ENT300_ETR300

CONFIDENTIAL BM/APR 2010/ENT300/ETR300

UNIVERSITI TEKNOLOGI MARA FINAL EXAMINATION

COURSE COURSE CODE EXAMINATION TIME

FUNDAMENTALS OF ENTREPRENEURSHIP ENT300/ETR300 APRIL 2010 3 HOURS

INSTRUCTIONS TO CANDIDATES

This question paper consists of four (4) parts

3.

PART A (20 Questions) PART B (20 Questions) PART C (5 Questions) PART D (2 Questions)

Answer ALL questions from PART A, B, four (4) questions from PART C, and one (1) question from PART D.

i) Answer PART A in the True/False Answer Sheet, ii) Answer PART B in the Objective Answer Sheet. iii) Answer PART C and PART D in the Answer Booklet. Start each answer on a new

page.

Do not bring any material into the examination room unless permission is given by the invigilator.

Please check to make sure that this examination pack consists of:

i) the Question Paper ii) an Answer Booklet - provided by the Faculty iii) a True/False Answer Sheet - provided by the Faculty iv) an Objective Answer Sheet - provided by the Faculty

DO NOT TURN THIS PAGE UNTIL YOU ARE TOLD TO DO SO This examination paper consists of 10 printed pages

Hak Cipta Universiti Teknologi MARA C O N F I D E N T I A L

CONFIDENTIAL 2 BM/APR 2010/ENT300/ETR300

PART A

1. According to motivation theorists, an entrepreneur is a person who has high need for power (n Pow).

2. Joseph Aloysius Schumpeter described an entrepreneur as an innovator.

3. Entrepreneurial motivation is viewed as the willingness of an entrepreneur to sustain his entrepreneurial behavior.

4. The term "creativity" refers to the generation of ideas that result in improved efficiency or effectiveness of a system.

5. In a franchise system, the royalty refers to an on-going payment made by the franchisee to the franchisor based on the percentage of sales as agreed upon during the signing of franchise contract.

6. The most popular method of starting a business in Malaysia is through family business succession.

7. All small enterprises in Malaysia are registered under the Business Registration Act 1956.

8. In a partnership business, the liability of a partner is limited to the amount of capital invested in the business, whereas in a sole-proprietorship business, the liability of the owner is not limited.

9. Under the Employees Provident Fund Act 1991, all employers and employees including foreign workers and expatriates must contribute to the Employees Provident Fund (EPF).

10. The preparation of a business plan involves the search for and discovery of business opportunities.

11. The business plan can be used as a tool to convince potential employee about the attractiveness of working with the business.

12. "Market share" is the term used to describe the total potential purchase of the target market.

13. Target market refers to the group of customers whose needs and wants can be satisfied by the business through the supply of goods or services.

14. The main purpose of preparing a marketing plan is to ensure that the business is able to produce output or to provide service that can fulfill the expected market demand or sales.

15. The "process chart" refers to the diagram showing the job position and hierarchy of personnel in a particular organization at a particular point in time.

Hak Cipta Universiti Teknologi MARA CONFIDENTIAL


16. The best way to introduce a business organization is to state the business's vision and objectives in the "Introduction" part of the Business Plan.

17. In the business plan, the value and benefits of products or services to customers are discussed in the marketing plan.

18. The number of personnel who are directly involved in the operation of the business is determined in the administrative/organizational plan.

19. In hire-purchase scheme, the money borrowed from banks or financial institutions is used to finance the acquisition of fixed asset.

20. The most common source of finance for a new business is the revenue generated by the business.

(20 marks)



PARTB

1. defined an entrepreneur as a knowledgeable individual who is instrumental in the development of city-state.

A. Joseph Schumpeter B. Adam Smith C. Jean Babtiste Say D. Carl Menger E. Ibnu Khaldun

2. "A successful entrepreneur always finds ways to do things faster or with fewer resources or at a lower cost". Which of the following entrepreneurial competencies best describe the above statement:

A. Commitment to work contract B. Concern for high quality of work C. Efficiency orientation D. Systematic planning E. Problem solving

3. In the creativity process the discovery of ideas or solutions to the problems is involved in the following phase:

A. Background or knowledge accumulation B. Incubation process C. Idea experience D. Evaluation and implementation E. Idea exploration

4. Which of the following statements is NOT TRUE about innovation?

A. Operational innovation is more process oriented and tends to be incremental in nature.

B. Innovation is a process of converting opportunities into marketable ideas. C. Organizational innovation are breakthrough inventions that have wide-

reaching impact and influence which benefit society and business. D. Innovation will take place when there is a creative ideas generation. E. All of the above are not true.

5. Which of the following statements is related to a partnership business?

A. A partnership business can take legal action and face legal action under its own name.

B. A partnership business is registered under the Business Registration Act 1956.

C. The liabilities of the members are limited to the total shares contributed to the company's capital.

D. The life span of the entity does not depend on the resignation of its members. E. It is compulsory for the entity to appoint a qualified auditor approved by the

Ministry of Finance. Hak Cipta Universiti Teknologi MARA CONFIDENTIAL


6. Which of the following statements is NOT TRUE about a sole-proprietorship business?

A. A sole-proprietorship business is easy to manage compared to other forms of businesses.

B. A sole-proprietorship business is easy to form and dissolve with minimum formalities.

C. A sole proprietorship business is formed under the Companies Act 1965. D. The owner of a sole proprietorship business pays income tax based on his

total individual income. E. A sole proprietorship business in not subjected to much government rules and

regulation in comparison to other form of business.

7. Which of the following statements is NOT TRUE about a franchise business?

A. A franchise is a product and/or service distribution system governed by a contract made between two parties namely, the franchisor and the franchisee.

B. The franchisor is a company which sells the right to another party to operate the franchise.

C. The franchisor will pay royalty to the franchisee based on the percentage of sales as agreed in the franchise contract.

D. The franchisee is a person who purchases the right from the franchisor to operate the franchise.

E. All of the above are not true.

8. Which of the following statements is NOT TRUE?

A. An entrepreneur engaging in any manufacturing activity has to obtain a license from Malaysian Industrial Development Authority (MIDA).

B. Construction of buildings can only be undertaken with the written approval from Local Authority.

C. A planning permission is required from local authority in order to set up a manufacturing business.

D. All manufacturers are required to control industrial activities that may result in a new source of effluent or discharge.

E. All manufacturers are required to obtain design approval of certificate machinery and certificate of fitness from Local Authority.

9. Which of the following ministries/agencies does not provide financial assistance for entrepreneurs?

A. Ministry of Science, Technology and Innovation (MOSTI). B. Multimedia Development Corporation (MDeC). C. Perbadanan Nasional Berhad (PNS). D. Perbadanan Usahawan Nasional Berhad (PUNB). E. Malaysian Industrial Development Authority (MIDA)



10. Which of the following ministries/agencies does not provide marketing assistance for entrepreneurs?

A. Ministry of International Trade and Industry (MITI) B. Malaysian External Trade Development Corporation (MATRADE) C. Federal Agricultural Marketing Authority (FAMA) D. Perbadanan Usahawan Nasional Berhad (PUNB). E. All of the above agencies provide marketing assistance to entrepreneurs.

11. Which of the following statements is TRUE about a business plan?

A. A business plan can be used as a basis for determining the viability of the new business.

B. A business plan can be used as a communication tool to convince potential investors of the viability of the new venture.

C. The format of the business plan includes cover letter, cover page, table of contents, executive summary, and the main body.

D. A business plan enables the entrepreneur to distribute business resources more effectively.

E. All of the above are true.

12. The following parties are the readers of the business plan EXCEPT:

A. Investors B. Bankers C. Suppliers D. Auditors E. Customers

13. The "marketing plan" section of a business plan should include all of the following items, EXCEPT:

A. Competitors' analysis. B. Products' attributes. C. Sales forecast. D. Pricing strategy. E. Business location.

14. A well prepared marketing plan helps entrepreneurs to:

A. develop mission and vision of the business. B. identify required resources in order to manufacture the products. C. evaluate customers' acceptance of the products or services. D. estimate total project cost of the business. E. assess the profitability of the business.



15. Which of the followings factors is unnecessary in calculating the number of employees needed in an operation?

A. standard time to produce one unit product B. planned rate of production C. productivity index D. workers productive hours E. All of the above factors are necessary

16. In an operation system, the business input includes:

I technology II information III end product IV equipment V transformation process

A. I, II and III B. I, II and IV C. I, II and V D. I, III and V E. I, IV and V

17. The statement, "To be a reputable halal Chinese cuisine restaurant in the region", is an example of the company's .

18.

A. B. C. D. E.

Goal Vision Mission Objective Aspiration

Monthly earning for a Production Manager at Double X-Vision is RM6.000. The estimated rates of EPF contribution are 12% (employer's contribution) and 11% (employee's contribution). How much is the monthly cost for Double X-Vision if the company is having 3 Production Managers?

A. B. C. D. E.

RM 6,720 RM18,000 RM19,980 RM20.160 RM22.140



19. Which of the following statements is NOT TRUE?

A. Elements of project cost should include provision for contingencies. B. Sources of finance refer to the sources of funds to finance a particular project. C. Sources of finance to fund the project cost may come from external and

internal sources. D. One of the internal sources of finance for new venture is the entrepreneur's

own capital. E. Sources of external funds for a new venture should equal the total project

implementation cost.

20. Which of the following statements is/are TRUE?

I A project implementation cost incorporates both long-term and short-term expenditure needed to start a project.

II Pro forma cash flow statement refers to the projected statement of cash inflow and outflow throughout the planned period.

III Pro forma income statement shows the expected profit or loss for the planned period.

IV Current ratio generally shows the business' ability to generate cash to meet its long-term obligations.

A. I and II only B. I and III only C. I and IV only D. I, II and III only E. All of the above are true

(40 marks)



PARTC

QUESTION 1

Define what is opportunity and state three approaches to opportunity identification.

(5 marks) QUESTION 2

One of the methods to start a new business is through family business succession. Give five (5) challenges faced by family business successor.

(5 marks)

QUESTION 3

Describe the importance of preparing an operation plan for a new venture. (5 marks)

QUESTION 4

List five (5) factors that should be considered when conducting a competitors' analysis. (5 marks)

QUESTION 5

Give five (5) topics that are discussed in an organizational plan. (5 marks)



PARTD

QUESTION 1

Explain the meaning of "entrepreneurship". Discuss the importance of entrepreneurship to Malaysian economy.

(20 marks)

QUESTION 2

Why is developing a financial plan important to a new venture? Explain three (3) pro forma financial statements that are significant to the financial planning process.

(20 marks)

END OF QUESTION PAPER


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