W1-2-60-1-6
JOMO KENYATTA UNIVERSITY
OF
AGRICULTURE AND TECHNOLOGY
University Examinations 2014/2015
FIRST YEAR FIRST SEMESTER EXAMINATION FOR
CERTIFICATE IN PURCHASING AND SUPPLY MANAGEMENT
CED 0107: STARTING AND MANAGING SMALL BUSINESS
DATE: APRIL 2015 TIME: 1½ HOURS
INSTRUCTIONS: ANSWER ALL QUESTIONS IN SECTION A AND ANY OTHER ONE QUESTION IN SECTION B
SECTION A
Question One (40 Marks)
a) (i) Define a business idea. (1 Mark)
(ii) Identify four (4) sources for small business ideas. (4 Marks)
b) Mention four (4) characteristics of a small business owner. (4 Marks)
c) (i) What is business opportunity? (1 Mark)
(ii) State four (4) factors a small business owner should consider when evaluating a business opportunity. (5 Marks)
d) Identify four (4) gaps in the small business market in Kenya that need to be exploited by potential entrepreneurs. (4 Marks)
e) (i) What is market analysis? (1 Mark)
(ii) Highlight five (5) probable causes of small business failure. (4 Marks)
f) Outline four (4) factors that may promote entrepreneurship amongst the youth and women in the small business sector in Kenya. (4 Marks)
g) Highlight four (4) factors a potential small business owner should consider when choosing the business in which to invest. (4 Marks)
h) Identify two (2) major sources of small business finance. (2 Marks)
i) Mention four (4) important legal considerations before starting small businesses in Kenya. (4 Marks)
j) (i) What is tendering? (1 Mark)
(ii) Mention any two (2) steps of a tendering procedure. (2 Marks)
SECTION B
Question Two (20 Marks)
a) (i) State the meaning of strategic planning. (2 Marks)
(ii) Mention two (2) purposes of a strategic plan in a small business. (4 Marks)
(iii) Outline four (4) key elements of strategic planning. (4 Marks)
b) Discuss briefly the process of strategic planning. (10 Marks)
Question Three (20 Marks)
a) (i) Define risk
(ii) Highlight importance of risk management in business. (5 Marks)
(iii) List down five (5) ways in which risk management can be applied in a small business. (5 Marks)
b) Describe five (5) ways in which the insurance industry facilitates the development of small business in Kenya. (10 Marks)
Question Four (20 Marks)
a) (i) Explain five (5) importance of record keeping in a business. (5 Marks)
(ii) List down four (4) basic financial statements. (4 Marks)
b) (i) What is a tax? (1 Mark)
(ii) Mention two (2) tax considerations for small business in Kenya. (2 Marks)
(iii) Describe the double entry system of recording business transactions. (8 Marks)
