Entre 432:Business Planning Question Paper
Entre 432:Business Planning
Course:Business Administration
Institution: Kenya Methodist University question papers
Exam Year:2012
KENYA METHODIST UNIVERSITY
END OF 2ND TRIMESTER 2012 (EVENING) EXAMINATIONS
SCHOOL : BUSINESS AND ECONOMICS
DEPARTMENT : BUSINESS ADMINISTRATION
UNIT CODE : ENTR 432
UNIT TITLE : BUSINESS PLANNING
TIME: 2HRS
INSTRUCTIONS: Answer Question ONE and ANY Other TWO Questions.
QUESTION ONE
JOSEPHINE BUSINESS PLAN
When Josephine drew up her business plan, she was certain it would help her get financial support. Josephine is in the process of putting together a monthly magazine directed towards professional women in the workplace. The objective of the periodical is to provide information useful to women who are pursuing careers.
The first issue is schedule to go to press in 60 days. Some of the articles included in this issue are "motivation in the extra-activities" "What you need to know about glooming for success", and financial management. Do it like the experts." A section also is denoted to successful women at work. It is titled "Women in the dessert." Other features include a question and answer section that responds to letters and enquiries from readers the first issue’s question were submitted by a group of women executives, each of whom had been asked to help get the column started by sending in a question? A stock market section that reviews industries or companies and points out the benefits and risks associated with investing in them and a column on the state of the economy and the development or trends expected over the next 12 months.
Josephine business plan consisted of six parts, a summary, a business description, a production segment, organizational structure, a milestone schedule segment, and an appendix. When it was returned to her with the rejection letter, the financial institution wrote, "without a marketing segment, attention to critical risks and financial segment, this plan is in complex and cannot be favorably reviewed by us if you would provide us with this additional information and submit the rewritten plan within the next 45 days we will be happy to review the plan and give you our opinion within 2 weeks.
a) What should Josephine put in the marketing segments? What type of
information will she need? (12marks)
b) For the Critical-risks assessment segment, what key areas does Josephine have to address? Discuss TWO of these. (8marks)
c) For the financial segment, what suggestions would you make to Josephine regarding the kinds of information to include? Be a specific as possible. (10marks)
QUESTION TWO
Mr Martin would want to establish a min supermarket in Eastand Suburb. For him to secure financial support from commercial bank. As his consultant explain clearly what he should include in each of the following parts of a business plan.
Cover letter
(3marks)
Cover page
(2marks)
Executive summary
(5marks)
Business description
(4marks)
Milestone section
(3marks)
Harvest strategy section
(3marks)
QUESTION THREE
"It is well established that you can`t raise money without a business plan…. A business plan is a work of art in its own right. It`s the document that personifies and expresses once firm. Each plan, like every snowflatter must be different. Each is a separate piece of art. Each must be reflective of the individuality of the entrepreneur. Just as you wouldn`t copy someone else`s romancing techniques so should you see to distinguish your plan for its differences" Joseph R. Mancuso, How to write a winning business plan. Considering Mancuso statements.
a) Explore the planning pitfalls that plagues many new ventures. (8marks)
b) Discuss briefly the importance of a business plan and describe the benefits derived from it. (12marks)
QUESTION FOUR
Salema enterprise is doing extremely well in profitability but has a great concern how to calculate the break-even points. The average selling price of all the components is Ksh 475 per unit. The fixed costs in year 2012 is Ksh. 654,095. The variable cost per unit is Kshs 219.50. Determine.
a) Salama`s ventures break-even point both in units and in Ksh. (10marks)
b) Illustrate the calculated break-even point graphically. (7marks)
c) Highlight two assumptions that entrepreneurs need to make when
computing break-even point above. (3marks)
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