UNIVERSITI TEKNOLOGI MARA

DIPLOMA IN TOURISM MANAGEMENT

FUNDAMENTALS OF ENTREPRENEURSHIP (ETR 300)

PAST YEAR APRIL 2009

PREPARED FOR:
EN .ZAINUDDIN BIN SHARIFF
PREPARED BY:
SITI NAZIRAH BINTI AB HALIM
2007223106
DTM5B

PART C
QUESTION 1
Explain with examples how the followings could create business opportunities.
a) Industrial Linkages.
The output of an industry may require input from others industries. It can develop
interaction or linkages among industries from the same sector or other sectors.
For example, the existence of a heavy industry such as Perodua will create
opportunities for the development of small scale businesses as supporting
industries.
b) Change in population structure.
The percentage of teenagers is higher than the percentages of the elderly and
children .It will create more business opportunities related to the needs and
wants of teenagers. For example the cyber caf, recording studios and theme
park.
c) Government Regulation.
Rules and regulation enforced by government indirectly lead to the business
opportunities for entrepreneurship. For example rules and regulation of the
installation of safety belts and speed traps.

QUESTION 2
Elaborate the differences between a partnership business and a private limited
company.
Differences
1) Setting up the
entity
2) Business liabilities
3) Lifespan of
business
4) Tax

Partnership
Easy to set up

Private Limited
It can higher cost

Each partner is liable for

the duties.
Death or bankrupt of any
partner dissolves a
partnership.
One tax

Not liable for company

debts.
Not dependent upon the
age or resignation of its
members.
Have two tax return.

QUESTION 3
There are certain characteristics that would differentiate a small business from large
corporations. Identify and explain these characteristics.

There are certain characteristics that would differentiate a small business from
large corporations. At early stage, the small business is usually small and has a limited
resources .The owner act as manager. The owner operates without much help from
others. The owner has less time, he focus on other more important functions. As it
grows, the business enters its second stages where assistance is needed. Workers are
directly to the owner. However, the owner still runs most of the business activities.
Next, the business will become more large and grown and also become more
well organized. It is now has a group of managerial functions which can be delegated to
the middle managers. As the business continues to grow it develops into an entirely
formal business organization. The company grows bigger, employs more workers and
has multiple managerial levels in the organization structure. At this stages. The owner
spends most of the time on the managerial functions, namely, planning, leading,
organizing and controlling.

PART D
QUESTION 2
a) Four reasons why it is important for Fadli to prepare a business plan.
Fadli must prepare a business plan

To analyze and evaluate the availability of a proposal venture.

To convince relevant parties of the investment potential of the project.
As a guideline for managing the business.
To allocate business resource effectively.

b) Identify four business support assistance that are provided by the government
and private agencies to help Fadli to start his new business. Name any two
agencies to support your answer.
a) Technical assistance
It is offered to entrepreneurs or potential entrepreneurs to expose them to
production methods and systematic management.
b) Marketing Assistance
The purpose is to help entrepreneurs distribute and market the product locally
and internationally.
c) Infrastructure assistance
This business support offered to assist entrepreneurs in getting business
premises. Such as MARA and SIRIM
d) Training, seminars and workshops
Training programmers are provided to entrepreneurs for the purpose of
exposure to business management and to inculcate entrepreneurial
characteristics or in form of upgrading courses.
Agencies that can help to support are MARA, SEDC,SIRIM and MIDA.

c) To plan the business plan, Fadli has prepare the project implementation cost. List
the components of projects implementation cost

The components of projects implementation cost are:

Capital expenditure.
Working capital requirements.
Other expenditure.
Contingency cost