Other Economics Answers

Data-mining software uses statistical algorithms to discover correlations and patterns to create useful information…

a.

False.

b.

True.

Data that inputs into Big Data systems can include…

a.

Satellite imagery.

b.

Social network traffic.

c.

Web server logs.

d.

All the above.

During the 2019/2020 fiscal year, SAB generated sales revenue of R33 billion. SAB decided to invest R330 000 in a fixed account that earns 10% interest. How much will the fixed account be worth in five years’ time?

Select one:

a.

R531 465

b.

R337 669

c.

R483 153

d.

R830 258

IBM decides to invest R425 000 in a fixed account that earns 15% interest. How much will the fixed account be worth in four years’ time?

Select one:

a.

R243 015

b.

R854 845

c.

R743 325

d.

R830 258

If IBM would like to improve its gross profit margin, which one of the following strategies would be the most appropriate? IBM would have to _______________ .

Select one:

a.

decrease its marketing efforts in order to decrease sales while increasing the cost of products sold

b.

reduce equity by buying back shares and cancelling the shares

c.

improve its marketing efforts in order to increase sales while reducing the cost of products sold

d.

increase sales by relaxing the credit standards while improving productivity by means of performance-management systems

Despite a better statement of financial position and a renaissance in the laboratories, IBM fell further behind every year. In Unix servers, the backbone of the internet, IBM’s sales rose 3% in 1998, but sales of their competitors soared, for example Sun Microsystems grew by 29%. Which one of the following best describes the statement of financial position?

Select one:

a.

Can be described as the accrued power of disposal over the products and services used by the business to generate a monetary return.

b.

Consists of primarily receipts resulting in the sale of the business’s products and/or services.

c.

Reflects all the possessions of the business as well as the nature and extent of the interests in these possessions.

d.

Furnishes details about the way the profit or loss for a particular period was arrived at and how it has been distributed.

Kelly is the owner of a small gourmet burger food truck. She sells her burgers during lunch in the parking lot of the Menlyn Maine shopping centre. Her expenses are recorded as follow:

Sales price per burger: R35 per burger

Variable cost per burger: R12 per burger

Total fixed cost per annum: R42 000

If Kelly were to sell 27 900 burgers what would her profit be?

Select one:

a.

R943 500

b.

R576 600

c.

R599 700

d.

Kelly would not make a profit

Kate owns her own bakery and leases her operating equipment, such as ovens and fridges, from EasyBake. The lease amount, which Kate pays back in regular installments, is determined in such a way that the value of the asset, plus an interest charge, is paid back by the end of the term of the lease, which is usually related to the lifespan of the asset. Which type of financial leasing agreement does Kate have with EasyBake?

Select one:

a.

Operating-lease agreement

b.

Direct financial leasing

c.

Leaseback agreement

d.

Lifespan leasing

Which one of the following options can be used to increase the value of the business?

Select one:

a.

Investing in assets that will add value to the business

b.

Keeping the cost of capital as high as possible

c.

Investing in proper marketing and operational strategies

d.

Investing in liabilities that will add value to the business

Nomvula is the secretary of a labour union at Goliath National Mine in Uganda. He has requested that the financial manager send him the latest financial ratios. Why would Nomvula be interested in the financial ratios of the mine?

Select one:

a.

He requires the information with the view of internal control, planning and decision-making

b.

He needs to evaluate the ability of the mine to pay its debt and interest.

c.

He has need of the information with the view to salary negotiations.

d.

He needs to evaluate the mine as an investment opportunity.