INSTRUCTIONS TO CANDIDATE
1.This paper has TWO sections A and B.
2.Attempt questions in each section as per instructions given in the section.
3.You are provided with a separate answer booklet.
4.Answer all questions in the answer booklet.
5.Marks for each question are indicated in the brackets.
6.Do not write on the question paper.
This paper consists of FOUR (4) 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 (10 Marks)
Attempt ALL questions, each question carries one mark.
1. Which of the following set contains trait of an entrepreneur?
A. Risk taker, calm and persuasive.
B. Persuasive, need for achievement and goal oriented.
C. Calm, hardworking and persuasive.
D. Hard working, imitative and risk taker.
2. The following are the causes of failures in small enterprises except?
A. Mismanagement
B. Poor planning
C. Harsh environment
D. Good policies
3. Business ideas are vital in every business. ________________ is a suitable source of business idea for a grade six graduate.
A. Social media.
B. Shows and exhibition.
C. Journals
D. International conferences
4. Which of the following shows the process of creating a new product?
A. Business model
B. Modelling
C. Creative flexibility
D. Innovation
5. An individual who initiates, creates and manages a new business can be called.
A. A leader
B. A manager
C. A professional
D. An entrepreneur
6. Goods or service reach the market place through?
A. Marketing channels
B. Multilevel
C. Monopolies
D. Multiplication
7. Which of the following is not an inventory in a business?
A. Raw materials
B. Finished products
C. Machines
D. Consumable
8. A Family business owner is always interested to handover the change of his business to ___________.
A. Administration officer
B. Next generation
C. Professional managers
D. Trustees
9. From the list below, identify method which best motivates an entrepreneur to start a new business venture.
A. A desire to be dependent
B. Risk taking
C. Corruption.
D. Financial rewards
10. Which industrial sector promotes small scale businesses and has lower barriers to market entry.
A. Service
B. Manufacturing
C. Distribution
D. Agriculture
SECTION B (40 MARKS)
Attempt ALL questions in this section
11. State FIVE entrepreneurial competencies that enable an entrepreneur to operate a business. (5 Marks)
12. Mention FOUR types of financial documents that are important for a small business enterprise. (4 Marks)
13. What does the acronym SWOT in entrepreneurship stand for? (4 Marks)
14. Employees are the engine behind successful businesses. Business owners must maintain a good relationship with them. Determine FOUR ways that business owners can build a relationship with the employees. (4 Marks)
15. Outline the importance of information communication technology in an enterprise. (4 Marks)
16. During product promotion, list FOUR circumstances which make personal selling a preferred method of selling promotional products. (4 Marks)
17. Identify FIVE gaps that may create a market for business products. (5 Marks)
18. State FOUR reasons why a business plan is a must for a business. (4 Marks)
19. You have been asked to advice on communication. Give the correct sequence in the communication process. (6 Marks)