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Exam Paper for Entrepreneurship in BBA (With Answers)
PAPER # 1
**BBA Entrepreneurship Exam**
**Instructions:**
- This exam consists of two sections: Multiple Choice Questions (MCQs) and
Short Answer Questions (SAQs)
...
Select the most appropriate
answer by circling the corresponding letter (A, B, C, or D)
...
Provide detailed answers in the
space provided
...

- Write your name and student ID on the answer sheet
...

**Section A: Multiple Choice Questions (20 marks)**
**1
...
What is the primary goal of a business plan?**
a) Secure funding
b) Attract customers
c) Achieve operational efficiency
d) Monitor competitors
**Answer: a) Secure funding**
**3
...
What does SWOT analysis stand for?**
a) Strengths, Weaknesses, Opportunities, Threats
b) Strategy, Weaknesses, Objectives, Targets
c) Success, Weaknesses, Opportunities, Timeframe
d) Strengths, Weaknesses, Opportunities, Trends
**Answer: a) Strengths, Weaknesses, Opportunities, Threats**

3

**5
...
What is a mission statement in a business plan?**
a) A statement of financial goals
b) A declaration of the company's purpose and values
c) A list of the company's products
d) An executive summary
**Answer: b) A declaration of the company's purpose and values**
**7
...
What is the first step in the entrepreneurial process?**
a) Identifying opportunities
b) Creating a business plan
c) Securing funding
d) Launching the business
**Answer: a) Identifying opportunities**
**9
...
What is a competitive advantage?**
a) The ability to sell products at a loss
b) A unique feature or advantage that sets a business apart from its
competitors
c) The lowest price in the market
d) Having the largest workforce
**Answer: b) A unique feature or advantage that sets a business apart from
its competitors**

5

**Section B: Short Answer Questions (80 marks)**
**11
...
(10 marks)**
**Answer:**
Entrepreneurship is the process of identifying opportunities, taking risks,
and creating and managing a business to achieve a profit or other goals
...
Entrepreneurs are
instrumental in developing new products and services, improving efficiency,
and contributing to overall economic development
...
Describe the key components of a well-structured business plan
...
**Executive Summary:** A concise overview of the business, its mission,
and its goals
...
**Business Description:** Detailed information about the business,
including its history, legal structure, location, and market niche
...
**Market Analysis:** An examination of the target market, competition,
and industry trends
...
**Marketing and Sales Strategy:** How the business plans to market and
sell its products or services
...
**Management and Organization:** Information about the management
team and their roles
...
**Product or Service Line:** A description of the products or services
offered, including their unique features
...
**Funding Request:** If applicable, how much funding is needed and how
it will be used
...
**Financial Projections:** Financial statements, including income
statements, balance sheets, and cash flow projections
...
**Appendix:** Supporting documents such as resumes, market research,
and legal documents
...
Explain the concept of "bootstrapping" in entrepreneurship
...

Entrepreneurs who bootstrap their businesses rely on their own savings,
revenue generated by the business, and creative cost-saving measures to
fund and sustain their operations
...
Bootstrapping can involve strategies such as
operating from a home office, using open-source software, and pursuing
organic growth
...

**14
...
(15 marks)**

7

**Answer:**
Advantages of a sole proprietorship:
- **Simplicity:** Easy and inexpensive to set up and operate
...

- **Direct Taxation:** Income is typically taxed at the owner's personal tax
rate
...

Disadvantages of a sole proprietorship:
- **Unlimited Liability:** The owner is personally liable for business debts
and obligations
...

- **Limited Expertise:** The owner may lack expertise in all areas of
business management
...

**15
...
(10 marks)**
**Answer:**
In entrepreneurship, a pivot refers to a fundamental change in a business's
strategy or direction in response to changing market conditions or customer
feedback
...
An example of a pivot is when a software
startup initially develops a mobile app for fitness tracking but later realizes
that the app's user base is not growing as expected
...
Define entrepreneurship and explain its importance in the modern
economy
...
Entrepreneurship is the process of creating, launching and managing a
new business venture that offers a product or service that satisfies a market
need
...
Identify and describe the four types of entrepreneurship according to
the opportunity discovery framework
...
(20
marks)
A2
...
The
opportunity may be latent or existing, but it is not widely recognized or

9

exploited by others
...

- Necessity-driven entrepreneurship: This type of entrepreneurship involves
starting a business out of necessity, such as lack of employment, income or
resources
...
An
example of this type of entrepreneurship is microfinance, which provides
small loans to low-income entrepreneurs who lack access to formal financial
services
...
The entrepreneur may not
have a novel or innovative idea, but they have the ability to adapt and
execute it in a different environment
...

- Social entrepreneurship: This type of entrepreneurship involves creating a
social value proposition that addresses a social problem or need through a
sustainable business model
...
An example of this type of
entrepreneurship is TOMS Shoes, which donates a pair of shoes to a child in
need for every pair sold
...
Analyze the strengths and weaknesses of the lean startup method for
developing and testing new business ideas
...
The lean startup method is a process for developing and testing new
business ideas based on the principles of build-measure-learn feedback
loops, minimum viable products (MVPs) and validated learning
...

- It enables faster learning and iteration by creating MVPs that test the most
critical features and functions of the product or service with minimal effort
and cost
...

Weaknesses:
- It may not be suitable for complex or long-term projects that require more
planning, research and development upfront
...

- It may not account for external factors or uncertainties that may affect the
market demand, customer behavior or competitive landscape
...
Discuss the role of creativity in entrepreneurship and suggest three
techniques for enhancing creativity among entrepreneurs
...
Creativity is the ability to generate novel and useful ideas that can lead
to new or improved products, services, processes or solutions
...

- SCAMPER: This technique involves applying seven questions (substitute,
combine, adapt, modify, put to another use, eliminate, reverse) to an
existing product, service, process or solution in order to modify or improve it
in some way
...

Q5
...
(10 marks)
A5
...
The
advantages and disadvantages of bootstrapping are:

12

Advantages:
- It preserves the ownership and control of the entrepreneur over the
venture without diluting their equity or compromising their vision
- It demonstrates the commitment and confidence of the entrepreneur in
the venture and attracts more credibility and trust from customers,
suppliers and investors
- It encourages the entrepreneur to be more resourceful, efficient and
disciplined in managing their finances and operations
Disadvantages:
- It limits the amount and availability of capital that the entrepreneur can
access and invest in the venture, which may constrain their growth and
scalability
- It exposes the entrepreneur to more personal risk and liability in case of
failure or debt
- It isolates the entrepreneur from external feedback, advice and support
that may come from other sources of financing such as angel investors or
venture capitalists

13

PAPER # 3
Section A (Very short answer questions)
1
...

2
...
Differentiate between pure and induced entrepreneur
...
What is the cooperative organization?
5
...
A sole proprietorship is a business owned and operated by one person
...
Plant layout is the physical arrangement of machinery, equipment, and other
resources in a factory or other manufacturing facility
...
A pure entrepreneur is someone who starts a business out of their own personal
initiative and drive
...

4
...

5
...

It is also a good method to use when there is a large number of variables to
consider
...
What are the sources of new project ideas?
7
...

8
...

Answers:
6
...
Entrepreneurs are individuals who start and manage their own businesses
...

Entrepreneurs typically have a high degree of autonomy and control over their
businesses
...
Professional
managers, on the other hand, have less autonomy and control over their businesses,
but they also bear less risk
...
Merits of partnership:
o

Easy to form

o

Relatively low cost to start

o

Partners can share skills and resources

o

Partners can provide each other with support

Demerits of partnership: * Unlimited liability for partners * Potential for conflict between
partners * Difficulty in making decisions * Difficulty in selling one's share of the business
Section C (Detailed answer questions)
9
...
Also state the merits and limitation of Joint Stock
...

10
...

11
...
What are
the solution of assignment problem
...
Entrepreneurs are made not born
...

13
...
A joint stock company is a type of business organization in which the ownership
is divided into shares
...

Merits of joint stock company: * Limited liability for shareholders * Easy to raise capital *
Perpetual succession * Transferability of shares
Limitations of joint stock company: * Complex and expensive to set up * Subject to
government regulations * Agency problems
10
...
Transportation problem: A transportation problem is a type of linear programming
problem in which the goal is to minimize the cost of transporting goods from a set
of origins to a set of destinations
...

Solution of assignment problem: * Hungarian method * Vogel's method

16

12
...
There is
evidence to support both sides of the argument
...
They have a strong desire to start their own businesses and they are able
to think outside the box
...
They have learned the skills and knowledge they need to
be successful entrepreneurs through education and experience
...
Which of the following is NOT a characteristic of entrepreneurs?
o

A
...
Visionaries

o

C
...
Risk-averse

Answer: D
2
...
Generating a business idea

o

B
...
Securing funding

o

D
...
Which of the following is a type of business ownership structure?
o

A
...
Partnership

o

C
...
All of the above

Answer: D
4
...
Venture capital

o

B
...
Personal savings

o

D
...
Which of the following is a marketing strategy?

18

o

A
...
Pricing

o

C
...
All of the above

Answer: D
Section B: Short Answer (5 marks each)
6
...

 Corporate entrepreneurship: This involves developing and launching new
products, services, or business models within an existing large corporation
...

7
...
Executive summary: This is a one-page overview of the entire business plan,
including the business idea, target market, competitive landscape, and financial
projections
...
Products or services: This section describes the products or services that the
business will offer, as well as their features, benefits, and pricing
...
Market analysis: This section identifies the target market for the business and
analyzes the competitive landscape
...
Marketing and sales plan: This section describes how the business will market
and sell its products or services
...
Financial projections: This section includes the business's projected income
statement, balance sheet, and cash flow statement
...
What are the advantages and disadvantages of the three main types of business
ownership structures?
Answer:
Sole proprietorship:

19



Advantages: Easy to start and maintain, full control over the business



Disadvantages: Unlimited liability, limited access to financing

Partnership:
 Advantages: Shared ownership and resources, access to complementary skills
and experience


Disadvantages: Unlimited liability for all partners, potential for conflict between
partners

Corporation:
 Advantages: Limited liability for owners, access to capital markets, perpetual
existence


Disadvantages: Complex and expensive to start and maintain, subject to
government regulation

Section C: Essay (10 marks each)
9
...

Answer: Entrepreneurship is important to the economy because it drives innovation and
economic growth
...
Entrepreneurs also take risks
and invest in new ideas, which can lead to breakthroughs and new industries
...




Economic growth: Entrepreneurs drive economic growth by developing new
products and services, which increases demand for goods and services and
boosts overall economic activity
...
This innovation leads to new products, services, and business
models, which can improve the quality of life and make the economy more







20

efficient
...
This
competition leads to lower prices and better quality products and services for
consumers
...
These businesses can
make a positive impact on society and the environment
...
What are the challenges that entrepreneurs face?
Answer: Entrepreneurs face a number of challenges, including:
 Securing funding: One of the biggest challenges for entrepreneurs is securing




funding to start and grow their businesses
...
This can be a challenge, especially for new businesses
...
All questions
carry equal marks
...
What is entrepreneurship?
2
...

3
...

4
...
List the key steps involved in starting a new business
...
What are the different sources of entrepreneurial finance? Discuss the
advantages and disadvantages of each source
...
Explain the concept of business incubation and its role in supporting
entrepreneurship
...
What are the key challenges faced by entrepreneurs? Discuss how
entrepreneurs can overcome these challenges
...
Write a short essay on the topic "The importance of innovation in
entrepreneurship
...
Entrepreneurship is the process of designing, launching, and running a new
business
...

2
...
They are
typically risk-takers and innovators who are passionate about their businesses
...
They are typically responsible for planning,
organizing, and controlling the activities of a business
...
Entrepreneurship is important for economic development because it creates new
jobs, drives innovation, and contributes to economic growth
...

4
...


o

Partnership: A partnership is a business that is owned and operated by
two or more people
...


o

Corporation: A corporation is a legal entity that is separate from its
owners
...


5
...
Identify a business opportunity
...
Conduct market research
...
Develop a business plan
...
Choose a business ownership structure
...
Register your business with the government
...
Obtain the necessary licenses and permits
...
Secure funding
...
Hire and train staff
...
Market and sell your product or service
...
The different sources of entrepreneurial finance include:
o

Personal savings: This is the most common source of financing for new
businesses
...


o

Bank loans: Bank loans can be a good source of financing for new
businesses, but they can be difficult to obtain
...


o

Angel investors: Angel investors are individuals who provide investment
capital to early-stage businesses
...
Business incubation is a process that provides support to new businesses during
their early stages of development
...
Business incubation
can play a vital role in supporting entrepreneurship by providing new businesses
with the resources and support they need to succeed
...
Some of the key challenges faced by entrepreneurs include:

23

o

Access to finance: Entrepreneurs often have difficulty obtaining financing
for their businesses
...


o

Competition: Entrepreneurs often face intense competition from
established businesses
...


9
...
Innovation can give entrepreneurs a competitive
advantage and help them to succeed in the marketplace
...




Provide specific examples to support your answers
...




Proofread your answers carefully before submitting

**Section: Multiple Choice Questions (1 mark each)**
1
...
Which of the following is not a common source of entrepreneurial
opportunities?
a) Market demand
b) Personal hobbies

24

c) Government regulations
d) Technological advancements
**Answer: c) Government regulations**
3
...
What is a SWOT analysis used for in entrepreneurship?
a) Identifying competitors
b) Evaluating internal strengths and weaknesses
c) Calculating ROI
d) Creating a marketing plan
**Answer: b) Evaluating internal strengths and weaknesses**
5
...
Define the term "business model canvas" and briefly explain its
components
...
It consists of nine components: Customer
Segments, Value Propositions, Channels, Customer Relationships, Revenue
Streams, Key Resources, Key Activities, Key Partnerships, and Cost Structure
...
**
7
...
Key methods
for market research include surveys, interviews, focus groups, observation,
and data analysis
...
**
**Section: Essay Questions (10 marks each)**

26

8
...
Discuss its
advantages and disadvantages for entrepreneurs
...
**
**Advantages:**
- Faster product development and market entry
...

- Better adaptation to changing market conditions
...

**Disadvantages:**
- Risk of prematurely scaling a product
...

- Can be challenging to secure funding with a minimal product
...

9
...
Strategies to support and promote women entrepreneurship
include creating mentorship programs, providing targeted financial support,

27

addressing gender bias in the workplace, and fostering a culture of diversity
and inclusion
...
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4
...
BBA Entrepreneurship Assessment
6
...
BBA Study Material
8
...
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...
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...
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