Answer question No 1

Entrepreneurship: - is a practice and a process that results in creativity, innovation, and

enterprise development and growth.

Entrepreneur: - is any person who creates and develops a business idea takes the risk of
setting up an enterprise to produce a product or service which satisfies customer needs.

Answer question No 2
They are many ways of Economic Development role

1. Improvement in per capital Income/ Wealth Generation

2. Generation of Employment Opportunities
3. Inspire others Towards Entrepreneurship
4. Balanced Regional Development
5. Enhance the Number of Enterprise
6. Provide Diversity in Firms
7. Economic Independence
8. Combine Economic factors
9. Provide Market efficiency
10.Accepting Risk
11.Maximize Investors Return

Answer question No 3
Creativity: - is defined as the tendency to generate or recognize ideas, alternatives, or
possibilities that many be useful in solving problems, communicating with others, and
entertaining ourselves and others.
Creativity is the development of ideas about products, practices, services, or procedures
that are novel and potentially useful to the organization.

Innovation: - is a process of intentional change made to rate value by meeting opportunity

and seeking advantage.
Innovation it is the implementation of new idea at the individual, group, or organizational
level.

Answer question No 4
Components of business plan

1. Marketing plan
2. Operational plan
3. Organizational plan
 4. Financial plan

Answer question No 5
1. Proprietorship form of business with single owner who has unlimited liability,
control all decisions, and receives all profit.
 Advantage: - transferability of interest has complete freedom to sell of
transfer any part of business.
 Costs of starting business is none other than filling fees for trade name.
 Disadvantage: - attractiveness for raising capital depends on capability of
proprietor and success of business.
2. Partnership: - two or more individuals having unlimited liability who have pooled
resources to own a business.
 Advantage: - no limitation on number of partners.
- Costs of starting business is by partnership agreement, legal costs,
and minor filling fees for trade name.
- All general partners have equal control and majority rules.
 Disadvantage: - death or withdrawal of one partner terminates partnership
unless partnership agreement stipulates otherwise.
- General partner can transfer his/her interest only with consent of
another general partners.
3. Corporation: - separate legal entity that is run by stock holders having limited
liability.
 Advantage: - there is no limitation on number of stockholders
- Continuity of the business is greatest continuity
- Death or withdrawal of owner will not affect legal existence of
business
 Disadvantage: - in management control majority stockholders have most control
from legal point of view.
- Day to day control in hands of management who may of may not be
major stockholders.

Answer question No 6
Copy right: - is right given to prevent others from printing, copying, or publishing any
original works of authorship.

Trad mark: - it may be a word, symbol, be sign, or some combination of such, or it could
be a slogan or even a particular sound that identifies the source or sponsorship of certain
good or services.

Brand: - a category of products that are all made by a particular company and all have a
particular name.

Answer question No 7
 1. Selling Starting point of selling factory
Marketing starting point of marketing is market place
2. Selling focus on existing product
Marketing focus on customer need
3. Selling ends with profit through volume
Marketing ends with profit through satisfaction

Answer question No 8
 Internal source
- Personal saving
- Friends and relatives
- Partners
- Public stock sale
- Angles
- Venture capital companies
-
 External source
- Commercial bank
- Trade credit
- Equipment supplier
- Account receivable financing
- Credit unions
- Bond

Answer question No 9
1. Donation based crowed funding
2. Rewards based crowed funding
3. Equity based crowed funding

Answer question No 10
Economic sustainability: - values long term financial solidity over more volatile short-
term profits.
- Have responsibility to create business plans allowing stable and prolonged action .