MNE202V-2010-10-E-1 - oct_Nov 10

MNE202V-2010-10-E-1 - oct_Nov 10 - UNIVERSITY EXAMINATIONS...

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Unformatted text preview: UNIVERSITY EXAMINATIONS UNIVERSITEITSEKSAMENS university 0‘! south akin MN E202V ( 472833) OctoberlNovember 2010 INTRODUCTION TO ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENT (BUSINESS MANAGEMENT 202) Duration 2 Hours 70 Marks EXAMINERS FIRST MR NS RADIPERE SECOND PROF MW LADZANI Use of a non-programmable pocket calculator Is permissible. ThlS paper COhSIStS of ten (10) pages plus Instructions for the completion of a mark-reading sheet ThIS examination paper remains the property of the Universuty of South Africa and may not be rerjnoved from the examination room Section A IS a compulsory section, Wthh you have to answer on a mark—reading sheet In section B, on must answer uestion 1 and then EITHER uestlon 2 OR uestlon 3 [TURN OVER] 2 MNE 202-V October/November 2010 SECTION A Answer the followrng 30 multrple-chorce questions on the mark-reading sheet The questrons are worth one (1) mark each The total for thrs section IS therefore 30 marks Make sure that the followrng Information appears on the mark-reading sheet 0 your student number o the module code (MNE202V) o the uni ue number of the 1 IS any busrness that rs Independently owned and operated but not dominant In Its field and does not engage In any new marketing or Innovatrve practice 1 Entrepreneurial venture 2 Franchise 3 Entrepreneurshrp 4 Small busrness 2 Entrepreneurship rs not always seen as a legitimate career chorce Many people are pulled or pushed Into a career as an entrepreneur Which of the followrng are the push factors to entrepreneurshrp'? personal development Job Insecurity unemployment Independence disagreement wrth management (DQOD'QJ abc bce abd cde #OJN—k 3 Whlch of the followrng rndwrduals are not entrepreneurs? a Sammy sells snacks at a soccer match for Karzer Chiefs club He gets pard R50 an hour b Enck buys old books whrch he re-sell at hrs flea market stall Anna turns part of her home Into a day-care centre Sello resrgned from hrs Job as a lecturer to manage hrs uncle’s restaurant #wm—x m G. [TURN OVER] 3 MNE 202-V OctoberINovember 2010 4 IndIcate how the process of creatIve thInkIng flows 1 develop Idea—> generate Idea—>change Idea Into product—> protect the results 2 develop Idea—4» generate Idea—> protect the results—> change Idea Into product 3 generate Idea—» develop Idea—e change Idea Into product—> protect the results 4 generate Idea—r develop Idea—a protect the results—> change Idea Into product th Study e following barriers to creativity and answer the questions that follow (5-7): famIIIes wrth autocratIc deCISIon-maklng structure occurnng of dIstractIons IIke sounds. clImate and lack of energy not perrnltted to ask a questIon or to questIon an Issue conventronal venues In educatlon and traInIng enVIronment lack of understandlng among trends and famIly stereotyprng '“CDQOO'N 5 WhIch of the followmg are cultural barrIers to creatIVIty'? 1 ab 2 cf 3 de 4 bd 6 WhIch of the foilowmg are phySIcal barrIers to creatIVIty? cd df ac bd #OON—l 7 WhIch of the followrng are socral barrIers to creatIVIty'? bc de ae cd #LONA 8 WhIch of the followrng actIons are requrred by an entrepreneur when “openmg” the wmdow of opportunity? search market for gaps coordInate actIvrtIes obtaIn commItment of venture's stakeholders IdentIfy ways In thch customers’ needs can be served 0.00"!” th—i O Q. [TURN OVER] 10 11 12 4 MNE 202-V October/November 2010 When developing a busrness plan to attract shareholders, the emphasrs should be on 1 the posrtlon of the busmess In relation to competitors 2 whether a busrness Incense can be obtained 3 the strategy to achieve profit and growth prolectrons 4 the credrt ratlng of the busrness The customers that make up the nrche market tend to be accessrble and wrllrng to purchase the product or servrce Which of the followrng factors determine the attractiveness of the market? busrness structure management structure cost structure market structure £10011) ab bd cd ac LOJNA Whrch one of the followrng statements rs true? 1 If a member of a close corporation dues, the close corporation ceases to ex15t The close corporation has better capital acqursrtron potential than a company The partnershrp has minimal legal reqwrements Imposed by the government The partners In a partnership have limited liability The owners of the company have drrect control and authorrty over the busmess U1th Marla recently decrded on a form of ownership for the preschool centre she Intends starting In Mamelodr The form of ownershrp she has chosen means that her busmess wrll have a separate legal personality and WIN be created by the registration of a foundrng statement The type of busrness chosen by Marla rs known as a close corporation partnership public company private company 45de [TURN OVER] 13 14 15 16 17 5 MNE 202-V October/November 2010 In deCtdIng on a location for her preschool centre WhICh of the followrng factors would Mana have to consnder'? a availablllty of raw material b personal development c access to the target market d political and socral Instability 1 a b 2 a c 3 b c 4 c d Vodacom Is South Africa's leading cell phone network operator wrth 23 mrllron customers and 58% market share Vodacom’s global alliance wrth Vodafone Live has put mobile televrsron, Internet access, email and entertainment on cell phones Which form of Internal strategy IS followed by Vodacom? Increase of market share expanSIon and growth of turnover expansion Into new market areas and niche markets the command of means of galnlng and maintaining customer satlsfactlon and customer confidence AWN—‘- A bIg challenge for the family councal an a family busrness Is to 1 draw up a family system 2 draw up a family protocol 3 draw up a busrness plan 4 bnng the family together An opportunity IS alan _ that IS _, durable and _ and Is anchored 1n a product or serwce that creates and adds value for the end user 1 market, valuable, attractive 2 wmdow, attractive, timely 3 venture, profitable, marketable 4 Idea, attractwe, tumer IS the reglstered exclusrve right of an Inventor to make, use or sell an Invention 1 Copyright 2 Desrgn 3 Trademark 4 Patent [TURN OVER] 6 MNE 202-V October/November 2010 18—20 Match the busmess risk in column A With the correct answers In column B COLUMN A COLUMN B 18 Customer risks 1 emlo ee dishones , loss of Re executives 19 Proe risks 2 bad debts, sholiftin, fire 20 Personnel risks 3 roduct liabili , bad debts 4 fire, sholiftin, burla _ — 5 bankruptcy, bad debts, shoplifting 21 is a form of fund that is invested in the busmess With no obligation to repay the rinCIpal amount or to pay interest on it or to another party 1 Debenture 2 Retained earning 3 Equ1ty capital 4 Shipper's finance 22 Which of the followmg are the "back-end costs" of raismg finance for new growmg busmess ventures? legal fees prospectus investment banking fees travel QOU'ID ab bd cd ac hOJN—l- 23 IS a process whereby busmess problems are diagnosed and resolved in such a way that the clients learn not only how to overcome their current difficulties, but also to tackle Similar Situations in future 1 Busuness mentoring 2 Busmess counselling 3 Busmess networking 4 Busmess incubation 24 Which of the followmg are advantages of franchismg from the franchisee's View p0int'? dedicated owner-operators a proven system start-up a53istance rapid expansnon QOU'D) [TURN OVER] 25 26 27 28 29 7 MNE 202-V October/November 2010 1 ab 2 be 3 ad 4 cd According to the _ method, the value of a busmess is determined by combining the value of the business's eXIsting assets and an estimation of future earnings 1 capitalised earning 2 asset-based 3 discounted future earning 4 excess earning During the _ stage of venture growth, the growth accelerates, resources are under major pressure and competition becomes stronger 1 decline 2 maturity 3 breakthrough 4 infancy In a (an) , the manufacturer grants a second party the right to sell the manufacturer's products Within a given area dealership excluswe agreement alliance franchise th—h At which stage of levels of failure in a venture does the venture experience negative cash flow for long periods? 1 underperforrning 2 cri5is 3 failure 4 trouble To turn around an ailing (Sick) venture and put it back on the road to good performance and growth is no small task During the process, evaluation is made to establish the causes of failure 1n the venture and whether it is still possmle to reverse the slide 1 stabilisation 2 restructuring deCI5ion 3 intervention de0i3ion 4 diagn03is [TURN OVER] 30 8 MNE 202-V October/N ovember 2010 CreatIVIty and Innovation are the two major components for both entrepreneurs and intrapreneurs Identify the correct sequence of steps In the Innovation process Involve customers evaluate the opportumty search for Innovation organise for Innovation make way for Innovation focus on Innovation ‘hmaocrm actedb bafdce cbaefd ecafdb thA [TURN OVER] 9 MNE 202-V October/November 2010 SECTION B Answer two (2) questions from sectIon B. Question 1 is compulsory. Choose and answer either questions 2 or 3 Please erte the numbers of the questions that you have answered on the cover of our answer book QUESTION 1 (Compulsory) Read the case study and answer the questIons that follow Susan and Martha are housewives They realIsed that they had the same dream Three years ago, they met at a restaurant and while waiting for then order to be carrIed out they started chattIng about serVIce deIIvery and beIng a busmess owner They soon realIsed that they had a common talent and Interest, namely that of bakIng cakes and bIscwts. They deCIded to meet agaIn and to discuss the pOSSIbIIIty of gomg Into busmess They started their busmess In the garage of Susan's house, whlch they transformed Into a small bakery They had a few breaks that helped them to get where they are today All of these breaks came In the form of people who were prepared to become Involved and go the extra wire to aSSIst them A consultant of Busmess Partners was prepared to lIsten to then dream and helped them draft a busmess plan to enable them to get their first loan “It took hard work and dedicatIon", Susan remembers those early days They now have five people workIng for them and they supply theIr products to varIous coffee shops and home IndustIy shops They have now reached a crossroad Either they expand or deCIde to stay small “We can't afford it any longer to work In thIs small settIng — we need space”, says Martha An estate agent let them know about an eXIstIng bakery for sale, and they have to take a deCISlon Should they buy thIs exIstIng bakery or not? 1 1 You are appomted as then busmess consultant EpraIn to them the steps they should follow In the negotIatIon process If they deCIde to buy this bakery (7) 1 2 As a busmess consultant. you are reqUIred to aSSISt Martha and Susan to draw up a busmess plan for the expanSIon of the eXIstIng busmess ExplaIn to them what speCIfic aspects they should be careful to Include In a busmess plan aImed at expanding the busmess (6) 1 3 ExplaIn to Susan and Martha the sources of short term fInance avaIlable to small busmesses (7) [20] Answer any ONE of the following two questions (EITHER question 2 0R question 3). QUESTION 2 21 BIgger or estabIIshed busmesses tend to leave gaps In the market for numerous reasons [TURN OVER] 10 MNE 202-V October/November 2010 Identify and explain reasons why large busmesses leave gaps in the market that smaller firms can effectively take advantage of (6) 2 2 Busmess as dealing in fast-movmg consumer goods generally need to find shopping or suburban retail centres in which to open a shop Explain SIX factors to conSider in selecting a shopping centre (6) 2 3 It stands to reason that if the systems of family busmesses are not in harmony, then conflict might have a detrimental effect on the long term survwal and growth of the busmess Identify at least eight problems that can exrst in family busmesses (8) [20] OR QUESTION 3 Case study Ms Mkhize and VIVlan Tefo were prewously involved in community development proiects During their work they discovered a huge need for prowding employment opportunities for their communities, but did not know how to go about domg this They were also not certain who to approach for adwce on how to start a busmess and how to register a company 31 32 33 The Local Busmess Sewice Centre (LBSC) programme is a vehicle for local partnerships development and a mechanism for encompassmg and directing SMMEs development Briefly explain to Ms Mkhize and ViVian the functions of LBSC programmes Within the local economies (4) The owner of a new busmess that Will employ people must register as an employer With the Department of Labour to contribute to the Unemployment Insurance and Compensation Fund Explain the difference between the need for an Unemployment Insurance Fund and a Compensation Fund (6) Differentiate between male and female entrepreneurs in South Africa (10) [20] TOTAL [70] © UNISA 2010 UNIVERSITY OF SOUTH AFRICA U N I EXAMINATION MARK READING SHEET PART I {GENERAL/ALGEMEEN) DEEL 1 INITIALS AND SURNAME 9 VOOHLEVTEHS EN VAN -_ ..- .- -. .__ smuv unrr a g Psvwo-x srumz EENHEID bv PSYIOO x PART 2 {ANSWERS/ANTWOORDE) DEEL 2 Sc: unwversmy oI souih ahnca UNIVERSITEIT VAN SUID-AFRIKA EKSAMEN-MERKLEESBLAD DATE OF EXAMINATION DA‘IUM VAN EKSAMEN » -- -- --- -— -- -- -- - ---- m7 - ------ - no -- - -- ---- ----- -- --- - PAPER NUMBER EXAMINATTON CENTRE (E G PRFTDRIA} VRAESTELNOMMER EKSAMENSENTHUM (8V PHETORIA) -- ---- -- ----- 7 7 ---~ - —--- - - - - STUDENT NUMBER UNI-QUE PAPER NO STUDENT NOMMEH UNIEKEV a STEL NR IIIIEiTIII For use by examination Inwgllator VII‘ gebrunk deur eksamenopsuener IMPORTANT BELANGRIK 1 USE ONLY AN HB PENCIL TO COMPLETE THIS SHEET 1 GEBFIUIK SLEGS N HB POTLOOD UM KIERDIE BLAD TE VOLTOOI 2 MARK LIKE THIS '2'! 2 MERKAS VOLG F2! 3 CHECK THAI YOUR INITIALS AND SURNAME HAS BEEN FILLED IN CORRECT L! 3 KONTROLEER DAI U VOOFI LETTERS EN VAN REG INGEVUL IS 4 ENTER YOUR STUDENT NUMBER FROM LEFT TO RIGHT 4 VUL U STUDENTENOMMER VAN LINKS NA REGS IN 5 CHECK THAT YOUR STUDENT NUMBER HAS BEEN FILLED IN CORRECTLY 5 KDNTHDLEER DAT U DIE KOHREKTE STUDENTENOMMER VEHSTREK HET 6 CHECK THAT THE UNIQUE NUMBER HAS BEEN FILLED 1N CORRECTLY 6 KONTROLEER DAT DIE UNIEKE NOMMER REG INGEVUL IS 3' CHECK THAT ONLY ONE ANSWER PER OUESTlON HAS BEEN MARKED T MAAK SEXEH DAT NET EEN ALTERNATIEF PER VRAAG GEMERK IS 8 DO NOT FOLD B MOENIE VDU NIE UNIS-fl P1532 MARK READING SHEET INSTRUCTIONS Your mark reading sheet is marked by computer and should therefore be filled in thoroughly and correctly USE ONLY AN HB PENCIL T0 COMPLETE YOUR MARK READING SHEET PLE4$E DO NOT FOLD OR DAMAGE YOUR MARK READING SHEET Consult the illustration ofa mark reading sheet on the reverse ofthis page and follow the instructions step by step when working on your sheet Instruction numbers 0 to ® refer to spaces on your mark reading sheet which you should fill In as follows 0 Write your paper code in these eight squares, for instance nann- The paper number pertams only to first—level courses con3isting oftwo papers WRITE for the first paper and n for the second If only one paper. then leave blank Fill in your innials and surname 9 Fill in the date ofthe examination Fill in the name ofthe examination centre @900 WRlTE the digits ofyour student number HORIZONTALLY (from left to right) Begin by filling in the first digit ofyour student number in the first square on the left, then fill in the other digits, each one in a separate square In each vertical column mark the digit that corresponds to the digit in your student number as follows [-1 WRITE your unique paper number HORIZONTALLY NB Your unique paper number appears at the top of your examination paper and con5ists only of digits (8 g 403326) 6 0 In each vertical column mark the digit that corresponds to the digrt number in your unique paper number as follows [-] ® Question numbers I to 140 mdicate corresponding question numbers in your examination paper The five spaces With digits l to 5 next to each question number indicate an alternative answer to each question The spaces of which the number correspond to the answer you have chosen for each question and should be marked as follows H . For offiCial use by the mVIgllaIOI‘ Do not fill in any information here ...
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MNE202V-2010-10-E-1 - oct_Nov 10 - UNIVERSITY EXAMINATIONS...

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