ENTREPRENEURSHIP

SEPT 2012

PART A

QUESTION 1
Corporation unlimited by shares: 1. COMPANY LIMITED BY SHARES A company having a share capital may be incorporated as a private company (identified through the words Sendirian Berhad or Sdn. Bhd. appearing together with the companys name) or public company Berhad or Bhd appearing together with the companys name). The requirements to form a company are: (i) A minimum of two subscribers to the shares of the company (Section 14 CA); (ii) A minimum of two directors (Section 122); and (iii) A company secretary who can be either : An individual who is a member of a professional body prescribes by the Minister of Domestic Trade Cooperative and Consumerism; or An individual licensed by the Companies Commission of Malaysia (SSM) Both the director and company secretary shall have their principal or only place or residence within Malaysia.

QUESTION 2 Main items in business plan are:

a) b) c) d) e) f) g) h)
4

Executive summary; Market analysis; Marketing and sales strategies; Services or product line; Organisation and management; Funding request; Financials; and The appendix.

Question 3
Networking: Is both an outcome of past relationship strategy and a resource for future strategy

Question 4
Main advantages of franchising: 1. Training & Guidance 2. Proven track record 3. Brand-name appeal 4. Financial assistance

Question 5
Main factors need to be considered: 1. Basic feasibility of the venture 2. Competitive advantages of the ventures 3. Buyer decision in the venture 4. Marketing of the goods & services 5. Production of the G & S 6. Staffing decision in the venture 7. Control the venture 8. Financing the venture

PART B

Question 1 (a)
Importance of networking: 1. Develop trust 2. Create independent situation 3. Source of creativity 4. Build confidence 5. Reduce bureaucracy 6. Increase information

Question 1 (b)
Barriers in building strategic networks: 1. Physical 2. Emotional 3. Negative 4. Psychological 5. Behavioral

Question 2(a)
Compare & Contrast Sole Proprietorship Partnership

Question 2(b)
Personal funds

Stock market

Family & friends

Sources of capital
Government Loan Retirement accounts

Bank/financial institution

Question 3 (a)
According to Wheelen and Hunger (2000), there are five basic steps in the strategic planning process:

Step 1 - Examine the internal and internal environments of the venture. Step 2 - Formulate the ventures long-range and short-range strategies. Step 3 - Implement the strategic plan. Step 4 - Evaluate the performance of the strategy. Step 5 - Take follow-up action through continuous feedback

Question 3(b)
Factors influence organizations strategic planning:

PART C

Question 1
Define buying an existing business Discuss the steps & processes involved

Question 2
Factors leads to new business ventures failed: 1. Managerial Problems 2. Product/Market problems 3. Financial Difficulties