MULUNGUSHI UNIVERSITY

IN ASSOCIATION WITH

EVELYN HONE COLLEGE OF APPLIED ARTS AND COMMERCE

ACADEMIC YEAR 2021 (JUNE)

DIPLOMA INFORMATION TECHNOLOGY

COURSE TITLE: ENTERPRENEURSHIP

COURSE CODE – DIT 403

TIME: 3 HOURS TOTAL MARKS: 100
INSTRUCTIONS:
1. Do not turn over the page until you are told to do so.
2. There are two (2) Sections in this paper, that is A and B.
3. Section A is Compulsory
4. There are six (6) questions in this section, answer ANY four (4) questions
5. Credit will be given for legible writing, proper punctuation and correct use of English.
6. No cell phones and/or calculators are allowed.

WARNING: Textbooks, laptops, exercise books, phones and other devices are not allowed in the
examination room. If found a candidate will be disqualified.
DO NOT TURN THIS PAGE UNTIL YOU ARE TOLD TO DO
Section A –COMPULSORY

Question 1

Liberalization of the economy can be defined as a shift of the government policy

from the direct control of the price mechanism in the economy from government
to the forces of demand and supply in the private environment to determine the
prices. Since the 1991 change of government, Zambia has liberalized her
economy. In detail, discuss any five (5) benefits that entrepreneurship has enjoyed
as a result of liberalization of the economy. (20 Marks)

[TOTAL: 20 MARKS]

Section B. There are six (6) questions in this section, answer ANY FOUR (4)

Question 2

(a) (i) Explain five (5) ways in which an entrepreneur can enhance personal
Creativity and Innovativeness in running a business (5 Marks)
(ii) Outline five (5) barriers to Creativity and Innovativeness (5 Marks)
(b) Explain at least five (5) major strides that the government has made in the
recent past to encourage entrepreneurship in Zambia. (10 Marks)

[TOTAL: 20 MARKS]

Question 3

(a) Zambia is endowed with a lot of natural resources and with an average
population, which are good ingredients to economic development.
Explain how the Zambian entrepreneur can use and accelerate these
ingredients to enhance and boast the economic performance of the
country and their individual status and business. (12 Marks)
(b) Define Marketing and state its importance to the entrepreneur. Outline any
five (5) marketing challenges faced by the entrepreneur in the early stages
of starting a business. (8 marks)

[TOTAL: 20 MARKS]

Question 4
 (a) (i) Explain the functions of at least four (4) financial records used in the
financial management system of an enterprise (4 marks)

(ii) Outline at least six (6) traditional sources of financial resources (3 marks)

(iii) Explain the risks of not having good financial control systems in an
enterprise (3 Marks)
(b) (i) Explain at least two (2) instances when it is very necessary to prepare
the Business plan. (4 Marks)
(ii) Outline any four (4) disadvantages of short coming of the business plan.
(6 Marks)

[TOTAL: 20 MARKS]

Question 5

(a) Discuss the role that Micro Small and Medium Enterprises (MSMEs’), play in
the growth and development of the Zambian economy. (6 Marks)
(b) Outline at least four (4) main reasons why an entrepreneur needs to
develop an Exit Strategy Plan for their enterprise. (4 Marks)
(c) Describe the functions, features and characteristics of a Non-
Governmental Organization (NGO) and the Sole trader forms of
businesses. (10 Marks)

[TOTAL: 20 MARKS]

Question 6

(a) Discuss how the following will aid the entrepreneur to operate their
businesses successfully:
(i) E-Commerce (2 Marks)
(ii) Networking (2 Marks)
(iii) Business Ethics (2 Marks)
(iv) Productivity measurement (2 Marks)
(v) Enterprise Audit (2 Marks)

(b) Discuss how the introduction of empowerment for women and youth
programs can increase /enhance entrepreneurship development in
Zambia. (10 Marks)
 [TOTAL: 20 MARKS]

Question 7
(a) Define a franchise with an example. (3 Marks)
(b) Explain four (4) advantages and disadvantages of a franchise. (6 Marks)
(c) Discuss how an entrepreneur can be affected by business failure negatively
and positively. (6 Marks)
(d) Outline five (5) factors that would need to be considered to review business
failure. (5 Marks)

[TOTAL: 20 MARKS]