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Entre 432:Business Planning Question Paper

Entre 432:Business Planning

Course:Business Administration

Institution: Kenya Methodist University question papers

Exam Year:2013

KENYA METHODIST UNIVERSITY

END OF 3''RD ''TRIMESTER 2013 (DAY) EXAMINATION
SCHOOL : BUSINESS AND ECONOMICS
DEPARTMENT : BUSINESS ADMINISTRATION
UNIT CODE : ENTR 432
UNIT TITLE : BUSINESS PLANNING

TIME: 2 HOURS

Instructions:

Question One

Explain how a business plan differs from the investment proposal.

(5mks)

When developing a business plan, explain the key issues to keep in mind in order to come up with a winning plan.

(5mks)

What are the nine components of a good mission statement? (9mks)

The executive summary of a business plan is written last but comes first in the business plan. Why this is so and which areas should it capture.

(11mks)

Question Two

"Business plans that look good on paper may fait in practice" comment on this statement.

(10mks)

Briefly explain the key areas that are captured in the marketing section of a business plan.

(10mks)

Question Three

Describe at least five different target groups to whom a business plan may be sent and for each group, what would be the purpose of giving it to them.

(10mks)

Explain any five risks that are common threats to an enterprise. (10mks)

Question Four

Janet is in a business of selling computers the total fixed cost is Ksh. 2,500,000. The selling prize for a units of a computer is Kshs. 15,000 and the variable cost for a unit of a computer is Ksh. 10,000.

Calculate the Breakeven point in terms of units and also Kenya shillings.

(7mks)

Suppose Janet decide that a 30% return on fixed would make the project worth the investment, calculate how many units she must sell to achieve this level of profits and also the sales volume to realize the same profit.

(7mks)

In case a potential entrepreneur is interested in ding industry analysis, what areas of industry should the analysis factor.

(6mks)

Question Five

What is the importance of the following financial documents to the entrepreneur.
Cash flow projection
Proforma income statement
Balance sheet

Pre-operational costs.

(12mks)

Highlight the key components of an operational plan section of a business plan for a manufacturing firm.

(8mks)

Entre 432:Business Planning Question Paper

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