SECTION A: (40 marks)

1. a) i) Define the term investment.

ii) State any three reason why reasons why an entrepreneur may invest his/her income.

b) Mention any four leadership skills required a business.

c)i) Distinguish between a partnership and a joint stock company.

ii) Give any two advantages of a partnership business.

d) Given the following Assets and liabilities of a business:

shs

Land 10, 000, 0000

Furniture 5,000,000

Stock 4,000,000

Creditors 3,000,000

5 year loan 6,800,000

Debtors 2,000,000

Calculate the value of the:

i. capital

ii. total current assets

of the business.

e) Mention any four marketing activities carried out by an entrepreneur.

f)i) Define the term packaging.

ii) State any three common types of packaging materials used by producers in your country.

g) Differentiate between:

i. A credit note and a debit note.

ii. An invoice and a delivery note

h)i) Define the term risks as used in entrepreneurship.

ii) Give any three non-insurable risks in a business.

I) State any four functions of commercial banks in your country.

j)i) Distinguish between a trial balance and a balance sheet.

ii) Mention any two uses of a trial balance in a business.

 

 

SECTION B: (60 marks)

2. a) Explain any six problems faced by agribusiness in your country.

b) Suggest any four measures that should be taken to reduce the problems in (a) above.

3. a) Define the term market as used in entrepreneurship.

b) Explain any eight factors which influence the potential market of the business.

4. a) i) Define the term advertising.

ii) Mention any two advertising media used in your country.

c) Explain eight factors that should be considered when choosing a medium of advertising.

5. a) Under what conditions may entrepreneurs sell their goods on credit.

b) Explain the advantages and disadvantages of selling goods on credit.

6. a) Outline the essentials of effective communication in business.

b) Explain the importance of communication in an enterprise.