundamental to the entrepreneurial role in combating HIV/AIDS in the workplace?

    <p>Educating employees about prevention measures (C)</p> Signup and view all the answers

    What distinguishes entrepreneurs in terms of recognizing business opportunities?

    <p>Seeking opportunities in everyday situations (C)</p> Signup and view all the answers

    How do suppliers contribute to enhancing Corporate Social Responsibility (CSR)?

    <p>Collaborating to create sustainable supply chains (A)</p> Signup and view all the answers

    What term describes a business's capacity to maintain operations despite the departure or death of its owners?

    <p>Continuity (A)</p> Signup and view all the answers

    Which form of ownership indicates that owners are solely accountable for business debts and may lose personal assets if the business fails?

    <p>Unlimited Liability (C)</p> Signup and view all the answers

    What factor influences the amount of tax paid by a business based on its legal structure?

    <p>Tax (A)</p> Signup and view all the answers

    Which term defines the legal steps necessary for a business to be officially established and commence operations?

    <p>Formation Procedure (A)</p> Signup and view all the answers

    Which quality outlines an entrepreneur's capability to organize resources efficiently to create and provide value?

    <p>Exceptional Organizational Skills (B)</p> Signup and view all the answers

    What factor distinguishes corporations and close corporations from partnerships and sole proprietorships in terms of liability?

    <p>Limited Liability (B)</p> Signup and view all the answers

    Which characteristic differentiates the legal identity of companies like corporations from partnerships and sole proprietorships?

    <p>Legal Personality (C)</p> Signup and view all the answers

    What does the term 'Capital' refer to concerning business operations?

    <p>Financial assets used to establish and operate the business (D)</p> Signup and view all the answers

    Which form of ownership necessitates owners to be only liable for the amount they invested in the business?

    <p>Limited Liability (A)</p> Signup and view all the answers

    What concept characterizes a business's ability to maintain operations unaffected by the exit, retirement, or death of its owners?

    <p>Continuity (A)</p> Signup and view all the answers

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