ENREPRENEURSHIP AND INNOVATION APRIL 2022 PAST PAPER

WEDNESDAY: 6 April 2022. Morning paper.                                                              Time Allowed: 3 hours.
Answer ALL questions. Marks allocated to each question are shown at the end of the question.

1. The following are functions performed an entrepreneur EXCEPT:
(a) Making business decision.
(b) Making customers attention.
(c) Taking risks and uncertainty bearing.
(d) Taking managerial functions.                                      (1 mark)

2. Which of the following is an obstacle to entrepreneurship growth?
(a) High risks involved.
(b) High status of businessman.
(c) Market perfections
(d) Unrestrictive effects of customs.                                  (1 mark)

3. _____________ is a process of creating something new.
(a) Creating.
(b) Modelling.
(c) Innovation.
(d) Business model.                                                               (1 mark)

4. The following are factors that affect wireless system EXCEPT:
(a) Signal encoding.
(b) Frequency allocations.
(c) Urgent situations.
(d) Multiple access mechanisms.                                         (1 mark)

5. Which one of the following is a merit of the small firm in the innovation process?
(a) Ability to raise finance.
(b) Ability to carry out research and development.
(c) Ability to carry out multiple tasks.
(d) Ability to act on new ideas development.                      (1 mark)

6. The following are characteristics shared those who excel at recognising opportunities EXCEPT:
(a) Prior experience.
(b) Brainstorming.
(c) Entrepreneurial alertness.
(d) Social contacts and ties.                                                      (1 mark)

7. _____________ is conducted to assess whether a proposed business has adequate experts and resources to
successfully launch its business.
(a) Organisational feasibility analysis.
(b) Market feasibility analysis.
(c) Industry feasibility analysis.
(d) Financial feasibility analysis.                                              (1 mark)

8. Which of the following statements BEST describes the content for entrepreneurship?
(a) It takes place in small businesses.
(b) It takes place in large businesses.
(c) It takes place in a wide variety of contents.
(d) It does not take place in social enterprises.                      (1 mark)

9. The following are roles of incubation EXCEPT:
(a) It provides motivation to start up.
(b) It provides financial support to start up.
(c) It provides membership support.
(d) It provides networking opportunities.                                (1 mark)

10. What is the innovation gap?
(a) An opening that rivals might exploit.
(b) The time that elapses between invention and innovation.
(c) An opening that can be exploited an entrepreneur with a good idea.
(d) A nation’s lack of inventiveness.                                            (1 mark)

11. A business manager who starts a new initiative to his organisation setting up a new business can be regarded as_____________.
(a) Ecopreneur.
(b) Technopreneur.
(c) Entrepreneur.
(d) Social entrepreneur.                                                                    (1 mark)

12. Which of the following is the MAJOR characteristic of a successful business website?
(a) Innovation.
(b) Speed.
(c) Graphics.
(d) Products.                                                                                         (1 mark)

13. Which of the following is a disadvantage for a franchisee in a franchise business?
(a) Lack of independence.
(b) Franchise business has a high failure rate.
(c) Lack of brand identity.
(d) Lack of training the franchisor.                                              (1 mark)

14. Which of the following attitudes is NOT associated with successful entrepreneurship?
(a) Competition and cooperation.
(b) Desire to influence others.
(c) Innovation and product improvement.
(d) Status quo in business.                                                                  (1 mark)

15. Entrepreneurial culture consists of the following EXCEPT:
(a) Encouraging employees to generate ideas.
(b) Focusing on opportunities.
(c) The desire to grow at a slow and controlled pace.
(d) Being creative.                                                                                 (1 mark)

16. A business plan is important for the following reasons EXCEPT:
(a) It forces firm’s founders to systematically think through each aspect of their new venture.
(b) It provides tenders and investors assurance that they will earn a decent return.
(c) It provides an investor with something to react to.
(d) It is a selling document that enables a business to present itself to potential suppliers and business partners.                (1 mark)

17. A ____________ is a professional money maker who makes risk investment from a pool of equity capital to
obtain a high rate of return on investment.
(a) Venture capitalist.
(b) Entrepreneur.
(c) Businessman.
(d) Buyer.                                                                                                  (1 mark)

18. A business arrangement where the one party allows another party to use a business name and sell the product is known as ______________.
(a) A cooperative.
(b) An owner-manager business.
(c) A limited company.
(d) A franchise.                                                                                         (1 mark)

19. A new venture’s business plan is essential because ______________.
(a) It helps to persuade others to commit funding to the venture.
(b) Can help demonstrate the visibility of the venture.
(c) Provides a guide for business activities defining objectives.
(d) Helps an entrepreneur to reach a break-even point.                 (1 mark)

20. ______________ is a favourable set of circumstances that creates a need for a new product, service or business.
(a) A niche.
(b) A venture.
(c) A trend.
(d) An opportunity.                                                                                  (1 mark)

21. Which of the following is NOT a method of identifying an opportunity?
(a) Observing trends.
(b) Solving problems.
(c) Finding gaps in the market place.
(d) Trying out alternative uses of existing products.                        (1 mark)

22. Which of the following statements is FALSE on e-commerce?
(a) Can allow new ventures to compete on more or less equal terms with large firms.
(b) Can lead to small businesses having reduced contact with their customers.
(c) Is rarely used in small businesses.
(d) Is used in many different industries and markets.                     (1 mark)

23. The following element is LEAST to influence the timing of a new business entry.
(a) Government policies.
(b) Profitability.
(c) Consumer expenditure.
(d) Weather conditions.                                                                          (1 mark)

24. The following statement is FALSE on the importance of small businesses:
(a) They give an outlet for consumers.
(b) They derive huge amount of consumer income.
(c) They can provide specialist support to large businesses.
(d) They can be innovative of new products.                                      (1 mark)

25. ______________ is a problem solving technique designed to produce various ideas in a short period.
(a) Synectics.
(b) Delphi technique.
(c) Brainstorming.
(d) Nominal group technique.                                                              (1 mark)

26. Goods and services reach the market place through _____________.
(a) Marketing channels.
(b) Multilevel pyramids.
(c) Monopolitics.
(d) Multiplication.                                                                                    (1 mark)

27. The following are elements of the macro-environment EXCEPT:
(a) Political and regulatory factors.
(b) Customer needs in a given market.
(c) Social and demographic factors.
(d) Technological changes.                                                                      (1 mark)

28. Information about business competition can be obtained from the following EXCEPT:
(a) Websites.
(b) Product information leaflets.
(c) Telephone conversations.
(d) Company reports.                                                                                (1 mark)

29. Which of the following is NOT a form of intellectual property?
(a) Trade marks.
(b) Patents.
(c) Copyright.
(d) Tangible assets.                                                                                     (1 mark)

30. An idea of a new product is tested to potential customers to determine consumer acceptance at __________ stage.
(a) Concept.
(b) Product development.
(c) Test marketing.
(d) Commercialisation.                                                                               (1 mark)

31. The purpose of a good strategy for a small business is ____________.
(a) To increase turnover.
(b) To increase profitability.
(c) To achieve competitive advantage.
(d) To achieve stated objective.                                                                  (1 mark)

32. The fourth step in the entrepreneurial process is _______________.
(a) Growing the entrepreneurial firm.
(b) Deciding to become an entrepreneur.
(c) Developing successful business ideas.
(d) Initiating new rules.                                                                                (1 mark)

33. The following is an obstacle of a person becoming an entrepreneur:
(a) Gender.
(b) Education.
(c) Values.
(d) Lack of permit to stay in the country.                                                  (1 mark)

34. Members of distribution channels are ideal sources for new ideas because______________.
(a) They have well-developed sales force.
(b) They are bothered when an entrepreneur bears a loss.
(c) They earn a handsome profit from new business.
(d) They are familiar with the needs and interest of the market.          (1 mark)

35. Which one among the following is the MOST determinant element of entrepreneurial growth?
(a) Government.
(b) Politics.
(c) Market.
(d) Private organisations.                                                                                (1 mark)

36. ______________ entrepreneurs are very cautious and skeptical while practicing any change:
(a) Innovative.
(b) Initiative.
(c) Fabian.
(d) Drone.                                                                                                             (1 mark)

37. Which of the following BEST explains the role of an entrepreneur in economic development?
(a) Promotes imbalance regional development.
(b) Promotes capital formation.
(c) Increase unemployment problem.
(d) Promotes imbalanced national development.                                         (1 mark)

38. The status of entrepreneur is of ____________ while of manager is______________.
(a) Owner – servant.
(b) Employee – servant.
(c) Servant – owners.
(d) Employee – employer.                                                                                  (1 mark)

39. Subconscious assimilation of information is reflected in _____________ stage of creativity process.
(a) Verification.
(b) Incubation.
(c) Illumination.
(d) Preparation.                                                                                                   (1 mark)

40. The idea and actions that explains how a business could make profit is known as ________________.
(a) Mission.
(b) Strategy.
(c) Goal.
(d) Objective.                                                                                                       (1 mark)

41. ________________ is a concept that can be converted into a tangible product or service for commercial purposes.
(a) Business idea.
(b) Opportunity.
(c) Market.
(d) Business Plan.                                                                                                (1 mark)

42. The development of a new venture based on an investor’s work requires _____________.
(a) Heavy investment from financiers.
(b) Skilled human resource.
(c) Expertise of an entrepreneur.
(d) Highly educated staff.                                                                                   (1 mark)

43. A business where an individual is both the owner and conductor of business affair is regarded as _____________.
(a) Sole proprietorship.
(b) Partnership.
(c) Cooperative.
(d) Small business.                                                                                               (1 mark)

44. The period of business where an entrepreneur must position the venture in a market and make necessary adjustments to assure survival is called _______________.
(a) Pre-startup stage.
(b) Early growth stage.
(c) Startup stage
(d) Later growth stage.                                                                                        (1 mark)

45. An entrepreneur with an internal locus of control _______________.
(a) Has a high need for achievement.
(b) Believes fate is a powerful force.
(c) Feels comfortable in an unstructured situation.
(d) Believes that success or failure depends on his/her actions.                (1 mark)

46. An incubation is ________________.
(a) A government agency that advises and assist small businesses.
(b) A programme through which private investment companies licensed government to lend money to small businesses.
(c) A centre that offers new businesses low-cost offices with basic business services.
(d) A specific geographic area to which the government try to attract private businesses a variety of means.              (1 mark)

47. A business plan for a new business should include the following EXCEPT:                                                                                                    (a) A marketing plan.
(b) A discussion of the purpose of the business.
(c) A description of the company background.
(d) The name of the bank.                                                                                    (1 mark)

48. Which of the following is a barrier to new product creation and development?
(a) Opportunity cost.
(b) Motive.
(c) Attitude.
(d) Intrapreneurship culture.                                                                             (1 mark)

49. Most organisations begin the process of establishing organisational ethics programmes developing__________.
(a) Ethics training programmes.
(b) Codes of conduct.
(c) Ethics enforcement mechanisms.
(d) Hidden agenda.                                                                                               (1 mark)

50. Which of the following is NOT a function of an ethical committee?
(a) Enforcing the code.
(b) Terminating the employees.
(c) Punishing violations.
(d) Rewarding compliance.                                                                                  (1 mark)

51. Which of the following statement BEST explains the benefit of business ethics to employees?
(a) Guidance to businessmen in decision making.
(b) Lead to high level of corporate governance.
(c) Lead to fair wages and other monetary and non-monetary benefits.
(d) It leads to the expansion and growth of business activities.                   (1 mark)

52. Which of the following is NOT unethical practice in business?
(a) Supplying inadequate information on the packages.
(b) Giving misleading advertisements.
(c) Utilisation of natural resources.
(d) Charging higher prices.                                                                                  (1 mark)

53. Why is the executive summary the MOST important section of the business plan?
(a) The section provides in-depth discussion of the major trends in the business.
(b) The section summarises the business key executives.
(c) The section has to entice the vender to read the rest of the plan.
(d) The section of the plan deals with the day-to-day operations of the company.                              (1 mark)

54. The following are causes of forced succession in family business EXCEPT:
(a) Mental breakdown.
(b) Planned departure.
(c) Severe business decline.
(d) Legal problems.                                                                                               (1 mark)

55. Which of the following is a disadvantage of a family-run business?
(a) Less access to capital markets.
(b) Less bureaucratic and impersonal.
(c) Less takeover risks.
(d) Long term orientation.                                                                                    (1 mark)

56. The internal source of innovation in enterprise comprise:
(a) Changes in industry structure.
(b) Demographics.
(c) Changes in perception.
(d) The unforeseen success.                                                                                  (1 mark)

57. The BEST marketing strategy to apply at decline stage of product life-cycle involve____________________.
(a) Heavy promotional expenditure.
(b) Decreasing the firm’s investment level selectively.                                                                                                                                                  (c) Product modification.
(d) Entering into new market segments.                                                            (1 mark)

58. A market segment should be____________________.
(a) Substantial and powerful.
(b) Powerful and measurable.
(c) Measurable and differentiable.
(d) Actionable and powerful.                                                                                (1 mark)

59. Which of the following is the correct sequence of creative process?
(a) Idea germination-incubation-illumination-preparation-verification.
(b) Idea germination-preparation-incubation-illumination-verification.
(c) Idea germination-illumination-incubation-verification-preparation.
(d) Idea germination-verification-preparation-incubation-illumination.    (1 mark)

60. The following are activities that an entrepreneur could carry before entering into a joint venture EXCEPT:
(a) Attending any trade show/trade fair organised the potential partner.
(b) Checking the references for each potential partner.
(c) Collect much information as possible for the business and potential partners.
(d) Contracting the partners management skills and techniques.                 (1 mark)

61. Which of the following statement BEST presents a business opportunity in the environment?
(a) Change in family and work pattern.
(b) Discovery of new production technology.
(c) Enactment of new laws and government policies.
(d) Entrance of intermediaries in the market.                                                    (1 mark)

62. The LAST step to be taken an entrepreneur when selecting a business opportunity is ________________.
(a) Screening of business opportunity.
(b) Preparing a business plan.
(c) Identifying the needs and wants of customers.
(d) Evaluating self and community.                                                                      (1 mark)

63. All the following are goals of setting up organisation website EXCEPT:
(a) Increasing opportunities for interaction with customers.
(b) Increasing locational limitations.
(c) Increasing the value of advertising.
(d) Increasing promotional products.                                                                   (1 mark)

64. All the following are risks to e-business EXCEPT:
(a) Fraud.
(b) Competitive edge.
(c) Access to data.
(d) Errors in service.                                                                                                 (1 mark)

65. __________________ is a benefit of electronic money to service providers.
(a) Increase in the cost of making payments.
(b) Increase of cash handling.
(c) Reduction of misappropriation of cash.
(d) Reduction of the access points.                                                                      (1 mark)

66. All the following are desirable measures of protecting a business from cyber threats EXCEPT:
(a) Set up a firewall.
(b) Turning off network encryption.
(c) Use of passphrase.
(d) Use of multi factor authentication.                                                                 (1 mark)

67. The following is a measure to avoid cybercriminals gaining access to a business network:
(a) Allow use of accounts with administrative privileges.                                                                                                                                            (b) Enabling administrative access entirely.
(c) Allow access to accounts with administrative privileges.
(d) Changing all default passwords to new passphrases.                                 (1 mark)

68. Which of the following statement is FALSE on training business employees on cyber threats?
(a) Should know how much information to use in business competition.
(b) Should know how to maintain strong passwords.
(c) Should know how to report a cyber threat.
(d) Should know what to do to overcome cyber threat.                                    (1 mark)

69. Which of the following statements BEST describes intrapreneurship?
(a) A process that takes place inside an existing firm that leads to new business venture creation.
(b) A process which employees take risks regarding possible negative outcomes for businesses.
(c) A process where an employee leaves their jobs and establishes new businesses.
(d) A process which individuals in an organisation pursue opportunities based on resources in an organisation.    (1 mark)

70. Starting a new business venture requires an entrepreneur who combines sound judgement, planning with risk taking to ensure business success.
(a) True.
(b) False.                                                                                                                       (1 mark)

71. ___________________ is a quality that represents a viable business opportunity.
(a) Market niche.
(b) Market share.
(c) Competitiveness.
(d) Timeliness.                                                                                                              (1 mark)

72. Which of the following is a personal quality that contributes to business opportunity recognition?
(a) Limited social networks.
(b) Introvert.
(c) Experience in industry.
(d) Limited skills.                                                                                                       (1 mark)

73. Social entrepreneurship is a form of entrepreneurship that_________________.
(a) Focuses on social environment.
(b) Encourages individuals to make profits in an innovative way.
(c) Supplies goods and services to the society.
(d) Tackles social challenges in an innovative and financially sustainable way.                         (1 mark)

74. Which of the following statement BEST explains the meaning of extension innovation?
(a) Taking new ideas to form a new product.
(b) Creating of a new product.
(c) Expansion of a product.
(d) Improving on value of a product.                                                                     (1 mark)

75. All the following are key sectors which enhance innovation to be accepted EXCEPT:
(a) Perceived risk.
(b) Product awareness.
(c) Incompatibility.
(d) Divisibility.                                                                                                           (1 mark)

76. The following statement is TRUE on merits of technological innovations:
(a) Increases process inefficiency.
(b) Increases marketing dependence.
(c) Increases fixed capital requirements.
(d) Increases product consistency and reliability.                                              (1 mark)

77. The third stage in the process of market research is__________________.                                                                                             (a) Analysing the information.
(b) Developing the research plan and design.
(c) Presenting the findings.
(d) Collecting the information.                                                                               (1 mark)

78. The corporate entrepreneurship strategy is composed of ____________________.
(a) External environment conditions.
(b) Innovative strategic vision.
(c) Competitive capability.
(d) Strategic repositioning.                                                                                      (1 mark)

79. Which is the MAIN source of entrepreneurial stress?
(a) Need to achieve.
(b) Political environment.
(c) Business cycles.
(d) Environmental stress.                                                                                           (1 mark)

80. Marketing research helps in ______________________.
(a) Identification of problem.
(b) Searching of the customers.
(c) Marketing of commodities.
(d) Establishing a commodity.                                                                                    (1 mark)

81. A new venture business plan is essential for the following EXCEPT:
(a) Helps to seek financial support from donors.
(b) Helps to analyse the viability of the venture.
(c) Helps to analyse the business competitiveness.
(d) Helps in guiding business activities.                                                                  (1 mark)

82. Which of the following statements is FALSE?
(a) Market segmentation is a useful process for small businesses to undertake.
(b) Entrepreneurship takes place in a wide variety contents.
(c) Small businesses can be innovators of new products.
(d) It is a good idea for small businesses to compete solely on price.              (1 mark)

83. Which statement describes the BEST definition of a business plan?
(a) An entrepreneur’s expression of interest.
(b) A written document that details the proposed business venture.
(c) Entrepreneur’s diary of business activity.
(d) A list of business ideas and proven concepts.                                                (1 mark)

84. The following documents are presented to the registrar of companies during registration of a company EXCEPT:
(a) Articles of Association.
(b) Memorandum of Association.
(c) A deed.
(d) A statutory declaration.                                                                                        (1 mark)

85. Which is the major difference between a general partnership and a private limited company?
(a) Unlimited liability.
(b) Continuing of business.
(c) Low liquidity of investment.
(d) Management control.                                                                                           (1 mark)

86. The following statements describe circumstances favourable for operation of a sole proprietorship EXCEPT:
(a) Where owner prefers autonomy.
(b) Where promptness is required in decision making.
(c) Where personal attention with the customer is needed.
(d) Where the market is broad and requires large capital investment.             (1 mark)

87. Green entrepreneurship can be achieved through________________________.
(a) Use of plastic in packing items.
(b) Importing of second hand vehicles.
(c) Draining effluent into rivers.
(d) Use of organic materials to produce goods.                                                      (1 mark)

88. All the following are importance of using internet in building consumer relationship in business EXCEPT:
(a) Helps the business to connect with distribution channels.
(b) Helps the business to connect with customers.
(c) Helps the business to get new customers.
(d) Helps business to retain customers.                                                                   (1 mark)

89. The entrepreneurial process of identifying and evaluating the business opportunity involves__________________.
(a) Writing a business proposal plan.
(b) Carefully scanning the environment.
(c) Seeking business finances.
(d) Registering the business.

90. Which of the following is a personal characteristic that could hinder recognition of business opportunity?
(a) Prior business experience.
(b) Business social networks.
(c) Inability to solve problems.
(d) Entrepreneurial awareness.                                                                                   (1 mark)

91. Which one of the strategies given below is the BEST in encouraging creativity?
(a) Rigid organisational structure.
(b) Investing in human resource.
(c) Retaining employees in the same level for long.
(d) Penalising failed ideas.                                                                                             (1 mark)

92. Invention means the creation of new things and innovation means application of new things into practical use.
(a) True.
(b) False.                                                                                                                             (1 mark)

93. The following key element should be included on the introductory page of a business plan:
(a) Assessment risk.
(b) Products and services.
(c) Name and address of the organisation.
(d) Structure of the organisation.                                                                                  (1 mark)

94. All the following are sources of risks for a new venture EXCEPT:
(a) Weakness in the marketing production.
(b) Weakness of the management team.
(c) New advances in technology.
(d) Expansion of new market segments.                                                                     (1 mark)

95. __________________ is a type of financing provided business angels.
(a) Debt.
(b) Equity.
(c) Crowdfunding.
(d) Factoring.                                                                                                                      (1 mark)

96. ___________________ is a form of finance for funding high risk businesses.
(a) Venture capital.
(b) Fixed capital.
(c) Current capital.
(d) Seed capital.                                                                                                                 (1 mark)

97. Which of the following is the backbone of financial plan?
(a) Budgeting                                                                                                                                                                                                                        (b) Capital.
(c) Name of business.
(d) Cost of production.                                                                                                    (1 mark)

98. Corporate venturing is also referred as _________________.
(a) Entrepreneurship.
(b) Intrapreneurship.
(c) Act of starting a new venture.
(d) Offering new products an existing company.                                                (1 mark)

99. Which one of the following BEST explains the importance of a feasibility study for a new venture?
(a) Exploring for potential customers.
(b) Estimating sales.
(c) Determining the viability of a business.
(d) Forecasting the expansion of business.                                                               (1 mark)

100. Which one of the following is a social barrier to entrepreneurship?
(a) Inadequate capital.
(b) Change of currency.
(c) Lack of infrastructure.
(d) Custom of people.                                                                                                    (1 mark)

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