SUMMATIVE ASSESSMENT BUSINESS ADMINISTRATION, RISK MANAGEMENT AND FINANCIAL MANAGEMENT

SECTION A: SHORT QUESTIONS

Question 1:

1.1 Name three external role-players that need information from an organisation.

1.2 Also name the type of information needed by each.

Question 2: Why is a workload chart very useful when developing new systems?

Question 3: Name three different types of information systems and the organisational level that it is used at.

Question 4: How is the flow of information influenced by structure and culture in an organisation?

Question 5: Name three factors that must be taken into account when organising a meeting by way of video conferencing.

Question 6: Give examples of how legal requirements, regulations or the organisation's constitution can have an effect on organising events such as a conference, banquet congress, or seminar. You are required to do additional research on this topic.

Question 7: In any communication process it is important to identify your target audience. Name 5 ways which will enable you to communicate more effectively to the target audience.

Question 8: Name three devices that make use of wireless transmission.

Question 9:

9.1 Explain the difference between a star network and a ring network.

9.2 Point out the advantages and disadvantages of each type of network.

Question 10: Why is it important to compile an agenda for a meeting?

Multiple Choice - Only write the MOST CORRECT corresponding answer.

Nr: Statement or question:

Question 11:

11.1 When can a chairperson adjourn a meeting without a majority decision?

• When the rules and regulations of the organisation are not observed by the members.
• When some members talk too much and do not allow quieter members to have their say.
• When disorderliness makes it impossible to continue.
• When someone attending the meeting does not obey him.

11.2 When does a motion become a decision?

• When it is submitted in writing.
• When it is seconded.
• After it has been discussed and adopted by the meeting.
• In the next meeting after it was adopted.

11.3 A ‘bring forward' planning system is also known as ...

• To-do-list
• Tickler file
• Time-log
• Gantt chart

Multiple Choice - Only write the ACCURATE corresponding answer.

Statement or question:

11.4 What is the ‘scalar principle' more commonly known as?

• Delegation.
• Accountability
• Span of control.
• Chain of command

11.5 The rights inherent to a managerial position

• Delegation.
• Span of control.
• Authority
• Responsibility

11.6 Identify the disadvantage of centralisation

• Work processes are not always the best.
• Offices do not always have the specialised workers and equipment to implement savings
• The co-operation of administrative activities can eventually become cumbersome.
• Owing to a variety of work of smaller scope, the work is done more slowly.

11.7 In a functional organisational structure, the administrative manager ...

• Has the authority to give instructions to people in staff positions.
• Has authority to give enforceable instructions regarding the administrative function to all other functions.
• Has authority to give instructions to line functionaries and their subordinates.
• Has only line authority.

11.8 When you take action to prevent an anticipated problem, you are practising ...

• Concurrent control
• Feedback control
• Feed-forward control
• Quality control

Multiple Choice - Only write the MOST CORRECT corresponding answer

Nr: Statement or question:

11.9 A deviation from the quality standard can be caused by ...

• Sick or unhappy employees and labour unrest.
• Out-dated and inadequate machinery.
• Poor working conditions and lack of support from management
• All the above

11.10 When using the Delphi technique as a problem-solving aid, the business will ...

• Involve a group of people to generate as many as possible ideas and solutions.
• Ask each individual in the group taking part to write his/her ideas about the problem down in silence.
• Do their best to create an environment for creative thinking.
• Collect anonymous opinions from a group of experts.

SECTION B: CASE STUDIES

CASE STUDY 1

Planet Bike is a manufacturer of bicycles. It has retail outlets in Kwa-Zulu Natal, Gauteng, Limpopo, the Free
State and Cape Town. All functions are centralised in their Head Office in Gauteng, apart from sales representatives and consultants who introduce and market new products to various outlets. Steve Taylor is the administrative manager. He is a very competent manager who understands that the primary purpose of his section is to process and communicate information.

Question 12:

12.1 List four key objectives that you think Steve will be responsible for as administrative manager.

12.2 The functional managers at Planet Bike need information to enable them to assist top management in the planning, development and implementation of policies and to manage their individual functions effectively.

What type of internal information would the managers of the following areas require from Steve and his team?

• Purchasing
• Operations
• Human Resources
• Public Relations

12.3 Give two examples of external role players, and the type of information this role player would need from Steve's department.

12.4 Discuss the following statement:

‘An administrative manager should have special people skills'

CASE STUDY 2

You are leading the payments and accounts team in a small retail business. The function of the team is to process payments and administer accounts. This office takes 10 days to process a payment. One person works on a document, and then files it away in a cabinet. It is taken out later again for further work by another person. After each stage the documents are carefully filed away in a cabinet. Bongani is an expert in office layout and design. You have asked Bongani for advice with the current office layout (figure A). She inspected the current office layout.

Question 13:

13.1 Do you think the change in office lay-out was an improvement? Motivate your answer by referring to the possible effect on quality delivery, cost and time.

13.2 Bongani has advised you that you need new office furniture in some of your other sections. Write a letter to an office furniture supplier requesting a catalogue and a price list to assist you in making your decision on what to buy. (Use the Business letter-standard block form).

13.3 The photocopier is not suitable for your team any more. Investigate various photocopier options and write an informal (short) report to senior management where you request the photocopier most suitable for your office needs.

SECTION B: CASE STUDIES

CASE STUDY 3

Top-cover is a short-term insurance company. The claims department consists of 30 claims adjustors, examiners and investigators that analyse and investigate claims before the insurance company makes a payment to the customer.

Their functions include:

• Applying insurance rating systems.
• Calculating amount of claim.
• Contacting insured or other involved persons to obtain missing information.
• Organising and working with detailed office or warehouse records, using computers to enter, access, search and retrieve data.
• Paying small claims.
• Posting or attaching information to claim file.
• Preparing and reviewing insurance-claim forms and related documents for completeness.
• Providing customer service, such as giving limited instructions on how to proceed with claims or providing referrals to auto repair facilities or local contractors.
• Reviewing insurance policy to determine coverage.
• Transmitting claims for payment or further investigation.

They have experienced a sharp increase in workload over the past couple of months without any new appointments being made. They find it difficult to deal with the increased workload and feel unmotivated. Lots of time is wasted on unnecessary things like duplicate queries on outstanding claims, paperwork, unnecessary phone calls, junk e-mail, clients now knowing the right procedure to claim, etc.

To make things worse, they are constantly running out of stock and have to waste valuable time waiting for paper and other stationary. The department uses an average of 800 pages of A4 paper each day, and new stock takes 3 days to deliver.

The manager of the department, Vusi, decided to have a meeting with his team to discuss problems and possible solutions.

Question 14

14.1 Use a planning aid to demonstrate how Vusi can help his sub-ordinates use their time more effectively.

14.2 Discuss the importance of stock control in an organisation.

14.3 Decide on the level of A4 stock that must always be available for the claims department in the case study. Calculate the re-order level of A4 paper for the department. What does the figure that you calculated mean?

14.4 Write a memorandum to the claims department employees in which you give them information on the forthcoming meeting.

SECTION C: ESSAY QUESTIONS

Question: 15

As a result of the technological revolution, electronic communication today is one of the most frequently used modes of communication. Communications media technology is vitally important in a network.

15.1 Which factors should be considered to determine the most appropriate communications medium?

15.2 What is groupware and why is it so important in an organisation?

Question 16 :

The relationships within an organisation cannot be restricted to those enforced by management, and are therefore not always formal.

Explain why it is important for the administrative manager to know about the informal
organisational structure.

Question 17 :

Problem-solving is a skill that is required of an administrative manager. Discuss the following statement critically:

‘All problems that occur in the workplace have something to do with people at some stage.'

Question 18 :

You have been asked to develop a forms management policy for ABC Stores, a closed corporation business that belongs to two brothers.

18.1 Motivate the necessity of a forms management system.

18.2 What should be addressed in a forms management policy?

18.3 Describe how you would go about establishing a forms management policy.

SECTION D: FINANCIAL MANAGEMENT QUESTIONS

Question 19 :

Explain at least 5 steps that a company can take to ensure that it will maintain a positive cash flow.

Question 20:

Discuss the two main reasons why businesses normally loose money.

Question 21:

21.1 Briefly explain the 8 stages in a typical budgeting process.
21.2 Explain how Zero-based budgeting is done.

Question 22:

Compile a pre-adjustment trail balance for Daniela's Sweets.

The following balances appear in her general ledger of 31 October:

Bank (positive) R15 000
Capital R27 000
Salaries R 8 000
Vehicles R35 000
Creditors R34 000
Debtors R10 000
Equipment R12 000
Sales R21 000
Rental R 2 000

Question 23:

Compile an income statement for Fruity Tooty Juice for October.

The following information is available:

During the month they received R55 000 for the sale of fruit juice. At the beginning of the month they had R5 000 worth of fruit juice. During the month they bought another R18 000 of fruit juice.

At the end of the month they have R6 000 stock left. Rental for the shop amounts to R4 000 per month. They pay the sales person R3 000 per month.

The cost of paper cups used during the month is R2 500.