KASNEB REVISION: PRINCIPLES OF ENTREPRENEURSHIP AND MANAGEMENT

1). Which of the following is a role played by entrepreneurs in Kenya?

A. Increase level of dependence

B. Enhance level of unemployment 

C. Reduce foreign exchange 

D. Provide government revenue

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D. Provide government revenue.

Entrepreneurs in Kenya play a crucial role in providing government revenue. Through their business activities, entrepreneurs generate income and profits, which are subject to various taxes such as income tax, value-added tax (VAT), corporate tax, and import/export duties. These taxes contribute to the government's revenue stream, enabling it to fund public services, infrastructure development, and other essential programs.

It's important to note that the other options you mentioned (A. Increase level of dependence, B. Enhance level of unemployment, and C. Reduce foreign exchange) do not typically align with the role played by entrepreneurs in Kenya. Entrepreneurs generally aim to create job opportunities, promote economic independence, and contribute to the country's foreign exchange earnings through exports and trade.

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2). Which of the following could inhibit the development of an entrepreneurial culture?

A. Low cost of production 

B. Government support 

C. Business incubation 

D. Restrictive customs

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D. Restrictive customs.

Restrictive customs can inhibit the development of an entrepreneurial culture. Customs that impose excessive regulations, bureaucratic procedures, or barriers to trade can make it difficult for entrepreneurs to start and grow their businesses. These customs may include high import/export tariffs, complex licensing requirements, lengthy approval processes, and strict regulations on business operations. Such restrictions can increase the costs of doing business, limit market access, stifle innovation, and discourage entrepreneurial activities.

On the other hand, the options A, B, and C tend to promote or support the development of an entrepreneurial culture:

A. Low cost of production: This factor can provide entrepreneurs with cost advantages and enable them to compete effectively in the market. It encourages innovation, productivity, and growth by allowing businesses to produce goods and services at a lower cost, thereby increasing their profit margins and potentially attracting more entrepreneurs.

B. Government support: When governments provide support to entrepreneurs through policies, programs, and initiatives, it can foster an entrepreneurial culture. This support may include access to funding, tax incentives, mentorship programs, training, and infrastructure development. Such assistance can reduce barriers to entry, create a conducive environment for entrepreneurial activities, and encourage individuals to pursue entrepreneurial ventures.

C. Business incubation: Business incubators are organizations that provide resources, support, and guidance to entrepreneurs and startups during their early stages. They offer services such as mentoring, networking opportunities, access to funding, office space, and shared facilities. Business incubation can help entrepreneurs overcome common challenges and increase their chances of success, thus fostering an entrepreneurial culture.

While all of these factors (A, B, and C) are generally beneficial for the development of an entrepreneurial culture, restrictive customs (D) can impede entrepreneurial activities and hinder the growth of an entrepreneurial ecosystem.

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3). Which of the following is a characteristic of drone entrepreneurs?

A. They like to buy ongoing businesses 

B. Engage in research and innovative activities 

C. Not ready to make changes in production methods 

D. Have confidence in their inborn ability and talent 

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Among the given options, B. Engage in research and innovative activities is a characteristic that can be associated with drone entrepreneurs. Drone entrepreneurs often need to stay up-to-date with technological advancements and trends in the industry. They are more likely to engage in research and innovative activities to develop new drone applications, improve existing technologies, and find unique solutions to problems. This characteristic is essential for staying competitive and adapting to the evolving drone industry.

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4). Which of the following is an advantage of venturing into business over seeking salaried employment?

A. More job satisfaction 

B. Less responsibilities 

C. Reduced decision making 

D. Certainty of earning income 

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A. More job satisfaction

Venturing into business can provide individuals with more job satisfaction compared to seeking salaried employment. As a business owner, you have the opportunity to pursue your passion, create your own work environment, and have a greater sense of control over your career. You can align your business with your personal interests and values, allowing you to derive fulfillment from your work.

While salaried employment may provide stability and a predictable income, it may not always offer the same level of job satisfaction and personal fulfillment that can come from running your own business.

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5). From the following options, select the method used to promote intrapreneurship in business organizations. 

A. Apply a rigid organizations structure 

B. Observe strict compliance in operations 

C. Apply firm budgetary rules and regulations 

D. Allow freedom when executing duties 

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The correct answer is D. Allow freedom when executing duties.

Intrapreneurship refers to the practice of encouraging entrepreneurial behavior and mindset within an organization. It involves empowering employees to take initiative, innovate, and act as internal entrepreneurs to drive positive change and create new opportunities within the company.

One of the key methods to promote intrapreneurship is by allowing freedom when executing duties. This means giving employees autonomy and independence to make decisions, take risks, and explore new ideas without excessive bureaucracy or micromanagement. By providing this freedom, employees are more likely to experiment, think creatively, and come up with innovative solutions to business challenges.

On the other hand, options A, B, and C do not promote intrapreneurship:

A. Applying a rigid organizational structure typically involves strict hierarchies and a top-down approach, which can stifle individual creativity and initiative.

B. Observing strict compliance in operations focuses on adherence to rules and regulations, which may limit employees' ability to take risks and think outside the box.

C. Applying firm budgetary rules and regulations can lead to a conservative approach where employees are constrained by financial limitations and may be hesitant to pursue innovative ideas.

Overall, promoting intrapreneurship requires fostering a culture of trust, providing autonomy, and encouraging freedom in executing duties.

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6). Which of the following statements explains the role played by social entrepreneurs?

A. Encourage firms generate super profits

B. Mobilise people to solve their problems 

C. Provide services on a short term contract 

D. Give long term services to private firms

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The correct statement that explains the role played by social entrepreneurs is:

B. Mobilise people to solve their problems.

Social entrepreneurs are individuals who identify social problems and use innovative approaches to create and implement sustainable solutions. They are driven by a mission to address social, cultural, or environmental issues and work towards creating positive social change. They mobilize people, communities, and resources to tackle these problems and make a lasting impact on society. Unlike traditional entrepreneurs who primarily focus on profit generation, social entrepreneurs prioritize the betterment of society and actively engage stakeholders to address social challenges.

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7). Which component of the business plan describes the pricing strategy of a business?

A. Production plan

B. Financial plan 

C. Marketing plan

D. Operational plan

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The component of a business plan that typically describes the pricing strategy of a business is the "Marketing plan" (Option C). The marketing plan outlines various aspects of the business's marketing efforts, including the target market, marketing objectives, positioning strategy, promotional activities, and pricing strategy.

The pricing strategy section of the marketing plan focuses on determining how the business will set prices for its products or services. It involves analyzing factors such as production costs, competitor pricing, customer demand, and perceived value. The pricing strategy chosen by a business can significantly impact its profitability, market positioning, and customer perception.