Principles of Business

Grade 10
End of Year Examination
Duration: 2 hrs
June 20, 2015

Student’s Name:
Class:
Teacher’s Name:

INSTRUCTIONS: This paper consists of sections A, B, C, D&E. Answer

all the questions in section A,B,C,D. Answer two (2)

questions in Section E Part One and complete all
questions from Section E Part Two

DO NOT TURN THE PAGE UNTIL YOU ARE TOLD TO DO SO

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 SECTION A

Read the following statements carefully. If the statement is True, write “T” and if

the statement is False, write “F”.

1. An advantage of credit cards, bills of exchange and electronic transfer is that they

facilitate the movement of capital because they are instruments of exchange. _______

2. Lack of common measure of value and lack of store of value are drawbacks of the

barter system. _______

3. Three disadvantages of not properly promoting a good or service includes; reduction

in sales, loss of profit and bankruptcy.________________

4. Productivity is the process of combining units of inputs to create output capable of

satisfying human needs and wants while production is the increase of output from

each unit in the production process. _______

5. Lack of double coincidence of wants is not a drawback of the barter system. _______

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 SECTION B

Read the following items carefully and then circle the letter for the BEST answer.

6. Which of the following statements best explains the importance of trading

instruments?

Trading instruments are important because they:

a. are a means of transferring money

b. can be easily transferred in settlement of debts.

c. eliminate the problems associated with the barter system and create a

better means of facilitating trade.

d. can be used to obtain goods and services

7. From the responses below select the option which best describes who is an

entrepreneur.

a. A person who is employed by others

b. Someone who organizes and operates a business or businesses, taking on greater

than normal financial risks in order to do so.

c. A person that operates the business of another in the management capacity

d. All of the above

8. What is promotion?

a. This is the selling of goods and services in order to generate profit.

b. This is the building of customer awareness about goods or services.

c. Advertising goods and services.

d. Short-term incentives given to customers to encourage sales.

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 9. Which one of the following best explains the importance of production in society?

a. Productivity increases output as high productivity results in lower cost per unit

of output resulting in higher levels of profit for a business.

b. Higher profits from production for the firm will mean more funds available for

its expansion, new business ventures and community support.

c. Production may also wish to pass on the benefits of lower costs to consumers

in the form of lower prices.

d. All of the above

10. All of the following are not traits of the entrepreneur except:

a. (goal-oriented, tenacious, comfortable, wealthy)

b. ( takes all sorts of risks, innovative, domineering)

c. all of the above

d. (persistent, adaptable, self- motivated, high sense of integrity

11. On a daily basis credit cards are used:

a. as loans given to pay for items

b. to make payments for items but are not considered loans

c. for payments on large debts incurred by the card holder

d. none of the above

12. What are the four main elements in the marketing mix?

a. Advertising, Sales, Promotion, Price

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 b. Promotion, Product, People, Place

c. Price, Place, Price, People

d. Product, Promotion, Price, Place

13. Ann just recently opened up a new hair parlour. She has $100,000 in savings and has

obtained a loan of $20,000 to pay the first month’s rent for the location that she got.

She also went ahead and took out hair dryers from Courts on hire purchase, which she

made a down payment of $25,000 leaving a remainder of $10,000. How much capital

did it take for Ann to open her new parlour?

a. $55,000

b. $45,000

c. $100,000

d. $155,000

14. What are the factors of production

a. Land, money, capital, enterprise

b.Capital, labour, money, enterprise

c. Land, labour capital, enterprise

d.Capital, labour, money, land

15. The term capital refers to:

a. Only the money that is invested in a business to ensure its smooth

operation

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 b. Fixed assets supplied to a business at start up and during business

operations

c. Assets such as machinery, equipment, inventory and cash that are used to

start and continuously operate a business.

d. Current assets invested within a business that are used to operate the

business

16. Which best describes publicity/public relations?

a. Shaping and maintaining the image of a company, organization or

individual in the eyes of the public.

b. This is the process through which goods and services are distributed.

c. This is the term used to describe the process by which sales agents go to

the public to introduce a new good or service.

d. Offering 10% discount on selected items

17. Which characteristics best describes the entrepreneur’s ability to be credible and

exhibit a good code of conduct?

a. Perseverance and flexibility

b. Innovative and willingness to take calculated risks

c. Integrity and ethics

d. None of the above

18. Select the answer that best describes the role of capital.

Capital plays the role of:

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 a. Providing the business with cash which is necessary for daily business

transactions

b. Helping the business when starting up and keep it afloat when it gets going

c. Financing the business throughout its dealings

d. Supplying a business with needed financing, assets and materials necessary to

start up and continue its operations

19. Which of the following best describes promotional element(s)?

a. A vendor selling tomatoes in a market with a price tag indicating that her tomatoes

cost$10 per pound.

b. A big sign displayed in front of a shop notifying the public that they are offering

10% discount on selected items.

c. A sales clerk giving tutorials on how to apply makeup in a cosmetic store.

d. b&c

20. Select the definition which best defines the term “entrepreneurial traits”.

a. Skills the entrepreneur possesses to complete the manual and technical work within the
organization
b. The personal features or qualities possessed by the entrepreneur that helps them
to operate the business effectively
c. The general knowledge or know how possessed by the entrepreneur
d. None of the above

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 SECTION C

Read the following passages then answer the questions that follow by circling the letter of

the BEST answer.

The disadvantages of the barter system created the need for a medium that could be used to

facilitate trade. Trade involves the transfer of the ownership of goods or services from one

person or entity to another in exchange for other goods or services or for money. Money solved

the problems of the barter system. Money is anything that is acceptable for the purchase of goods

and services. Presently it is in the form of notes and coins, quasi money or substitute money and

near money. These types of monies are known as trading instruments.

21. Which of the following groups of items most accurately indicate the trading

instruments that the passage speaks about?

a. Bills of exchange, credit cards, electronic transfer

b. Bills of exchange, bills of lading, credit cards

c. Credit cards, bills of exchange, bonds

d. Credit cards, stocks, bills of lading

22. As opposed to the above passage, which option best indicates benefits of using the

barter system?

i. It is a simple system devoid of the complex problems of the modern

monetary system.
ii. There is no question of over or under-production under the barter system
since goods are produced just to meet the needs of the society.

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 iii. Personal and natural resources are ideally utilised to meet the needs of the
society without involving any wastage.
iv. The barter system does not reap the benefits of division of labour because
it does not represents a great step forward from a state of self- sufficiency

a. i, iii and iv only

b. i, ii and iii only

c. ii, iii and iv only

d. All of the above

Read the following paragraph and answer the questions below by placing the True/ False

on the correct space provided

There are several characteristics which are possessed by an effective entrepreneur in the

operation of their business. Each trait aids in bringing forward good business development if and

when applied by the entrepreneur.

23. The entrepreneurial traits that are employed in each organization are subjective to

the capacity or nature of the business_______________

Read the following passages then answer the questions that follow by circling the letter of

the BEST answer.

Factors of production are the resources that allow us to create finished products and perform

services. You can't create a product out of nothing. Every single factor of production is

important. You can't even perform a service without labour! A modern economy, along with our

modern society, cannot exist without factors of production. Factors of production are needed to

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start up every business from a hair salon to a hotel. It is important at each level within the

business industry.

24. Which one of the following propositions is most essential to the final conclusion?

a. Factors of production are needed in society

b. Without factors of production people could produce nothing

c. Factors of production are resources.

d. Each factor of production is important in the creation of goods and services

and are especially important in today’s modern society

25. Which one of the following indicates the best combination of specific factors of

production that would be required to start up a hair salon?

a. personal savings, hair dressers, skills in hair care, rented salon

b. personal savings, loans, rented salon, hair dressers

c. skills in hair care, loan, rented salon, hair dressers

d. skills in hair care, loan, rented salon, personal savings

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 SECTION D

Instructions: Please match the respective answers in Column B to the correct items in
Column A by placing the letter next to the correct response on the lines provided.

Column A: Column B:

_______ 26. This is an order in writing from an exporter to

an importer requiring payments of a certain sum of money for A. Electronic transfer
goods bought overseas on credit which is to be paid for at a
fixed future date

B. Bills of Exchange
________ 27. This is a system used to transfer funds
electronically rather than paper-based payment methods

________28. This aims at getting the public to buy a product C. Flexibility

in general without focusing on a particular brand.

______29. This causes the entrepreneur to respond and adapt D. E-commerce

to the changing business environment

______30.Coupons,advertisement,premiums,10% E. What is collective advertising?

off and backyard sale

________31.To build customer awareness

and increase sales F. Money Order

G. List five sales promotion tools

H. What is the main purpose for

promoting goods and services?

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 SECTION E

Part One

32. Evaluate the vast impact that e-commerce has had on how businesses are conducted today.

(10 marks)

______________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

33. Write a detailed description explaining the importance of promoting goods and services. This

should include the definition of promotion, five (5) advantages and (5) disadvantages with

explanation along with other information. (10 marks)

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

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34. In the space provided below, clearly identify three traits that an entrepreneur possesses. ( 10

marks)

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

35. In the space provided clearly describe the three traits listed for the above question.(10

marks)

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

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 Part Two:

36. Trading instruments play a vital part in the transactions of business today. Using

no more than one page explain briefly the history of trading instruments from

subsistence economy to money economy. ( 15 marks)

37. Read the following scenario and from the piece explain the traits that should have

employed as an entrepreneur to have prevented the failure of his business

entrepreneurial and state how each is essential to the overall success of a business.

(15marks)

Mr. Donavon is a forty two year old husband and father of three who recently opened a

business called ‘Best for less Furniture and Appliances’. Mr. Donovan is the sole

decision maker in the business, which is lead under an authoritative type of leadership

style. Due to the fact that the business can still be considered as newly opened Mr.

Donavon has only sought to ascertain the help of his wife, oldest son and the help of

one external staff member.

Mr. Donovan has taken a very matter of fact approach to the running of his business,

and is often intolerant to any suggestion towards the running of the business except his

own. In addition to this he is often times late for work and continues to stock antique

furniture even though most customers express their desires for more modern crafted

models. Within three years of the business operation there have been no changes to the

business’s marketing approach, goods being offered or even the physical layout of the

business. In fact due to the lack of sales in the appliances being offered by the store Mr.

Donovan has decided to stop the selling of appliances completely. Within the next year

Mr. Donovan has decided to sell his business regardless of advice received from friends

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 and families to keep it open but adjust the business as to keep up with other more

innovative stores.

38. Productivity is an important component for growth in any economy. Verify four ways in

which the country can increase its productivity levels. Be sure to include relevant examples.

Limit your answer to no more than eight hundred (800) words (25 marks)

Good Luck

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 Table of Instructional Objectives and Test Items

Instructional Objectives Test Items

Nature of a Business
Students should be able to: 21. Which of the following groups of items most accurately
indicate the trading instruments that the passage speaks
1.1 list three trading
about?
instruments used in society today a. Bills of exchange, credit cards, electronic transfer
b. Bills of exchange, bills of lading, credit cards
c. Credit cards, bills of exchange, bonds
d. Credit cards, stocks, bills of lading

1.2 define each of the two Column A: Definition of Column B:

Terms Terms
trading instruments identified
above after reading textbook
_______ 26. This is an order
A. Electronic
in writing from an exporter to transfer
an importer requiring
payments of a certain sum of
money for goods bought
overseas on credit which is to
be paid for at a fixed future
date

B. Bills of
________ 27. This is a system Exchange
used to transfer funds
electronically rather than
paper-based payment methods

1.3 identify one advantage of each 1. An advantage of credit cards, bills of exchange
and electronic transfer is that they facilitate the
of the three trading
movement of capital because they are instruments
instruments listed previously of exchange. _______

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 2.1 explain briefly the history of 36. .Trading instruments play a vital part in the
trading instruments from
transactions of business today. Using no more than one
subsistence economy to
page explain briefly the history of trading instruments
money economy
from subsistence economy to money economy. ( 15

marks)

2.2 outline three drawbacks 2. Lack of common measure of value and lack of store of
value are drawbacks of the barter system. _______
of the barter system after
listening to class 5. Lack of double coincidence of wants is not a drawback
discussion
of the barter system. _______

2.3 outline three benefits 22. .As opposed to the above passage, which
option best indicates benefits of using the barter
of the barter system after
system?
listening to class
a. It is a simple system devoid of the
discussion
complex problems of the modern
monetary system.

b. There is no question of over or under-

production under the barter system
since goods are produced just to meet
the needs of the society.

c. Personal and natural resources are

ideally utilised to meet the needs of the
society without involving any wastage.

d. The barter system does not reap the

benefits of division of labour because it
does not represents a great step forward
from a state of self- sufficiency

a. i, iii and iv only

b. i, ii and iii only
c. ii, iii and iv only
d. All of the above

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 3.1 explain the importance of 6. Which of the following statements best
explains the importance of trading instruments?
trading instruments in society
today Trading instruments are important because they:
a. are a means of transferring money
b. can be easily transferred in settlement of debts.
c. eliminate the problems associated with the barter
system and create a better means of facilitating trade.
d. can be used to obtain goods and services

3.2 state how you make use of 11. On a daily basis credit cards are used:
one of the trading instruments
a. as loans given to pay for items
on a daily basis
b. to make payments for items but are not considered

loans

c. for payments on large debts incurred by the card

holder

d. none of the above

3.3 evaluate the vast impact that 32. evaluate the vast impact that e-commerce
e-commerce has had on how
has had on how businesses are conducted
businesses are conducted
today.
today.

Establishing a Business 7. From the responses below select the option which best
describes who is an entrepreneur.
1.1 define clearly without use of the A. A person who is employed by others
textbook who is an entrepreneur B. Someone who organizes and operates a business or
businesses, taking on greater than normal financial
risks in order to do so.
C. A person that operates the business of another in the
capacity of management
D. All of the above

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1.2 list three traits an entrepreneur must 34.In the space provided below clearly identify three traits that
possess without the use of the an entrepreneur possesses
textbook
1.3 outline two ways accurately in which 37. Read the following story and from the piece explain the
two entrepreneurial traits of the three steps Mr. Donovan should have taken as an entrepreneur (in
chosen are beneficial to the success of terms of his traits) to ensure to have prevented the failure of
organizations his business and state how each is essential to the overall
success of the business.(15marks)

2.1 read the handout stipulating the traits _____29. This causes the entrepreneur to respond and adapt to
of the entrepreneur within the the changing business environment
given five minute period

2.2 select two characteristics of an 10. All of the following are not traits of the entrepreneur
entrepreneur after reading the handout except:
and give an example of how each could A.(goal-oriented, tenacious, comfortable,
be incorporated in decision making in the wealthy)
business B.( takes all sorts of risks, innovative, domineering)
C.all of the above
D.(persistent, adaptable, self- motivated, high sense of
integrity)
2.3 clearly describe the three 35. In the space provided clearly describe the three traits listed
characteristics chosen in their own words for the above question.
giving an example of one enterprise
which implements these traits.

3.1 watch a video highlighting the

entrepreneurial traits and the ways in 23. There are several characteristics which are possessed by an
which they help to make a business effective entrepreneur in the operation of their business. Each
successful trait aids in bringing forward good business development if
and when applied by the entrepreneur

a. The entrepreneurial traits that are employed in each

organization are subjective to the capacity or nature
of the business_______________

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3.2 proceed to complete the given work 20. Select the definition which best defines the term
on the handout by answering the “entrepreneurial traits”.
questions about the entrepreneurial traits a. Skills that the entrepreneur possesses to
pertaining to the video watched complete the manual and technical work within
the organization
b. The personal features or qualities possessed by
the entrepreneur that helps them to operate the
business effectively to operate the business
effectively
c. The general knowledge or know how possessed
by the entrepreneur
d. None of the above

3.3 create a three minute dramatization in 17. Which characteristics best describes the entrepreneur’s
groups of five highlighting some of ability to be credible and exhibit a good code of conduct?
the incorrect and ideal traits of an a. Perseverance and flexibility
entrepreneur in a business which they b. Innovative and willingness to take calculated risks
have created. c. Integrity and ethics
d. None of the above

Marketing
1.1 clearly define 8. What is promotion?
the term promotion after a) This is the selling of goods and services in order to
reading the hand-out generate profit.
b) This is the building of customer awareness about
goods or services.
c) Advertising goods and services.
d) Short-term incentives given to customers to encourage
sales.

1.2 explain the aim of

promotion after class discussion H. What is the main purpose for promoting goods and
services? (section D)

1.3 list the four 12.What are the four main elements in the marketing mix?
elements that make up the a) Advertising, Sales, Promotion, Price
promotion mix b) Promotion, Product, People, Place
c) Price, Place, Price, People
d) Product, Promotion, Price, Place

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2.1 after watching
the video clips E.What is collective advertising? (section D)
thoroughly describe one
of the
types
of advertising

2.2 give five G. List five sales promotion tools. (section D)

examples of
sales promotion
after reading page
149 in the textbook

2.3 clearly define 16. Which best describes publicity/public relations?

what public a) Shaping and maintaining the image of a company,
relation is after organization or individual in the eyes of the public.
group activity b) This is the process through which goods and services
are distributed.
c) This is the term used to describe the process by which
sales agents go to the public to introduce a new good
or service.
d) Offering 10% discount on selected items

3.1 List three disadvantages of not 3.Three disadvantages of not properly promoting a good or
properly service includes; reduction in sales, loss of profit and
promoting goods and services after bankruptcy.________________(True/False)
group discussion

33.Write a detailed description explaining the importance of

promoting goods and services. This should include the
definition of promotion, five (5) advantages and (5)
disadvantages with explanation along with other information.

3.2 clearly describe the

importance of
promoting goods and
services

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3.3 demonstrate 19.Which of the following best describes promotional
how to promote a good or element(s)?
service using a) A vendor selling tomatoes in a market with a price tag
one of the indicating that her tomatoes cost$10 per pound.
promotional b) A big sign displayed in front of a shop notifying the
elements public that they are offering 10% discount on selected
items.
c) A sales clerk giving tutorials on how to apply makeup
in a cosmetic store.
d) b&c

Production 14.What are the factors of production

1.1 list the four (4) factors involved in a. Land, money, capital, enterprise
b. Capital, labour, money, enterprise
the production of goods and c. Land, labour capital, enterprise
d. Capital, labour, money, land
services after reading prescribed

textbook

1.2 explain clearly, the relevance of 24. Which one of the following propositions is most
essential to the final conclusion?
each factor of production after a. Factors of production are needed in society
b. Without factors of production people could produce
reading a handout of a case study. nothing
c. Factors of production are resources.
d. Each factor of production is important in the creation of
goods and services and are especially important in
today’s modern society

1.3 identify the specific factors of 25.Which one of the following indicates the best
combination of specific factors of production that would
production that would be required be required to start up a hair salon?
a. personal savings, hair dressers, skills in hair
to start up a hair salon. care, rented salon
b. personal savings, loans, rented salon, hair
dressers
c. skills in hair care, loan, rented salon, hair
dressers
d. skills in hair care, loan, rented salon, personal
savings

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2.1 define the term capital after listening 15 .The term capital refers to:
a. Only the money that is invested in a business to
to class discussion
ensure its smooth operation
b. Fixed assets supplied to a business at start up and
during business operations
c. Assets such as machinery, equipment, inventory
and cash that are used to start and continuously
operate a business.
d. Current assets invested within a business that are
used to operate the business

2.2 summarise the role of capital in 18.Select the answer that best describes the role of capital.
production, without the use of Capital plays the role of:
a. Providing the business with cash which is
textbook
necessary for daily business transactions
b. Helping the business when starting up and keep
it afloat when it gets going
c. Financing the business throughout its dealings
d. Supplying a business with needed financing, assets
and materials necessary to start up and continue its
operations

2.3 calculate the amount of capital that 13.Ann just recently opened up a new hair parlour. She has
$100,000 in savings and has obtained a loan of $20,000 to
would be needed to start up the pay the first month’s rent for the location that she got. She
also went ahead and took out hair dryers from Courts on
small business as was identified hire purchase, which she made a down payment of
$25,000 leaving a remainder of $10,000. How much
in the case study capital did it take for Ann to open her new parlour?
a. $55,000
b. $45,000
c. $100,000
d. $155,000

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3.1 differentiate between production and 4.Productivity is the process of combining units of
productivity after class discussion inputs to create output capable of satisfying human
needs and wants while production is the increase of
output from each unit in the production process.
_______

3.2 explain accurately the 9.Which one of the following best explains the importance
of production in society?
importance of production in society a. Productivity increases output as high productivity
results in lower cost per unit of output resulting in
higher levels of profit for a business.
b. Higher profits from production for the firm will
mean more funds available for its expansion, new
business ventures and community support.
c. Production may also wish to pass on the benefits of
lower costs to consumers in the form of lower
prices.
d. All of the above

38. Productivity is an important component for growth in any

3.3 verify four ways in which the country economy. Verify four ways in which the country can increase

can increase its productivity levels its productivity levels. Be sure to include relevant examples.

with the use of textbook Limit your answer to no more than eight hundred (800) words

(25 marks)

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 Scoring Key
Section A: True/False (Total = 5 marks)

Instruction: Assign one mark each for the correct response.

1. T
2. T
3. T
4. F
5. F

Section B: Multiple Choice (Total =15 marks)

Instruction: One mark is to be assigned for each correct response given.

6. c 14. c
7. b 15. c
8. b 16. a
9. d 17. c
10. d 18. d
11. a 19. d
12. d 20. b
13. a

Section C: Interpretive Exercise (Total= 20 marks)

Instruction: Four marks are to be allocated for the correct response.

21. a
22. b
23. F
24. d
25. a

Section D: Matching (Total = 30 marks)

Instruction: Five marks are to be given for the correct response

26. B 29. C
27. A 30. G
28. E 31. H

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 Section E: Short Answers (Total = 95 marks)
Part One: (Total= 40 marks; total possible marks= 20marks)
Instruction: Ten marks are to be given for each correct answer indicated.

32. The rise of E-commerce has radically transformed the way the world does business at

every imaginable level—from the smallest of small businesses taking its first hesitant

step into the online marketplace to the cut and thrust of global competition, where the

biggest online players vie to dominate the market.

The increasing importance of the global market is driven in part by the ubiquity of

smartphones and other mobile devices as well as the ever-growing availability of Wi-Fi

access, not only within the home, but also in public areas, such as cafes, shopping malls

and bricks and mortar stores. These factors have come together to create an environment

which facilitates online purchases at almost any time and in practically any location. The

online businesses which have benefited most from this environment are, not surprisingly,

those who have invested in an online presence which has been optimized for mobile

customers. With providers such as Livecity offering simple to use website building tools

with drag and drop interfaces that can be used to create both traditional and mobile-

optimized sites, this option is increasingly available to even the smallest businesses.

As the online market continues to expand, evolve and mature, it looks set to continue to

change the global market for many years into the future. While all this change has

brought with it many new opportunities for businesses to reach out to new clients and

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Construction of Paper-and-Pencil Test 27

customers as well as to partner with one another it has also uncovered new challenges

which the business community will have to address. These include ensuring safe

payments with innovative payment solutions such as that developed by PayPal, as well as

creating attractive online stores and an integrated shopping experience for their

customers.

33. Promotion is the building of customer awareness of goods or services. It is very

important element used in a business because in order for a business to make a profit that

business must be generating revenue through sales. Therefore customers must to aware

that the good or service is available. Promotion can be conducting using four elements

this includes: Advertising, Sales Promotion, Personal selling and public relations.

Advertising is a non-personal presentation technique this includes: ads billboards, poster

etc. Sales promotion includes offering temporary incentives to increase sales example;

coupons. Personal selling is a presentation made by individuals representing a sponsor to

prospective buyers to persuade them to purchase the good or service for example; A sales

clerk giving tutorials on how to apply makeup in a cosmetic store. Whereas public

relation is Shaping and maintaining the image of a company, organization or individual in

the eyes of the public example; sponsoring a culture or sporting event.

Advantages: Increase sales

i. Generate Revenue

ii. Build customer awareness

iii. Increase the business market

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Construction of Paper-and-Pencil Test 28

iv. Expand the business

Disadvantage:

v. Bankruptcy

vi. Decrease in sales

vii. Unemployment

viii. Reduction in the labour force

ix. Loss on profit

34. Three traits of the entrepreneur include flexibility, focus, and ability to take calculated

risks.

35. Flexibility of the entrepreneur has to do with their ability to change and adapt to the ever

changing business environment. Many circumstances may result in change in the

business environment such as the entrance of new businesses, the development of new

products and even legal and economical changes in the country. Such occurrences can

require the entrepreneur to adjust quickly as to maintain and increase the profitability of

the business.

The entrepreneur must also always maintain focus to ensure effective operation of the

business. Focus has to do with the entrepreneur's ability to pay particular attention to the

business as a whole( staff and internal operations), competitors and even the external

environment that affects the productivity of the business regardless of favourable or

unfavourable circumstances.

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Construction of Paper-and-Pencil Test 29

Lastly, the entrepreneur must be able to take calculated risks. The phrase 'taking

calculated risks' entails the entrepreneur's ability to part take in new investments and

ventures that he or she has properly evaluated, that are logical and properly researched.

As a result of this the entrepreneur is therefore highly confident that the venture will be

beneficial to the growth of the business. This separates them from 'risk takers' who tend

to part take of ventures without much knowledge or research. Ventures, that tend to

become unhelpful and even disastrous for their business.

Part Two: (Total= 30 marks)

Instruction: Award each restricted essay (question numbers 36 and 37) with marks based on the
following criterion.

Restricted Essays:
Criterion Marks Meaning

Excellent 15 When response is

outstanding
Great 12 When response is correctly
stated without faults
Good 9 When response is correctly
stated but with few faults

Acceptable 6 When response is partially

correct but with some faults

Inadequate 3 When response is partially

correct but with many faults

Fail 0 When response is incorrect

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Construction of Paper-and-Pencil Test 30

Extended Essay: (Total =25 marks)

Instruction: Marks are to assigned to the extended essay based on the criterion given. (question
38)

Criterion Possible Scores Scores Earned

Introduction 3
Organisation of Content 7
Subject Knowledge 7
Conclusion 5
Mechanics (grammar, spelling etc) 3
Total 25

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