Observation

Some candidates attempted and did well in the question while others could not distinguish between entrepreneur and entrepreneurship.

The responses expected from candidates are:

2(a)      Difference between entrepreneur and entrepreneurship:

An entrepreneur is a person who organizes and manages a business undertaking,
assuming the risk for the sake of profit while entrepreneurship is a process/act/practice of organizing the factors of production and taking risk to create wealth.         

             (b)       The sources of finance to an entrepreneur:

(i)         Personal savings - Finance could be obtained from personal savings of the
owner of a business;
(ii)        Loans from friends and relations - The business owner can obtain finance
from friends and relations;
(iii)       Retained profit - Undistributed profits can be ploughed back into the enterprise;
(iv)       Loans from Banks - Funding of firms is possible by seeking for loans from
commercial banks;
(v)        Debt factoring - This is the process where the entrepreneur engages a factor to sell his/her debts at a discount;
(vi)       Bank overdraft - This is a situation where firms could withdraw over and
above the balance in the current account;
(vii)      Trade credits - The entrepreneur either buy raw materials or lease equipment
and pays for it later;
(viii)     Grants and subsidies – an entrepreneur could raise finance through government grants and subsidies;
(ix)       Family inheritance – An entrepreneur could raise finance from sales of family assets;

(x)        Prepayments – An entrepreneur could raise finance through advance payments from customers.