UNIVERSITY EXAMINATIONS: 2011/2012
SECOND YEAR EXAMINATION FOR THE BACHELOR OF
SCIENCE IN INFORMATION TECHNOLOGY
BIT 2306 ENTREPRENEURSHIP
DATE: AUGUST, 2012 TIME: 2 HOURS
INSTRUCTIONS: Answer Question ONE and any other TWO
QUESTION ONE
a) Evaluate the features of the following three types of business ownership
i. Sole Proprietorship
ii. Partnership
iii.Companies [12 Marks]
b) Any entrepreneur who is in business or is about to launch a business needs a well-
conceived and factually based business plan. Explain four reasons why every
entrepreneur should create a business plan. [8 Marks]
c)The growth of the internet has created a new way of doing business in which sellers
and customers exchange goods and services virtually. This new technology has had a
far reaching impact on the performance of most entrepreneurs. Explain five ways in
which the Entrepreneur has benefited from this technological advancement. [10 Marks]
QUESTION TWO
a) Businesses that fail to protect their intellectual property can put their most valuable
assets at risk.
i) Give three reasons why business ideas should be protected [6 Marks]
ii) Using appropriate examples,discuss three legal protections available to an
entrepreneur that help keep their intellectual property safe from theft and
infringement. [9 Marks]
b) A limited liability company is a legal entity existing independently from the people
who own it. Discuss. [5 Marks]
QUESTION THREE
a) Using appropriate illustrations, Explain five ways in which entrepreneurs benefit from
management knowledge. [10 Marks]
b) Highlight five importance of preparing financial statements to an entrepreneur.
[10 Marks]
QUESTION FOUR
a) Businesses grow best when incubated.Outline four benefits of incubation to an
entrepreneur. [8 Marks]
i) Discuss the importance of objective setting to an entrepreneur. [4 Marks]
b) Describe four qualities of a good business opportunity. [8 Marks]
QUESTION FIVE
a) Briefly discuss FOUR stages of business growth. [8 Marks]
b) Enumerate the six challenges faced by entrepreneurs in Kenya and for each challenge,
suggest a remedy. [12 Marks]
