CCMBP402 – BUSINESS PLAN

DEVELOPMENT

DATE: ……………/2024

PERIOD:

EXAM DURATION: 3 Hours

NATIONAL EXAMINATIONS YEAR:

2023/2024 MARKING GUIDE
SECTOR: ALL

RQF LEVEL: L4

TRADE: ALL
MARKS: …………/100
DURATION: 3 HOURS

INSTRUCTIONS TO CANDIDATES:

This Exam paper is composed of Twenty-four (18) questions

distributed in Three Sections (A, B, C). Follow the instructions given
below, and answer the indicated questions in each section for a total
of 100marks

Section A: Eleven (11) questions, all are Compulsory. 40 marks

Section B: Four (4) questions, choose and answer any three (3) 30 marks
Section C: Three (3) questions, choose and answer any two (2) 30 marks

Allowed Materials: Blue pen, Ruler, Calculator, Pencil, (Fitting with the
exam paper)

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SECTION A: Attempt All Questions (40 Marks)

01. Choose the statement is true or false.

• A) Business plan: is a formal written document containing business goals, the

methods on haw these goals can be attained, this document serves as road of
map that provides direction to the business.

• B) Project plan: is a detailed road map that outlines the step needed to
complete a specific project successfully.

Answer

Choose the statement is true or false.

A) business plan: is a formal written document containing business goals,

the methods on haw these goals can be attained, this document serves as road
of map that provides direction to the business. True (1Mark)

B) Project plan: is a detailed road map that outlines the step needed to
complete a specific project successfully. True (1Mark)

(Each statement carries 1Mark x2=2Marks)

Reference: LU1: Analyze a business plan, curriculum level 4, April 2022

remembering

Q2. Choose two (2) the element of business plan as the fallowing

a )financial plan

b) Business plan

c) Production plan

d) Project plan

Answer
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Choose two (2) the element of business plan as the fallowing

 a)financial plan. (1Mark)

 c)production plan .(1Mark)

(Each correct element carries 1Mark x2=2Marks)

Reference: LU1: Analyze a business plan

Curriculum level 4, April 2022, remembering

Q3. List four (4) Business staff plan.

Answer

List four (4) Business staff plan.

Job analysis

Job description

Job specification

Organization structure

One correct business staff plan1 marks each (4Marks)

Reference: LU 2: Write a business plan , Curriculum level 4, April

2022),Remembering

Q4. List 4Factor influencing choice effective supplier.

Answer

List 4Factor influencing choice effective supplier.

Price

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 Location and transport cost

Lead time

Productivity quality

Reliability Reputation of supplier

One (1) factor correct 1 marks each. (4Marks)

LU 2: Write a business plan, Curriculum level 4, April 2022),

Remembering

Q5.Illustrate risks estimations tools

Answer

Illustrate risks estimations tools

 Risks impact chart

 Probability chart

(1Mark any correct tools carries1 2 marks each (4 marks)

Reference: LU3: establish business contingency plan, Curriculum level 4,

April 2022) ),Remembering

Q6. Outline different type of business

Answer

Outline different type of business

1.Sole proprietorship

2.Partnership

3.Corporations

4cooperative

5.Limited liability

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One correct type of business 1 marks each(4Marks)

Reference: (LU1:Analyze a business plan Curriculum level 4, April 2022

( understanding)

Q7. Outline 2 type of business risk

Answers

Outline 2 types of business risks

1. Internal risks. (2Marks)

2. External risks (2Marks

One correct type of business risks2 marks each (4Marks)

Reference: LU 2: Write a business plan, Curriculum level 4, April 2022),

Remembering

Understanding)

Q8. Outline 2Purpose of contingency.

Answer

Outline 2Purpose of contingency plan

increase credit available

Prevent Punic

Two purpose correct carries2 marks each (4Marks)

Reference: LU3: establish business contingency plan, Curriculum level 4,

April 2022) understanding

Q9. Illustrate different step involves in business plan presentations

Answer

Illustrate different step involves in business plan presentations

Analyze your audience

Select topics
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 Define the objectives of the business plan and anticipated the question from
audience

Prepare the suggestions and conclusion

Deliver the presentation of business plan.

Consider four (4) step correct 1 mark each. (4Marks)

Reference: LU4: Present a business plan, Curriculum level 4, April 2022)

understanding

Q10. Choose the statement and there is true or false

a) Business: are same thing that business need to do or to have in order to stay
in business.

b) Business requirement: refers to economic activity that involves productions

and selling goods and services covering risks with aims of making profit.

Answer

Choose the statement and there is true or false.

a) Business: are same thing that business need to do or to have in order to

stay in business. False (1Mark)

b) Business requirement: refers to economic activity that involves productions

and selling goods and services covering risks with aims of making profit. False
(1Mark)

Reference: (LU1: Analyze a business plan

Curriculum level 4, April 2022, Applying

Q11. After defining business, Organize procedure involves in business plan

presentation.

Answer

Business: refers to an economic activity that involves production and selling of

good, covering risks with aims of making profits.(1Mark)

Connect with your audience .(1Mark)

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 point a picture in your audience mind. (1Mark)

use statistics data.

(1Marks well correct definitions while any correct procedure 1marks each
(4 marks)

Reference: LU4: Present a business plan, Curriculum level 4, April 2022)

Applying

SECTION B: Attempt any Three (3) Questions (30 marks)

Q12. Organize different steps involves in contingency plan

Answer

Organize different steps involves in contingency plan.

1. Make list of risks

2. Weigh risks based on severity and like hood

3. Identify important risks

4. Create contingency plan for the biggest risks.

5. Distribute contingency plan

6. Monitor contingency plan

7. Create new contingency plan if necessary

Five steps well organized 2 marks each (10Marks)

Reference: LU3: establish business contingency plan, Curriculum level 4,

April 2022) Applying

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Q13. Distinguish 5Factors to consider when choosing business locations.

Answer

Distinguish 5Factors to consider when choosing business locations. (Sections

Availability of raw material: if you want to start business you may choose
place where they fund more availability of raw material because they facilitate
means of transport that help business acquire more profit.

Nearness to the market: if the business is nearest to the customers the

business success because the customers are easy to find product.

Availabity of basic infrastructure: infrastructure affect choice of

location like water supply good road , network and security

Economic policy: same economy favour capitalism and other favour

socialism where the government control all business other hand
government policy fiscal policy, exchange rate, taxes, levies and duties.

Demographics: the type of product or services your business offers and

status of customers will play a vital in your choice of business location.

Industrial clusters areas: same entrepreneur may decide to site business

in industrial area or c clusters due to the infrastructure and amenities already
on ground.

Export processing zones: location of business in export processing zone

may be a smart choice for you especially if are an exporters.

Free trade zones: international free trade zone and trade fair centres are
also good places to site your business because it accessible and normally
receives wide publicity.

Psychographics: mind set of your particular area or regional is also a factor

to consider when choosing location for your business.

Five (5) correct factor well explained 2 marks each(10marks)

Reference: (LU1: Analyze a business plan

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Curriculum level 4, April 2022, (Analyzing)

Q14. Distinguish different PESTEL analysis as environmental factors of

business

Answer

Distinguish different PESTEL analysis as environmental factors of business

(SECTIONS B)

POLITCAL FACTOR: these are all about haw and to what degree a
government intervenes in the economy.

ECONOMIC FACTOR: is the factor that incudes economics growth, interest

rates, exchanges rates, inflations, etc.

SOCIAL FACTOR: all social factors that might affect sales of product and
services .like social styles, education levels.

TECHNOLOGICAL FACTORS: all factors due to changes in technology that

may affect production and sale an d services like new discoveries, rate of
technological obsolescence, rate technological advances.

LEGAL FACTOR: all legal aspect or changes that may affect the business
environment like product regulations, patents/copy right infringements, health
and safety regulations.

ENVIRONMENT FACTORS: all environment factors that can affect business

operations like geographical locations, climate and weather, etc.

Consider Five (5) factors well explained 2 marks each. (10 marks)

Reference: LU3: establish business contingency plan , Curriculum level 4,

April 2022 ) analyzing)

Q15. Same employees need to recruit same workers in business in order to

increases productions or output Determine 5 labour requirement needed
during production process.

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Answer

Same employees need to recruit same workers in business in order to increases

productions or output Determine 5 labour requirement needed during
production process.

1. Type of workers need during productions process .

2. the required skills of each workers and their qualifications

3. Number of workers needed.

5. what kind of work should they do

6. haw much will they be paid

7. whether they are readily available and their payment

8. what labour and safety standards must be met

9haw are they to be recruited

10. What personnel development or staff training programs to conduct?

Consider Five(5) labour requirement 2 marks each.(10Marks)

Reference: LU 2: Write a business plan , Curriculum level 4, April

2022),Evaluating.

SECTION C: Attempt any TWO(2) Questions (30 marks

Q16.The following are information obtained from book account of

SERUGENDO’s business for the period December 31,2017 ,Apply
SERUGENDO trading, profit and loss account for the year ended December
31,2017.

PARTICULARS FRW

Stock,1january2017 ……………….................................1,000,000

Capital...................................................................................850,000

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Loans from Semana...........................................................100,000

Sales.......................................................................................7,000,000

Purchases............................................................................5,000,000

Wages and salaries..........................................................500,000

Rent and salaries.............................................................360,000

Postages and telephones...............................................120,000

Rents received...................................................................1,200,000

Stock,31december2017.................................................1,200,000

Ansuer

Sales........................................................................................................................7,000,000(1
Marks)

Less cost of goods sold:

Opening stock.....................................................1,000,000(1Marks)

Add: purchases....................................................5,000,000(1Marks)

Good available for sales…………………….6,000,000(1 Marks)

Less: closing stock.............................................1,200,000(1Marks)

Cost of good sold................................................................................................(4,800,000)

(1Marks)

Gross profit............................................................................................2,200,000 (1Marks)

Add: miscellaneous incomes

Rent received................................................1,200,000(1Marks)

Gross
income......................................................................................................................3,400,000(
1Marks)

Less operating expenses:

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Wages and salaries...........................................500,000(1Marks)

Rent and salaries.............................................360,000 9(1Marks)

Postages and telephone.................................120,000(1Marks)

Total
expenses................................................................................................980,000(1Marks)

Net
profit.......................................................................................................(2,420,000(2Marks)

(15 marks)

Reference: LU 2: Write a business plan , Curriculum level 4, April 2022),

(Applying)

Q17. Explain 5 element of business plan.

ANSUER

Explain 5 element of business plan. (Sections

Title/cover page: is the first element of business plan that often the first
impression of business for interest parties or investors, that purpose of cover is
to the reader what document is about.

Executive of summary: is summarizing the key point of business plan for it

reads, saving time and preparing them for the upcoming content.

General description of business: is a section coming after the executive

summary that outlines vital about your company.

Production plan: is an analysis of the projected needs for manufacturing the

proposed good or services.

Organization plan: this part of a business plan show haw machine, tools
and equipment and workers will be used and combined in the business.

Marketing plan: is document of business outlines marketing strategies and

tactics.

Action plan: The part of business plan which list what steps must be taken
in order to achieve a specific goals.

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 Financial plan: is the part of a business plan which covers all financial
requirements of a proposed business.

Five (5) elements well listed 1 marks each while well explanations of
each element two marks each. (15 marks)

Reference: (LU1: Analyze a business plan

Curriculum level 4, April 2022, (Evaluating)

Q18. Government Rwanda encourage young people to start small business in

order to avoid to be boy and girls Discuss the 5 source business capital if you
want to start a business.

Answer

Government Rwanda encourage young people to start small business in order

to avoid to be street boy and girls Discuss the 5 source business capital if you
want to start a business.

1. Debt capital: this source capital involves borrowing money that needs to be
repaid with interest.

2. Equity capital: this source capital involves selling ownership shares in your
business to investors in exchanges for capital.

3. Fundraising: is money correct by our friend and give you to facilitate to start
business.

4. family contributions: is money correct by relatives and give to start

business.

5. Gambling: is money from the different games you may play that games and
gain chance to get money to start business.

6. salaries and wages: is money you can get depend on job you have and work
performed that you can as source capital depend on money earned.

7. Government grant: is money provided by government with small interest

and they pay late for many years that money they use sources of capital.

8. Selling personal property: selling the owners property you have they gives
money that are used as sources of capital.
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9. Inheritance: there is property give you by family you sell that the
money comes they use as source of capital.

5 correct list source of business capital 2 marks each while you explain
clearly one marks each.(15marks)

Reference: LU 2: Write a business plan, Curriculum level 4, April 2022

(Creating)

END OF ASSESSMENT!

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