[14/09, 15:09] +263 77 929 2316: **MUTENDI HIGH SCHOOL*

*BUSINESS ENTERPRISE SKILLS*

*PAPER 2 TEST (6004/02)*

*COMPILED BY MR PINDAHAMA* *(0779292316)*

*JOHANE 17 vs1-12*

*ANSWER ANY FOUR QUESTIONS**

1a. Explain the need for resources in an enterprise(10).

b. Discuss the impacts of external environmental factors affecting a local business enterprise(15).

2a. Explain ways of acquiring and sustainable use of resources(10)

b. Discuss the survival strategies that can be adopted by a local business enterprise(15)

3a. Examine the importance of being ethical in business (12)

b. Evaluate the significance of privatization to the country(13).

4a. Explain the influence of qualitative factors on final investment decisions(10)

b. Assess the importance of ratio analysis in an enterprise(15)

5. Discuss the advantages of different approaches to costing in business enterprise(25).

6a. Analyse the appropriateness of batch production to bakery enterprise(10)

b. Discuss the usefulness of Critical Path Analysis in an enterprise(15)

7a. Analyse the importance of qualitative research in business enterprise (10)

b. Assess the impact of each marketing mix variables to business enterprise (15)

8a. Explain the role of Human Resource Management pertaining to healthy and safety at the work place
(10).

b. Discuss the significance of job evaluation to business enterprise of your choice (15)

9. Assess the benefits of the following techniques in an enterprise:

a. Average Rate of Return(8)

b. New Product Development (8)

c. Boston Matrix (9)

10a. Analyse the laws and regulations that govern business enterprise start-up and operations(12)

b. Evaluate the importance of various external communication methods used in an enterprise(13)

[14/09, 15:09] +263 77 929 2316: MUTENDI HIGH SCHOOL

BUSINESS ENTERPRISE SKILLS (4048/01)

COMPILED BY MR PINDAHAMA 0779292315

17AUGUST 2023

MATEO 25VS26 IWE MURANDAWAKAIPA UNEUSIMBE

1a. Explain the term market dominance(2)

b. Outline any two types of business objectives(4)

c. Explain any two unethical business practices adopted by enterprises in Zimbabwe(4)

2a. Explain any two ways that can be used to add value of the products(4)

b. Describe any two aims of COMESA as an economic bloc(4)

C. Outline any two benefits of value addition to an enterprise(4)

3a. Distinguish between fixed costs and variable costs(4)

b. Draw a well labelled diagram of break even chart(4)

c. Explain any two limitations of holding inadequate stock levels in an enterprise(4)

4a. Outline any two benefits of mode in an enterprise (4)

b. Distinguish between quantitative research and qualitative research(4)

c. Explain any two methods that can be used to gather data in an enterprise(4)

5a. Identify any two methods of qualitative demand forecasting(2)

b. Outline any two benefits of demand forecasting in an enterprise(4)

c. Describe any two ways that can be used to segment market of shoes(5)

6a. Define the term seperate legal entity (2)

b. Outline any two risks that can be associated with the formation of new enterprise(4)

c. Outline any two benefits of a public limited company(4)

[14/09, 15:09] +263 77 929 2316: Mutendi High School

Business Enterprise Skills 6004/01

Revision Exercise 3

Compiled by Mr Pindahama P 0779292316

Mateo 25vs26: IWE MURANDA WAKAIPA UNE USIMBE

1a. Define the term value addition(2)

b. Outline any two ways that can be used to manage inventory in an enterprise(4)

c. Describe any two relocational factors influencing any enterprise(4)

d. Distinguish between fiscal policy and monetary policy(4)

2a. Explain the term unique selling proposition (2)

b. Explain any two importance of packaging to an enterprise(4)

c. Discuss the importance of Maslow' Hierarchy of needs theory(6)

d. Outline any two external factors influencing an enterprise(4).

3a. Distinguish between piece rate and time rate(4)

b. Outline any two features of formal organisational structure(4)

c. Explain the importance of training in an enterprise(4)

d. Draw a well labelled diagram of an organisational chart(4).

5. Explain the following terms:

ai. Private limited company(2)

ii. Public limited company(2)

b. Outline any two advantages of converting a public limited company into a private company(4).

c. Discuss the benefits of multinational company when locating in host countries(6).

d. Discuss the benefits of horizontal integration(6).

6a. Define the term market share(2)

bi. Identify any two types of pricing strategies(2)

ii. Outline any two benefits of Product life cycle(4).

iii.With an aid of diagram, describe the relationship between demand and supply mechanism(6)

c. Assess the benefits of physical markets(6).

d. Discuss the benefits of niche market(6).

7ai. Distinguish between local market and regional market(4)

ii. Explain the term market leader(2).

iii. Outline any two advantages of primary research(4)

iv. Describe any two ways that can be used to present data in Market research(4)

b. Distinguish between field research and desk research in market research(4)

c.Outline any two importance of product portfolio (4).

d. Discuss the benefits of desk research(6)

8a. Explain the term span of control(2)

b. Outline any two advantages of informal organisation(4).

c. Distinguish between leadership and management(4)

d. Outline any two functions of management(4)

9a. Explain the term laissez faire leadership style(2)

b. Outline any two circumstances in which autocratic leadership style may be appropriate(4).

c. Distinguish between McGregor's theory Xand Y leadership style(4)

d. Describe any two advantages of using time rate as a financial method of motivation(4).

10a. Outline any two importance of finance in an enterprise(2).

b. Describe any two external sources of finance used by a bakery enterprise(5).

c. Explain any two components of working capital(4).

d. Describe any two functions of merchant banks(4).

11a. Explain the term economic order quantity (2)

b. Analyse the significance of quality assurance in an enterprise(6)

c. Evaluate the benefits of stock control chat in an enterprise(6)

12a. Explain the term socialist economy(3)

b. Describe any two forms of privatisation(4)

c. Evaluate the importance of commercialisation to the country(6)

13a. Distinguish between vertical integration and lateral integration(4)

b. Outline any two benefits of a sole trader (4)

c. Describe any two problems that can be faced by start-up enterprises(4)

d. Outline any two forms of assistance that can be given to small to medium enterprises by the
government(4)

14a. Using SWOT analysis explain the following abbreviations

i). S........(4)

ii). O.......(4)

b. Describe any two environmental micro elements that can affect an enterprise(4)

c. Evaluate the benefits that can be enjoyed by an enterprise when two milling enterprises integrate(6)

[14/09, 15:09] +263 77 929 2316: MUTENDI HIGH SCHOOL

BUSINESS ENTERPRISE SKILLS (6004/02)

COMPILED BY PINDAHAMA P 0779292316

MATEO 25VS26: IWE MURANDA WAKAIPA UNE USIMBE.

1a. Analyse the importance of various processes of a business plan(10)

b. Discuss the benefits of commercialisation to the various stakeholders in the country(15)

2a. Examine the benefits of functional structure to an enterprise of your choice(10)

b. Assess the significance of any three management theories in modern day management(15)
3a. Describe the various forms privatisation(10)

b. Evaluate the benefits of vertical integration to a shoe manufacturing enterprise(15)

4.Assess the relevance of motivational theories in modern day management(25)

5a. Analyse the benefits of quality control to a furniture enterprise(10)

b. Discuss the significance of lean production in an enterprise(15)

6a. Describe the benefits of virtual marketing in an enterprise(10)

b. Evaluate the importance of product life cycle in an enterprise of your choice(15)

7a. Analyse the factors that can influence the choice of various distribution methods

b. Evaluate the importance of various marketing strategies that can be used by a cellphone
manufacturer(15)

8. Evaluate the importance of the various ways that can used to manage the working capital of the
enterprise(25)

9a. Describe the features of any three economic philosophies affecting the economic system(10)

b. Analyse the importance of command economy to the society and business enterprise(15)

10. Evaluate the impacts of the various economic constraints that can affect the enterprises in your
country (25)

[14/09, 15:09] +263 77 929 2316: MUTENDI HIGH SCHOOL

BUSINESS ENTERPRISE SKILLS PAPER

(O' LEVEL 4048)

COMPILED BY PINDAHAMA P 0779292316

21 AUGUST 2023

MATEO 25VS 26: IWE MURANDA WAKAIPA UNE USIMBE

Discuss the internal and external environmental factors (20)

Internal environment

- directors

- managers
- employees

- owners

- employees committee

- resources.

- vision

-organisational structure

External environment

Micro:

- creditors

- competitors

- banks

- government

- trade unions

Macro:

- political

- economic

- social

- technological

- ecological

- legal

Discuss importance of sustainable use of resources(12)

- resources kept for future use

- resources will not deplete fast

- ghost towns will not be created such as Mhangura

- endangered species will be kept safe to increase population

Explain the need for resources in an enterprise(12)

- establish business

- acquire assets of the business

- acquisition of raw materials

- acquisition of business inventory

- payment of daily expenses such as rent

Discuss the roles of internal and external stakeholders(12)

Internal stakeholders

-Owners/ directors- mobilisation of resources

-Managers- managing the operations of the business.

- employees- carry out daily activities of the business

- employees committee- negotiate on behalf of the workers in terms of salaries and working conditions

External stakeholders

-Creditors- offer goods on credit to the business

- competitors- provide the same goods and service as the business on the market

- government- craft policies that govern business operations

- trade unions- negotiates on behalf of the workers in terms of salaries and working conditions

- society- they buy the goods and services of the business

Discuss solutions to causes of business failure(12)

- training and development of managemt

- proper record keeping such as inventory

- control measures on cash

- take loans and overdrafts

- conduct proper market research

- diversify or increase product range

- advertising business products

- develop new products or introduce new products range

Evaluate the importance of Small to Medium Enterprises (20)

Advantages

- employment creation hence lowering unemployment rate

- infrastructural development such as roads,schools, hospitals

- economic development increase in Gross Domestic Product (GDP)

- contribute to foreign currency through exporting

- improve standard of living for example in growth points

- providing variety of goods

Disadvantages

- exploitation of resources.

- exploitation of customers
- evade paying taxes.

- pollution

- externalisation of funds

- illegal importation of goods

Discuss risk associated with formation of new business(10)

- market risks

- manpower risks

- financial risks

- management risks

- locational risk

- compliance risk

- research risk

Discuss the contents of any two business enterprise documents used in formation of limited
companies(12)

- Memorandum of association

- articles of association

- certificate of incorporation

- certificate of trading

- prospectus

- statutory declaration

Discuss ways of measuring the size of the business(20)

- Sales volume

- volume of output

- number of employees

- number of branches

- market share

- capital employed

- profit maximization

- organogram

Evaluate the importance of unincorporated business enterprise(20)

Advantages

- less capital required

- less legal formalities

- quick decision making

- ownership and control are retained

- flexibility of operations

- privacy

Disadvantages

- unlimited liability

- lacks continuity

- limited amount of capital

- poor decision making

- face stiff competition from the large businesses

- lack knowledge or expertise

Discuss the importance of business plan(20)

Importance

- motivational purposes

- gives sense of direction

- enables equitable allocation of resources

- helps to achieve set objectives

- attracts potential investors

- helps to gain a bank loan

Limitations

- can be window dressed

- time consuming

- ignores qualitative factors

- non starter to managers with poor mathematical back ground

- can be inflexible to change since it follows a rigid hierarchil structure

Explain the management functions in business(20)

- planning

- organizing/ coordinating

-leading/ directing/ supervising

- controlling
Describe the business objectives(8)

- survival

- growth

- profit maximization

- market share

- sales

- corporate social responsibility

Describe components of a business plan (12)

- executive summary

- products

- organisational background eg structure, type of business

- management

- market analysis

- financial plan or forecasts

Identify inflows and outflows (2)

Inflows

- sales revenue

- receipts from debtors

- loans

- dividends from investments

- sales of assets
- revenue from leading assets

Outflows

- payments to creditors

- payments to expenses.

- payments of materials and goods

- acquisition of assets

- loan repayments

List components of working capital(2)

Current assets

- inventory

- receivables

- cash at bank

- cash in hand

- prepaid expenses

Current liabilities

- payables

- bank overdraft

- accruals of expenses

Explain factors to consider when choosing sources of finance(10)

- purpose of the finance

- repayment period

- amount needed

- legal form or size of the business

- collateral security

- cost involved

- importance of gearing

Explain the various sources of finance(20)

Internal sources

- retained profit

- personal savings

- reduction in working capital

- sale of existing assets

- rights issue or sale of shares to the existing shareholders

External sources

- issue of shares

- bank loans

- bank overdrafts

- leasing

- hire purchase

- debenture

- debt factoring

- trade credit
- government grants and subsidies

Discuss ways of managing working capital(20)

- debt factoring

- trade credit

- leasing

- sale and leaseback

- sale of assets

- effective stock management(Just in time)

- use of cash budgets

Explain the importance of income statements(10)

- to ascertain gross profit

- to ascertain net profit of the business

- to measure performance of the business

- to see the profit that can be retained into the business

- to assess the returns of shareholders

- to see out ability to pay debts back to our creditors

- to attract potential investors

Explain the importance of statement of financial position(20)

- to ascertain the value of assets

- to ascertain the value of liabilities

- to see the liquidity position of the business

- to see the viability of the business

- to ascertain the value of working capital

- to acquire loans from banks

- to boost confidence of investors

Discuss the ways of attracting investors(20)

- good corporate governance

- good reputation

- good infrastructure

- favourable government policy

- availability of skilled workforce

- profitability

- good liquidity position

- good business plan

Discuss types of budgets(10)

- sales budgets

- cash budgets

- production budgets

- expenses budgets

Discuss the importance of budgeting(20)

Importance
- for coordination purposes

- for motivation purposes

- for efficient allocation of resources

- facilitates management by exception(MBE approach)

- for controlling purposes

- facilitates effective communication

- for planning purposes

- evaluation of performance

Limitations of budgets

- can be window dressed

- ignores qualitative factors

- time consuming

- demotivate if top down approach is used or if set targets are not achieved

- based on historic data or past data which is outdated

- inflexible to change to suit new trends

[14/09, 15:09] +263 77 929 2316: MUTENDI HIGH SCHOOL

BUSINESS ENTERPRISE SKILLS

O LEVEL 4048/01

NOVEMBER 2018

QUESTION AND ANSWER

COMPILED BY PINDAHAMA P 0779292316

MATEO 25 VS 26: IWE MURANDA WAKAIPA UNE USIMBE

1a. State any two factors that

may contribute to the success of an enterprise(2)

- good availability of capital

- availability of labour

- being innovative

- self confidence

- availability of the market

- availability of land

- availability of technology

- availability of good communication and transport links

b. Identify any two external environmental factors that may affect businesses (2)

- political

- economic

- social

- technological

- physical or environmental

- ecological

- ethical

c. Explain how government policies may promote enterprising in Zimbabwe(4)

- government may reduce taxes so enterprise might want to invest

- giving grants and subsidies

- offer cheaper premises/ factory shells

- training and educating enterprisers

- offering trade exhibitions

- reduce interest rates

- promote exports

d. Outline two risks facing business enterprise (4)

- locational risk

- financial risks

- compliance risks

- research risks

- market risks

- manpower risk

- bad debts

- fluctuations in interest rates, exchange rates and taxation

- climate change

- natural disasters

- change in government policies

- change in consumer tastes

- change in demand and supply

- change in competitors behavior

- change in technology

e. Distinguish between resources and capabilities (4)

Resources are productive assets that a business owns but capabilities are skills available through the
company to perform certain actions
Resources are also available source of wealth owned by the enterprise but capabilities refers to what a
company can do with its existing resources

Resources can be money driven but capabilities can be time driven

Resources can be acquired over short period of time but capabilities can be acquired over longer period
of time

Resources can be land, labour, capital and machines but capabilities can be leadership and personal
skills

f) Describe any two roles of an enterpriser or entrepreneur in business (4)

- scanning the environment

- identifying business opportunities

- mobilizing necessary resources

- proper allocation of resources

- setting up the business

- managing business operations

2a. Identify any two characteristics of a franchise (2)

- one company uses the name of another well established company

- the franchise pays royalties to the franchiser

- central buying

- management is done centrally

b. Outline any two disadvantages of a public limited company (4)

- prone to take over

- too many complicated documents

- selling of shares to the public is expensive

- owner may lose control

- lack of secretes as financial accounts are published to the members of the public.

- slow decision making

- co-ordination problems

- communication problems

- disputes over management procedures

d. Distinguish between incorporated and unincorporated business enterprises (4)

- on incorporated business there is divorce between ownership and control but unincorporated business
the owner owns and controls the business

- incorporated business have separate legal status from their owners but unincorporated business do
not have separate legal identity

- incorporated business have limited liability but unincorporated business there is unlimited liability

- incorporated business sell shares but unincorporated business do not sell shares

- incorporated business there is continuity of existence but unincorporated business there is no

continuity
- incorporated business include private limited company and public limited company but unincorporated
business include sole proprietors and partnership

d. Explain the advantages of being ethical in business (4)

- reduction in customer complaints

- builds good publicity

- earns profits in the long run

- low promotional costs

- minimises legal issus

- easy access to finance

- reduce pressure from lobbying groups

- motivates workers

- reduce labour turnover

- reduce absenteeism

- reduce negative externalities

e. Describe how a business may achieve the following objectives:

i. Growth(2)

- the firm should increase market share and increase the size of the firm

- they may cut the price and increase sales

- mergers and takeovers may promote growth

- ploughing back of profits

- sell unwanted assets to fund expansion

- open up new branches

- through diversification or spread risks

- through vertical and horizontal integration

ii. Survival (2)

- the business may try to fight competition

- sell of assets to keep its creditors satisfied

- reduce costs

- increase revenue

f. State any two causes of business failure (2)

- Lack of finance

- lack of management expertise

- lack of proper record keeping

- lack of good customer care

- lack of experience

- poor location

- lack of focus

- copying others

ii. Suggest solutions to the causes identified in 2(f) (i) above (4)

- sourcing external finance

- training

- proper record keeping

- train and practice good customer care

- be innovative

- acquire skills and experience

- relocate to better premises

- setting of objectives

3a. Identify any three external sources of finance (3)

- bank overdraft

- leasing

- hire purchase

- bank loans

- issues of shares

- debentures

- venture capital

- debt factoring

- trade credits

- community sources

- family and friends

- charities and social enterprises

- subsidies and grants

b. From the following data, prepare a statement of financial position (Balance sheet) as at 31 December
2013(7)

Capital $80000
Purchase $102 000

Bank. $13200

Buildings. 80000

Rent. 4500

Accounts payable 6000

Inventory. 12600

Net profit. 19800

*Statement of Financial position* *as at 31 December 2013*

Non- current assets

Buildings. 80000

Less current assets

Inventory. 12600

Bank 13200

25800

Less current liabilities

Accounts payable. 6000

Working capital. 19800

Capital Employed. 99800

Financed by:

Capital. 80000

Add Net profit. 19800

Capital employed. *99800*

c. Explain any two functions of finance house (4)

- offering loans/ lending

- offering debt factoring services

- offer leasing facilities

- lend short term and long term debts

- offer trade securities

- hire purchase

4a. Identify any two financial methods of motivating employees(2)

- piece rate

- time rate

- salaries and wages

- bonuses

- profit sharing scheme

- stock/share option

- fringe benefits

- performance related pay

- commission

b. State any two Hezberg's hygiene factors (2)

- Company policies and administration

- wages and salaries

- working conditions

- relationship with superiors

- status

- job security
- relationship with subordinates

c. Explain any two characteristics of laissez faire leadership style (4)

- two way communication

- high level of delegation

- workers are allowed to be innovative

- very little guidance from the leader

- high levels of trust on subordinates

(d). Define the following terms:

(i). Span of control (2)

- refers to a number of subordinates reporting to a superior or

- the number of subordinates directly under control of a manager

(ii). Chain of command (2)

- route through which authority is passed down the hierarchy or

- unbroken down line of authority stretching from the top management down to the lower level
managers. It clarifies who reports to whom in an organization.

5a. State any two methods of presenting statistical data (2)

- bar graphs

- pie chats

- tables

-line graphs

- histogram

- pictograms
- sterm and leaf

b. Outline any two advantages of economic integration (4)

- gains in trade

- economies of scale

- good trade relations

- employment opportunities

- political cooperation

- elimination of trade barriers

- efficiency in production within countries

- increase in foreign direct investment

- wide choice of goods

- low prices due to competion

c.) Explain the laws of demand and supply (4)

- the law of demand states that the higher the price, the lower the quantity of goods demanded and the
lower the price, the higher the quantity of goods demanded

- the law of supply states that the higher the price, the more quantity supplied and the lower the price,
the low quantity supplied.

When the quantity of goods demanded and quantity of supply is equal the point of equilibrium can be
reached by the business

d.) Distinguish between local market and global markets (4)

- Local markets trade within a country but global market trade stretches across two or more countries
- local market save small area but global markets save large area

- local market there is less risks but global market high risks for example language

- local market serve local customers but global market serve varied customers

- local market there is less documentation like receipts, quotation, invoice but global market more
documentation like certificate of insurance, certificate of origin, bill of lading

- local market there is local currency but global market use foreign currency

6a.) Identify any two modes of transport widely used in Zimbabwe (2)

- road

- rail

- air

- pipeline

b.) Explain the following Information and Communication Technology (ICT) tools in operations
management:

i.) Computer Aided Design (C.A.D) (2)

- is a computer software that draws items being designed more quickly and allows them to be rotated to
see items from all sides instead of having to draw it several times.

ii). Online billing (2).

- is an electronic payment service that allows you to set up a secure online account to make one time or
recurring bill payments. All bills and transactions are accessed on bill pay websites.

c.) Discuss the importance of holding inventory (stock) in a business (10)

Advantages of holding inventory

- avoids loss of sales

- gains economies of scale that is purchasing

- reduces order costs

- reduce risk of production shortages

- able to meet unforeseen increase in demand

Disadvantages

- storage costs

- security costs

- obsolescence costs

- theft or pilferage

- spoilage and damage

- cash tied up in stocks

- insurance costs