November 2021. Time Allowed: Two Hours
This paper has three sections. Section One has forty (40) multiple choice questions. Section Two has twenty (20) short response questions. Section Three has one (1) essay question. All questions are compulsory. The marks allocated to each question are shown at the end of the question.
1. Entrepreneurship may be defined as; (1 mark)
A. Starting a business enterprise
B. The process of undertaking business
C. Process of creating incremental wealth
D. Process of gathering resources.
2. The entrepreneurial process of identifying and evaluating the business opportunity involves; (1 mark)
A. Writing a business proposal plan
B. Scanning the business environment
C. Seeking business finances
D. Registering the business name.
3. The harvesting stage of the entrepreneurial process involves: (1 mark)
A. Writing a business analysis report
B. Consulting an entrepreneur
C. Choosing an exit strategy
D. Getting a return on investment.
4. Corporate entrepreneurship may be defined as; (1 mark)
A. Changing an organisation set up
B. Re-structuring the organisation’s management structure
C. Engaging in external marketing in unique ways
D. Entrepreneurship within an existing organisation.
5. Well established organisations can promote Intrapreneurship by; (1 mark)
A. Establishing rigid management organisation structures
B. Applying a long and complex organisation structure
C. Providing a working environment
D. Penalising project and product failures.
6. Social entrepreneurship is a form of entrepreneurship that; (1 mark)
A. Focuses on social environments
B. Encourages individuals to make profits in an innovative way
C. Supplies goods and services to the society
D. Tackles social challenges in an innovative way.
7. Entrepreneurship contributes to economic growth of the country through: (1 mark)
A. Discussions and reports about the economy.
B. Widening the economic gap in the country.
C. Creation of high growth enterprises.
D. Working on the country’s economic policies.
8. Select the major characteristic of an entrepreneurial firm; (1 mark)
A. Continuous production of goods and services
B. Bringing new products and services to the market
C. It is a lifestyle firm
D. Operated by individuals who are motivated by money.
9. The corporate entrepreneurship strategy process is composed of: (1 mark)
A. External environment conditions
B. Innovative strategic vision
C. Competitive capability
D. Strategic repositioning.
10. Select one principle applied by successful innovative companies. (1 mark)
A. A broad organisational vision
B. Use of a single management approach
C. Small, flat organizational structure with small project teams.
D. A complex market approach.
11. Select a common source of entrepreneurial stress. (1 mark)
A. Environmental stress
B. Business cycles
C. Political environment
D. Need to achieve.
12. Entrepreneurs enhance their business networks in order to; (1 mark)
A. Increase prices of the products and services.
B. Become popular
C. To grow their businesses
D. Earn higher returns in their investments.
13. An entrepreneur may be best defined as; (1 mark)
A. Young and energetic
B. Gamblers who take big risks
C. A catalyst for economic growth
D. Genetically predisposed to be successful.
14. Identify one characteristic associated with entrepreneurial ego that may have destructive implications on the business. (1 mark)
A. Sense of trust
B. Desire for success
C. Overbearing need for control
D. Unrealistic pessimism.
15. Identify one characteristic not exhibited by successful entrepreneurs in general. (1 mark)
A. Independence
B. Reactive
C. Ambitious
D. Flexible.
16. Which of the following manifest needs was not proposed by McClelland. (1 mark)
A. Need for affiliation
B. Need for affection
C. Need for power
D. Need for achievement.
17. Identify the entrepreneurial motivator that is not classified under compelling factors. (1 mark)
A. Unemployment
B. Self-actualisation
C. Dissatisfaction with job
D. Utilisation of knowledge and skills.
18. Choose one characteristic exhibited by an entrepreneur that may have positive implications to the businesses. (1 mark) A. Sense of trust
B. Overriding desire for success
C. Overbearing need for control
D. Unrealistic optimism.
19. Select the theory that is not classified as an entrepreneurship theory. (1 mark)
A. Economic theories
B. Psychological theories
C. Stakeholders’ theories
D. Sociological theories.
20. Based on Schumpeterian theory of entrepreneurship; innovation is defined as; (1 mark)
A. Coming up with new ideas
B. New products and services
C. Technical work of invention
D. Application of new things into practical and efficient use.
21. Entrepreneurship sociological theories are based on; (1 mark)
A. Political values
B. Socio-cultural values
C. Environmental considerations
D. Technological development.
22. Select one factor not considered under the Integrative approach to entrepreneurship. (1 mark)
A. The organisation
B. The environmental opportunities
C. The individual entrepreneur
D. The financial and nonfinancial resources.
23. Identify the quality that does not define a viable business opportunity. (1 mark)
A. Durability
B. Timeliness
C. An idea/thought
D. Attractiveness.
24. Select the factor that does not contribute to the recognition of a business opportunity. (1 mark)
A. Observing trends
B. Solving a problem
C. Finding gaps in the market place
D. Social discrimination and exclusion.
25. Identify the personal characteristic that may hinder business opportunity recognition. (1 mark)
A. Prior business experience
B. Business social networks
C. Entrepreneurial awareness
D. Inability to solve problems.
26. Select a rule that is not observed when conducting a formal brainstorming session. (1 mark)
A. No criticism is allowed
B. Freewheeling
C. Detailed analytical reasoning
D. Leapfrogging.
27. Choose the behaviour that encourages creativity. (1 mark)
A. Rigid organisational structure
B. Investing in human resource
C. Retaining employees in same job
D. Penalising failed ideas.
28. Identify the behaviour that discourages creativity. (1 mark)
A. Listening actively
B. Being pessimistic, judgmental and critical
C. Protecting honest mistakes when learning
D. Treating employees as equals.
29. Select an environmental trend that does not suggest business or product gaps. (1 mark)
A. Technological advances
B. Economic forces
C. Political instability
D. Social forces.
30. Entrepreneurs choose business opportunities which have the qualities shown below. Select the quality that entrepreneurs may not consider. (1 mark)
A. Opportunity that adds value to customers
B. An open window of opportunity
C. Timeliness of the opportunity
D. Diversified market.
31. A business plan may be defined as; (1 mark)
A. An entrepreneur’s expression of interest
B. A list of business ideas
C. Entrepreneurs’ diary of business activities
D. A document on proposed venture.
32. Identify a private form of business organisation from the list below. (1 mark)
A. Partnerships
B. Cooperatives
C. Public social benefits organisations
D. Savings and loans cooperative societies.
33. Select the main disadvantage of a public limited company. (1 mark)
A. Unlimited liability
B. Loss of direct control by the shareholders
C. Responsibilities and risks are shared on agreed proportions
D. Possibility of raising large sums of money.
34. Identify the major difference between sole proprietorship and partnerships. (1 mark)
A. Perpetual continuity of business
B. Unlimited liability
C. Full control of the business by the owners
D. Shared responsibilities.
35. Identify the document that is presented to the registrar of companies during registration of a company. (1 mark) A. Audited financial statements
B. Memorandum of Association
C. A deed
D. An environmental audit reports.
36. Identify a major similarity between a general partnership and a private limited company. (1 mark)
A. Unlimited liability
B. Continuity of business
C. Low liquidity of investment
D. Management control.
37. Select the main function of the articles of association. (1 mark)
A. State the liability of members
B. Show the objectives of the company
C. Guide the internal management of company
D. Provide a list of directors.
38. Identify the main purpose of a memorandum of association. (1 mark)
A. Show the list of shares offered
B. Show the class and rights of shareholders
C. Show the company’s broad objectives
D. State the qualifications and duties of the directors.
39. Select the circumstance in which a sole proprietorship is regarded as a favorable form of ownership., (1 mark) A. Where owner prefers autonomy
B. Where promptness is not required in decision making
C. Where personal attention is not an important aspect of business relationship
D. Where the market is broad and requires large capital investment.
40. Partnership deed may be defined as; (1 mark)
A. A document of capital appropriation
B. Articles of partnership stipulating the internal workings of the business
C. Document that allows transfer of shares
D. Document of transfer of assets.
(Total: 40 marks)
SECTION TWO
[40 MARKS] [1 HOUR]
You are advised not to exceed forty words in answering each question.
41. List two bootstrapping methods a start up restaurant business can utilise to ensure business success. (2 marks)
42. Define the term “venture capital”. (2 marks)
43. Explain the term “window of opportunity”. (2 marks)
44. Suggest two primary reasons why people become entrepreneurs. (2 marks)
45. Distinguish between creativity and innovation in entrepreneurship. (2 marks)
46. Define the term “corridor principle”. (2 marks)
47. Explain two reasons why corridor principle supports the fact that majority of business ideas are conceived at work. (2 marks) 48. Giving two examples, explain how “solving a problem” can create a business opportunity”. (2 marks)
49. Identify two areas that a properly executed feasibility analysis explores. (2 marks)
50. Identify two challenges faced by an entrepreneur at the start up stage of the business. (2 marks)
51. Distinguish between a product franchise and a business format franchise. (2 marks)
52. Identify two benefits that accrue to an accounting firm that operates in form of a partnership. (2 marks)
53. Highlight two qualities to look for in a prospective Franchisee. (2 marks)
54. Explain how a manager can promote intrapreneurship. (2 marks)
55. Describe two qualities of an opportunistic entrepreneur. (2 marks)
56. Explain the challenges a prospective entrepreneur experiences at the idea generation stage. (2 marks)
57. Describe two factors that an entrepreneur whose business is at the stabilisation stage of business life cycle can consider in order to grow. (2 marks)
58. Explain the characteristics of a business that is in the decline stage of business life cycle. (2 marks)
59. Explain two innovative strategies an entrepreneur may consider to apply at the business decline stage of business life cycle. (2 marks)
60. Explain the meaning of “generation of a new entry opportunity”. (2 marks)
(Total: 40 marks)
SECTION THREE
[20 MARKS] [20 MINUTES]
61. Bizz game is the brainchild of four trainees in accounting who want to spark student’s interest in running a business. Their aim is to create a social enterprise that will help promote youth entrepreneurship more widely. In 2020, the team launched Bizzgame, an interactive business simulation game. Players increase their company’s valuation through strategic decisions on buying goods, marketing, sales development and logistics management.
Students were initially reluctant to take up the challenge but several months of further trial and enhancements saw the game popularity increase among other trainees. Bizz game is gaining a following in the educational establishments across the country. The take-up has been enhanced by a series of Bizz game Youth challenge competitions. Although Bizz game has an appeal among consumers as the “new board game in town” the team has stuck to its original plan of promoting youth entrepreneurship. An online portal for training institutions and even a computer game version is being developed.
Required:
(a) Define the term “social enterprise”. (2 marks)
(b) Give two reasons that could have made the trainees come up with the idea of “Bizzgame”. (2 marks)
(c) List three benefits of running Bizzgame as a social enterprise. (3 marks)
(d) State three methods that the team can use to promote Bizzgame in other training institutions. (3 marks)
(e) Give five challenges that the four undergraduates are likely to encounter as they promote the Bizzgame. (5 marks)
(f) Explain three objectives achieved through playing the Bizzgame. (3 marks)
(g) Explain the plan that the four trainees have for the growth of Bizzgame. (2 marks)
(Total: 20 marks)
