TEST COVER PAGE

FACULTY OF MANAGEMENT SCIENCES

DEPARTMENT OF LOGISTICS & SUPPLY CHAIN MANAGEMENT

SUBJECT : Entrepreneurship Paper A

SUBJECT CODE : BBENA1A; & BBENP1A

EXAMINER(S) : OT Matsheke; M Matlala; M Matshitja & E

Nkambule

MODERATOR(S) : Prof. JP Van Westhuizen

DURATION : 2 hours

TOTAL MARKS : 100

REQUIREMENTS : Write your student numbers

INSTRUCTIONS:

1. Number answers to questions correctly.

2. Answer all questions.
3. Answer subsections of a question together.
4. Refrain from using sms/texting language.

THE QUESTION PAPER CONSISTS OF: 10 typed pages

DO NOT TURN THE PAGE BEFORE PERMISSION IS GRANTED

BBENA1A; & BBENP1A [] Examination Question Paper [2024 NOV ]

Section A: Short Questions

Question 1

Shaheem is a nascent entrepreneur who is going through the steps in the

entrepreneurial process to start a venture that provides IT consulting and network
administration services to small businesses.

1.1 Do you think Shaheem is an entrepreneur? Discuss five different types of

entrepreneurs. (10

1.2 Many people do not create because they do not regard themselves as being
creative, identify and discuss only five barriers to creativity. (10

[20

Question 2

To respond to the changes in the environment, Shaheem needs sound knowledge of

the business environment, the analysis of the internal and external environment,
Shaheem should be able to identify threats and opportunities that could be used in the
development of her service.

2.1 Discuss any five variables/factors in the analysis of the external environment of a
venture to Shaheem. (10

2.2 Shaheem do not know which business structure/form of ownership is suitable for
her business. Outline the factors she should consider in order to select the best form
of ownership. (6

[16

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Question 3

3.1 Explain the reasons why compiling a business plan is necessary when staring a
new venture. (10

3.2 Discuss the four broad categories of resources that may need for her business. (4

[14

Total Marks [50

Section B: Multiple Choice & True or False Questions

Question 4

Multiple choice questions: Select the correct alphabetical letter only

1. Defines a __________________ as a perceived means of generating

economics value that has not previously exploited and (is) not currently
being exploited by others and meets a need or desire.
a. Cognitive biases.
b. Viable business opportunity
c. Illusion of control
d. Brand loyalty
2. Which one the following is not a question to ask when assessing the viability
of the idea as far as the customers are concerned?

a. Will the product, the product or service provide a competitive advantage?

b. Who are the customers is likely to be?

c. What are the dominant characteristics of the customers?

d. Is the size of the market large or small?

3. What is creativity?

a. The ability to generate ideas or solutions that are original, valuable, and useful.
b. The act of copying someone else's idea.
c. The ability to think critically and analytically.
d. The process of brainstorming.

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4. Which of the following is a barrier to creativity?
a. Having supportive mentors and advisors.
b. Working in a team environment.
c. Having a diverse set of perspectives.
d. Fear of failure and criticism.

5. Which of the following is the third step in the entrepreneurial creative

process
a. Preparation
b. Idea generation
c. Implementation
d. Information gathering
6. Which one of the following activities is an important function of purchasing?

a. Selecting suppliers
b. Negotiating finance
c. Placing advertisements
d. Determining staff needs
7. An entrepreneurial team is critical for the success of a business. Which of the
following qualities is not a quality of an entrepreneurial leader?
a. Avoids adversity and is not resilient
b. Learns and teaches faster, better
c. Exhibits integrity, dependability and honesty
d. Builds entrepreneurial culture and organization
8. In which one of the seven critical steps in team functioning will the team
address the following question: Does the team need help to understand and
interpret data?
a. Decide on the process to use
b. Gather information
c. Make a decision
d. Develop an action plan

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9. In which step of the decision-making process do you demonstrate your
creativity?
a. Formulate the problem
b. Collect all relevant material
c. Develop all possible alternatives
d. Evaluate alternatives
10. As part of the strategic management process of her labour law consulting
business, Ayanda is analysing her business’s internal and external
environment, and doing a SWOT analysis. In which phase of the strategic
management process is Ayanda?

a. The strategy implementation phase

b. The strategy evaluation phase
c. The strategy formulation phase
d. The sustainable competitive advantage phase
11. When Ayanda looks at annual objectives and allocating resources in order
to execute strategies, which phase of the strategic management process is
she in?
a. The strategy implementation phase
b. The strategy evaluation phase
c. The strategy formulation phase
d. The sustainable competitive advantage phase
12. To stay competitive in the labour law consultancy market, Ayanda uses
strategic management to analyse and review external and internal forces
affecting her business. She also uses an innovation and financial risk
management matrix. In which phase of the strategic management process
would she do this?

a. The strategy implementation phase

b. The strategy evaluation phase
c. The strategy formulation phase
d. The sustainable competitive advantage phase

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13. To be a successful entrepreneur, Nosipho is aware that she needs to respond
to and anticipate, if possible, changes in the business environment. She
plans to start a small business in the informal sector and is aware of South
Africa’s high unemployment and functional illiteracy rates as these are
prevalent in her own community. Which aspect of the business environment
do these factors indicate?
a. The technological environment
b. The competitive environment
c. The social and cultural environment
d. The legal and political environment
14. Lucien has planned most aspects of his flagship specialist dental practice
business. He has medium-term ambitions to open an additional five
practices, so he is researching the different types of ownership to determine
which would suit him best given the business growth he foresees. He wants
to allow for two members initially, with a projected maximum of 10. Which
type of ownership should he choose?
a. Sole proprietorship
b. Partnership
c. Private company
d. Trust

15. Aviwe is planning the kitchen layout and outfitting for her new restaurant.
She is listing the restaurant’s cold storage, oven and gas hob requirements, the
meat, dairy and dry goods she will need to purchase for her menu requirements,
and the food processing equipment and utensils, such as knives, that will be
indispensable for preparing gourmet meals. Which category of resource needs
is Aviwe detailing?

a. Technology resources
b. financial resources
c. Operating resources
d. Human resources

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16. In which of the moral development phases of a business does the
entrepreneur realise that he or she is doing a lot of damage control due
to ethics-related issues?

a. The immoral mode

b. The reactive mode
c. The compliance mode
d. The integrity mode
17. In which of the moral development phases of a business do ethical values
become internalised?
a. The immoral mode
b. The reactive mode
c. The compliance mode
d. The integrity mode
18. In which of the moral development phases of a business does the
entrepreneur realise that he or she is doing a lot of damage control due
to ethics-related issues?
a. The immoral mode
b. The reactive mode
c. The compliance mode
d. The integrity mode
19. This face can be referred as the bread now, moral later phase.

a. Phase 1: The Immoral mode

b. Phase 2: The reactive mode
c. Phase 3: The compliance mode
d. Phase 4: The Integrity mode

20. Which of the following Values Is NOT an ethical value?

a. Accountability
b. Teamwork
c. Respect
d. Trust
21. Which resources are required to formulate a good business plan?

a. Reliable information and plenty in time

b. Plenty of time, reliable information and human resources.
c. Human resources and reliable information
d. Plenty of time and human resources

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22. There are certain things that a business plan cannot do. Identify which one
of the following is something that business plans cannot do:

a. Business plans cannot predict the future

b. Business plans cannot guarantee funding

c. Business plans cannot raise all the money required.

d. All of the above

23.Which one of the following is NOT an example of the purpose of a business

plan?

a. To plan a new business

b. To transform or expand an existing business

c. To obtain stuff

d. To obtain a loan

24. Which of the following is a major problem that an entrepreneur might

encounter when writing a business plan for the first time?

a. Explaining the business idea and where it came from

b. Forecasting product sales accurately

c. Including details about the owners

d. Finding an appropriate format to present the plan

c. Location

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25. Which of the following best describes a business plan? A written document
that describes:

a. The business, its aims/objectives, financial forecasts and market

b. The marketing plan of the business

c. The objectives and key targets of the business

d. How the business will produce its products

[25
Question 5

Indicate which of the following questions are True or False

1. For a product to be successful, customer do not need to replenish or repurchase it.

2. When addressing the market gap the entrepreneur, must transform opportunities
into problems.

3. By means of simply observing your environment, you could generate viable

business ideas.

4. Strategic management is often associated with large corporations that wish to

implement changes, such as introducing new products or product lines, implementing
a new organisational structure, going international or multinational and (or) retrenching
part of, or even the entire staff.

5. Social and cultural changes have no major impact on virtually all products, services,
markets and customers.

6. Planning is the most important function, since it occurs at all stages and levels of
business and is also part and parcel of all other tasks performed in the business.

7. The master plan is usually drawn up for the business as a whole by, or in close co-
operation with top management. It is also referred to as the total plan, overall plan or
broad plan.

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8. As in the case for a sole partnership, a partnership does have a legal personality
and all transactions, contracts or agreements are entered into by the partners in their
personal capacity.

9. A major social responsibility for business is providing equal opportunities for all
employees.
10. Social responsibility and ethics are essentially the same thing.
Without a code of ethics or formal policy on ethics, employees are likely to be base
their decisions on how their peers and superior behave.
11. A business venture lasts longer if the entrepreneur is careless and selfish in his or
her decisions.
12. Social responsibility is the obligation of an organization to protect the business against
theft and fire.
13. Advertising could create ethical dilemmas for the entrepreneur.
14. The number of shareholders of the private companies varies between one and 50 persons.
15. The purpose of gathering data and conducting internal and external analysis is to
establish an information base from which strategic plans will emerge.
16. Technological changes can reduce or eliminate cost barriers between businesses,
create shorter production runs and create shortage in technical skills.
17. Making sound and effective decisions is important for a new venture since it is
directly linked to the success of a venture.
18. Organizing is the first step in evaluating the plan that has been developed by the
entrepreneur and involves arranging the activities and resources of the business
by allocating duties, responsibilities and authority to persons and departments or
divisions.

19.Successful entrepreneurs only take calculated risks and are therefore not gamblers
who will risk everything for the chance of success.

20. The statement of cash flows contains information about the changes in cash and
cash equivalents.

21. Equity represents an owner's interest in liability.

22. Business plan can raise all the money required.

23. Financial accounting is reporting on financial activities to external users.

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24. A business plan is not of a vital importance in today highly competitive business
world.

25. The income statement reflects whether an entity has realized a profit or loss over
a period.

[25

Total Marks [50

Grand Total [100

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