PRINCIPLES OF ENTREPRENEURSHIP AND MANAGEMENT APRIL 2022 PAST PAPER

MONDAY: 4 April 2022. Morning paper.                                                                                               Time Allowed: 3 hours.

This paper is made up of a hundred (100) Multiple Choice Questions. Answer ALL the questions indicating the letter (a, b, c or d) that represents the correct answer. Do NOT write anything on this paper.

 

  1. Which of the following is a challenge that an entrepreneur could encounter as a result of venturing into business?

(a)            Low competition.

(b)            Uncertainty of income.

(c)            Unlimited profits.

(d)            Self-employment.                                                                                                                                                ( 1 mark)

 

  1. Which of the following statements BEST describes the term “business opportunity”?

(a)            Situation which can be translated to a business activity.

(b)           Business activity that already exists in the market.

(c)            A well-established business that generates large profits.

(d)           A business that attracts many customers.                                                                                                        ( 1 mark)

 

  1. Identify a reason why an entrepreneur could choose a partnership as a business entry option.

(a)            High profits.

(b)            Fast decision-making.

(c)            Separate legal entity.

(d)            Share of risks.                                                                                                                                                     ( 1 mark)

 

  1. What term is used to refer to the personal investment of owners in a business?

(a)            Profits.

(b)            Equity.

(c)            Venture capital.

(d)            Informal capital.                                                                                                                                                   (1 mark)

 

  1. Which of the following is NOT a legal requirement for entrepreneurs?

(a)            Trade licence.

(b)           Tax compliance.

(c)            Infrastructure.

(d)            Environmental requirements.                                                                                                                        ( 1 mark)

 

  1. Which of the following sentences BEST explains a characteristic of Fabian entrepreneurs?

(a)            Imitate technology and techniques innovated others.

(b)            Start a business using their acquired skills.

(c)            Are not interested in growing their business.

(d)            Do not show initiative in implementing new ideas.                                                                                      ( 1 mark)

 

  1. Why do entrepreneurs require to generate new ideas?

(a)            Comply with government policy.

(b)            Ensure availability of resources.

(c)            Improve their skills.

(d)            Products have a limited life cycle.                                                                                                                   ( 1 mark)

 

  1. Identify one challenge associated with buying an existing business.

(a)           The business may be overpriced.

(h)           Lack of experienced employees.

(c)           Previous owners may interfere with the business.

(d)           It is difficult to retain customers.                                                                                                                      ( 1 mark)

 

  1. What do you call wealthy individuals who provide capital to business start-ups in return for part ownership?

(a)           Business incubators.

(b)           Business partners.

(c)            Debt financiers.

(d)           Business angels.                                                                                                                                                   (I mark)

 

  1. Which element of the marketing mix refers to the distribution channels used to reach the market?

(a)           People.

(b)           Processes.

(C)          Place.

(d)           Promotion.                                                                                                                                                           (I mark)

 

What is the MAIN benefit of social entrepreneurship to your country?

(a)           Wealth creation.

(b)           Community development and improvement.

(c)           Increasing regional business activities.

(d)           Creation of employment.                                                                                                                                      ( I mark)

 

  1. Which of the following is a component of the executive summary of a business plan?

(a)            Marketing plan.

(b)           Acknowledgement.

(c)            Table of contents.

(d)           Cover page.                                                                                                                                                          ( 1 mark)

 

  1. What is the best business entry option for an entrepreneur who does not wish to dilute their level of ownership?

(a)            Company.

(b)           Joint venture.

(c)            Partnership.

(d)           Sole proprietorship.                                                                                                                                              (1 mark)

 

  1. Which statement BEST describes the meaning of crowd funding?

(a)            Raising large sums of money from several banks.

(b)           Payment of large sums of money to many people online.

(c)           Raising small amounts of money from a large number of people online.

(d)           Online sending and receiving of money.                                                                                                            (1 mark)

 

  1. Which of the following is NOT a role of an entrepreneur?

(a)           Initiate ideas.

(b)           Offer credit.

(c)           Mobilise resources.

(d)           Make decisions.                                                                                                                                                   ( I mark)

 

  1. Which of the following factors is likely to discourage an entrepreneur from entering a franchising arrangement?

(a)            Lack of customer awareness.

(b)           Less freedom.

(c)            Standardised operations.

(d)           Use of franchisor’s brand name.                                                                                                                           (1 mark)

 

  1. What is the role of government in promoting entrepreneurial culture in your country?

(a)            Creation of an enabling environment.

(b)           Opening up many businesses.

(c)            Generating new ideas.

(d)           Acting as a role model.                                                                                                                                         (I mark)

 

  1. Which component of the business plan contains the goals and objectives of the business?

(a)            Business description.

(b)           Operations and production plan.

(c)            Organisation and management plan.

(d)           Mission statement.                                                                                                                                               ( 1 mark)

 

  1. Identify the form of business ownership option adopted most entrepreneurs in your country.

(a)            Company.

(b)            Partnership.

(c)            Sole proprietorship.

(d)           Franchising.                                                                                                                                                         (1 mark)

 

  1. Which of the following BEST describes a strategy that an entrepreneur could use to retain customers?

(a)            Attractive packaging.

(b)           Advertising.

(c)           Good customer service.

(d)           Good corporate image.                                                                                                                                        (1 mark)

 

  1. Select a factor that could motivate an individual to become an entrepreneur.

(a)            Availability of jobs.

(b)           Skills in identifying risks.

(c)            Desire to work in a big company.

(d)           Opportunity to make a difference.                                                                                                                       (1 mark)

 

  1. Which one of the following is NOT a source of business ideas?

(a)            Failed projects.

(b)           Business plan.

(c)           Customer complaints.

(d)           Current trends.                                                                                                                                                     (I mark)

 

  1. Identify one factor that may discourage small business owners from using debt to finance their business ventures.

(a)            Long repayment period.

(b)           Leads to bad image of the business.

(c)            Lack of collateral.

(d)           Lack of accountability.                                                                                                                                         (I mark)

 

  1. Which of the following BEST describes a study that involves gathering feedback from a sample customer?

(a)            Consumer survey.

(b)           Customer care.

(c)            Questionnaires.

(d)           Interview.                                                                                                                                                             ( 1 mark)

 

  1. Which of the following is a type of entrepreneurship?

(a)            Selling.

(b)           Hustling.

(c)            Franchising.

(d)           Imitating.                                                                                                                                                             ( 1 mark)

 

  1. Which of the following is NOT a major consideration while assessing the viability of a business opportunity?

(a)            Return on investment.

(b)           Skills.

(c)           Infrastructure.

(d)           Demand.                                                                                                                                                              ( 1 mark)

 

  1. Which of the following is an objective of sales promotion?

(a)           Direct distribution of products.

(b)           Increase level of skills.

(c)           Reduce number of competitors.

(d)           Announce product existence.                                 (1 mark)

 

  1. Identify one factor that is driving the growth of entrepreneurship in your country.

(a)            Technological advances.

(b)           Dependent lifestyles.

(c)            Increase in banking activities.

(d)           Cultural blocks.                                                                                                                                                    (1 mark)

 

  1. Which of the following is a characteristic of a good business idea?

(a)            Requires excessive investment.

(b)           Involves high risks.

(c)            Has a long gestation period.

(d)           Easy to exit when necessary.                                                                                                                               ( I mark)

 

  1. What is the BEST form of business ownership for an entrepreneur who wishes to limit their personal liability?

(a)            Partnership.

(b)            Company.

(c)            Sole proprietorship.

(d)            Franchise.                                                                                                                                                            (1 mark)

 

  1. The following are sources of debt finance EXCEPT:

(a)           Personal savings.

(b)           Bank loan.

(c)            Trade credit.

(d)           Debentures.                                                                                                                                                          (1 mark)

 

  1. Identify one step undertaken in the process of launching a new product.

(a)            Write a business plan.

(b)           Contact competitors.

(c)            Screen the product.

(d)           Conduct testing.                                                                                                                                                   (1 mark)

 

  1. Select one advantage of running a small business enterprise from the following:

(a)            Easy to control.

(b)            Experienced management.

(c)            Adequate resources.

(d)            Financial stability.                                                                                                                                                ( 1 mark)

 

  1. What do you call a combination of products offered for sale a business?

(a)            Product line.

(b)            Product breadth.

(c)            Product depth.

(d)           Product mix.                                                                                                                                                         (1 mark)

 

  1. Which of the following inhibits growth of entrepreneurship in your country?

(a)            White collar jobs.

(b)            Corruption.

(c)            Government support.

(d)            Training.                                                                                                                                                               ( I mark)

 

  1. Identify one method of generating business ideas.

(a)            Shows and exhibitions.

(b)            Focus groups.

(c)            Role models.

(d)            Innovation.                                                                                                                                                           (1 mark)

 

  1. Which of the following is the MAIN reason for conducting market research before launching a business?

(a)            Establish demand.

(b)           Establish supply.

(c)            Know your products.

(d)           Know your location.                                                                                                                                             (1 mark)

 

  1. Which of the following BEST explains the meaning of bootstrapping?

(a)            Using limited finances.

(b)           Use of borrowed finances.

(c)            Using personal finances.

(d)           Using finances from many sources.                                                                                                                    (1 mark)

 

  1. Which of the following strategy could be used management to manage the rapid growth of an organisation?

(a)            Sell part of the business.

(b)            Increase cash flow.

(c)            Hire competent employees.

(d)           Reduce sale promotion.                                                                                                                                       (1 mark)

 

  1. Identify one role played top management in an organisation.

(a)            Train supervisory staff.

(b)            Establish policies.

(c)            Routine decision making.

(d)           Link between other levels of management.                                                                                                      (1 mark)

 

  1. The most basic and primary function of management is:

(a)            Staffing.

(b)           Planning.

(e)            Organising.

(d)           Co-ordination.                                                                                                                                                     (1 mark)

 

  1. What do you call the type of skills a manager requires to perform specialised tasks?

(a)            Technical skills.

(b)           Problems solving skills.

(c)            Conceptual skills.

(d)           Work skills.                                                                                                                                                         (I mark)

 

  1. A poor filing system could lead to:

(a)           Compactness of documents.

(b)           Paperless filing.

(c)            Fast data retrieval.

(d)           Duplication of documents.                                                                                                                                   (1 mark)

 

  1. Which of the following BEST explains the process of inspiring employees to work willingly  to  achieve the desired goals?

(a)            Management.

(b)           Directing.

(c)            Persuading.

(d)            Motivation.                                                                                                                                                          ( 1 mark)

 

  1. Identify one challenge associated with the growth stage of a business life cycle.

(a)            Difficulties in attracting staff.

(b)           High cost of promoting the business.

(c)           Managing cash flows.

(d)           Lack of customers.                                (1 mark)

 

  1. The following are steps in the process of controlling as a management function:

(i)             Establish deviation.

(ii)            Measure actual performance.

(iii)           Set standards.

(iv)           Take corrective action.

(v)            Compare actual performance with set standards.

 

Which of the following represents the correct order of steps of the controlling process?

(a)            (ii), (iii), (v), (iv), (i)

(b)           (i), (iii), (ii), (v),     (iv)

(c)            (iii), (ii), (v), (i), (iv)

(d)            (iii), (iv), (i), (ii), (v)                                                                                                                                            ( I mark)

 

  1. Decision-making skills of a manager means:

(a)            Select the best choice among alternatives.

(b)           Direct employees on what to do.

(c)           Understand how a variety of factors are related.

(d)           Deal effectively with conflict.                                                                                                                               ( 1 mark)

 

  1. Identify one step undertaken while handling incoming mail.

(a)            Signing.

(b)           Folding.

(c)            Weighting.

(d)            Sorting.                                                                                                                                                                ( I mark)

 

  1. Which of the following is NOT a method that could be used to manage conflict in an organisation.

(a)            Reporting.

(b)            Encouraging.

(c)            Resolving.

(d)            Preventing.                                                                                                                                                           (1 mark)

 

  1. Which management function involves influencing the behaviour of employees towards achievement of goals?

(a)            Staffing.

(b)            Leading.

(c)            Disciplining.

(d)           Organising.                                                                                                                                                           ( 1 mark)

 

  1. Which title is given to a person who is in charge of and coordinates the activities of a group of employees engaged in related activities within a unit of an organisation?

(a)            Vendor.

(b)            Employee.

(c)            Manager.

(d)           Contractor.                                                                                                                                                           (1 mark)

 

  1. What is a franking machine?

(a)            This machine dampens and seals the flaps of the envelopes.

(b)            It is used to weigh the letters, envelopes and packets.

(c)            It is hired from a post office to print stamps on letters.

(d)           The machine is used for printing addresses on envelopes.                                                                            (1 mark)

 

  1. The process  of  arranging  and  storing  records,  so  that  they  can  be  located  whenever  required  is called

(a)            Indexing.

(b)           Filing.

(c)            Noting.

(d)           Arranging.                                                                                                                                                            ( 1 mark)

 

  1. In what method of filing is duplication avoided but secrecy cannot be maintained?

(a)            Centralised.

(b)           Vertical.

(c)            Decentralised.

(d)           Horizontal.                                                                                                                                                           (I mark)

 

  1. What is defined as a guide to locate the required file?

(a)            Filing.

(b)           Indexing.

(c)            Coding.

(d)           Organising.                                                                                                                                                          (1 mark)

 

  1. Identify one precaution that a manager could take to ensure safety of employees at the work place.

(a)            Install burglar-proof door.

(b)           Ensure enough parking space.

(c)            Provide employees with uniforms.

(d)           Install fire extinguishers.                                                                                                                                      (1 mark)

 

  1. Which department is responsible for recruiting and hiring the right employees in an organisation?

(a)            Finance department.

(b)            Supply chain management.

(c)            Planning and strategy.

(d)           Human resource management.                                                                                                                          ( 1 mark)

 

  1. Who among the following is a middle level manager?

(a)            Chief executive.

(b)           Supervisor.

(c)            General manager.

(d)           Finance manager.                                                                                                                                                 ( I mark)

 

  1. Why should in-coming mail be opened with caution?

(a)            Ensure safety of enclosures.

(b)           Not to damage the envelope.

(c)            Ensure efficiency in opening mail.

(d)            Safeguard against loss of mail.                                                                                                                             (l mark)

 

  1. Which of the following BEST describes employees’ qualifications and characteristics required to  perform a certain job?

(a)            Job description.

(b)           Job analysis.

(c)            Job specification.

(d)           Job design.                                                                                                                                                           (l mark)

 

  1. Which of the following is NOT a task undertaken in the process of filing business documents?

(a)            Indexing.

(b)            Retrieving.

(c)            Recording.

(d)            Duplication.                                 (1 mark)

 

  1. Identify one role played top level management in an organisation.

(a)           Assigning jobs.

(b)           Motivation.

(c)            Training staff.

(d)           Monitoring the environment.                                                                                                                              ( I mark)

 

  1. What is the MAIN reason why big organisations issue gate passes to visitors?

(a)            Identification.

(b)           Safety.

(c)            Recording.

(d)            Directing.                                 (1 mark)

 

  1. Why do managers need decision making skills?

(a)            Direct employees.

(b)            Solve problems.

(c)            Enhance control.

(d)            Improve efficiency.                                                                                                                                              ( 1 mark)

 

  1. Which of the following is a step undertaken in the planning process?

(a)            Monitoring performance.

(b)           Designing jobs.

(c)            Forecasting.

(d)           Setting up an organisation structure.                                                                                                               ( I mark)

 

  1. Lower level management may also be referred to as:

(a)            Operational management.

(b)           Strategic management.

(c)            Tactical management.

(d)           Direct management.                                                                                                                                              ( I mark)

 

  1. Which of the following is a factor that determines the number of levels of management in an organisation?

(a)            Location.

(b)           Size.

(c)            Number of managers.

(d)           Number of branches.                                                                                                                                           (I mark)

 

  1. Which of the following represents the skills a manager requires to assign authority and responsibilities to employees?

(a)            Leadership.

(b)           Motivation.

(c)            Interpersonal.

(d)           Delegation.                                                                                                                                                           (1 mark)

 

  1. Which of the following BEST explains why an organisation would choose to operate a decentralised filing system?

(a)            Uniformity of filing procedures.

(b)            Less duplication of files. ‘

(c)            Fast retrieval of documents.

(d)           Improved control.                                                                                                                                                ( 1 mark)

 

  1. Identify the MAIN purpose of good leadership in an organisation.

(a)            Provide direction.

(b)           Expansion of organisation.

(c)            Efficient management.

(d)           Performance appraisal.                                                                                                                                        ( I mark)

 

  1. Which of the following BEST explains why departments are important in an organisation?

(a)           Assign managers.

(b)           Manage office space.

(c)            Avoid conflict.

(d)           Specialisation.                                                                                                                                                      (1 mark)

 

  1. Which of the following is NOT a strategy that could enhance health and safety in an organisation?

(a)           Hiring competent and trained employees.

(b)           Adequate supervision and control.

(c)            Proper personal hygiene.

(d)           Installing fewer machines.                                                                                                                                   ( 1 mark)

 

  1. At which level of management in an organisation would strategic thinking skills be MOST required?

(a)            Middle level.

(b)           Top level.

(c)            Lower level.

(d)            Supervisory level.                                                                                                                                                (1 mark)

 

  1. With reference to management functions, identify one step in the organising process.

(a)            Division of work.

(b)            Setting objectives.

(c)            Budgeting.

(d)            Motivating staff.                                                                                                                                                  (1 mark)

 

  1. Which of the following may NOT be a consequence of conflict in an organisation?

(a)            Hostility.

(b)           Withdrawal.

(c)            Competition.

(d)           Motivation.                                                                                                                                                          (I mark)

 

  1. Which of the following is a procedure undertaken for both outgoing and incoming mail in an organisation?

(a)            Posting.

(b)           Weighing.

(c)            Distribution.

(d)           Recording.                                                                                                                                                           (1 mark)

 

  1. Which of the following BEST explains the process of identifying, attracting and hiring employees with the right skills and qualifications?

(a)            Employment.

(b)           Recruitment.

(c)            Screening.

(d)           Staffing.                                                                                                                                                               (1 mark)

 

  1. Which of the following could be established a large organisation to offer customer support?

(a)            Feedback centre.

(b)           Customer department.

(c)            Call centre.

(d)           Marketing centre.                                                                                                                                                  ( I mark)

 

  1. Identify one step that could be undertaken in the process of hiring the right employees?

(a)            Training.

(b)            Performance appraisal.

(c)            Interview.

(d)            Compensation.                                                                                                                                                     (1 mark)

 

  1. The following are roles performed managers:

(i)            Implementing policies and strategies.

(ii)           Routine day to day decision-making.

(iii)          Representing the organisation to the outside world.

(iv)          Responsible for major innovations.

(v)           Appointment of staff.

Which of the following represents a set of roles performed middle level managers?

(a)            (i), (ii), (iii)

(b)            (i), (iv), (v)

(c)            (ii), (iii), (v)

(d)           (iii), (iv), (v)                                (1 mark)

 

  1. Which of the following is NOT a method of classifying documents for filing?

(a)            Methodical.

(b)           Geographical.

(c)            Chronological.

(d)           Numerical.                                                                                                                                                            ( I mark)

 

  1. The steps in outgoing mail handling are:

1. Recording of mail.

2. Collecting of mail.

3. Inserting the mailing material.

4. Preparing the mail.

5. Sealing and stamping.

6. Posting.

 

(a)            4,  1, 5, 2, 3, 6.

(b)           4,2,  1, 3, 5, 6.

(c)            4, 3, 2,   1, 5, 6.

(d)           4,  1, 5, 3, 2, 6.                                (1 mark)

 

  1. Which of the following is an advantage of using emails to engage customers?

(a)            It can only be sent to one customer at a time.

(b)            It takes too long to be received the customers.

(c)            It can be sent to many customers at once.

(d)            It is too expensive.                                                                                                                                               ( 1 mark)

 

  1. Why would an organisation maintain an automated filing system?

(a)            Reduces need for storage space.

(b)           It is relatively expensive.

(c)            There is no risk of unauthorised access.

(d)           It results in duplication of files.                                                                                                                           ( 1 mark)

 

  1. Which of the following is NOT a characteristic of an effective leader?

(a)            Visionary.

(b)           Encourage innovation.

(c)            Resistant to change.

(d)           Team-leader.                                                                                                                                                        (1 mark)

 

  1. Identify a reason why delegation skills are important in management.

(a)            Allows proper allocation of responsibility and authority.

(b)           Demotivates employees.

(c)            Employees lack interest in the work assigned.

(d)           It may reduce performance levels.                                                                                                                     ( 1 mark)

 

  1. Which of the following is NOT a technique that managers could use to resolve conflict in an organisation?

(a)            Smoothing.

(b)           Compromise.

(c)            Confrontation.

(d)           Training.                                                                                                                                                              (1 mark)

 

  1. Which of the following statements BEST defines the term “conflict”?

(a)            It is a disagreement between individuals arising out of a difference in thought process, attitudes, understanding, interests and other factors.

(b)           A discussion in which people expresses different opinions about something.

(c)            A discussion or argument carried out between two teams or sides.

(d)            Consideration of a subject a group.                                                                                                              (1 mark)

 

  1. The process of organising consists of the following steps EXCEPT:

(a)            Determining and defining the activities required for the achievement of planned goals.

(b)           Establishing standards for measuring work performance.

(c)            Grouping the activities into logical and convenient units.

(d)           Assigning the duties and activities to specific positions and people.                                                          ( 1 mark)

 

  1. Which of the following is not a function of top management:

(a)            To appoint departmental and other key executives.

(b)           To coordinate the activities and efforts of different departments.

(c)            To assign jobs to workers and to make arrangements for their training and development.

(d)           To analyse, evaluate and deal with the environmental forces.                                                                      (1 mark)

 

  1. Which of the following functions entails bringing together the materials and human resources required for the achievement of desired goals?

(a)            Planning.

(b)           Organising.

(c)            Leading.

(d)           Controlling.                                                                                                                                                          (1 mark)

 

  1. Which of the following category of skills refers to the ability and knowledge in using the equipment, techniques and procedures involved in performing specific tasks?

(a)           Conceptual skills.

(b)           Human skills.

(c)            Writing skills.

(d)           Technical skills.                                                                                                                                                   (1 mark)

 

  1. Which role of a manager requires that they gather information, disseminate information or act as a spokesperson for the company?

(a)            Interpersonal role.

(b)            Informational role.

(c)            Decision role.

(d)           Analytical role.                                                                                                                                                     (1 mark)

 

  1. The following are qualities of good managers EXCEPT:

(a)            Makes difficult decisions.

(b)           Has the ability to listen.

(c)            Uses micromanagement.

(d)            Encourage teamwork.                                                                                                                                          ( I mark)

 

  1. The following are characteristics of successful entrepreneurs EXCEPT:

(a)            Creativity.

(b)            Perfectionist.

(c)            Risk-taking.

(d)           Professionalism.                                                                                                                                                   (1 mark)

 

  1. Which component of the business plan details how an entrepreneur will generate income?

(a)            Business description.

(b)           Operations and production plan.

(c)            Customer analysis.

(d)            Financial plan.                                                                                                                                                      (I mark)

 

  1. Which of the following statements BEST defines the term “staffing”?

(a)            Attracting candidates to fill a position in an organisation.

(b)           Process of choosing the most suitable person for a current position.

(c)            Managerial function of recruitment, selection, training, promotion and compensation of personnel.

(d)            It is an instrument of developing employees improving their skills and developing their behaviour. ( 1 mark)

 

  1. Which of the following statements BEST defines a “job description”?

(a)            The name of the position to be filled.

(b)           The scope of work to be performed the candidate.

(c)            Various job-related activities to be performed the candidates assigned the job.

(d)           It is the summary of all the tasks, roles and responsibilities with respect to a particular job.                                ( 1 mark)

 

  1. The following are strategies to retain employees EXCEPT:

(a)            Discourage professional development.

(b)           Give recognition and rewards.

(c)            Offer incentives.

(d)           Build a culture employees want to be part of                                                                                                  ( 1 mark)

 

  1. Who is responsible for collecting mail form the post office?

(a)            Security officer.

(b)           Messenger.

(c)           Gardener.

(d)           Receptionist.                                                                                                                                                         ( 1 mark)

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