REPUBLIC DU CAMEROUN REPUBLIC OF CAMEROON

Paix – Travail – Patrie Peace- Work - Fatherland

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MINISTRE MINISTRY
DE L’ ENSEIGNEMENT SUPERIEUR OF HIGHER EDUCATION
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COMMISSION NATIONALE D’ORGANISATION NATIONAL COMMISSION FOR
ES EXAMEN THE ORGANISATION
OF THE EXAMS
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Field: Common PAPER

Specialty: ALL HND SPECIALTIES
Option: ALL HND OPTIONS
Credit Value: 1
Exam duration: 2HOURS
Paper Code: ECE21
NATURE OF PAPER: written

Paper: ENTERPRISE CREATION AND ENTREPRENEURSHIP

Instructions:
this paper carries two sections
You are required to attempt all the questions
Only non-programable calculators are allowed

SECTION A: ENTREPRENEURSHIP (34MARKS)

1. Development requires resources but resources themselves can’t ensure development. Discuss the
statement in the light of role of entrepreneur in the economic development of the country.
10mks
2. What are the 5 C's of entrepreneurship? 10mks
3. What are 3 challenges of entrepreneurship? 4mks
4. How can teaching entrepreneurship and innovation be developed at universities? 10mks

SECTION B: GENERAL ECONOMICS (33MARKS)

1. Consider the table below relating to the production combination of two (2) goods produced by a country.
Combination Output of goods A Output of goods B

1 400 400

2 380 350

3 340 250

4 0 0

a) Draw a production possibility curve using the information from the table above 5mks
 b) i. State Four assumptions on which the curve is based 4mks
ii. What name is given the shape of the PPC curve above and why? 1mks
c) What is the opportunity of increasing the output of goods A from 340 units to 380 units? 2mks
d) Consider goods A to be a Consumer good and goods B a capital good. Between combination 2 and 3,
which of the combination represent full employment and high standard of living in :
i) The short run
ii) The long run 5mks
2. Determine the equilibrium price and quantity given the following equation
-Qd = 50 – 3P and Qs = 10 + 2P (6 marks)
a. Given the demand and supply function
Qd = 100 – 6P and Qs = 28 + 3P where P is the price of computers measured in fcfa
i. Develop a demand and supply schedule given that prices starts from 0 to 10 (4marks)
ii. Consider a new equilibrium price at 6 frs. Determine the price elasticity of demand and interprete
the result (5 marks)
iii. What type of good will have a negative income elasticity of demand (1 mark)
iv. Distinguish between arc elasticity and point elasticity of demand stating their formulas. 4mks

SECTION C: Company Law (33MARKS)

Business is very vast and happens to be the most interesting idea that attracts individuals these days.
Mr ateh has his eyes fixed on financial companies i.e the act of receiving deposits and granting loans
to customers, among other activities. He has all the capital to start his business and goes through a due
process of registration to enjoy certain privileges previewed by law.

One of mr Ateh’s customer is a business tycoon who is in to import and export. He needed to ship in
some goods on credit and Mr Akeh;s bank needs to give a letter to confirm the future payment . The
whole procedure went well. Before this transaction, the business tycoon had issued a document
promising to pay his landlord after his international deal.

Work Required

a. Name the different types of registered companies. 4mks

b. What is a company? Give details on the requirements for registration. 5mks
c. What is the name of the type of bank created by Mr Ateh? 1mk
d. Away from receiving deposits and granting loans, what other functions can be carried out by e.
Mr Ateh bank? 4mks
e. Explain the statement ‘’he has all his capital to start his business’’. 2mks
f. What are the privileges previewed by law to be enjoyed by a registered company? 3mks
g. State and define the name of the letter issued by Mr. Ateh’s bank. 3mks
h. Can the landlord use this document of promise to settle other debts? Why? 2mks
i. What does “promising to pay” signify and is it valid? 2mks
j. From your answer above, Name other types of documents of that nature. 3mks
k. Point out at least four characteristics of the documents mentioned above. 4mks