CITY COLLEGE OF COMMERCE EDUCATIONAL COMPLEX

(CCCMANKON)
PRE-MOCK EXAMINATION
DECEMBER ADVANCED LEVEL
CANDIDATE NAME

SUBJECT NAME ENTREPRENEURSHIP

TWO and HALF HOUR

INSTRUCTION TO CANDIDATES
Answer any FOUR questions.
All questions carry equal marks
Non programmable calculators are allowed.
You are reminded of the necessity of good English and orderly presentation of your work.

1. The economy of any nation enjoys variety of new products thanks to innovative abilities of entrepreneurs. Key
characteristics of entrepreneurial firms include creativity. Innovation and risk taking. In Cameroon, the
government has put some measures in place to promote entrepreneurs.
a. Explain what it means by proactive approach to entrepreneurs and state two benefits of being proactive as an
entrepreneur. [7marks]
b. Explain four measures by which the government of Cameroon can promote entrepreneurs. [8mark]
c. Discuss four [4]ways through which the government benefits from entrepreneurial activity. [10marks]

2. MASOMA realized after 3 years of being an entrepreneur that he needs to take a course in leadership so as to
develop skills to effectively manage his business.
a. Explain how entrepreneurs differs from leaders (7marks)
b. Explain three leadership styles MASOMA will need as a leader. (8marks)
c. Explain the concept of motivation and propose 3 measures MASOMA can adopt to motivate his staff.
(10marks)

3. After having conceived and plan the execution of his business, MOSI consider going for eternal sources of
financing to finance his business. NFC bank agrees to grant him a loan of 6000,000 CFA reimbursable after 6
years at an interest rate of 19% per year.
a. Explain two long term sources of external finance. (5marks)
b. Discuss four factors MOSI should consider when choosing the source of finance for his business. (10marks)
c. Present the loan repayment plan ( amortization) for the loan knowing that the interest is charged on the
remaining unpaid loan and 1,000,000f is paid back each year. (10marks)

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4. Gerald is new in business; he intends to use his personal saving amounting to 4.500,000F to start his business. He
contacted peter who will be supplying goods. Peter also agreed to give him goods on credit worth 2,400,000 FRS
if he pays in 600,000 FRS cash during the purchase. He needs furniture worth 600,000 FRS; he intends to buy a
building worth 5,000,000 FRS and has 1,000,000frs at home that he wants to add to the business.
a. Using the above information, present a clear view to Gerald of how much loan is needed from the balance
sheet as at 10 April 2019. (10marks)
b. What are the benefits of establishing a balance sheet. (8marks)
c. Explain three sources of internal finance. (7marks)

5. Derrick, a young entrepreneur has realized that the market of fruit juice in Buea is attractive given the number of
university students around. He decided to carry out a deep analyses of the market and realized that there are other
actors for products affecting the sales of fruit such as : flolere:, a locally made yoghurt, planet drink, Brasseries
soft drinks and other drinks from Nigeria.
a. Identify four factors that qualify a market as an attractive one. (7marks)
b. Propose four measures Derrick can adopt to facilitate his penetration into the market. (8marks)
c. Explain the concept of competitive analyses and give three benefits of competitive analysis. (10marks)

6. Akouh has just laid off by his company- BAMENDA MODERN FURNITURE and he decided to use his
severance pay to open his own business. He figures out that the will make more money by operating a furniture
workshop. Akouh knows that you did a course titled entrepreneurship and ask you to:
a. Explain the personal characteristics he needs as an entrepreneur. (5marks)
b. State five steps he can use to generate creative ideas. (10marks)
c. Explain the opportunity recognition process. (10marks)

7. In a village called Kedgom, a young man called Kirikou who studied entrepreneurship carried out an
environmental study and discovered that there are a lot of opportunities that the inhabitants can exploit as far as
business is concern. In his conversation with one of the notables regarding these opportunities, he become
interested in investing in a bakery business but needed to be clarified on the issues below:
a. State five roles of kirikouin Kedjom as an entrepreneur (5marks)
b. Identity five characteristics Kirikou needs to possess as an entrepreneur. (10marks)
c. Explain five reasons why the bakery might fail. (10mark)

8. In 2008, a report showed that the unemployment rate in Cameroon was high. As such, youths have decided to
engage themselves in small scale businesses, giving way to intensive competition, which now makes it
challenging to emerge as a small business:
a. Give five reasons why a business man should prepare a business plan. (5marks)
b. Examine five functions of a human resource manager in a business plan. (10marks)
c. Briefly explain the stages involve in writing a business plan. (10marks)