OPPORTUNITY – CENTRED ENTREPRENEURSHIP AUGUST 2022 PAST PAPER

THURSDAY: 4 August 2022. Morning paper. Time Allowed: 2 hours.

Answer ALL questions by indicating A, B, C, or D representing the correct answer. Each question is allocated two (2) marks.

1. Which of these is not a type of entrepreneurship?
A. Small business entrepreneurship
B. Scalable entrepreneurship
C. Large scale entrepreneurship
D. Extrapreneurship (2 marks)

2. According to Schumpeter, innovative entrepreneurs would:
A. Rarely thrive in the market
B. Not survive and disappear from the market.
C. Get absorbed within larger innovative businesses
D. Get absorbed within non-innovative businesses (2 marks)

3. Which of these theories involve taking a moderate amount of risk as a function of skill and not chance?
A. Need for achievement
B. Need for affiliation
C. Need for authority
D. Need for independence (2 marks)

4. Which of these is not a category of external forces that affects a business?
A. Competitive forces
B. Technological forces.
C. Economic forces
D. Socio-economic forces (2 marks)

5. Which among these is a money manager who is involved in making risk investments from equity capital with the objective of gaining better returns?
A. Entrepreneur
B. Businessperson
C. Buyer
D. Venture capitalist (2 marks)

6. Which of these is the first activity of a new business?
A. Departure point
B. Goal Orientation
C. Business skill development
D. Marketing the products. (2 marks)

7. The process of creating something new is called:
A. Creative flexibility
B. Management
C. Business
D. Innovation (2 marks)

8. Which of these is also known as corporate venturing?
A. Intrapreneurship
B. Mergers
C. Entrepreneurship
D. Acquisition (2 marks)

9. What is the purpose of a feasibility study for starting a new venture?
A. Exploring for potential customers
B. Estimate sales
C. Determining viability of a venture
D. To segment the market. (2 marks)

10. In which stage does the business expand by way of opening its branches?
A. Start up stage
B. Growth stage
C. Expansion stage
D. Maturity stage (2 marks)

11. The ways entrepreneurs make decisions is referred to as:
A. Entrepreneurial domain
B. Reverse brainstorming
C. Heuristics
D. Focus (2 marks)

12. Which of these is not a characteristic of an attractive business opportunity?
A. Viable
B. Large
C. Unique
D. Competitive (2 marks)

13. Which of the following is not a characteristic of entrepreneurs?
A. Risk tolerance.
B. Perseverance.
C. Curiosity.
D. Risk-averse. (2 marks)

14. Choose the definition of an opportunity from the following:
A. An avenue of activity that is actionable and can provide value.
B. Need or desire for a product.
C. A business undertaking that is risky.
D. Operating a business. (2 marks)

15. ___________________ decisions are concerned with policy matters and they influence the goals and objectives of a business venture:
A. Routine decisions
B. Strategic decisions
C. Organisational decisions
D. Personal decisions (2 marks)

16. The following are techniques of generating business ideas except?
A. Brainstorming
B. Focus group
C. Heuristic method
D. Observation (2 marks)

17. An entrepreneur who is the owner of more than one business is called:
A. Portfolio Entrepreneur
B. Intrapreneur
C. Corporate Entrepreneur
D. Fabian Entrepreneur. (2 marks)

18. Entrepreneurial Opportunities are defined as:
A. Situations in which new goods, services, raw materials and organising methods can be sold at a higher price than their production cost.
B. new market entry through entrepreneur action.
C. The entrepreneur’s mental processes in deciding whether or not to act on a potential opportunity.
D. a feasibility assessment. (2 marks)

19. What is opportunity cost?
A. Going with your first option.
B. Going with the easiest option
C. The potential gain lost by choosing an alternative course of action.
D. Going with the best option. (2 marks)

20. Which of the following myths is associated with entrepreneurs?
A. Entrepreneurs are born not made
B. Entrepreneurs are doers and not thinkers
C. Entrepreneurs are gamblers
D. Entrepreneurs are lazy. (2 marks)

21. Which of the following is not a strategy to expand new products into new markets?
A. Price reduction
B. Wide distribution channels
C. Introducing wide range of products
D. Offering quality products (2 marks)

22. Which of the following is not a trait of entrepreneurship leadership?
A. Passion
B. Decisiveness
C. Friendship
E. Creativity and innovation (2 marks)

23. Which of the following is not a common risk that face business ventures?
A. Financial
B. Technological risks
C. Psychological risks
D. Operational risk (2 marks)

24. Which of the following is not a factor that influence access to finance in the context of innovative entrepreneurship?
A. Business Angels
B. Availability of collateral
C. Business capitalization
D. Conditions of financing (2 marks)

25. Which of the following is not an essential quality of an opportunity?
A. Attractive
B. Timely
C. Durable
D. Inappropriate. (2 marks)

26. People who start, operate and take risk in a business venture are called:
A. Aptitude
B. Employee
C. Entrepreneurs
D. Entrepreneurship (2 marks)

27. Ownership position of more than 50 per cent in a business is known as:
A. Minority Interest
B. Joint Venture
C. Majority Interest
D. Ordinary Shareholding. (2 marks)

28. Which of the following is not a reason to become an entrepreneur?
A. Desire to change the world.
B. To embrace an opportunity.
C. Desire to become rich.
D. Creativity does not fit the corporate world. (2 marks)

29. Trademarks relate to ___________________.
A. Practice and knowledge acquired through experience
B. The protection of proprietary information of commercial value
C. The right to reproduce ones own original work
D. Brand identity (2 marks)

30. ___________________ DOES NOT provide an individual with the motivation to start a new business venture?
A. The financial rewards
B. A desire to be independent.
C. Risk-taking
D. Desire for security and stability. (2 marks)

31. Which industrial sector tends to naturally promote small-scale businesses and entrepreneurship, and generally has lower barriers to market entry?
A. Service.
B. Manufacturing.
C. Distribution.
D. Agriculture. (2 marks)

32. Which of the following is an approach to identify opportunities?
A. Finding gaps in the market place.
B. Observation.
C. Market segmentation.
D. Use of questionnaire. (2 marks)

33. Which of the following is not a reason for business failure?
A. Lack of market research.
B. Poor financial control
C. Poor management.
D. Maximisation of resources available. (2 marks)

34. The use of informal networks by entrepreneurs to gather information is known as ___________________.
A. Secondary research.
B. Entrepreneurial networking.
C. Informal parameters.
D. Marketing (2 marks)

35. Good sources of information for an entrepreneur about competitors can be obtained from the following EXCEPT:

A. Websites.
B. Product information leaflets.
C. Company reports and published accounts.
D. Employees. (2 marks)

36. Innovation can best be defined as___________________.
A. The successful exploitation of new ideas.
B. The generation of new ideas.
C. The introduction of new products and services that are of value to customers.
D. The opposite of creativity. (2 marks)

37. Which of the following is a recognised disadvantage of setting up a business as a start-up as compared with other routes to market entry?
A. Less satisfaction of the owners.
B. Less help from various agencies.
C. There are more funds required.
D. There is a high failure rate. (2 marks)

38. Choose the most suitable definition of a patent.
A. An exclusive right granted for an invention.
B. Any word, phrase or symbol that identifies certain goods or services.
C. It protects original works of authorship.
D. An improvement of an existing product. (2 marks)

39. The following are internal entrepreneurs’ motivators except ___________________.
A. Need for achievement
B. Money
C. Need for independence
D. Passion (2 marks)

40. Which of the following is not an external entrepreneurial motivator?
A. Expanding market
B. Attractive business opportunity
C. Need for achievement
D. High profits (2 marks)

41. Define family entrepreneurship.
A. A business inherited by children.
B. A business actively owned, operated and managed by two or more members of the family.
C. A business where many family members work as employees.
D. The family owns less than 25% of shares. (2 marks)

42. To provide financial assistance to entrepreneurs the government has set up a number of___________________.
A. Financial advisors.
B. Financial intermediaries.
C. Industrial estates.
D. Financial institutions (2 marks)

43. Which of the following is not part of 5Ps that define entrepreneurial behavior?
A. Passion
B. Packaging
C. Persistent
D. Perseverance (2 marks)

44. ___________________ can be defined as a specifically evolved work plan to achieve a specific objective within a specific period of time
A. Idea generation.
B. Opportunity Scanning.
C. Project.
D. Strategy (2 marks)

45. Define an enterprise.
A. A profit business started and run by an entrepreneur.
B. New ideas within the business.
C. The person who provides capital.
D. The regulator of businesses. (2 marks)

46. Which of the following is not a characteristics of a business opportunity?
A. Matches individual skills.
B. High start-up costs.
C. Demand.
D. Return on investment. (2 marks)

47. What can be defined as an attractive project idea that an entrepreneur accepts as a basis for his investment decision?
A. Possibility
B. Business
C. Business Opportunity
D. Business idea (2 marks)

48. Ownership capital is also known as?
A. Debt
B. Equity
C. Loan
D. Mortgage (2 marks)

49. Identify a challenge for entrepreneurs.
A. Finances can be accessed.
B. Qualified employees are easy to get.
C. Finding customers.
D. One can manage time. (2 marks)

50. Which of the following is not a quality of a successful entrepreneur as specified by Mc Clelland?
A. He is endowed with unusual creativeness
B. He has a high degree of ambition
C. He is enriched by a high propensity
D. He has also a strong need for achievement (2 marks)

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