QUESTION 1

Most business whether producing goods or services aim to

make profit, define the goals of business. ( 2 marks )

Goals are objectives that a business hopes and plans to

achieve. Goals are also the end state that the business is
expected to achieve. Goal setting is the process of
developing and committing a business to set an objective.

QUESTION 2
In order to arrange a new business, state three (3) types of goals and
three (3) levels of goals. ( 3 marks )
Types of goals :
1. Vision/purpose
2. Mission
3. Objective
Levels of goals :
1. Long - term goals
2. Intermediate goals
3. Short - term goals

QUESTION 3
DEFINE BUSINESS AND EXPLAIN THE FOUR (4) PURPOSES OF
GOAL SETTING IN BUSINESS. (10 MARKS)
DEFINITION OF BUSINESS :
BY KHALIDAH KHALID, A BUSINESS IS AN ORGANIZATION UNDER
ONE MANAGEMENT, SET UP FOR THE PURPOSE OF EARNING
PROFITS BY PROVIDING GOODS AND SERVICES FOR SALE IN
MARKET.
WHILE, IN THE OTHER OPINION BY MADURA, A BUSINESS(FIRM) IS
AN ENTERPRISE THAT PROVIDES OR SERVICES THAT CUSTOMER
DESIRE.

4 purpose goal setting in

business.
Its

provides direction and guidance for all

businesses

When the managers set goals for their firms, they establish
directions where the firm is going and what the firm want to
achieve. Helping the manager to run the business effectively and
efficiently.

Its

help firms to allocate resources.

The firm can delegate the resources according to priority products

or project.it can give managers general but useful guidelines about
how resources should be use to best accomplish organizational
purpose.

Its

helps business to define corporate culture

Corporate culture is the belief, norms and
experience
that
characterize
an
organization. Its provide firms identity and
direct employees efforts and guides
everyone to work towards a common goals.

Its

helps business managers to assess the

business performance.
The target set by the firm would enable the
managers to assess its performance based
on its goal.

QUESTION 4
Explain three (3) roles of business. ( 6 marks )
The roles of business is to provide employment by opening more
jobs opportunity to society. Its will reduce poverty and increase standard
of living.
The second point is to help the country to increase the growth rate
through promote exchange rate between two countries (economic) such
as offer an affordable price to outsider for marketing product . It will
helps country to maintain high standard of living .
The third point is business help to protect the environment by
preserve the environment in healthy condition by reducing contamination
and pollution. Owner of the business can make a collaboration with
consumer to promote the environmentally safe product and service such
as make biodegradable fertilizer and merchandise .

QUESTION 5
DISCUSS TWO FORMS OF BUSINESS OWNERSHIP (4M)
There are three major forms of business ownership which are sole proprietorship,
partnership and corporation.
First form of business ownership is sole proprietorship. This form is owned by one
person. It does not need to be operated by one person solely, instead it can have large
number of employees. Furthermore, sole-proprietorship also has the large numbers of
business in most country. It usually exits in small size such as restaurant, laundry shop
and bakery shop. This form is the simplest form of business ownership.
Second form of business ownership is partnership. It is an association of two or
more persons to act as co-owners of a business for a profit. This form of business is
owned by two or more persons carrying a business in a common view of sharing the
profits and losses of the business.

QUESTION 6
Identify two function of business. (5 marks)

To serve the needs of customers

The business knowing and understanding customer
needs is at the centre of every successful business
whether it sell directly to individuals or other business.
the business will be more successful if they can match
what they are offering to what their customer afford.
Then, the business understanding the needs and
requirement of the customer and make sure that the
organization goods and services to the customer
needs.

 Preserved knowledge
Expertise can preserve the knowledge by having
the business. Then, people can know more about
business and can help country economy to growth.
With knowledge, we can improve the lives and
expend more knowledge thinking. After that, they
can train the other with their knowledge to
continuing improvement.

QUESTION 7
If you were to start a business, explain five (5) key function needed to operate the business.
(10 marks)

The first key function of business is management. Management is the means

which employees and other resources are used by firm. There are four basic
function of management which are planning, organising, leading and
controlling. Planning a business involve creating a business strategy on how to
achieve what we want. It also includes ways to use resource efficiently and
effectively. Next is organising the business. In this function, people who run
the business should identify who should do the task and how to do it. Leading
the business is also the basic function of management. Managers should guide
the employees and give motivation to them. This is important to ensure a good
employees behaviour in order to attract more customers. Lastly control the
business to make sure your business achieve its goals. This can be done by
looking back at the business plan and identify problem that prevent the
business from running smoothly.

Second key function of business is marketing. Marketing is the

means which product/services are developed, priced, promoted and
distributed to customers. It involves four basic aspect, product, price,
place and promotion. First aspect is product, we have to set what kid of
product that the business wants to produce. Decision on what product
to produce can be made by looking at customers demand. Next, setting
a suitable price for the product based on purchasing power of
customers. This will ensure that customers can afford the product.
Moreover, is the marketing channel decision or distribution to ensure
the product or services are available for the use of consumers or
businesses. Finally, promotion for the product should be done to attract
customers to buy the product. Few examples on what kind of
promotion that can attract buyers are seasonal sales, and free vouchers.

Third key function is finance. Finance is the means which firm

obtain and use funds for their business operation. Funds can be
obtain from personal saving, government agencies, bank loans and
investors. The owner can look for government agencies that
provide special fund for business such as MARA and TEKUN to
help them gain capital to start the business. Some banks also
provide loan scheme to help individual starts a business.
Fourth key function of business is accounting. Account is the
summary and analysis of the firms financial condition and is open
to make various business decisions. The owner can hire people that
can help in recording business transactions, releasing financial
statement and help in making decision. These people are
accountants, bookkeeper and financial analysts.

Last key function of business is information

system. This system is made up of information
technology, people and procedures that provide
appropriate information to assist the firms
employees make business decisions. Owner can
create a medium that provide information or
services that is closer and easier to customer
using the latest technology, such as websites (ebiz) and phone applications. This application help
the customer to get more information about and
let them purchase it without going to the stores.
This can save their travelling time and costs.

QUESTION 8
Define sole proprietorship and explain three and two
disadvantages of sole proprietorship. (12 marks)
Sole proprietorship or sole trader is considered to be
the simplest form of business organization, whereby it is
owned by one person. However, it does not need to be
operated solely by one person ; it can have a large number
of employees instead. Sole proprietorships represent the
largest number of businesses in most countries, and
typically the smallest ones in size. For example:
restaurants, travel agencies, bakery shop, laundry shop.

ADVANTAGES OF A SOLE PROPRIETORSHIP

Total independence in making decisions.

A sole proprietor is in total control of his/her
operations. Therefore, one can quickly respond to
changes, which is an advantages in a rapidly moving
market.
Sole ownership of profits.
In sole proprietorship, all profits are considered to be
personal property and one is not required to share
profits with anyone.

 Pay only personal income tax and not business

tax.
A sole proprietor is not required to pay
corporation tax because it is not a separate legal
entity from its owner. Therefore, profits made by
the business owner would be taxed in the hands of
the owner.
Low set-up costs.
In setting up a sole proprietorship, there are no
legal complications. There is no minimum or
maximum limit in terms of capital. The business is
flexible in its operations as it can engage in any
other operations without any restriction compared
with other forms of business.

DISADVANTAGES OF A SOLE PROPRIETORSHIP

Entirely responsible for debts and risks.

The sole proprietor is solely responsible for the debts
and the risks of his/her business.
Unlimited personal liability.
Legally, there are no boundaries between the sole
proprietors' personal and business property. His/her
liabilities are unlimited, whereby failures in the
business may mean a loss of the sole proprietors'
personal property. Obtaining proper insurance
coverage may lessen the additional problems of
liability.

 Limited access of capital.

If the sole proprietor decides to grow and expand his/her
business, additional finances are needed. However, the
owner of the business would have put all his/her money
into the business, and thus, have to use his/her personal
resources are collateral to acquire loans. The sole
proprietor tends to have a rather limited amount of capital
he/she can contribute and the amount of money he/she can
borrow.
Limited skills and capabilities.
Many businesses fail due to the owner's lack of skills,
knowledge and experience in areas that are considered to
be vital for business success. Often, the owner would tend
to ignore or push aside the problems that he/she cannot
solve.

 Feeling of isolation.
Running a business alone would give you the
freedom in making decisions, but it also creates the
feeling of isolation where one would feel that he/she
cannot turn to anyone for help when there is a
problem or in obtaining feedback.
Short life of business.
Most sole proprietors face the problem of succession ,
whereby if the owner dies, the business goes with
him/her. Usually, there are no plans laid for the
continuity of the business.

QUESTION 9
Briefly explain two types of partnership (4 marks)
Partnership consists of two types which are general partnership and
limited partnership. General partnership is an association of two or more
person with each general partners as co-owner having unlimited legal
liability. This partner is responsible for all the debts of the enterprise and
may loose their personal assets as they have unlimited liabilities.
Limited partnership is a business co-owned by one or more general
partners who manage the business and limited partners who invest
money in it. They can lose the capital they have put in but they are not
required to pay partnership debts as they have limited liability.

QUESTION 10
Explain (3) advantages and two (2) disadvantages of partnership. (10 marks)

ADVANTAGES OF PARTNERSHIP:
COMBINED BUSINESS AND KNOWLEDGE
Several partners in a business could bring benefits in terms of
idea or expertise since different people have their own vision or
ways to improve business. Partners share decisions making,
help each other out. More partners means more brains with
result an outstanding business ideas for solving problems that
the business encounters plus two head are better than one.

 PROFITS AND LOSSES ARE SHARED

Business as partnership do not have to pay income tax , each
partner files the profits or losses of the business on his or her own
personal income tax return.
This way the business does not get taxed separately. Each
partner will absorb a portion of the loss or profit.
EASY TO ESTABLISH
Partnership business tend to establish easily and start-up costs are
low. Payment that need to be paid for the capital individually are
low since business partner tend to share the fee among
themselves.

DISADVANTAGES OF PARTNERSHIP :
UNLIMITED LIABILITY
In a partnership, the liability of the partners for the debts of the
business is unlimited. Each partner is jointly and severely liable for the
partnerships debts that is each partner is liable for their share of the
partnership debts as well as being liable for all the debts. This will
cause partners to lose their personal assets such as vehicle or house.
LACK OF CONTINUITY
If a partner deceased or retires could shut down the business
permanently. A negotiation will have to be made in order to establish a
new partnership. Transfer of ownership can be quite difficult unlike in
corporations. In a nutshell, a partnership can be potentially unstable
because of the danger of dissolution if one partner want to withdrawal
from the business or dies.

QUESTION 11
Identity four(4) characteristics of corporation
(4 marks)
CHARACTERISTIC OF THE CORPORATION ARE
LIABILITY MEMBER ARE LIMITED TO THE NUMBER OF
SHARES SUBSCRIBED. NEXT, THE COMPANYS
OPERATION IS GOVERNED BY THE COMPANIES
COMMISSION. THEN, COMPANY MUST PUBLISH ITS
FINANCIAL REPORT. FURTHERMORE, ALL TAXES
MUST BE PAID BY THE COMPANY.

QUESTION 12
Explain two(2) disadvantages of corporation. (4 marks)

DISADVANTAGES OF CORPORATION ARE HIGH

TAXATION. ALL CORPORATE TAX AS WELL AS
PERSONAL INCOME TAX MUST BE PAID BY THE
COMPANY. NEXT, LOSS OF CONTROL BY THE
FOUNDER. ENTREPRENEUR WHO DECIDE TO SELL
SHARES OF OWNERSHIP IN THEIR COMPANIES IN
ORDER TO HAVE A LARGE AMOUNT OF CAPITAL
WOULD HAVE TO RELINQUISH SOME CONTROL.

QUESTION 13
Explain five (5) types of business support system in
business. (10 marks)
A business support system (BSS) is a group of business elements
used in networking to help service providers gain customer
insight, compile real-time subscriptions and introduce new
revenue generating services.
A BSS is critical because it helps service providers support and
extend operations to enhance business services. Business
support systems are used by all service providers, including
mobile, fixed and cable networks.

TYPES OF BUSINESS SUPPORT

SYSTEM

TECHNICAL
ASSISTANCE

FINANCIAL
ASSISTANCE
INFORMATION
PROVIDERS

MARKETING
ASSISTANCE

INFRASTRUCTURE
ASSISTANCE

TECHNICAL ASSISTANCE
TECHNICAL SUPPORT SERVICES ADDRESS SPECIFIC
PROBLEMS WITH A PRODUCT OR SERVICES RATHER THAN
THE PROVISION OF TRAINING,CUSTOMIZATION OR
OTHER SUPPORT SERVICES.
MOST COMPANIES OFFER TECHNICAL SUPPORT FOR THE
PRODUCT THEY SELL EITHER FREELY AVAILABLE OR FOR A
FEE.
IT ASSIST ENTREPRENEUR IN IMPROVING THEIR
PRODUCTION METHODS AND DEVELOPING SYTEMATIC
MANAGEMENT PROCES.

EXAMPLES
PALM OIL RESEARCH
INDUSTRY
MALAYSIA (PORIM)

FOREST RESEACH
INSTITUTE
OF MALAYSIA (FRIM)

Develop quality products using the latest

technological advancement.

Promotes sustainable management and the

optimal use of forest resources by generating
knowledgement and technology through
research developmentand application.

FINANCIAL ASSISTANCE
IT IS GIVEN BY A COMPANY FOR THE PURCHASE OF ITS
SHARES OF THOSE OF ITS HOLDING COMPANIES.
FINANCIAL FACILITIES OR ACCOMODATION IS PROVIDED
BY FINANCIAL INSTITUITION FOR AN ENTREPRENEUR TO
START AND PERFORM A BUSINESS.

EXAMPLES
MAJLIS AMANAH
RAKYAT (MARA)

BANK PERTANIAN
MALAYSIA (BPM)

MALAYSIA INDUSTRICAL
DEVELOPMENT FINANCE
BERHAD ( MIDF)

Provides assistance in the form of loans

and equipment to SME entrepreneur.

Gives financial assistance and equipment

to agriculture-related industries.

Provides fixed asset financing to manufactures

in Malaysia.

MARKETING ASSISTANCE
THIS SYSTEM IS USED TO HELP BUSINESSES EXPLORE
DIFFERENT SCENARIOS BY MANIPULATING COLLECTED
DATA FROM THE PAST EVENTS.
IT IS ALSO A DECISION SUPPORT SYSTEM FOR
MARKETING ACTIVITIES CONSIST OF INFORMATION
TECHNOLOGY,MARKETING DATA,SYSTEM TOOLS AND
MODELING CAPABILITIES TAHT ENABLE TO PROVIDE
PREDICTED OUTCOMES.

EXAMPLES
FEDERAL AGRICULTURAL
MARKETING AUTHORITY
(FAMA)

Markets agricultural products locally and

abroad.

MALAYSIAN EXTERNAL TRADE

DEVELOPMENT CORPORATION
(MATRADE)

Exposes the entrepreneur to available

business opportunities.

INFORMATION PROVIDERS

INFORMATION ASSISTANCE IS OFFERED TO AN

ENTREPRENEUR IN THE FORM OF BUSINESS
OPPORTUNITIES, STATISTIC DISCOVERY,RESEARCH AND
DEVELOPMENT AND TECHNOLOGICAL DEVELOPMENT.

EXAMPLES
FOREST RESEARCH
INSTITUDE
OF MALAYSIA (FRIM)

Provides research and development,

transfer of technology and testing services
for the forest and the industry.

STANDARD AND
INDUSTRIAL
RESEARCH INSTITUTE
OF MALAYSIA
(SIRIM)

Ensures the quality of local products,

penetrates the market potentiality
and provides information on new
discoveries in production.

INFRASTRUCTURE ASSISTANCE
REFERS TO STRUCTURES SYSTEM AND FACILITIES
SERVING A COUNTRY.
IT TYPICALLY CHARACTERISTICS TECHNICAL
STRUCTURES AND CAN BE DEFINED AS "THE PHYSICAL
COMPONENTS" WHICH PROVIDES COMMODITIES AND
SERVICES ESSENTIAL TO ENHANCE SOCIETAL LIVING
CONDITIONS.
PROVIDE SUITABLE BUSINESS LOCATION EQUIPPED
WITH ALL TYPES OF FACILITIES INCLUDING UTILITIES.

EXAMPLES
URBAN DEVELOPMENT
AUTHORITY (UDA)

Provides and carries out project at urban

settlements in terms of development,
housing,comersial,industrial issues.

MAJLIS AMANAH
RAKYAT
(MARA)

Provides business sites to carry out

business activities.