CONFIDENTIAL Gorin, UN Vv ERSITY JANUARY SEMESTER 2011 FINAL EXAMINATION COURSE : ENTERPRISE DEVELOPMENT CODE : BMED5103 DATE : 20 APRIL 2011 DURATION : 3HOURS TIME : 9,00 A.M — 12.00 NOON INSTRUCTIONS TO CANDIDATES 4. This question paper consists of SEVEN QUESTIONS. Answer FIVE QUESTIONS only. 2. Write your answers in the Answer Booklet provided. This question paper consists of FOUR PAGES of questions printed on both sides of the paper, excluding this page.[BMEDS103NJANZ011F-FA INSTRUCTIONS: 1. THERE ARE SEVEN (7) QUESTIONS IN THIS PAPER 2. ANSWER FIVE (5) QUESTIONS ONLY. Question 4 For some, becoming an entrepreneur is a lifelong dream. I's the excitement of an unlimited income or a way to pay bills. I's the dream of never having a boss or the dream of being the boss. It's the desire to leave a legacy. It's the joy of producing the perfect product. It's the thrill of developing a new service. a. __ Discuss FIVE (5) characteristics to be an entrepreneur. [10 marks} b. Identify and discuss FIVE (5) factors that can cause entrepreneurs to fail [10 marks} [TOTAL: 20 MARKS] Question 2 In the past many companies faced competition from great, average and bad companies. The bad and the average are being eliminated rapidly, and what are left were the top-notch companies that are likely to survive. That puts pressure on all the surviving corporations, irrespective of size, to conduct precise and speedy market research, so as to offer products and services that match consumer's desires sooner than the competitor. a. Why is it more important than ever before for companies to speed up their market research? Support your answers with examples. [10 marks] b. How do you obtain information about business competition? Illustrate your points with relevant examples. [10 marks] [TOTAL: 20 MARKS]BMEDSTOQUANZOTTIF-FA Question 3 ‘Any new business venture has to be financially viable. It is essential that you establish the financial viability of your idea before you invest your own time and money into or approach outsiders to join you to invest in the venture. Discuss the followings: a. Provide FIVE (5) indicators how an initial sales forecast may be made. [10 marks] b. How do we estimate the costs associated with starting up and running the business? Explain your answers with relevant examples. [10 marks} [TOTAL: 20 MARKS] Question 4 Borrowing someone else's money to help you grow your business has many attractions. ‘High gearing’ is the name given when a business has a high proportion of outside money to inside money. Consider these two sources of fund: friend/family and credit cards. a. If you are willing to borrow from friends and family, what precautions can you take to prevent potential issues and problems? [10 marks} b. When selecting credit cards as a source of fund, what are the risks you need to consider? [10 marks] ITOTAL: 20 MARKS]‘|MEDS109/JAN2011/F-FA Question 5 Ifa business chooses to dominate the markets it must also choose to make the best use of the best people. This means that you must plan to attract, retain and make the best possible use of the best people available. a. __In seeking potential applicant, identify and discuss different ways of attracting potential candidates. [10 marks} b. One of the biggest mistakes that many owner-managers make is to assume that money alone is the way to motivate and retain staff. Indeed, in most service based business, the demotivated people will walk out. Identify and discuss the non-monetary ways to motivate staff. [10 marks] ITOTAL: 20 MARKS] Question 6 Every year, thousands of entrepreneurs seek to realise all or part of the value in their business. Some want to retire, others are bored and want to move to something better. The routes to selling and placing a value are numerous. Identify and describe the following issues: a. Whatare the FIVE (5) common options for selling a business? [10 marks] b. _ Howare privately owned business typically valued? [10 marks] [TOTAL: 20 MARKS]BMEDSTOQUANZO11IF-FA Question 7 ‘The main reason for buying an ongoing business is money, primarily the oncoming income stream. If you do your research and strike a good deal, you may start making money the day you take over an ongoing business, but most start ups plug along for months (even years) before showing a profit. Identify and discuss the following issues. Provide examples to illustrate your points. a. __ Discuss the FIVE (5) considerations when buying an ongoing business, [10 marks} b. __ Discuss the FIVE (5) reasons that may lead a seller to want to get out of the business. [10 marks] [TOTAL: 20 MARKS] QUESTION PAPER ENDS HERE