AMREF INTERNATIONAL TRAINING CENTER

COMMUNITY HEALTH
DIPLOMA (LEVEL 6)
DEMONSTRATE ENTREPRENEURIAL SKILLS
CAT 2.
Instructions to the candidate.
a) Answer all questions.
b) This work should be typed for submission. Using the same fonts and size(Times
roman-12)

Section A: 20 Marks.
1. Identify FOUR types of business records. [4Marks]
Purchase journal: This is a record of all daily purchase of stoke on credit.
Sales journal: This is used to record all the daily credit sales.
Purchases returns journal: Provides list of goods returned outwards supplies.
Cash book: This is the book in which all receipts and payments are made.

2. Highlight FOUR business support services offered in Kenya. [4 Marks]

Training services: To improve capital in entrepreneur management and technical skills.
Marketing services: to determine market demand and provide market linkages
Business counselling: improve in enabling business build credibility.
Banking services: reduce risk of handling cash and save funds for future use.

3. Outline FOUR emerging trends and issues in entrepreneurship today. [4 Marks]

Use of business plans which is becoming more of a requirement with many financial
institution.
Introduction of entrepreneurship education at all levels of education to inculcate
entrepreneurial culture.
Business clubs: entrepreneurs are more aware and are forming business clubs in order to
assess opportunity and market
New marketing method and technologies such as allowing managers manage their enterprise
in the comfort of their homes.

4. List FOUR competency skills required by an entrepreneur. [4 Marks]

Time management
Communication
Leadership
Decision making

5. Identify FOUR advantages of a market. [4 Marks]

Business efficiency- a market economy allows efficient allocation of resources as price signal
producer and consumer.
Innovation: Businesses are incentivized to innovate to stay competitive.
Consumer sovereignty: Consumers have the power to influence the economy by choosing
what goods they will buy>
Individual freedom: Allows individuals freedom to pursue their own economic interest>
 Section B: 30 Marks
6. Determining product demand, to a business person is very important.
a) Explain what product demand is. [2 Marks]
Refers to quantity of a particular product or service that consumers are willing and
able to purchase at a given price within a specific time or period.

b) Discus FIVE factors to consider when determining product demand. [10 Marks]
Target market: consider factors such as demographics and psychographics and
analyze your target market to understand their needs, preferences and purchasing
power.
Market research: it helps you understand customer preference, identify trends, access
competition and uncover unmet needs.
Unique selling proposition: determine your products unique selling proposition and
align with customer needs and preferences to drive demand.
Pricing strategy: consider pricing strategy and its impact on demand as pricing too
high or too low can affect demand therefore find the right balance
Market trends: stay updated on market trends as adapting to emerging trends can help
you capitalize on new opportunities and meet evolving customer needs.

c) Explain FOUR factors to consider when choosing a business environment. [8

Marks]
Competitive landscape: access the competitive landscape to help you understand the
challenges and opportunities in the market.
Risk assessment: assess overall risk profile, consider factors such as political stability,
security, evaluating potential risk and potential impact on your business.
Cost of doing businesses’: evaluate how costs such as labor, taxes, and utility expenses
align with your business’s financial capabilities and profitability goals.
Infrastructure: Adequate infrastructure enhance operational efficiency and facilitate
business activities.

7. Finance is a “basic need” for the survival of a business.

a) Discuss FIVE sources of business finance. [5 Marks]
Self-funding: entrepreneurs finance their business using personal savings or personal
assets, allowing full control and avoiding external funds.
Friends and family: this is borrowing from friends or family, tis source of funding
may involve informal agreements and loans.
Bank loans: banks offers various types of loans such as term loans and lines of credit.
Crowdfunding: allows businesses raise funds from a large number of individuals who
contribute small amounts of money.
Grants: government agencies, foundations offer grants to businesses in specific sector
or for specific purposes.
b) Explain FIVE factors to consider when sourcing for business finance. [5 Marks]
The amount required: clearly define purpose for which you need financing and
amount, understanding financial needs help you identify the right financing options.
Repayment terms: evaluate repayment terms offered, understand duration of the loan,
repay frequency and condition, choose terms that align with your business cash flow.
Profession advice: seek professional advice from financial advisors and legal experts
who specialize in business finance because they provide valuable insights and guide
towards the most appropriate financing option
Alternative financing methods: explore a range of financing options e.g. consider
crowdfunding, venture capital, angel investors or other creative solutions that might
be suitable for your business.
Funding source reputation and stability: research reputation and stability of potential
funding sources, also look for establishes institution to minimize risks.