INSTRUCTIONS TO CANDIDATES 1. This paper has three sections A,B and C. 2. You are provided with a separate answer booklet. 3. Marks for each question are as indicated. 4. Do not write on the question paper. This paper consists of SEVEN (7) printed pages Candidates should check the question paper to ascertain that all pages are printed as indicated and that no questions are missing SECTION A: 20 MARKS Attempt ALL questions, each question carries one mark. 1. You are part of team expected to give a presentation on importance of customer feedback to a business. Which of the following statement would you not include in the presentation? A. It assists in customer classification. B. It helps measure consumer satisfaction. C. It gives insights for a better customer experience D. It helps a business to have high customer retention. 2. From the list below, identify a capability necessary for setting up and managing a successful business enterprise. A. Procrastination B. Imitating C. Marketing Management D. Fair remuneration. 3. The following are promotional strategies that can be used by an entrepreneur to promote business products that are facing stiff competition except? A. Advertising B. Dispatching C. Social media D. Road shows 4. An organisation requested you to explain the elements of communication in the correct sequence. Choose which sequence is correct. A. Sender, Recipient, Feedback, Business message B. Sender, Feedback, Business message, Recipient. C. Sender, Business message, Recipient, Feedback. D. Sender, Recipient, Business message, Feedback 5. Employees in a business have basic rights in a business. ______________ is a basic right of employees in a business enterprise. A. Employees have the right to participate in political party politics. B. Employees have the right to use business resources for their personal needs. C. Employees have the right to file legal complaints against their employer without being punished in any way by their employer. D. Employees have the right to prioritize their personal interests. 6. Choose the set that contains types of shares that a business can sell to willing investors. A. Cumulative, Non-participating preference share, treasury bills and debentures. B. Redeemable, Participating, Non-cumulative preference and premium bonds C. Non-convertible preference shares, Cumulative, Non-participating preference share and debentures. D. Redeemable, Participating, Non-cumulative preference and Convertible shares. 7. Which one of the following does not justify reasons why it is important that an entrepreneur prepares a business plan? A. It protects potential businesses from competition from other businesses. B. Enables potential entrepreneurs to assess viability of their business support unit. C. Enables identification of employee’s needs, skills they should possess, task they will perform and methods of remunerations. D. Assist financial needs and sources of funds. 8. Identify which among the following is a competency in a business that facilitates business operations. A. Being non proactive. B. Convey high integrity and honesty. C. Ability to evade compliance. D. Being risk averse. 9. It is important to prepare departmental and or business budgets because it_________. A. Gives you control over your money B. Helps to fight competition. C. Helps attract and maintain customers. D. Makes it easier to input technology. 10. Innovation strategies are beneficial to business owners because they assist in _________. A. Establishing direction. B. Diverging priorities C. Imitating operations. D. Making many decisions 11. Identify which of the following is not a benefit associated with building a loyal customer base? A. Drive repeat business. B. Customer differentiation. C. Increase revenue D. Create brand ambassadors. 12. You have been appointed to the position of human resource manager in the business. Identify the third step in the problem solving process. A. Evaluate the options B. Identify the issues. C. Select options. D. Monitor and evaluate. 13. A business plan contains one of the following of chapters. A. Business description. B. Coordination C. Planning and management D. Executive summary. 14. Choose from the sets below the correct stages in a consumer decision making process. i. Problem recognition. ii. Purchase decision. iii. Post purchase decision. iv. Information search and evaluation A. i, iii, iv and ii. B. i, iv, ii and iii. C. ii, iv, iii and i. D. i, iv, iii and ii 15. Identify which is a responsibility of ordinary shareholders in a company. A. Ordinary shareholders can initiate liquidation due to business debts. B. Ordinary shareholders share the company dividends before preferential shareholders. C. The owners of the ordinary shareholders earn dividends in perpetuity. D. The ordinary shareholders do not benefit from the residual claim in the event of liquidation 16. You have been requested to prepare a guide on a feasibility study. Which of the following would be included in the guide? A. Executive summary B. Organization plan C. Defining the goals and objectives. D. Roadblocks and alternative solutions 17. __________________ is a characteristic used in market segmentation. A. Demographic B. Topographic C. Infrastructure D. Physiographic 18. Which of the following would you employ to expand market for your product and services in your county? A. Create a plan to enter the market. B. Follow competitor’s trend C. Complain to the authorities. D. Maintain your usual tactics 19. The following are non-wages motivational practises that a business can apply to enhance performance except? A. Paid offs. B. Sick leaves C. Better working conditions D. Free staff career progression. 20. The process of developing new products that over time takeover the market is referred to as? A. Promotion B. Marketing and distribution C. Sales and production D. Creative and innovation SECTION B: (40 MARKS) Attempt ALL questions from this section 21. Motivating employees is a critical aspect of any successful business venture. List THREE measures that maybe taken to motivate employees. (3 Marks) 22. Mention TWO threats in a business environment. (2 Marks) 23. You have been asked to function as a human resource personnel in a business in an acting capacity. Identify THREE duties you would be expected to perform. (3 Marks) 24. Identify THREE principles of communication. (3 Marks) 25. Identify FOUR methods that would be used by a