1. What are the factors that have contributed to the growth of entrepreneurship in Kenya.

2. Outline four reasons for establishment of a business enterprise

3. Enter the following transactions in the ledger accounts of Onyango Traders for the month of

May, 2004

May1: Started business with shs.150,000 cash

2: Bought goods on credit from Kamau for shs.40,000

4: Sold goods for cash shs.34,500

5: Returned some of the goods purchased from Kamau for Kshs.4,500

4. State four reasons to consider when evaluating a viable business opportunity

5 A surgeon set up a clinic in a distant rural centre. The business was closed after six months.

Identify four possible causes for the failure

6. State four reasons why the government of Kenya is encouraging entrepreneurial knowledge in

schools

Q. Identify four benefits of entrepreneurship to the developing economies such as Kenya

05. ENTERPRENEURSHIP

1 The government of Kenya though the Ministry of Trade and Industry has developed

policies topromote entrepreneurship. Explain five importance of such initiative to the

economy of Kenya

2 Entrepreneurship is becoming the driving force behind most economies in the world and

most governments support it. Explain why entrepreneurship is important to these economies

3 Explain five factors that may hinder entrepreneurship development in Kenya

4 Discuss five causes of the persistent balance of payment disequilibrium in East African

countries

5 Explain any five reasons why a new business may fail