Buss 114: Entreprenuership Question Paper
Buss 114: Entreprenuership
Course:Business Administration
Institution: Kenya Methodist University question papers
Exam Year:2011
FACULTY : BUSINESS AND MANAGEMENT STUDIES
DEPARTMENT : BUSINESS ADMINISTRATION
INSTRUCTIONS Answer Question ONE and any Other TWO Questions
Question 1
In 1991, Trevor was watching a television programme about the AIDS epidemic in Africa. It got him thinking about how information about AIDS prevention might be broadcast to people in a country where there was no electricity and batteries were prohibitively expensive. He quickly came up with a design for a clock work radio. Despite being featured on radio and TV, he could not convince people that it was a commercially viable product. It was only when he teamed up with an entrepreneur, Christopher, and a company called Liberty Life that the radio was produced and marketed. The entrepreneur was able to exploit the innovation in a way the inventor was not able to do. Production begun in 1994 and 120,000 radios are now made each month. Without the entrepreneur, the invention would not have reached the market place.
Required:
a) Explain why Trevor the inventor of the clock work radio was not able to exploit the business opportunity until he teamed up with Christopher the entrepreneur. (10marks)
b) The design of the clock work radio was meant to solve a problem and satisfy a need. Identify the problem and the need in this case and with relevant examples, show how solving a problem and satisfying a need can be turned into a business opportunity (10marks)
c) Differentiate between an innovation and an invention and explain the possible benefits of innovation both to the company and the customer (10marks)
Question 2
a) Entrepreneur is a person while entrepreneurship is a process. Highlight the steps involved in the entrepreneurship process (10marks)
b) Describe the internal and external motivating factors that can contribute to entrepreneurship and small business ownership in your country (10marks)
Question 3
a) Highlight at least five ways in which ideas can be transformed into business opportunities through creativity. (10marks)
b) Define the term intrapreneurship and explain conditions that promote intrapreneurship (10marks)
Question 4
Explain why an entrepreneur would start a partnership form of business ownership as opposed to a sole proprietorship (20marks)
Question 5
a) Selection of a good business location is critical to its success. Briefly discuss five factors that an entrepreneur would consider in the selection of a good business location (10marks)
b) Financial plan is one of the areas entrepreneurs must justify that the proposed business would be self-sustaining in the long-run and that financial adequacy will be available. Identify the financial statements included in the financial plan and their significance to the entrepreneur. (10marks)
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