CONCEPCION HOLY CROSS COLLEGES INC.

MIDTERM EXAMINATIONS
ENTREPRENEURSHIP
Time: 13H00 16H00 Date: 12 September 2017

Mark Allocation: 100 POINTS Number of Pages: 6

INSTRUCTIONS TO STUDENTS
1. Answer ALL questions in SECTION A on the Answer Sheet provided at the
back of this Examination Paper and FOUR (4) questions from SECTION B in
the separate Answer Booklet provided.
2. Lay your work out clearly, using headings, sub-headings and paragraph
numbers.
3. The examination should be conducted in strict silence.
4. This is an open book exam, however, No consultations with seatmates during
the exam by a student.
5. Ensure that your Name, CHCC Permit No#, your ID Number are ALL
recorded on your Answer Booklet. No names should be recorded anywhere
on the Answer Booklet.
6. Failure to observe the rules and regulations set down by the SAIM will be
considered cheating and you will be disqualified from this examination and
any future SAIM examinations.
7. DO NOT START ANSWERING QUESTIONS UNTIL THE INVIGILATOR
TELLS YOU TO DO SO!
SECTION A
Answer ALL questions on the Answer Sheet at the Back of this Examination
Paper: 40 points

Set Questions 1 (20 pts)

Answer the following statements with TRUE or FALSE.

1.1) Entrepreneurship aids in decreasing unemployment in the economy.

1.2) Using waste materials to create art that can be sold is NOT a form of
entrepreneurship.
1.3) The following terms relate to entrepreneurs: creative; innovative; building
something from nothing.
1.4) SMME stands for small, medium and micro enterprises.
1.5) A characteristic of an entrepreneur is the inability to deal with risk.
1.6) Entrepreneurs are usually opportunity oriented.
1.7) Target market refers to potential customers.
1.8) The following is an example of market segmentation: Men between the ages
of 30 and 50.
1.9) The operations part of a business plan includes human resource
requirements.
1.10) A company is an association of shareholders incorporated in terms of the
Companies Act (2008).

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Set Questions 2 (20 pts)
Match Column A to Column B.

Column A
2.1) Creativity
2.2) Entrepreneurship
2.3) Technopreneur
2.4) Small business owner
2.5) Franchising
2.6) Business opportunity
2.7) Business idea
2.8) Feasibility
2.9) Viability
2.10) Business Plan
Column B
A Entrepreneurs who combine their technological and
entrepreneurial skills.
B Owners who usually dont take risks.
C The possibility of putting an idea into practice.
D A method of distributing goods and services where
trademarks, trade names and/or business systems are
used between business owners.
E To set out every imaginable aspect of the planned
establishment of the enterprise.
F The ability to produce new and original ideas in order to
solve a problem.
G Practicality and profitability. Transforming an idea to
generate profit.
H Creating and building something of value in the midst
of uncertainty and risk.
I When an idea is feasible, viable and can be transformed
into an enterprise.
J The identification of a gap in the market for after sales
service of sporting equipment.

SECTION B
Answer any FOUR (4) Questions in the separate Answer Booklet provided:
60 pts.

Set Questions 3 (15 pts)

Choose the most correct answer.
3.1) The ability to deal with risk and uncertainty enables entrepreneurs to:
a) constantly be on the look-out for opportunities
b) see risk as an opportunity
c) solve problems in a creative way
d) find better, new ways to do things (2 pts)

3.2) The acronym SACCI stands for:

a) South African Chamber of Business
b) South African Chamber of Consumers
c) South African Chamber of Commerce and Industry
d) None of the above (2 pts)

3.3) A partnership,
a) has only one owner
b) has a minimum of two owners
c) has a maximum of two owners
d) has a maximum of twenty-one owners (2 pts)

3.4) In public companies, there must be

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 a) at least two directors
b) a name which ends with (Pty) Ltd
c) limited transferability of shares
d) at least one director (2 pts)

3.5) The acronym DTI stands for:

a) Department of Trade and Innovation
b) Department of Technology and Infrastructure
c) Department of Trade and Industry
d) None of the above (2 pts)

3.6)
Complete the following table with regard to the characteristics of a private
company.
Characteristic Private company

Number of members
Number of directors
Can the general public buy shares?
Do shares have limited or free transferability?
The company name must end with....

(5 pts)
ESSAY
Set Questions 4 (15 pts)
4.1) Explain the concept of a company having legal personality. (3 pts)
4.2) List the four (4) forms of business ownership and specify if each has legal
personality or not. (8 pts)
4.3) Describe the management structure of a sole proprietorship. (4 pts)

Set Questions 5 (15 pts)

5.1) There are three (3) main stages of setting up a business. These stages
include the identification of a feasible idea to the execution of that idea. Draw
a diagram illustrating these stages. (6 pts)
5.2) Explain what a feasibility study is. (3 pts)
5.3) Explain the meaning of a viable idea and a viability study. (6 pts)

Set Questions 6 (15 pts)

6.1) Many successful business owners agree that the key to starting a business is
the identification of a viable business idea. Discuss five (5) possible sources
of creating business ideas. (10 pts)
6.2) Explain the difference between an entrepreneur and entrepreneurship.
(5 pts)

Set Questions 7 ( 15 pts)

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7.1) The pricing of a product is very important, because sales generated provides
finance for the organisation to cover all costs and helps the organisation to
grow. If the organisation decides on a mark-up of 35% and the cost price is
106.00 per unit, calculate the selling price. Show all calculations. (4 pts)
7.2) List the four (4) categories of resources (8 pts)
7.3) The business operates in three (3) main environments. These environments
are internal or external, and exert great influence on the business. List these
environments. (3 pts)

OVERALL TOTAL POINTS FOR EXAM PAPER: 100 PTS.

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 CONCEPCION HOLY CROSS COLLEGES INC.
2017 MIDTERM EXAMS
ENTREPRENEURSHIP
SECTION A: ANSWER SHEET

NAME: ______________________ ID Number:# ___________ Score: _______

DATE: _____________________ Exam. Permit Number# __________________

Question 1 TRUE OR FALSE

1.1) ____________ 1.6) ____________
1.2) ____________ 1.7) ____________
1.3) ____________ 1.8) ____________
1.4) ____________ 1.9) ____________
1.5) ____________ 1.10) ____________

Question 2 MATCH COLUMN A TO COLUMN B

2.1) ____________ 2.6) ____________
2.2) ____________ 2.7) ____________
2.3) ____________ 2.8) ____________
2.4) ____________ 2.9) ____________
2.5) ____________ 2.10) ____________

Question 3 CHOOSE THE MOST CORRECT ANSWER

3.1) ____________
3.2) ____________
3.3) ____________
3.4) ____________
3.5) ____________

Question 4 COMPLETE THE FOLLOWING TABLE

Characteristic Private Company

Number of Members
Number of Directors
Can the general public buy shares?
Do shares have limited or free transferability?
The company name must end with ....

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