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Buss 046:Business Planning Question Paper

Buss 046:Business Planning

Course:Diploma In Business Administration

Institution: Kenya Methodist University question papers

Exam Year:2013

KENYA METHODIST UNIVERSITY

END OF 1''ST ''TRIMESTER 2013 (EVENING) EXAMINATION
SCHOOL : BUSINESS AND ECONOMICS
DEPARTMENT : BUSINESS ADMINISTRATION
UNIT CODE : BUSS 046
UNIT TITLE : BUSINESS PLANNING

TIME: 2 HOURS

INSTRUCTIONS: Answer Question ONE and ANY Other TWO Questions

Question One
a) Clearly define what a business plan is. (2marks)
b) As a young entrepreneur in charge of a start up business, how can a business plan help your company? (8marks)
c) You are part of a group of young entrepreneurs who are competing for funding for your business venture. After meeting with the investors, you are informed that you did not succeed in your endeavor to access funding for your business. The feed back is that a lot of what the investors wanted to know about your business was not answered. The biggest problem according to some of them was your business plan which answered very little. However, they have given you a second chance to meet them next month and further explain what your venture is all about. What questions should your new business plan answer?
(10marks)
d) A mission statement describes the enterprises goal and competitive advantages. Giving relevant examples, discuss what a good business plan should exhibit. (10marks)

Question Two
a) The executive summary should be able to give the reader a brief overview of what the business is all about. Briefly discuss the issues that an executive summary should capture in order to attract the interest of a potential investor. (8marks)
b) Clearly explain any SIX risks that a business may face in Kenya.

(12marks)

Question Three
a) For any investor, it is important that any venture that they put their money into is in good hands. What issues should your management plan to address so that any potential investor is put at ease? (10marks)
b) Your business plan may be read by different people. Each of there people have different concerns. The business plan should be able to ease the various concerns of different stakeholders in your business. Briefly describe the concerns of the following stake holders.
i) Family and friends. (4marks)
ii) Bankers (3marks)
iii) Key employees (3marks)

Question Four

Write short notes on the following segments of a business plan. (20marks)
a) Marketing segment
b) Vision statement
c) Operations segment
d) Elavator pitches
e) Milestone schedule.

Question Five
a) In a business plan the financial section should clearly demonstrate the financial viability of the business. With this in mind, it is important to present a set of financial projections. As a potential investor, what would interest you most in a venture`s income statement? (6marks)
b) The cash flow statement clearly summarizes the cash position of a business, changes that may occur over a specified period and why these changes occur. Draw a sample cash flow that shows how it looks like in a business plan. (8marks)
c) What do the following ratios tell managers and business owners?
i) Return on investment (6marks)
ii) Quick ratio
iii) Net Profit margin.

Buss 046:Business Planning Question Paper

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