Download as docx, pdf, or txt
Download as docx, pdf, or txt
You are on page 1of 21

Training, Teaching and Learning Materials

Occupational Standard
BASIC CLERICAL WORKS LEVEL I

Learning Guide
Unit of Competence: Develop Understanding of Entrepreneurship
Module Title: Developing Understanding of Entrepreneurship
LG Code: BUF BCW1 14 0812
TTLM Code: BUF BCW1 M14 1212

LO1: Describe and explain the principles, concept and scope of entrepreneurship

1
TTLM Development Manual Date: Aug 17,2022
Compiled by: ch. M Acct department
Training, Teaching and Learning Materials
Meaning and Scope of Enterprising
Information Sheet – 1
Practically all undertakings can be referred to as enterprising, i.e. idea identification, planning,
implementation, successful completion of an activity and receiving the rewards.
Enterprising women and men exhibit the following characteristics:
E Energy: - Working hard, but in a smart way, is key to being enterprising.
N Need to achieve: - This approach enables you to work harder than ordinary people.
T Task oriented: - To gain satisfying rewards, tasks have to be well executed and completed on time.
E Empathy: - You try to feel what they are feeling. You are able to put yourself in their shoes. In the
case of owning a business enterprise you are able to imagine how a potential customer would feel.
R Resourcefulness: - Identification, mobilization and effective utilization of both the physical and the
nonphysical resources needed in undertaking a venture are very important in managing the enterprise.
P Planning: - Through planning, judgments regarding profits or losses will be made.
R Risk-taking:-Success begins with the decision to move in the desired direction.
I Innovation: - Gathering information is an important input for being innovative.
S Skills: - You should therefore evaluate the talents and level of skills you have and how they can be
harnessed to realize an enterprise.
I Independence: - Independence means freedom from dependence on others.
N Networking: - Networking is important because through this activity, enterprising people obtain
information and learn from feedback they receive from others.
G Goal oriented: - Enterprising people are results-oriented experts at setting their own goals.
 Entrepreneurial Self-Management
1. Complete High Priority Tasks First.
2. Use of Time.
3. Delegate Tasks to Subordinates.
Delegating tasks is a good way to build staff morale and allows the entrepreneur to focus on other
essential tasks.
4. Group Tasks.
5. Maintain a Clean Office.
6. Be Ready to Say “no!”:- Saying “no” takes courage and tact.
7. Have Daily Objectives.
2
TTLM Development Manual Date: Aug 17,2022
Compiled by: ch. M Acct department
Training, Teaching and Learning Materials
8. Don’t try to do too much.
9. Control Paper Flow:-Keep important papers and throw away the rest.
10. Plan Effectively: - By taking time to plan, you will actually save time.
11. Be Proactive: - Don’t avoid making decisions.
 Entrepreneurial Function in Business
a) Entrepreneurs are the prime movers in the business or social sectors. They are the ones who identify
gaps in the market and then turn these gaps into business opportunities.
b) It is the entrepreneur who obtains finances for the business.
c) To manage the business.
d) The function of bearing the uncertainties and risks of the business.
e) Through the entrepreneurial function, many jobs are created in the economy.
 Importance of Entrepreneurship
1EMPLOYMENT CREATION: Entrepreneurs create employment for themselves and other people.
They are employers and assist in solving the unemployment problem.
2. LOCAL RESOURCES: When entrepreneurs utilize local resources, the value of these resources
increases.
3. DECENTRALIZATION AND DIVERSIFICATION OF BUSINESS: Entrepreneurs are able to
identify business opportunities, and locate these businesses in suitable areas, including rural areas.
4. PROMOTION OF TECHNOLOGY: By being creative, entrepreneurs are able to contribute to
the utilization and development of appropriate technology.
5. CAPITAL FORMATION: Entrepreneurship increases capital formation and investment in new
and expanding businesses.
6. PROMOTION OF AN ENTREPRENEURIAL CULTURE: By projecting successful images,
entrepreneurs become role models for other people.
Entrepreneurial Resources
Entrepreneurs use the following economic and human resources to help implement their ideas.
ECONOMIC RESOURCES
Money. Equipment.
HUMAN RESOURCES
Energy.
Skills.
3
TTLM Development Manual Date: Aug 17,2022
Compiled by: ch. M Acct department
Training, Teaching and Learning Materials
Knowledge.
Time.
 Motivation and Attitudes
Highly motivated entrepreneurs control their environment. A positive mental attitude helps motivate
them to focus on desired activities and events and the results they hope to achieve. Motivation comes
from having a positive mental attitude.
 Setting Entrepreneurial Goals
a. Your entrepreneurial goals should be your own. You should set goals for things you really want
to achieve.
b. Goals should be specific. They should be clear, concrete, and written. Writing down your goals
will help youto clarify in your own mind what you really want.
c. Goals should be measurable. You need to be able to know when you have reached a goal. The
easiest goals to measure are probably financial
d. Goals should be set for a definite time period.
e. Goals should be set both short-range and long-range goals.
 Competencies for Successful Entrepreneurship
There are three major competencies for successful entrepreneurship. These may be defined as:
A. Knowledge:-has been defined as a set or body of information stored, which may be recalled at an
appropriate time.
B. Skill:-has been defined as the ability to apply knowledge and can be acquired
Or developed through practice
C. Traits:-have been defined as the personal entrepreneurial characteristics
(PECs)
 Important Entrepreneurial Traits
1. Hard Working 2. Self-Confident
3. Builds for the Future 4. Profit-Oriented
5. Goal-Oriented 6. Persistent
7. Copes with Failure 8. Responds to Feedback
9. Demonstrates Initiative 10. Willing to Listen
11. Sets Own Standards 12. Copes with Uncertainty
13. Committed 14. Builds on Strengths
4
TTLM Development Manual Date: Aug 17,2022
Compiled by: ch. M Acct department
Training, Teaching and Learning Materials
15. Reliable and Has Integrity 16. Risk-Taker
 Leadership Styles
Leadership qualities must be self-developed because these qualities vary from person to person.
Knowing that you are personally responsible for your leadership ability will help you to strive to make
improvements. There is no single best way to be a leader. Entrepreneurs are individuals who have
developed their own personal styles of leadership. The following three styles of leadership are
commonly used:-1. the “iron fisted” or autocratic leader makes decisions and gives orders without
asking the opinion of employees;
2. the “let’s vote” or democratic leader gives group members a voice in decisions;
3. the “hands-off” or laissez-faire leader leaves all decisions up to the group members.
Most leaders use a combination of styles, depending on the group and the situation. Leaders in the
business world have two main responsibilities:
a. task responsibilities, or “getting the job done”, and
b. people responsibilities, or maintaining employee morale.
 Entrepreneurial Personality
To enhance your entrepreneurial personality undertake the following:
Step 1: Self Analysis
Step 2: Develop a Personal Plan of Action
Step 3: Put into Operation
Step 4: Check on Yourself Periodically
The Role of Business Entrepreneurship in Society
It is now generally accepted that the private sector is more cost-effective and efficient in performing
certain basic economic functions than the public sector. Entrepreneurs play a key role in business and
the private sector. Most of the wealth in a society or nation is created by business activity.
1. Products and Services
The fundamental economic function of business is to make and distribute the products and services
that people want. Business entrepreneurs fulfill the role both to discover consumer demands and to do
whatever is required to satisfy them
2. Employment
Business ventures are the major providers of “real” jobs – i.e. employment for people who need and
want to work. The level of gainful employment is crucial to a nation’s well-being.
5
TTLM Development Manual Date: Aug 17,2022
Compiled by: ch. M Acct department
Training, Teaching and Learning Materials
3. Income
Through its employment creation, business provides an income base to its
Stake holders in terms of salaries, wages, profits and taxes.
3.1 Wages, Salaries and Profits
The task of business to enable the earning of wages, salaries and profits is of crucial importance in
order to pay taxes and to provide disposable income to finance consumer spending and savings
(investment capital).
4. Taxes
Without taxes on the incomes of individuals and businesses, social institutions and services cannot be
afforded.
5. Disposable Income
Disposable income refers to income after taxes available for spending on consumer goods, or for
savings.
5.1 Consumer Spending
Consumer spending is not only required for basic needs satisfaction, but also to create a demand for
the production of goods and services.
5.2 Personal Savings
Personal savings represent income not allocated to immediate consumption expenditure.
6. Investment in Productive Assets
Business investment funding is generated either through provisions, retained profits borrowings or
through sale of equity. For non-profitable business such sources of funding will become limited. A
business needs capital investments to create productive capacity: innovative technology,
modernization, and the expansion of its productive assets.
7. National Well-being
Most of the capital goods, commercial and social services as well as technological know-how required
to satisfy our needs come from business activity, i.e. through economic development of privately
owned resource
Importance of Entrepreneurship
1. EMPLOYMENT CREATION: Entrepreneurs create employment for themselves and other
people. They are employers, and hence assist in solving the unemployment problem.

6
TTLM Development Manual Date: Aug 17,2022
Compiled by: ch. M Acct department
Training, Teaching and Learning Materials
2. LOCAL RESOURCES: When entrepreneurs utilize local resources, the value of these resources
increases.
3. DECENTRALIZATION AND DIVERSIFICATION OF BUSINESS: Entrepreneurs are able to
identify business opportunities, and locate these businesses in suitable areas, including rural areas.
4. PROMOTION OF TECHNOLOGY: By being creative, entrepreneurs are able to contribute to
the utilization and development of technology.
5. CAPITAL FORMATION: Entrepreneurship increases capital formation and investment.
6. PROMOTION OF AN ENTREPRENEURIAL CULTURE: By projecting successful images,
entrepreneurs become models that can be copied by young people.
Advantages and Disadvantages of Self-Employment
1. ADVANTAGES OF WORKING FOR YOURSELF
Those who choose self-employment as a career usually do so for five basic reasons: personal
satisfaction, independence, profits, job security and status.
a. Personal satisfaction:- To some people, the chief reward of working for yourself is personal
satisfaction. Personal satisfaction means doing what you want with your life. Being self-employed will
enable you to spend each work day in a job you enjoy.
b. Independence: Another advantage of being a self-employed person is independence. Independence
is freedom from control of others. You are able to use your knowledge, skills and abilities as you see
fit. When you are self employed you are driven by spirit of self-reliance and individual survival.
c. Profit and income: One of the major rewards expected when starting a new business is profit. Profit
is the amount of income left after all expenses have been paid. Profits go to the owner of a business.
d. Job security: Many enterprises are created by persons who are seeking the kind of job security that
is not available elsewhere. Job security is the assurance of continued employment and income.
e. Status: Status is a term used to describe a person’s social rank or position.
Self-employed persons receive attention and recognition through customer
contact and public exposure.
f. Flexibility: Individuals who become self-employed have options to start
enterprises in all categories and sizes depending on their capabilities.
2. CONSTRAINTS OF WORKING FOR YOURSELF

7
TTLM Development Manual Date: Aug 17,2022
Compiled by: ch. M Acct department
Training, Teaching and Learning Materials
In addition to knowing the advantages of self-employment, you should also be familiar with the
disadvantages: possible loss of invested capital, uncertain or low income, long hours and routine
chores.
a. Possible loss of invested capital: One risk of being self-employed is the possibility of losing your
invested capital.
b. Uncertain or low income:Another disadvantage of owning your business is
the possibility of uncertain or low income. Unlike the salaries of employed workers, profits usually
vary from one month to another.
c. Long business hours:Entrepreneurs do not work just forty hours a week;
they do not punch time clocks.
d. Routine chores: Running your own business may involve routine chores you do not like to do. You
also need to be a jack of all trades. This can sometimes be a challenge if you do not join with others in
a partnership or you cannot raise sufficient funds to allow you to employ other people.
e. Risks:You stand the best chance of success if you are prepared to take calculated risks. Calculated
risks allow you to estimate the chances of failure or success without taking a gamble. Very low risk
ventures have less rewards in terms of profits and may lead to limiting your ideas and their follow-up.
f. Time involvement: Starting a small business takes a lot of hard work. In fact, it may consume most
of your waking hours in the first few years.

g. People contact:How do you feel about working with people? Do you really enjoy it, or do you wish
you could always work alone? Or are you somewhere in between? There are really three types of
people contact in a small business:
 Weaknesses and Strengths of Small Enterprises
SMALL ENTERPRISE WEAKNESSES:
o Financial limitations Staffing problems
o Higher direct costs Lack of credibility
SMALL ENTERPRISE STRENGTHS:
o Personal touch Greater motivation
o Greater flexibility Less bureaucracy
LO2: Discuss how to become entrepreneur

8
TTLM Development Manual Date: Aug 17,2022
Compiled by: ch. M Acct department
Training, Teaching and Learning Materials
The Decision to Become an Entrepreneur
Information Sheet – 1
what are the forces or factors that stimulate a person to venture into entrepreneurship?
1. Change from current situation
2. Displacement event
3. Role of the credible example
Creativity
Increasing awareness of one’s environment
Brainstorming
New and original ideas
Why Should you Generate Business Ideas?
Here are just a few:-
You need an idea To respond to market needs
Changing fashions and requirements To stay ahead of the competition
To exploit technology Because of product life cycle
To spread risk and allow for failure
Sources of Business Ideas
1. Hobbies/Interests
2. Personal Skills and Experience
3. Franchises
4. Exhibitions
5. Surveys
6. Complaints
7. Brainstorming
Identifying Business Opportunities
Seeing, seeking and acting on opportunities is one of the characteristics of successful entrepreneurs. It
is also the basis for starting and maintaining successful.
What is a business opportunity?
A business opportunity may be defined simply as an attractive idea or proposition that provides the
possibility of a return for the investor or the person taking the risk.
Characteristics of a good business opportunity
9
TTLM Development Manual Date: Aug 17,2022
Compiled by: ch. M Acct department
Training, Teaching and Learning Materials
To be a good business opportunity, it must fulfill, or be capable of meeting, the following criteria:
• Real demand: responds to unsatisfied needs or requirements of customers whohave the ability to
purchase and who are willing to buy
• Return on investment, provides acceptable returns or rewards for the risk andeffort required
• Be competitive: be equal to or better (from the viewpoint of the customer) than other available
products or services
• Meet objectives: meet the goals and aspirations of the person or organization taking the risk
• Availability of resources and skills: the entrepreneur is able to obtain the necessary resources.
LO3: Discuss how to organize an enterprise
How Do I Organize an Enterprise? Businesses may be selected on the basis of costs, environmental
impact, or supply of raw materials.
Economics, population and competition are important factors to consider when selecting a business
location. These factors will also help in selecting a promising city or town in which to locate the
business.
General Factors in Selecting a Business Location
ECONOMICS
POPULATION
COMPETITION

LO4: Discuss how to operate an enterprise


Hiring and Orienting New Employees
Information Sheet – 1
A. The Hiring Process
Hiring a new employee is as important to the entrepreneur as it is to the person hired.
1. Sources of Potential Employees
2. Selection Procedures
B. Orientation Process
1. Four Basic Rules of Orientation
• Prepare the employee
• Present the work
• Try the employee out under supervision

10
TTLM Development Manual Date: Aug 17,2022
Compiled by: ch. M Acct department
Training, Teaching and Learning Materials
• Follow-up
2. Six factors in preparing for the orientation of a new employee
• Know the job
• Have a current employee serve as a mentor
• Prepare a simple job breakdown
• Set a training timetable
• Arrange the work area
• Evaluate new employee’s work on a daily basis
C. Employee Considerations
Pay Plans. To employees, wages are an important part of their jobs. They expect their pay to reflect the
skills and energy they put into a business. If entrepreneurs want to attract and keep good workers, they
must take into consideration the rate paid by other firms for a similar job.Fringe Benefits. Of all fringe
benefits, those for sick leave and holidays are the most widely appreciated by employees.
 Managing Time and Resources
To be successful, all entrepreneurs must be good managers. However, most managers are not
entrepreneurial . It is also true that entrepreneurs are busy people, but they have the skill of managing
their time and resources to accomplish their business Goals.
Time Management Techniques
Time management is similar to having good work habits. There are several ways in which this can be
done.
Identify specific daily goals. Self-motivation.
Establish deadlines. Don’t do everything.
Work in blocks of time. Ask questions before beginning work
Be action-oriented. Plan in detail for tomorrow.
The Product Life Cycle
A new product progresses through a sequence of stages from introduction to growth, maturity, and
decline. This sequence is known as the product life cycle and is associated with changes in the
marketing situation. This has an impact on the marketing strategy and the marketing mix.
Introduction stage
In the introduction stage, the entrepreneur seeks to build product awareness and develops a market for
the product. The impact on the marketing mix is as follows.
11
TTLM Development Manual Date: Aug 17,2022
Compiled by: ch. M Acct department
Training, Teaching and Learning Materials
• Product branding is established
• Pricing may be low to build up market share rapidly
• Distribution (Place) is selective until consumers show acceptance of the product
• Promotion is aimed at product awareness and to inform potential consumers about the product.
Growth stage
In the growth stage, the firm seeks to build brand preference and increase market share.
• Product quality is maintained and additional features may be added.
• Pricing is maintained or increased when the demand is high
• Distribution is diversified
• Promotion is aimed at a broader audience
• Promotion is extended to broader public
Maturity stage
At maturity, the strong growth in sales diminishes. There may be competition with similar products.
The primary objective is to defend the market share and to maximize profit
• Product features may be enhanced to make the difference with competitors
• Pricing may be decreased due to competitors
• Distribution needs to be extended and incentives offered
• Promotion will emphasis product features
Decline stage
As sales decline the entrepreneur has different options
• Maintain the product by adding new features
• Reduce costs and prices and continue to offer the product
• Stop producing the product.

LO5: Discuss how to operate an enterprise or develop


one’s own business plan
The Structure of a Business Plan
Information sheet-1

When developing any business plan it is necessary to be convinced that planning is a key aspect in the
business development process. Planning assists businessmen or women to articulate both their long-
12
TTLM Development Manual Date: Aug 17,2022
Compiled by: ch. M Acct department
Training, Teaching and Learning Materials
term and short-term goals for the proposed new business. Specifically a business plan does the
following:
• Increases the probabilities of business success.
• Clearly defines the activities for the successful operation of the business.
• Identifies all the resources available to the business and how they will be combined to obtain
maximum benefits.
• Identifies standards of performance for each segment of business operations which can be compared
with actual performances.
This serves as a control mechanism to keep the business operations on course.Personal background:
The first item in a plan should be a written description of the applicant’s
Personal background, including name, address, e-mail, phone number, education, family status, sex,
age and physical status.
Business experience:- The entrepreneur’s ability to produce the product and capture the market needs
to be stated. With this in mind, personal background motivations and experience are in the end most
important criteria for judging the viability of a business.
Business structure and description:- For a business in the formative phase a statement of the
adequacy of its ownership, legal form and capitalization structure and a description of the production
process are necessary.
The market competition:- In this section the following should be provided: the size of the market, its
growth potential and the estimated share of the business in the market; current and potential new
competition; opportunities for expanding to other locations.
Production or selling process for products or services: Providing detailed technical specifications
may be unnecessary. A description of the products and/or services of the business should provide a
reasonable idea of what the company sells. The most important item in this section is a description of
why the applicant’s product or service is better than that of its competitors.
Financial status: The capital required to start the business needs to be indicated, together with assets
and liabilities, showing the proportion contributed by the owner. Anyone starting a business must have
some amount of cash equity. The higher the proportion of personal cash and assets committed to the
business, the less likely the borrower will be ready and willing to give up the task.

13
TTLM Development Manual Date: Aug 17,2022
Compiled by: ch. M Acct department
Training, Teaching and Learning Materials
If you have to borrow money or get credit from a financing source, there are three types of documents
that could substantiate your financial status or reputation: a personal bank statement and banker’s
reference letter, personal tax returns and business reference letters.
A personal statement of financial status lists all personal assets at their current market value and
obligations owed to family and non-family creditors. Tax returns for previous years may not be
available, but if you have them they can be used to show how much income you have been earning.
Reference letters from professionals, suppliers, practicing business entrepreneurs, etc. are used by a
potential entrepreneur as proof of good reputation and reliability. The financial part of the plan
describes how the loan will be used in the business and how it will be repaid. It also becomes a
commitment that the business will be operated with a view to attaining certain results. Lastly, it serves
as a documented promise to repay the loan on schedule.
 Lay out of a Business Plan
A. Cover page
B. Table of contents
C. Executive summary
D. Information about the owner or promoter of the business
E. Description of the business idea and market
F. Marketing plan
G. Legal form
H. Start-up capital and resources
I. Organization and staff
J. Business operation and costs
K. Financial plan
L. Appendices

14
TTLM Development Manual Date: Aug 17,2022
Compiled by: ch. M Acct department
Training, Teaching and Learning Materials
1. Assignment 50%
I. Choose the best answer
1. Enterprising women and men exhibits the following characteristics except:
A. Task oriented B. Assess the risk C. Planning D. Skills
2. Which one is not entrepreneurial self management?
A. Immediate need for job
B. Delegate tasks to subordinates
C. Have daily objectives
D. Plan effectively
3. Which one of the following is not examples of manufacturing business?
A. Textile mill products
B. Wood products
C. Automotive dealers
D. Primary metal industries
4. Enterprising means
A. Implementation of a business venture
B. Delegate task s to subordinates
C. Goal oriented
D. “A” and “B”
5. Which one of the following is not the importance of entreprneurship?
A. Employment creation
B. Increase the value of local resources
C. Promotion of technology
D. None of the above
6. One of the following is human resource except
A. Equipment
B. Energy
C. Skills
D. Knowledge
7. Which one of the following is not 1stprocedure for analyzing risk situation?
A. Clarify the alternatives
15
TTLM Development Manual Date: Aug 17,2022
Compiled by: ch. M Acct department
Training, Teaching and Learning Materials
B. Assess the risk
C. Determine goals and objectives
D. None of the above
8. Setting entrepreneurial goals should be
A. Measurable
B. Specific
C. Set both short term and long term goals
D. All of the above
9. One of the following is not the factors that entrepreneurs to develop positive mental
Attitude.
A. Avoid negative thoughts and ideas
B. Be action oriented and result oriented
C. Having a positive mental attitude
D. All of the above
10. Which one of the following is not important entrepreneurial traits ?
A. Persistent
B. Risk taker
C. Responsibility is limited
D. Profit oriented
11. A negotiation needs to show the personal attributes except
A. Profit oriented
B. Integrity
C. Empathy
D. Patience
12. Which one of the following is not true about a nature of negation /
A. Negotiation is systematic in process
B. Negotiation is finite
C. Both participants anticipate and react during the process of negotiation
D. None of the above
13. Which one is an example of technical skill?
A. Mechanics
16
TTLM Development Manual Date: Aug 17,2022
Compiled by: ch. M Acct department
Training, Teaching and Learning Materials
B. Time management
C. Leadership
D. Financial management
14. One of the following is not an entrepreneurial characterstics?
A. Self confident
B. Making eye contact
C. Optimistic
D. Flexible

15. The role of business entrepreneurship in society is


A. Income
B. Employment
C. Taxes
D. All of the above
16. Which of the following is not economic goals of the society?
A. Freedom of choice
B. Stable growth
C. Too much paperwork
D. Economic justice
17. Which one is a contribution of entrepreneurs to economic goals ?
A. Advance technology
B. Improvement in the quality of resources
C. Increase of the quality of productive resources
D. All of the above
18. Which one of the following is not an advantage of self employment?
A. Can be creative
B. Too much paperwork
C. Controls work environment
D. Independence
19. .which One of the following is not weakness of small enterprise?
A. Financial limitation
17
TTLM Development Manual Date: Aug 17,2022
Compiled by: ch. M Acct department
Training, Teaching and Learning Materials
B. Staffing
C. Less bureaucracy
D. Lack of credibility
20. Why an entrepreneur should generate business idea?
A. To exploit technology
B. To spread risk and allow for failure
C. Because of product life cycle
D. All of the above
21. One of the following is not source of business idea?
A. Mass media
B. Meet objectives
C. Franchises
D. Exhibition
22. Which one of the following is not characteristics of a good business opportunity?
A. Complaints
B. Real demand
C. Be competitive
D. Availability of resources and skills
23. Why entrepreneurs use creativity ?
A. To solve every day problems
B. To update products
C. To make use of limited resources
D. All of the above
24. is the process of taking a creative idea and turning in to a product .
A. Entrepreneur
B. Innovation
C. Creativity
D. None of the above
25. What should entrepreneurs know about potential customers
A. Know where the customer buys C. Know when the customer buys
B. Know what the different customer group wants D .All of the above
18
TTLM Development Manual Date: Aug 17,2022
Compiled by: ch. M Acct department
Training, Teaching and Learning Materials
26. Which one is the marketing mix?
E. Promotion B. Price C. Product D. Place E. All of the above
27. Which on of the following is not step in process of conducting a market survey?
E. Define market survey objectives C. Work out details of the market survey
F. Identify your competitors D. Select samples
28. Which one is not correct ?
E. Sole proprietorship is terminated up on the death of the owner
F. The partnership is terminated up on the death of the owner
G. The cooperative has a life of its own
H. Each member of the cooperative is not fully liable for the debts of the cooperative
29. Where can equity capital be obtained?
A. Personal saving B. Friends C. Partners D. All of the above
30. Which one of the following is not a factor in preparing for the orientation of a new employees?
A. Know the job C. Testing applicants skills
B. Preparing a simple job breakdown D. Set a training time table E. All
31. One of the following is not time management techniques?
A. Identify specific daily objectives C. self motivation
B. Selection procedures at the time of hiring D. Establish deadlines E. All
32. Which one is the last product life cycle?
A. Decline B. Maturity C. Growth D.Introduction
33. One of the following is not indirect cost
A. Rent for the office premises
B. Raw material cost
C. Salary for the bookkeeper
D. Interest on the bank loan
E. Telephone costs
34. An asset that can be used for a long period of time more than a year is called?
A. Current asset B Fixed asset C. Long term liability D. Net worth
35. The benefit of a business plan is
A. Business planning helps the company to formulate objectives and goals clearly.
B. Business plan takes in to consideration the environmental factors.
19
TTLM Development Manual Date: Aug 17,2022
Compiled by: ch. M Acct department
Training, Teaching and Learning Materials
C. Business plan aims at the long-range plan rather than short-range plan.
D. Business plan integrates the company plan with the national plan and priorities.
E. All of the above.
36. When a business plan is written?
A. When thinking of going in to business
B. Before starting the business.
C. At the time of loss occure.
D. When updating the business is required
E. All except “C”
37. A business plan is written to assist except :
A. Obtaining financing from outside sources.
B. Guiding the opening of a business.
C. Showing your business has chances of success.
D. The length of the business plan will depend on the nature of the business.
E. None of the above.
38. Which one is not contained in business plan?
A. Reference books.
B. Financers
C. Products
D. Equipment
E. Location
39. is any plan that works for a business to look ahead, allocates focus on key
Points and prepare for problems and opportunities .
A. A business plan
B. Long range plan
C. Forms of Business
D. Training programs
E. None

20
TTLM Development Manual Date: Aug 17,2022
Compiled by: ch. M Acct department
Training, Teaching and Learning Materials

21
TTLM Development Manual Date: Aug 17,2022
Compiled by: ch. M Acct department

You might also like