Question 1

a.You are an accountant employed to KPMG Limited. Paula Wilson, whooperatesWilson's Stationery & Internet Caf is your client. On the 30thof June 2021, you visited her business and noted the following activities for the month:

1.Sales for the month amounted to $500,175.00.

2.$150,225.00 was used to purchased goods for resale

3.Ms. Wilson paid $1,515.00 to transport the goods to her store

4.

(a) Electricity

-

$ 5,387.56

(b) Water

-

$ 2,399.65

(c) Rent

-

$45,000.00

(d) Advertising

-

$ 2,000.00

(e) Internet Services

-

$ 10,000.00

(f) Salaries

-

$70,000.00

(g) Delivery Services

-

$ 2,000.00

(h) Telephone Services

-

$ 4,199.78

Other Income earned for the month includes:

(a) Subletting of premises

-

$25,000.00

(b) Photocopying documents

-

$ 1,000.00

(c) Internet caf

-

$ 2,000.00

(d) Printing of documents

-

$ 4,765.00

Operational expenses for the month are:

5.

Using the information above please prepare an income and expenditure statementforthe business at the end of June 2021.(10 marks)

b.Mrs. Wilson indicated that, as a new entrepreneur, she is still somewhat confused as it relates to assets and liabilities and asked that you explain the terms to her. As the Accountant, please provide suitable explanation toMrs.

Wilson, giving her examples

(a)Assets (fixed and current)

(b)Liabilities (long-term and current)(10 marks)

c.Ms Wilson indicated that each month she is required to prepare a budget; however, she is unsure of what is a budget and asked for an explanationfromyou.Provide Ms. Wilson with a brief explanation of a budget.(5 marks)

Question 2

a. Twenty-eight (28) years old Victor Brown, lost his right hand and leg in a motor vehicle accident three (3) years ago. He sued the driver of the motor vehicleandin July 2021, he was awarded a settlement of Twenty Million Dollars ($20,000,000.00). Mr. Brown is interested in investing his money in a Juice Manufacturing Company.

One of the main factors for establishing this company is to employ individuals with physical challenges.

There are two (2) options open to Mr. Brown

a.Purchase a 15years old juice manufacturing company currentlybeingoperated;

b.Purchase land a build a juice manufacturing company.

As Mr. Brown's Social Worker, he approached you to assist him in looking at the available options to decide which would be a more lucrative investment. Having completed the course Entrepreneurship Seminar for Social Workers, you are more than ready to discuss the points with Mr. Brown.

Discuss three (3) advantages and three (3) disadvantages for each of theoptionsstated above.(25 marks)

b.Additionally, Mr. Brown would need to acquire additional funds to financethebusiness. Name and explain five (5) methods of financing entrepreneurial activities to Mr. Brown.

c.(15 marks)

Question 3

Differentiate between the concepts entrepreneur and social entrepreneur (10 marks)

Question 4

Identify and explain three (3) challenges the entrepreneur may experience in obtaining financing for his/her venture.(9 marks)

Question 5

At the social services agency where you are employed, a discussion regarding the impact of social enterprises is being held. Since you are pursuing Entrepreneurship Seminar for Social Workers, your colleagues indicated that they would like to hear your view.

Provie a brief discussion on the topic "social enterprises are important to theJamaicansociety"(6 marks)

SECTION B

ANSWER ALL QUESTIONS IN THIS SECTION ONE (1) MARK FOR EACH CORRECT RESPONSE

1.An entrepreneur is someone who assumes the major risks of abusinessby committing which of the following?

a.equity.

b.time.

c.career.

d.all the above.

2.Which of the following is not a personal characteristic often found in an entrepreneur?

a.self-confident.

b.independent-minded.

c.perceptive.

d.follower.

3.Which of the following are risks for entrepreneurs in small business?

a.interference with personal lives.

b.psychological stress.

c.social and family pressure.

d.all the above.

4.Janet Wilson operates a business which focuses mainly on the fulfillment ofsocialneeds. Janet is operating a/an

a.Insurance Agency

b.Loan Agency

c.Social Enterprise

d.Investment Enterprise

5.As the Accountant for John Wilson, you are asked to explain therelationshipbetween assets, liability and equity, which of the following is correct?

a.liability = assets + equity bEquity = assets + liability cAssets = liability +equity d Liability = Assets =Equity

6.Current Assets may best be described as:

a. Plants and Machinery b Motor Vehicle

c Land and Building d Stock

7.Which of the following qualities will increase your chance of succeeding as an entrepreneur?

a.vision.

b.risk orientation.

c.determination.

d.all the above.

8.Members of the public can purchase shares in which of the following company:

a.Partnership

b.Public Limited Company

c.Private Limited Company

d.All of the above

9.Current Assets may be described as:

a. Plants and Machinery b Motor Vehicles

cLand and Buildings

dItems that can be quickly converted to cash

10.A Budget may be defined as

a. an estimation of expenses over a specified future period of time b an estimation of revenue over a specified future period of time

c.an estimation of revenue and expenses over a specified future periodoftime

d.an estimate of sales over a specified future period of time