MINISTRY OF EDUCATION AND HUMAN RESOURCES, TERTIARY EDUCATION AND SCIENTIFIC RESEARCH MAURITIUS EXAMINATIONS SYNDICATE NATIONAL ASSESSMENT AT FORM III NAME SCHOOL NAME CLASS/SECTION ENTREPRENEURSHIP EDUCATION October 2016 1 hour 30 mins Students answer on the Question Paper. READ THE FOLLOWING INSTRUCTIONS CAREFULLY FIRST Write your name, the name of your school and your class/section in the spaces provided above. Write in dark blue or black ink. Do not use correction fluid. There are 5 questions in this paper. Check that this document consists of 12 printed pages. Any discrepancy in the document must be immediately notified to the responsible officer in your school. Answer all questions on the question paper itself. The number of marks is given in brackets [ ] for each question or part question. The total of the marks for this paper is 100.
Read the following case carefully. Then answer the questions which follow. Prêt à Papier Enterprise Cedric Rose is the founder of Prêt à Papier Enterprise, a small enterprise producing paper bags. He became an entrepreneur at just 21, when both of his parents lost their jobs and he had to meet his basic needs all by himself. At that time, Government banned plastic bags to reduce environmental damage. Cedric was keen to expand his small enterprise and increase production. He thought it was a business opportunity to produce paper bags to replace plastic bags. There was a huge market for this product but he decided that he would first target restaurants, retail shops, supermarkets and medical centres. Cedric set himself to start his entrepreneurial journey by contracting a loan of Rs17,000 from two friends, Sam and Agnia. When Prêt à Papier Enterprise was newly set up, it employed 5 workers and produced 20,000 paper bags each week. After six years of being in active business, Cedric Rose decided to convert his sole trading business into a company. When the enterprise expanded, it employed 10 workers and produced 200 000 units each week. Cedric was overjoyed when Mr Billy, his bank manager, told him that his business plan was interesting and therefore a loan of Rs 500 000 had been approved. Cedric was recently nominated Best Young Leader Entrepreneur. In his interview, he said that he was planning to turn his enterprise into the largest enterprise to supply paper bags all over the country and contribute to projects that care for the environment. Cedric believes that he has been successful because he has persevered and developed self discipline. He wants to innovate the products as well as make a difference through creative designs of paper bags. He is proud that his customers always come back because Prêt à Papier has always produced high quality products. However, he believes it is just the start. 2
Question 1 (1) For each item, there is only one correct answer. Circle the letter which shows the correct answer. [5 marks] (a) An entrepreneur is someone who A runs only small enterprises. B starts an enterprise by himself and is ready to take risks. C seeks to be employed by an organisation. D does not like to take risks. (b) Which of the following is a business risk borne by Cedric in his enterprise? A Increase in profits B Decrease in costs C Increase in sales D Uncertainty in profits (c) One stakeholder of Prêt à Papier Enterprise which is not mentioned in the case is A suppliers. B retail shops. C government. D bank. (d) An interview with an entrepreneur is an example of A non-verbal communication. B visual communication. C verbal communication. D internal communication. (e) Which of the following is not an entrepreneurial quality of a successful entrepreneur? A Perseverance B Self confidence C Pessimism D Self discipline 3 Please turn over this page
(2) (a) Cedric started his business as sole trader. Give two advantages of setting up a sole trading enterprise. (1)... (2)... (b) Identify two problems Cedric may face as a sole trader. (1).. (2)... (c) Give two possible reasons why Cedric refused to form a partnership. [4 marks] (1)..... (2)..... (d) Identify and explain two reasons why Cedric chose to set up a company. [6 marks] Reason 1:....... Explanation:............ Reason 2:.... Explanation:............ (e) Bouton Rouge, a franchisor, proposed Cedric to set up a franchise but he refused. (i) What is a franchise?.............. (ii) Suggest two possible reasons why Cedric refused the proposal. (1)......... (2)...... 4
Question 2 (a) The following diagram shows an effective communication process. Complete the diagram using appropriate words in the space provided. [3 marks] (2)........ (1) Cedric,... (3) Lida, customer (4) Channel used...... feedback (b) Tick ( ) the appropriate box to show whether the statement describes internal or external communication. [4 marks] Internal communication External communication 1. Cedric contacts restaurants, retail shops, supermarkets, medical centres and individual customers through email. 2. Cedric gives an interview on the radio about the benefits of using paper bags for environmental conservation. 3. A monthly meeting with employees is held to discuss work-related issues. 4. The Ministry of Environment requests a report on the sale of paper bags by Prêt à Papier Enterprise. 5 Please turn over this page
(c) Cedric may face different types of risks in his enterprise. Draw a line to match the type of risk with its correct example. [3 marks] Type of Risk Example 1 Strategic Risk Failure to abide by laws and regulations to run the business. 2 Financial Risk Poor decisions taken by the entrepreneur that might threaten the existence of the business. 3 Compliance Risk Lack of adequate finance or inability to manage finance properly. (d) Identify three leadership qualities of Cedric as the founder of Prêt à Papier Enterprise. [3 marks] (1)......... (2)......... (3)......... (e) Cedric is keen to avoid conflicts in his enterprise. (i) Explain the term conflict.......... (ii) Explain one problem that might arise in Cedric s enterprise if conflicts remain unresolved...... (iii) Identify two ways in which Cedric might resolve conflicts arising between him and his employees. (1)......... (2).......... 6
Question 3 (a) Match the terms in Column 1 with their correct definitions in Column 2. Write your answers in the table which follows. The first one has been done for you. [8 marks] Column 1: Term 1 Output A 2 Quality B 3 Input C Column 2: Definitions The act of making customers aware of a product and providing information about that product. Materials such as land, labour or capital needed to produce goods and services. Quantity of goods and services produced in a given time period in an enterprise. 4 Overprocessing D Change for the better. 5 Shitsuke E 6 Advertising F 7 Kaizen G 8 Value added H Commodities that meet customers requirements. Extra feature(s) added to a commodity that increase the satisfaction of the customers. Setting a lower price to attract customers to buy a product. Occurs when more processing is performed than necessary. 9 Promotional pricing I Self-discipline Term 1 2 3 4 5 6 7 8 9 Definition C 7 Please turn over this page
(b) Fill in each blank by using one of the words given in the list below. [5 marks] cost waste profits productivity motion inventory Muda is also known as....... Cedric decided to re-organise his workplace as much time was lost due to the unnecessary movement of people. This is known as muda of....... A muda has a........ Eliminating a muda would help Cedric to improve.... and hence increase..... (c) (i) What do you understand by labour productivity?.......... (ii) Use the following information to calculate labour productivity. Show your workings in the space provided. [4 marks] Number of paper bags (output) Number of employees (input) Labour productivity Before 20 000 5 After 200 000 10 (d) (i) What do you understand by the term small group activity (SGA)?............ (ii) Explain how small group activity (SGA) can help Cedric to improve the quality of paper bags............. 8
Question 4 (a) Explain the difference between selling and marketing........ (b) List two questions an entrepreneur should ask himself when launching a new product. (i).. (ii)...... (c) Give three reasons why Cedric should carry out a market research before starting his paper bag enterprise. [3 marks] (i).......... (ii).. (iii).. (d) Give two characteristics of the paper bag that make it a marketable product. (i).. (ii)...... 9 Please turn over this page
(e) Tick ( ) the appropriate column to describe the form of promotion used by Cedric.[3 marks] Personal selling Direct marketing Advertising 1 Cedric decides to inform customers about his paper bags through radio and newspapers. 2 Cedric meets his customers face-to-face to sell his products. 3 Cedric distributes free paper bags to new and existing customers. (f) (i) What do you understand by electronic marketing (E-marketing)?...... (ii) Identify two methods of E-marketing that Cedric might use to promote the paper bags. Method 1:...... Method 2:.. (iii) Explain two advantages of using E-marketing to promote the product offered by Cedric. [4 marks] Advantage 1:..................... Advantage 2:......................... 10
Question 5 (a) Cedric contacted a friend to prepare a business plan. The document contained the following components. Title page Summary Description of the enterprise Business idea Identify two components other than those listed above which must appear in the business plan. [4 marks] (1).... (2).... (b) Using information provided in the case study, fill in the table below. [6 marks] Information in Cedric s Business Plan At the start After 6 years 1 Name of enterprise Prêt à Papier enterprise Prêt à Papier Company 2 Type of organisation 3 Nature of business Production of paper bags Production of paper bags 4 Number of employees 5 5 Capital (Rs) Rs 600,000 6 Output (Units) 11 Please turn over this page
(c) Suggest three reasons why an enterprise should prepare a business plan. [3 marks] (i)..... (ii). (iii). (d) Give one reason why a bank might refuse to approve a loan after going through the business plan of an enterprise....... END OF QUESTION PAPER 12