Principles of Entrepreneurship and Management Past Papers

CAMS LEVEL I
PRINCIPLES OF ENTREPRENEURSHIP AND MANAGEMENT
MONDAY: 19 August 2024. Morning Paper. Time Allowed: 2 hours.
This paper consists of fifty (50) Multiple Choice Questions. Answer ALL questions by indicating the letter
(A, B, C or D) that represents the correct answer. Each question is allocated two (2) marks. Do NOT write anything on
this paper.
1. Which one of the following is a characteristic of small-scale entrepreneurs?

A. Flexibility in operations
B. Specialised knowledge
C. Unlimited resources
D. Longer gestation period (2 marks)
2. Entrepreneurs could contribute to balanced regional development in the country by ____________________.

A. ensuring taxes are high and paid in time
B. exporting surplus manufactured goods
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C. setting up industries in rural areas
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D. forming useful business networks (2 marks)
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3. Which one of the following factors could discourage entrepreneurial culture in a country?
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A. Lack of committed role models
B. Unexploited local resources
C. Lack of white-collar jobs
D. High government subsidies (2 marks)
4. Which one of the following types of entrepreneurs could easily be pushed out of the market due to rapid
innovations?
A. Imitative entrepreneurs
B. Corporate entrepreneurs
C. Modern entrepreneurs
D. Drone entrepreneurs (2 marks)
5. Mwarimbo Jones is a commercial poultry farmer located in a rural setting.

Which one of the following is a way in which he could contribute to the economic development of the country?
A. Paying taxes when due
B. Relocating the business to the city
C. Sharing the eggs with neighbours
D. Increasing importation of animal feeds (2 marks)
6. Which one of the following is a challenge that could be experienced by an entrepreneur due to unfavourable
government regulations?
A. Mismanagement of business
B. Availability of licenses
C. High cost of compliance
D. Lack of skills and experience (2 marks)
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7. Mwandikwa Kalulu is a business owner who believes that the success or failure of the business depends on fate or
luck.
Which one of the following entrepreneurial characteristics does Mwandikwa Kalulu lack?
A. Persistent problem solving
B. Internal locus of control
C. Need for achievement
D. Autonomy and independence (2 marks)
8. Which one of the following types of entrepreneurship could be undertaken by a charitable organisation?
A. Hustler entrepreneurship
B. Free entrepreneurship
C. Social entrepreneurship
D. Public entrepreneurship (2 marks)
9. Which one of the following is a way in which an entrepreneur could make use of focus groups?
A. Making strategic decisions
B. Looking for business finance
C. Preventing business risks
D. Generating business ideas (2 marks)
10. Which one of the following components of a business plan describes the purpose and scope of the entrepreneurial
venture?
A. Operations plan
B. Business description
C. Organisational plan
D. Production plan (2 marks)
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11. Which one of the following explains the reason why an entrepreneur needs a new business idea?
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A. Demonstrate self-confidence
B. Identify market for goods
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C. Develop a competitive edge
D. Avoid the use of technology (2 marks)
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12. Which one of the following is a factor to be considered when evaluating a business idea?
A. Availability of many ideas
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B. Legal form of business

C. Methods of promotion
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D. Personal competencies (2 marks)
13. Tax consideration is an important factor while choosing the form of business ownership.
In relation to the statement above, which one of the following statements describes double taxation?
A. Tax charged on both the gross and net profit
B. Payment of tax by a company twice in a year
C. Tax charged on profits and dividends received
D. Payment of corporation tax and value added tax (2 marks)
14. Which one of the following statements describes the term “joint venture”?
A. The merging of two small businesses to form a larger independent entity
B. Combination of single projects that cannot be effectively achieved alone
C. Buying an additional business that complements the already existing one
D. Relationship that exists between two or more persons who form a business (2 marks)
15. Which one of the following statements explains why a company is costly to establish?
A. Requires investment in large venture capital
B. Has to comply with several legal requirements
C. Requires investment in expansion strategies
D. Has many alternative ways of raising capital (2 marks)
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16. Which one of the following is a disadvantage of running a sole proprietorship form of business?
A. Inflexibility in transfer of business
B. No sharing of business profits
C. Owner has unlimited liability
D. Long decision-making process (2 marks)
17. Which one of the following sources of capital is also referred to as risk capital?
A. Debt capital
B. Informal capital
C. Crowd funding
D. Equity capital (2 marks)
18. Which one of the following is a characteristic of equity finance?

A. Must be provided by a single financier
B. Involves selling of fixed income products
C. Must be repaid back to the financier
D. Usually raised by all types of ventures (2 marks)
19. Which one of the following is a benefit that a venture capitalist expects to get after investing in a business?
A. Capital gains from selling of shares
B. Interest charged on money invested
C. Return of their original investment
D. Mentorship and business networks (2 marks)
20. Which one of the following statements refers to a way in which entrepreneurs could avoid giving up control of
their business at the start-up stage?
A. Form strong partnerships with equity investors only
B. Raise the needed capital from venture capitalists
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C. Avoid use of high interest, short-term debt capital
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D. Launch the business using personal financing (2 marks)
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21. Which one of the following statements explains the reason why it is important to search and reserve a business
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name in the process of registering a business?
A. Acquire a business certificate
B. Ensure the business is legal
C. Ensure the name is known
D. Ensure the name is unique (2 marks)
22. Business permits are issued by_________________________.

A. county government
B. revenue authority
C. cabinet secretary
D. business incubator (2 marks)
23. Which one of the following marketing-mix components could help increase brand recognition?
A. Place
B. Product
C. Promotion
D. Price (2 marks)
24. Which one of the following could be an outcome of customer satisfaction?

A. Good customer service
B. Customer loyalty
C. Reasonable pricing
D. Quality products (2 marks)
25. Which one of the following is a term used to describe the effort taken by entrepreneurs to ensure customers do not
switch to competitors’ products?
A. Customer attraction
B. Market expansion
C. Market acquisition
D. Customer retention (2 marks)
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26. Which one of the following terms explains a projected course of action?
A. Goal
B. Plan
C. Mission
D. Target (2 marks)
27. Which one of the following statements describes the term forecasting?
A. Avoiding unfavorable events
B. Determination of objectives
C. Prediction of possible changes
D. Determining schedules of work (2 marks)
28. Which one of the following levels of management is also known as operational management?
A. Top management
B. Board of directors
C. First line management
D. Strategic management (2 marks)
29. Which one of the following statements explains how failure to plan could adversely affect the controlling function
of management?
A. Lack of deviations to correct
B. Lack of standards to compare
C. Poor utilisation of resources
D. Failure to foresee uncertainties (2 marks)
30. Which one of the following is a way in which conceptual skills are useful in management?
A. Helps the manager to effectively supervise staff
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B. Helps to deal effectively with conflict among staff
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C. Encourages employee participation and involvement
D. Helps in identifying and exploiting new opportunities (2 marks)
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31. Which one of the following terms describes the manager’s role of arranging tasks, people and resources to
achieve goals?
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A. Leading
B. Planning
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C. Controlling
D. Organising (2 marks)
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32. Which one of the following is a managerial role that involves setting priorities about the use of organisation’s
facilities?
A. Spokesperson role
B. Liaison role
C. Leadership role
D. Resource allocation (2 marks)
33. Which one of the following terms is used to explain the ability to influence employees to pursue organisational
goals?
A. Dissemination
B. Leadership
C. Coercive power
D. Reward power (2 marks)
34. Which one of the following is a challenge experienced at the continuous growth stage of an organisation?
A. Choosing the best idea
B. Role of founder is not defined
C. Need for financing the firm
D. Distributing the firm’s profits (2 marks)
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35. Michael Kililo, the managing director of Kopa Limited, recently represented the company in a tree planting
ceremony organised by the county government.
Which one of the following management roles was performed by Michael Kililo?
A. Figure head
B. Liaison role
C. Leader role
D. Spokesman (2 marks)
36. Which one of the following represents types of plans?

A. Controls, rules, objectives and goals
B. Structures, deviations, missions and budgets
C. Policies, programs, procedures and schedules
D. Reports, tasks, schedules and strategies (2 marks)
37. In the context of management roles, which one of the following statements describes a manager as an
entrepreneur?
A. Deals with operational problems
B. Schedules subordinates’ work
C. Initiates change in the organisation
D. Gathers useful external information (2 marks)
38. Which one of the following statements explains why technical skills are important for lower-level managers?
A. Enable them supervise employees effectively
B. Enable them keep track of the environment
C. Solve complex problems in the organisation
D. Help them improve their interpersonal skills (2 marks)
39. Which one of the following roles is performed by middle level managers in an organisation?
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A. Establishing mission
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B. Interpreting policies
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C. Arranging tools
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D. Overall control (2 marks)
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40. Which one of the following statements is a reason that makes backing up electronic data important in an
organisation?
A. Protect data against unauthorised access
B. Guard against loss of important information
C. Ensure efficiency in information retrieval
D. Ensure easy storage and use of information (2 marks)
41. Which one of the following statements explains sorting of inward mail in an organisation?
A. Separating incoming and outgoing mail
B. Group incoming mail in a specific order
C. Stamping the date and time of receipt
D. Recording mail in the mail inward register (2 marks)
42. Which one of the following represents the order of a typical filing routine?
A. Collecting, coding, sorting, indexing and cross referencing
B. Collecting, sorting, cross-referencing, indexing and coding
C. Collecting, indexing, cross-referencing, coding and sorting
D. Coding, sorting, cross-referencing, indexing and collecting (2 marks)
43. Which one of the following statements describes visionary leaders?

A. Leaders with ability to foresee the future potential of an organisation
B. Leaders who come up with the overall interim goal of an organisation
C. Leaders who bring positive change in their followers’ behaviour
D. People recognised and acknowledged in the society as leaders (2 marks)
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44. Which one of the following statements describes a job specification?
A. Statement summarising the duties and responsibilities in a job
B. Detailed analysis of each job or position in an organisation
C. Statement of minimum requirements to be able to do a job
D. Nature and scope of a job in terms of tasks and operations (2 marks)
45. Which of the following documents could entrepreneurs use to help them prioritise an organisation’s hiring needs?
A. Job description
B. Job design
C. Skills profile
D. Hiring firms (2 marks)
46. Which one of the following is a responsibility of employees in taking care of their health and safety at the
workplace?
A. Providing protective clothing
B. Leaving their working areas
C. Reporting injuries and strains
D. Maintain workplace records (2 marks)
47. Which one of the following skills could be required by management to successfully negotiate and solve conflicts?
A. Coordinating skills
B. Communication skills
C. Planning skills
D. Supervisory skills (2 marks)
48. Which one of the following could be a cause of trips and falls at the work place?
A. Workplace stress
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B. Poor ventilation .k
C. Poor lighting
D. Unoccupied space (2 marks)
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49. Which one of the following is a challenge experienced by an entrepreneur at the growth stage of a business?
A. Creating and attracting a stable customer base.
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B. Addressing the increasing customer demand

C. Reinventing the business to remain relevant
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D. Deciding on the form of business ownership (2 marks)

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50. Which one of the following actions should be the focus of an entrepreneur at the seed stage of business growth?
A. Expanding management team
B. Automation and outsourcing
C. Training and hiring employees
D. Undertaking business planning (2 marks)
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CAMS LEVEL I
MONDAY: 22 April 2024. Morning Paper. Time Allowed: 2 hours.
This paper is made up of fifty (50) Multiple Choice Questions. Answer ALL questions by indicating the letter
this paper.
1. Identify a characteristic displayed by an entrepreneur who introduces new products in the market.
A. Credibility
B. Tolerance
C. Innovativeness
D. Reliability (2 marks)
2. Which one of the following challenges is associated with entrepreneurship?

A. Inflexibility of work
B. High demand
C. Low competition
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D. Loss of investment (2 marks)
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3. Choose a role played by entrepreneurship to the economic development of a country.
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A. Capital formation
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B. Provision of subsidies
C. Licensing of business
D. Determining form of business (2 marks)
4. Which of the following factors could motivate an individual to become an entrepreneur?

A. Management
B. Unemployment
C. Risk taking
D. High competition (2 marks)
5. Identify a factor that could enhance corporate entrepreneurship among businesses today.
A. Business registration
B. Working environment
C. Business strategies
D. Competitive environment (2 marks)
6. Identify the statement that describes an entrepreneur as a risk-taker.

A. Achieving goals by targeting a greater number of customers
B. Having to form their own opinion without consulting others
C. Searching new ways and techniques of production and marketing
D. Implementing decisions whose success cannot be guaranteed (2 marks)
7. Which of the following strategies could be used as a method of generating new business ideas?
A. Legal compliance
B. Business downsizing
C. Internet research
D. Business planning (2 marks)
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8. Which of the following reasons could make a start-up entrepreneur seek the services of a business incubator?
A. Reduced cost of launching a business
B. The fear of starting a business alone
C. Helps in taking calculated risk
D. Helps in brainstorming of ideas (2 marks)
9. Identify a term used to describe the process of generating multiple ideas to solve a business problem.
A. Diversification
B. Brainstorming
C. Specialisation
D. Standardisation (2 marks)
10. Choose a method that could be used to promote an entrepreneurial culture within an organisation.
A. Condemn business failure
B. Recognise entrepreneurs
C. Enhance stigma for failure
D. Discourage diversity (2 marks)
11. Identify a benefit obtained by writing and presenting a good business plan.
A. Generate new business idea
B. Increase liability of business
C. Increased chance of success
D. Greater legal compliance (2 marks)
12. Which of the following factors distinguishes a partnership from a sole proprietorship?
A. Few legal formalities
B. Has unlimited liability
C. Total control of business
D. Capacity for more capital
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13. Which of the following forms of business allows easy change of ownership?
A. Franchise arrangement
B. Partnership business
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C. Public limited company

D. Private limited company (2 marks)
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14. Choose a characteristic displayed by a partnership form of business ownership.

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A. Enjoy perpetual succession

B. Maintenance of business secrets
C. Sharing of duties in management
D. Shares are easily transferred (2 marks)
15. Identify the form of business ownership whose success relies more on the owner’s ability.
A. Company
B. Sole proprietorship
C. Franchise
D. Joint-venture (2 marks)
16. Choose a disadvantage of obtaining debt financing for business growth.

A. Payback with interest
B. Full control of business
C. Shares business profits
D. Retains ownership (2 marks)
17. Which one of the following business entry options offers owners greater protection from personal liability?
A. Company
C. Partnership
D. Franchise (2 marks)
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18. Identify a reason that could make an entrepreneur use debt capital to finance a small start-up business.
A. Inadequate working capital
B. Writing a business plan
C. Encourage investors
D. Nonpayment of interest (2 marks)
19. Which one of the following services provided by business incubators to entrepreneurs helps in capacity building?
A. Access to financing
B. Market research
C. Space availability
D. Business mentoring (2 marks)
20. Which one of the following statements explains the reason why some franchisors control the site selection
process?
A. Ensure standardised business location
B. Know where franchisee is located
C. Ensure suitable business location
D. Enhance standardised operations (2 marks)
21. Which one of the following is a benefit obtained by an organisation for having a well-defined target market?
A. Increased competition
B. Reduced marketing costs
C. Limited customer base
D. Decreased product demand (2 marks)
22. Which one of the following legal requirements does an entrepreneur need to successfully set up a business?
A. Unique personal identification
B. Personal identification number
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C. Write a business proposal
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D. Business certificate number (2 marks)
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23. Which one of the following is the first step in the process of registering a business name?
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A. Applying for a business licenses
B. Searching and reserving a name
C. Submitting documents to registrar
D. Submitting reservation certificate (2 marks)
24. Usafi enterprises provides cleaning services to urban households and businesses. There have been positive
testimonies of satisfied customers on social media about their excellent services.
Which of the following marketing-mix element is demonstrated by the positive customer reviews?
A. Promotion
B. Physical evidence
C. Processes
D. People (2 marks)
25. Identify a description for a person who offers financing in exchange for part ownership.
A. Franchising partner
B. Angel financing
C. Equity investor
D. Acquiring partner (2 marks)
26. Choose the term that explains the process of achieving organisational goals with and through people.
A. Planning
B. Management
C. Intrapreneurship
D. Staffing (2 marks)
27. Which one of the following is part of the organising function of a manager?
A. Selecting the organisation’s mission statement
B. Designing effective organisation structure
C. Recruitment of appropriate employees
D. Influencing the activities of subordinates (2 marks)
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28. Which one of the following managerial positions represents the strategic level?
A. Top level
B. Middle level
C. Lower level
D. Supervisory level (2 marks)
29. Which of the following is an aim of controlling as a management function?

A. Providing guidance to employees
B. Creation of authority and responsibility
C. Man-power planning and appraisal
D. Ensuring events conform to plans (2 marks)
30. Why would an organisation prefer using an electronic filing system?

A. Easy to store records in cabinets
B. Minimum data storage
C. Takes up a large space
D. Easy to control access (2 marks)
31. Which one of the following is a feature of leadership?

A. Relies on formal positions in an organisation
B. Involve exercise of interpersonal influence
C. Exercised both on human and non-human resources
D. Concerned with conformity with organisation rules (2 marks)
32. Choose a managerial role that involves setting priorities about the use of firm’s facilities.
A. Spokesperson role
B. Liaison role
C. Leadership role
D. Resource allocator
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33. Identify the phase of growth where a business determines its core strengths and capabilities.
A. Early growth stage
B. Maturity stage
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C. Introduction stage
D. Continuous growth (2 marks)
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34. Which one of the following terms refers to identifiable stages of growth experienced by organisations?
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A. Business expansion
B. Product cycle
C. Life cycle
D. Price stability (2 marks)
35. Choose the meaning of the term “sustained growth” experienced by business organisations.
A. Increase in sales over a short term
B. Increase in products in short term
C. Increase in profits over a long term
D. Increase in aggressive competition (2 marks)
36. Which one of the following statements could indicate that a business is growing too fast?
A. Over-stretched staff
B. Rising product quality
C. Few customer’s complaints
D. Rising productivity (2 marks)
37. Which one of the following statements is the role of top management in relation to the planning function?
A. Determination of business policies
B. Control exit and entry of people
C. Representing the organisation
D. Arranging materials and tools (2 marks)
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38. Which one of the following statements is a component of the organising function of management?
A. Monitoring the achievement of goals
B. Directing and motivating employees
C. Orientation and induction of staff
D. Assigning responsibility and authority (2 marks)
39. Identify a benefit that an organisation could derive from an effective control system.
A. Useful in establishing contacts with experts
B. Scheduling the delegation of authority
C. Ensure timely correction of operational errors
D. Gives direction to activities in an organisation (2 marks)
40. Which of the following management roles focuses on interpersonal contact?

A. Liaison role
B. Monitor role
C. Entrepreneurial role
D. Allocation role (2 marks)
41. Identify the statement that explains ‘up to date’ with reference to an effective filing system.
A. Only very current documents should be filed
B. Ensure files are renewed after a certain period
C. Records should be filed on a continuous basis
D. Documents should be filed after proper dating (2 marks)
42. Identify a way in which speed could be enhanced while handling outward mail.
A. Making special delivery arrangements with post office
B. Prompt distribution to appropriate departments
C. Having time schedule for collection and dispatch
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D. Sorting and recording mail before distribution (2 marks)
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43. Choose the term used to describe the process of assigning managerial authority and responsibility to employees.
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A. Centralisation
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B. Decentralisation
C. Delegation
D. Controlling (2 marks)
44. Identify a limitation of using monetary rewards to motivate employees.

A. May be subjective
B. Difficult to measure
C. Offer intangible rewards
D. Motivation is short-lived (2 marks)
45. Which of the following factors is a health and safety hazard at the work place?
A. Building ventilations
B. Fire extinguisher
C. Extreme noise
D. Clean environment (2 marks)
46. Which of the following functions of management involves providing leadership and motivation?
A. Staffing
B. Controlling
C. Directing
D. Planning (2 marks)
47. Which one of the following factors distinguishes leadership from management?
A. Concerned with achievement of goals
B. Exerting influence on people
C. Gets things done through other people
D. Leadership relies on formal authority (2 marks)
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48. Identify the objective of establishing an effective filing system in an organisation.
A. Implementing electronic systems
B. Ensure easy accessibility of records
C. Inappropriate classification of records
D. Evaluation of data stored physically (2 marks)
49. Identify the key purpose of stamping inward mail.

A. Ensure mail is recorded
B. Indicate initials of sender
C. Indicate value of stamp
D. Indicate the date received (2 marks)
50. Which one of the following factors could improve employee morale in an organisation?
A. Promotion of employees
B. Employee redundancy
C. Employee demotions
D. Employee separation (2 marks)
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CAMS LEVEL I
MONDAY: 4 December 2023. Morning Paper. Time Allowed: 2 hours.
this paper.
1. Which of the following is a reward for entrepreneurship?

A. Patience
B. Passion
C. Profits
D. Promotion (2 marks)
2. Identify a challenge faced by entrepreneurs when setting up a business.

A. Lack of competitors
B. Limited financing
C. Multiple channels
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D. Product maturity (2 marks)
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3. Which of the following is a factor that distinguishes intrapreneurs from entrepreneurs?
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A. Intrapreneurs are innovative
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B. They seek new opportunities
C. Their reward is wages or salaries
D. They take moderate business risks (2 marks)
4. Choose a characteristic of an entrepreneurial venture from the following:

A. Maintain modest business operations
B. Have high potential for growth
C. Involves less risk and low returns
D. Non-profit oriented pursuing social problems (2 marks)
5. Choose a reason why government encourages the setting up of small businesses.

A. Avoid establishment of large businesses
B. Promote balanced regional development
C. Reduce the level of employment in the country
D. Enable issuance of large number of licences (2 marks)
6. Identify an approach that entrepreneurs may use to establish a viable business opportunity.
A. Find gaps in the market place
B. Infrastructural development
C. Accumulate business ideas
D. Establish a legal framework (2 marks)
7. Which of the following term explains the process of turning an idea into a marketable product or service?
A. Ideation
B. Commercialisation
C. Conceptualisation
D. Validation (2 marks)
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8. Identify a role played by government in promoting entrepreneurship.
A. Providing political governance
B. Enforcing law and compliance
C. Provide an enabling environment
D. Provide business governance (2 marks)
9. Which of the following is a characteristic of an executive summary of a business plan?

A. Last to be read
B. First to be written
C. Short and comprehensive
D. Lengthy and detailed (2 marks)
10. Which of the following is a role of business incubation?

A. Provide skilled employees
B. Accelerate business growth
C. Act as business role models
D. Provide political stability (2 marks)
11. Choose a form of business that has no separation between ownership and management.
A. Private limited company
B. Public limited company
C. A joint venture company
D. Sole proprietorship (2 marks)
12. Choose the importance of having a clearly drawn partnership agreement to the members.
A. Reduce disputes among partners
B. Liability of partners are limited
C. Legal framework is broadened
D. Minimises partners tax liability
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13. Which of the following factors is considered when choosing a business entry option?
A. Generating ideas
B. Amount of finance
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C. Business plan
D. Registration plan (2 marks)
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14. What is the term used to describe a temporary partnership between companies to achieve a common objective?
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A. Joint venture
B. Merger
C. Acquisition
D. Franchise (2 marks)
15. Identify a description of a person who offers financing in exchange for part ownership.
A. Franchising partner
B. Debt financing
C. Equity investor
D. Acquiring partner (2 marks)
16. Identify a quality considered by commercial banks when lending to an entrepreneur.

A. Patience
B. Passion
C. Character
D. Perseverance (2 marks)
17. Which of the following refers to raising funds from a large number of people through the internet?
A. Venture funding
B. Market funding
C. Crowd funding
D. Gift funding (2 marks)
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18. Which of the following is a form of external financing for entrepreneurs?
A. Personal savings
B. Bootstrapping
C. Venture capital
D. Friends and family loans (2 marks)
19. Identify the source of finance that could be used by an entrepreneur who wishes to avoid loss of control.
A. Equity finance
B. Venture capital
C. Debt capital
D. Business angels (2 marks)
20. Choose a factor that technology-driven companies look for in a potential location.
A. Proximity to prospective customers
B. Composition of local labour force
C. Level of business competition
D. Proximity to essential services (2 marks)
21. Identify the act of two or more businesses sharing the same space due to high cost of business premises.
A. Retail stores
B. Outlet centres
C. Co-working
D. Non-traditional (2 marks)
22. Which of the following explains a set of positive attributes that people associate with a firm?
A. Tagline
B. Niche
C. Mapping
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D. Brand (2 marks)
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23. Identify a way in which the government has enhanced the process of acquiring business licences.
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A. Increasing the number of licences
B. Privatising the licencing procedure
C. Initiating online licencing services
D. Withdrawing all business licences (2 marks)
24. Select a strategy that an entrepreneur could use to gain instant credibility of a new brand.
A. Improving customer access
B. Use of online retailers
C. Influencer marketing
D. Initiate mass production (2 marks)
25. Which of the following is a measure that could be instituted to ensure customer satisfaction?
A. Multiple-channel support
B. Many suppliers of inputs
C. Increased customer demand
D. Writing a business plan (2 marks)
26. Which of the following defines the process of setting goals and deciding how to achieve them?
A. Organising
B. Leading
C. Planning
D. Controlling (2 marks)
27. Choose a term that refers to a manager’s role of arranging tasks, people and resources to achieve goals.
A. Leading
B. Planning
C. Controlling
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28. Identify the role played by top level managers in an organisation.
A. Implement policies
B. Supervise daily activities
C. Make long-term plans
D. Supervise and coordinate (2 marks)
29. Identify a managerial skill that consists of the ability to think analytically and understand the organisation as a
whole.
A. Technical skill
B. Human relations
C. Conceptual skills
D. Interpersonal skill (2 marks)
30. Choose the term that explains the process of achieving organisational goals with and through people.
A. Planning
B. Management
C. Intrapreneurship
D. Leadership (2 marks)
31. Identify the skills of a manager that requires proficiency in methods, processes and procedures of a given activity.
A. Organising skills
B. Diagnostic skills
D. Technical skills (2 marks)
32. Which of the following roles is played by a manager as a figure head?

A. Monitor the environment
B. Opportunity identification
e
C. Representing the organisation
.k
D. Disseminating information (2 marks)
.co
33. Identify the function of management that deals with hiring, training, compensation and developing human
resources.
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A. Recruitment
B. Leadership
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C. Supervision
C
34. Select a function performed by lower-level managers.

A. Handling routine duties
B. Coordination of departments
C. Formulation of strategies
D. Procedure and policy making (2 marks)
35. Which of the following steps is undertaken before incoming mail is opened?
A. Weighing
B. Sorting
C. Recording
D. Date stamping (2 marks)
36. Which of the following terms refers to names and addresses stored on computers to enable quick printing on
envelopes?
A. Postage data
B. Processed mail
C. Mailing list
D. Postage scales (2 marks)
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37. Choose a technique that could be used to enhance customer support emails.
A. Automated responses for known issues
B. Replying the emails only when necessary
C. Deleting and ignoring irritating messages
D. Discouraging customers from writing emails (2 marks)
38. Identify a problem that could be caused by disorderly filing of office records.
A. Use of alphabetical filing
B. Strict tracking of records
C. Complex filing system
D. Inability to retrieve records (2 marks)
39. Choose the term used to explain the ability to influence employees to pursue goals.
A. Planning
B. Leadership
C. Coercive power
D. Reward power (2 marks)
40. Identify a reason why motivation is important in an organisation.

A. Increase employee turnover
B. Eliminate need for managers
C. Reduced resistance to change
D. Grievances are likely to increase (2 marks)
41. Which of the following could be a guide to recruiting the right employee?
A. Salary
B. Race
ke
C. Nationality
o.
i.c
D. Competence (2 marks)
op
.ch
w
42. Which of the following statements describe the term “job specification”?
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A. Statement of minimum acceptable human qualities necessary to perform a job
B. Analysis of a job in order to determine the human resource requirements
C. The various specific units of responsibility and authority designated as jobs
D. Statement of duties and responsibilities required for a specific job (2 marks)
43. Identify a measure that management could use to minimise recruitment and training costs.
A. Use external sources of recruitment
B. Implement employee retention strategies
C. Avoid advertisement of vacant posts
D. Use lower-level managers to hire workers (2 marks)
44. Select a way in which conflict could be prevented in an organisation.

A. Encouraging competition
B. Introduction of change
C. Sharing of resources
D. Rules and procedures (2 marks)
45. Which of the following could be a positive consequence of conflict in an organisation?

A. Save time and resources in the organisation
B. Reveal deeper problems that need to be solved
C. Decrease stress and anxiety among employees
D. Some employees may leave the organisation (2 marks)
46. Select a reason why management should implement health and safety measures in an organisation.
A. To comply with the law
B. Improve management skills
C. Ensure punctuality of staff
D. Limit number of visitors (2 marks)
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47. Choose the stage of growth when the firm focuses on managing products efficiently rather than expanding into
new areas.
A. Decline stage
B. Maturity stage
C. Innovation stage
D. Early growth (2 marks)
48. Identify a risk that could affect safety at the work place.
A. Security guards
B. Preventive clothing
C. Environmental hazards
D. Indisciplined employees (2 marks)
49. Identify a source of a firm’s decline in performance and eventual closure.

A. Threat of innovative products
B. Firm’s competitive advantage
C. Competitive sales advertising
D. Adapting to environmental change (2 marks)
50. Which of the following should be the focus of an entrepreneur at the start-up stage of a business life cycle?
A. Forming Joint-ventures with others
B. Automation and outsourcing services
C. Adding new products to existing ones
D. Establishing a reliable customer base (2 marks)
……………………………………………………………………………
e
.k
.co
pi
ho
C
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CAMS LEVEL I
MONDAY: 21 August 2023. Morning Paper. Time Allowed: 2 hours.
this paper.
1. Which of the following indicates behaviours commonly displayed by successful entrepreneurs?

A. Passion, preference, politeness, procreating and popular
B. Patience, profiteering, political, popular and politeness
C. Passion, perseverance, promotional, planning and professional
D. Planning, promotion focus, profiteering, popular and passionate (2 marks)
2. Choose an entrepreneur who duplicates technological innovations in the market.

A. Imitative
B. Craft
C. Fabian
ke
D. Innovative (2 marks)
o.
i.c
op
.ch
3. Select a set of qualities that describes a good business opportunity.
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A. Attractive, durable, anchored on product and timeliness
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B. Attractive, high gains, short cycle and minimal resources
C. Durable, abnormal profits, long cycle and unique market
D. Anchored on product, profitable, short cycle and timely (2 marks)
4. Which of the following describes a business idea?

A. A window of opportunity for start-ups
B. A thought that may become an opportunity
C. Opportunity that meets customer needs
D. A notion for business success (2 marks)
5. Identify the role played by a social entrepreneur in the country.

A. Create profitable business
B. Engage waste collection
C. Use skill for common profit
D. Create business for common benefit (2 marks)
6. Which of the following is used by government to promote entrepreneurship?

A. Allow business tax
B. Support incubation
C. Reduce food subsidy
D. Apply centralisation (2 marks)
7. Which of the following is a benefit of writing a good business plan?

A. Attract competitors
B. Sharing resources
C. Choose founders
D. Attract investors (2 marks)
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8. Which of the following is a component of management plan?
A. Financial ratios
B. Working schedule
C. Employees roles
D. Product quality (2 marks)
9. Choose a limitation of a partnership business organisation.

A. Making snap decisions
B. Unlimited liability
C. Sharing of losses
D. Use of skills (2 marks)
10. Choose a factor considered when choosing a business entry option.

A. Climate
B. Politics
C. Cost
D. Rigidity (2 marks)
11. Which of the following describes the process of collecting first-hand information from customers?
A. Census data
B. Primary research
C. Windshield research
D. Industry research (2 marks)
12. Which term is used to describe a form of business arrangement that allows others to use an established brand
name?
e
A. Merger
.k
B. Corporate
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C. Venturing
D. Franchising (2 marks)
pi
13. Which of the following refers to a way of avoiding external financing through cost cutting?
ho
A. Crowdfunding
B. Microfinancing
C
C. Leasing
D. Bootstrapping (2 marks)
14. Choose a characteristic of management.

A. Intangible
B. Limited
C. Regional
D. Individual (2 marks)
15. Which of the following attributes enable a manager to exercise fairness to people?
A. Flexibility
B. Honesty
C. Tactful
D. Impartiality (2 marks)
16. Which of the following is a step in the planning process?

A. Monitoring performance and benchmarking
B. Arranging tasks and other resources
C. Setting goals and how to achieve them
D. Influencing employees to achieve goals (2 marks)
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17. Identify the composition of managerial information roles that facilitate them perform their functions.
A. Figure head, leader and resource allocation
B. Entrepreneur, negotiator and resource allocation
C. Monitoring, dissemination and spokesperson
D. Conflict handler, leader and entrepreneur (2 marks)
18. Which of the following is a role played by middle level managers?

A. Providing feedback
B. Determining vision
C. Setting policies
D. Strategic planning (2 marks)
19. Choose from the following a strategic level of management in an organisation.

A. Middle level
B. Lower level
C. Operational level
D. Top level (2 marks)
20. Which of the following is a top-level management role in an organisation?

A. Supervising of staff
B. Policy implementation
C. Determining the mission
D. Operational instructions (2 marks)
21. Which of the following shows business behaviour at maturity stage?

A. Business decline
ke
o.
B. Slow growth
i.c
op
C. High growth
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D. Low profits (2 marks)
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22. Identify a characteristic of innovative entrepreneurs.
A. Open to new ideas
B. Avoid carrying out research
C. Fear taking risks
D. Last to adopt to change (2 marks)
23. Why do entrepreneurs require to generate new ideas?

A. Increase competition
B. Promote business incubation
C. Ensure business is legal
D. Respond to market needs (2 marks)
24. Which of the following terms refer to a technique of stimulating creative ideas through group discussion?
A. Innovation
B. Facilitation
C. Brainstorming
D. Research (2 marks)
25. Identify the component that introduces the contents of a business plan.
A. Business description
B. Executive summary
C. Cover page
D. Appendix (2 marks)
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26. Choose a factor that could encourage entrepreneurs to start a sole proprietorship form of business.
A. Low start-up cost
B. No tax charged
C. Specialised management
D. Unlimited liability (2 marks)
27. Which of the following business entry option would be appropriate for an entrepreneur who wishes to maintain
business secrets?
A. Company
C. Franchise
D. Partnership (2 marks)
28. Why would an entrepreneur prefer a long-term loan over a short-term loan?
A. No collateral required
B. Lower monthly repayments
C. Shorter approval procedure
D. Easier to qualify for the loan (2 marks)
29. Jedida wishes to open a salon. Which of the following factors should she consider while choosing a location for
her business?
A. Nearness to competitors
B. Availability of raw materials
C. Accessibility to customers
D. Nearness to distributors (2 marks)
30.
e
Why would distribution channels be used by an entrepreneur as a source of new business ideas?
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A. They are the final consumers of products
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B. They are familiar with market needs
C. They are likely to generate more ideas
D. They are under the control of the entrepreneur (2 marks)
pi
31. Which of the following is an element of the extended marketing mix?

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A. Plan
B. Place
C
C. Profit
D. People (2 marks)
32. Which of the following is an objective of digital marketing?

A. Ensure use of technology
B. Create brand awareness
C. Comply with regulations
D. Reduce prices of goods (2 marks)
33. In the context of management functions, which of the following statement describes the term ‘leading’?
A. Assigning roles, tasks and responsibilities to employees
B. Setting procedures and policies and ways of attaining goals
C. Directing and motivating human resources towards a common goal
D. Determining strategies required to achieve long-term goals (2 marks)
34. The following are tasks undertaken by managers.

(i) Making routine day to day decisions
(ii) Coordinating interdepartmental activities
(iii) Determining the organisation’s vision and mission
(iv) Appointment of staff
(v) Solving employees’ disputes
(vi) Supervising operational employees
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Which of the following set represents tasks performed by lower-level management in an organisation?
A. (i), (ii), (vi)
B. (ii), (iii), (iv)
C. (i), (v), (vi)
D. (iv), (v), (vi) (2 marks)
35. Which management function ensures that performance of activities compares favourably with plans set for them?
A. Controlling
B. Organising
C. Delegation
36. What term refers to the management role of seeking and receiving information from external and internal sources?
A. Liaison role
B. Monitor role
C. Spokesperson
D. Disseminator (2 marks)
37. Identify an activity that could be undertaken by a manager as a resource allocator.

A. Negotiating
B. Budgeting
C. Motivating
D. Informing (2 marks)
38. Which of the following is an interpersonal skill of an effective manager?

A. Active listening
ke
o.
B. Goal achievement
i.c
op
C. Logical thinking
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w
D. Project management (2 marks)
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39. Which of the following is a purpose of sorting incoming mail?
A. Ensure mail is date-stamped
B. To ensure efficient opening of mail
C. Ensure delivery to the right recipient
D. Ensure that it has the correct address (2 marks)
40. Which of the following is an objective of filing business records?

A. Reduce the number of records stored
B. Ensure there are trained filing clerks
C. Use of alphabetical classification
D. Allow easy retrieval of records (2 marks)
41. Identify the style of leadership that always considers the decisions of a manager to be superior to that of
subordinates.
A. Democratic
B. Participative
C. Laissez-faire
D. Autocratic (2 marks)
42. Which of the following term refers to a desire and willingness of employees to achieve goals?
A. Orientation
B. Discipline
C. Motivation
D. Delegation (2 marks)
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43. Which of the following is included in a job description?
A. Skills and abilities
B. Employee’s qualifications
C. Emotional attributes
D. Tasks and responsibilities (2 marks)
44. Choose from the following a benefit that could accrue to an organisation from hiring competent employees?
A. Reduce safety risks and hazards
B. Enhance level of labour turnover
C. Increase time needed for orientation
D. Increase time taken to perform tasks (2 marks)
45. Identify the stage in a business growth when cash flow is likely to be negative.
A. Stabilisation
B. Start-up
C. Maturity
D. Growth (2 marks)
46. Which is the first step in staff recruitment?

A. Job application
B. Job advertisement
C. Job specification
D. Vacancy identification (2 marks)
47. Which of the following is an advantage of delegation of authority?

A. Enhance staff development
B. Increases layers of management
e
.k
C. Increases competition for resources
.co
D. Allows centralisation of power (2 marks)
48. What method of conflict management involves putting the needs of the other party ahead and letting them have
pi
their way?
A. Avoidance
ho
B. Accommodating
C. Collaborating
C
D. Compromising (2 marks)
49. Which is the first statutory requirement while setting up a business?

A. Acquiring a tax PIN
B. Registering a business name
C. Acquiring a business permit
D. Fire safety certification (2 marks)
50. Which of the following is a risk to health and safety of employees at the work place?
A. Wet floor
B. Manned gate
C. Unlocked door
D. Fire extinguishers (2 marks)
……………………………………………………………………………
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CAMS LEVEL I
MONDAY: 24 April 2023. Morning Paper. Time Allowed: 2 hours.
This paper is made up of fifty (50) Multiple Choice Questions. Answer ALL the questions by indicating the letter (A, B, C
OR D) that represents the correct answer. Each question is allocated two (2) marks. Do NOT write anything on this
paper.
1. Which of the following is a role played by entrepreneurs in your country?

A. Increase level of dependence
B. Enhance level of unemployment
C. Reduce foreign exchange
D. Provide government revenue (2 marks)
2. Which of the following could inhibit the development of an entrepreneurial culture?

A. Low cost of production
B. Government support
ke
C. Business incubation
o.
i.c
D. Restrictive customs (2 marks)
op
.ch
w
3. Which of the following is a characteristic of drone entrepreneurs?
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A. They like to buy ongoing businesses
B. Engage in research and innovative activities
C. Not ready to make changes in production methods
D. Have confidence in their inborn ability and talent (2 marks)
4. Which of the following is an advantage of venturing into business over seeking salaried employment?
A. More job satisfaction
B. Less responsibilities
C. Reduced decision-making
D. Certainty of earning income (2 marks)
5. From the following options, select the method used to promote intrapreneurship in business organisations.
A. Apply a rigid organisations structure
B. Observe strict compliance in operations
C. Apply firm budgetary rules and regulations
D. Allow freedom when executing duties (2 marks)
6. Which of the following statements explains the role played by social entrepreneurs?
A. Encourage firms generate super profits
B. Mobilise people to solve their problems
C. Provide services on a short-term contract
D. Give long-term service to private firms (2 marks)
7. Which component of the business plan describes the pricing strategy of a business?
A. Production plan
B. Financial plan
C. Marketing plan
D. Operational plan (2 marks)
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8. The following information is included in a business plan:
(i) Methods of product promotion
(ii) Business location
(iii) Background of the owner
(iv) Key personnel
(v) Production process
(vi) Products and services
Which of the following set represents information included in the business description section of a business plan.
A. (i), (iii), (iv)
B. (ii), (iii), (vi)
C. (iv), (v), (vi)
D. (iii), (v), (vi) (2 marks)
9. Which of the following is a disadvantage of running a partnership business?

A. Partners can personally be sued for business debts
B. There are complex legal formalities involved
C. There is sharing of risks among the partners
D. Partners have no direct control over the business (2 marks)
10. Which of following is a benefit that could accrue to a franchisee from a franchising arrangement?
A. Freedom of operation
B. More control of business
C. Reduced chances of failure
D. There is room for creativity (2 marks)
11. Which of the following is a challenge associated with business inheritance?

A. Poor location
B. Lack of space
e
.k
C. Lack of license
D. Family rivalries (2 marks)
.co
12. The following are sources of business finance:

(i) Business angels
pi
(ii) Debentures
ho
(iii) Microfinance funding

(iv) Share capital
(v) Personal finance
C
(vi) Bank overdraft
Which of the following set represents sources of debt capital?

A. (ii), (iii), (vi)
B. (i), (iv), (vi)
C. (ii), (iv), (v)
D. (iii), (iv), (vi) (2 marks)
13. Choose among the following a factor that an entrepreneur could consider while choosing a source of finance.
A. Competition
B. Cost
C. Durability
D. Market (2 marks)
14. Which of the following is a statutory requirement for all businesses?

A. Adequate capital
B. Skilled employees
C. Business permit
D. Business plan (2 marks)
15. Choose a method that government uses to promote entrepreneurship in the country.
A. Enforcing inhibiting business regulations
B. Restricting the movement of goods
C. Importation of goods in the country
D. Allowing an enabling business environment (2 marks)
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16. Which one of the following is the reason why entrepreneurs get into partnership form of business ownership?
A. To increase prices of the products
B. To benefit from business closure
C. To generate more business capital
D. To get higher business share value (2 marks)
17. Which of the following could hinder the ability to recognise a business opportunity?
A. Prior business experience
B. Business social networks
C. Entrepreneurial awareness
D. Inability to solve problems (2 marks)
18. Which one of the following is a benefit of brainstorming as a method of generating business ideas?
A. Many ideas are generated
B. Participants are criticised
C. Complex analytical reasoning
D. Moderator exercises partiality (2 marks)
19. Which among the following is a factor that distinguishes a partnership from sole proprietorship business?
A. Perpetual continuity
C. Limited owner’s control
D. Shared responsibilities (2 marks)
20. Which among the following is a benefit obtained by an entrepreneur who buys an ongoing business?
A. Ease of implementing change
B. Valuing stock acquired by owner
C. Fixed location for the business
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D. Established customers in business (2 marks)
o.
i.c
op
.ch
21. Which one of the following is the benefit of obtaining capital from a venture capitalist?
w
A. Low profitability and low returns
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w
B. An average working capital
C. Slow growth in the industry
D. Strong management support (2 marks)
22. Choose the term that refers to money provided by professionals in exchange for equity.
A. Loan capital
B. Crowd funding
C. Venture capital
D. Seed capital (2 marks)
23. Why is management important in any business organisation?

A. Act as the link between employees and trade unions
B. Ensure plans are not changed before implementation
C. Maintain stability of operations in the organisation
D. Limit the resources required by staff to accomplish goals (2 marks)
24. Which statement describes the activity involved in the leading function?
A. Evaluating performance
B. Allocating resources
C. Influencing people
D. Managing finances (2 marks)
25. Choose among the following, a strategy used by managers to retain customers.
A. Enhancing competition
B. Imitating services
C. Increased engagement
D. Product description (2 marks)
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26. Choose among the following, the statement describing the function of a cross-functional team.
A. Eliminate production strategies
B. Operational scheduling
C. Pursue a common objective
D. Analyse the job descriptions (2 marks)
27. Which of the following is a disadvantage of compromising method of conflict management?

A. Prolonged dispute
B. Reduces hostility
C. Escalates disagreement
D. Undermines quality (2 marks)
28. Which of the following statement could provide information for writing a job description?
A. Current employees holding the job
B. Advertisement of a vacant position
C. The top achiever in the organisation
D. Business reports and correspondence (2 marks)
29. Which one of the following is the common experience of a business at the maturity stage?
A. A business experiences a decline
B. A business experiences sales growth
C. A business experiences slow growth
D. A business experiences low profit (2 marks)
30. Choose the first stage in the rational decision making.

A. State the problem
B. Identify the problem
C. Evaluate a problem
D. Examine a problem
e (2 marks)
.k
31. Choose a factor that an entrepreneur could consider while choosing a business location.
.co
A. Space for expansion

B. High competition
pi
C. Business cycle
D. Cost of credit (2 marks)
ho
32. In the context of marketing mix, which of the following role is a played by distribution channels?
C
A. Production
B. Consumption
C. Transportation
D. Financing (2 marks)
33. Which of the following makes up the 4Ps of the marketing mix?
A. Price, People, place, profit
B. Place, product, profit, promotion
C. People, promotion, price, processes
D. Promotion, place, price, product (2 marks)
34. Why does a manager require interpersonal skills?

A. To operate machines
B. To motivate others
C. To establish structures
D. For office operations (2 marks)
35. Which of the following represents informational roles of a manager?

A. Figurehead, spokesman and liaison
B. Figurehead, liaison and leader
C. Negotiator, entrepreneur and monitor
D. Monitor, disseminator and spokesman (2 marks)
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36. Why is it important for the mailing clerk to check outgoing mail before dispatch?
A. Ensure mail is up to date
B. Ensure mail is properly filed
C. Confirm enclosure are attached
D. Stamp the mail with date and time (2 marks)
37. Which of the following determines postage charged on outgoing mail?

A. Recipient
B. Sender
C. Cost of stamp
D. Destination (2 marks)
38. Identify the role of using emails in customer service?

A. Provide customer support
B. Sending internal communication
C. Communicating business secrets
D. Discourage customer engagement (2 marks)
39. Which one of the following term refers to the process of finding or locating old data, documents or records?
A. Records retrieval
B. Filing of records
C. Records management
D. Electronic filing (2 marks)
40. Which of the following is a method that could be used to capture electronic data for filing?
A. Printing
B. Scanning
C. Sending
ke
D. Duplication (2 marks)
o.
i.c
op
.ch
41. Identify a mistake that could lead to poor hiring decisions in an organisation.
w
A. High percentage of staff turn-over
w
w
B. Lack of adequate leadership talent
C. Failure to encourage creativity by staff
D. Lack of evidence-based selection process (2 marks)
42. Which of the following could be a source of employee motivation?

A. Job analysis
B. Pay discrimination
C. Job enlargement
D. Employee discipline (2 marks)
43. Which of the following is a benefit of effectively managing organisational conflict?

A. Employee retention
B. Helps in self-defense
C. Allows quick victory
D. Strained work relations (2 marks)
44. Why should an organisation institute sound health and safety measures?
A. Monitor employees’ health
B. Identify risks and hazards
C. Ensure the gate is manned
D. Eliminate sick employees (2 marks)
45. Identify the function of top-level management in an organisation.

A. Supervise workers
B. Setting service lines
C. Allocation of duties
D. Set strategic goals (2 marks)
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46. Which of the following type of leadership could encourage creativity in an organisation?
A. Autocratic
B. Laissez-faire
C. Monocratic
D. Tyrannical (2 marks)
47. Choose a statement that explains the stabilisation stage of a business life cycle.
A. Involves expansion
B. Involves retrenchment
C. Involves mergers
D. Involves no change (2 marks)
48. Identify a reason why control is needed in an organisation.

A. To discover errors
B. To eliminate work
C. To check finances
D. To break rules (2 marks)
49. Which of the following is part of the organising function of management?

A. Forecasting
B. Coordination
C. Motivation
D. Monitoring (2 marks)
50. Identify a role performed by a supervisor in an organisation.

A. Assign tasks and responsibilities
B. Coordinate work of departments
C. Setting overall organisation goals
D. Appointment and transfer of staff
e (2 marks)
.k
……………………………………………………………………………
.co
pi
ho
C
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CAMS LEVEL I

MONDAY: 5 December 2022. Morning Paper. Time Allowed: 2 hours.
This paper is made up of fifty (50) Multiple Choice Questions. Answer ALL the questions by indicating the letter (A, B, C OR
D) that represents the correct answer. Do NOT write anything on this paper.
1. Which type of entrepreneur adopts to change only when it is important for survival?
A. Drone
B. Imitative
C. Fabian
D. Innovative (2 marks)
2. Select the statement that describes an intrapreneur.

A. A person who detects an untapped opportunity to make own income
B. A person who buys products at a certain price with a view to sell them at a higher price
C. An individual who brings factors of production together to start a business
D. An employee who uses entrepreneurial skills to generate profit for the venture (2 marks)
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o.
i.c
op
3. Which of the following is a role of entrepreneurship in economic development?
.ch
w
A. Reduce the level of exports in the country
w
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B. Promote balanced regional growth
C. Formulating favourable regulations
D. Providing an enabling environment (2 marks)
4. Choose a benefit attained by a country with high levels of entrepreneurial activity.

A. High levels of business formation
B. High levels of cyclical unemployment
C. High levels of business opportunities
D. High levels of government intervention (2 marks)
5. Which of the following is a characteristic of an executive summary in a business plan?

A. Summarises every chapter in the business plan.
B. Prepared first before all other components
C. Summarises the content of a marketing plan
D. Appears on the cover page of a business plan (2 marks)
6. Which of the following is a role of business incubation?

A. Generate business idea
B. Controlling business ideas
C. Enhance business success
D. Lower business capacity (2 marks)
7. Select the set of qualities that describes a good business opportunity.

A. Attractive, high gains, short cycle and minimal resources
B. Durable, abnormal profits, long cycle and unique market
C. Anchored on product, profitable, short cycle and timely
D. Attractive, durable, anchored on product and timely (2 marks)
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8. Choose the statement that describes a business idea.
A. A thought or impression that may or may not become an opportunity
B. A window of opportunity that meets the criteria for start-up
C. An opportunity that meets the needs and demands of customers
D. A notion containing factors that contribute to business success (2 marks)
9. Which business entry option could provide an entrepreneur exclusive rights to operate within a certain geographical
region?
A. Franchise
C. Company
D. Joint venture (2 marks)
10. Which of the following is a benefit of buying an existing business?

A. Enables partnering with existing owners
B. Helps to avoid challenges of running a business
C. Allows easy implementation of changes and innovation
D. Facilitates evaluation of business performance (2 marks)
11. Which of the following activity could an entrepreneur undertake before choosing a market entry strategy?
A. Acquire finances
B. Sales promotion
C. Product distribution
D. Market research (2 marks)
12. Select an advantage of running a sole proprietorship business.

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A. It is not easy to dissolve after registering
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B. It is very expensive to create the business
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C. Owner maintains complete control of it
D. The losses are redistributed by the owner (2 marks)
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13. What term is used to refer to collecting and analysing first hand data for decision making?
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A. Customer surveys
B. Primary research
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C. Windshield research
D. Industry research (2 marks)
14. Which of the following is a source of short-term finance?

A. Share capital
B. Equity finance
C. Trade credit
D. Debentures (2 marks)
15. Which of the following explains the meaning of retained earnings?

A. Unpaid interest
B. Profits earned
C. Undistributed dividends
D. Income from investment (2 marks)
16. Identify a service provided by microfinance institutions.

A. Business appraisal
B. Savings and credit
C. Business registration
D. Business identity (2 marks)
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17. Identify a factor that venture capitalists could consider before investing in a business.
A. Low profitability and low returns
B. An average working capital
C. Slow growth in the industry
D. Strong management team (2 marks)
18. Why is it important for an entrepreneur to choose a suitable business location?

A. Identify customer needs
B. Market proximity
C. Allow faster production
D. Reduce distribution of goods (2 marks)
19. Which of the following increases customer engagement with a business?

A. Customer analysis
B. Selling quality products
C. Use of technology
D. Hiring competent employees (2 marks)
20. Choose the benefit realised by embracing social media marketing.

A. The ability to obtain marketing financing
B. The ability to market business at low cost
C. The ability to borrow at low rates of interest
D. The ability to make market differentiation (2 marks)
21. What name is given to a person who accomplishes objectives by directing the efforts of other people?
A. Manager
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B. Entrepreneur
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C. Intrapreneur
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D. Director (2 marks)
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22. Which management function involves putting together required resources in order to execute plans?
A. Planning
B. Controlling
C. Staffing
23. Which of the following is an interpersonal role of a manager?

A. Monitoring role
B. Spokesperson role
C. Negotiation role
D. Liaison role (2 marks)
24. Identify a way in which a manager performs the leading function in an organisation.
A. Tasks and resources allocation
B. Monitoring and evaluating performance
C. Setting long and short-term goals
D. Motivating and influencing people (2 marks)
25. Which of the following is an objective of planning in the management process.

A. To ensure rational allocation of resources
B. To ensure quality control and assurance
C. To ensure the use of accurate standards
D. To ensure improvement is a priority (2 marks)
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26. Choose the role played by the top-level management in an organisation.
A. Design and implement policies
B. Set organisation schedules
C. Allocate operational resources
D. Formulate strategic goals (2 marks)
27. Which statement explains the meaning of leading as a function of management?

A. Responding to problems
B. Influencing behaviour
C. Forecasting future actions
D. Mobilising resourses (2 marks)
28. Which level of management is directly responsible to shareholders of a company?

A. Supervisory level
B. Middle level
C. Top level
D. Executory level (2 marks)
29. Which statement describes a job-specific knowledge needed to perform well in a specialised field?
A. Conceptual skills
B. Technical skills
C. Interpersonal roles
D. Decisional roles (2 marks)
30. Choose the first stage in the rational decision making.

A. State the problem
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B. Identify the problem
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C. Evaluate a problem
D. Examine a problem (2 marks)
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31. Which skills should a manager have to be able to deal objectively and fairly with subordinates?
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A. Communication
B. Delegation
C. Technical
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D. Interpersonal (2 marks)
32. What term is used to refer to a projected course of action?

A. Decision
B. Alternative
C. Report
D. Plan (2 marks)
33. Which skills does a manager require to understand the overall working of the organisation and its environment?
A. Strategic thinking skills
B. Leadership skills
D. Directing skills (2 marks)
34. Why is a retention policy important in ensuring a good filing system?

A. To prevent unauthorised access
B. Ensure it is simple to understand
C. Ensure removal of outdated records
D. Ensure the system is capable of expansion (2 marks)
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35. The following steps are involved in handling mail.
(i) Distribution
(ii) Receiving
(iii) Storage
(iv) Recording
(v) Sorting
Which of the following represents the correct order of handling incoming mail?
A. (ii), (v), (iv), (i), (iii)
B. (i), (ii), (iv), (v), (iii)
C. (ii), (iv), (v), (i), (iii)
D. (iii), (ii), (i), (v), (iv) (2 marks)
36. Which of the following is an advantage of microfilming as a method of storing information?

A. Saves on space
B. Easy to make corrections
C. Fast retrieval
D. It is minimised (2 marks)
37. Which of the following could lead to inefficient filing?

A. Use of electronic filing
B. Not allowing access to everyone
C. Regular filing of documents
D. Inappropriate classification (2 marks)
38. Select the characteristic exhibited by a democratic leader.
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A. Increases resistance to change
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B. Long channels of communication
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C. Decentralisation of authority
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D. Utilises downward communication (2 marks)
39. Which statement describes the meaning of job analysis in management?

A. Minimum qualifications a person must have to perform the job successfully
B. To determine by examining and observing the basic elements of a job
C. To draw an effective organisation structure for the organisation
D. Minimum academic requirements to perform a specific technical job (2 marks)
40. Which of the following is an advantage of internal recruitment in an organisation?

A. It inspires and motivates employees within the organisation
B. It gives the organisation a competitive advantage
C. It enhances the reputation of the organisation
D. It provides the required returns on human capital (2 marks)
41. Choose a conflict handling style that provides solutions that benefit all parties.
A. Accommodating
B. Collaborating
C. Compromising
D. Dominating (2 marks)
42. Which of the following could contain a job description and a job specification?
A. Application for a specialised job
B. Advertisement of a vacant position
C. Curriculum Vitae of a job applicant
D. Invitation to an employment interview (2 marks)
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43. Which of the following is a responsibility of an employee with relation to health and safety issues?
A. Create and distribute a health and safety policy
B. Provide a safe working environment
C. Make proper use of tools and machinery
D. Provide training on health and safety issues (2 marks)
44. Which of the following could affect employee retention in an organisation?

A. Number of employees
B. Size of organisation
C. Leadership style
D. Levels of management (2 marks)
45. What is the purpose of holding job interviews?

A. Selection of right employees
B. Orientation of new employees
C. Presenting certificates and testimonials
D. Human resource planning (2 marks)
46. Choose the statement that represents a growth strategy in a competitive business.
A. Expanding into new products and services
B. Changing the ongoing business strategy
C. Engaging in a rationalisation process
D. Phasing out some of product lines (2 marks)
47. Which of the following occurs at the stabilisation stage of a business life cycle?
A. Business expansion
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B. Employee retrenchment.
C. Business mergers
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D. Constant sales (2 marks)

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48. Which of the following is a demerit of a rapid growth in business?

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A. Reduced product quality

B. Over-stretched staff
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C. Market saturation
D. Constant productivity (2 marks)
49. Which of the following could be experienced at the maturity stage of a business life cycle?
A. Business decline
B. Sales growth
C. Slow growth
D. Low profit (2 marks)
50. At which stage of growth does a business experience negative cash flow?
A. Idea generation stage
B. Start-up stage
C. Stabilisation stage
D. Innovation stage (2 marks)
……………………………………………………………………………
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CAMS LEVEL I
PILOT PAPER
SECTION ONE
[40 MARKS] [40 MINUTES]
November 2021. Time Allowed: Two Hours
This paper has three sections. Section One has forty (40) multiple choice questions. Section Two has twenty (20)
short response questions. Section Three has one (1) essay question. All questions are compulsory. The marks
allocated to each question are shown at the end of the question.
1. Entrepreneurship may be defined as; (1 mark)
A. Starting a business enterprise

B. The process of undertaking business
C. Process of creating incremental wealth
D. Process of gathering resources.
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2. The entrepreneurial process of identifying and evaluating the business opportunity involves; (1 mark)
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A. Writing a business proposal plan
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B. Scanning the business environment
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C. Seeking business finances
D. Registering the business name.
3. The harvesting stage of the entrepreneurial process involves: (1 mark)

A. Writing a business analysis report
B. Consulting an entrepreneur
C. Choosing an exit strategy
D. Getting a return on investment.
4. Corporate entrepreneurship may be defined as; (1 mark)
A. Changing an organisation set up

B. Re-structuring the organisation’s management structure
C. Engaging in external marketing in unique ways
D. Entrepreneurship within an existing organisation.
5. Well established organisations can promote Intrapreneurship by; (1 mark)
A. Establishing rigid management organisation structures

B. Applying a long and complex organisation structure
C. Providing a working environment
D. Penalising project and product failures.
6. Social entrepreneurship is a form of entrepreneurship that; (1 mark)
A. Focuses on social environments

B. Encourages individuals to make profits in an innovative way
C. Supplies goods and services to the society
D. Tackles social challenges in an innovative way.
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7. Entrepreneurship contributes to economic growth of the country through: (1 mark)
A. Discussions and reports about the economy.
B. Widening the economic gap in the country.
C. Creation of high growth enterprises.
D. Working on the country’s economic policies.
8. Select the major characteristic of an entrepreneurial firm; (1 mark)

A. Continuous production of goods and services
B. Bringing new products and services to the market
C. It is a lifestyle firm
D. Operated by individuals who are motivated by money.
9. The corporate entrepreneurship strategy process is composed of: (1 mark)

A. External environment conditions
B. Innovative strategic vision
C. Competitive capability
D. Strategic repositioning.
10. Select one principle applied by successful innovative companies. (1 mark)

A. A broad organisational vision
B. Use of a single management approach
C. Small, flat organizational structure with small project teams.
D. A complex market approach.
11. Select a common source of entrepreneurial stress. (1 mark)
A. Environmental stress
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B. Business cycles
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C. Political environment
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D. Need to achieve.
12. Entrepreneurs enhance their business networks in order to; (1 mark)
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A. Increase prices of the products and services.

B. Become popular
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C. To grow their businesses

D. Earn higher returns in their investments.
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13. An entrepreneur may be best defined as; (1 mark)

A. Young and energetic
B. Gamblers who take big risks
C. A catalyst for economic growth
D. Genetically predisposed to be successful.
14. Identify one characteristic associated with entrepreneurial ego that may have destructive implications on the
business. (1 mark)
A. Sense of trust
B. Desire for success
C. Overbearing need for control
D. Unrealistic pessimism.
15. Identify one characteristic not exhibited by successful entrepreneurs in general. (1 mark)
A. Independence
B. Reactive
C. Ambitious
D. Flexible.
16. Which of the following manifest needs was not proposed by McClelland. (1 mark)
A. Need for affiliation
B. Need for affection
C. Need for power
D. Need for achievement.
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17. Identify the entrepreneurial motivator that is not classified under compelling factors. (1 mark)
A. Unemployment
B. Self-actualisation
C. Dissatisfaction with job
D. Utilisation of knowledge and skills.
18. Choose one characteristic exhibited by an entrepreneur that may have positive implications to the businesses.
(1 mark)
A. Sense of trust
B. Overriding desire for success
C. Overbearing need for control
D. Unrealistic optimism.
19. Select the theory that is not classified as an entrepreneurship theory. (1 mark)
A. Economic theories
B. Psychological theories
C. Stakeholders’ theories
D. Sociological theories.
20. Based on Schumpeterian theory of entrepreneurship; innovation is defined as; (1 mark)
A. Coming up with new ideas

B. New products and services
C. Technical work of invention
D. Application of new things into practical and efficient use.
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21. Entrepreneurship sociological theories are based on; (1 mark)
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A. Political values
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B. Socio-cultural values
C. Environmental considerations
D. Technological development.
22. Select one factor not considered under the Integrative approach to entrepreneurship. (1 mark)
A. The organisation
B. The environmental opportunities
C. The individual entrepreneur
D. The financial and nonfinancial resources.
23. Identify the quality that does not define a viable business opportunity. (1 mark)
A. Durability
B. Timeliness
C. An idea/thought
D. Attractiveness.
24. Select the factor that does not contribute to the recognition of a business opportunity. (1 mark)
A. Observing trends
B. Solving a problem
C. Finding gaps in the market place
D. Social discrimination and exclusion.
25. Identify the personal characteristic that may hinder business opportunity recognition. (1 mark)
A. Prior business experience
B. Business social networks
C. Entrepreneurial awareness
D. Inability to solve problems.
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26. Select a rule that is not observed when conducting a formal brainstorming session. (1 mark)
A. No criticism is allowed
B. Freewheeling
C. Detailed analytical reasoning
D. Leapfrogging.
27. Choose the behaviour that encourages creativity. (1 mark)
A. Rigid organisational structure

B. Investing in human resource
C. Retaining employees in same job
D. Penalising failed ideas.
28. Identify the behaviour that discourages creativity. (1 mark)
A. Listening actively
B. Being pessimistic, judgmental and critical
C. Protecting honest mistakes when learning
D. Treating employees as equals.
29. Select an environmental trend that does not suggest business or product gaps. (1 mark)
A. Technological advances
B. Economic forces
C. Political instability
D. Social forces.
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30. Entrepreneurs choose business opportunities which have the qualities shown below. Select the quality that
entrepreneurs may not consider. (1 mark)
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A. Opportunity that adds value to customers

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B. An open window of opportunity

C. Timeliness of the opportunity
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D. Diversified market.
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31. A business plan may be defined as; (1 mark)
A. An entrepreneur’s expression of interest

B. A list of business ideas
C. Entrepreneurs’ diary of business activities
D. A document on proposed venture.
32. Identify a private form of business organisation from the list below. (1 mark)
A. Partnerships
B. Cooperatives
C. Public social benefits organisations
D. Savings and loans cooperative societies.
33. Select the main disadvantage of a public limited company. (1 mark)
A. Unlimited liability
B. Loss of direct control by the shareholders
C. Responsibilities and risks are shared on agreed proportions
D. Possibility of raising large sums of money.
34. Identify the major difference between sole proprietorship and partnerships. (1 mark)
A. Perpetual continuity of business

C. Full control of the business by the owners
D. Shared responsibilities.
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35. Identify the document that is presented to the registrar of companies during registration of a company.
(1 mark)
A. Audited financial statements
B. Memorandum of Association
C. A deed
D. An environmental audit reports.
36. Identify a major similarity between a general partnership and a private limited company. (1 mark)
A. Unlimited liability
B. Continuity of business
C. Low liquidity of investment
D. Management control.
37. Select the main function of the articles of association. (1 mark)
A. State the liability of members

B. Show the objectives of the company
C. Guide the internal management of company
D. Provide a list of directors.
38. Identify the main purpose of a memorandum of association. (1 mark)
A. Show the list of shares offered

B. Show the class and rights of shareholders
C. Show the company’s broad objectives
D. State the qualifications and duties of the directors.
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39. Select the circumstance in which a sole proprietorship is regarded as a favorable form of ownership.,
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(1 mark)
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A. Where owner prefers autonomy
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B. Where promptness is not required in decision making
C. Where personal attention is not an important aspect of business relationship
D. Where the market is broad and requires large capital investment.
40. Partnership deed may be defined as; (1 mark)
A. A document of capital appropriation

B. Articles of partnership stipulating the internal workings of the business
C. Document that allows transfer of shares
D. Document of transfer of assets.
(Total: 40 marks)
SECTION TWO
[40 MARKS] [1 HOUR]
You are advised not to exceed forty words in answering each question.
41. List two bootstrapping methods a start up restaurant business can utilise to ensure business success.
(2 marks)
42. Define the term “venture capital”. (2 marks)
43. Explain the term “window of opportunity”. (2 marks)
44. Suggest two primary reasons why people become entrepreneurs. (2 marks)
45. Distinguish between creativity and innovation in entrepreneurship. (2 marks)
46. Define the term “corridor principle”. (2 marks)
47. Explain two reasons why corridor principle supports the fact that majority of business ideas are conceived at
work. (2 marks)
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48. Giving two examples, explain how “solving a problem” can create a business opportunity”. (2 marks)
49. Identify two areas that a properly executed feasibility analysis explores. (2 marks)
50. Identify two challenges faced by an entrepreneur at the start up stage of the business. (2 marks)
51. Distinguish between a product franchise and a business format franchise. (2 marks)
52. Identify two benefits that accrue to an accounting firm that operates in form of a partnership. (2 marks)
53. Highlight two qualities to look for in a prospective Franchisee. (2 marks)
54. Explain how a manager can promote intrapreneurship. (2 marks)
55. Describe two qualities of an opportunistic entrepreneur. (2 marks)
56. Explain the challenges a prospective entrepreneur experiences at the idea generation stage. (2 marks)
57. Describe two factors that an entrepreneur whose business is at the stabilisation stage of business life cycle can
consider in order to grow. (2 marks)
58. Explain the characteristics of a business that is in the decline stage of business life cycle. (2 marks)
59. Explain two innovative strategies an entrepreneur may consider to apply at the business decline stage of
business life cycle. (2 marks)
60. Explain the meaning of “generation of a new entry opportunity”. (2 marks)
(Total: 40 marks)
SECTION THREE
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[20 MARKS] [20 MINUTES]
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61. Bizz game is the brainchild of four trainees in accounting who want to spark student’s interest in running a
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business. Their aim is to create a social enterprise that will help promote youth entrepreneurship more widely.
In 2020, the team launched Bizzgame, an interactive business simulation game. Players increase their
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company’s valuation through strategic decisions on buying goods, marketing, sales development and logistics
management.
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Students were initially reluctant to take up the challenge but several months of further trial and enhancements
saw the game popularity increase among other trainees. Bizz game is gaining a following in the educational
C
establishments across the country. The take-up has been enhanced by a series of Bizz game Youth challenge
competitions. Although Bizz game has an appeal among consumers as the “new board game in town” the team
has stuck to its original plan of promoting youth entrepreneurship. An online portal for training institutions
and even a computer game version is being developed.
Required:
(a) Define the term “social enterprise”. (2 marks)
(b) Give two reasons that could have made the trainees come up with the idea of “Bizzgame”. (2 marks)
(c) List three benefits of running Bizzgame as a social enterprise. (3 marks)
(d) State three methods that the team can use to promote Bizzgame in other training institutions.
(3 marks)
(e) Give five challenges that the four undergraduates are likely to encounter as they promote the
Bizzgame.
(5 marks)
(f) Explain three objectives achieved through playing the Bizzgame. (3 marks)
(g) Explain the plan that the four trainees have for the growth of Bizzgame. (2 marks)
(Total: 20 marks)
……….………………………………………………………………….
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CAMS LEVEL I

MONDAY: 1 August 2022. Morning paper. Time Allowed: 2 hours.
This paper is made up of fifty (50) Multiple Choice Questions. Answer ALL the questions by indicating the letter (A, B, C
or D) that represents the correct answer. Do NOT write anything on this paper.
1. What name is given to the type of entrepreneurship that involves identifying a promising business and taking the
initiative to acquire it?
A. Researcher
B. Hustler
C. Buyer
D. Innovative (2 mark)
2. ________________ is an indicator of a good business idea.

A. High competition
B. Good market scope
C. More resource requirement
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D. High government revenue (2 mark)
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3. What is the name given to the process of building a business with minimal or no extra capital?
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A. Informal financing
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B. Micro financing
C. Bootstrapping
D. Crowd funding (2 mark)
4. Which of the following is NOT a factor that an entrepreneur could consider while choosing a business location?
A. Entrepreneur’s skills
B. Security
C. Potential for growth
D. Accessibility (2 marks)
5. Intrapreneurship also refers to___________________________?

A. Corporate entrepreneurship
B. Internal entrepreneurship
C. Business entrepreneurship
D. Innovative entrepreneurship (2 marks)
6. Which one of the following is a challenge faced by entrepreneurs in your country.

A. Low interest rates
B. Unregulated competition
C. Supportive government policies
D. Lack of employment (2 marks)
7. _________________ is a method of generating new ideas using suggested problems of known products.
A. Brainstorming problems
B. Focus groups problem solving method
C. Creative problem solving
D. Problem inventory analysis (2 marks)
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8. Why would an entrepreneur opt to buy an existing business instead of starting a new one?
A. Lower cost of starting a business
B. Ability to introduce a new product
C. Established relationship with suppliers
D. Support is assured by previous owners (2 marks)
9. Which of the following is a limitation of equity finance?

A. Loss of control
B. Lack of credit worthiness
C. Money has to be repaid back
D. High interest rates (2 marks)
10. What term is used to refer to all permits and licences that one must obtain before being allowed to operate a
business in your country?
A. Government requirements
B. Statutory requirements
C. Government policy
D. Business requirements (2 marks)
11. Which of the following statements is NOT true about an entrepreneur?

A. Is a catalyst of economic change.
B. Identifies a business opportunity.
C. Takes calculated risks.
D. Success depends on luck. (2 marks)
12. Which of the following is NOT a factor to consider while choosing a business incubator?
A. Success rate.
B. Quality of services.
C. Availability of market.
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D. Policies and procedures. (2 marks)
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13. The following are the benefits that a franchisee gains from a franchisor EXCEPT?
A. Training.
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B. Brand name.
C. Product or service.
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D. Profit guarantee. (2 marks)

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14. Venture capital is a source of ____________________ finance.

A. Debt
B. Equity
C. Personal
D. Micro (2 marks)
15. Which of the following is NOT a reason for ensuring customer satisfaction?
A. Customer attraction
B. Customer experience
C. Customer retention
D. Customers to do one time purchase (2 marks)
16. Which of the following statements is TRUE about an imitating entrepreneur?

A. They learn from mistakes of others to make their products and services better
B. They start small and grow their business with hard work rather than capital
C. They do as much research as possible before launching a product or service in the market
D. They constantly come up with new ideas and turn them into profitable ventures (2 marks)
17. Why is it important to carry out competitors’ analysis while writing a business plan?
A. To evaluate the size of their businesses
B. To know what kind of product they sell
C. To determine their tastes and preferences
D. To determine their strengths and weaknesses (2 marks)
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18. ________________ is a person who initiates, creates and manages a new business.
A. A leader
B. A professional
C. An entrepreneur
D. A manager (2 marks)
19. Which type of entrepreneur utilises a chance to introduce a new technique or a new product?
A. Fabian entrepreneurs
B. Innovative entrepreneurs
C. Researchers
D. Businessmen (2 marks)
20. Which of the following behaviour, is not associated with successful entrepreneur?
A. Continuous innovation and urgency
B. Production as per customers’ requirements
C. Research and development
D. Running the business without planning (2 marks)
21. Which of the following is NOT a source of ideas for an entrepreneur?

A. Imported products
B. Emerging technologies
C. Cost of the project
D. Product profile (2 marks)
22. A business plan is important for all of the following reasons EXCEPT?
A. It enables the business owners to systematically think through each aspect of the new venture.
B. It gives an assurance to lenders and investors that they will earn a decent return.
C. It is a selling document that enables a company to present itself to potential suppliers and business partners.
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D. It provides an investor with something to react to (2 marks)
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i.c
op
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23. Which of the following is NOT a characteristic of entrepreneur?
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A. Managerial training
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B. Creativity
C. Innovation
D. Risk taking (2 marks)
24. Which of the following statements BEST describes the term leadership?
A. Managing human resources
B. Monitoring performance
C. Getting things done through people
D. Influencing the behavior of others (2 marks)
25. What stages of the business life cycle are sales the lowest?
A. Innovation
B. Stabilisation
C. Idea generation
D. Start-up (2 marks)
26. What name is given to the role of a manager that involves dealing with people outside the organisation?
A. Monitor role
B. Entrepreneurial role
C. Liaison role
D. Figurehead role (2 marks)
27. Identify the MAIN reason why planning is important in an organisation.

A. Helps in specialisation
B. Defines the organisation structure
C. Gives a sense of direction
D. Helps in training new employees (2 marks)
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28. Which level of management makes up the smallest group of managers in an organisation?
A. Top level
B. Middle level
C. Intermediate level
D. Lower level (2 marks)
29. Which management skills would a manager require MOST while resolving conflict among employees?
A. Conceptual skills
B. Interpersonal skills
C. Strategic thinking skills
D. Delegation skills (2 marks)
30. Identify the MAIN challenge that an organisation could face in the process of recruiting suitable employees?
A. Inability to attract the right candidates
B. Inappropriate media to advertise vacancies
C. Lack of an interview panel
D. Failure to induct employees (2 marks)
31. Which of the following is a purpose of the organising function of management?

A. Facilitate coordination
B. Set goals
C. Performance appraisal
D. Motivate staff (2 marks)
32. Who among the following is NOT an operational level manager?

A. Foreman
B. Supervisor
C. Chief Executive Officer
D. Superintendent
e (2 marks)
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33. Identify the skills a manager would require to choose amongst alternative courses of action.
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A. Leadership skills
B. Communication skills
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C. Operating skills
D. Decision-making skills (2 marks)
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34. Which of the following is not a challenge for an entrepreneur?

A. Choosing the product or service to sell in the market
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B. Managing the cash flow of their business

C. Recruiting new employees
D. Formulating rules and regulations relating to conducting entrepreneurship in their country (2 marks)
35. Who should prepare a firm’s business plan?

A. Entrepreneur
B. Accountant
C. Engineer
D. Marketer (2 marks)
36. What is the name given to the process of creating something new?
A. Management
B. Business
C. Creative flexibility
D. Innovation (2 marks)
37. What is the purpose of a feasibility study while preparing to start a new venture?
A. Estimate sales
B. Exploring for potential customers
C. To understand if there are any barriers to success
D. To market the products (2 marks)
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38. What are the three interpersonal roles of managers?
A. Figurehead, organiser and spokesman
B. Communicator, organiser and spokesman
C. Director, coordinator and disseminator
D. Spokesman, leader and coordinator (2 marks)
39. Which of the following is NOT a recognised skill of management?

A. Technical skills
B. Writing skills
D. Human skills (2 marks)
40. What is the name given to the management function that involves determining whether the quality of work is up
to standard?
A. Leading
B. Controlling
C. Organising
D. Planning (2 marks)
41. When would cross referencing be important while filing office documents?
A. When there are so many records to be filed.
B. In case documents require frequent retrieval
C. To keep documents away from unauthorised users
D. In case a document can be filed under more than one heading (2 marks)
42. The following are components of a job description and a job specification:
(i) Job title
(ii) Working environment
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(iii) Education and training
o.
(iv) Tasks to be performed
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(v) Skills
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(vi) Personality
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Which of the following sets relate to a job specification?
A. (ii), (v), (vi)
B. (iii), (v), (vi)
C. (i), (iii), (v)
D. (i), (ii), (iv) (2 marks)
43. Management skills applies to managers at which level?

A. All levels in an organisation
B. Top level in an organisation
C. Executive level in an organisation
D. Middle level in an organisation (2 marks)
44. Which management function entails grouping of jobs?

A. Controlling
B. Planning
C. Organising
D. Directing (2 marks)
45. Which type of decision making is carried out by lower level management and deals with specific daily tasks?
A. Mid-level decision making
B. Administrative decision making
C. Operational decision making
D. Programmed decision making (2 marks)
46. What is the goal of an entrepreneur during the start-up stage of a business lifecycle?
A. Enhance competitive edge
B. Growth
C. Survive
D. Enhance reputation (2 marks)
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47. Which of the following is a benefit of electronic filing systems?
A. Viruses can attack the computer
B. Staff training is needed
C. Staff need specialised training to use the system
D. It reduces the number of staff that must be hired to manage records (2 marks)
48. Which of the following is not an important aspect of employee involvement?

A. Employee empowerment
B. Teamwork
C. Keeping employee morale down
D. Employee motivation (2 marks)
49. Which of the following is a positive outcome of conflict?

A. Stimulates creativity
B. Strains relationships
C. Promotes resistance
D. Encourages poor performance (2 marks)
50. Which of the following is NOT an intervention that management could put in place to prevent health related
issues in an organisation?
A. Proper furniture
B. Adequate stationery
C. Ventilation
D. Noise control (2 marks)
……………………………………………………………………………
e
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pi
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C
CM11 Page 6
Out of 6

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CAMS LEVEL I

PRINCIPLES OF ENTREPRENEURSHIP AND MANAGEMENT

MONDAY: 19 August 2024. Morning Paper. Time Allowed: 2 hours.

1. Which one of the following is a characteristic of small-scale entrepreneurs?

2. Entrepreneurs could contribute to balanced regional development in the country by ____________________.

5. Mwarimbo Jones is a commercial poultry farmer located in a rural setting.

B. Legal form of business

D. Personal competencies (2 marks)

18. Which one of the following is a characteristic of equity finance?

22. Business permits are issued by_________________________.

24. Which one of the following could be an outcome of customer satisfaction?

36. Which one of the following represents types of plans?

43. Which one of the following statements describes visionary leaders?

B. Addressing the increasing customer demand

D. Deciding on the form of business ownership (2 marks)

PRINCIPLES OF ENTREPRENEURSHIP AND MANAGEMENT

MONDAY: 22 April 2024. Morning Paper. Time Allowed: 2 hours.

2. Which one of the following challenges is associated with entrepreneurship?

4. Which of the following factors could motivate an individual to become an entrepreneur?

6. Identify the statement that describes an entrepreneur as a risk-taker.

C. Public limited company

14. Choose a characteristic displayed by a partnership form of business ownership.

A. Enjoy perpetual succession

16. Choose a disadvantage of obtaining debt financing for business growth.

29. Which of the following is an aim of controlling as a management function?

30. Why would an organisation prefer using an electronic filing system?

31. Which one of the following is a feature of leadership?

40. Which of the following management roles focuses on interpersonal contact?

44. Identify a limitation of using monetary rewards to motivate employees.

49. Identify the key purpose of stamping inward mail.

PRINCIPLES OF ENTREPRENEURSHIP AND MANAGEMENT

MONDAY: 4 December 2023. Morning Paper. Time Allowed: 2 hours.

1. Which of the following is a reward for entrepreneurship?

2. Identify a challenge faced by entrepreneurs when setting up a business.

4. Choose a characteristic of an entrepreneurial venture from the following:

5. Choose a reason why government encourages the setting up of small businesses.

9. Which of the following is a characteristic of an executive summary of a business plan?

10. Which of the following is a role of business incubation?

16. Identify a quality considered by commercial banks when lending to an entrepreneur.

32. Which of the following roles is played by a manager as a figure head?

34. Select a function performed by lower-level managers.

40. Identify a reason why motivation is important in an organisation.

44. Select a way in which conflict could be prevented in an organisation.

45. Which of the following could be a positive consequence of conflict in an organisation?

49. Identify a source of a firm’s decline in performance and eventual closure.

PRINCIPLES OF ENTREPRENEURSHIP AND MANAGEMENT

MONDAY: 21 August 2023. Morning Paper. Time Allowed: 2 hours.

1. Which of the following indicates behaviours commonly displayed by successful entrepreneurs?

2. Choose an entrepreneur who duplicates technological innovations in the market.

4. Which of the following describes a business idea?

5. Identify the role played by a social entrepreneur in the country.

6. Which of the following is used by government to promote entrepreneurship?

7. Which of the following is a benefit of writing a good business plan?

9. Choose a limitation of a partnership business organisation.

10. Choose a factor considered when choosing a business entry option.

14. Choose a characteristic of management.

16. Which of the following is a step in the planning process?

18. Which of the following is a role played by middle level managers?

19. Choose from the following a strategic level of management in an organisation.