Get premium membership and access revision papers, questions with answers as well as video lessons.
Entre 548:Business Planning Question Paper
Entre 548:Business Planning
Course:Master Of Business Administration
Institution: Kenya Methodist University question papers
Exam Year:2012
KENYA METHODIST UNIVERSITY
SCHOOL OF BUSINESS AND MANAGEMENT
END OF SEMESTER EXAMINATION FOR MASTER IN BUSINESS ADMINISTRATION AUGUST, 2012 (EVENING)
UNIT CODE : ENTRE 548
UNIT TITLE : BUSINESS PLANNING
TIME: 3 HOURS
INSTRUCTIONS:
Answer Question ONE and any Other THREE Questions
QUESTION ONE
JUST-IN-TIME
When Margret drew up her business plan, she was certain it would help her get financial support. Margret is in the moment of putting together a monthly magazine directed towards professional women in the workplace. The objective of the periodical is to provide information useful to women who are pursuing careers. The first issue is scheduled to go to press in 60 days. Some of the articles included in this issue are "motivation in the extra-activities," "What you need to know about glooming for success", and financial management-do it like the experts". A section which is devoted to successful women at work is titled "Women in the dessert". Other features include a question and answer section that responds to letters and inquirs from readers. (The first issue`s questions were submitted by a group of women executives, each of who had been asked to help get the column started by sending in a question) a stock market section that reviews industries or companies and points out the benefits and risks associated with investing in them and a column on the state of the economy and the development or trends expected over the next 12 months.
Margret`s business plan consisted of six parts: a summary, a business critical risk section, marketing section, a milestone schedule section and an appendix. When it was returned to her with the rejection latter, the financial institution wrote "Without an organizational section, harvest strategy and financial section, this plan is incomplete and cannot be favorably reviewed by us, If you would provide us with this addition informational and submit the rewritten plan within the next 45 days, we will be happy to review the plan and give you our opinion within 2 weeks.
a) What should Margret put in the organizational structure section? What type of information does she require? (5marks)
b) For the business description section, What key areas does Margret have to address? Discuss THREE of such. (10marks)
c) For the financial segment, What suggestions would you make to Margret regarding the kind of information to include? Be specific as possible. (10marks)
QUESTION TWO
Discuss in details what should be included in the following sections of a formal business plan.
Marketing plan
Operational plan
Production plan
Business description
Milestone schedule.
(25marks)
QUESTION THREE
Mrs. Benson would want to establish an enterprise in some part of the city. For her to secure financial support from the commercial institutions she was advised to develop a business plan. Explain to her in detail what is contained in the following:
Front matters
Milestone section
Executive summary
Appendix
(25marks)
QUESTION FOUR
"It is well established that you can`t raise money without a business plan…. A business plan is a work of art in its own right. It`s the document that personifies and expresses one`s firm. Each plan, like every snow flake, must be different. Each is a separate piece of art, each must be reflective of the individuality of the entrepreneur just as you wouldn`t copy someone else`s romancing techniques, so should you seek to distinguish your plan for its difference" By Joseph Mancuso, How to write a timing Business plan?
Considering Mancuso’s statements
a) Explore the planning pitfalls that plague many new ventures. (8marks)
b) Discuss briefly the importance of a business plan and describe the
benefits derived from it. (10marks)
c) What are the business planning myths existing in our Kenyan market
today? (7marks)
QUESTION FIVE
CEBUD inc,Proforma Income Statement, two-year summary (000s)
Percent Year 1 Percent Year 2
Sales 100 970 100 1,246
Less:Cost of goods sold 50 485 50 632
Gross profit 50 485 50 632
Operating Expenses
Salaries 31.8 308.4 24.4 308.4
Rent 2.5 24 1.9 24
Utilities 1.1 10.3 0.8 10.3
Sales expenses 1.2 12 13.5 12.5
Promotion 19.8 192 1 170
Insurance 2.4 24 1.9 240
Miscellenous taxes 3 29.2 2.3 29.2
Stationaries 2.3 22.1 1.8 22.5
Depreciation 1.5 14.4 1.1 14.4
Total Operating
Expenses 65.6 636.3 48.7 615.3
Gross profit (loss) (15.6) (151.3) 1.3 16.3
Taxes 0 0 0 0
Net profit (15.6) (151.3) 1.3 16.3
NOTE: No taxes are incurred in profitable year two because of the carryover of losses in year one.
The average selling price for cebud inc of all the components is $ 4 per unit. Using the proforma income statement, determine:
a) Cebud inc breakeven point in units and in $ (10marks)
b) Illustrate the calculated breakeven point graphically. (10marks)
c) Highlight the assumptions that entrepreneurs need to make ideal
computing breakeven point in the financial plan. (5marks)
QUESTION SIX
Explain giving examples the following concepts.
Elevator pitches
Profitability ratios
Sensitivity analysis
Critical risk factors
Vision statement
Mission statement.
(25marks)
More Question Papers
Popular Exams
Return to Question Papers