THURSDAY: 7 December 2023. Afternoon Paper. Time Allowed: 2 hours.

This paper is made up of fifty (50) Multiple Choice Questions. Answer ALL questions by indicating the letter (A, B, C or D) that represents the correct answer. Each question is allocated two (2) marks. Do NOT write anything on this paper.

1. Which of the following factors distinguishes a “small business owner” from “an entrepreneur”?

A. Small business owners are keen on innovation
B. Small business owners undertake high risks
C. Small business owners have a long-term vision
D. Small business owners do not seek new opportunities (2 marks)

2. Which of the following elements makes up an entrepreneur’s micro-environment?

A. Government
B. Suppliers
C. Technology
D. Economy (2 marks)

3. Select the statement that describes the term “business opportunity”.

A. A concept in the mind that can provide value for customers
B. An entity involved in the production of goods and services
C. An idea which provides a possibility of a return on investment
D. The process of creating a business for leisure (2 marks)

4. Which of the following represent external sources of business ideas?

A. Government, employees, and exhibitions
B. Media, suppliers, research and development
C. Customers, competitors and distribution channels
D. Exhibitions, hobbies and current trends (2 marks)

5. What term refers to buyers with common characteristics that a business decides to serve?

A. Target market
B. Niche market
C. Loyal customers
D. Satisfied customers (2 marks)

6. Which of the following could be exploited by an entrepreneur as a business opportunity?

A. Established competitors
B. Availability of substitutes
C. Solution to a problem
D. Competent employees (2 marks)

7. Identify a reason that could lead to the failure of a new venture.

A. Poor timing
B. Controlled growth
C. Delegation of duties
D. Low competition (2 marks)

8. Which of the following is a disadvantage of a sole proprietorship form of business?

A. Limited liability
B. Ease of formation
C. Lack of continuity
D. Business inflexibility (2 marks)

9. What term refers to a situation where two companies join together by mutual agreement to form a new entity?

A. Partnership
B. Merger
C. Acquisition
D. Joint venture (2marks)

10. The following are benefits of engaging in a franchising arrangement.
(i) Royalty payments
(ii) Training and guidance
(iii) More control over brand
(iv) Easy to enter foreign markets
(v) Business growth
(vi) Proven track record

Which of the set below represents benefits that could accrue to a franchisor?
A. (ii), (v), (vi)
B. (ii), (iii), (iv)
C. (i), (iv), (v)
D. (ii), (iv), (vi) (2 marks)

11. Which of the following is a benefit of debt financing to an entrepreneur?

A. No limit of amount to be acquired
B. No conditions and restrictions
C. No relinquishment of ownership
D. It is a permanent source of finance (2 marks)

12. Identify a benefit of preparing a business plan.

A. Helps in reducing competition
B. Helps deal with uncertainties
C. Increases the demand of a product
D. Helps in keeping financial records (2 marks)

13. What term describes the process of managing profitable customer relationships?

A. Customer satisfaction
B. Customer value
C. Market analysis
D. Marketing (2 marks)

14. How could a receiver overcome barriers to oral communication?

A. Use complex language
B. Act on feedback
C. Seek clarification
D. Information overload (2 marks)

15. Why should a speaker carry out audience analysis before delivering a presentation?

A. Determine size of visual aids
B. Determine the occasion
C. To select an appropriate topic
D. Ensure adequate rehearsal (2 mark)

16. Identify one effective way of concluding a presentation.

A. State objectives
B. Cite the source
C. State facts and statistics
D. Call for action (2 marks)

17. What could the display of appropriate posture communicate during an interview?

A. Confidence
B. Knowledge
C. Good health
D. Status (2 marks)

18. Which of the following is a purpose of holding a staff meeting?

A. Determine attendance
B. Write minutes
C. Prepare agenda
D. Give updates (2 marks)

19. Identify a common role played by both the chairperson and secretary of a meeting.

A. Sign minutes
B. Prepare notice
C. Control meeting
D. Open meeting (2 marks)

20. Select the function of an entrepreneur.

A. Political opinion leader
B. Person who bears risk
C. A social mobiliser
D. A business analyst (2 marks)

21. Choose the statement describing a partnership deed.

A. A document of capital appropriation
B. Document showing internal rules of a business
C. Document that allows transfer of shares
D. Document of transfer of assets to partners (2 marks)

22. Identify a rule observed when writing a complaint letter to an organisation.

A. Assuming the organisation is to blame
B. Suggesting how the mistake occurred
C. Using a forceful and unkind language
D. Confining to the facts of the matter at hand (2 marks)

23. Choose a limitation of upward communication.

A. Delays in passing information to top management
B. Minimises understanding among departments
C. It boosts the morale and productivity of employees
D. Ensures better understanding and efficiency (2 marks)

24. Identify the problem a sender encounters when the receiver fails to give feedback.

A. It confirms that the idea has been understood
B. It provides a basis for subsequent action
C. Limitation in taking appropriate action
D. Resolves uncertainties and gives confidence (2 marks)

25. Choose an advantage of face-to-face communication.

A. There is no evidence of communication
B. Difficult when parties are far apart
C. It can be easily misunderstood
D. It enhances communication flexibility (2 marks)

26. Choose an effective method of minimising aspects of communication barriers.

A. Use of technical language
B. Using body language inappropriately
C. Attentive and careful listening
D. Complex organisation structure (2 marks)

27. Select a feature of “concreteness” in communication.

A. Messages are misinterpreted easily
B. Makes use of unclear words
C. Makes use of ambiguous terms
D. Message with facts and figures (2 marks)

28. Choose a benefit of using notices in an organisation.

A. To reveal the sender
B. To encourage informal communication
C. To ensure effective performance
D. To update employees on events (2 marks)

29. Which of the following is an objective of job selection interview?

A. To establish suitability of candidate for the organisation
B. To establish suitability of individual to study
C. To establish whether the candidate can progress
D. To find out whether the job is vacant in an organisation (2 marks)

30. Which of the following is a purpose of using audio-visual aids during a presentation?

A. To lower the impact of a presentation
B. To support and enhance oral presentation
C. To allow an extended presentation
D. To provide the audience with presentations (2 marks)

31. Identify the advantage of using teleconferencing as a way of holding a meeting.

A. It focuses on a small number of staff
B. It is an economical and flexible way
C. It is a way of keeping low technology
D. It allows face-to-face meetings (2 marks)

32. Who is responsible for preparing the minutes of a meeting?

A. The secretary
B. The chairman
C. The master of ceremony
D. The director (2 marks)

33. Which of the following is a method of applying effective listening?

A. Distraction by emotional noise
B. Being empathetic to the speaker
C. Focus on personal agenda
D. Having information overload (2 marks)

34. Identify a factor that could push individuals to become entrepreneurs.

A. Threat of unemployment
B. Lack of human resources
C. Unstable political climate
D. High interest rates (2 marks)

35. Which of the following explains favourable set of circumstances that create a need for a new product or business?

A. Business expansion
B. Market penetration
C. Entrepreneurial opportunity
D. Market research (2 marks)

36. Which of the following could be a criteria for admission to a business incubator?

A. Strong brand name
B. Workable business plan
C. Strong management team
D. Number of existing businesses (2 marks)

37. Which of the following statement describes the term “patent”?

A. Combination of a name and symbol to identify a brand
B. Proprietary information used to gain competitive advantage
C. Agreement to use the intellectual property of another for a fee
D. Grant of property rights by the government to an inventor (2 marks)

38. Which component contains materials required to support a business plan?

A. Reference
B. Appendix
C. Executive summary
D. Table of content (2 marks)

39. Identify a way in which intrapreneurship could be achieved in an organisation.

A. Undertaking incubation of business
B. Encouraging creativity and innovation
C. Preparation of an effective business plan
D. Segmenting the market for goods and services (2 marks)

40. Which of the following is a component of market evaluation of a business idea?

A. Level of skills available
B. Number of competitors
C. Government policies
D. Personal interests (2 marks)

41. Which of the following is a characteristic of equity finance?

A. Offers ownership position in the business
B. Requires payment of principal and interest
C. Acquired from external sources only
D. Only raised by limited liability companies (2 marks)

42. Identify a benefit of understanding customer needs from the following:

A. Eliminates the need for customer management systems
B. Makes it easy to ignore customer preferences
C. Reduces the chances of market competition
D. Guide to provision of good customer service (2 marks)

43. Which of the following is an objective of gathering information on the industry and market while preparing a business plan?

A. Helps the investors understand the plan
B. To help in the acquisition of finance
C. Ensure reasonable and measurable goals
D. Helps in transferring skills required in business (2 marks)

44. Which of the following is a strategy that could be applied at the decline stage of a product life cycle?

A. Skimming
B. Divesting
C. Penetration
D. Stabilisation (2 marks)

45. Identify a problem which could arise as a result of information overload.

A. Lead to lack of channel to transmit the message
B. The message is quickly processed
C. Reduce the receiver’s ability to concentrate
D. Result in poor timing in conveying the message (2 marks)

46. Which of the following is a similarity between a letter and a memorandum?

A. Have a salutation and complimentary close
B. Includes the signature and designation of sender
C. Used for internal and external communication
D. Generally addressed to multiple recipients (2 marks)

47. Identify a situation when a memorised speech could be appropriate.

A. When the speaker is unprepared
B. If the speaker has prepared an outline
C. When the speech is relatively short
D. If the speaker is unsure of the content (2 marks)

48. Select a benefit of using standardised questions in an interview.

A. Helps to get interviewee’s opinions
B. Eliminates interviewer’s biasness
C. Helps to discover interviewee’s feelings
D. Easy to assess interviewee’s communication skills (2 marks)

49. Identify the statement that explains the term ‘quorum’ in relation to meetings.

A. Members who are invited to a meeting
B. Members who should participate in a meeting
C. Conveners of a properly constituted meeting
D. Minimum number of members who must be present (2 marks)

50. Which of the following is an advantage of using flip charts during presentation?

A. Saves time as they are prepared in advance
B. Interactive and allows for audience’s input
C. Can incorporate multimedia file types
D. They are suitable for very large audience (2 marks)

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