PRINCIPLES OF ENTREPRENEURSHIP AND MANAGEMENT DECEMBER 2021 PAST PAPER

WEDNESDAY: 15 December 2021.                                                                                                              Time Allowed: 3 hours.

This paper has three sections.  SECTION 1 has forty (40) multiple choice questions. SECTION 11 has twenty (20) short response questions.  SECTION III has one (1) essay question.  All questions are compulsory.  Marks allocated to each question are shown at the end of the question.

SECTION I – 40 MARKS

  1. Which of the following BEST explains the practice of empowering employees by valuing their ideas and converting them into profitable undertakings?

(a)            Entrepreneurship.

(b)            Intrapreneurship.

(c)            Creativity.

(d)            Innovation.                                                                                                                                                            ( 1 mark)

 

  1. Identify one method of generating new business ideas.

(a)            Brainstorming.

(b)           Screening.

(c)            Newspapers.

(d)            Hobbies.                                                                                                                                                                ( 1 mark)

 

  1. Which one of the following is NOT a factor to consider while choosing a business entry option?

(a)            Government regulation.

(b)            Commencement date.

(c)            Areas of operation.

(d)            Risks involved.                                                                                                                                                      ( 1 mark)

 

  1. Which of the following is a limitation of debt finance?

(a)            It is a short-term finance.

(b)            Only available in small quantities.

(c)            It dilutes ownership.

(d)            Interest is a legal obligation.                                                                                                                                  (1 mark)

 

  1. Identify one legal requirement for a start-up business.

(a)            Accessibility to customers.

(b)           Enough capital.

(c)           Business name.

(d)            Qualified employees.                                                                                                                                             (1 mark)

 

  1. Which of the following is a personal characteristic of a successful entrepreneur?

(a)            Dependent.

(b)            Fears risk.

(c)            Intolerant.

(d)            Confident.                                                                                                                                                              (1 mark)

 

  1. Which one of the following BEST explains the process of helping small start-up businesses to  become self-sustaining?

(a)            Business incubation.

(b)            Business angels.

(c)            Business training.

(d)            Business finance.                                                                                                                                                  ( 1 mark)

 

  1. Which of the following is NOT a component of the marketing mix?

(a)            People.

(b)            Profit.

(c)            Place.

(d)            Physical evidence.                                                                                                                                                 (1 mark)

 

Identify one type of entrepreneur.

(a)            Manager.

(b)           Networker.

(c)            Drone.

(d)            Risk taker.                                                                                                                                                             (1 mark)

 

  1. Which of the following BEST explains a business model where successful entrepreneurs allow other businesses to market goods and services under their brand names?

(a)            Joint venture.

(b)            Partnership.

(c)            Cooperative.

(d)            Franchising.                                                                                                                                                          ( 1 mark)

 

  1. Identify one reason that has led to the popularity of microfinance institutions in your country.

(a)            Accessible to low income earners.

(b)           Give small amounts of money.

(c)            Require security.

(d)            They are located near customers.                                                                                                                           (1 mark)

 

  1. Which statement best explains why it is important to create a schedule in the process of launching a new product?

(a)            Ensures customers are informed of the new product.

(b)            Ensures tasks are completed in time.

(c)            Ensures that the product is tested.

(d)            Ensures the product satisfies customers’ needs.                                                                                                    (1 mark)

 

  1. Which of the following is NOT a factor that an entrepreneur could consider while identifying a target market?

(a)            Size.

(b)           Competition.

(c)            Availability of buildings.

(d)            Income levels.                                                                                                                                                        ( 1 mark)

 

  1. Identify one factor that an entrepreneur could consider while choosing a business location.

(a)            Promotion of products.

(b)            Labour.

(c)            Business management.

(d)           Business plan.                                                                                                                                                       (1 mark)

 

  1. Which one of the following is a source of short-term finance?

(a)            Equity.

(b)            Debentures.

(c)            Bank overdraft.

(d)            Retained earnings.                                                                                                                                                 (1 mark)

 

  1. Identify one way that the government could promote entrepreneurship in your country.

(a)            Laws and regulations.

(b)           Corruption.

(c)            Buying from importers.

(d)            Building training institutions.                                                                                                                                ( 1 mark)

 

  1. Which one of the following is an objective of evaluating a business idea?

(a)            Ensure it is well known by the customers.

(b)           Ensure that is tested by customers.

(c)            Ensure that it is not against competitor’s expectations.

(d)           Ensure it is not against society’s expectations.                                                                                                       (1 mark)

 

  1. Identify one reason why an entrepreneur could choose to start a sole proprietorship form of business.

(a)           Limited liabilities.

(b)           Large capital.

(c)           High secrecy.

(d)           Sharing risks.                                                                                                                                                    (1 mark)

 

  1. Which one of the following is an objective of sending free samples to influencers before launching a new product?

(a)           They are likely to buy more products.

(b)          They have a lot of money to buy products.

(c)           They are likely to share the samples with others.

(d)          They are likely to share details with followers.                                                                                      (1 mark)

 

  1. Which one of the following BEST explains the art of getting things done through the efforts of other people?

(a)           Delegation.

(h)          Management.

(c)           Leadership.

(d)           Authority.                                                                                                                                                           ( 1 mark)

 

  1. Identify one role performed by lower level management.

(a)           Long-term planning.

(b)           Appointment of other managers.

(c)           Setting up the overall organisation’s goal.

(d)           Supervising operating employees.                                                                                                               (1 mark)

 

  1. Which one of the following BEST explains the management function of monitoring plans to ensure that they are being followed?

(a)           Controlling.

(b)           Motivation.

(c)           Co-ordination.

(d)           Evaluation.                                                                                                                                                         (1 mark)

 

  1. Identify one type of skill that a manager may require to effectively interact and work with other people.

(a)           Conceptual skills.

(b)           Interpersonal skills.

(c)           Management skills.

(d)           Strategic thinking skills.                                                                                                                                (1 mark)

 

  1. Which of the following is a characteristic of an efficient filing system?

(a)           Confidential.

(b)           Large.

(c)           Accessibility.

(d)           Authorised.                                                                                                                                                        (1 mark)

 

  1. Which of the following BEST explains the summary tasks, roles and responsibilities of a specific job in an organisation?

(a)           Job description.

(b)           Job specification.

(c)           Job enrichment.

(d)           Job analysis.                                                                                                                                                      (1 mark)

 

  1. Which of the following represents a decision that a manager may require to make at the start-up stage of a business?

(a)           Recruit more staff.

(b)           Diversification.

(c)           Business closure.

(d)           Location.                                                                                                                                                            (1 mark)

 

  1. Which of the following is NOT a technique that could be used to motivate employees?

(a)           Recognition.

(b)           Working conditions.

(c)           Job security.

(d)           Hiring employees.                                                                                                                                            ( 1 mark)

 

  1. Which of the following is NOT a reason for installing ventilations in office buildings?

(a)           Ensure health and safety of employees.

(b)           To comply with the law.

(c)           To ensure the building is secure.

(d)           To ensure air circulation.                                                                                                                              (1 mark)

 

  1. Identify one benefit that could accrue to an organisation from hiring the right employees.

(a)           Pay high salaries.

(b)           Easy to recruit.

(c)           Reduce workload.

(d)           Improved performance.                                                                                                                                 ( I mark)

 

  1. Identify the  basic  function  of management  that  involves  grouping  of jobs  and  assigning  authority  and responsibility to perform them.

(a)           Planning.

(b)           Organising.

(c)           Job enlargement.

(d)           Job rotation.                                                                                                                                                      ( I mark)

 

  1. Which of the following is a challenge associated with the stabilisation stage of a business life cycle?

(a)           Difficulties in attracting staff.

(b)           High cost of promoting the business.

(c)           Identifying opportunity for innovation.

(d)           Taking high risks.                                                                                                                                            ( 1 mark)

 

  1. Government can better help in forming new ventures by providing:

(a)           Finance.

(b)           Technology.

(c)           Infrastructure.

(d)           Funds.                                                                                                                                                                  ( 1 mark)

 

  1. Which of the following factor has allowed small companies to act like they are big ones?

(a)           Customers.

(b)           Competition.

(c)           Economic development.

(d)           Technology.                                                                                                                                                       ( I mark)

 

  1. Mary found out the reason her leg wear was not selling was due to its colour. What could be the best source of this information?

(a)           Supplier.

(b)          Retailer.

(c)           Social media.

(d)          Government bureau.                                                                                                                                        ( 1 mark)

 

  1. A typical inventor is usually

(a)           Highly creative and in love with the invention.

(b)          One that encourages change.

(c)           Willing to modify the invention.

(d)          Not enthusiastic.                                                                                                                                               (1 mark)

 

  1. Which of the following shows the process of creating something new?

(a)           Business model.

(b)          Design.

(c)           Creative flexibility.

(d)          Innovation.                                                                                                                                                         ( 1 mark)

 

  1. The activity which occurs when the new venture is started is called

(a)           Motivation.

(b)          Business skills.

(c)           Departure point.

(d)          Goal orientation.                                                                                                                                               (1 mark)

 

  1. Why should an entrepreneur do a feasibility study for starting a new venture?

(a)           To identify possible source of funds.

(b)          To see if there are possible barriers to success.

(c)           To estimate the expected sales.

(d)          To explore potential customers.                                                                                                                  (1 mark)

 

  1. Which of the following is a typical characteristic of most entrepreneurs?

(a)           Choose high risk ventures.

(b)          Choose low risk ventures.

(c)           Choose moderate (or calculated) risk ventures.

(d)          Choose no risk ventures.                                                                                                                               (1 mark)

 

  1. One of the disadvantages of a franchise business for a franchisee is

(a)           Lack of independence.

(b)          Franchise business typically have a high failure rate.

(c)           Lack of brand identity.

(d)          Training is not normally provided by the franchisor.                                                                           ( 1 mark)

 

SECTION II – 40 MARKS

In questions number 41 to 49, indicate whether the statement is True or False:

 

  1. Buying an existing business is always advantageous to an entrepreneur. (2 marks)

 

  1. The business description component of a business plan contains the key management staff (2 marks)

 

  1. Reduction of expenses is a bootstrapping technique. (2 marks)

 

  1. Hawking is a type of entrepreneurship. (2 marks)

 

  1. Imitating entrepreneurs do not have to invent anything new to make profit. (2 marks)

 

  1. All incoming mail should be opened in the mail room before they are delivered to the person concerned. (2 marks)

 

  1. All leaders are managers. (2 marks)

 

  1. All managers require decision making skills. (2 marks)

 

  1. Conflict in an organisation always leads to poor performance. (2 marks)

 

You are advised not to exceed forty words in answering questions number 50 to 60.

 

  1. Outline two benefits that an individual could achieve from becoming an entrepreneur. (2 marks)

 

  1. List two characteristics of a viable business idea. (2 marks)

 

  1. State two advantages of joint ventures. (2 marks)

 

  1. Highlight two reasons why an entrepreneur could prefer to finance a business using personal savings. (2 marks)

 

  1. List two product decisions that an entrepreneur could require to make while developing a marketing mix. (2 marks)

 

  1. Outline two disadvantages of running a business as a company. (2 marks)

 

  1. Highlight two factors that an entrepreneur could consider while choosing a source of finance. (2 marks)

 

  1. Outline two financial challenges faced by entrepreneurs in your country. (2 marks)

 

  1. State two characteristics of venture capitalists as a source of finance. (2 marks)

 

  1. Identify two factors that an entrepreneur could consider while choosing a business incubator. (2 marks)

 

  1. Highlight two purposes of the appendix in a business plan. (2 marks)

 

SECTION III – 20 MARKS

 

  1. Highlight five objectives of management.                                                                                                            (5 marks)

Outline five advantages of conflicts to an organisation.                                                                                       (5 marks)

Describe five situations that may trigger innovation.                                                                                    (5 marks)

Explain five reasons why an entrepreneur may need a business plan for their new venture.                       (5 marks)

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