INTERSCHOOL EXAM OF ----ENTREPRENEURSHIP --------------
LEVEL: SENIOR 6
TERM: 1st
ACADEMIC YEAR: 2014
TIME: 3HOURS
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INSTRUCTIONS:
Answer all the questions of this exam/100 marks
1. What is entrepreneurship? /2 Marks
2. State the main factors that influence the existence of a business. /2 Marks
3. Enumerate any five qualities of successful entrepreneurs. /5 Marks
4. Differentiate a manager from an entrepreneur / 10 Marks
5. What is importance of studying Entrepreneurship? / 5 Marks
6. Explain the functions of Entrepreneur /7 Marks
7. Explain benefits and challenges of being entrepreneur. /10 Marks
8. Define the concept: Business / 2
9. Enumerate the advantages of self employment. /8 Marks
10. In our real life, we can prefer doing business rather than being employed. Write down
any five12. Suppose in Rwanda no body accept to teach, to practice agriculture and to be
involved in health care services. Discuss about the effects of the refusal of doing the
above mentioned works /15 Marks
11. Distinguish between a limited company and a partnership? /4 Marks
12. State the importance of cooperative in the society. /10 Marks
13. Explain the factors that can lead a business to success. /10marks
14. The government of Rwanda has been encouraging persons to become entrepreneur.
a. What do you understand by the term Entrepreneur
b. Suggest two reasons why entrepreneurship is being encouraged in Rwanda.
c. Identify two problems an entrepreneur may encounter.
d. Outline how an Entrepreneur may overcome any one of the problems, discussed in (c)
above. /10 Marks
MARKING SCHEME - ENTREPRENEURSHIP
1. Entrepreneurship: Entrepreneurship is the capacity and skills required to identify
business opportunity and generate business idea, mobilizing resources, organize the
production of goods and services and market the products.
2. the main factors that influence the existence of a business.
Competitors and legislation.
3. Qualities of successful entrepreneurs:
competitiveness,
motivation,
hard working,
risk taking,
independence,
decision making,
creativity,
determination,
Perseverance etc.
4. Difference between manager and Entrepreneur
MANAGER ENTREPRENEUR
- Do not start a business - start the business
- Employee/servant of the business - Owner of the business
- Get paid salary - Get profit from the business
- Does not mobilize factors of - Mobilize the factors of production
production - Introduce new Ideas and
- Implements plan and Ideals of the innovation
Entrepreneur - Can also become a manager of the
- Cannot become the entrepreneur of business
the business
5. The importance of studying Entrepreneurship is :
- Entrepreneurship helps students to acquire skills to identify skills and areas of
specialization
- It imports appropriate training to people in the society
- I trainees become self employed by applying the acquired skills professionally by starting
own business.
- It introduces an individual to marketing skills, communication skills, negotiation and
advertising.
- It is Important for preparing students who choose business as a career thus contributing to
the development of the country because entrepreneur produce goods and services.
6. The functions of Entrepreneur are:
- Innovation: The entrepreneur is the innovator of the business.
- Planning: The Entrepreneur identifies a suitable business idea, selects the product line,
and determines the form of business organization.
- Organization and co-ordination: Entrepreneur co-ordinates and supervises the other
factors of production particularly land, labor and capital.
- Decision making: The Entrepreneur is responsible for making the strategies (long-term)
Decision for the business.
- Management: Entrepreneur is for controlling and organizing the work that a company or
organization does.
- Risk bearing: Entrepreneur takes all the risks arising out of starting and operating the
business.
- Distribution of rewards : Each factors of production is rewarded for engaging in
production
7. Benefits and challenges of being entrepreneur
a) Benefits of being entrepreneur
- social recognition
- More income from profit
- Improved standard of living
- Flexibility in decision making
- self confidence
- Self employment
b) Challenges of being Entrepreneur
- Long and irregular hours of work
- Unpredictable income
- Hard and demanding work
- Less rest and less leisure
- Potential loss of resources invested in business
- Risk of loss
- More demand by society
8. BUSINESS: refers to production or selling of goods and services for a profit. it may
refer to the transaction or activities that involve taking a risk.
9. Enumerate the advantages of self-employment:
o There is an improvement and security of person’s income
o It improve one’s standard of living due to increased income
o Create an independence means you become your owner boss
o It develops one’s self confidence and self esteem
o Brings job satisfaction- creating your owner employment
o He enjoy benefits from his/her business himself
o Provide job opportunities in society for many peoples
10. If nobody accept to teach
-There can be ignorance
-Lack of experienced workers in different domains.
-Lower productivity of labor
-Delayed development
-High illiterate rate.
.If nobody accept to practice agriculture
-Lack of raw materials for agro-processing and beverage industries.
-Reduction of rural dwellers’ income
-Food shortages
- People can die with hunger
-Poverty especially in rural areas.
-Presence of many diseases.
If nobody is involved in health care services
- -People can die with illnesses which can reduce human resources needed by
organizations.
- -No diseases preventive services can be available.
- -Lack of workers who are physically fit.
- - Etc
11. Distinguish between a limited company and a partnership?
A limited liability company is formed when two or more people come together and
subscribe to its share capital and become its owners whereas a partnership is a legal form
of business which exists when two or more persons (maximum 20) pool their resources
and abilities in order to carry out business for profit.
12. Importance of cooperative in the society
- It is easy to raise a relatively large sum of capital to start a big business
- Members of cooperative enjoy limited liability facilities.
- They increase cooperation among people.
- They provide education to members and to public.
- They help members to get credit facilities et c.
13. Explain the factors that can lead a business to success. /15marks
Clear objective: the goals must be clear
Personal attributes or qualities of the business owner and the employees: the owner, the
managers and other workers must have skills if the business is to success.
Proper planning: the owner must operate it effectively following a clear definite plan and
putting in efforts to make sure that it is implemented
Location of the business: it must be located in strategic place with favorable market access
to good transport etc
Favorable government policies: it help in promotion of the business
Availability of other infrastructure: example like; insurance; roads, banking; service it has
a high chances of succeeding
Internal organization: it must be well organized internally
Availability of market: is very important issue in any business where the goods produce will
be sales
Skilled labors: workers have skills and self confidence in that they are doing
Competition: must be moderate and increased of competition
Good condition of workers: salary and all necessary equipment at work.
Security: to protect the assets
Proper discipline: discipline from good enterprise education in its rules and regulations
Pleasant work place: means the more enjoyable environment.
14. Entrepreneur is a person who has the ability to see and evaluate business opportunities from
environment gather the necessary resources and use them to start the identified business and
successfully manage it.
a. The Entrepreneurship is encouraged in Rwanda because it reduces the level of
unemployment, reduce poverty, increase the government revenues promote status in
life of people etc.
b. Problems encountered by Entrepreneur.
- Poor Entrepreneur skills
- Lack of technological skills
- Lack of business ethics
- Poor infrastructure
- Lack of capital
- Poor management skills
- Lack of motivation
- Lack of access to finance
- Political instability, etc.
c. The measures to overcome the problem discussed in (C).
- To provide technical Education and support to those who want to make business
Improvement of infrastructure should be given priority
