Buss 114/Buss 221: Entreprenuership Question Paper
Buss 114/Buss 221: Entreprenuership
Course:Business Administration
Institution: Kenya Methodist University question papers
Exam Year:2013
KENYA METHODIST UNIVERSITY
END OF 3''RD ''TRIMESTER 2013 (DAY) EXAMINATION
SCHOOL : BUSINESS AND ECONOMICS
DEPARTMENT : BUSINESS ADMINISTRATION
UNIT CODE : BUSS 221/114
UNIT TITLE : ENTREPRENEURSHIP
TIME: 2 HOURS
Instructions: Answer question one and any other two questions.
Question One
CASE STUDY: MUTUKU’S ICE-CREAM VENTURE.
Duncan Mutuku grew up in Makueni the second of Seven Children. He spent the first few years after learning school serving in the Kenya Navy. In his twenties, he moved through a range of jobs including taxi driving and selling Ice-cream in Mombasa. However, he realized he wanted more out of life. At an early age he experienced his first taste of entrepreneurship in order to earn money for a much wanted bike, he applied for a newspaper round. Being told there were no rounds available, he went door to door to ask if people in the neighborhood wanted papers delivered. This research established that there was demand and enabled him to get the job.
One key factor in building his business is Dancan’s ability to recognize and seize opportunities. In his early thirties he bought an ice cream van for Kshs. 200,000. He built this into Dancan’s super ices, with a fleet of vans and a business turnover of Kshs. 2 million per year. During the 1980’s, he spotted that the government was helping unemployed people by paying their rents. He used surplus profits from the Ice-cream business to buy and convert houses into bedsits for rent. This guaranteed revenue from the government. To finance setting up a chain of care homes, he sold his Ice-cream business and almost every other asset he owned. The homes eventually sold for 46 million. Duncansbusiness empire now includes the health club chain, hotels, bar and more recently a chain of span. His empire is now valued at over 300 million making him one of the wealthiest people in the region.
Discuss four entrepreneurial qualities exhibited by Mutuku in his business that earned him great success.
(8mks)
Explain to Mutuku the benefits of changing his sole proprietorship business to a limited company.
(6mks)
Mutuku employed creative methods of financing his business. Outline three sources of finances that an entrepreneur can use in order to finance his business venture.
(6mks)
Explain why it would be important for Mutuku to use a business plan.
(5mks)
Identify the indicators of good planning in Mutuku’s business. (5mks)
Question Two
Explain the difference in the following types of entrepreneurs.
Political entrepreneurs
Intrapreneurs
Social entrepreneurs
Opportunistic entrepreneurs
Craftsmen entrepreneurs
Fabian entrepreneurs.
(10mks)
State and explain measures that the government has undertake to ensure survival of entrepreneurship in Kenya.
(10mks)
Question Three
Discuss the five Cs that financial institutions have to consider before lending money to entrepreneurs.
(10mks)
Research has shown that small enterprises fail before the title year. Discuss measures that should be undertaken to ensure small business survival.
(10mks)
Question Four
Discuss factors that an entrepreneur has to consider in determing the location of an enterprise.
(7mks)
Differentiate between an entrepreneur and a business person. (3mks)
Briefly discuss the process of analyzing or screening a business idea. (5mks)
Explain five reasons whey financial institutions are reluctant to finance small scale businesses.
(5mks)
Question Five
"Entrepreneurship is the act of creating or growing a business through innovative and risk assuring management" Explain the concept as used to explain the characteristics of entrepreneurs.
(10mks)
Entrepreneurship has been found have tremendous benefits both to the individual and to the country as a whole. Enumerate and explain the importance of entrepreneurship to both the individual engaging in business activities and the country as a whole.
(10mks)
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