PRINCIPLES OF ENTREPRENEURSHIP AND MANAGEMENT 2020 PAST PAPER

MONDAY:  23 November 2020.                                                                                                                       Time: Allowed: 3 hours.

Answer any THREE questions in SECTION I and any TWO questions in SECTION II. ALL questions carry equal marks.

SECTION I

QUESTION ONE

1.           Outline five reasons why it is important for an entrepreneur to prepare a business plan.         (5 marks)

2.           Identify seven sources of business ideas for entrepreneurs.                                                                (7 marks)

3.           Explain four principles of innovation in entrepreneurship.     (4 marks)

Highlight four sources of innovation for entrepreneurs.          (4 marks)

(Total: 20 marks)

 

QUESTION TWO

1.          Discuss five challenges faced by entrepreneurs in your country.                (10 marks)

2.          Highlight five disadvantages of buying an existing business.  (5 marks)

3.          Explain five reasons why an entrepreneur would set customer credit limits.       (5 marks)

(Total: 20 marks)

 

QUESTION THREE

1.           Explain the following forms of business organisations:

Sole proprietorship.         (2 marks)

A partnership.              (2 marks)

A public limited company.                 (2 marks)

A private limited company.                 (2 marks)

2.          Highlight six disadvantages of sole proprietorships.                                                                                                            (6 marks)

3.           Identify six sources of funds for entrepreneurs.                                                                                                                    (6 marks)

(Total: 20 marks)

 

QUESTION FOUR

1.         Define the term “goodwill”.              (2 marks)

Explain four benefits of creating goodwill with customers.                (8 marks)

2.         Define the term “e-commerce”.              (2 marks)

Explain four advantages of e-commerce.                (8 marks)

(Total: 20 marks)

 

SECTION II

QUESTION FIVE

1.           Explain the following principles of management:

Division of work.                       (2 marks)

Discipline.                                   (2 marks)

Unity of direction.                  (2 marks)

Scalar chain.                       (2 marks)

Stability of tenure.                      (2 marks)

2.          Identify five causes of inefficient filing in an organisation.                                                                                    (5 marks)

3.          Summarise five functions performed by middle level management.                                                                    (5 marks)

(Total: 20 marks)

 

QUESTION SIX

1.           Propose six measures that management of an organisation could take to ensure the safety of employees.                   (6 marks)

2.          Outline six positive consequences of conflict in an organisation.                                                                                         (6 marks)

3.           Analyse four reasons why there has been a growing interest in corporate governance practice both in the private and public sectors.                                                                                                                                                                                                  (8 marks)

(Total: 20 marks)

 

QUESTION SEVEN

1.          Outline seven roles of a filing clerk.        (7 marks)

2.          Explain five benefits of communicating decisions to employees.                                                                               (5 marks)

3.          Discuss four risks faced by Small and Medium Enterprises (SMEs).   (8 marks)

(Total: 20 marks)