School of Business & Leisure

PROGRAMME:

BA (Hons) BM/ITM/EBL/IFB/A&F

Academic Year: 2022

Level: Year 1
Module Name: Venture Creation
Coursework 2: TEST
Date: 10 October 2022

Time: 14:00 to 16:00 hours

Marks: 100 Duration: 2 hours

Instructions

1. There are TWO Sections in this paper

2. Answer all questions in Sec A and B
3. Write legibly in grammatical English

Page 1 of 8
SECTION A: 15 MARKS
Multiple choice questions

The total number of products and services produced and supplied within the borders of a
country within one year is measured by the:

A. Gross national index

B. National production level
C. Gross domestic product
D. Gross domestic index

1) A small business manager must master functions to ensure successful running of a

business; these functions are:
A) Buy and sell goods/services at a high marginal profit
B) Organise the efficient operation of tasks
C) Plan, organise, lead and control the various business functions
D) All of the above

2) The maximum number of employees, allowed for a business to be classified as a

micro business is:
A) 10 Employees
B) 5 employees or less
C) 10 employees or less
D) 25 employees or less

Page 2 of 8
3) Corporate entrepreneurship is defined as:
A) The creation of a business or a business within an existing large business, by
using new ideas and opportunities.
B) The development of a value adding process through adjusting existing ideas.
C) The creation of corporate companies that uses the resources of the existing
company to develop products
D) The development of a business unit that uses new resources to generate new
ideas

4) Which term correctly describes the following definition: An arrangement whereby

one person/business grants another independent party the right to sell the
business’s products/services according to certain guidelines.
A) Agency
B) Franchise
C) Joint venture
D) Government grant

5) Key success factors that usually contribute to a successful entrepreneur are:

A) Honesty, bravery, expertise and Financing
B) Personality, Skills and connections
C) Finance expertise, connections and integrity
D) Personal qualities, management skills, External factors and aptitude

6) Personal characteristics of an entrepreneur are?

A) Planning and management skills
B) Commitment to business and willingness to take risks
C) Knowledge of competitors and willingness to take risks
Page 3 of 8
 D) Commitment to business and management skills
7) The following are values of an entrepreneur except_________________
A) Employment creation
B) Solving social problems
C) Capital formation
D) Money Laundering

8) The responsibility to fully understand who, where and what your competitors are,
is that of the:
A) General management function
B) External relations function
C) Human resources function
D) Marketing function

9) Being market orientated means an Entrepreneur:

A) Knows who their competitors are and how to please them
B) Focuses on the product that they provide to the target market
C) Knows who his/her target market is and what their needs are and how to
exploit them profitably
D) Knows the target market well but focuses on the product supplied

10) Nicky is an employee in an employee in Hillary Boutique. He suggested that they

should use off-cuts of the fabric to cover ordinary shoes with the same fabric of
which the wedding gown is made. Nicky could be classified as an _____________
A) Intrapreneur
B) Small business manager
C) Entrepreneur
D) Franchisor

Page 4 of 8
11) As an entrepreneur you must be aware of which of the following external factors:
A) Economic conditions and political and legislative variables
B) Political and Tax consequences of expenditures
C) Tax consequences and physical variables
D) Technological consequences

12) Which of the following is not an example of a Franchise?

A) Mc Donald’s
B) Kentucky Fried Chicken (KFC)
C) Mug & Bean
D) Mascom

13) Personal weaknesses can be addressed by:

A) Solely focusing on your strengths
B) Avoiding areas of weakness
C) Adopting a suitable business plan to enhance your strengths
D) Personal development and attending courses

14) Which term describes the following definition the best: ‘manual work that can be
learned, such as becoming an electrician’
A) Knowledge
B) Expertise
C) Skills
D) Qualifications

Page 5 of 8
SECTION B: 80 MARKS (Answer all questions)
1. Sally is an excellent cook and baker. She is currently studying at a college and realised
that there is no place on campus to purchase healthy eats. After doing the necessary
market research she identified that the students are interested in healthy eats. She
decided to open a small kiosk that sells healthy meals, cooked by her-self. Nothing like
this has been done before, therefore she will have to purchase all necessary equipment
and hire the required space. It is now expected of you to:

a. Define the term ‘entrepreneur’ -An entrepreneur is a person who starts

his/her own business, is creative and innovative, is willing to take risks, and
is responsible for growth. (5 Marks)

b. Discuss whether or not, Sally would be regarded as an entrepreneur.

Motivate your answer. YES Sally will be regarded as an entrepreneur as

(15 Marks)

2. Compile a table indicating the differences and the similarities between an entrepreneur
and a small business manager. (20
Marks)

ENTERPRENUER SMALL BUSINESS MANAGER

Takes risks Does not want to take risks

Is creative and innovative No creation and innovation

Page 6 of 8
Owns a business Manages his/her own business

Is responsible growth Is interested in growth

Page 7 of 8
3. Discuss any 5 personal characteristics of an entrepreneur and explain why these
characteristics are important. (20 Marks)

4. Discuss any 5 external factors affecting Enterprises. (20 Marks)

Page 8 of 8