Entrepreneurial Behaviour and Start-up Procedures of Small enterprises November 2011 Past Examination Question Paper – KNEC
This Past Paper examination was examined by the Kenya National Examination Council (KNEC) and it applies to the following courses:
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Diploma in Entrpreneurship Development – Module I
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THE KENYA NATIONAL EXAMINATIONS COUNCIL
DIPLOMA IN ENTREPRENEURSHIP DEVELOPMENT
MODULE I
ENTREPRENEURIAL BEHAVIOUR AND
START-UP PROCEDURES OF SMALL ENTERPRISFS
November 2011
Time: 3 hours
SECTION A
Answer any TWO questions from this section.
1. (a) Explain the entrepreneurial traits that a successful entrepreneur portrays. (10 marks)
(b) Entrepreneurs are faced with the challenge of transition in their businesses. Explain the ways in which an entrepreneur may overcome this challenge. (10 marks)
2. (a) Cultural background has an impact on an entrepreneur’s performance. Explain how such background may affect performance. (10 marks)
(b) Makeba, the proprietor of Sunko Restaurant, opened her doors to the public but within six months the restaurant was closed down. Explain how she may have contributed to the closure. (10 marks)
3. (a) Mr. Muraya, the director of Red Fresh Fries 2nterprises is faced with fierce competition from upcoming rivals. Advise him on the strategies that he may adopt to cope with the situation. (10 marks)
(b)Explain the factors that may influence an entrepreneur to act unethically in a business enterprise. (10 marks)
SECTION B
Answer any THREE questions from this section.
4. (a) The growth of micro-financial institutions in Kenya has led to an increase in seed money advanced to small business owners. Explain the criteria used by these institutions in making lending decisions. (10 marks)
(b) Ms Magdalene was advised by a management consultant to undertake a feasibility study before starting a business enterprise. Explain the benefits that she may derive from this exercise. (10 marks)
5. (a) Break—even analysis is a tool used by entrepreneurs to determine the production level at which revenue equals cost. Explain the limitations of this technique. (10 marks)
(b) Explain the ways in which entrepreneurs may benefit from the introduction of the fibre optic cable in Kenya. (10 marks)
6. (a) Explain how an upcoming entrepreneur may minimise business failure . (10 marks)
(b) Proper storage of correspondence and records is critical to the success of a business enterprise. Explain the benefits that may arise from maintenance of business records. (10 marks)
7. (a) Frank Kija, an automobile engineer, is looking for a location for his new motor vehicle repair business. Advise him on the factors to consider when selecting a suitable site for the business, (10 marks)
(b) Mrs. Ogutu, an entrepreneurship expert, has advised Mrs. Makelo to start a sole proprietorship business. Highlight the reasons for such advice. (10 marks)