BUSINESS STUDIES – TOPICAL EXAMINATION

CHAPTER 04: BUSINESS OPPORTUNITY IDENTIFICATION

FORM TWO

Time: 1:30 Hours

INSTRUCTIONS

1. Answer all questions in Sections A, B and C.
2. Choose the correct answer for each multiple choice question.
3. Write your answers clearly and neatly.

SECTION A: 15 MARKS

1. MULTIPLE CHOICE QUESTIONS

Choose the correct answer from the alternatives given.

(i) What is a business opportunity?

1. Creating goods or services that people need or want
2. A way of spending money without earning profit
3. A method of avoiding customers
4. A way of avoiding business activities

(ii) A business opportunity mainly arises from:

1. Unmet community needs and wants
2. Avoiding changes in consumer demand
3. Ignoring technological advancements
4. Reducing the quality of goods and services

(iii) Which one of the following is an importance of identifying business opportunities?

1. Increasing unemployment
2. Job creation
3. Discouraging creativity
4. Increasing community problems

(iv) Which of the following is one of the POUR steps used to identify business opportunities?

1. Finding your passions
2. Borrowing money
3. Employing workers
4. Buying business premises

(v) Observing your surroundings enables an entrepreneur to identify:

1. Unmet needs and challenges
2. Personal bank accounts
3. Employees' salaries
4. Government offices

(vi) Using your network can help an entrepreneur to obtain information about:

1. Customer needs and market trends
2. School examination results
3. Personal family secrets
4. Weather conditions only

(vii) Which market research tool involves developing questionnaires?

1. Survey
2. Networking
3. Observation
4. Business pitching

(viii) Which of the following is recommended when conducting interviews?

1. Asking open-ended questions
2. Avoiding follow-up questions
3. Ignoring people's responses
4. Asking questions unrelated to the research

(ix) Market research helps an entrepreneur to determine:

1. Customer preferences and buying habits
2. Only personal interests
3. School attendance patterns
4. Employees' family relationships

(x) Studying competitors can help an entrepreneur to identify:

1. Gaps and challenges in the market
2. Personal hobbies
3. School rules
4. Family relationships

2. MATCHING ITEMS

Match the items in List A with the corresponding answers in List B.

SECTION B: SHORT ANSWER QUESTIONS

3. Define the term business opportunity.

4. Mention five importance of identifying business opportunities.

5. State the four steps of identifying business opportunities represented by the acronym POUR.

6. Explain briefly what is meant by each of the following:

1. Finding your passions
2. Observing your surroundings
3. Using your network
4. Market research

7. Mention five questions that can help an entrepreneur to identify his or her passions, strengths, talents, values and curiosity.

8. Mention three basic market research tools used by small business entrepreneurs.

SECTION C: STRUCTURED QUESTIONS OR ESSAY

9. A student notices that many students in her school have difficulty obtaining healthy meals during break time.

(a) Identify the business opportunity presented by this situation.

(b) Give three reasons why the opportunity could be useful to the school community.

(c) Mention two methods the student could use to conduct market research before starting the business.

10. Rehema notices that there are many plastic bottles in her neighbourhood. She is passionate about protecting the environment and wants to find out whether recycled shopping bags could be made and sold.

1. Explain four steps Rehema should follow when identifying this business opportunity.
2. Mention three groups of people she could interview.
3. Suggest three questions she could ask during the interviews.

11. Explain five ways in which identifying business opportunities can benefit a community.

12. Discuss five ways in which market research can help an entrepreneur to identify a viable business opportunity.