©TVET Curriculum Development, Assessment and Certification Council March /April 2021

TVET CURRICULUM DEVELOPMENT, ASSESSMENT AND CERTIFICATION COUNCIL

(TVET CDACC)

Qualification Code : 041306T4BUS

Qualification : Business Management Level 6
Unit Code : BUS/OS/BM/BC/04/6
Unit of Competency : Demonstrate Entrepreneurship Skills

WRITTEN ASSESSMENT

INSTRUCTIONS TO CANDIDATE
1.You have TWO hours to attempt all the questions.
2. Marks for each question are indicated in the brackets ( ).
3. The paper consists of THREE sections; A, B and C.
4. You are required to provide your responses in this question paper.

Name of the Candidate: ……………………………………………………………………....

Registration Code of the Candidate……………………………………………………………

Date: ………………………………………………………………………………......................

Signature: ................................................................................................................

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©TVET Curriculum Development, Assessment and Certification Council March /April 2021

FOR OFFICIAL USE ONLY

SCORING GRID
Section A (10 marks)
QUESTION 1 2 3 4 5 6 7 8 9 10 Total Score

Mark(s) 1 1 1 1 1 1 1 1 1 1 10

Score

Section B (40 marks)

QUESTION Total Score

11 12 13 14 15 16 17 18

Mark(s) 6 14 6 5 4 5 5 5 40

Score

Section C (50 marks)

QUESTION Total Score

19 20 21 22 23 24 25

Mark(s) 6 6 6 6 6 10 10 50

Score

OVERALL SCORE (Section A, B and C) (100 marks)

SECTION Section A Section B Section C OVERALL SCORE

Mark(s) 10 40 50 100

Score

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©TVET Curriculum Development, Assessment and Certification Council March /April 2021

SECTION A: (10 MARKS)

Encircle the correct answer.
Each question carries one (1) mark.
1. Among the following Identify the odd one as regards business innovation strategies.

A. Proactive
B. Active
C. Business plan
D. Reactive
2. Entrepreneurs use ICT for various reasons, among the following what is not a good
reason to use ICT

A. Convenience
B. Flexibility
C. Business growth
D. Less audience
3. Small businesses have a positive effect on the local community because they
A. Reduce competition.
B. Pay taxes.
C. Limit job growth.
D. Charge interest.
4. When preparing a long, complex report, it is generally a good idea to include a background
statement about the purpose of the report in the

A. Body of the report.

B. Letter of transmittal.
C. Executive summary.
D. Writer's recommendations.
5. When a business publicly pledges to provide all of its customers with quick, courteous
service, the company is

A. Stating industry policies.

B. Developing a campaign platform.
C. Making a brand promise.
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©TVET Curriculum Development, Assessment and Certification Council March /April 2021

D. Establishing product position.

6. Which of the following is a criterion that an investment company might use to evaluate the
performance of its independent agents:
A. Inventory level
B. Customer service
C. Business plan
D. Operating policy
7. The AMR Company, a growing start-up business, plans to create a new position and hire a
person who will focus on creating new products. This person is an example of which type
of resource:
A. Temporary
B. Human
C. Analytical
D. Intangible
8. A characteristic of managerial accounting is that it focuses on
A. Capturing the business's day-to-day financial activities.
B. Reporting the business's long-term investment goals.
C. Developing the business's annual report.
D. Preparing and submitting the business's tax forms.
9. A company is expanding fast and has gone from two employees to twenty in six months.
What should the founder / owner do?

A. Decrease staff turnover

B. Change his or her interview technique
C. Hire the employees if there are too many
D. Give each employee a job role

10. What financial statement shows business assets and liabilities?

A. Income statement
B. Inventory statement
C. Balance statement

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©TVET Curriculum Development, Assessment and Certification Council March /April 2021

D. Cash flow statement

SECTION B: (40 MARKS)

Answer all the questions in this section by writing down your responses in
the spaces provided.

11. By use of an illustration, explain the Maslow’s theory of motivation. (6 Marks)

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12. Explain the business life cycle. (4 Marks)

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13. Explain three strategies adopted to ensure growth of a business. (6 Marks)

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14. Today's enterprises cannot do without ICT. What are the critical roles of ICT in business
growth and development? (5 Marks)

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15. Briefly discuss the 4P’s in marketing mix (4 Marks)

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16. Compare and contrast a partnership and sole proprietorship forms of business (5 Marks)

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17. What are the contents of partnership deed? (5 Marks)

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©TVET Curriculum Development, Assessment and Certification Council March /April 2021

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18. When an organization realizes that they need an innovation strategy, what are the five key
things they need to consider very carefully when starting to develop it? (5 Marks)

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©TVET Curriculum Development, Assessment and Certification Council March /April 2021

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SECTION C: (50 MARKS)

Read the following case study and answer the questions that follows.
Answer all the questions in this section by writing down your responses in
the spaces provided.

Part A
Case study
John and Jane are operating a jua kali business by the name JJ Traders within Kitale town. The
business is performing well despite the following challenges, staff turnover due to lack of
motivation, harassment by council askaris due to lack of business regulations requirements and
Stiff competition from other traders in the same line of business. Meanwhile John and Jane are
working on the use of online trading technology to reach as many customers as possible they also
carrying market survey on the product in Moi’s bridge because they have an idea of expanding the
business.
Required

19. Explain to John and Jane three importance of market survey (6 Marks)

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20. Discuss three causes of staff demotivation in the business (6 Marks)

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21. Explain to John and Jane the three business regulations required for one to run a business
in Kenya (6 Marks)

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22. Describe to them three ways of gaining competitive advantage over their competitors

(6 Marks)
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23. Explain to John and Jane three Advantages of being creative and innovative in the
business world

(6 Marks)
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Part B

24. Explain five Characteristic of good business opportunity (10 Marks)

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25. Discuss five causes of business failure (10 Marks)

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