Get premium membership and access revision papers, questions with answers as well as video lessons.
Entri 543:Small Business Management Question Paper
Entri 543:Small Business Management
Course:Master Of Business Administration
Institution: Kenya Methodist University question papers
Exam Year:2011
KENYA METHODIST UNIVERSITY
SCHOOL OF BUSINESS AND MANAGEMENT
END OF SEMESTER EXAMINATION FOR MASTER IN BUSINESS ADMINISTRATION DECEMBER, 2011
UNIT CODE : ENTR 543
UNIT TITLE : SMALL BUSINESS MANAGEMENT
TIME: 3 HOURS
INSTRUCTIONS:
Answer question 1 and any other 3 questions from the list provided.
Question 1 is compulsory.
CASE STUDY: Sources of Finance n the footsteps of an Entrepreneur. The search
Continues
Erick Kimbimbi, owner of intelligent systems inc, a security software systems company holding several patents on its products, is in a tight spot, one in which many entrepreneurs find themselves. He recently received a huge order from a large customer, but his company lacks the plant capacity to fill it. "you need the customer to get big, you are not big enough to have the customer," he says. To accept the order, Eric world have to expand his plant from its present size by a factor of five at a cost of Ksh. million, money he doesn’t have. Although his capital needs are bigger that those of most small entrepreneurs, Eric has run the numbers on the project and is confident that the money would take his company to the next level. "if we had the five million, we could get a 30percet return annually on it," he says. His company would be able to sell to the giants in the financial sector industry as well as to various government bodies.
Still Eric has had no luck convincing lenders or investors to put up the five million in expansion capital. The banker she has approached have refused his requests. "Banks weren’t interested at all in a project like this because the company was too small and didn’t have a history of handling operations of that scale," he explains. As anxious as he is to get the financing to expand his business. Eric recognizes the dangers of choosing the wrong source of capital. He has seen other entrepreneurs lose control of their companies and wants to avoid making the same mistakes for now, he is focusing on growing his company slowly white he continues his search for capital. "Eventually," he says "somebody is going to give us the money and we will tap that big market."
Question One
What risks does Eric face if he is successful in securing the five million he heeds for expansion? What can he do to minimize these risks?
(10mks)
Assume the role of financial consultant to Eric where would you recommend he search for the capital he needs to expand his business? Explain your reason
(10mks)
What similarities do you see between Eric’s situation and someone probably starting a new enterprise? What financial sourcing options are available in Kenya and why do you think are appropriate
(10mks)
Question Two
Consultants play a major role in providing assistance to small business, yet many small businesses fear using consultancy, services
Explain five probable barriers between the client and a consultant
(5mks)
Discuss the characteristics clients expects from a consultant
(10mks)
How can you as a consultant to small businesses build a good relationship with your client
(5mks)
Question Three
Mr. Omondi would like to start a small business after completing a master of business course.
Explain to him the entrepreneurial process to follow to ensure he has set up a viable business
(10mks)
Why should he locate his business for it to be profitable? Justify
(8mks)
How can Omondi benefit from some of small enterprise development policies already implemented in the country
(7mks)
Question four
Using knowledge gain on small business management, discuss five different parameters you can recommend to be used in describing a small business
(10mks)
Despite of their significance in a country’s development, small businesses face a lot of challenges that affect their growth and survival. Discuss any six major constraints citing relevant examples
(15mks)
Question Five
Discuss the contributions the government of Kenya has made so far to support the development of the small business
(12mks)
Why would you encourage small business owners to develop business plans for their businesses
(8mks)
Propose to managers of small business the appropriate methods of marketing their products and services
(5mks)
Question Six
Why is customer service importance in a small business
(5mks)
What are some of the myths existing in the Kenyan market concerning entrepreneurs highlighting six of them
(5mks)
Discuss briefly the stages of small business life cycle and highlight the managements challenges in each stage
(15mks)
More Question Papers
Popular Exams
Return to Question Papers