Cape Entrepreneurship Unit 1
Section A
Read carefully then circle the correct answer
(D) Innovation
1. Which of the following BEST describes
an entrepreneur?
5. Entrepreneurship involves the
(A) Has a strong desire to achieve and management of
is innovative
(B) Recognizes opportunities but (A) processes, people and growth
sacrifices them (B) global economies, people and
(C) Has the urge to keep a product in growth
the existing market (C) global economies, processes and
(D) Has a strong desire for money but growth
does not go after it (D) people, processes and regional
Economies
2. Which of the following statements is
NOT a myth associated with
entrepreneurs? 6. Which of the following is a driving force
behind contemporary entrepreneurship?
(A) Entrepreneurs are bold.
(A) Globalization
(B) All entrepreneurs are rich.
(B) Demographic stability
(C) Entrepreneurs generate ideas.
(C) Stagnation in innovation
(D) Entrepreneurs are born, not made.
(D) Decreasing consumption
3. “Creative destruction is the process
whereby products, processes, ideas and 7. Which of the following does NOT
businesses are replaced with better encourage entrepreneurship?
ones”
(A) Information revolution
Which of the following theorists made (B) Changing demographics
this proposition? (C) Technological advances
(A) Peter Drucker (D) Government bureaucracy
(B) Jean Baptiste Say
8. Which of the following is a KEY
(C) Richard Cantillon characteristic for a successful
(D) Joseph Schumpeter entrepreneur?
4. Which of the following is central to the (A) Ability to work hard
concept of entrepreneurship? (B) Technical skills
(C) Access to personal money
(A) Financing
(D) Eye for an opportunity
(B) Stabilization
(C) Manufacturing
9. An individual who is in the process of
starting a new venture for the first time is 14. Gender can constitute a barrier to the
described as a development of entrepreneurship when
(A) novice entrepreneur (A) venture financing availability is
(B) serial entrepreneur based on one’s gender
(C) nascent entrepreneur (B) venture capitalists invest in
(D) habitual entrepreneur multiple ventures
(C) both men and women are free to
10. Which of the following factors access venture capital
distinguishes an entrepreneur from a (D) both men and women are given
traditional small business owner?
the same level of entrepreneurial
(A) Wealth training
(B) Ability to innovate 15. Jenny started her business one year ago.
(C) Number of start-ups The business failed. As a typical
(D) Employment status entrepreneur, what will Jenny MOST
likely do?
Items 11 - 12 refer to the following types of (A) Go to work for a major
entrepreneurs. corporation
(B) Try to learn from her failed
(A) Serial entrepreneur venture
(B) Novice entrepreneur (C) Give up becoming a successful
entrepreneur
(C) Habitual entrepreneur (D) Spend the rest of her life
(D) Portfolio entrepreneur wondering what happened to her
business
In answering items 11–12, match each item 16. Which of the following is NOT a
with one of the options above. Each option method of generating a venture idea?
may be used once, more than once or not at
all.
(A) Training
11. An individual who has NO prior (B) Checklist
experience in starting up a business, (C) Notebook
inheriting a business or purchasing a
business (D) Brainstorming
12. An entrepreneur who creates, starts and 17. Which of the following organizations
sells ventures will MOST likely give financial assistance
and technical support to implement a
13. Which of the following BEST describes business idea?
an entrepreneur when starting or
expanding a business? (A) Central banks
(B) Angel investors
(A) Opportunist
(C) Commercial banks
(B) Angel funder
(D) Business development agencies
(C) Venture capitalist
and programmes
(D) Calculated risk taker
18. An entrepreneur creates new business process ESSENTIALLY involves
in the face of risk and uncertainty for the
purpose of achieving profit and growth by (A) idea generation
identifying (B) resource mobilization
(A) threats (C) opportunity identification
(B) people (D) business concept utilization
(C) products
24. Planning for unexpected growth in an
(D) opportunities entrepreneurial venture involves
19. Every business venture starts with (A) determining future goals and
objectives
(A) capital (B) assigning tasks and allocating
(B) an idea resources
(C) a market (C) motivating persons towards
achieving goals
(D) an opportunity (D) ensuring that performance is in
accordance with goals
20. What is the LAST step to be taken by an
entrepreneur in selecting a business 25. Demographic segmentation strategies
opportunity? separate potential customers into
(A) Preparing a business plan (A) age, gender and income
(B) Screening of business opportunity (B) region, city and population
(C) Evaluating self and the (C) loyalty, product use and culture
community (D) lifestyle, social class and
(D) Identifying the needs and wants education
of customers
26. Which of the following factors should an
21. Which of the following strategies can be entrepreneur consider MOST when
described as both harvesting and exit? hiring employees?
(A) Licensing (A) Skills and education
(B) Shut down (B) Wages, motivation and benefits
(C) Management buyout (C) Skills, experience and education
(D) Family succession (D) Performance appraisal, skills and
Education
22. Which of the following is a 27. Which of the following is NOT a source
characteristic of a business idea? of a business concept?
(A) Always abstract (A) New markets
(B) May look bad at first (B) New products
(C) Always structured and systematic (C) Existing markets
(D) Requires more than one person to (D) New organizational structures
Generate
23. The first step in the entrepreneurial
28. The ability to develop new ideas and to (C) remember what has worked in the
discover new ways of looking at problems past.
and opportunities is called:
(D) pay attention to limiting factors
(A) entrepreneurship .
(B) innovation
(C) creativity 32. A(n)________________ is a
(D) creative thinking preconceived idea of what the world is, what
it should be like, and how it should operate.
29. Creativity often involves creating
something from nothing. However, it is (A) innovation
more likely to result in: (B) entrepreneur
(C) paradigm
(A) elaborating on the present.
(B) putting old things together in new (D) profitable vision
ways.
(C) taking something away to create 33. Hiring a diverse workforce:
something simpler or better.
(D) All of the above. (A) helps in enhancing organizational
creativity.
30. The process by which a small group of (B) allows for different ideas and
people interact to produce a large varying methods of problem solving.
quantity of imaginative ideas is called (C) brings in people from different
backgrounds, with different cultural
(A) idealization experiences, hobbies, and interests.
(B) brainstorming (D) All of the above.
(C) mind mapping
(D) group thinking 34. Which of the following is NOT an
enhancement to individual creativity?
31. Entrepreneurship is a constant process (A) Listening to other people.
that relies on:
(B) Recognizing the creative power of
mistakes.
(A) creativity, innovation, and profit. (C) Keeping a toy box in your office.
(B) the ability to win over the consumer. (D) Working without breaks until the
project is complete or the problem is
(C) creativity, innovation, and solved.
application in the marketplace.
(D) intellectual property rights. 35. Sources of innovation include
I change in behaviour
32. When developing creative solutions II new technology
to modern problems, III deregulation
entrepreneurs must:
(A) I and II only
(B) I and III only
(A) go beyond merely using whatever
(C) II and III only
has worked in the past.
(D) I, II and III
(B) limit the creative process to only
profitable ventures. 36. Which of the following is NOT a source
of innovation? (C) not observing local regulations
(D) ignoring entrepreneurial decisions
(A) Deregulation
(B) New technology 39. What type of innovation can be
described by the term “supply chain”?
(C) Existing markets
(D) Changing demographics (A) Process
(B) Position
37. Which of the following is NOT one (C) Product
of the four Ps of innovation type? (D) Paradigm
(A) Price
(B) Process 40. Creativity is ____________ new things,
(C) Position and innovation is ______________ new
(D) Paradigm
things.
38. An entrepreneur’s failure to adhere
to sound business practices can be (A) thinking; doing
considered as (B) doing; thinking
(A) behaving unethically (C) seeing; doing
(B) ignoring indigenous customs (D) t hinking; applying
Section B
Case 1 – The Business Idea to Make Money
Jack and Jill are children of the Bing family, earning $50 per week from chores at their home.
They want to buy a video game system that costs $1 000. Their parents have told them that they
must generate money to buy the system themselves. However, the children do not have enough
money to purchase it from their earnings. With summer approaching, they have thought of
selling soft drinks and candies at events held during the holidays.
There are usually large crowds of hot, thirsty people around during such periods. Their idea is to
fill a large cooler with ice, cans of soft drinks and candy bars and sell these to the customers at
these events.
The parents like their entrepreneurial spirit and have offered them a loan to buy the initial
products (soft drinks, candy bars) for the venture and their large picnic cooler so that they could
begin making ice and storing it in the freezer in the basement. This would save on overhead
costs. The parents believe that this idea is feasible, as they know that the opportunity exists for
the children to sell at their local sports park and club where cold soft drinks are always in great
demand.
Exercise
1. (a) The case presents the need for idea generation. List FIVE methods of generating new
venture ideas.
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[5 marks]
(b) Outline FIVE resources that are available to Jack and Jill in support of their business
idea.
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[10 marks]
Case 2: The Mind of the Entrepreneur
Allison, a visionary, has been operating a small book rental enterprise at the University of
Clarendon. She is now at the stage of expanding it to other Jamaican colleges. Her friend,
Joshua, from the University of the North Indies, often called Allison inventive and inspired. He
found that she did not give up easily and was always looking for a challenge. He therefore
suggested that since her enterprise is well positioned, she should take advantage of this
opportunity. Allison is performance driven and keeps abreast of modern trends such as
information communication technologies (ICT), demand and demography changes and
globalization, in the hope that she can one day seize opportunities to venture into new frontiers.
Exercise
2. (a) (i) Outline THREE entrepreneurial characteristics which have been attributed to
Allison in the case.
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6 marks
(ii) Discuss the importance of TWO characteristics outlined in (a) (i).
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6marks
(b) From the case, identify THREE factors that are driving contemporary entrepreneurship in
the modern economy.
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3 marks
3. Case: Change Brings Opportunity
Raul and Samantha wanted to cart a business in nature heritage tourism called Ocean Echo
Stable that would focus on horseback riding The couple had developed the idea by speaking to
their immediate family, brainstorming with some of their friends, speaking to a small focus
group and a group of eco-tourism experts. Samantha, a strategist, advised Raul that they should
check to see whether the opportunity really exists. She argued that they needed to determine
whether changing demographics, new emerging markets and new technologies exist which could
be used in the business. According to Samantha, they should also check for any social changes or
changes in regulations that might affect the business in the near future.
6. (a) Outline FOUR methods of generating business ideas that are present in the case.
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4 marks
(b) From the case, identify FIVE sources of business opportunities.
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5 marks
(c) Explain the significance of TWO of the sources stated in (b)
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2 marks
7. (a) List FOUR of the stages in the innovative process
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4 marks
8. Write short answers
a. Differentiate between the entrepreneur and the entrepreneur
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2 marks
b. State THREE mistakes of the entrepreneur
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3 marks
c. What is Code of Ethics?
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2 marks
d. EXPLAIN the following: -
i. Leader Role of the entrepreneur
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ii. Liaison Role of the entrepreneur
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4 marks
e. Outline FOUR factors which contribute to successful of entrepreneurs
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4 marks
