Podcast
Questions and Answers
What is one of the main focuses of cooperatives?
What is one of the main focuses of cooperatives?
Members of cooperatives are only customers and do not have any ownership rights.
Members of cooperatives are only customers and do not have any ownership rights.
False
What type of revenue do cooperatives return to their members?
What type of revenue do cooperatives return to their members?
Surplus revenue
What is a significant disadvantage of a partnership?
What is a significant disadvantage of a partnership?
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Cooperatives serve their members effectively by working together through ______ structures.
Cooperatives serve their members effectively by working together through ______ structures.
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In a limited company, shareholders have unlimited liability for the company's debts.
In a limited company, shareholders have unlimited liability for the company's debts.
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Match the following types of cooperatives with their descriptions:
Match the following types of cooperatives with their descriptions:
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What can happen to a partnership business upon the death of a partner?
What can happen to a partnership business upon the death of a partner?
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What is a disadvantage of cooperatives?
What is a disadvantage of cooperatives?
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Cooperatives are primarily motivated by profit.
Cooperatives are primarily motivated by profit.
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A limited company is created through a process of ______.
A limited company is created through a process of ______.
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Match the following terms with their meanings:
Match the following terms with their meanings:
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What agency is responsible for the registration of cooperatives in Zambia?
What agency is responsible for the registration of cooperatives in Zambia?
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Which of the following is an advantage of forming a limited company?
Which of the following is an advantage of forming a limited company?
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Decision-making in a partnership is generally quick and efficient.
Decision-making in a partnership is generally quick and efficient.
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What is one major advantage of partnerships compared to sole proprietorships?
What is one major advantage of partnerships compared to sole proprietorships?
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Which document is issued upon successful registration of a sole proprietorship or partnership?
Which document is issued upon successful registration of a sole proprietorship or partnership?
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The process of incorporating a limited company requires the submission of three copies of the Articles of Association.
The process of incorporating a limited company requires the submission of three copies of the Articles of Association.
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What kind of office assists in filling out forms for business registration?
What kind of office assists in filling out forms for business registration?
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A manufacturing enterprise combines various raw materials and/or inputs to create an end physical ______.
A manufacturing enterprise combines various raw materials and/or inputs to create an end physical ______.
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Match the following types of enterprises with their descriptions:
Match the following types of enterprises with their descriptions:
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Which of the following steps is NOT involved in the registration of co-operatives?
Which of the following steps is NOT involved in the registration of co-operatives?
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A construction enterprise focuses primarily on manufacturing consumer goods.
A construction enterprise focuses primarily on manufacturing consumer goods.
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What is the first step in the incorporation of a limited company?
What is the first step in the incorporation of a limited company?
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Which of the following is an example of combining uses into one product?
Which of the following is an example of combining uses into one product?
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Time framing involves offering services in a longer period of time.
Time framing involves offering services in a longer period of time.
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What is the term for generating business ideas from experiences in other places?
What is the term for generating business ideas from experiences in other places?
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If a product is fast, making it slow can be an example of _______.
If a product is fast, making it slow can be an example of _______.
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Which concept requires using imagination to visualize a product before its realization?
Which concept requires using imagination to visualize a product before its realization?
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What scoring method is suggested for assessing business ideas?
What scoring method is suggested for assessing business ideas?
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Match the business creation concepts with their descriptions:
Match the business creation concepts with their descriptions:
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Technological developments do not play a role in creating unique business ideas.
Technological developments do not play a role in creating unique business ideas.
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Which of the following factors is NOT considered when assessing a business idea?
Which of the following factors is NOT considered when assessing a business idea?
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Environmental scanning involves analyzing information about the business environment.
Environmental scanning involves analyzing information about the business environment.
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What should an entrepreneur do after identifying a business idea?
What should an entrepreneur do after identifying a business idea?
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One key aspect of assessing a business idea is understanding the potential __________.
One key aspect of assessing a business idea is understanding the potential __________.
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Match the following business assessment factors with their descriptions:
Match the following business assessment factors with their descriptions:
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Which factor indicates the need for financial readiness in a business?
Which factor indicates the need for financial readiness in a business?
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Sufficient knowledge of products and services is irrelevant to running a business.
Sufficient knowledge of products and services is irrelevant to running a business.
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What is the purpose of environmental scanning?
What is the purpose of environmental scanning?
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What is a key component to determine before starting a business?
What is a key component to determine before starting a business?
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A feasibility study assesses whether a business idea is viable or not.
A feasibility study assesses whether a business idea is viable or not.
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List one factor that must be evaluated when considering the competitive environment for a business.
List one factor that must be evaluated when considering the competitive environment for a business.
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If ___% of the questions regarding the business environment can be answered easily, the business idea may be feasible.
If ___% of the questions regarding the business environment can be answered easily, the business idea may be feasible.
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Which of the following is NOT considered in the environmental scanning process?
Which of the following is NOT considered in the environmental scanning process?
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Match the following elements to their importance in a business feasibility study:
Match the following elements to their importance in a business feasibility study:
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Understanding customer needs is less important than knowing the cost of production.
Understanding customer needs is less important than knowing the cost of production.
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What should be conducted after an environmental scanning exercise in relation to a business idea?
What should be conducted after an environmental scanning exercise in relation to a business idea?
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Study Notes
Entrepreneurship
- Entrepreneurship is defined as the art of creating or developing a business through innovation, creativity, progressive imagination and risk-taking initiative.
- Key terms in this definition are:
- Art - a subject of study not scientific, two people may achieve the same result using different methods. Entrepreneurial mindset is required.
- Creating - involves coming up with a new or original business that did not exist before.
- Developing - involves making an existing business bigger and more successful.
- Business - a legal activity created for profit.
- Innovation - the application of better solutions to meet new requirements or needs/wants. It involves coming up with something original, new, and significant.
- Creativity – the ability to generate original ideas or combine existing ones usefully.
- Progressive imagination - the ability to think of innovative ideas that will eventually develop a business.
- Risk taking - the tendency to engage in behaviors that have the potential for loss but also the opportunity for gain.
Types of Entrepreneurs
- Pulled entrepreneurs - motivated by successful entrepreneurs or role models, adequately prepare and have a higher rate of success.
- Pushed entrepreneurs - driven by circumstances such as retirement or redundancy. Their response to these circumstances is to initiate their own business, often through trial and error, and therefore have a lower rate of success.
Ways Entrepreneurs Operate
- Soloist - works alone
- Acquirer - buys an existing business or inherits it and improves it
- Grouper - combines different talents to form a business team
Types of Entrepreneurs (Continued)
- Professional - uses professional competencies to establish a business
- Inventor - discovers a need and creates a business based on the discovery
- High-tech - uses modern technology to improve business appeal.
- Speculator - entrepreneur who engages in speculative ventures.
- Manipulator (manipulates stakeholders)
- Workforce builder – mobilises a workforce for business success.
- Committed manager - uses managerial skills and experience to develop a committed management approach to business.
- Conglomerator - builds diverse business conglomerates.
- Capital aggregator - seeks to mobilise capital for enterprise development.
- Lifestyle entrepreneur - whose work is part of their daily lifestyle.
Forms of Business (Continued)
- Sole proprietorship - business owned and operated by one person with complete control.
- Partnership – business formed by two or more people, with personal liability.
- Limited company - separate legal entity from its owners, limited liability
- Cooperative - a voluntary association working towards a common goal
Economic Trends in Zambia
- Pre-independence (1924-1964): Colonial rule, Indigenous Africans primarily used for cheap labor, no attempt to promote entrepreneurship.
- Post-independence stage I (1964-1980): Inherited rich treasury, rich copper reserves, low oil prices, led to massive infrastructural development & provision of free education, medical services, water and sanitation. Zambianisation policy led to state-controlled industries & few Indigenous Zambian entrepreneurs. No promotion of culture of entrepreneurship.
- Post-independence stage II (1980-1991): Zambian economy declined, increased unemployment led to government emphasis on promoting entrepreneurship and self-employment. Organizations to encourage small enterprises were started.
- Post-independence stage III (1991 to date): Zambia pursued a liberalised free market economic policy, change in economic policy, transfer of economic control from the state to private through privatization. Closure of organizations, retrenchments, and redundancies, the need for entrepreneurship.
Natural Resources
- Land Resources: Farming, clay for pottery, stone for masonry
- Water Resources: Fishing, reeds for mats, baskets, water for domestic use.
- Forest resources: Saw milling, wood, furniture manufacturing, etc.
- Wildlife - tourism, conservation, food (meat)
Role of Enterprises in Economic Development and Growth
- Creation of employment
- Contribution to the national treasury
- Earning foreign exchange
- Provision of goods and services
- Technology transfer
- Supplementing government effort
- Inculcating a culture of entrepreneurship
- Utilization of local raw materials
Government Policy on Micro and Small Enterprise Development
- Manufacturing policy - efficient and sustainable growth, value added, local raw materials, and competitive industries
- Commerce and trade policy - liberalized sector, competition commission, issues and/or pricing, and export/import procedures
- Agricultural policy - encouragement and empowerment of farmers; initiatives that improve productivity
- Investment policy – dynamic competitive environment, foreign investment attraction to the industrial sector.
- Small enterprises/rural/informal industries policy – improving infrastructure, promoting entrepreneur skills, and accommodating them into the industrial estates.
Business Ethics and Values in Managing an Enterprise
- Cultural values
- Influence of culture and ethics on an enterprise
- Family influence
- No free products or services from business
- Importance of business records
Developing Business Ideas and Opportunities
- Self-employment
- Shortages
- Shortcomings in existing products or services
- Man's basic needs
Environmental Scanning
- The importance of conducting environmental scanning
- Techniques of environmental scanning
- PEST analysis
- Porter's model of Five Competitive Forces
- SWOT analysis
- Value Chain analysis
Defining and Evaluating Business Ideas
- Criteria for business idea evaluation
- Simple scoring method for business ideas
Feasibility Study
- What is feasibility
- Investment assessment techniques (payback period, net present value, internal rate of return)
- Assessing business opportunities (is it possible and worthwhile)
Projecting Profit and Loss, Financial Plan, and Cash Flow
- Projected profit and loss statement
- Financial Plan
- Cash flow statement
- Cost analysis
- Pricing
Managing Human Resource
- Human resource management
- Human resource planning
- Industrial Relations Act
Additional topics
- Stock Control
- Budgeting
- Networking for Enterprise Development
- Communication
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