EEB December 2023 Answers

Q.1 Solve any four out of five.

a. Different methods of acquisition/merger include:
1. Merger: Two companies combine to form a new entity, sharing resources
and management.
2. Asset Purchase: Acquiring specific assets of a company rather than the
entire business.
3. Stock Purchase: Buying a company's stock to gain control over its
operations.
4. Management Buyout: The company's management team acquires the
business, usually with borrowed funds.
5. Leveraged Buyout: Purchasing a company using a significant amount of
borrowed money, with the company’s assets often used as collateral.
b. The role of an entrepreneur in economic development includes:
1. Job Creation: Entrepreneurs create new jobs, reducing unemployment
and stimulating economic growth.
2. Innovation: They introduce new products and services, driving
technological progress and improving quality of life.
3. Economic Growth: By expanding business operations, entrepreneurs
contribute to overall economic growth and development.
4. Wealth Generation: They generate wealth through their ventures, which
can be reinvested into the economy.
5. Regional Development: Entrepreneurs can boost local economies by
establishing businesses in underserved areas, fostering regional
development.
c. Government policies on SMEs include:
1. Financial Assistance: Providing subsidies, grants, and loans to support
small and medium enterprises (SMEs).
2. Tax Incentives: Offering tax breaks or reduced tax rates to encourage
SME growth and investment.
3. Regulatory Support: Simplifying regulations and reducing bureaucratic
hurdles to ease the operational burden on SMEs.
4. Training Programs: Implementing programs to enhance the skills and
capabilities of SME owners and employees.
5. Market Access: Facilitating access to new markets through trade
agreements and promotional initiatives.
d. Challenges of e-business models include:
1. Security Concerns: Protecting sensitive data from cyber threats and
breaches can be challenging.
2. Technical Issues: Ensuring website functionality and managing technical
glitches can disrupt business operations.
3. Regulatory Compliance: Adhering to various laws and regulations
related to online transactions and data privacy.
4. Customer Trust: Building and maintaining trust with customers in an
online environment can be difficult.
5. Competition: Facing intense competition from both local and global e-
businesses.

e. Define a Woman Entrepreneur and state the steps the government

should take to encourage women entrepreneurs.
A woman entrepreneur is a female who starts and manages her own business.
The government can encourage women entrepreneurs by offering financial
support through lower-interest loans and grants, providing specialized training
programs to enhance skills, facilitating networking opportunities to connect with
mentors and investors, creating policies that ensure equal opportunities, and
supporting work-life balance initiatives to help women manage their business
and personal responsibilities.

Q.2
a) Financial vs. Non-Financial methods of motivation:
1. Financial incentives such as bonuses, salaries, and commissions directly
impact employees’ earnings and drive their motivation.
2. Recognition through awards, praise, and public acknowledgment enhances
job satisfaction without involving financial rewards.
3. Providing opportunities for promotions and professional growth motivates
employees by giving them a clear career progression.
4. Creating a positive and supportive work environment fosters employee
motivation and engagement beyond monetary incentives.
5. Allowing employees autonomy in their work and decision-making boosts
their motivation and sense of ownership.
b) Starting a new Electronic Components business using SWOT analysis:
1. Innovative product designs and advanced technology capabilities are key
strengths that differentiate the business.
2. High initial investment costs and a reliance on complex supply chains
represent significant weaknesses that need addressing.
 3. The growing demand for electronic components and ongoing technological
advancements present valuable opportunities.
4. Intense competition and rapid technological changes pose threats that
may impact product relevance and market position.
5. Developing strategies to leverage strengths, address weaknesses, seize
opportunities, and mitigate threats is essential for success.
Q.3
a) Factors to ensure a new venture does not fail:
1. Developing a comprehensive business plan with clear objectives and
strategies is crucial for guiding the venture.
2. Securing adequate capital to cover startup costs and sustain operations
helps prevent financial instability.
3. Conducting thorough market research to understand market needs and
consumer preferences aligns the business offerings effectively.
4. Ensuring strong leadership and effective management is necessary to
drive the business and navigate challenges.
5. Being adaptable and responsive to market changes and challenges helps
maintain competitiveness and overcome obstacles.
b) Features of a good marketing plan:
1. A detailed examination of market trends, customer demographics, and
competition provides a foundation for effective marketing strategies.
2. Clearly defining customer segments helps tailor marketing efforts to meet
the needs and preferences of specific audiences.
3. Setting specific, measurable goals guides marketing strategies and
activities towards achieving desired outcomes.
4. Developing detailed plans on how to implement marketing strategies
through various channels ensures coherent execution.
5. Allocating financial and human resources effectively supports the
implementation and success of marketing strategies.
Q.4
a) An ERP (Enterprise Resource Planning) system integrates core business
processes across various departments. Features include:
1. Managing budgeting, accounting, and financial reporting to ensure
effective financial oversight and control.
2. Overseeing employee records, payroll, and recruitment to streamline
human resource management.
3. Coordinating procurement, inventory, and logistics to optimize supply
chain management.
 4. Controlling production planning and manufacturing processes to improve
operational efficiency.
5. Handling sales, marketing, and customer service activities to enhance
customer relationship management.
b) Technology adoption leads to successful business activity by:
1. Automating processes and streamlining operations enhances productivity
and operational efficiency.
2. Facilitating the development of new products and services drives
innovation and market differentiation.
3. Providing tools and systems that offer a competitive edge improves overall
business performance.
4. Enabling businesses to reach a global audience through digital platforms
expands market reach and opportunities.
5. Utilizing analytics and data insights to make informed decisions improves
strategic planning and business outcomes.
Q.5
a) E-commerce involves the buying and selling of goods and services online.
Types include:
1. Transactions between businesses, such as those between wholesale
suppliers and retailers, characterize B2B e-commerce.
2. Interactions between businesses and individual consumers, such as online
retail stores, define B2C e-commerce.
3. Transactions between individuals, often facilitated by online marketplaces,
represent C2C e-commerce.
4. Platforms where individuals sell products or services to businesses, like
freelance platforms, are examples of C2B e-commerce.
5. Business transactions with government entities, involving goods and
services, illustrate B2G e-commerce.
b) Supply Chain Management (SCM) involves managing the flow of goods and
services from suppliers to customers. Characteristics include:
1. Coordinating activities across the supply chain to improve efficiency and
reduce costs.
2. Providing real-time tracking and monitoring of goods and inventory to
enhance visibility.
3. Streamlining processes to optimize performance and minimize operational
disruptions.
4. Collaborating closely with suppliers and partners to ensure smooth and
efficient operations.
 5. Adapting quickly to changes in demand and supply conditions to maintain
flexibility and responsiveness.
Q.6
a) Sources of long-term finance include:
1. Raising capital by selling shares to investors provides funds without
incurring debt, known as equity financing.
2. Borrowing funds from banks or financial institutions with extended
repayment periods is achieved through long-term loans.
3. Issuing bonds to investors, promising repayment with interest, is a method
known as debentures.
4. Securing investment from venture capitalists in exchange for equity
supports high-growth potential businesses.
5. Reinvesting profits generated by the company back into the business
helps finance expansion and development.
b) Procurement involves acquiring goods and services, while e-Procurement uses
digital tools for this process. Components include:
1. Using online platforms to identify and evaluate suppliers through digital
requests for information, proposals, and quotes.
2. Automating the creation and approval of purchase orders to streamline the
ordering process.
3. Receiving and processing invoices electronically to enhance accuracy and
efficiency in financial transactions.
4. Managing contracts digitally to simplify agreement processes and ensure
compliance with terms.
5. Tracking and improving procurement performance through data insights
and analytics supports effective decision-making.