Chapter 1,12

Question 1

factors of Business environment?

Answer 1

Political
Economic
Social
Technological
Legal
Environmental

Question 2

What does load shedding affect?

Answer 2

Communities
Health care
Households
Education
Emotions
Businesses
Economy

Question 3

What effect does war have?

Answer 3

Business
-direct (death)
-indirect (GDP)
Supply chain

Question 4

What effect does climate change have?

Answer 4

Action: Adaptation, Mitigation, Loss and Damage, Climate finance (consequences) and carbon finance (carbon credits)

Question 5

How do organisations influence ethical conduct?

Answer 5

seniors lead by example
training
code of ethics

Question 6

Challenges of implanting code of ethics?

Answer 6

Culture/upbringing
design must be appropriate
must be enforced

Question 7

What is social responsibility?

Answer 7

Recognising that business activities impact society and environment - affect on decision making

Question 8

What is the two basic dimensions of SR?

Answer 8

Legality and responsibility

Question 9

What is the two views of SR?

Answer 9

Economic model: other organisations problem

Socio - economical model: take initiative

Question 10

Tax Rebates?

Answer 10

Primary: 17 235
Secondary (65 and older): 9 444
Tertiary (75 and older): 3145

Rebates: Tax thresholds x 18%

Question 11

Tax Thresholds?

Answer 11

Under 65: 95 750
65 and older: 148 217
75 and older: 165 689

Question 12

Company tax and dividend?

Answer 12

Tax: 27%
Dividend tax: 20%

Question 13

4C’s funder considerations?

Answer 13

Capacity: pay debts on time
Collateral: Quality and value of assets supporting indebtedness
Covenants: Terms and Conditions of the agreements
Character: Quality of management

Question 14

What are the requirements of a company?

Answer 14

Memorandum of incorporation
Registration with CIPC

Question 15

Types of companies sourced from MOI?

Answer 15

Public (Ltd)
Private Company (Pty Ltd)
Personal liability company (Inc)

Question 16

Profitability Ratios?

Answer 16

Return on total assets: Operating profit+investment income/average total assets x100
-how well company uses assets to generate profit

Return on shareholders equity:
Operating profit+investment income-finance costs/Average shareholders equity x 100
-how well used shareholders contributions

Question 17

Profit margins?

Answer 17

Gross Profit margin:
GP/sales x 100

Net Profit margin:
NP/net sales x 100

Question 18

Return on Equity?

Answer 18

NP/Total OE x 100
Return owners receive on investment

Question 19

Earrings per share?

Answer 19

Attributable earnings/Nr ordinary shares issued
How well shares do

Question 20

Retained Earnings?

Answer 20

1. Investing surplus funds
2. Expanding existing capacity and capabilities
3. Creation of new product lines
4. Expanding internally through mergers and acquisitions
5. Purchasing patents

Question 21

Total stock Return?

Answer 21

((P end - P start) + Dividend)/P start

Question 22

Creating a market strategy

Answer 22

1. Competitive advantage
2. Market Segment (Demographic, Geographic, Psychographic, Benefit, Volume)
3. Target Market (Product, Price, Place, Promotion)

Question 23

Different types of consumer products?

Answer 23

Unsought
Convenience
Shopping
Specialty

Question 24

Different price Strategies?

Answer 24

Price Skimming
Penetration Pricing
Leader Pricing
Bundling
Odd-even Pricing
Prestige Pricing