Test Questions – Module 1
Name: Solutions Total Marks: 60
Time: 45 minutes
Question 1
State whether each of the following are true or false:
a. An entrepreneur should be an introvert T F
b. Computer literacy is a good skill for an entrepreneur to have T F
c. Ubuntu is about the development of the individual without regard to others T F
d. A television is an example of a need T F
e. The internet is a good source of ideas for starting a business T F
[5]
Question 2
Give one word for each of the following:
a. Paying attention to small details Meticulous
b. The needs for food, clothing and shelter Physiological
c. The amount of money that is charged by banks for borrowing Interest
d. The rise in prices over time Inflation
e. Being in charge of one’s own and other people’s lives Responsibility
[5]
Question 3
Describe the following terms:
a. Social needs
The need to feel loved and accepted in society
b. Gaps in the market
Opportunities for business that have yet to be exploited
c. Patent
Legal right of ownership to an idea
d. Piracy
Illegal copying of software / music
[8]
Question 4
Ayanda wants to open a car repair business. He feels that he is well qualified to do so, as he has been
fixing cars since we was six (he is now 30). However, he is worried that he doesn’t have the accounting
skills necessary. The area in which he is operating has no car repairers nearby and he feels that there is a
good gap in the market. He also knows some people who he will be able to employ as he knows they are
good mechanics. He eventually plans to hand over operating this business to one of his employees so
that he can open new branches in other underserviced areas. However, because it is a potentially
lucrative business, he is worried that he might face competition in the near future.
Draw up a SWOT analysis for Ayanda’s business.
[10]
Strength Weaknesses
Well qualified Weak accounting skills
Possible employees
Opportunities Threats
Expansion possibilities Competition opening up
Limited competition
Question 5
Discuss the different categories (stakeholders) that make up the business environment and indicate how
they affect businesses.
[32]
• Customers – buy the product; needs need to be satisified
• Suppliers – provide the business with products; important to build a relationship of trust; need
quality product at correct price with excellent service
• Competitors – Also supply customers with similar goods / services; competition will exist through
pricing; customer service; improvements / innovation
• Government – sets regulation; need to conform to laws; may offer incentives; need to pay tax
• Economy – determines the amount that people are willing to spend; affected by interest rates,
exchange rates , global events, inflation
• Cultural forces – need to be culturally sensitive; offensive products could mean the loss of
business
• Technological forces – improves efficiency / offers new products; need to keep abreast of
technological developments
• Natural environment – businesses need to look after the environment; policy of lowest possible
pollution levels; offering organic products; risk of upsetting customers if environmentally
insensitive.