The Entrepreneur as a Manager

Module 8 – FORMATIVE ASSESSMENT

Learner Full Names:

Surname:

Only fill in your answers in the provided columns to the right hand side of the page.

Question 1: Match each of the following words to the statements below (e.g. 1.1 – c, 1.2 -b)

a. Productivity b. Capacity

c. Operations management

d. Transformation process e. Production

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Statement:

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Your

Answers

1.1

The greatest possible workload the operations of an organisation can handle.

1.1

1.2

Efficiency with which an organisation turns production inputs into outputs.

1.2

1.3

Organising resources in order to meet a customer’s requirements.

1.3

1.4

Systematic direction and control of the processes that change inputs into outputs.

1.4

1.5

An activity that takes one or more inputs, changes the physical characteristics of these inputs and adds value to them for the customer.

1.5

Total question 1

The Entrepreneur as a Manager

Question 2: Choose the CORRECT answer by selecting a or b.

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Statement or question:

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Your

Answers

2.1

The purchasing function plays a very important role in the allocation of a) scarce production aids or

b) raw materials

2.1

2.2

Savings on purchasing has a direct effect on the of an enterprise. a) efficiency or

b) profitability

2.2

2.3

Administrative planning consists of the establishment of that can effectively determine needs.

a) material estimates or b) procedures

2.3

2.4

When all the purchasing responsibilities are allocated to different divisions, individuals or geographically distributed operations, it is known as purchasing.

a) centralised or b) decentralised

2.4

2.5

Maintenance stock consists of .

a) Raw materials, parts and components that are used in the manufacturing process or

b) Goods, smaller production parts and cleaning products used in the production process

2.5

Total question 2

Question 3: Choose one concept or explanation from the list below, that best describes each group of words that follow. a. Job design. b. Job description. c. Job specification. d. Job profiling. e. Job analysis. f. Job enlargement g. Job enrichment h. Job rotation
Nr:	Word groups:	Nr:	Your Answers:
3.1	Document containing tasks, duties and responsibilities for a specific job.	3.1
3.2	Combining tasks to form complete jobs.	3.2
3.3	Collecting information about a job to establish tasks, duties and responsibilities of a position.	3.3
3.4	The description of a job in terms of its required outcomes.	3.4
3.5	Written document that describes the abilities, skills, qualifications and characteristics for a specific job.	3.5
3.6	The vertical expansion of a job that allows the worker to do a complete activity and assess and correct his own performance.	3.6
3.7	Increase in the number and variety of tasks that an individual performs.	3.7
3.8	Increasing variety by permitting workers to shift to other jobs periodically to reduce boredom and distribute unpleasant jobs.	3.8
	Total question 3		/8

Question 4: Fill in the missing words from the list below:

a. Just wage

b. Acceptable wage c. Competitive wage

d. Wage with increment

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Statement or question:

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Your

Answers:

4.1

A makes provision for an increasing wage, regardless of promotion to a higher post.

4.1

4.2

A _compares well with those of other employees in the region.

4.2

4.3

A is in accordance with the requirements of the position which the em- ployee must fill.

4.3

4.4

A enables the employee to provide at least in his / her basic needs and to maintain a satisfactory standard of life

Total: question 4

Question 5: Read each statement carefully then state true or false in the space provided.

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Statement or question:

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Your Answers

5.1

The liquidity of a business has nothing directly to do with its profitability.

5.1

5.2

The reliability of the value of the total assets of a business is not so critical when calculating solvency.

5.2

5.3

A high return on investment is proof of management’s ability to add value to

the enterprise.

5.3

5.4

Return on equity indicates the rate of return on total capital or the profitability of a business.

5.4

5.5

Trade creditors and shot-term loans are examples of net working capital

5.5

5.6

Sometimes over the short term it is wise to forget about profitability issues and to make sure that major liquidity threats are immediately addressed.

5.6

5.7

The break-even point of a business is the level of business where the income from its sales is equal to the cost of sales.

5.7

5.8

For a retailer fixed costs, also called direct costs, consists of the cost price of a product the retailer pays to the supplier.

5.8

5.9

Marginal income refers to the positive difference between selling price per unit minus the direct cost price per unit.

5.9

5.10

The total indirect costs of a business vary according to the volume of sales.

5.10

Total question 5

/10

The Entrepreneur as a Manager

Question 6: Choose one type of budget from the list below, that best matches each definition or statement that follows. Write down the corresponding letter (a/b/c etc.) in the answer column:

a. Master budget b. Sales budget

c. Purchases budget d. Production budget

e. Labour budget

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Definition or Statement

Your

Answers

6.1

It has an influence on many other budgets.

6.1

6.2

If a small business does not produce goods but buys and sells, it must draw up this budget.

6.2

6.3

Without this budget you may find that you do not have enough staff to complete your required production.

6.3

6.4

Compiled from a number of different budgets.

6.4

6.5

This budget helps you to ensure that the correct amount of stock is carried in your business.

6.5

Total question 6

strong>T</strong>OTAL FORMATIVE 8

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