PRINCIPLES OF ENTREPRENEURSHIP AND MANAGEMENT DECEMBER 2023 PAST PAPER

MONDAY: 4 December 2023. Morning Paper. Time Allowed: 2 hours.

This paper is made up of fifty (50) Multiple Choice Questions. Answer ALL questions by indicating the letter (A, B, C or D) that represents the correct answer. Each question is allocated two (2) marks. Do NOT write anything on this paper.

1. Which of the following is a reward for entrepreneurship?

A. Patience
B. Passion
C. Profits
D. Promotion (2 marks)

2. Identify a challenge faced by entrepreneurs when setting up a business.

A. Lack of competitors
B. Limited financing
C. Multiple channels
D. Product maturity (2 marks)

3. Which of the following is a factor that distinguishes intrapreneurs from entrepreneurs?

A. Intrapreneurs are innovative
B. They seek new opportunities
C. Their reward is wages or salaries
D. They take moderate business risks (2 marks)

4. Choose a characteristic of an entrepreneurial venture from the following:

A. Maintain modest business operations
B. Have high potential for growth
C. Involves less risk and low returns
D. Non-profit oriented pursuing social problems (2 marks)

5. Choose a reason why government encourages the setting up of small businesses.

A. Avoid establishment of large businesses
B. Promote balanced regional development
C. Reduce the level of employment in the country
D. Enable issuance of large number of licences (2 marks)

6. Identify an approach that entrepreneurs may use to establish a viable business opportunity.

A. Find gaps in the market place
B. Infrastructural development
C. Accumulate business ideas
D. Establish a legal framework (2 marks)

7. Which of the following term explains the process of turning an idea into a marketable product or service?

A. Ideation
B. Commercialisation
C. Conceptualisation
D. Validation (2 marks)

8. Identify a role played by government in promoting entrepreneurship.

A. Providing political governance
B. Enforcing law and compliance
C. Provide an enabling environment
D. Provide business governance (2 marks)

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

A. Last to be read
B. First to be written
C. Short and comprehensive
D. Lengthy and detailed (2 marks)

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

A. Provide skilled employees
B. Accelerate business growth
C. Act as business role models
D. Provide political stability (2 marks)

11. Choose a form of business that has no separation between ownership and management.

A. Private limited company
B. Public limited company
C. A joint venture company
D. Sole proprietorship (2 marks)

12. Choose the importance of having a clearly drawn partnership agreement to the members.

A. Reduce disputes among partners
B. Liability of partners are limited
C. Legal framework is broadened
D. Minimises partners tax liability (2 marks)

13. Which of the following factors is considered when choosing a business entry option?

A. Generating ideas
B. Amount of finance
C. Business plan
D. Registration plan (2 marks)

14. What is the term used to describe a temporary partnership between companies to achieve a common objective?

A. Joint venture
B. Merger
C. Acquisition
D. Franchise (2 marks)

15. Identify a description of a person who offers financing in exchange for part ownership.

A. Franchising partner
B. Debt financing
C. Equity investor
D. Acquiring partner (2 marks)

16. Identify a quality considered by commercial banks when lending to an entrepreneur.

A. Patience
B. Passion
C. Character
D. Perseverance (2 marks)

17. Which of the following refers to raising funds from a large number of people through the internet?

A. Venture funding
B. Market funding
C. Crowd funding
D. Gift funding (2 marks)

18. Which of the following is a form of external financing for entrepreneurs?

A. Personal savings
B. Bootstrapping
C. Venture capital
D. Friends and family loans (2 marks)

19. Identify the source of finance that could be used by an entrepreneur who wishes to avoid loss of control.

A. Equity finance
B. Venture capital
C. Debt capital
D. Business angels (2 marks)

20. Choose a factor that technology-driven companies look for in a potential location.

A. Proximity to prospective customers
B. Composition of local labour force
C. Level of business competition
D. Proximity to essential services (2 marks)

21. Identify the act of two or more businesses sharing the same space due to high cost of business premises.

A. Retail stores
B. Outlet centres
C. Co-working
D. Non-traditional (2 marks)

22. Which of the following explains a set of positive attributes that people associate with a firm?

A. Tagline
B. Niche
C. Mapping
D. Brand (2 marks)

23. Identify a way in which the government has enhanced the process of acquiring business licences.

A. Increasing the number of licences
B. Privatising the licencing procedure
C. Initiating online licencing services
D. Withdrawing all business licences (2 marks)

24. Select a strategy that an entrepreneur could use to gain instant credibility of a new brand.

A. Improving customer access
B. Use of online retailers
C. Influencer marketing
D. Initiate mass production (2 marks)

25. Which of the following is a measure that could be instituted to ensure customer satisfaction?

A. Multiple-channel support
B. Many suppliers of inputs
C. Increased customer demand
D. Writing a business plan (2 marks)

26. Which of the following defines the process of setting goals and deciding how to achieve them?

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

27. Choose a term that refers to a manager’s role of arranging tasks, people and resources to achieve goals.

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

28. Identify the role played by top level managers in an organisation.

A. Implement policies
B. Supervise daily activities
C. Make long-term plans
D. Supervise and coordinate (2 marks)

29. Identify a managerial skill that consists of the ability to think analytically and understand the organisation as a whole.

A. Technical skill
B. Human relations
C. Conceptual skills
D. Interpersonal skill (2 marks)

30. Choose the term that explains the process of achieving organisational goals with and through people.

A. Planning
B. Management
C. Intrapreneurship
D. Leadership (2 marks)

31. Identify the skills of a manager that requires proficiency in methods, processes and procedures of a given activity.

A. Organising skills
B. Diagnostic skills
C. Conceptual skills
D. Technical skills (2 marks)

32. Which of the following roles is played by a manager as a figure head?

A. Monitor the environment
B. Opportunity identification
C. Representing the organisation
D. Disseminating information (2 marks)

33. Identify the function of management that deals with hiring, training, compensation and developing human resources.

A. Recruitment
B. Leadership
C. Supervision
D. Staffing (2 marks)

34. Select a function performed by lower-level managers.

A. Handling routine duties
B. Coordination of departments
C. Formulation of strategies
D. Procedure and policy making (2 marks)

35. Which of the following steps is undertaken before incoming mail is opened?

A. Weighing
B. Sorting
C. Recording
D. Date stamping (2 marks)

36. Which of the following terms refers to names and addresses stored on computers to enable quick printing on envelopes?

A. Postage data
B. Processed mail
C. Mailing list
D. Postage scales (2 marks)

37. Choose a technique that could be used to enhance customer support emails.

A. Automated responses for known issues
B. Replying the emails only when necessary
C. Deleting and ignoring irritating messages
D. Discouraging customers from writing emails (2 marks)

38. Identify a problem that could be caused by disorderly filing of office records.

A. Use of alphabetical filing
B. Strict tracking of records
C. Complex filing system
D. Inability to retrieve records (2 marks)

39. Choose the term used to explain the ability to influence employees to pursue goals.

A. Planning
B. Leadership
C. Coercive power
D. Reward power (2 marks)

40. Identify a reason why motivation is important in an organisation.

A. Increase employee turnover
B. Eliminate need for managers
C. Reduced resistance to change
D. Grievances are likely to increase (2 marks)

41. Which of the following could be a guide to recruiting the right employee?

A. Salary
B. Race
C. Nationality
D. Competence (2 marks)

42. Which of the following statements describe the term “job specification”?

A. Statement of minimum acceptable human qualities necessary to perform a job
B. Analysis of a job in order to determine the human resource requirements
C. The various specific units of responsibility and authority designated as jobs
D. Statement of duties and responsibilities required for a specific job (2 marks)

43. Identify a measure that management could use to minimise recruitment and training costs.

A. Use external sources of recruitment
B. Implement employee retention strategies
C. Avoid advertisement of vacant posts
D. Use lower-level managers to hire workers (2 marks)

44. Select a way in which conflict could be prevented in an organisation.

A. Encouraging competition
B. Introduction of change
C. Sharing of resources
D. Rules and procedures (2 marks)

45. Which of the following could be a positive consequence of conflict in an organisation?

A. Save time and resources in the organisation
B. Reveal deeper problems that need to be solved
C. Decrease stress and anxiety among employees
D. Some employees may leave the organisation (2 marks)

46. Select a reason why management should implement health and safety measures in an organisation.

A. To comply with the law
B. Improve management skills
C. Ensure punctuality of staff
D. Limit number of visitors (2 marks)

47. Choose the stage of growth when the firm focuses on managing products efficiently rather than expanding into new areas.

A. Decline stage
B. Maturity stage
C. Innovation stage
D. Early growth (2 marks)

48. Identify a risk that could affect safety at the work place.

A. Security guards
B. Preventive clothing
C. Environmental hazards
D. Indisciplined employees (2 marks)

49. Identify a source of a firm’s decline in performance and eventual closure.

A. Threat of innovative products
B. Firm’s competitive advantage
C. Competitive sales advertising
D. Adapting to environmental change (2 marks)

50. Which of the following should be the focus of an entrepreneur at the start-up stage of a business life cycle?

A. Forming Joint-ventures with others
B. Automation and outsourcing services
C. Adding new products to existing ones
D. Establishing a reliable customer base (2 marks)

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