Question Thice c) Business ethics is unnecessary as long as an entrepreneur can maximize profit. Discuss. Question Five AGBM 102 Question Two (1) Briefly discuss your understanding of the term "Risk ".Why do you think successful entrepreneurs are calculated risk takers? (4 marks) (C) Briefly explain any four ways in which ideas can be generated (4 marks) (1) Using relevant examples, discuss the issues to be taken into consideration in forming business ownership (6 marks) (1) Discuss the motivational factors that may contribute to entrepreneurial development among youths in Kenya (6 marks) SECTION B a) Distinguish between creativity and innovation and explain why they are important to an chitrephoneur. (7 marks) * b) Through indovation and creativity entrepreneur have been found to contribute significantly to the growth of developing countries like Kenya'. Discuss. (8 marks) Question Four a) What is a copyright? What type of material does it cover? b) When is fronchising appropriate, from the business owner's point of view?Provide an example. (5 marks) (5 marks) Briefly write short notes on the following terminologies: (1) Essentials business traits of a successful entrepreneur (3 marks) (b) Katropreneurial stress (3 marks) (c) Intollectual property rights (3 marks) (d) Phoiness plan (e) Social cutreprencurship (3 marks) (3 marks) (5 marks)

Question Three<br /><br />c) Business ethics is unnecessary as long as an entrepreneur can maximize profit. Discuss.<br /><br />Business ethics refers to the principles and standards that guide behavior in the world of business. While maximizing profit is a primary goal for entrepreneurs, business ethics are crucial for several reasons:<br /><br />1. **Reputation and Trust**: Ethical practices build trust with customers, employees, and stakeholders. A good reputation can lead to customer loyalty and long-term success.<br /><br />2. **Legal Compliance**: Adhering to ethical standards often aligns with legal requirements. Unethical behavior can lead to legal issues, fines, and damage to the business.<br /><br />3. **Sustainability**: Ethical businesses consider the impact of their actions on the environment and society, ensuring sustainable operations.<br /><br />4. **Employee Morale**: A strong ethical culture can improve employee satisfaction and retention, leading to increased productivity.<br /><br />5. **Risk Management**: Ethical practices help in identifying and mitigating risks associated with unethical behavior, such as fraud or corruption.<br /><br />In summary, while profit maximization is important, business ethics play a vital role in ensuring long-term success and sustainability.<br /><br />Question Two<br /><br />(1) Briefly discuss your understanding of the term "Risk". Why do you think successful entrepreneurs are calculated risk takers? (4 marks)<br /><br />Risk refers to the potential for loss or failure when pursuing a particular course of action. Successful entrepreneurs are calculated risk-takers because they assess potential risks and rewards before making decisions. They gather information, analyze data, and weigh the pros and cons to minimize uncertainty and increase the likelihood of success.<br /><br />(C) Briefly explain any four ways in which ideas can be generated (4 marks)<br /><br />1. **Brainstorming**: Gathering a group to generate a wide range of ideas without judgment.<br />2. **Market Research**: Analyzing market trends and consumer needs to identify opportunities.<br />3. **Observation**: Watching how people interact with products or services to find areas for improvement.<br />4. **Networking**: Engaging with others in the industry to exchange ideas and gain new perspectives.<br /><br />(1) Using relevant examples, discuss the issues to be taken into consideration in forming business ownership (6 marks)<br /><br />When forming business ownership, consider:<br /><br />1. **Liability**: Sole proprietorships have unlimited liability, while corporations offer limited liability protection.<br />2. **Taxation**: Different structures have varying tax implications; for example, partnerships may face pass-through taxation.<br />3. **Control**: Sole proprietors have full control, whereas partnerships and corporations require shared decision-making.<br />4. **Capital Needs**: Corporations can raise capital through stock issuance, unlike sole proprietorships.<br />5. **Regulatory Requirements**: Corporations face more regulations compared to sole proprietorships.<br />6. **Continuity**: Corporations have perpetual existence, while sole proprietorships dissolve upon the owner's death.<br /><br />(1) Discuss the motivational factors that may contribute to entrepreneurial development among youths in Kenya (6 marks)<br /><br />Motivational factors include:<br /><br />1. **Economic Opportunities**: The desire to improve financial status and create wealth.<br />2. **Innovation and Creativity**: The drive to bring new ideas and solutions to the market.<br />3. **Independence**: The aspiration to be one's own boss and make independent decisions.<br />4. **Social Impact**: The motivation to address social issues and contribute to community development.<br />5. **Government Support**: Access to government programs and incentives for entrepreneurship.<br />6. **Role Models**: Inspiration from successful entrepreneurs who have achieved significant milestones.<br /><br />SECTION B<br /><br />a) Distinguish between creativity and innovation and explain why they are important to an entrepreneur. (7 marks)<br /><br />Creativity involves generating new and original ideas, while innovation is the process of implementing those ideas into practical solutions or products. Both are important to entrepreneurs because creativity leads to unique concepts, and innovation turns those concepts into viable business opportunities, driving growth and competitiveness.<br /><br />b) Through innovation and creativity, entrepreneurs have been found to contribute significantly to the growth of developing countries like Kenya. Discuss. (8 marks)<br /><br />Entrepreneurs contribute to growth by:<br /><br />1. **Job Creation**: Establishing new businesses that provide employment opportunities.<br />2. **Economic Development**: Introducing innovative products and services that stimulate economic activity.<br />3. **Technology Advancement**: Leveraging technology to improve efficiency and productivity.<br />4. **Global Competitiveness**: Enhancing the country's position in the global market through unique offerings.<br />5. **Social Change**: Addressing societal challenges with creative solutions, improving quality of life.<br /><br />Question Four<br /><br />a) What is a copyright? What type of material does it cover? (5 marks)<br /><br />A copyright is a legal right granted to creators for the protection of their original works. It covers literary, musical, artistic, and certain other intellectual works, including books, music, films, software, and paintings.<br /><br />b) When is franchising appropriate, from the business owner's point of view? Provide an example. (5 marks)<br /><br />Franchising is appropriate when a business owner wants to expand rapidly with reduced financial risk and operational involvement. For example, McDonald's uses franchising to grow its brand globally while franchisees manage individual locations.<br /><br />Briefly write short notes on the following terminologies:<br /><br />(1) Essentials business traits of a successful entrepreneur (3 marks)<br /><br />Successful entrepreneurs possess traits such as resilience, adaptability, vision, leadership, and effective communication skills.<br /><br />(b) Entrepreneurial stress (3 marks)<br /><br />Entrepreneurial stress arises from the pressures of managing a business, including financial uncertainties, workload, and decision-making responsibilities.<br /><br />(c) Intellectual property rights (3 marks)<br /><br />Intellectual property rights protect creations of the mind, such as inventions, designs, and brands, granting exclusive rights to the creators.<br /><br />(d) Business plan (3 marks)<br /><br />A business plan is a formal document outlining a company's goals, strategies, target market, financial projections, and operational plans.<br /><br />(e) Social entrepreneurship (3 marks)<br /><br />Social entrepreneurship involves creating and running businesses with the primary aim of addressing social issues and generating positive social impact.