CONFIDENTIAL BM/SEP 2011/ENT300/ETR300 UNIVERSITI TEKNOLOGI MARA FINAL EXAMINATION COURSE COURSE CODE EXAMINATION TIME FUNDAMENTALS OF ENTREPRENEURSHIP ENT300/ETR300 SEPTEMBER 2011 3 HOURS INSTRUCTIONS TO CANDIDATES 1. This question paper consists of four (4) parts : PART A (20 Questions) PART B (20 Questions) PART C (5 Questions) PART D (2 Questions) 2. Answer ALL questions from PART A, B, four (4) questions from PART C, and one (1) question from PART D. i) ii) iii) Answer PART A in the True/False Answer Sheet, Answer PART B in the Objective Answer Sheet.
Answer PART C and PART D in the Answer Booklet. Start each answer on a new page. 3. 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) ii) iii) iv) the Question Paper an Answer Booklet – provided by the Faculty a True/False Answer Sheet – provided by the Faculty an Objective Answer Sheet – provided by the Faculty 4. 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 CONFIDENTIAL CONFIDENTIAL 2 BM/SEP 2011/ENT300/ETR300 PART A 1. An entrepreneur is described as a person who acts as agent in transforming demand into supply. The statement, “A entrepreneur is an individual who actively forms or leads his own business and nurtures it for growth and prosperity”, refers to the functional definition of an entrepreneur. In Malaysia, small and medium enterprises (SMEs) contribute about 90% of the total value added in the manufacturing sector.
The franchisee is a company which sells the right to another party to operate the franchise business. In a franchise system, the advertising and promotional contribution is a one-off payment made by the franchisee to purchase the right to operate the franchise In Malaysia, the small and medium enterprises (SMEs) are commonly registered as sole proprietorship businesses. The affairs of all business entities in Malaysia are governed by the Memorandum and Article of Association.
In a partnership business, when there is no written agreement, termination of any partner must be agreed by all partners Under the Industrial Coordination Act (ICA) 1975, every manufacturing company is required to obtain a manufacturing license from Malaysian Industrial Development Authority (MIDA). Preparation of a business plan is a process that involves the identification, analysis and selection of viable business ideas. The executive summary is part of the main body of the business plan. A well prepared operations plan will help the entrepreneur to evaluate market acceptance of the product or service.
A “process chart” refers to a diagram showing the arrangement of machines, equipment, workers and other facilities used in the operations Compilation of geographic, demographic and psychographic factors is a process of market segmentation. The term “target market” refers to the group of customers with needs and wants that can be satisfied by the business through the supply of goods or services. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. It is not mandatory for employers to contribute to the Employees Provident Fund (EPF) as long they have contributed to the Social Security Organisation (SOCSO). Hak Cipta Universiti Teknologi MARA CONFIDENTIAL 16. CONFIDENTIAL 3 BM/SEP 2011/ENT300/ETR300 17. The nature of industry is normally described in the organization aspect of the business plan. One of the main reasons for preparing a cash flow statement is to determine the expected profit for the planned period. Deposits and pre-operating expenses are examples of expenditure that are required to start a new business. The main objective of Bumiputera Entrepreneurs Retail Project Fund (PROSPER) is to enhance and upgrade Bumiputera entrepreneurs’ participation in the retail business. 20 marks) 18. 19. 20. © Hak Cipta Universiti Teknologi MARA CONFIDENTIAL CONFIDENTIAL 4 BM/SEP 2011/ENT300/ETR300 PARTB 1. Which of the following activities is related to entrepreneurship? A. B. C. D. E. Creation of something new of value Creation of wealth Production of products and services Expansion of business entities All of the above 2. Who described an entrepreneur as a knowledgeable individual and is instrumental in the development of a city-state where enterprise will emerge? B. C. D. E. F. Joseph Schumpeter Adam Smith David McClelland Carl Menger Ibnu Khaldun . Which of the following statements best describes an entrepreneur who has internal locus of control? A. B. C. D. E. He believes that success or failure is determined by his own effort. He believes in himself. He does not belief that success or failure of his venture is determined by fate or luck. He desires to take personal responsibilities. He examines the situation and determine how to increase the chance of winning a business situation 4. The statement, “a successful entrepreneur places the highest priority on getting a job completed”, is associated with: A. B.
C. D. E. Commitment to work contract Concern for high quality of work Efficiency orientation Systematic planning Problem solving 5. Which of the following phases of creativity process involves discovery of the idea or solutions to the problems? A. B. C. D. E. Background or knowledge accumulation Incubation process Idea experience Evaluation and implementation None of the above © Hak Cipta Universiti Teknologi MARA CONFIDENTIAL CONFIDENTIAL 5 BM/SEP 2011/ENT300/ETR300 6. Which of the following is a source of innovation within the company or industry? A. B. C. D. E.
Demographic change Incongruities New knowledge Change in consumer preference None of the above 7. Which of the following statements is TRUE about a partnership business? A. B. C. D. A partnership business is incorporated under the Companies Act 1965. A partnership business is incorporated under the Partnership Act 1961. A partnership business is incorporated under the Business Registration Act 1956. A partnership is a legal entity and its identity is separate from the identity of its members. E. The life p of a partnership business is not dependent upon the death or resignation of its members. . Which of the following statements about a private limited company is NOT TRUE? A. A private limited company can take legal action and face legal action under its own name. B. The life p of a private limited company depends upon the death or resignation of its members. C. The liabilities of the members in a private limited company are limited to the total shares contributed to the company’s capital. D. A private limited company must have at least two members who are of Malaysian Nationalities. E. The company’s shares cannot be transacted through the share market. 9.
Which of the following statements is TRUE about a franchise business? A. A franchise is a product and/or service distribution system governed by a contract made between two parties i. e. the franchisor and the franchisee B. A product/trade name franchise is a system where the franchisee acquires sales right which includes the trade name, trademark, and/or products from the franchisor upon the signing of the dealership contract. C. A business format franchise is a system where the franchisee is granted the right to manufacture and market the franchisor’s product and/or services using a complete franchisor’s business “set-up”.
D. The franchisee is a person who purchases the right from the franchisee to operate the franchise. E. All of the above are true. 10. Which of the entrepreneurs? A. B. C. D. E. following ministries/agencies provides financial assistance for Federal Agricultural Marketing Authority (FAMA) Malaysian External Trade Development Corporation (MATRADE) Malaysian Entrepreneurship Development Centre (MEDEC) Perbadanan Usahawan Nasional Berhad (PUNB). Malaysian Industrial Development Authority (MIDA) CONFIDENTIAL © Hak Cipta Universiti Teknologi MARA CONFIDENTIAL 6 BM/SEP 2011/ENT300/ETR300 1. Which of the following statements is NOT TRUE? A. Construction of buildings can only be undertaken with the written approval from Local Authority. B. In setting up a manufacturing business, a planning permission from Local Authority is needed. C. All business licences related to factory premises, advertising signage, storage and canteen must be obtained from Local Authority. D. The environmental control and approval are under the responsibility of Local Authority. E. All of the above are not true. 12. Which of the following statements is NOT TRUE about a business plan? A.
A business plan is a written document that describes the proposed business or project in a comprehensive manner. B. A business plan can be used as a basis for determining the viability of the new business. C. A business plan can be used as a communication tool to convince potential investors of the viability of the new venture. D. A business plan enables the entrepreneur to distribute business resources more effectively. E. A business plan enables the entrepreneur to evaluate and select a viable business idea. 13. Readers of a business plan include: I. II. III. IV. A. B. C. D. E.
Employees Investors Suppliers Registrar of Companies II only II and III only I, II and III only I, II, and IV only All of the above 14. Which of the following is an objective of preparing a marketing plan? A. B. C. D. E. To evaluate market acceptance To develop marketing strategies for products or services offered by the business. To identify required resources to execute the marketing strategy. To estimate financial requirements for the marketing activities. All of the above are objectives of preparing a marketing plan. © Hak Cipta Universiti Teknologi MARA CONFIDENTIAL CONFIDENTIAL 7 BM/SEP 2011/ENT300/ETR300 5. The following factors should be considered when determining distribution strategy, EXCEPT: A. B. C. D. E. Type of product Target market Market share Market coverage. Product standardization 16. Which of the following information should be included in the “organization” aspect of the business plan? A. Background of the registered owners of the business including their relevant qualifications, skills, experiences, role in business and stake or share in the business. B. Mission statements which describe how entrepreneurs will achieve their purposes in the environments in which they conduct business.
C. Nature of the industry, including economic trends, important legal or regulatory issues, and potential risks. D. Product characteristics, distribution, promotion, and pricing strategies. E. Amount of funds needed to run the business, amount available, and amount requested from new sources. 17. Which of the following factors should be considered when choosing suppliers for raw materials? A. B. C. D. E. Quality of the materials supplied Price and discount offered Payment and delivery terms Time between orders and delivery All of the above factors should be considered 18.
Which of the following statements is NOT TRUE about a process chart? A. Symbols used in the process chart can also be used in a Job Activity Chart of a worker. B. Process Chart will show the sequence of activities required to produce the product or services. C. In a process chart, “delay” means the process is delayed because the materials-inprocess are waiting for the next activity. D. The symbol ” V ” indicates the movement of materials or goods from one place to another. E. The first step in preparing a process chart is to identify all the activities involved to manufacture the product or deliver the services. Hak Cipta Universiti Teknologi MARA CONFIDENTIAL CONFIDENTIAL 8 BM/SEP 2011/ENT300/ETR300 19. Which of the following statement is TRUE? A. Sources of finance refers to the sources where funds to finance a particular project implementation costs can be obtained. B. Internal sources of finance mainly come in the form of cash contributions or other assets from the entrepreneurs. C. External sources of finance are mainly derived from commercial banks, finance companies and government agencies. D. External sources of finance may come in the form of term loans, hire purchase or grants. E. All of the above are true. 0. Which of the following statements is TRUE? A. Pro forma income statement refers to the projected statement of cash inflow and outflow throughout the planned period. B. Pro forma income statement shows the expected profit or loss for the planned period. C. Pro forma income statement shows the financial position of the business at a specific point in time in terms of assets owned and how those assets are financed. D. Pro forma income statement shows the beginning and ending cash balances for a particular period. E. All of the above are true. (40 marks) © Hak Cipta Universiti Teknologi MARA
CONFIDENTIAL CONFIDENTIAL 9 BM/SEP 2011/ENT300/ETR300 PARTC QUESTION 1 Briefly explain five (5) of the personal entrepreneurial competencies (PEC) associated with successful entrepreneurs. (5 marks) QUESTION 2 What are the criteria used to evaluate and select viable entrepreneurial opportunities? (5 marks) QUESTION 3 What are the factors that you need to consider when choosing a location for your business? (5 marks) QUESTION 4 In preparing the organization plan, it is important include the organization structure of the business organization. Briefly explain the various types of organizational structure. 5 marks) QUESTION 5 Briefly discuss the importance of preparing financial plan. (5 marks) © Hak Cipta Universiti Teknologi MARA CONFIDENTIAL CONFIDENTIAL 10 BM/SEP 2011/ENT300/ETR300 PARTD QUESTION 1 Define the term “entrepreneurial motivation”. Discuss, with examples, five (5) common characteristics of achievement-oriented entrepreneurs. (20 marks) QUESTION 2 Explain the importance of materials requirement planning. Describe the steps involved in materials requirement planning process. (20 marks) END OF QUESTION PAPER © Hak Cipta Universiti Teknologi MARA CONFIDENTIAL