VIF OEY ip Skills And Development Study Guide ‘Welcome to this module on entrepreneurship. This module is a culmination of your study effort upto now. twill equip you in preparing fog, the examination at the énd of the yea¥- ‘The purpose of this booklet is to guide - you in mastering this subject. Guide to answering exam questions ‘A well presented answer will make it eaSier for the examiner to read answers and to obtain a view with regard to a student’s knowledge +" Answers minst be neat, well organized and grammatically edited. : * Marks are given on the appearance of the answer, the - neainess, quality and knowledge of ‘text. * Students should give their answers in a logical and organized manner so that they do not loose marks. Prepared by F.Chibatamoto. & C. MangwandaEntrepreneurship Skills And Development Study Guide Entrepreneurship Suny 2007 Questions \ f 1. Distinguish between Entrepreneurship and intrapreneurship 2 2. (@) Differentiate between an Intrapreneur and entrepreneu. / p] (>) Distinguish between entrepreneurship and management | (J Nov 2007 Questions 3. Define an entrepreneur. a 4. List four characteristics of entrepreneurs [2] Nov 2007 = Outline briefly any 3 entrepreneurial characteristics [3] 6. Give 3 types of start up capital, which might be used by an entrepreneur [3] 7. State the 4 agents of production and the reward thet each gets [4] §. What income goes to the agents of production [4] Nov 2007 Answer 1. Entrepreneurship is the process of bringing together creative and innovative ideas and coupling these with management and organizational skills in order to combine people, money and other resources to meet an identified need and thereby create wealth (at profit) whilst Intaapreneusship is the process of being innovative and creative in an existing organization. 2. Aijinttapreneur is an employee or manager who is innovative and creative within an existing firm. Whilst an entrepreneur is an initiator, originator of an enterprise, wi “prgutizes or indnages coinineicial undertaking and mobilizes / c6iibines factors'6 production (capital. labour) to meet identified needs and wants / solve society's ‘problems 3, Amentrepreneur is an initiator, originator of an enterprise, who organizes or manages commercial undertaking and mobilizes / combines factors of production (capital, about) to meet identified needs and wants / solve society’s problems 4&5 Characteristics of an entrepreneur 2) Risk taking — take calculated risks, forecast and foresees the future ) Inmipvative— provide unique services ¢) Creative — develop the future and give efficient services @) Organized- demonstrate good mansgerial principles “e) Custotter orientation — Centre of customer needs and carry out aconstant needs analysis 4 Prepared by F.Chietamoto & C. Mangwatda/ f 10. * Discuss the importance of entrepreneurship and entrepreneurs’ for social and Entrepreneurship Skills And Development Smdy Guide Avis 4) Flexibility — takes identified opportunities with caution and makes ‘Be out of them 2) Tategrity — must be a principled entrepreneur h) Patriotic ~ business should sustain itself without over profiteering i) Reliable ~ should be dependant upon for services J) Profit oriented — employ profitable business approaches to strengthen and enlarge the enterprise ) Drive and energy — be tireless 1) Goal setting ~set specific, measurable, achievable, realistic and timely goals - m) Initiative — n) Honest— ©) Responsible — ) Industrious 9) Confidence in ebility to succeed — 1) Desire for immediate feedback — 8) Future orientation — 1) Value of achievement over money — ») High degree of commitment — 6. Sources of cepital ¥ Personal savings > Selling shares > Leasing > Loan > Overdraft > Hite purchase > Debt factoring > Trade credit > Debentures > Retained profits > Selling of assets 7 & 8 Agents of production and their rewards Agent_ Reward /income Land rent Labour wages/salaries Capital interest Entrepreneurship profit Explain any 5 roles of SMES to the Zimbabwe econotay and society in general [10] Oct 2008 eepnomié development is Zimbabwe [20] yet ayy, = ” Prepared by F.Chibatamoto & C. Mangwanda 6Entrepreneurship Skills And Development Study Guide 7. Identify 5 contributions made by small businesses to the community. [5] Nov 2006 Answer 9,10 & 11 Provision of a variety of products & Provision of job opportunities for locals Improve standard of living of locals & welfare &S Increase consumption of a Variety of goods Provide cheap convenience since transport costs io other areas is eliminated. A means of mobilizing the resources of a country and strengthening its capacity ¢ Empower marginalized groups in societys Promotion of Privatization © Promote an innovative and competitive economic structure better equipped to respond to the grass roots needs ofthe communities and markets’ they serve. 6 Eam foreign.currency for the country ¢ . Increase the GDP through their innovations and creativeness 12. Name the 2 major types of entrepreneurship environment. py Meet Micro abiGe eo : gid (40 GT Tecvealo LEY. i 2 fa cuits = olftee{ p AcGnctied 4) b) Give any 2 factors of each type. [2] Nteos | weidijpied th pants 2) Describe how one of the factors affect the entrepreneur and how he / she can minimize its negative impact on his business [3] : 13. An entrepreneur needs to understand and respond to his environment to survive. Describe 5 factors in the business environment, which can affect a business enterprise. {10} Answer 12 & 13 * Political environment ~ stability, instability, political parties, government » Economic environment — interest rates, forex, inflation, income tax. * Social cultural environment — beliefs, values, norms, artefacts * Technological Intemet, e-mail, website vVv¥V vyvvvy ¢ vy Competitors — strategies, level Legislation/ government /Intemational laws —nules; laws 14. Explain why small organizations are able to survive and compete with large organizations under Zimbabwean harsh business environment. [20] 15. Appraise te statement that small scale entrepreneur continue to survive despite the existence of giant businesses. (20), Oct 2008 veseartn oy Answer 14 & 15 >. Supportive government laws end regulations, Tow taxes, AAG, cross border ‘Association ~- 2» Provision of substinne goods... sip a oe Spectal do Gia” Firms <5 leréalang a - eet by Bains, ae trangpat- , Grrrenserc2 : Prepated by F.Chibstamoto & C. Mangwanda 7ag eee oe. ee Entrepreneurship Skills And Development Study Guide > Accessible location of the business > Personal touch (know customers by name) > Breaking bulk > Convenient opening and closing hours - 7 ‘State and explain ways by which your small business might compete with | Pak business. [10] ‘Nov 2006 Answer M + Reserve bank of Zimbabwe's financial support to small businesses + Finineial and advice froni Ministry of SMEs * Government subsidies resulting them in getting inputs at a lower cost price than larger firms Low interest rates from eg. Agri-bank, CBZ* Governinent’s black empowerment policy Government's indigenous policy Entrepreneurship training programmes by government 16. Customer Care _ 17, Téentify and explain any 5 benedits that an entrepreneur gets from good customer care [10] Oct 2008 18, Explain the usefulness of customer care to the entrepreneur [5] \_Oct 2008 Answer : » New business and increased profits * New customer creation = Dialogue created which enables the entrepreneur to know and understand what customers need and want. * Build good relationships and loyalty with customers * Build good reputation and good image * Business becomes a market driven entity as you get information on what your customers need and want. 7 = Marketing by word of mouth * Reliability- consistency of performance and dependability » Responsiveness - willingness and readiness of the entrepreneur in providing the services within reasonable time immediately if not sooner » "Competence — possession of required skills and knowledge * Accessibility — degree of approachability and case of conduct * Courtesy — politeness, respect, consideration and friendliness of your organisation’s contact e.g. receptionist, telephonist etc. * Communication ~ keep your customer well informed they understand * Credibility — being trustworthy and faithful = Seoutity = customer should be protected fiom danger, risk or doubt from the premises « “Tangibles — physical evidence e.g. buildings, good handling tools and * appearance of personnel 9. Outline and explain any 4 tips of customer care [8] \_ CG , Answer Prepated by F.Chibatamoto & C. MadgwandaEntrepreneurship Skills And Development Stidy Guide f Business Forms 20. Seifemployment through being a solé trader or engaging in SMEs has benefits and Himitations / challenges. Dicuss this statement [20]. Se 21. Define the following terms a) Unlimited liability b) Separate legal entity =~ ¢) Articles of association 22.(¢) Give any 5 forms of business that you know (5) (@)Define legal personality in status of am organization.* 23.) Disouss and 4 advantages and disadvantages of sole proprietorships [8] Nov 2007 +) Distinguish between the stakeholder and shareholder [3] _ Nov 2007 JA. Give 2 advantages of the following © 2) Sole trader b) Partnership ©) Public limited a d) Private limited ‘e) Private business corporations [10] r 25.) Outline any 2 advantage and disadvantages of partnerships’ [4] b) Outline the implications of the legal status for @ company [3] 26. Evaluate sole trader / proprietorship and partnership forms of ownership. (20) See answer for question 20, 23 and 24 and b 27. Compare and contrast Private Ltd companies and Publie Ltd companies [20] Answer 20, 23a), 24a) Sole trader ‘One person business which is owned, controlled and. managed by a single individual. « Advantages Eesy to start Easy to discontinue Know special legal restrictions Fast decision making Enjoys privacy ‘Profits ate not shared Disadvantages Suffer from unlimited liability ‘Latk of continuity " eacle «-Bownd-te pass poor decision —-—-———a Preparéd by,F Chibetamoto & C. Mangwaride ,Entrepreneurship Skills And Development Study. Guide ‘No speciliasation and division of labour / ‘Answer 21, 22 (b) and 25 (©) Y Unlimited Viability ~ Business and personal assets are taken in the event of failure to pay creditors. «Affects partnerships and sole traders. Separate legal entity/ legal person: status | = This means that the company is separate from the shareholders, hence it can be sued or can sue in its own rights Articles of association = This is a document which governs the intemal relations of the company it includes the company constitution, voting rights transfer of shares eto Public enterprises Socially ovmed and operated organizations with the intention of supplying goods and services at reasonable prices for the benefit of the whole community Answer 22 2) Forms of business enterprises a) Sole trader b) Partnership c) Public limited 4) Private limited e) Cooperatives £) Parastatals (Public enterprises) Answer 23 (b) 'A shareholder is an owner of the business in a limited company ‘who assumes umership by buying a share whilst a stakeholder is someone who has interest in an organisation but is not an owner of the business Answer 24 (b) & 25 (a) Partnerships Advantages » effective management + sound capital base + development of close personal relationships + consultative decision making + careful handling of financial affairs Disadvantages ‘suffer ftom unlimited liebility + decision making may be time consuming = lack of continuity «disagreements and conflicts may arise between partners Prepared by F:Chibatamott & C. Mefigwanda/ Entrepreneurship Skills And Development Study Guide Answer 24 c,d & 27 Registered companies es Advantages ~ Separate legal entity - limited liability of owners - easy transfer of ownership - greater financial capability ~ ability to fund innovations ~ customers feel reassured Disadvantages ~ special and double taxation + costly to form impersonality inflexibility of size - disclosure requirements ~ bound. by government regulations Cooperatives Advantages * Limited liability ~ Easy to raise money * Business conducted for mutual benefit of members ™ Free to employee personne! with relevant qualifications. Disadvaniages Difficulties in finding members who posses the much needed skills * Lack of commitment by some members * Breakdown in communication between members * Disagreements between members °8. Giving examples, discuss factors that influence (er ee of business / organizations in Zimbabwe [20] Answers fs + Capital- amount to start the business ‘+ Market- needs and preferences of custamers Z + Accessibility network in terms of roads , rail, telephone + Productiservice being supplied — space needed ‘+ Competitors —number of suppliers in the same trade area + Size of the business * Culture —values, beliefs and norms which affects consumption habits and purchase behaviour 29. Name any four things that should be included in a memorandum of association 4 Coitents of Memorandum of Assotiation "" Compatiy nme ae. * Local of the comipasiy (physical aiid postal sdddredsy Prepeied By F.Chibatarhoto dC: Mingwanda’ iEntrepreneitrship Skills And Development Study Guide Minimum share capital to be raised How capital is raised Company colours and logo ‘Area of trade Expensive forma of ownership to establish Postal decision - making authority — enjoys privacy ‘No special legal restrictions — profits are not shared Easy to discontinue " Management : 29, a)Define manegement in its broad perspective. _ [3] _ Nov 2006 b)Briefly explain the elements of management. * [12] 30. Explain the 4 functions of management. (8] 31. State and explain the principles of management. [4] ~ 32. Describe and explain the main management functions /elements / principles. [20] 33. Identify the 4 principles of management [4] Answer 29 to 33 Defi n_ of management ‘Management is a process of ensuring effective and efficient use of an organization’s financial and non-financial resources through planning, organizing, leadership and control. Functions or principles of management Planning + Results in business plans = Results in goals and objectives which show intended directors in terms of desired performance * Results in specific course of action, which act as a rod map-work towards. ___ u achieving goals and objectives * Provides a basis or benchmark for measuring and evaluating progress diiting control process. + Can be motivational if challenging. objectives and strategies are set. Organizing Results in organization structure : Results in breaking down of workload into clear and simpler units Te shows clear lines of authority and communication It shows allocation’of resources It shows distribution of duties Leadership Is the ability to influence others or a group towards the athievement of set goals or desired objectives. * Results in motivational workforce «Ensures efficient co-ordination of activities in an organization. = Prepared by F.Chibataméto & . Mengwande wm‘Entrepreneurship Skills And Development Study Guide = Improves manager -worker relations * Can lead to increased productivity Control + Results in establishing standards of performance * Allows comparisons between planned performance and actual performance «Allow identification of deviations fom plan and taking corrective action. Marketing 34. The marketing mix consists of Zps. Name them. [3.5] 35. Whatare the 7ps‘of marketing? [7] 36. . Discuss the role of marketing in a small business. [8] Nov 2007 37. State five (5) roles of marketing in an organization [5]° Answer 34 to 37 Is the process by which a business satisfies thee needs of its customers at a profit which satisfies its needs. Roles of marketing > Enable the organization to analyse the firm's competitive situation. > Gives the organization a realistic appraisal of 2 merket’s potential and & ‘uncovered new opportunities. Suggests alternative marketing strategies Coordinates the firm’s marketing weapons To increase sales Promote goods and services To provide information on demand, competition To satisfy customer’s needs or wants to a company’s marketing offering. vyvyyv Question An individual goes through a series of procedural and mental activities in the buying process. List and explain the essential elements of the decision making process (DMP) 6) Answer 2)” Need identification the individual senses a différence between his actual and some desired state. B.g; one feels hungry Prepared by F.Chibatemoto & C: Mengwanda 3Entreprenewrship Skills And Development Stdy Guide b) Information search — the individual looks for information on what to buy at what price and where to buy it. ©) Evaluation of alternatives — here one evaluated products benefits and brand image to arrive at a decision and brand choice 4) Purchase decision — the individual makes a decision to buy or not to buy. The decision is determined by a combination of factors. ©) Post purchase behaviour ~ our evaluation is influenced by our expectations. If product performance exceeds expectations then the customer is delighted and this leads to repeat purchases : b) Information search — the individual looks for information on what to buy at what price and where to buy it Question List and explain the adoption process ‘Awareness — one is made aware of the existence of a product but lacks a) information on it b) __interest—The person, because of needs, becomes interested and goes ahead to search for information c) Evaluation — from the information sourced one evaluates the benefits of the product 4) Trial ifthe evaluation is positive one might buy the product on a trial basis to estimate value : July 2008 52. a) Explain the importance of pricing to a firm \@ b) Describe 4 pricing strategies a firm can use ey Answer Liaportance of pricing Determines the survival of a firm through revenue generation Ht cothtnunicates or suggests the value of a product or service Ttean be used for promoting a firm’s product To introduce a new product and challenge competition Used for positioning products or services in different market segments. Pricing strategies Cost- based/cost plus pricing Is the adding of a standard mark up to'the cost of a product. The most critical element int this process is the allocetion of overheats which is often the most arbitrary. Is usually used when the supplier has a long term relationship with a customer. Sellers tain a fair return but do not take advantage of buyers when demand becomes great. Situply caléulates all costs and adds a.mark up. The pefcenttage mark up depends on other vatiables like competition and demand. ‘Competitor based pricing Prepared by FiChibetamoto & C. Mengwenda 14Entrepreneurship Skills And Development Study Guide “The findl price is based on those charged by competitors. Has a disadvantage that the method assumes marketing objectives and costs are the same. ‘Demand based Pricing ‘The price is a function of demand intensity. When the demand is high the price is increased and when deniand is low the price is lowered. This is usually used when firms bid for jobs. Using sealed bid pricing, a firm bases its price on how it thinks competitors will price rather than on its owm costs or on the demand. Its also facilitated by the going-rate price charged by the competitors. Break even pricing ; This method is based on cost and is used to calculate the profit potential of a product. Has the advantage that it indicates the level of sales before profits are made and shows the firm how profitable a product will be before the firm commits it self to commercialisation. Its disadvantage is that it does not take into account competitors” price. tis usually used by public utilities which are constrained to make @ fair return on their investments. Psychological pricing Playing around with customer's minds by heving Price reductions, cents off, odd pricing Bait pricing ‘This is where the entrepreneur charges low prices on @ particular popular product so as to attract customers into the shop. Il is used to convince customers to trade up to @ better and more expensive items, it is successful demand for higher quality products expands. This type of strategy is criticised as unethical. Promotionel pricing Loss leader products (charging at below cost price to aftract customers) Buyer/value based pricing Pricing according to sensitivity of customers ie. price sensitive, non sensitive. Uses buyers perceptions of value, not the sellers’ cost, as the key to pricing. Marketing mix variable are taken into consideration Geographical pricing Pricing according to customers area of location ie. distance ‘of delivery or status of an atea or operational costs like rates and rents. Full line pricing Is setting prices for a whole line of products. This depends on the situation the enterprise is facing. Firstly, the company's line products are aimed at the same general market, which makes it important for all prices to be related. Secondly the products can be aimed at entirely different target markets hence no relation between Yarious prices is necessaty. “Question 2 ‘Wdentify four unique characteristics of services thet differentiate servite a from product marketing-and explain how each is-2-challenge to a. marketer 18} = ay Prepared by F.Chibatamoto & C. Mangwanda : 1s38. 39. 40. 41. Entrepreneurship Skills And Development Study Guide Answer a) __ Intangibility —imeens that services, unlike physical products cannot be seen, tasted, felt, heard or smelt before, they are bought. They come in the form of experiences or processes. They are a challenge because they cannot be branded and neither can they be displayed in shelves to stimulate impulse buying. >) _ Perishability — services cannot be stored or transported (perishability) and this, means a service not consuffed at that time itis available is lost forever. The marketing challenge is to try and strike balance between the output and a given certain capacity : ©) _Inseparability— services are bought and consumed at one and the same time. Since services cannot be produced, stored and later consumed like goods image becomes the key factor in differentiating services fom those of competitors. Marketers need to shape the behavioural personalities of people who interact with customers so that the service they offer is what customers ‘want. 4) Heterogeneity — products are standardised. With services the precise nature of ‘what is offered depends on each transaction because of its labour — dependence characteristics. No two lectures.ere the same even though the lecturer might be the same Public Relations Explain the following terms: public relations [1]. Nov 2007 State any 4 publics of an enterprise [4] Explain the importance of Public Relations [3] Describe the activities performed by the public relations department in any business organization. [8] Answer 38 to 41 Definition of Public Relations Ts a deliberate, planned and sustained and sustained effort to establish and maintain smutual understanding between the organization and its publics. Deliberate- Planned — it is systematic and follows detailed steps Sustained —it is an ongoing analysis Estsblish ~ create a climate of understanding between the organization atid its publics Mutual — equally beneficial comprehension to build positive relationship _ * publits — interhal and eiterixal groups that influence the organization and its operations : \_ Prepared. by F.Chibatamoto-& C-Mangwanda. —..- - —--~ - 16-Entrepreneurship Skills And Development Study Guide Publics of an organi a Customers Suppliers Shareholders Employees Financial institutions (banks) Government agencies Society in general Activities performed by the PR department Planning and advising Media relations and development Organizing finctions ‘Writing articles Eéiting publications Production of communications Presentations of speeches Training ‘Management of personnel, budget eto. © ~~ vyvvvyy vvvvYVvvyl Roles of PR department Creates favourable news about the organisation Identify media Speeches Builds corporate image ‘Manages / reduces crisis, Events drawing attention to new-produets or other company activities by arranging special events like news conferences, seminars, exbibitions etc. vyyyyv Human Resources Management f 42. Describe 5 (five) functions of Human Resources Management (10) 5 aa Answer . a) Human resources planning — involves determining arid assuring the organisation of adequate numbers of qualified persons that will be available at proper times. b) Selection — involves screening job applicants to ensure that the most appropriate candidates are hired. ©) Recruitment ~ process of locating, identifying and attracting capable applicants 4) De-cruitment—is the process of identifying and removing personnel that is not fequired anymore through firing and cut backs. ¢). Orientation/itduction — introduction of & new employee to his new work environment e:g. induction course, tour of the premises, mission statement, seminar and presentation of conditions of services... creole. Windility } Enables correct costing and pricing Jusk@ Wes galsceeteininity | Gukeoso Signy Frau « * Accurate and faster decision making OF Atuate + Facilitates effective stock control Promotes growth or business expansion ' Enables evaluation of performance of the business recere\ (erp Helps in establishing trends A Stock Promotes effective planning, organising leading and controlling the use of organisational resources. deyrbro\ $0 «Helps to solve disputes in finance . Ownsy (ousjis@5Se It acts as future of Dook levels Reduces pilferages \a * Reduces costs e.g storage costs ‘| | “3: ier (Any, 10 points x 2 marks=20 marks), — Pea Ahersteku, | ewer ~\ cvenkce renee posihe— he wae as tage QUESTION 4 a) Tt helps in corporate image building ) Cuyod\orpiess * Increased customers “CS \S cy. ° Encourages mutual relationship with the society © Customer loyalty | efterke Wwadtehey increased sales joys, Pepe * Increased profits ertoa ee 4° Business expansion (2 marks each ae 5 points toes ae on B) Risk identificaBh dee * Risk evaluation | AS;es) meh 7 bull(Ue Pa * Risk management measures © % Jee of Me + Risk control and review (2,marks for definition of risk=2 marks) ne wrowergi~ee marks for each step x4 =8 marks ; Ws flewen. ab oseenees Gisiz plans)ee PAPER NO: 402/13/S01-ENTREPRENEURSHIP SKILLS DEVELOPMENT ourstions —E xo lone a lo Av Wh LASS Le 5S i finr\ + Poor Daaies * Ignoring customer needs * Inability to plan * Inadequate resources «Lack of information * Lack of commitment * Inability to learn from failure + Premature sealing © Lack of focus * Over expansion * Wrong partners * No succession ple + Macro C8UHBEME Pectors . * Poor financial management is ntified ¢ and explained x 2 marks=20 marks) ae - poet ‘page ae Coe UESTI tito ete Ausort maker to -eRleg Ue its> oer She bas tne Current products _New products Current markets [Market Product penetration development Uy wats Market diversification | New markets development Market penetration + Selling existing products to existing markets Market development + Extending existing products into new markets Product development * Developing new products for existing markets Diversification + Developing new products for new markets Identification of point or diagram 1 markx4= 4 marks Explanation of point 4 marks x 4 rharks=16 marks \ eat, snd fkss of the business Contributions of marketing to the suc _ Creating new customers of the business ~ Ysintain existing market through excellent valve delivery ~ Attracting new customers through promotional strategies _ Fighting competition by developing ‘marketing strategies to counter competition. _ -Satisfying customer needs thus maintaining - Ensures growth | Basuring profitability of the business e market share Any 5 points x i (5 marks} ns of customer care ness. 2) good reputations) Cre = Corpo! Promotes customer loyalty ~ Attraction of new customer ses sales profits Any 5 points «1 5 marks} Macro - environmental factors Political factors - Eeonomic factors = Social factors = Technological factors - Natural factors Any 5 points x 1 6 Crelaws an.) & ade of use conn es re ~ " keeping track cf files, do edules and deadlines. ABE) . Cost effective - Speed 1 Cheaper in zesearch and development * ‘Aecelerate the communication process - Storage {data ~ Can be used to hire at 4 interview new employees Any 5 points x i (5 marks}Ly ENTERPRENUERSHIP SKIL ks gement — is the process of planning, orgenising, leading and controlling (4 marks} 10) sc bigcuss gry & lool buviness prio qa ca) 2) WOAWIESS Im Yor Communi Excessive mat + Fraudulent sa - Bait and swi - Deceptive quantities in - Bribery Selling coun Selling good Any 5 points x 2 (16 m = Ss 5 of risks dak cam be pac Community Cy wen C4 ‘Seeking finance: mm ity in developing the success 0 cree 5 points x 4 & *? ro > D (eeunrporon C Swat 7 G2aeeveny (wore oe |€ Benefits of practising social responsibility Ww) Soa ie, i Goodwiti ee > 4 adver ses ts do ood reput ~ pala st > yeti 2x e creases profits - Positive public relations Corte oe leg. be, -. Satisfies employees [eects Soper - _ Satisfies customers a Any § points x 4 2 nual [owner (20 ma at Spe tn wel Toe 2 ling of products or services over elec=r er computer networks. Is the buying and sell gs the internet and rertising, the fede of ol ACU ac cas See’ - Helps in performing cost ~ vo! - Helps in setting target profits - Helps in budgeting Any 5 points x 4 (29 marks)Bit No: 402/13 01 = ENTERPS novia /— QudlinesOny far eegd Futnes 0F Sh a> usinesses Sales proprietor Apply to local authority for licence then register with appropriate ministry. etc Partnership Verbally or orally, partnership deed/articles of partnership, apply to local authority for licence, register with relevant ministry, ete ‘Name search registers Pr ene dum. of assoc’ in, articles of association then | 2 relevai companies but regi tion, then register as private Cooperatives - name search fence from local autho 1 with Ministry of youth development Gender and employment creation ete. - apply for ti Any 5 points x 4 fan