Entrepreneurship and Business Management N4
Question Paper and Answers
INSTRUCTIONS AND INFORMATION
- Answer all the questions.
- Read all the questions carefully.
- Number the answers according to the numbering system used in this question paper.
- Use only black or blue ink.
- Write neatly and legibly.
SECTION A
QUESTION 1
Indicate whether the following statements are TRUE or FALSE by writing only 'True' or 'False' next to the question number (1.1–1.10) in the ANSWER BOOK.
1.1
The ‘S’ in the SWOT analysis stands for strengths.
(1)
SHOW ANSWER
True
1.2
The management plan of a business will include information about its remuneration policy.
(1)
SHOW ANSWER
True
1.3
Brainstorming is a very popular method of coming up with ideas.
(1)
SHOW ANSWER
True
1.4
People who owe you money are called creditors.
(1)
SHOW ANSWER
False
1.5
The marketing plan must analyse the marketing environment.
(1)
SHOW ANSWER
True
1.6
You will place necessities and staple goods at the rear of the retail store.
(1)
SHOW ANSWER
True
1.7
Examples of industrial products are raw materials and machinery.
(1)
SHOW ANSWER
True
1.8
Innovation is the conversion of a new idea into a new product or service.
(1)
SHOW ANSWER
True
1.9
Demographic segmentation establishes the population or number of customers.
(1)
SHOW ANSWER
False
1.10
Natural resources are classified as an asset of the business.
(1)
SHOW ANSWER
True
QUESTION 2
Give ONE word for each of the following description. Write only the answer next to the question number (2.1−2.10) on the attached ANSWER BOOK.
2.1
They need to research their business idea and when in business continue to get information.
(1)
SHOW ANSWER
Entrepreneur
2.2
Be careful about discussing the details of your business plan with close people.
(1)
SHOW ANSWER
Secrecy
2.3
Refers to our national heritage, such as water, air, and animal and plant life.
(1)
SHOW ANSWER
Natural environment
2.4
Appears when a needed product or service is not available.
(1)
SHOW ANSWER
Gap in the market/shortage
2.5
Ability to do something new, original and different.
(1)
SHOW ANSWER
Creativity
2.6
Point at which the income generated from sales equals to total costs.
(1)
SHOW ANSWER
Breakeven
2.7
Needs to be developed after the target market has been identified.
(1)
SHOW ANSWER
Marketing mix
2.8
A wrapping that surrounds a product.
(1)
SHOW ANSWER
Packaging
2.9
Number of customers in the area you want to serve.
(1)
SHOW ANSWER
Geographic segmentation
2.10
A word or symbol that is displayed on a product.
(1)
SHOW ANSWER
Trademark
QUESTION 3
3.1
Explain FIVE different business environment categories and give examples.
(5 × 2) (10)
SHOW ANSWER
Answer
- Customers: Customers are a day-to-day environmental factor of a business because the business must understand and serve its target market.
- Suppliers: Suppliers provide the business with the products or inputs it needs, for example manufacturers.
- Competitors: Competitors serve the needs of the same customers the business is targeting, for example Checkers.
- Economy: The economy affects every business, whether large or small, directly or indirectly. An example is the effect of Covid-19 on business activity.
- Cultural force: Cultural richness can make it difficult, but also challenging, for a business to do business because businesses operate within different cultural settings.
- Technological force: Technology is a technique that helps a business manufacture or sell a product or provide a service, for example telecommunications.
- Government politics: Political parties that hold power in the country can influence business indirectly through the political environment.
- Natural environment: The natural environment refers to the natural heritage, for example water and air.
For the question requirement, any five appropriate categories with relevant examples earn the required response.
3.2
Give THREE personal resources of a successful entrepreneur.
(3)
SHOW ANSWER
- Knowledge and skill
- Contact
- Funds
3.3
Name THREE basic or primary methods that entrepreneurs can use to gather market information.
(3 × 2) (6)
SHOW ANSWER
- Survey
- Observation
- Experiments
- Test marketing
These are the basic or primary methods listed for gathering market information. The question asks for three.
3.4
Where can you find help, when drawing up a business plan?
(4 × 2) (8)
SHOW ANSWER
- Educational institutions
- Service organisations
- Commercial institutions, e.g., banks
- Government institutions
3.5
Name THREE types of layout for a manufacturing or service business.
(3)
SHOW ANSWER
- Product
- Process
- Fixed position
TOTAL SECTION A: 50