1.

Differentiate between sole proprietorship and partnership.

Sole Proprietorship
It is owned by one individual, but it need not be carried out by that individual
alone.
Can have a large number of employees.
Examples of sole proprietorship: Tailors, beauty salons, restaurants and mini markets.
Only Malaysian citizens who are permanent residents can register a business as a sole
proprietor.
You can make all the decisions!
Easy set-up (minimal paperwork)
Licensing (obtain from state or local government)
Business name (need to get a certificate)
Employees (need to get Employer Identification #, EIN)
Total Control
Profits to Owner
Profits Taxed Once
Few Government Regulations
Partnership
A partnership refers to a business owned by at least two or more individuals but
not exceeding the maximum number of 20 persons.
Only Malaysian citizens or permanent residents can register partnerships.
A partnership is a business owned by 2 or more persons.
Easy set-up
More skills and knowledge (more people to pull ideas from)
Available capital (more sources for $$ to get business running)
Total control by partners
Profits taxed once
2.

Explain the meaning of entrepreneurship.

The process of seeking business opportunities under
conditions of risk.
Also refers to the process of creating something
The entrepreneur is an innovator who uses the process to challenge
existing norms via combinations of new resources and methods in
commerce.

The capacity and willingness to develop, organize and manage a business venture along with any of
its risks in order to make a profit. The most obvious example of entrepreneurship is the starting of
new businesses.
In economics, entrepreneurship combined with land, labor, natural resources and capital can produce profit.
Entrepreneurial spirit is characterized by innovation and risk-taking, and is an essential part of
a nation's ability to succeed in an ever changing and increasingly competitive global marketplace
The capacity and willingness to develop, organize and manage a business venture along with any of
its risks in order to make a profit. The most obvious example of entrepreneurship is the starting of
new businesses.

In economics, entrepreneurship combined with land, labor, natural resources and capital can produce profit.
Entrepreneurial spirit is characterized by innovation and risk-taking, and is an essential part of
a nation's ability to succeed in an ever changing and increasingly competitive global marketplace
DEFINE SOCIAL RESPONSIBILITY

Corporate Social Responsibility is the continuing commitment by

business to behave ethically and contribute to economic
development while improving the quality of life of the workforce and
their families as well as of the local community and society at large
A companys sense of responsibility towards
the community and environment (both ecological and social) in which
it operates. Companies express this citizenship (1) through
their waste and pollution reduction processes, (2) by contributing
educational and social programs, and (3)
by earning adequate returns on the employedresources. See
also corporate citizenship.

Briefly discuss how entrepreneurs can fulfill their social responsibilities towards their
suppliers, clients, society and government. Give THREE (3) reasons.
(1)
(2)

(3)

(4)
(5)
(6)
(7)

Set goals. What do you want to achieve? What do you want your
company to achieve? Do you want to enter a new market? Introduce
a new product? Enhance your business's image?
Decide what cause you want to align yourself with. This may be
your toughest decision, considering all the option out there: children,
the environment, senior citizens, homeless people, people with
disabilities--the list goes on. You might want to consider a cause that
fits in with your products or services. For example, a manufacturer of
women's clothing could get involved in funding breast cancer
research. Another way to narrow the field is by considering not only
causes you feel strongly about, but also those that your customers
consider significant.
Choose a nonprofit or other organization to partner with. Get to
know the group, and make sure it's sound, upstanding,
geographically convenient and willing to cooperate with you in
developing a partnership.
Design a program, and propose it to the nonprofit group. Besides
laying out what you plan to accomplish, also include indicators that
will measure the program's success in tangible terms.
Negotiate an agreement with the organization. Know what they
want before you sit down, and try to address their concerns upfront.
Involve employees. Unless you get employees involved from the
beginning, they won't be able to communicate the real caring involved
in the campaign to customers.
Involve customers. Don't just do something good and tell your
customers about it later. Get customers involved, too. A sporting
goods store could have customers bring in used equipment for a
children's shelter, then give them a 15 percent discount on new

purchases. Make it easy for customer to do good; then reward them

for doing it.

4.

5.

(a)
What is business plan?
Business planning is one of the management tools used to achieve
business objectives.
The accuracy of a business plan will reflect management's ability,
experience and history in running the business.
The business plan is also known as venture plan, entrepreneur plan,
working paper, project paper or prospectus.
The plan serves as a guide and blueprint for a proposed business project
that one intends to undertake.
(b)

Why business plan important?

An opportunity to test out a new idea to see if it holds real promise of success
A clear statement of your business mission and vision
A set of values that can help you steer your business through times of trouble
A blueprint you can use to focus your energy and keep your company on track
Benchmarks you can use to track your performance and make midcourse corrections
A clear-eyed analysis of your industry, including opportunities and threats
A portrait of your potential customers and their buying behaviors
A rundown of your major competitors and your strategies for facing them
An honest assessment of your companys strengths and weaknesses
A roadmap and timetable for achieving your goals and objectives
A description of the products and services you offer
An explanation of your marketing strategies
An analysis of your revenues, costs, and projected profits
A description of your business model, or how you plan to make money and stay in business
An action plan that anticipates potential detours or hurdles you may encounter
A handbook for new employees describing who you are and what your company is all about
A rsum you can use to introduce your business to suppliers, vendors, lenders, and others

Differentiate the THREE (3) advantages and disadvantages of operating a small

business.
ADVANTAGES
liability for shareholders is limited
it's easy to transfer ownership by selling shares to another party
shareholders (often family members) can be employed by the company
the company can trade anywhere in Australia
taxation rates can be more favourable
you'll have access to a wider capital and skills base.

DISADVANTAGES
liability for shareholders is limited
it's easy to transfer ownership by selling shares to another party
shareholders (often family members) can be employed by the company

the company can trade anywhere in Australia

taxation rates can be more favourable
you'll have access to a wider capital and skills base.

6.

Give TWO (2) differences between entrepreneurs and managers?

ENTREPRENEURS
-

entrepreneur is the owner of the organization and he bears all the risk and uncertainties
involved in running an organization
Entrepreneurs objective is to innovate and create and he acts as a change agent
An entrepreneur is faced with more income uncertainties as his income is contingent on the
performance of the firm
An entrepreneur is not induced to involve in fraudulent behavior where as a manger does

MANAGERS
- manager is an employee and does not accept any risk
- managers objective is to supervise and create routines. He implements the entrepreneurs
plans and ideas
- a managers compensation is less dependent on the performance of the organization.
- A manager may cheat by not working hard because his income is not tied up to the
performance of the organization.