PRINCIPLES OF ENTREPRENEURSHIP AND MANAGEMENT DECEMBER 2022 PAST PAPER

MONDAY: 5 December 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. Which type of entrepreneur adopts to change only when it is important for survival?

A. Drone
B. Imitative
C. Fabian
D. Innovative (2 marks)

2. Select the statement that describes an intrapreneur.

A. A person who detects an untapped opportunity to make own income
B. A person who buys products at a certain price with a view to sell them at a higher price
C. An individual who brings factors of production together to start a business
D. An employee who uses entrepreneurial skills to generate profit for the venture (2 marks)

3. Which of the following is a role of entrepreneurship in economic development?

A. Reduce the level of exports in the country
B. Promote balanced regional growth
C. Formulating favourable regulations
D. Providing an enabling environment (2 marks)

4. Choose a benefit attained by a country with high levels of entrepreneurial activity.

A. High levels of business formation
B. High levels of cyclical unemployment
C. High levels of business opportunities
D. High levels of government intervention (2 marks)

5. Which of the following is a characteristic of an executive summary in a business plan?

A. Summarises every chapter in the business plan.
B. Prepared first before all other components
C. Summarises the content of a marketing plan
D. Appears on the cover page of a business plan (2 marks)

6. Which of the following is a role of business incubation?

A. Generate business idea
B. Controlling business ideas
C. Enhance business success
D. Lower business capacity (2 marks)

7. Select the set of qualities that describes a good business opportunity.

A. Attractive, high gains, short cycle and minimal resources
B. Durable, abnormal profits, long cycle and unique market
C. Anchored on product, profitable, short cycle and timely
D. Attractive, durable, anchored on product and timely (2 marks)

8. Choose the statement that describes a business idea.

A. A thought or impression that may or may not become an opportunity
B. A window of opportunity that meets the criteria for start-up
C. An opportunity that meets the needs and demands of customers
D. A notion containing factors that contribute to business success (2 marks)

9. Which business entry option could provide an entrepreneur exclusive rights to operate within a certain geographical region?

A. Franchise
B. Sole proprietorship
C. Company
D. Joint venture (2 marks)

10. Which of the following is a benefit of buying an existing business?

A. Enables partnering with existing owners
B. Helps to avoid challenges of running a business
C. Allows easy implementation of changes and innovation
D. Facilitates evaluation of business performance (2 marks)

11. Which of the following activity could an entrepreneur undertake before choosing a market entry strategy?

A. Acquire finances
B. Sales promotion
C. Product distribution
D. Market research (2 marks)

12. Select an advantage of running a sole proprietorship business.

A. It is not easy to dissolve after registering
B. It is very expensive to create the business
C. Owner maintains complete control of it
D. The losses are redistributed by the owner (2 marks)

13. What term is used to refer to collecting and analysing first hand data for decision making?

A. Customer surveys
B. Primary research
C. Windshield research
D. Industry research (2 marks)

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

A. Share capital
B. Equity finance
C. Trade credit
D. Debentures (2 marks)

15. Which of the following explains the meaning of retained earnings?

A. Unpaid interest
B. Profits earned
C. Undistributed dividends
D. Income from investment (2 marks)

16. Identify a service provided by microfinance institutions.

A. Business appraisal
B. Savings and credit
C. Business registration
D. Business identity (2 marks)

17. Identify a factor that venture capitalists could consider before investing in a business.

A. Low profitability and low returns
B. An average working capital
C. Slow growth in the industry
D. Strong management team (2 marks)

18. Why is it important for an entrepreneur to choose a suitable business location?

A. Identify customer needs
B. Market proximity
C. Allow faster production
D. Reduce distribution of goods (2 marks)

19. Which of the following increases customer engagement with a business?

A. Customer analysis
B. Selling quality products
C. Use of technology
D. Hiring competent employees (2 marks)

20. Choose the benefit realised by embracing social media marketing.

A. The ability to obtain marketing financing
B. The ability to market business at low cost
C. The ability to borrow at low rates of interest
D. The ability to make market differentiation (2 marks)

21. What name is given to a person who accomplishes objectives by directing the efforts of other people?

A. Manager
B. Entrepreneur
C. Intrapreneur
D. Director (2 marks)

22. Which management function involves putting together required resources in order to execute plans?

A. Planning
B. Controlling
C. Staffing
D. Organising (2 marks)

23. Which of the following is an interpersonal role of a manager?

A. Monitoring role
B. Spokesperson role
C. Negotiation role
D. Liaison role (2 marks)

24. Identify a way in which a manager performs the leading function in an organisation.

A. Tasks and resources allocation
B. Monitoring and evaluating performance
C. Setting long and short-term goals
D. Motivating and influencing people (2 marks)

25. Which of the following is an objective of planning in the management process.

A. To ensure rational allocation of resources
B. To ensure quality control and assurance
C. To ensure the use of accurate standards
D. To ensure improvement is a priority (2 marks)

26. Choose the role played by the top-level management in an organisation.

A. Design and implement policies
B. Set organisation schedules
C. Allocate operational resources
D. Formulate strategic goals (2 marks)

27. Which statement explains the meaning of leading as a function of management?

A. Responding to problems
B. Influencing behaviour
C. Forecasting future actions
D. Mobilising resourses (2 marks)

28. Which level of management is directly responsible to shareholders of a company?

A. Supervisory level
B. Middle level
C. Top level
D. Executory level (2 marks)

29. Which statement describes a job-specific knowledge needed to perform well in a specialised field?

A. Conceptual skills
B. Technical skills
C. Interpersonal roles
D. Decisional roles (2 marks)

30. Choose the first stage in the rational decision making.

A. State the problem
B. Identify the problem
C. Evaluate a problem
D. Examine a problem (2 marks)

31. Which skills should a manager have to be able to deal objectively and fairly with subordinates?

A. Communication
B. Delegation
C. Technical
D. Interpersonal (2 marks)

32. What term is used to refer to a projected course of action?

A. Decision
B. Alternative
C. Report
D. Plan (2 marks)

33. Which skills does a manager require to understand the overall working of the organisation and its environment?

A. Strategic thinking skills
B. Leadership skills
C. Conceptual skills
D. Directing skills (2 marks)

34. Why is a retention policy important in ensuring a good filing system?

A. To prevent unauthorised access
B. Ensure it is simple to understand
C. Ensure removal of outdated records
D. Ensure the system is capable of expansion (2 marks)

35. The following steps are involved in handling mail.

(i) Distribution
(ii) Receiving
(iii) Storage
(iv) Recording
(v) Sorting
Which of the following represents the correct order of handling incoming mail?
A. (ii), (v), (iv), (i), (iii)
B. (i), (ii), (iv), (v), (iii)
C. (ii), (iv), (v), (i), (iii)
D. (iii), (ii), (i), (v), (iv) (2 marks)

36. Which of the following is an advantage of microfilming as a method of storing information?

A. Saves on space
B. Easy to make corrections
C. Fast retrieval
D. It is minimised (2 marks)

37. Which of the following could lead to inefficient filing?

A. Use of electronic filing
B. Not allowing access to everyone
C. Regular filing of documents
D. Inappropriate classification (2 marks)

38. Select the characteristic exhibited by a democratic leader.

A. Increases resistance to change
B. Long channels of communication
C. Decentralisation of authority
D. Utilises downward communication (2 marks)

39. Which statement describes the meaning of job analysis in management?

A. Minimum qualifications a person must have to perform the job successfully
B. To determine by examining and observing the basic elements of a job
C. To draw an effective organisation structure for the organisation
D. Minimum academic requirements to perform a specific technical job (2 marks)

40. Which of the following is an advantage of internal recruitment in an organisation?

A. It inspires and motivates employees within the organisation
B. It gives the organisation a competitive advantage
C. It enhances the reputation of the organisation
D. It provides the required returns on human capital (2 marks)

41. Choose a conflict handling style that provides solutions that benefit all parties.

A. Accommodating
B. Collaborating
C. Compromising
D. Dominating (2 marks)

42. Which of the following could contain a job description and a job specification?

A. Application for a specialised job
B. Advertisement of a vacant position
C. Curriculum Vitae of a job applicant
D. Invitation to an employment interview (2 marks)

43. Which of the following is a responsibility of an employee with relation to health and safety issues?

A. Create and distribute a health and safety policy
B. Provide a safe working environment
C. Make proper use of tools and machinery
D. Provide training on health and safety issues (2 marks)

44. Which of the following could affect employee retention in an organisation?

A. Number of employees
B. Size of organisation
C. Leadership style
D. Levels of management (2 marks)

45. What is the purpose of holding job interviews?

A. Selection of right employees
B. Orientation of new employees
C. Presenting certificates and testimonials
D. Human resource planning (2 marks)

46. Choose the statement that represents a growth strategy in a competitive business.

A. Expanding into new products and services
B. Changing the ongoing business strategy
C. Engaging in a rationalisation process
D. Phasing out some of product lines (2 marks)

47. Which of the following occurs at the stabilisation stage of a business life cycle?

A. Business expansion
B. Employee retrenchment.
C. Business mergers
D. Constant sales (2 marks)

48. Which of the following is a demerit of a rapid growth in business?

A. Reduced product quality
B. Over-stretched staff
C. Market saturation
D. Constant productivity (2 marks)

49. Which of the following could be experienced at the maturity stage of a business life cycle?

A. Business decline
B. Sales growth
C. Slow growth
D. Low profit (2 marks)

50. At which stage of growth does a business experience negative cash flow?

A. Idea generation stage
B. Start-up stage
C. Stabilisation stage
D. Innovation stage (2 marks)

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