ENTREPRENEURSHIP AND INNOVATION DECEMBER 2022 PAST PAPER

WEDNESDAY: 7 December 2022. Morning Paper. Time Allowed: 2 hours.

Answer ALL questions by indicating the letter (A, B, C or D) that represents the correct answer. This paper is made of fifty (50) Multiple Choice Questions. Each question is allocated two (2) marks.

1. What does the harvesting stage of the entrepreneurial process involve?

A. Writing business analysis report
B. Consulting an entrepreneur
C. Choosing an exit strategy
D. Getting return on investment (2 marks)

2. Which statement explains how organisations promote intrapreneurship?

A. Establishing rigid management organisation structures
B. Applying a long and complex organisation structure
C. Providing an environment where freedom is valued
D. Penalising project and product development failures (2 marks)

3. Choose the statement that describes the purpose of social entrepreneurship.

A. Focuses on community and social environments
B. Encourages individuals to make incremental profits
C. Supplies goods and services to the very needy people
D. Solve community challenges in an innovative way (2 marks)

4. Which statement describes how entrepreneurship contributes to economic growth?

A. Discussions and reports about the economy                                                                                                                                        B. Widening the economic gap in the country
C. Creating high growth ventures in the country
D. Working on the country’s economic policies (2 marks)

5. Which statement explains a step in corporate entrepreneurship strategy making process?

A. External environment conditions
B. Innovative strategic vision
C. Competitive business capability
D. Strategic business repositioning (2 marks)

6. Choose one principle applied by successful innovative companies.

A. Implementation of operational organisation plan
B. Application of a single management approach
C. Flat organisational structure with project teams
D. Implementation of complex market approaches (2 marks)

7. Select a common source of entrepreneurial stress.
A. Environmental stress
B. Business life cycles
C. Political environment
D. High need to achieve (2 marks)

8. Choose the most appropriate definition of an entrepreneur.

A. Young, brilliant and energetic person
B. Gamblers who take big risk in business
C. Innovator contributing to economic growth
D. Genetically predisposed to be successful (2 marks)

9. Identify one characteristic associated with an entrepreneurial ego.

A. Sense of trust and mistrust
B. Desire for business success
C. Overbearing need for control
D. Unrealistic view of business (2 marks)

10. Select a personal characteristic that may hinder an entrepreneur from recognising a business opportunity.

A. Prior business experience
B. Business social networks
C. Entrepreneurial awareness
D. Inability to solve problems (2 marks)

11. Identify one content found in the harvest strategy section of a business plan.

A. Organisational obstacles and risks
B. Organisational budgeting plans
C. Organisation’s continuity strategy
D. Organisation’s management team (2 marks)

12. Choose one guideline considered when writing a business plan.

A. Avoid highlighting the critical risks
B. Writing to capture the reader’s interest.
C. Excess revenue potential of the business
D. Focus on multiple markets and over diversify (2 marks)

13. Choose the major similarity between sole proprietorship and partnership businesses.

A. Perpetual continuity
B. Unlimited liability
C. Full control of owners
D. High cost of setting up (2 marks)

14. Choose the importance of having passion when running a successful business.

A. To be able to gather the necessary business information.
B. To persevere and persist when faced with challenges
C. To find an appropriate partner with necessary resources
D. To establish a good relationship with potential customers (2 marks)

15. Which of the following statements describe the concept of bootstrapping?

A. Using raw materials produced using high technology
B. Using human capital that is highly specialised
C. Reducing expenses to minimise cost of doing business
D. Using technology to produce goods for a new market (2 marks)

16. Choose the statement which gives the description of succession in business.

A. The process of transfer of property to founders
B. The process of intergenerational transfer of business
C. Process of transfer of business documents to the founder
D. The process of establishing new business owners (2 marks)

17. Choose the factor driving the growth of corporate entrepreneurship.

A. The growth of new markets in developing countries
B. The growth of micro, small and medium enterprise.
C. Growth of new competitors locally and internationally
D. Growth of communication technology locally (2 marks)

18. Choose the factor that contributes to successful corporate entrepreneurship.

A. Having a tall organisation structure and lines of authority
B. Having a team within organisation’s lines of authority
C. Having a vision and support for innovative atmosphere
D. Having a single approach that encourages limited projects (2 marks)

19. Which of the following is a technique for improving the creative process?

A. Illumination
B. Mind mapping
C. Incubation
D. Transformation (2 marks)

20. Which statement describes the concept of rapid prototyping?

A. Technique for evaluating the forces that support change
B. Technique for unstructured team produces a novel idea
C. Technique that allows discovery of flaws in the idea
D. Technique for evaluating the forces that oppose change (2 marks)

21. Select a statement that describes the term patent.

A. A design used by a company to identify the origin of a product
B. A Symbol used by the company to distinguish a product
C. A grant from the government to the inventor of a product
D. A grant from associations to the inventor of a product (2 marks)

22. Choose the most distinctive quality of an imitative entrepreneur.

A. Pursue opportunities and focus on growth
B. Adapt successful innovations and duplicate them
C. They go into business based on their expertise
D. They are aggressive in experimentation of ideas (2 marks)

23. Which statement describes the force behind small business innovation?

A. Agility and adaptability
B. Excessive market resources
C. Limited business market
D. Access to information (2 marks)

24. Which of the following is a drawback of becoming an entrepreneur?

A. Lack of control
B. Uncertainty of income
C. Short working hours
D. Need for innovation (2 marks)

25. Which characteristic of entrepreneurs refer to the ability to recover and learn from business failure?

A. Optimism
B. Innovativeness
C. Aggressiveness
D. Resilience (2 marks)

26. Which of the following is an external factor that motivates people to become entrepreneurs?

A. Large industrial base
B. Risk-taking propensity
C. Locus of control
D. Need for independence (2 marks)

27. Which of the following is a reason for encouraging corporate entrepreneurship?

A. Increased competition
B. Increased unemployment
C. Lack of skilled labour
D. Unexploited resources (2 marks)

28. Which of the following technique could be used to enhance creativity in an organisation?

A. Rules and regulations
B. Standardised procedures
C. Variety of skill types
D. Autocratic leadership (2 marks)

29. What term refers to the creative stage where the new idea clearly emerges in the mind?

A. Evaluation
B. Imagination
C. Incubation
D. Illumination (2 marks)

30. Which of the following describes the term invention?

A. Discovery of new and novel products
B. Finding new solutions to problems
C. Implementing new business ideas
D. Coming up with new business ideas (2 marks)

31. Identify a factor that could determine the success of a new product in the market.

A. Competitors’ knowledge of the product
B. Customers’ perceived risk of the product
C. Quantity of the product produced and sold
D. Compatibility with customer’s values (2 marks)

32. Which of the following could lead to failure of a new venture?

A. Compliance with legal requirements
B. Failure to differentiate the products
C. Mass production of goods and services
D. Termination of the business life-cycle (2 marks)

33. What role is played by business incubators?

A. Enhance capacity of entrepreneurs
B. Promote business competition
C. Generation of new business ideas
D. Allow entrepreneurs to use their brands (2 marks)

34. Which intellectual property rights protect computer software programs against infringement?

A. Patents
B. Trademarks
C. Copyrights
D. Trade secrets (2 marks)

35. Which of the following could contribute to the success of a brainstorming session?

A. Evaluate every idea
B. Limit number of ideas
C. Involve a large group
D. Allow wild ideas (2 marks)

36. What term explains owner’s personal investment in a business?

A. Retained earnings
B. Venture capital
C. Start-up capital
D. Equity capital (2 marks)

37. Which of the following is a benefit that could accrue to an entrepreneur from using debt finance?

A. No restrictions imposed
B. Retention of control
C. Payment is mandatory
D. It is a permanent source (2 marks)

38. Identify a reason that makes a business plan important to an entrepreneur?

A. Increases the market share of a business
B. Increases demand of goods and services
C. Helps deal with uncertainties that arise
D. Helps in maintaining financial records (2 marks)

39. Which component of a business plan should be written last?

A. Executive summary
B. Financial plan
C. Human resource plan
D. Operations plan (2 marks)

40. Why should an entrepreneur arrive early during an oral presentation of a business plan?

A. To avoid anxiety
B. Rehearse adequately
C. Develop visual aids
D. To impress investors (2 marks)

41. Identify an advantage associated with sole proprietorships?

A. Limited liability
B. Quality decisions
C. Unlimited life
D. Flexibility (2 marks)

42. Which form of business organisation suffers from double taxation?

A. Partnership
B. Joint venture
C. Company
D. Cooperative (2 marks)

43. Identify a restriction that a franchisor could impose on a franchisee?

A. Amount of profit to be generated
B. Business methods and standards
C. Use of franchisor’s brand name
D. Training facilities and fees (2 marks)

44. Which of the following is a challenge of buying an existing business?

A. No established suppliers and employees
B. A lot of time needed to launch the business
C. Change and innovation are hard to implement
D. It is difficult to attract financing from lenders (2 marks)

45. Which of the following is a requirement of an effective market segment?

A. Substantial
B. Ethical
C. Reputable
D. Equitable (2 marks)

46. Which of the following describes undifferentiated marketing?

A. Micromarketing
B. Niche marketing
C. Segmented marketing
D. Mass marketing (2 marks)

47. Which of the following is a tool that could facilitate product positioning?

A. Competitors
B. Demand
C. Slogan
D. Employees (2 marks)

48. Identify the importance of insurance to an entrepreneur?

A. Risk avoidance.
B. Risk transfer
C. Risk prevention
D. Risk elimination (2 marks)

49. Identify a way in which an entrepreneur could demonstrate ethical business practices.

A. Wide distribution of goods
B. Concern for the environment
C. High sales and business growth
D. Selling goods at lower prices (2 marks)

50. Which of the following is a use of artificial intelligence in business?

A. Predicting customer preferences
B. Ensuring supply of goods to customers
C. Reduce the level of customer service
D. Reduce customer engagement (2 marks)

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