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Diploma 1 In Business Administration Entrepreneurship Education Past Paper Question Paper

Diploma 1 In Business Administration Entrepreneurship Education Past Paper

Course:Diploma In Business Administration

Institution: Machakos University question papers

Exam Year:2010

Time: 2 Hours

Answer all the questions

1.Read the case study and answer the questions below.

Mrs Muli is a skilled computer technician and a mother of five children. Her husband is a teacher at Mwanza Primary School. All her children are attending school.
Almost three quarters of of the family's earnings are used in paying school fees and buying books. The balance is used to pay house rent and food for the family.

Mr Muli has a health problem and sometimes fails to go to work. He is currently being probed by his employer. Mrs Muli is very concerned with state of affairs as she feels that their salaried employment is threatened.

Mrs Muli has thought of starting a business and has approached her uncle who owns a fleet of matatus for a loan. Her uncle was very positive and promised herquie a substantial amount. She and her husband have agreed to sell their family vehicle which is also proving difficult to maintain. Mrs Muli has also convinced one of her workmates to join her and start a small computer servicing workshop in an empty room behind a shop. The shop owner has agreed to sub-rent the room for Ksh 200 per month.

Mrs Muli is very confident that this business is high paying and she will initially start it on part time basis. She will be at her workshop during weekends and evenings. Some of her employer's customers have promised to give her some work. She hopes when it starts and becomes operational she will become the director and invite more partners to join her through sale of shares which will boost the capital of her small business. She will also engage two or three apprentices who will train on the job as they assist her in doing maintenance work.

1.(a) Is Mrs Muli using the right approach in starting her business and why?(5 Marks)
(b) Does Mrs Muli have the necessary qualifications to be a director of the business. Explain. (5 Marks)
(c) Explain what made Mrs Muli to think of starting a workshop. (5 Marks)
(d) Advise Mrs Muli on the best organizational structure for her workshop. (10 Marks)
(e) Design an organizational chart for Mrs Muli's workshop.(5 Marks)

2.List and explain FIVE external motivation factors.(10 Marks)

3.Differentiate between equity and debt financing and give three advantages and three disadvantages of borrowing from a lending institution.(10 Marks)

4.A good business location is one of the major factors that will influence the success of your business. Identify FIVE factors to consider when choosing a sutiable business location. (10 Marks)

5.Describe FIVE characteristics of a valid contract.(10 Marks)

Diploma 1 In Business Administration Entrepreneurship Education Past Paper Question Paper

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