NOVEMBER 2013 EXAMINATION DATE: 5 NOVEMBER 2013 DURATION: 3 HOURS PASS MARK: 40% (DBM-04)
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1 ENTBUS1 NOVEMBER 2013 EXAMINATION DATE: 5 NOVEMBER 2013 TIME: 14H00 17H00 TOTAL: 100 MARKS DURATION: 3 HOURS PASS MARK: 40% (DBM-04) ENTREPRENEURSHIP THIS EXAMINATION PAPER CONSISTS OF 4 SECTIONS: SECTION A: CONSISTS OF: (i) 10 MULTIPLE-CHOICE QUESTIONS (10 MARKS) (ii) 5 TRUE OR FALSE QUESTIONS (10 MARKS) (iii) 10 COMPLETE THE SENTENCES QUESTIONS (10 MARKS) SECTION B: SECTION C: SECTION D: CONSISTS OF 5 SHORT QUESTIONS CONSISTS OF 4 LONG ANSWER QUESTIONS CONSISTS OF 2 INTERPRETATIVE QUESTIONS ANSWER ONE OF THE QUESTIONS (10 MARKS) (40 MARKS) (20 MARKS) INSTRUCTIONS: 1. Read the following instructions carefully before answering the paper, as failure to act upon them will result in a loss of marks. 2. Write your answers in your answer book, which is provided in the exam. 3. Ensure that your name and student number are clearly indicated on your answer book. 4. Write your answers in either blue or black ink in your answer book. 5. Read each question very carefully before you answer it and number your answers exactly as the questions are numbered. 6. Begin with the question for which you think you will get the best marks. 7. Note the mark allocations for each question give enough facts to earn the marks allocated. Don't waste time by giving more information than required. 8. You are welcome to use diagrams to illustrate your answers. 9. Please write neatly we cannot mark illegible handwriting. 10. Any student caught cheating will have his or her examination paper and notes confiscated. The College will take disciplinary measures to protect the integrity of these examinations. 11. If there is something wrong with or missing from your exam paper or your answer book, please inform your invigilator immediately. If you do not inform your invigilator about a problem, the College will not be able to rectify it afterwards, and your marks cannot be adjusted to allow for the problem. 12. This paper may be removed from the examination hall after the examination has taken place. NOTE: YOU WILL NEED A PENCIL AND RULER TO COMPLETE THIS EXAM. DAMELIN CORRESPONDENCE COLLEGE NOVEMBER 2013 PAGE 1 OF 7
2 SECTION A (30 MARKS) (i) MULTIPLE-CHOICE QUESTIONS Choose the correct option for each of the following. Write only the question number and your chosen answer. For instance, if you think that the correct answer for number 1 is, then write it as To be successful, the small business manager must be able to: plan, organise, lead and control one business function only. facilitate an informal communication process. ensure interpersonal and inter-group competence. delegate the efficient operation of tasks. 2. Which of the following is not a key success factor that contributes to successful entrepreneurship? personal qualities management skills skill, expertise and aptitude internal factors 3. The following is a business structure that may no longer be registered. Close Corporation Partnership Private Company Sole Trader 4. Psychographic segmentation refers to: people with similar personalities and lifestyles. a group of people who live in the same area. features such as age, gender and race. the link between education level and occupation. 5. Manufacturing costs consist of: administrative overheads, direct labour costs and direct material costs. direct labour costs, direct material costs and manufacturing overheads. indirect costs, direct costs of materials and direct labour costs. research and development costs, direct labours costs and commercial overheads. DAMELIN CORRESPONDENCE COLLEGE NOVEMBER 2013 PAGE 2 OF 7
3 6. Which of the following provisions are not included in the Consumer Protection Act of 2008? the right to fair marketing the right to return goods and get a refund the right to a 12-month warranty on all products bought strict liabilty giving the consumer the right to sue if goods cause injury or damage 7. The purpose of which Act is to give effect to the right to fair labour practices? Basic Conditions of Employment Act 75 of 1997 Black Economic Empowerment Act 53 of 2003 Employment Equity Act 60 of 1998 Labour Relations Act 66 of Which of the following is not a component of the macro environment? technological environment international environment social environment market environment 9. A retail business normally falls within the: primary sector. secondary sector. tertiary sector. final production sector. 10. The executive summary within the business plan provides for: the organisational structure. an overview of the status of the business. a detailed analysis of what the business intends to do in the market. market research, CV and photos of the product. [10] (ii) TRUE OR FALSE QUESTIONS Indicate whether the following statements are True or False. Motivate all your answers. 1. Gross Domestic Product is defined as the total production of a country. 2. Corporate entrepreneurship or intrapreneurship exists within large corporations. 3. A viability study is a general examination of the potential of a business idea to be converted into an enterprise. DAMELIN CORRESPONDENCE COLLEGE NOVEMBER 2013 PAGE 3 OF 7
4 4. Market segmentation is the process whereby the total market is divided into segments with differing needs. 5. A pro-forma income statement is one that is drawn up using estimated figures. [5 2 = 10] (iii) COMPLETE THE SENTENCE QUESTIONS Complete the following sentences by filling in the missing word(s) from the list provided. Write only the word(s) next to the question number (1. To 10.) mission; rise; intrapreneur; overheads; spending; production; behaviours; vision; macro; inputs; entrepreneur; operations; consultancy; micro; human resources; franchising; obsolete 1. is an arrangement whereby one person or business grants an independent party the right to sell the business' products or services according to certain guidelines. 2. The establishment can be described as a place where are processed to produce a product or provide a service. 3. management can be described as the activities that take place so that products and services can be provided to meet the needs of the customer. 4. Costs such as electricity and water, which cannot be allocated directly to a product, are known as. 5. Inflation results in the continual in the prices of products and services. 6. The existence of trade unions is an important variable in the environment. 7. The terms of a tacit contract are determined by the past of the employer and employee respectively. 8. One of the dangers of buying an existing business is that the stock on hand may be. 9. A/An is a person who undertakes a wealth creating process through making things happen. 10. A rise in interest rates usually results in a decrease in. [10] [30] DAMELIN CORRESPONDENCE COLLEGE NOVEMBER 2013 PAGE 4 OF 7
5 SECTION B: SHORT QUESTIONS (10 MARKS) QUESTION 1 List three key success factors of entrepreneurs. [3] QUESTION 2 Define the term 'industrial column'. [2] QUESTION 3 List two functions within the business. [2] QUESTION 4 What does the abbreviation CCMA stand for? [1] QUESTION 5 Define the term 'full legal capacity'. [2] [10] DAMELIN CORRESPONDENCE COLLEGE NOVEMBER 2013 PAGE 5 OF 7
6 SECTION C: LONG ANSWER QUESTIONS (40 MARKS) QUESTION 1 Successful entrepreneurs should display certain characteristics. Explain the following characteristics: Perseverance (2) Commitment to the business (2) Sound human relations (2) Creativity and innovative ability (2) (e) Positive attitude and approach (2) [10] QUESTION 2 There are eight main functions associated with business. List five of these functions of business and provide an explanation of the activities within each one. [5 2 = 10] QUESTION 3 Define a 'mission statement'. (4) Provide six important questions that guide the entrepreneur when formulating a mission statement. (6) [10] QUESTION 4 Many factors play a role in deciding on the location of a business. List five of these factors and provide an explanation for each. [5 2 = 10] [40] DAMELIN CORRESPONDENCE COLLEGE NOVEMBER 2013 PAGE 6 OF 7
7 SECTION D: INTERPRETATIVE QUESTIONS (20 MARKS) ANSWER ONE OF THE QUESTIONS QUESTION 1 Assume there are 500 customers in your target area. The average income per annum per customer amounts to R You estimate that each customer spends 1,5% of his/her yearly income of the product or service you are offering. You believe that you will enjoy a market share of 35% of the total market. Calculate the Rand value potential market share of the business. Show all your calculations. (19) State whether the final answer is regarded as profit or turnover. (1) [20] OR QUESTION 2 A market is defined as the link between the business and the environment in which it functions. It therefore includes all individuals, groups or institutions that have specific needs for goods or services. Summarise each of the five segments of the market that are covered in your syllabus and give relevant examples of each. [5 4 = 20] [20] Section A: 30 marks Section B: 10 marks Section C: 40 marks Section D: 20 marks TOTAL: 100 MARKS DAMELIN CORRESPONDENCE COLLEGE NOVEMBER 2013 PAGE 7 OF 7
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