SECTION B
Answer ANY TWO Questions from this section.
QUESTION 1
A) What is franchising? [2 Marks]
B) One of the easiest ways to start up a venture is by franchising.
With relevant examples, explain the following types of franchising:
i) Trade name franchising [2 Marks]
ii) Product distribution franchising [2 Marks]
iii) Comprehensive franchising [2 Marks]
C) Discuss the basic elements of the marketing mix and its relevance to attracting and retaining loyal customers. [12 Marks]
QUESTION 2
A) Credit worthiness is very important when it comes to securing short term sources of finance. Explain five factors that is considered in assessing creditworthiness. [10 Marks]
B) Financial ratios enable analysts to make a comparison of a company’s financial condition overtime or in relation to other firms. Analyse the following financial ratios:
i) Profitability ratios [2 Marks]
ii) Solvency ratios [2 Marks]
iii) Investment ratios [2 Marks]
iv) Efficiency ratio [2 Marks]
v) Liquidity ratio [2 Marks]
QUESTION 3
A) It is always recommended that the appropriate sources of finance are sourced considering the stage of a business. State four sources of finances available to a start-up. [4 Marks]
B) Venture Capital Trust Fund provides low cost financing to businesses so that they can grow, create wealth and jobs. State and explain any four requirements small businesses need to meet before accessing such funds. [8 Marks]
C) Identify and explain the four C’s Model for evaluating human resources that aims to develop creative solutions to human resource problems. [8 Marks]
QUESTION 4
A) The pre-start up and the start-up phases of a new venture are the critical segment for the entrepreneur. State and explain two factors that are critical during these two phases. [4 Marks]
B) The success of a new venture depends on a comprehensive business plan. Explain four reasons why a business plan may fail. [8 Marks]
C) Identify and explain four causes for a new venture failure. [8 Marks]
