Cultivating Entrepreneurial and Business Skills Programme: Level 2 Assessment

a) During the recession phase of the economy

b) During the depression phase of the economy

c) During the growth phase of the economy

d) During the recovery phase of the economy

a) Jerome Powell

b) Ben Shalom Bernanke

c) Donald Trump

d) Wladimir Poetin

a) Japan

b) America as measured by the S&P 500 index

c) Germany

d) South Africa

a) Finance

b) Manufacturing

c) Mining

d) Government

a) Leads to customer conversion increase by 10% + Products per customer increase by 10% + Selling price increase by 10% = Total turnover increase of 30%

b) Leads to customer conversion increase by 10% + Products per customer increase by 10% + Selling price increase by 10% = Total turnover increase of 10%

c) Leads to customer conversion increase by 10% + Products per customer increase by 10% + Selling price increase by 10% = Total turnover increase of 25%

d) Leads to customer conversion increase by 10% + Products per customer increase by 10% + Selling price increase by 10% = Total turnover increase of 33.1%

a) Retail companies generally have high Net Profit Margins, as the companies can add relatively large margins to basic food items

b) Retail companies generally have lower Return on Asset ratios than Return on Equity ratios, as the Return on Equity ratios are leveraged upwards

c) The Net Profit Margin within a retail company gives an indication of how profitable the company’s core business of buying and selling goods is

d) The Operating Profit Margin cannot be calculated for retail companies, as the gross profit is determined by the Cost of Sales

a) 1 – B; 2 – A; 3 – C

b) 1 – C; 2 – B; 3 – A

c) 1 – A; 2 – C; 3 – B

d) 1 – B; 2 – C; 3 – A

a) Firm Infrastructure; Marketing and Sales; Human Resource Management

b) Technology Development; Procurement; Inbound Logistics

c) Operations; Human Resource Management; Procurement

d) Inbound Logistics; Operations; Outbound Logistics

a) Cash has a higher risk of manipulation than accounting profits, and thus needs to be managed more efficiently

b) Supplier relationships can be damaged if a business is unable to honour their short-term commitments due to a lack of available cash

c) Cash is often needed for growth and expansion, and thus excess cash need to be created and managed efficiently

d) Working capital management policies can determine how much cash is tied up in inventory of trade debtors

a) All industries should be measured against the rule of thumb of 2:1 for the current ratio and 1:1 for the quick ratio

b) The current ratio and quick ratio for high-risk businesses within the industry are often much higher than the industry average

c) Since the retail industry is perceived as a low-risk industry, the average current ratio and quick ratio are higher than in other industries

d) The average current ratio in the retail industry is lower than in other industries, due to the fast inventory turnover and high volume of cash transactions

a) By applying risk management principles, a company can eliminate all internal and external risks

b) An investor willing to take on a higher risk can always expect a higher return, since high risk equals high return

c) Upside risk refers to the possibility of things working out better than expected, and expansion projects often have an upside risk and a downside risk

d) Downside risk refers to possible adverse events, and is the only risk that a company should consider during expansion projects

a) Interest Rate risk is removed from the product and segment business units

b) Product and Segment business units will receive more Net Interest margin for Advance products if Interest rates increase

c) Product and Segment business units will receive the same Net Interest margin for Advance products if Interest rates increase

d) Deposit taking business units will receive a positive Net Interest margin for deposit products