UNIVERSITI TEKNOLOGI MARA

MID TERM EXAMINATION

COURSE : FUNDAMENTALS OF ENTREPRENEURSHIP
COURSE CODE : ENT/ETR300
INSTRUCTIONS TO CANDIDATES
This question paper consists of
PART C : 4 questions (5 marks each)
PART D : 2 questions (20 marks each)
ANSWER ALL QUESTIONS.
PART C:
QUESTION 1 (CO1-LO1) (5 marks)
Differentiate between entrepreneur and entrepreneurship.
Entrepreneurs:
People who have business or company which is form by themselves from
the beginning.
They handle the business or company by themselves.
This business or company is belongs to them until they die and become
their prosperity unless, they pass it to another people.
Entrepreneurship
Is about innovation of things that already present.
This new product after innovation is called a new venture creature.
This new venture creature based on for major dimensions such as
individual, organizational, environmental and process.
Link with networks in government, education and institutions.

QUESTION 2 (CO1-LO1) (5 marks)

List any five (5) ethical behavior of Muslim Entrepreneurship.
Based on integration
Based on ibadah
Based on system
Based on guidelines
Based on human nature

QUESTION 3 (CO1-LO1) (5 marks)

Financing is needed by entrepreneur for sustainability and development of
business. Identify five (5) types of financing.

By soft loan which is borrow just half or from the real amount needed
and the balance they use their own money.
By grants which is more like sponsorship. (biasiswa)
By equity financing.
By venture capital.
By tax incentives.

QUESTION 4 (CO2-LO2) (5 marks)

List various classification of blockages to creativity.

Blocks of perceptual which is always use the same or mainstream idea

and does not do brainstorming to think out of the blue.
Blocks of emotional which is full of fears and think in negative way that
what they do is never good enough.
Blocks of cultural which is only follow the tradition and proceed with what
they have without any intention to do something out of their comfort zone.
Blocks of environmental which is come from the environment where ideas
are great but do not have money and no one good to sell the ideas to
make it real.
Blocks of intellectual or conceptual which is too lazy to find solution for
every problems and just simply answer I dont know when asked by
others.

PART D:
QUESTION 1 (CO2-LO2) (20 marks)
Explain five (5) differences between a sole proprietorship and a private limited
company.
Sole proprietorship:
This form of business must be register under the Business Act 1956
(Amendment 1978)
Need small amount of capital and the business activity is limited based on
that amout.

The owner of this form of business is responsible to do all task by himself,

need to sacrifice his own time and need to put more efforts to manage this
business.
Since this solely owned by one person, all the assets will put under his
name and profit will go to him.
When the owner is die or the owner fail to manage his business well, the
business is over unless the business is re-registered.
If the business have debts and the business assets are not sufficient to
cover, the owner need to sacrifice all his personal assets to save the
business.

Private limited company:

This form of business must be register under the Companies Act 1965.
Need large amount of capital to start the business and the business
activity is limitless.
This company consists of many members but not exceed 50 members so
when it comes to task, all will be divided based on their position in
company.
A company has a specific right and responsibility, can take legal action
and face legal action under its name so all assets can acquire under its
own name and profits will go to the company.
The company is not affected by the resignation or death of the members.
It the company have debts, it will use affect all the total shares that
contributed to the companys capital without affecting any members
personal assets but it is not sufficient to cover, the company will declare
bankrupt.

QUESTION 2 (CO3- LO8) (20 marks)

1) Explain the process or steps to developing a financial plan.
i. Collect all financial inputs:

ii.

As for the financial input, collect all the information needed by

accumulate the financial information from marketing, operations
and organizational plans.
Marketing manager and operation manager must present their plan
in the form of operating budgets before hands it on to the financial
manager.
Financial manager will use the operating budgets given to prepare
the financial budget.

Determination of the project implementation cost:

iii.

iv.

v.

Count in both long-term and short term expenditure.

Long term expenditure consists of the fixed assets that will be used
by the business in long term such as machinery.
Short term expenditure is a required working capital just to operate
the daily operation until gets its first sale.
Determination of the sources of finance:
Source where any particular business or company get their money.
Can be divide into two categories which is internal and external
sources.
Internal sources means cash or assets that contributed by
entrepreneurs.
External sources means loan from any commercial banks.
Preparation of the pro forma cash flow statement:
Normally prepared for three consecutive years (by month for the
first year and by year for the second and third years.)
Must show the cash inflows, cash outflows, cash deficit or surplus
and cash position.
Preparation of pro forma income statement:
This statement must be able to show the expected profit or loss for
the planned period.
Usually prepared for three consecutive years.
Example elements under this pro forma income statement are
sales, gross income and net income before tax.

2) Discuss four (4) components of the project implementation cost.

Working capital for example operations cost.
Contingency cost for which is 10% from the grand total cost.
Capital expenditure for example renovation cost.
Other expenditure for example business registration.