UNIVERSITY OF DAR-ES-SALAAM Faculty of Mechanical and Chemical Engineering Department of Engineering Management and Entrepreneurship

Homework 1 MG445 1. Name the types of entrepreneurship? [2] 2. What factors pull people into entrepreneurship? [5] 3. Among the characteristics commonly associated with entrepreneurs include (choose): [1] (a) Low tolerance for ambiguity (b) External locus of control (c) Low need for achievement (d) Self-confidence 4. When an entrepreneur is comfortable with uncertainty and willing to take risks, these are indicators of someone with (choose): [1] (a) High tolerance for ambiguity (b) Internal locus of control (c) Self-confidence (d) Action orientation 5. Name the components that make-up the working capital of any business? [5] 6. Using transactions cards shown in the table inhere of the Koji Company Limited of Dar Es Salaam for the period ending on 31st December 2005, prepare an investment plan of the Koji Company Limited to indicate the investment portfolio and also determine the solvency of the company on the date of investment. However, Koji Company financed its procurement of vehicles and office equipment through a loan from reputable bank in Dar-es-Salaam, whereas, the working capital required was able to access only 60% through the loan bank. The rest of investments were financed using own equity. What is the solvency of the company at the accounting or investment date acceptable to the banks for financing the project? [23] No. Item 1. 2. 3. 4. 5. 6. 7. 8. Office rent Loan for vehicles, office equipment and working capital is at an interest rate of: Working capital required is only the specified of the annual working capital Sales Selling and Marketing costs Tax Payable Office Equipment Vehicles
1

Otherwise specified, all are in Tshs. 500,000 10% 40% 12,000,000 200,000 10% 3,000,000 2,500,000

9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20.

Top management salaries, etc. Direct Labour Raw Materials Purchased (in a period) Raw Materials Beginning Office equipment life span (years) Ending Stock of Materials Factory Overhead Total Fixed Assets Account Payable Business licence and registration Receivables rated Total Fixed Assets life span (years)

1,300,000 2,000,000 2,000,000 1,000,000 10 1,000,000 500,000 10,000,000 500,000 400,000 1% 10

7.

Determine the interest rate Poda Company Limited of Mbeya got when acquired a loan from Mtakula Bank Limited as of 31st December 2005 using transactions cards shown in the table below as recorded on the 31st December 2005. [23] No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. Item Office rent Interest expenses Sales Selling and Marketing costs Tax Payable Office Equipment Top Management Staff Salaries, etc. Direct Labour Raw Materials Purchased (in a period) Raw Materials Beginning Office equipment life span (years) Ending Stock of Materials Factory Overhead Total Fixed Investments Total Equity Vehicle and lathe machine life span (years) Account Payable Vehicle and lathe machine Working capital (WC) required of annual WC Equity of the working capital required Receivables rated Total Fixed Assets life span (years) Business licence and registration Otherwise specified all are in Tshs. 500,000 400,000 12,000,000 200,000 10% 1,500,000 1,300,000 2,000,000 2,000,000 1,000,000 10 500,000 500,000 10,000,000 11,500,000 5 500,000 3,000,000 60% 80% 10% 20 500