PRINCIPLES OF ENTREPRENEURSHIP AND MANAGEMENT AUGUST 2022 PAST PAPER

MONDAY: 1 August 2022.        Morning paper.        Time Allowed: 2 hours.

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

1. What name is given to the type of entrepreneurship that involves identifying a promising business and taking the initiative to acquire it?
A. Researcher
B. Hustler
C. Buyer
D. Innovative     (2 mark)

2. ________________ is an indicator of a good business idea.
A. High competition
B. Good market scope
C. More resource requirement
D. High government revenue       (2 mark)

3. What is the name given to the process of building a business with minimal or no extra capital?
A. Informal financing
B. Micro financing
C. Bootstrapping
D. Crowd funding         (2 mark)

4. Which of the following is NOT a factor that an entrepreneur could consider while choosing a business location?
A. Entrepreneur’s skills
B. Security
C. Potential for growth
D. Accessibility           (2 marks)

5. Intrapreneurship also refers to___________________________?
A. Corporate entrepreneurship
B. Internal entrepreneurship
C. Business entrepreneurship
D. Innovative entrepreneurship    (2 marks)

6. Which one of the following is a challenge faced by entrepreneurs in your country.
A. Low interest rates
B. Unregulated competition
C. Supportive government policies
D. Lack of employment     (2 marks)

7. _________________ is a method of generating new ideas using suggested problems of known products.
A. Brainstorming problems
B. Focus groups problem solving method
C. Creative problem solving
D. Problem inventory analysis    (2 marks)

8. Why would an entrepreneur opt to buy an existing business instead of starting a new one?
A. Lower cost of starting a business
B. Ability to introduce a new product
C. Established relationship with suppliers
D. Support is assured by previous owners     (2 marks)

9. Which of the following is a limitation of equity finance?
A. Loss of control
B. Lack of credit worthiness
C. Money has to be repaid back
D. High interest rates          (2 marks)

10. What term is used to refer to all permits and licences that one must obtain before being allowed to operate a business in your country?
A. Government requirements
B. Statutory requirements
C. Government policy
D. Business requirements       (2 marks)

11. Which of the following statements is NOT true about an entrepreneur?
A. Is a catalyst of economic change.
B. Identifies a business opportunity.
C. Takes calculated risks.
D. Success depends on luck.    (2 marks)

12. Which of the following is NOT a factor to consider while choosing a business incubator?
A. Success rate.
B. Quality of services.
C. Availability of market.
D. Policies and procedures.    (2 marks)

13. The following are the benefits that a franchisee gains from a franchisor EXCEPT?
A. Training.
B. Brand name.
C. Product or service.
D. Profit guarantee.      (2 marks)

14. Venture capital is a source of ____________________ finance.
A. Debt
B. Equity
C. Personal
D. Micro          (2 marks)

15. Which of the following is NOT a reason for ensuring customer satisfaction?
A. Customer attraction
B. Customer experience
C. Customer retention
D. Customers to do one time purchase     (2 marks)

16. Which of the following statements is TRUE about an imitating entrepreneur?
A. They learn from mistakes of others to make their products and services better
B. They start small and grow their business with hard work rather than capital
C. They do as much research as possible before launching a product or service in the market
D. They constantly come up with new ideas and turn them into profitable ventures        (2 marks)

17. Why is it important to carry out competitors’ analysis while writing a business plan?
A. To evaluate the size of their businesses
B. To know what kind of product they sell
C. To determine their tastes and preferences
D. To determine their strengths and weaknesses         (2 marks)

18. ________________ is a person who initiates, creates and manages a new business.
A. A leader
B. A professional
C. An entrepreneur
D. A manager             (2 marks)

19. Which type of entrepreneur utilises a chance to introduce a new technique or a new product?
A. Fabian entrepreneurs
B. Innovative entrepreneurs
C. Researchers
D. Businessmen         (2 marks)

20. Which of the following behaviour, is not associated with successful entrepreneur?
A. Continuous innovation and urgency
B. Production as per customers’ requirements
C. Research and development
D. Running the business without planning       (2 marks)

21. Which of the following is NOT a source of ideas for an entrepreneur?
A. Imported products
B. Emerging technologies
C. Cost of the project
D. Product profile        (2 marks)

22. A business plan is important for all of the following reasons EXCEPT?
A. It enables the business owners to systematically think through each aspect of the new venture.
B. It gives an assurance to lenders and investors that they will earn a decent return.
C. It is a selling document that enables a company to present itself to potential suppliers and business partners.
D. It provides an investor with something to react to           (2 marks)

23. Which of the following is NOT a characteristic of entrepreneur?
A. Managerial training
B. Creativity
C. Innovation
D. Risk taking            (2 marks)

24. Which of the following statements BEST describes the term leadership?
A. Managing human resources
B. Monitoring performance
C. Getting things done through people
D. Influencing the behavior of others          (2 marks)

25. What stages of the business life cycle are sales the lowest?
A. Innovation
B. Stabilisation
C. Idea generation
D. Start-up         (2 marks)

26. What name is given to the role of a manager that involves dealing with people outside the organisation?
A. Monitor role
B. Entrepreneurial role
C. Liaison role
D. Figurehead role           (2 marks)

27. Identify the MAIN reason why planning is important in an organisation.
A. Helps in specialisation
B. Defines the organisation structure
C. Gives a sense of direction
D. Helps in training new employees         (2 marks)

28. Which level of management makes up the smallest group of managers in an organisation?
A. Top level
B. Middle level
C. Intermediate level
D. Lower level        (2 marks)

29. Which management skills would a manager require MOST while resolving conflict among employees?
A. Conceptual skills
B. Interpersonal skills
C. Strategic thinking skills
D. Delegation skills          (2 marks)

30. Identify the MAIN challenge that an organisation could face in the process of recruiting suitable employees?
A. Inability to attract the right candidates
B. Inappropriate media to advertise vacancies
C. Lack of an interview panel
D. Failure to induct employees        (2 marks)

31. Which of the following is a purpose of the organising function of management?
A. Facilitate coordination
B. Set goals
C. Performance appraisal
D. Motivate staff             (2 marks)

32. Who among the following is NOT an operational level manager?
A. Foreman
B. Supervisor
C. Chief Executive Officer
D. Superintendent         (2 marks)

33. Identify the skills a manager would require to choose amongst alternative courses of action.
A. Leadership skills
B. Communication skills
C. Operating skills
D. Decision-making skills          (2 marks)

34. Which of the following is not a challenge for an entrepreneur?
A. Choosing the product or service to sell in the market
B. Managing the cash flow of their business
C. Recruiting new employees
D. Formulating rules and regulations relating to conducting entrepreneurship in their country    (2 marks)

35. Who should prepare a firm’s business plan?
A. Entrepreneur
B. Accountant
C. Engineer
D. Marketer       (2 marks)

36. What is the name given to the process of creating something new?
A. Management
B. Business
C. Creative flexibility
D. Innovation        (2 marks)

37. What is the purpose of a feasibility study while preparing to start a new venture?
A. Estimate sales
B. Exploring for potential customers
C. To understand if there are any barriers to success
D. To market the products         (2 marks)

38. What are the three interpersonal roles of managers?
A. Figurehead, organiser and spokesman
B. Communicator, organiser and spokesman
C. Director, coordinator and disseminator
D. Spokesman, leader and coordinator          (2 marks)

39. Which of the following is NOT a recognised skill of management?
A. Technical skills
B. Writing skills
C. Conceptual skills
D. Human skills           (2 marks)

40. What is the name given to the management function that involves determining whether the quality of work is up to standard?
A. Leading
B. Controlling
C. Organising
D. Planning            (2 marks)

41. When would cross referencing be important while filing office documents?
A. When there are so many records to be filed.
B. In case documents require frequent retrieval
C. To keep documents away from unauthorised users
D. In case a document can be filed under more than one heading         (2 marks)

42. The following are components of a job description and a job specification:
(i) Job title
(ii) Working environment
(iii) Education and training
(iv) Tasks to be performed
(v) Skills
(vi) Personality
Which of the following sets relate to a job specification?
A. (ii), (v), (vi)
B. (iii), (v), (vi)
C. (i), (iii), (v)
D. (i), (ii), (iv)             (2 marks)

43. Management skills applies to managers at which level?
A. All levels in an organisation
B. Top level in an organisation
C. Executive level in an organisation
D. Middle level in an organisation             (2 marks)

44. Which management function entails grouping of jobs?
A. Controlling
B. Planning
C. Organising
D. Directing             (2 marks)

45. Which type of decision making is carried out by lower level management and deals with specific daily tasks?
A. Mid-level decision making
B. Administrative decision making
C. Operational decision making
D. Programmed decision making          (2 marks)

46. What is the goal of an entrepreneur during the start-up stage of a business lifecycle?
A. Enhance competitive edge
B. Growth
C. Survive
D. Enhance reputation                   (2 marks)

47. Which of the following is a benefit of electronic filing systems?
A. Viruses can attack the computer
B. Staff training is needed
C. Staff need specialised training to use the system
D. It reduces the number of staff that must be hired to manage records          (2 marks)

48. Which of the following is not an important aspect of employee involvement?
A. Employee empowerment
B. Teamwork
C. Keeping employee morale down
D. Employee motivation            (2 marks)

49. Which of the following is a positive outcome of conflict?
A. Stimulates creativity
B. Strains relationships
C. Promotes resistance
D. Encourages poor performance           (2 marks)

50. Which of the following is NOT an intervention that management could put in place to prevent health related issues in an organisation?
A. Proper furniture
B. Adequate stationery
C. Ventilation
D. Noise control               (2 marks)

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