BMS 1501
Exam scope:
1. Entrepreneurship and small, medium and micro enterprises in perspective
2. Basic business concepts and the business environment
3. The identification and development of business ideas
4. The viability of a business idea
5. The business plan
6. Setting up a business
OCTOBER/NOVEMBER 2017
Question Digital
Number Answer
1 2.abc
Characteristics that are important to ensure the success of an entrepreneur
Perseverance – entrepreneur must have confidence in themselves and their business
and carry on inspite of setbacks, difficult situations and problems
Commitment to the business – entrepreneur dedicate their skills, expertise and
resources to establishing and building the business. They prove commitment by:
Using their own money to establish the business
Taking a mortgage on a house
Working long hours
Accepting a lower standard of living and possibly earning little or no income from the
business until it is successful
Involvement in the business- they are involved in the business and are aware of
everything that is happening on all levels and in all sections of the business.
Willingness to take risks – entrepreneurs takes calculated risks. Thos means that the
risk related to a business opportunity must not be too great, for then the chance of
success is not in the hands of the entrepreneurs. They are not gamblers. The level of
risk must not be too low. Entrepreneurs usually try to reduce the risk by finding
investors to provide finance ,making arrangements with suppliers ton provide goods on
consignment or persuading suppliers to accept special terms ,and so forth.
Sound human relations – entrepreneurs work closely with other people: they realize
they cannot be successful in isolation and therefore motivate their employees. They not
know only how to build contacts and long term relationships.
Creativity and innovation –
Positive attitude and approach – entrepreneurs learn from their setbacks and failures.
They are realistic and accept that disappointments are inevitable, and are not
discouraged when these occur.
2 4.The external factors (absence of competition)
3 4.easier to access
4 3.involvement
5 1.willingness to take calculated risks (arrangement for an overraft)
6 3.identify the need
7 1.she remains positive
MR. BLESSING KK 0742 523 282 MR. BLESSING KK 0742 523 282
, 8 4.customer service
Customer service – it is about marketing and administrative functions. Entrepreneurs
who maintain good human relations are aware of clients’ needs, and so provide very
good customer service. Examples are after sales service, attention to detail, such as
serving refreshments when a client visits.
Knowledge of their competitors
Market orientation – they must know who or what their target market is, its demands
and needs, and how to meet this profitability.
The importance of quality products
Accounting for your own purpose ability to understand their own accounting systems.
Insight into the expenditure ,income , profit and loss –ability to distinguish between
income and profit
The ability to use income wisely –the ability to exercise financial discipline and
understand what to spend on to ensure success.
9 3.service
Definition of a production branch
A production branch refers to all the enterprises that use more or less the same production
processes or perform the same activities.
A branch of industry refers to all the enterprises that produce or sell more or less the same
products or provide the same services
Manufacturing production branch
Shoe manufacturing and furniture manufacturing are clear that that they manufacture different
products, they all use raw materials (inputs) which they process into final products (outputs).
Therefore, they all fall under the manufacturing production branch.
Commercial production branch.
Shoe trading branch ,furniture trading branch and clothing trading branch enterprises sell
different products, they all sell final products to consumers. Therefore, they all fall under the
commercial production branch.
Service production branch
Garden services and medical services are clear that they provide different services, They only
provide services – they do not manufacture or sell products. Therefore, they all fallunder the
service production branch.
10 3.service
11 3.tertiary
12 4.bcd
13 1.direct,mission
14 2.capital
15 3.right to be heard
The customers have the rights to :
Be informed – the customer should receive objective information about the available
products and services
Exercise personal choice- a variety of products and services is available on the market
and the customer has the right to decide what to buy.
Be heard – the business must be geared towards listening to and responding to
customer’s complaints and requests.
Protection – safety measures and warnings.
16 1.the needs of consumers
Different competition :
Competition between the needs of consumers – involves making a choice on your
limited disposable income
MR. BLESSING KK 0742 523 282 MR. BLESSING KK 0742 523 282
Exam scope:
1. Entrepreneurship and small, medium and micro enterprises in perspective
2. Basic business concepts and the business environment
3. The identification and development of business ideas
4. The viability of a business idea
5. The business plan
6. Setting up a business
OCTOBER/NOVEMBER 2017
Question Digital
Number Answer
1 2.abc
Characteristics that are important to ensure the success of an entrepreneur
Perseverance – entrepreneur must have confidence in themselves and their business
and carry on inspite of setbacks, difficult situations and problems
Commitment to the business – entrepreneur dedicate their skills, expertise and
resources to establishing and building the business. They prove commitment by:
Using their own money to establish the business
Taking a mortgage on a house
Working long hours
Accepting a lower standard of living and possibly earning little or no income from the
business until it is successful
Involvement in the business- they are involved in the business and are aware of
everything that is happening on all levels and in all sections of the business.
Willingness to take risks – entrepreneurs takes calculated risks. Thos means that the
risk related to a business opportunity must not be too great, for then the chance of
success is not in the hands of the entrepreneurs. They are not gamblers. The level of
risk must not be too low. Entrepreneurs usually try to reduce the risk by finding
investors to provide finance ,making arrangements with suppliers ton provide goods on
consignment or persuading suppliers to accept special terms ,and so forth.
Sound human relations – entrepreneurs work closely with other people: they realize
they cannot be successful in isolation and therefore motivate their employees. They not
know only how to build contacts and long term relationships.
Creativity and innovation –
Positive attitude and approach – entrepreneurs learn from their setbacks and failures.
They are realistic and accept that disappointments are inevitable, and are not
discouraged when these occur.
2 4.The external factors (absence of competition)
3 4.easier to access
4 3.involvement
5 1.willingness to take calculated risks (arrangement for an overraft)
6 3.identify the need
7 1.she remains positive
MR. BLESSING KK 0742 523 282 MR. BLESSING KK 0742 523 282
, 8 4.customer service
Customer service – it is about marketing and administrative functions. Entrepreneurs
who maintain good human relations are aware of clients’ needs, and so provide very
good customer service. Examples are after sales service, attention to detail, such as
serving refreshments when a client visits.
Knowledge of their competitors
Market orientation – they must know who or what their target market is, its demands
and needs, and how to meet this profitability.
The importance of quality products
Accounting for your own purpose ability to understand their own accounting systems.
Insight into the expenditure ,income , profit and loss –ability to distinguish between
income and profit
The ability to use income wisely –the ability to exercise financial discipline and
understand what to spend on to ensure success.
9 3.service
Definition of a production branch
A production branch refers to all the enterprises that use more or less the same production
processes or perform the same activities.
A branch of industry refers to all the enterprises that produce or sell more or less the same
products or provide the same services
Manufacturing production branch
Shoe manufacturing and furniture manufacturing are clear that that they manufacture different
products, they all use raw materials (inputs) which they process into final products (outputs).
Therefore, they all fall under the manufacturing production branch.
Commercial production branch.
Shoe trading branch ,furniture trading branch and clothing trading branch enterprises sell
different products, they all sell final products to consumers. Therefore, they all fall under the
commercial production branch.
Service production branch
Garden services and medical services are clear that they provide different services, They only
provide services – they do not manufacture or sell products. Therefore, they all fallunder the
service production branch.
10 3.service
11 3.tertiary
12 4.bcd
13 1.direct,mission
14 2.capital
15 3.right to be heard
The customers have the rights to :
Be informed – the customer should receive objective information about the available
products and services
Exercise personal choice- a variety of products and services is available on the market
and the customer has the right to decide what to buy.
Be heard – the business must be geared towards listening to and responding to
customer’s complaints and requests.
Protection – safety measures and warnings.
16 1.the needs of consumers
Different competition :
Competition between the needs of consumers – involves making a choice on your
limited disposable income
MR. BLESSING KK 0742 523 282 MR. BLESSING KK 0742 523 282
