PART A. INSTRUCTION: Answer ALL questions.

Transcription

1 PART A INSTRUCTION: Answer ALL questions. 1. All of the following are essentials needed by an entrepreneur EXCEPT A. willingness to take calculated risk in terms of time, equity or career. B. ability to formulate an effective venture team. C. creative skills that can be fullfilled with resources. D. vision to recognise opportunity with others. 2. The term entrepreneur literally translated means A. between-taker. B. risk taker. C. entrance maker. D. venture capitalist. 3. Entrepreneurship through its process of innovation creates new investment of new ventures, which will result in development. A. management B. economic C. financial D. political 4. Characteristics of successful entrepreneurs are, EXCEPT A. external locus of control. B. flexibility. C. tolerance for failure. D. confidence and optimistic. 5. An opportunity assessment plan (is/will) A. longer than a business plan. B. provide the basis for making a decision. C. focus overall venture than opportunity. D. all of the above are true. 1

2 6. A Small Businessperson tends to A. attain self-accomplishment. B. fullfill his/her family living needs and himself/herself. C. desire to achieve his/her personal goals. D. follow others as a self-employed person. 7. Entrepreneurs need to attend seminars or workshops which are related and unrelated to their day-to-day problems. Which phase of creativity process are they facing and why? A. Incubation phase because they need to get a detailed view of the problems. B. Knowledge accummulation phase because they need to get overall view of the problems. C. Idea experience because they need to find the solution of the problems. A. Evaluation and implementation phase because they need to identify workable ideas. 8. Which of the following is NOT the barrier of creativity? A. Belief on self ability. B. Dare to face criticism. C. Stress. D. Too-hectic working environment. 9. An entrepreneur who takes the attributes of two existing products, puts them together, creates a third product, and sells it to a new target market is exhibiting which type of innovation? A. Invention. B. Extension. C. Duplication. D. Synthesis. 10. All of the following are principles of innovation EXCEPT A. starting small. B. being action-oriented. C. pursuing perfection. D. learning from failures. 2

3 11. One major source of financial support for innovation is A. personal savings. B. pension funds. C. commercial banks. D. venture capital. 12. A study of community demographics helps the entrepreneur to A. determine the best location for the business. B. learn about the composition of the consumers who live in the community. C. design the product or service that the firm will sell. D. learn about the local culture and tastes. 13. The external environment of an entrepreneurial firm A. includes the task environment. B. consists of forces not within the short-run control of the firm's owners. C. includes the societal environment. D. all of the above are true. 14. Because of its extensive influence on business, the first aspect of the firm's environment that should be investigated is A. government regulations. B. generally accepted accounting practices. C. incorporation requirements. D. labor markets. 15. When reading a business plan, investors consider the most important. A. financial projections B. characteristics of the venture's industry C. quality of the entrepreneurs D. unique features of the venture 3

4 16. The management segment of the business plan provides information about A. the organisational structure of the venture. B. the management philosophy to be used in the firm. C. all of the consultants and professionals who have provided services to the firm. D. key personnel, their responsibilities, and relevant career experiences. 17. Which of the following is NOT one of the entrepreneurial motivations that typically cause individuals to start new ventures? A. Opting out of the corporate system. B. Personal characteristics of the entrepreneur. C. The environment. D. The venture. 18. The greatest advantage of franchising is A. the training and guidance provided by the franchisor. B. the brand-name appeal to customers. C. the franchisor's proven track record. D. financial assistance provided by the franchisor. 19. Which of the following is NOT a disadvantage of the sole-proprietorship form of ownership? A. Unlimited liability. B. Lack of continuity. C. Less available capital. D. High costs of formation. 20. Which statement is TRUE about business networking? A. It is easy to take other opportunities. B. An outcome of past relationship strategy and resource for future strategies. C. People will have confidence in an entrepreneur. D. Good relationship with other people. 4

5 PART B INSTRUCTION: Answer THREE (3) questions only. QUESTION 1 a) Describe the importance of entrepreneurship. b) Explain FOUR (4) characteristics of successful entrepreneurs. c) Describe the: i) differences between a businessperson and an entrepreneur. ii) differences between a conventional manager and an entrepreneur. [8 marks] QUESTION 2 a) Explain FOUR (4) barriers to creativity. b) Explain FOUR (4) sources of innovation and give appropriate examples. c) Why are creativity and innovation important to entrepreneurs? [ 8 marks] [ 8marks] [4marks] 5

6 QUESTION 3 a) Describe the micro environment and give an example each. [8 marks] b) A business plan is very important to various parties. Who are those parties? c) List down FOUR (4) pitfalls to avoid in planning. [8 marks] QUESTION 4 a) Describe the FOUR (4) advantages of a start-up company. b) Describe briefly the THREE (3) legal forms of organisation. [ 8 markah] [ 12 markah] QUESTION 5 a) Describe any FOUR (4) of the factors that explain the importance of networking. b) List down FOUR (4) effects of failure to build good networking. [ 8 marks] [ 4 marks] c) Explain what are the FOUR (4) techniques to build confidence in networking. [ 8 marks] THE QUESTION PAPER ENDS HERE 6