S.6 Ent. P230 UNEB Questions

P230/1
ENTREPRENEURSHIP
EDUCATION
Paper 1
Nov/Dec 2015
3 hours
UGANDA NATIONAL EXAMINATIONS BOARD
Uganda Advanced Certificate of Education
INSTRUCTIONS TO CANDIDATES
This paper consists of two sections; A and B.
Answer five questions only.
Section A is compulsory. Answers to this section should be precise.
Answer four questions from section B.
Credit will be given for use of relevant diagrams and illustrations.
Any additional question(s) answered will not be marked.
SECTION A (20 MARKS)
Answer all questions in this section
1. (a) (i) Distinguish between an entrepreneur and an entrepreneur.
(ii) Mention any two management skills of an entrepreneur.
(b) (i) State the purpose of an insurance policy to an entrepreneur.
(ii) Under what three circumstances may an insurance policy be

terminated?
(c) (i) What is a distribution channel as an element of the marketing mix?
(ii) Mention any three types of distribution channels used by
entrepreneurs in Uganda.
(d) Identify any four competencies that should be displayed by an applicant
during an interview.
(e) (i) What are debt instruments in relation to capital markets?
(ii) List any three examples of debt instruments used in capital markets
in Uganda.
SECTION B (80 MARKS)
2. (a) Explain the services offered by the different support
organizations to entrepreneurs in Uganda.
(b) Examine the demographic factors that influence entrepreneurs’ business
opportunities in Uganda.
3. (a) Describe the characteristics of a good business opportunity.
(b) Why is it necessary for an entrepreneur to conduct a financial feasibility
study after identifying a business opportunity
4. (a) Explain the various strategies used by entrepreneurs to maintain
consumer acceptance and loyalty in Uganda.
(b) Assess the impact of competition in entrepreneurship.
5. (a) Explain the importance of an action plan to an entrepreneur.
(b) What challenges are faced by entrepreneurs when implementing
business plans?
6. (a) Describe the different types of indirect taxes paid by
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(b) How does the government of Uganda benefit from the taxes imposed on
entrepreneurs?
7. (a) Why should an entrepreneur carry out market research before
starting a business?
(b) Describe the methods that entrepreneurs should use when carrying out
market research
P230/2
ENTREPRENEURSHIP
EDUCATION
Paper 2
Nov./Dec.2015
3 hours
Answer four questions only.
All questions carry equal marks.
1. You plan to start a Plastic and Waste Management Project in your
community.
(a) State the;
(i) Vision,
(ii) Mission and
of the business.
(b) Prepare GEPIC structure advocacy of the community.
(c) Draw a program for the official launch of the project by the District
Environment Officer.
(d) Formulate guidelines for ensuring safety and security of your employees
at the work place.
2. Nakawa Trading Co. which plans to start a business, has availed the
following projected details for the six months of the year, 2016.
I. Cash at bank Shs 4,000,000as at 1st Jan 2016.
II. Cash sales for January 2016, Shs 5,500,000. The sales are expected
to increase by shs 500,000 every month. All sales will be by cash.
III. Capitalisation loan to be acquired from Stanbic Bank in February,
2016, shs 5,000,000.
IV. Purchase of start-up assets during the month of February 2016 shs
5,000,000.
V. Monthly payments starting with January 2016.
Shs
Salary and wages 1,500,000
Rent 500,000
Advertising 150,000
VI. pre-operating expenses to be paid January 2016 shs 4,200,000.
VII. Monthly loan repayments shs 600,000 will begin June 2016.
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VIII. Purchases occur in the month of sale and are expected to be 75% of
each month’s projected sales. Purchases will be paid for after one
month of purchase.
Required;
(a) Prepare a Cash Flow Statement for Nakawa Trading Co. for the period
January to June, 2016.
(b) Explain the importance of the Cash Flow Statement to Nakawa Trading
Co. (05 marks)
3. You have decided to start a medium scale maize milling business in your
village.
(a) Prepare guidelines that you will follow to ensure gender balance of
employees in the business.
(b) What measures will you put in place to maintain a competitive edge of
the business over other similar businesses?
(c) Identify other business opportunities which may arise from the existence
of your business.
(d) Write instructions that your employees should observe for proper
maintenance of the milling machine.
4. You intend to start a juice processing plant in your home town.
(a) Prepare a production plan for the business.
(b) Estimate the start-up expenses for the business.
(c) Place an order to your supplier of fruits for the business.
(d) Draft rules that your employees will follow for effective time management
in the business.
5. The following balances were extracted from the financial statements of
Moses Owori’s business at the end of 2014.
Shs
Sales 288,000,000
Total fixed assets 65,500,000
Average debtors 90,000,000
Opening stock (1/1/2014) 40,200,000
Closing stock (31/12/2014) 50,400,000
Cost of sales 201,600,000
Total current assets 36,100,000
Equity capital 68,400,000
Total current liabilities 16,800,000
Net profit before interest and tax 40,600,000
Long term liabilities 38,500,000
Interest expense for the year 5,700,000
Required:
(a) Compute the following ratios for the business.
(i) Gross profit margin,
(ii) Stock turnover,
(iii) Debtors collection days,
(iv) Leverage ratio,
(v) Interest cover,
(vi) Working capital ratio,
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(vii) Net profit margin.
(b) Interpret the following ratios using your results in 5(a) above;
(i) Stock turnover,
(ii) Interest cover.
6. You have been hired as a Human Resource Manager of DAKS enterprises
which is experiencing a high labour turnover.
(a) Draft a questionnaire to find out the causes of the high labour turnover
in the enterprises.
prepare a job specification for an accountant of the business.
(b) Advise management on strategies that should be adopted to improve the
welfare of the employees.
(c) Design a procedure that should be followed by management when
handling indisciplined employees of the enterprise.
P230/3
ENTREPRENEURSHIP
EDUCATION
Paper 3
Nov./Dec.2015
3 hours
INSTRUCTIONS TO CANDIDATES:
This paper consists of three sections; A, B and C.
Answer four questions only. All questions carry equal marks.
Section A is compulsory. Answer any three questions from sections B and C,
choosing at least one from each section.
SECTION A: CASE STUDY
Answer all parts of this section
1. Read the case study below and answer the questions that follow:
Elizabeth, an orphan, grew into a successful Social Entrepreneur. As a
youth, she performed all types of work and associated with many people in
her community. This enabled her to acquire diverse skills in production,
marketing, customer care and ability o identify business opportunities. She
also developed good interpersonal and effective communication skills and
ability to speak many languages.
Having scanned the environment around her, Elizabeth started a goat
rearing project using her scarce resources. The project picked up after five
years and Elizabeth hatched an idea of involving the entire community
around her to improve their livelihood.
She organized a meeting and shared her intended community development
plan. Some members expressed fears that there were limited benefits from
the proposed project, that it was exploitative, unsustainable and risky. The
majority, however, agreed that it was a just, rewarding, participatory and
self-sustaining project, open to all members of the community, irrespective
of one’s gender, tribe, and socio-economic status, religious and political
4
affiliation. The only condition was that a member would receive a free goat
from the initial donor, breed it and pass on its female off-spring to the next
beneficiary.
Members agreed to insure the project against risks. In the event of a
goat producing only male off-springs, Elizabeth promised to exchange a
female goat for two of these. At the inception of the project, Elizabeth
donated 100 goats at a colourful ceremony attended by political, religious
and clan leaders.
After two years, the community realized a number of benefits from the
project; development of livestock and pasture management skills, increased
incomes through the sale of animal products, improved nutrition and food
security, cheap energy and manure from animal droppings.
During the annual community celebrations, Elizabeth was declared the
heroine of the year for initiating a life-changing project.
(a) Identify the different skills that Elizabeth employed to transform her
community.
(b) Explain the strategies put in place to ensure the sustainability of the
project.
(c) Giving reasons for your answer, suggest insurance policies that should
be taken to minimize risks in the community project.
(d) In what ways did the project contribute to the development of the
community?
SECTION B: SCHOOL BUSINESS CLUB
Answer at least one question from this section.
2. Based on your School Entrepreneurship Club Business Project,
(a) Describe the project.
(b) State the objectives of the business.
(c) Describe the entrepreneurship skills that were applied in the business.
(d) (i) What challenges were faced by the business?
3. In relation to your School Entrepreneurship Club Business Project;
(a) Describe the business project.
(b) State the achievements of the business.
(c) Use SWOT analysis to evaluate the business.
(d) What measures were used to maintain the quality of the product(s).
SECTION C: FIELD ATTACHMENT/FIELD TRIP
4. For any business enterprise you were attached to;
(a) Describe the nature of the business.
(b) (i) List any five operating expenses of the business.
(ii) Suggest measures that should be taken by the entrepreneur to
minimize the expenses mentioned in 4(b) (i) above.
(c) Mention any five ways used to motivate the employees of the business.
(d) Describe the customer care services offered by the business.
5. With reference to any one business field trip you made either as an
individual or group;
(a) Describe the business.
(b) Explain the forms of change that have affected the business.
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(c) Assess the impact of the changes mentioned in 5(b) above on the
business.
(d) Advise the entrepreneur on any six ways of maintaining the market share
of the business.
P230/1
ENTREPRENEURSHIP
EDUCATION
Paper 1
Nov/Dec 2014
3 hours
Any additional question(s) answered will not be marked
SECTION A: (20 MARKS)
1. (a) (i) Give any two economic environment factors that influence
entrepreneurs’ decisions in your country.
(ii) Name any two organizations that support entrepreneurs in
Uganda.
(b) (i) Define the term business opportunity as used in
entrepreneurship.
(ii) State any three characteristics of a good business
opportunity.
(c) (i) Distinguish between a production plan and a financial plan.
(ii) Mention any two components of a financial plan.
(d) (i) Differentiate tax evasion from tax avoidance.
(ii) Outline any two forms of tax evasion in Uganda.
(e) (i) What is meant by sustainable competitive advantage?

(ii) List any three ways in which an entrepreneur can sustain a
competitive advantage in business.
SECTION B: (80 MARKS)
Answer any four questions from this section
2. (a) Explain the principles that should be observed by entrepreneurs
for successful business negotiations.
(b) What challenges are faced by entrepreneurs when carrying out business
negotiations?
3. (a) Describe the characteristics of successful social entrepreneurs in
your community.
(b) Explain the responsibilities of social entrepreneurs to the community.
4. (a) Examine the factors that affect women participation in
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entrepreneurial activities in Uganda.
(b) Suggest measures that should be taken to promote gender balance in
5. (a) Describe the characteristics of appropriate technology used by
(b) Asses the factors that influence the choice of technology used by
entrepreneurs in the production process.
6. (a) Describe the tools that should be used by entrepreneurs for effective
marketing strategy.
(b) Explain the merits of market segmentation to entrepreneurs.
7. (a) What are the functions of the Capital Markets Authority in
Uganda?
(b) Explain the benefits of collective investment schemes to entrepreneurs.
P230/2
ENTREPRENEURSHIP
EDUCATION
Paper 2
Nov./Dec.2014
3 hours
1. You plan to start a business based on the environment in your community.
(a) What factors will you consider when formulating your business idea
other than the market?
(b) Describe the personal entrepreneurship skills you will use to make your
business successful?
(c) State the social concerns your business will meet.
(d) Explain the aspects you will address in your business implementation
planning.
2. You have agreed with your family to use family resources to start a
wholesale shop in your community.
(a) Identify the family resources you will use in the business.
(b) How will the family benefit from the business?
(c) What challenges are you likely to face with the family involvement in the
business?
(d) Suggest measures you will put in place to ensure success of the
business.
3. You intend to start a restaurant business in your home town.
(a) State the vision of your business.
(b) Give four goals of your business.
(c) Prepare a Financial Plan for your business.
(d) Explain the marketing strategies you will use in the business.
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4. Tell enterprises has availed you with the following projections for the
months of July, August, September and October 2014.
I. On July 1st 2014, cash balance shs 26,000,000.
II. The sales Manager expects to sell goods on credit worth shs 40,000,000
monthly. Payment from credit customers is expected as follows: 60% of
credit sales in the month of sale and the balance in the month following
sale.
III. The finance Manager expects to obtain two loans of shs 20,000,000 in
each of the months of August and October 2014.
IV. Monthly cash sales are expected to be shs 60,000,000. A commission
of 10% is paid to salesmen each time cash if received.
V. Monthly cash purchases worth shs 40,500,000 are expected to be
made.
VI. A delivery van is to be bought in the month of August 2014 at a cost of
shs 35,000,000.
VII. Monthly wage bill is estimated to be shs 12,500,000. An increase of
10% is expected in the month of October 2014.
VIII. A loan interest of 5% per month is payable in the month following
acquisition of the loan.
IX. Expansion of business buildings expected cost shs 6,200,000 in the
month of July 2014 and shs 30,000,000 in the month of August.
X. General expenses are expected to amount to shs 7,100,000 per month.
All expenses are paid in the month in which they are incurred.
XI. Income tax for the 1st quarter of the year shs 12,000,000 to be paid in
September 2014.
Required:
(a) Prepare a Cash flow statement (cash budget) for Tell Enterprises for the
period of July to October 2014.
(b) Suggest to Tell Enterprises five ways of managing cash short falls in the
cash flow statement.
5. The treasurer for the Teachers’ Canteen in your school presented the
following financial statements to the members at their meeting.
Teachers’ Canteen Income Statement for the period Ended
31st Dec 2013.
(SUMMARY)
Shs
Net sales 240,000,000
Less cost of goods sold 180,000,000
Gross profit 60,000,000
Less operation expenses 25,000,000
Net profit 35,000,000
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Note:
The opening stock as at the start of 2013 was shs 23,000,000
Teachers’ canteen balance sheet

As at 31.12.2013
Shs Shs Fixed Assets Shs
Capital 89,000,000 Buildings 82,000,000

Add net profit 35,000,000 Furniture 50,000,000
124,000,000
Less drawings 10,000,000 Current Assets
114,000,000
Stock 47,000,000
Long-Term Liabilities: Debtors 38,000,000
5 years loan from teachers’ Bank 25,000,000
SACCO 72,000,000
Current Liabilities: Cash 18,000,000
Bank overdraft 34,000,000
Creditors 40,000,000
260,000,000 260,000,000
Required:
(a) Calculate the following ratios;
(i) Gross profit margin,
(ii) Net profit to sales
(iii) Net profit to owners’ equity.
(iv) Acid test
(v) Stock turnover.
(vi) Fixed assets turnover
(vii) Debt to owners’ equity (gearing ratio)
(b) Interpret the following ratios in relation to 5 (a) above:
(i) Debt to owner’s equity.
(ii) Net profit to sales.
6. (a) There is a concern about tax evasion among entrepreneurs in
your district. As a tax compliant entrepreneur, the District
Trade Officer has requested you to address entrepreneurs.
(i) Give the meaning of tax evasion.
(ii) Mention three examples of tax evasion practiced by entrepreneurs
in your community.
(iii) Explain the consequences of tax evasion to the businesses.
(iv) Suggest to the entrepreneurs the actions they should take to
increase the level of tax compliance.
(b) The following VAT exclusive transactions were availed to you by VAT
registered businesses in your community for the month of July 2014.
I. Musa bought goods worth shs 40,000,000
II. Musa sold the same goods to Suba for shs 58,000,000
III. Suba sold the same goods to Mweso the retailer for shs 70,000,000
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IV. Mweso sold the goods to the final consumer for shs 84,000,000
Required:
(a) Using the VAT for the entrepreneurs the VAT chargeable for the value
added at each stage.
(b) Advise Mweso on the gross sales value for his goods to the consumer.
P230/3
ENTREPRENEURSHIP
EDUCATION
Paper 3
Nov./Dec.2014
3 hours
ENTREPRENEURSHIP EDUCATION
Answer all parts of this question
1. Read the case study below and answer the questions that follow.
Maliya owns and operates MALI hardware shop strategically located in
Mukono municipality. It is well stocked with plumbing materials, electrical
equipment and general hardware tools.
Maliya employs a cashier, two sales assistants, two casual labourers and
two security guards. The workers are promptly paid their monthly salary
and are provided with lunch, transport and medical allowance. Maliya
supervises the workers, orders and receives materials and authorizes
payment. She conducts weekly stock-taking, keeps valuable business
documents in a safe, monitors the flow of stock, determines the re-order
level and lead time, and holds weekly meetings with workers.
Maliya ensures that customers are satisfactory served. Regular customers

receive credit and sometimes have their products delivered to their
premises. As a result of constant advertising, the hardware has also
attracted schools, churches and hospitals as its customers.
Given the MALI hardware shop deals with many cash transactions,
physical security systems have been put in place. Any cash beyond one
million shillings is banked. There are plans to insure the business.
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Due to the high profits enjoyed by MALI hardware shop, new entrepreneurs
from the area have invested in similar businesses.
Questions
(a) How are the workers of MALI hardware shop motivated?
(b) Mention the management tasks performed by Maliya in the business.
(c) Identify the measures taken by Maliya to control inventory in the
business.
(d) Explain the marketing strategies used in MALI hardware shop.
(e) Giving reasons for your answer, advise Maliya on the insurance policies
that should be taken for the business.
(f) Why may MALI hardware be able to survive despite the competition from
the new hardware shops in the area?
SECTION
SCHOOL BUSINESS CLUB
Answer at least one question from this section
2. With reference to the School business project owned and operated by your
entrepreneurship club;
(a) Describe the business project.
(b) Explain the measures that were taken to ensure proper cash
management.
(c) Describe the techniques which were used to promote sales.
(d) (i) What risks were faced by the business?
(ii) Outline the precautions that were taken to minimize the risks
mentioned in 2d(i) above.
3. In relation to the school business club project in which you participated;
(a) Give the goals of the project.
(b) State the measures that were adopted to maximize profits.
(c) Describe the marketing plan which was used by the business.
(d) Explain the measures that were taken to ensure proper management of
inventory.
(e) What strategies were used to maintain a large market share amidst
competition?
SECTION C
FIELD ATTACHMENT/FIELD TRIP
(a) Describe the nature of the business.
(b) (i) Name any two tools/equipment used in the business.
(ii) State the purpose of each of the equipment/tools named in
b(i) above.
(c) Explain the methods the business uses to manage its credit sales.
(d) What measures does the business use to ensure discipline of its
employees?
(e) Outline the indicators of time wastage in the business.
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5. For any one business trip you have made as a n individual or group;
(a) State the objectives of the field trip.
(b) Describe the lay-out of the business.
(c) (i) What challenges are faced by the business?
(ii) Recommend to the entrepreneur, the ways of handling the challenges
mentioned in c(i) above.
(d) Explain the measures used by the business to ensure satisfaction of its
customers.
(e) Outline the factors the business considers when recruiting its employees.
P230/1
ENTREPRENEURSHIP
EDUCATION
Paper 1
Nov/Dec 2013
3 hours
SECTION A: (20 MARKS)
1. (a) (i) State any two environmental standards that should be
observed by entrepreneurs when establishing their businesses.
(ii) Give any two responsibilities of businesses to the natural
environment.
(b) (i) Define the term effective communication.
(ii) State any three features of effective communication.
(c) Distinguish between the following:
(i) Stock reconciliation and stock taking.
(ii) Re-order level and lead time.
(d) The following information was extracted from the books of CLASSIC
FURNITURE enterprises for the year ending 31/12/2012.
Shs
Net sales 4,500,000
Discount received 150,000
Discount allowed 225,000
Calculate the:
(i) Gross profit,
(ii) Net profit.
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(e) DINGI-DINGI Group of entertainers; books of accounts showed the
following information as at 30th June 2012.
Shs
Machinery 40,000,000
Debtors 7,200,000
Cash at bank 8,000,000
Closing stock 4,800,000
Calculate the
(i) Liquidity ratio,
(ii) Quick acid ratio.
SECTION B (80 MARKS)
Answer any four questions from this section
2. (a) Describe the elements of a marketing mix.
(b) Explain the factors that determine a target market population.
3. (a) Distinguish between a private limited company and a public
limited company.
(b) Examine the merits and demerits of a public limited company.
4. (a) Describe the principles of a good tax system.
(b) Explain the need for taxation to the government.
5. (a) Differentiate between job performance standards and job
description.
(b) Explain the various methods used in paying workers.
6. (a) Describe the different types of business laws used in your
7. country.
(b) Explain the importance f business laws in your country.
8. (a) Outline the various distribution channels used by entrepreneurs.
(b) Explain the factors that influence the choice of distribution channel for a
product.
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P230/2
ENTREPRENEURSHIP
EDUCATION
Paper 2
Nov./Dec.2014
3 hours
1. You have a goat rearing project and you would like to introduce exotic
breeds.
(a) Write a letter to the Veterinary Officer seeking technical advice on your
project.
(b) Design a market survey guide for your project.
(c) Prepare an advert for the post of a Farm Manager.
(d) Draw up the duties and responsibilities of the Manager.
2. The following information relates to Umoja Investments for the months of
May, June, July and August 2012.
(i) Opening balance as at 1st May 2012 was shs 320,000.
(ii) Output of 800, 900, 700 and 100 units were sold at shs 500 each
during the months of May, June, July and August respectively.
(iii) Loans of shs 500,000 and shs 300,000, shs 80,000 and Inland Bank
Ld in June and August.
(iv) Receipts from debtors of shs 100,000, shs 80,000 and shs 30,000
were registered for the months of June, July and August respectively.
(v) Purchases of 700, 800, 90 and 1,000 units of raw materials were
made in the months of MAY, June, July and Agust respectively at a
cost of shs 200 per unit.
(vi) A machine was bought and paid for in July for shs 1,000,000.
(vii) Monthly fixed costs of shhs 20,000 per month were paid.
(viii) Monthly rent receivable from a shoe-shiner shs 50,000.
Required:
(a) Prepare a statement showing cash inflows and cash outflows for the
months of May to August 2012.
(b) Comment on the cash position of Umoja Investments Ltd for the four
months.
3. You have shifted your fuel station from one location to another.
(a) Using an appropriate medium, inform your customers about the new
location.
(b) Draw up a promotional programme for your products.
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(c) Prepare safety guidelines to be followed by your employees.
(d) Design an invoice to be used by your pump attendants.
4. The following transactions were extracted from the books of Mukene and
Sons Ltd for the month of April 2012.
April 1st balance b/d from March.
Cash at hand shs 1,200,000
Cash at bank shs 5,500,000
Debtors:
Njobe shs 2,000,000
Lindah shs 2,600,000
Kikayo shs 460,000
Creditors:
Tom shs 1,100,000
Jane shs 2,200,000
Mark shs 500,000
2012
April 2nd Njobe paid his account by cheque less 2½ cash discount.
10th Issued a cheque to Mark in full statement of his debt
deducting 5% cash discount.
th
12 Withdrew cash for business use shs 1,000,000
16th received a cheque from Lindah in full settlement of her
debt less 2½ cash discount.
20th Cash sales deposited directly on bank account shs
6,000,000.
23rd Kikayo cleared his account by cash less 2% cash discount.
28th Issued a cheque to Tom deducting 2% cash discount.
29th Banked shs 100,000.
30th Paid Jane by cheque less 2% cash discount.
Required:
(a) Prepare Mukene’s Cash Book.
(b) Post the transactions to relevant ledger accounts and balance them off.
(c) Determine the total value of credit sales.
5. You have mobilized students to form ma partnership business with capital
of shs 5,000,000.
(a) Design a one-month’s Action Plan for the business.
(b) Draft a Partnership Deed for the business.
(c) Mr. Kato on 3.05.2012 bought the following items on credit:
5kgs of sugar at shs 3,200 per kg.
6 loaves of bread at shs 1,200 each and
2 packets of coffee at shs 800 per packet.
Prepare an invoice to record the transactions.
(d) Formulate a financial policy for proper management of business funds.
6. For any business you intend to establish:
(a) (i) State the mission statement of the business.
(ii) Give a general description of the business.
(b) Prepare the:
(i) Production,
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(ii) Marketing,
(iii) Management and administration
Plans of your proposed business.
P230/3
ENTREPRENEURSHIP
EDUCATION
Paper 3
Nov./Dec.2013
3 hours
Answer all parts of this section
1. Read the case study of Kirabo Diary Farm and answer the questions that
follow:
Kirabo Diary Farm is located in Nyabushozi, Kiruhura District in
Western uganda. The Farm is now owned and operated by Kirabo Flavia, a
daughter of the Mwesigye John. The farm employs twenty 920) workers
recruited from the local community.
It was started in the late 1960s by Kirabo’s grandfather. Kirabo took
over the farm when it had eight cows. She has been adding to the herd
since that time.
Although the farm owns two large buildings and diary cows, it is
considered a small business by diary farm standards.
The farm occupies 178 acres of land. Flavia ploughs the land and plants
elephant grass to feed the present herd of Friesian, Jersey diary cows and
five replacement heifers.
The average production is 2,000 litres of milk per cow per year. The
product is sold to local consumers and to a local milk packaging agent who
takes it to his principal consumer in Kampala. The milk is sold at market
rates.
On December 31st 2012 Kirabo’s records showed the following:
Fixed assets i.e. land, buildings; farm machinery, milk tanks, milk
equipment and cows valued at shs 190,000,000. In addition there was shs
3,450,000 in cash, shs 3,450,000 in accounts receivable owed to the farm
by milk buyers and prepaid insurance of shs 5,560,000.
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The current liabilities for the farm were shs 10,000,000 on short term
loan and shs 900,000 on salaries and wages owed to farm workers. The
long term liabilities were shs 55,000,000 on long term loan.
The income from milk sales was worth shs 134,000,000, the direct costs
of milk production (cost of goods sold) were shs 42,000,000 and the
operating expenses were shs 38,000,000. The net profit for the year was
shs 54,000,000.
Many diary farms are now being established and others expanded in the
nearby areas. These may pose a lot of competition to Kirabo Diary Farm,
hence reduce its market share. Kirabo has fears that the sales income may
greatly reduce.
(a) Use the above information to develop a balance sheet statement for
Kirabo Diary Farm.
(b) Give five reasons why financial record keeping is important for Kirabo
Diary Farm.
(c) State three reasons for Kirabo’s choice of the type of business.
(d) Explain any three benefits Kirabo Diary Farm gets from the local
community.
(e) What other possible business opportunities can Kirabo undertake to
effectively utilize the 178 acres of land?
(f) Advise Kirabo on five ways of maintaining and expanding the market
share.
2. with reference to the business project owned by your school business club:
(a) Give the general description of the business project.
(b) Describe the production process of the business project.
(c) Explain four internal control systems used in the project to ensure
quality products/service.
(d) With examples, give three types of costs incurred by the business project
during the production of goods and services.
(e) (i) State the nature of product packaging used by the business.
(ii) Give five reasons for the choice of packaging in (e) (i) above.
3. In relation to a business project owned by your school club;
(a) Describe the business project you carried out.
(b) Explain four sources of finance for the business.
(c) Give five factors that favoured the establishment of the business project
in the school. (
(d) Describe four operational activities of the business project.
(e) (i) Name any three hazardous substances resulting from the
operations of the business.
(ii) Explain five measures taken to manage the hazardous
substances mentioned in (e) (i) above.
SECTION C: FIELD ATTACHMENT/FIELD TRIP
4. For any field attachment carried out;
(a) Give the general description of the business you were attached to.
17
(b) State any five forms of communication used in the business.
(c) Describe five methods of sales promotion used by the business you were
attached to.
(d) Explain the control measures used to ensure proper management of cash
in the business.
(e) (i) List any three source documents used by the business.
(ii) Explain the use of the source documents mentioned in (e) (i) above.
5. For any one business field trip made as an individual or a group:
(a) (i) State any two objectives of the field trip.
(ii) Describe the business you visited.
(iii) Draw a sketch of the physical layout of the business you
visited.
(b) Describe the steps followed in the purchasing plan of the business.
(c) (i) Identify any three taxes paid by the business.
(ii) Advise the business owner on the importance of paying
taxes.
(d) State three indicators of good customer care in the business you visited.
(e) Give three reasons why the business should cope with change.
P230/1
ENTREPRENEURSHIP
EDUCATION
Paper 1
Nov/Dec 2012
3 hours
1. You have established a business that provides outside catering services and
recreational facilities.
(a) Prepare an advert for the business.
(b) Make a work order form for your business.
(c) Prepare a menu for your business.
(d) Design a certificate of recognition to be awarded to an employee for
excellent performance.
18
2. Muchafu an entrepreneur, uses an analyzed Petty Cash Book with columns
for office entertainment, postage and stationery, motor expenses, cleaning,
ledger accounts. The petty cash system is based on an imprest of shs
1,000,000 which he replenishes on the last day of the month. Muchafu
supplies you with the following information for the month of April 2012.
2012 shs
April 1 two crates of soda 40,000
3 postage stamps 15,000
4 one ream of typing paper 30,000
6 Komu-settlement account 150,000
7 office cleaning materials 20,000
8 parking fee 40,000
10 three cartoons of mineral water 20,000
14 car polish 30,000
16 brake fluid and oil 70,000
18 registered mail 20,000
20 office carpet shampoo 10,000
21 cakes and drinking straws 70,000
25 serviettes and disposable cups 70,000
27 Obia-settlement of account 250,000
28 Alubo-settlement of account 60,000
29 carbon paper (one packet) 40,000
Required:
(a) Record the above transactions in a ruled petty cash book, duly balanced.
(b) Show the necessary accounts in the ledger.
3. You want to revive a meat packing factory by inviting shareholders,
restocking the farm, installing new machinery recruiting employees.
(a) Write a notice inviting shareholders for a meeting to discuss the revival
of the project.
(b) Develop a programme for the recruitment of employees.
(c) Design a schedule for the routine maintenance of machines.
(d) Prepare an organizational plan for the factory.
19
4. A retail business had the following information in the year ended
30.06.2012.
Particulars shs
Sales 3,600,000
Land and buildings 790,000
Capital 1,200,000
Plant and machinery 600,000
Bank loan 1,430,000
Motor cycle 320,000
Drawings 260,000
Furniture 400,000
Net profit for the year 600,000
Closing stock (30.06.2012) 600,000
Creditors 540,000
Debtors 500,000
Bank overdraft (inland bank) 400,000
Bank balance (coastal bank) 360,000
Cash balance 350,000
Required:
(a) Prepare the balance sheet as at 30.06.2012.
(b) Calculate:
(i) Working capital
(ii) Return on capital employed.
(iii) Average collection period.
5. You are operating a micro-finance institution offering short-term loans to
farmers and retailers in your locality.
(a) Design a deposit slip to be used by your clients.
(b) Design a loan repayment schedule to be followed by your clients.
(c) Prepare terms ad conditions for lending.
(d) Advertise the sale of a motor vehicle which was used by a client as
security but has defaulted.
20
P230/1
ENTREPRENEURSHIP
EDUCATION
Paper 1
Nov./Dec.2011
3 hours
1. Your motor vehicle washing bay has registered customers complaints about
delayed services and theft of their roperties and motor vehicle parts:
(a) Prepare a programme for one day training and sensitization worskshop
intended to improve service delivery in your business
(b) Advertise a tender for a new supplier of water to your business.
(c) Design a work order form to be used by your customers.
(d) Develop new security guidelines to be observed at the work place.
2. The following transactions ewere exracted from the books of ABU
ENTERPRISES LIMITED for the month of novemeber 2010.
Shs
Nov 1 bought goods on credit from Addy 30,000,000
2 Bought goods on credit from Peter 34,500,000
3 sold goods on credit to Omar 43,000,000
5 Some of the goods were returned to Addy 23,000,000
10 Omar returned goods worth 5,200,000
11 Sold goods on credit from John 63,400,000
16Credit purchases from Abel 21,000,000
19 Some goods were returned to Peter 32,000,000
21 Andrew returned goods worth 4,500,000
23 Credit sales to Annah 32,000,000
28 Annah returned goods worth 53,000,000
31 Returned goods to Levi worth 3,500,000
Required;
(a) Prepare:
(i) Sales Day Book,
(ii) Purchases Day Book
(iii) Return Inwards Book
(iv) Return Outwards Book
(b) Post the above transactions into the:
(i) Purchases Account,
21
(ii) Sales Account
(iii)
3. You have secured a loan of shs 100,000 to establish a partnership business
dealing in rice processing.
(a) Prepare a partnership deed for the business.
(b) Draft a capital expenditure budget for your business.
(c) Write a notice inviting prospective partners for a meeting.
(d) Prepare a purchase order for a milling machine
4. The following information was extracted from the books of MUTEMA’s
business for the month of March 2011.
2011 shs
March 1 balances brought down from
February 2011:
Bank balance 6,540,000
Debtors accounts
k. Oyende 1,200,000
L. Atikwi 2,800,000
S. Mafuta 400,000
Creditors Accounts
T. Olupot 600,000
L.Kairo 4,400,000
J. Mukandoli 1,000,000
March 2 K. Oyende settled his account by cheque less 2½%cash
discount.
5 Sold goods by cheque shs 2,000,000.
8 Paid J. Mukandoli by cheque after deducting 5% cash
discount
9 bought goods on credit from Makula and Sons shs
3,000,000
11 Withdrew shs 1,000,000 from bank for business use.
16 S. Atikwi settled her account by cheque less 2½% cash
discount
18 Sold goods on credit to Kakinda shs 420,000
25 Paid wages in cash shs 920,000
26 S.Mafuta paid cash less 5% cash discount
28 Paid Makula and sons the amount due by cheque less 5%
cash discount.
29 Kakinda paid the amount due from him by cash less 2%
cash discount.
30 Paid L. Kairo by cheque less 2½ cash discount
Required:
(a) Write Mutema’s Three Column Cash Book and balance it off as at the
end of the month.
(b) Show all the relevant accounts in the;
(i) Sales Ledger
(ii) Purchases ledger
22
(iii) General Ledger
5. You wish to expand your small-scale cooking oil processing factory to meet
the increasing demand.
(a) Write a letter to the District Engineer seeking technical advice on the
proposed expansion.
(b) Design a financial plan for the expansion of the factory.
(c) Prepare an operational budget to finance the expansion of the factory.
Draw a new organizational chart for the expanded business.
P230/1
ENTREPRENEURSHIP
EDUCATION
Paper 1
Nov./Dec.2010
3 hours
1. You own a factory producing plastic products and customers are
complaining about the quality of your products.
(a) Write a memo to the production manager about the complaints raised by
customers.
(b) Prepare guidelines to be followed by the production manager for
improving the quality of the products.
(c) Design a market survey guide for your new products.
(d) Design a new stock card for your improved products.
23
2. The following balances were extracted from the records of Katungi’s
business as at 31st December 2009
Shs
Sales 40,000,000
Purchases 35,000,000
Sales returns 500,000
Stock 1.1.2009 1,000,000
Provision for doubtful debts (1.1.2009) 80,000
Salaries and wages 3,000,000
Rates 600,000
Telephone 100,000
Shop fittings at cost 4,000,000
Motor van at cost 3,000,000
Debtors 980,000
Creditors 700,000
Bad debts 20,000
Capital 17,900,000
Cash at bank 300,000
Drawings 1,800,000
Purchases returns 620,000
Additional information
 Slaries and wages outstandings shs 500,000
 Stock as at 31.12.2009 shs 12,000,000
 Prepaid rates shs 50,000
 The provision for doubtful debts to be increased to 10% of debtors.
 Telephone bill outstanding shs 22,000
 Depreciate sho fittings at 10% per annum and motor van at 20% per
annum on cost.
Required:
(a) Prepare the Income Statement for Katungi’s business for the period
ended 31st Decemeber 2009.
(b) Determine the value of the following items as at 31.12.2009;
(i) Fixed assets,
(ii) Owner’s equity
(iii) Current assets
(c) Profit margin,
(d) Average credit period for urchases (assume 365 days in a year).
3. You are operating a large-scale retail business in beauty products with
agents in major towns of towns.
(a) Design a business card to be issued to your potential customers.
(b) Draw a day’s distribution schedule for your products.
(c) Design a delivery note for your products.
(d) Develop guidelines to be followed when selling your products on cedit.
24
4. The following information was extracted from the books of Jaribu
Enterprises for the month of April 2010.
Shs
April 1 Balances b/f from March
Cash at hand 4,800,000
Debtors
Agaba 1,200,000
Rhoda 2,800,000
Creditors
Annet 2,600,000
Ali 4,400,000
2 Agaba cleared his account by cheque after deducting 2½%
cash discount.
8 Withdrew cash for business use worth shs 400,000
14 Received cash from Rhoda in full settlement of her account
less 2% cash discount.
20 Paid cash for wages worth shs 1,300,000
26 Issued a cheque to Annet in full settlement of her account
less 3% cash discount.
28 Deposited cash into bank worth shs 1,000,000
30 Paid Ali by cash after deducting 2½% cash discount.
Required:
(a) Show the Journal entries and determine the capital at April 2010.
(b) Write up a three column cash book and balance it.

(c) Post the information to the relevant ledger accounts including discount
accounts, also fully balanced.
5. (a) You are a General Manager of motor garage that offers credit facilities to
customers as a sales promotion strategy.
(i) Prepare a credit recovery programme for the business.
(ii) Develop credit terms and conditions for your business.
(iii) Prepare a brochure to be issued to potential customers.
(b) Due to increased number of clients, you have decided to recruit an
Accounts Assistant. Write an appointment letter to the newly recruited
Accounts Assistant.
25
P230/1
ENTREPRENEURSHIP
EDUCATION
Paper 1
Nov./Dec.2009
3 hours
1. You have started a new mineral water bottling company competining with
other firms in the market:
(a) Give the mission statement of your company.
(b) Design an advert for promoting your products.
(c) Develop a programme for launching your products.
(d) Write a letter of credit to one of your customers who is complaining
about having been over invoiced.
2. The following balances were obtained from the books of GIFTLAND Holdings
on 31st December, 2008.
Shs
Sales 3,600,000
Purchases 5,000,000
Stock (01.10.2008) 600,000
Carriage on sales 600,000
Returns outwards 700,000
Returns inwards 800,000
General expenses 300,000
Debtors 900,000
Insurance 120,000
Creditors 600,000
Machinery 1,200,000
Stock (31.12.08) 980,000
Furniture and fittings 480,000
Advertising 100,000
Drawings 400,000
Cash in hand 240,000
26
Required to:
(a) Prepare a trading, profit & loss account for GIFTLAND Holdings for the
period ending 31st Decemeber, 2008.
(b) Prepare a Balance Sheet as at 31st December, 2008.
(c) Compute the:
(i) Stock turn-over,
(ii) Average number of days the stock was held before selling.
3. You are a farmer and have won a shs 10 million contract to supply poultry
products to UHURU Hotel:
(a) Prepare a Marketing Budget of shs 4,000,000 for one month.
(b) Prepare a Delivery Note for the initial supply of the products.
(c) Develop terms and conditions to be included in the contract with UHURU
Hotel.
(d) Thieves have broken into your farm and made off with more than half of
your chicken. How will you sustain the contract?
4. The following record of transactions was obtained from the books of ZUBUZI
firm:
2008
Jan 1 Commenced business with cash in hand shs 2,060,000 and
cash at bank shs 427,000.
2 Sold goods in cash shs 402,000
4 Withdrew cash from bank for business use worth shs 750,000
5 Received a cheque worth shs 283,000 from Omara.
7 Bought furniture in cash shs 37,500
9 Purchased a motorcycle by cheque shs 932,500
12 Received commission of shs 138,500 by cheque
18 Paid advertising expenses by cheque shs 139,000
20 Borrowed shs 500,000 cash from Kamau
22 Paid Oku shs 211,000 by cheque
23 Sold goods worth shs 299,000 and was paid by cheque.
25 Bought goods in cash shs 12,500
28 Withdrew cash shs 275,000
30 Paid wages in cash shs 135,000
Required to:
(a) Prepare a two-column cash book duly balanced.
(b) Interpret the current position of the firm’s bank balance in the two-
column cash book.
(c) Post the transactions into the relevant Ledger Accounts and balance
them off.
5. You are operating a small-scale business dealing in the production of
metallic products and you have found it necessary to expand it using a loan
obtained from your bank:
(a) Prepare a financial plan for your business. (
(b) Draw up a weekly distribution schedule for your products.
(c) Given that the expanded business requires more employees, prepare a
job advert for the post of purchasing manager.
27
(d) Design a programme for the induction of the newly recruited employees.
INTRODUCTION TO ENTREPRENEURSHIP
1. (a) Distinguish between entrepreneurship and entrepreneurship education.
(a) Explain the components of entrepreneurship education.
2. (a) Why entrepreneurship education is taught in schools.
(b) What is the role of entrepreneurship in economic development?
3. (a) what is meant by the term :Entrepreneurial culture”
(b) Explain the objectives for developing entrepreneurial culture.
4. (a) Examine the factors that determine the level of earning for different
careers.
(b) What should be considered when selecting a career?
5. (a) Distinguish between self employment and paid employment.
(b) Examine the merits and demerits of
(i) Self employment
(ii) Paid employment
6. (a) Explain the measures that are being taken to encourage self
employment.
(b) Why self employmen is is preferred to paid employment.
(c) Explain challenges faced by the private business in Uganda.
7. (a) Explain the supportive skills needed for different careers.
(b) Explain the causes of unemployment in your country.
(c) Suggest measures that should be undertaken to reduce unemployment.
8. (a) Write short notes on the following as used in entrepreneurship.
(i) Entrepreneur
(ii) Enterprising person
(iii) Intrapreneur
(b) Describe the various entrepreneurial characteristics.
9. (a) Explain the benefits of being an entrepreneur.
(b) Describe the major competences required for successful
entrepreneurship.
10. (a) Explain different types of entrepreneurs.
(b) Examine the factors favouring the growth and development of
entrepreneurship.
11. (a) Explain the causes of early failure of entrepreneurship ventures.
12. (a) Define change and describe three types of change.
(b) Explain the importance of change.
13. (a) Give the reasons as to why people resist change.
(b) Describe the steps involved in the change process.
14. (a) Examine the various techniques for copying up with change.
(b) What are the negative effects of change on business?
15. (a) Discuss the critical areas considered when planning for change.
(b) Examine the factors that bring about change.
16. (a) What are the benefits of creativity?
(b) Describe the various techniques for developing creative ability.
17. (a) What are the various obstacles to creativity?
28
(b) Describe the stages of creative process.
(c) Explain the characteristics of a creative process.
18. (a) Define innovation and explain the various types of innovation.
(b) What is the importance of innovation in business?
19. (a) Describe the various sources of innovation.
(b) Explain the major features of innovators.
20. (a) Explain the various ways of fostering innovation in small business?
(b) Why are small businesses more successful to use innovation than
business?
21. (a) Distinguish between motivation and entrepreneurial motivation.
(b) Describe the motivational process.
22. (a) Discuss the classical concepts of entrepreneurial motivation.
(b) Explain the behavioural and disadvantages of achievement motivation.
23. (a) Explain the advantages and disadvantages of achievement motivation.
(b) Describe factors that hinder entrepreneurial motivation.
24. (a) How can entrepreneurial motivation be fostered?
(b) Describe the various ways of developing entrepreneurial habits.
25. (a) Define the term risk and explain the various types of risks.
(b) Explain the basis for choosing a risky alternative.
26. (a) Describe the procedure for analyzing a risk situation.
(b) Explain the various risks faced by businesses in Uganda.
27. (a) What are the various ways of minimizing risks in a business?
(b) What are the factors considered when assessing risks?
28. (a) What are the benefits of delegating authority?
(b) Why do managers and subordinates fear delegation?
29. (a) Define the term negotiation and describe the various principles of
negotiation.
(b) Describe the negotiation procedure.
30. (a) Explain the challenges of negotiation.
(b) In what ways can the challenges of negotiation be overcome?
31. (a) What are the guidelines for effective actual negotiations?
(b) Explain the tactics that can be followed when negotiating with
customers.
32. (a) What tactics should the employer follow when setting salary
negotiation with employees?
(b) Explain the strategies or keys to successful negotiation.
33. (a) Describe the personal attributes for good negotiators.
(b) Explain the basic rules for negotiating with employees.
(c) Explain the negotiation skills.
34. (a) Distinguish between ethics and business ethics.
(b) Describe the principles of good business ethics.
35. (a) What is the importance of business ethics?
(b) Discuss the parties to business ethics.
36. (a) discuss the various business ethics an entrepreneur has to exercise
towards
(a) Customers
(b) Employees
29
(c) Society
(d) Government
37. (a) Distinguish between communication and effective communication.
(b) Describe the essentials of effective communication.
38. (a) Explain the importance of communication.
(b) Describe the communication process.
39. (a) Discuss the various forms of effective communication.
(b) Describe the different directions of communication flow.
40. (a) Write short notes on the following as used in communication.
(i) Grapevine
(ii) Electronic organizational channel (internet)
(iii) Organizational communication
(b) Explain the purpose of communication.
(i) Internal functioning of the organization.
(ii) Relating with the outside environment.
41. (a) Explain the various techniques followed by an entrepreneur when
presenting a product to customers.
(b) What factors are considered when choosing a medium of
communication?
42. (a) What are barriers to effective communication?
(b) Suggest ways of overcoming barriers to effective communication.
43. (a) Discuss the various forms of written communication.
(b) How can an entrepreneur attend to the massage effectively?
44. (a) Distinguish between a brand and personal branding.
(b) Describe the steps followed when setting up a personal brand.
45. (a) Describe the principles of effective personal branding.
(b) What is the importance of developing personal branding?
ENTREPRENEURIAL ENVIRONMENT
1. (a) Define the term entrepreneurial environment and describe the
components/types of entrepreneurial environment.
(b) Explain the characteristics of entrepreneurial environment.
2. (a) Explain the economic factors that influence entrepreneurial attitudes
and opportunity identification.
(b) Explain the social-cultural factors affecting entrepreneurship attitudes
and opportunities.
3. (a) Discuss the political factors that determine entrepreneurial intensions
and opportunities identification.
(b) Explain the factors in the global environment that promote
entrepreneurial intensions.
SOCIAL ENTREPRENEURSHIP
1. (a) Define term social entrepreneurship and state the salient features of
social entrepreneurship.
(b) What are the objectives of social entrepreneurship?
2. (a) Explain the various characteristics of a social entrepreneur.
(b) What are the key concepts of social entrepreneurship?
3. (a) What is the importance of social entrepreneurship?
(b) Explain the various types of social enterprises.
30
4. (a) Explain the characteristics of social enterprises.
(b) What are the advantages of social enterprises?
(c) Enumerate the difference between social enterprises and business
enterprises.
5. (a) Explain the opportunities for social entrepreneurship.
(b) Explain the ways of making a social impact in the community.
6. (a) Distinguish between
(i) Principle and perception
(ii) Positive and negative opportunities
(iii) Vision and visionary leadership
(iv) Poverty perception and advocacy skills
(b) What are the indicators of a positive impacts in the community.
7. (a) Describe the steps followed in becoming a social entrepreneur.
(b) State the characteristics of a good action plan.
8. (a) What are the negative opportunities in the communities?
(b) Explain the perceptions of conflicts.
9. (a) what are the steps involved in bridge the gap approach (visionary
approach)
(b) Explain the cepic structure for advocacy.
10. (a) Describe the structure of a social enterprise plan.
(b) Explain the various threats to community development.
11. (a) Explain the strategies for community development that are used by
entrepreneurs.
(b) Discuss the viscous cycle of poverty.
12. (a) Explain the environmental threats caused by an unsuitable use of
resources.
(b) Suggest ways of minimizing environmental threats of unsustainable use
of resources.
13. (a) Examine the causes of climate change.
(b) Explain the key concepts of social enterprise development.
14. (a) Distinguish between;
(i) Sustainability of a social enterprise and social innovation.
(ii) Resourcefulness and impact assessment.
(b) Explain the various ways of saving natural resources.
15. (a) What are the components of social innovations?
(b) What is the role of mentoring in creating social enterprises?
16. (a) Describe the services provided by environmental protection bodies in
your country.
(b) How do businesses depend on the natural environment?
17. (a) Explain the negative effects of a degraded environment.
(b) Explain the different environment standards to be observed during
businesses’ operation.
18. (a) Explain the benefits of’
(i) Business to society
(ii) Society to business
31
(b) Explain the requirements to business which affect the natural
environment.
BUSINESS IDEAS
1. (a) Explain the reasons for generating business ideas.
(b) What are the sources of business ideas?
2. (a) State the major rules followed when using a brain storming method.
(b) Describe the steps followed to materialize a business idea.
3. (a) Explain the procedure of researching a business idea.
(b) Describe how business ideas can be identified from the environment.
4. (a) How can a business idea be turned into a business opportunity.
(b) Explain the different aspects considered when evaluating different
business ideas.
5. (a) Explain how business ideas can be evaluated
(i) Depending on personal considerations
(ii) Depending on business considerations
(b) How are business ideas classified?
BUSINESS OPPORTUNITIES
(i) A business idea and business opportunity.
(ii) A feasible business and a viable business.
(iii) Feasibility of a business and viability of a business.
(b) What are the indicators of a good business opportunities?
2. (a) Explain the characteristics of a good business.
(b) Explain the various types of business opportunities.
3. (a) Describe the identification process of a good business opportunity.
(b) Describe the steps followed when determining the profitability of a
business.
SMALL AND MEDIUM ENTERPRISES
1. (a) Distinguish between small and medium enterprise.
(b) What are the characteristics of
2. (a) Explain the role of small and medium enterprises in promoting
developments.
(b) What are the advantages of;
(i) Formal business
(ii) Informal business
3. (a) Distinguish between formal and informal businesses.
(b) Why are formal businesses preferred to formal business?
4. (a) Explain the factors that lead to a difference in the sizes of business.
(b) What are the advantages and disadvantages of small and medium
enterprises?
5. (a) What are the reasons for the high rate of failure of small and medium
enterprises?
(b) Suggest solutions to the high rate of failure of small and medium
enterprises in Uganda.
6. (a) Explain the steps followed when commencing business operations.
(b) What challenges are faced by small and medium enterprises in accessing
business information in your country?
32
7. (a) Explain the services rendered by business support organizations.
(b) Examine the merits and demerits of sole proprietorship.
8. (a) What are the contents of a partnership deed?
(b) Under what circumstances may a partnership be dissolved.
9. (a) Distinguish between a public limited company and a private limited
company.
(b) Explain the merits and demerits of a public limited company.
10. (a) Describe the principles of co-operative societies.
(b) Examine the merits and demerits of co-operatives.
11. (a) Why is it necessary to register an enterprise?
(b) Account for the existence of un registered business in your country.
12. (a) Describe the laws and regulations that govern businesses in Uganda.
(b) Examine the relevance of business laws in your country.
13. (a) Distinguish between tax clearance and tax identification number.
(b) Describe the steps followed in registering a business.
14. (a) Explain the essential elements of a valid contract.
(b) Explain the uses of a contract to entrepreneur.
15. (a) Account for the existence of very many small scale businesses/ sole
proprietorship in Uganda.
(b) Why do some businesses in your country fail?
16. (a) Explain the salient features of a partnership business.
(b) Outline the procedures followed when forming a public limited company.
(c) Enumerate the differences between a private limited company and a
public limited company.
17. (a) discuss the contents of;
(i) Memorandum of association
(ii) Articles of association
(b) Define the term insurance and describe the principles of insurance.
18. (a) define the following terms as used in insurance
(i) Insured
(ii) Insurer
(iii) Premium
(iv) Sum insured
(v) Risk
(vi) Loss
(vii) Co-insurance
(viii) Surrender value
(ix) Actuary
(x) Over insurance
(xi) Pooling of risks
(b) Explain the different types of insurance.
19. (a) Define the term insurance contact.
(b) Describe the steps followed when
(i) Taking out an insurance policy
(ii) Claiming compensation
20. (a) Explain the responsibilities of insurance companies to the business
communities.
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(b) Describe the categories of insurance policies.
21. (a) Explain the challenges facing the insurance industry in Uganda.
(b) Explain the factors that necessitate good relationship between the family
and business.
22. (a) Explain the challenges associated with family business.
(b) Suggest solutions to overcome the challenges associated with family
business.
(c) What is the importance of family savings in establishing business?
GENDER AND ENTREPRENEURSHIP
1. (a) Define the following gender terminologies
(i) Gender
(ii) Sex
(iii) Culture
(iv) Society
(v) Access
(vi) Labour market
(vii) Conscientisation
(viii) Empowerment
(ix) Gender stereo typing
(x) Patriarchy
(xi) Patriarchal resistance
(xii) Gender equality
(xiii) Division of labour
(b) Why is there need for gender balance/partnership?
2. (a) Distinguish between gender identity and gender roles.
(b) Explain the factors that enhance gender partnership.
(i) Gender myths and gender stereotypes.
(ii) Gender partnership and partnership
(b) Identify the gender myths which various societies believe in.
4. (a) What are the barriers to women participation in entrepreneurship?
(b) What are the solutions to women participation in entrepreneurship?
BUSINESS PLANNING
1. (a) Describe the elements of a business plan.
(b) What is the importance of preparing a business plan?
2. (a) Define the term business plan and explain the different types of business
plans.
(b) Describe the structure of a business plan.
3. (a) What is the importance of an executive summary?
(b) Describe the structure of an executive summary.
4. (a) Describe the components of the production process section of a
production plan.
(b) What are the contents of a management plan?
5. (a) List the production needs which are considered when developing
production.
(b) What are the problems that may hinder the successful implementation of
a business plan?
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6. (a) Explain the steps that should be considered when designing a marketing
plan.
(b) Describe the tools an entrepreneur may use to monitor business
operations.
7. (a) Explain the steps followed while preparing a business plan.
(b) Of what importance is an operational budget to an entrepreneur?
8. (a) Distinguish between a master daily work schedule and a daily work
schedule.
(b) Explain the importance of work schedule to an entrepreneur.
(c) Examine the factors considered by an entrepreneur when preparing a
daily work schedule.
9. (a) Explain the uses of an action plan to an entrepreneur.
(b) Of what importance of the following to an entrepreneur
(i) Cash flow statement
(ii) Marketing plan
10. (a) Why is it necessary for entrepreneurs to carry out proper budgeting?
(b) Describe the steps involved when preparing an operational budget.
11. (a) What are the components of
(i) General description of a business
(ii) Financial plan
(b) Explain the challenges faced when carrying out budgeting.
12. (a) Define pre-operating expenses.
(b) What are the various pre-operating expenses businesses incur?
13. (a) Explain the qualities of a good business goal.
(b) What is the importance of setting goals in business?
14. (a) Define a cash flow statement.
(b) What are the elements of a cash flow statement?
PRODUCTION MANAGEMENT SKILLS
1. (a) What is meant by production management?
(b) What are the factors considered when carrying out capacity planning and
development?
2. (a) Describe the activities involved in the production process.
(b) Explain the factors affecting production decision.
3. (a) Describe the purchasing procedure.
(b) Explain the factors that are considered when choosing suppliers of
materials.
(c) What steps can be taken by an entrepreneur to ensure purchase of
quality materials.
4. (a) Why is it necessary to ensure proper management of inventory?
(b) Describe the tools used in inventory and store management.
5. (a) Define inventory and explain the different types of inventory.
(b) Explain the dangers of
(i) Over investment
(ii) Under investment in inventory
6. (a) Suggest measures that an enterprise can undertake effectively manage
inventory.
(b) What are the costs incurred by a firm when
35
(i) Ordering inventory
(ii) Holding inventory
7. (a) Define the term purchasing and explain the principles of purchasing.
(b) Explain the objectives of purchasing.
8. (a) What factors are considered when making decisions for buying inputs?
(b) Explain the steps considered when making a purchasing plan.
(c) Explain the factors considered when selecting raw materials.
9. (a) Explain the various types of labour.
(b) Explain the reasons why labour is needed.
10. (a) explain the factors considered when;
(i) Determining the number and type of employees to work in a business.
(ii) Recruiting employees in an enterprise.
(iii) What are the characteristics of appropriate technology?
11. (a) Explain the factors that should be considered when designing a
product.
(b) What is the importance of designing a product to an entrepreneur?
12. (a) Explain the elements of a work place that increase productivity of the
business.
(b) Suggest ways through which an entrepreneur can minimize costs of
production.
13. (a) Explain the various ways in which materials should be handled and
stored in a work place.
(b) Suggest ways in which the work station can be improved.
14. (a) Explain the factors that should be considered when selecting
machines for an enterprise.
(b) Suggest measures that can be taken to ensure proper handling and
safety of machine in an enterprise.
15. (a) suggest measures that can be taken to improve
(i) Welfare facilities
(ii) Premises
(b) In what ways can production be optimized through better work
organization?
16. (a) Explain the various ways in which hazardous substances should be
controlled in a work place.
(b) Suggest ways in which lighting can be improved in the work place.
(c) Explain the factors considered when designing a work place.
17. (a) Describe the steps involved in the product design.
(b) Describe the stages of the product life cycle.
18. (a) Of what importance is an effective plant layout?
(b) What are the essentials of a plant layout?
19. (a) Explain the factors that should be considered when developing a new
product.
(b) Describe the techniques used by entrepreneurs to make their products
unique in the market.
20. (a) Examine the aspects of quality management that influence the quality
of products.
(b) Explain the customers misconcepts about quality products.
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21. (a) Explain the factors which influence the general quality standards of
products in an enterprise.
(b) What are the benefits of quality control in production process?
22. (a) Explain the ways in which proper human resource management
promotes the quality of a product in an enterprise.
(b) Describe the components of enterprise activities model.
(c) In what ways proper financial control promote to the quality of products
in an enterprise.
23. (a) Explain the objectives of quality control the quality of products in an
enterprise.
(b) What measures can be taken to improve the quality of products in an
enterprise.
24. (a) Explain the types of plant layouts.
(b) Explain the factors considered when designing a plant layout.
25. (a) Explain the components of production planning and control.
(b) What are the various costs incurred in production of goods.
26. (a) What are the various elements of costing?
(b) Describe the various methods of costing.
27. (a) Explain the ways of minimizing costs and maximizing profits.
(b) Describe the mechanism of controlling business assets.
28. (a) Describe the various internal control system of small businesses.
(b) Define technology and explain the types of technology.
29. (a) Explain the factors considered when choosing a mode of technology to
use.
(b) How can an entrepreneur structure his time for increased productivity?
(c) Distinguish between feasible normal capacity and normal maximum
capacity.
30. (a) How can an entrepreneur effectively manage time in the production
process?
(b) What are the advantages of time management planning?
31. (a) Describe the techniques of time management.
(b) What are the activities involved in better time management.
32. (a) How do entrepreneurs waste time?
(b) What tips can act as a guide on time management.
33. (a) What is the importance of packaging?
(b) Explain various types of packaging.
34. (a) What materials are commonly used in packaging?
(b) What are the factors considered when choosing packaging materials?
35. (a) Define a product life cycle and explain the characteristics of every
stage.
(b) What problems are associated with the product life cycle management of
an enterprise?
36. (a) What are the benefits of the product life cycle management of an
enterprise?
(b) Describe the various elements of a product.
37. (a) Explain the element of total quality management.
(b) What are the benefits of total quality management?
37
38. (a) What are the problems of total quality management?
(b) Discuss the various functions or tasks of management in an enterprise.
(c) Explain the steps involved in the planning process.
MARKETING MANAGEMENT
1. (a) Under what circumstances may an entrepreneur carry out market
research?
(b) What measures can be taken by business entrepreneurs to ensure
quality production.
(c) Explain reasons for carrying out market research.
2. (a) Describe the steps followed when conducting market assessment.
(b) Why is it necessary for an entrepreneur to carry out market assessment?
3. (a) What factors considered when conducting market assessment.
(b) Identify the likely challenges faced by entrepreneur when conducting
market assessment.
4. (a) Describe the elements of marketing mix.
(b) Suggest the ways through which market assessment information is
collected.
5. (a) Define the term sales promotion.
(b) What are the methods used by entrepreneurs when conducting market
assessment.
(c) Why is it necessary to carry out sales promotion?
6. (a) Explain the factors considered by an entrepreneur when advertising.
(b) Outline the advantages medium used by entrepreneurs.
7. (a) Why is it necessary to carryout personal selling?
(b) Analyze the steps followed when conducting personal selling.
(c) What are the limitations of personal selling?
8. (a) Outline the qualities of a good sales person.
(b) Under what circumstances personal selling may be needed?
9. (a) What factors are considered when choosing a channel of distribution?
(b) Describe the role of a retailer in the distribution of a product.
10. (a) Outline the different forms of marketing techniques.
(b) What are the benefits of good customer care in enterprise?
(c) Explain the manifestations of goods customer relations in an enterprise.
11. (a) Define the term price.
(b) Explain the ways through which entrepreneurs price their products.
12. (a) Outline the objectives of pricing the products for the entrepreneur.
(b) Explain the factors affecting the price decisions in a business enterprise.
13. (a) What is meant by the term target market as it is used in
entrepreneurship education.
(b) What are the factors determining the target market population.
(c) Examine the challenges faced when identifying the target market.
14. (a) Distinguish between cash transactions and credit transaction.
(b) State the advantages and disadvantages of selling goods on cash basis.
(c) Suggest the ways of ensuring proper cash management.
15. (a) Why is it necessary to carry out credit selling?
(b) Under what circumstances may goods be sold on credit.
(c) Suggest the ways of ensuring proper management of credit sales.
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16. (a) What are the costs and disadvantages of credit selling?
(b) What are the challenges faced when carrying out credit selling.
(c) Explain the factors considered before giving goods on credit.
17. (a) What are the objectives of market segmentation?
(b) Describe the basis for market segmentation.
(c) Explain the criteria for selecting segmentation basis.
18. (a) Define the term marketing strategy.
(b) Explain the tools of marketing strategy used in a business.
19. (a) What are potential customers?
(b) Outline the characteristics of potential customers.
HUMAN RESOURCE MANAGEMENT
1. (a) What is meant by the term human resource management?
(b) Explain the elements of human resource management.
2. (a) Explain the factors considered when preparing induction of employees in
enterprise.
(b) What method is used by business entrepreneurs hen paying employees.
3. (a) Why is it necessary to appraise workers’ performance?
(b) Describe the methods of appraising the workers performance.
4. (a) What are the costs of labour turnover?
(b) Give the causes of labour turnover in Uganda.
5. (a) Explain the procedures of recruiting business employees in an
enterprise.
(b) Explain the sources of recruiting business employees in an enterprise.
6. (a) Give reasons for training business employees in any enterprise.
(b) What are the procedures followed when training business employees.
7. (a) Why is it necessary to motivate workers?
(b) Explain the ways through which business entrepreneurs motivate their
employees.
8. (a) What is the purpose of manpower planning in an organization?
(b) In what ways is human resource management used as a tool to promote
quality products in an enterprise.
9. (a) What is the importance of training business employees?
(b) Give reasons why most of the small businesses are reluctant to offer job
training.
10. (a) What is the importance of an organization chart at any place of work?
(b) What measures that can be undertaken to promote good working
relations at places of work.
11. (a) What is meant by the term human resource planning?
(b) What are the roles of human resource management?
12. (a) Explain the following terms as used in human resource management.
(i) Duty
(ii) Task
(iii) Job specification
(iv) Job description
(v) Job performance standards
13. (a) Explain the methods used when recruiting business employees.
(b) What factors are considered when recruiting employees?
39
14. (a) State the main objectives of job grading.
(b) Explain the different methods used when paying workers.
15. (a) Explain the factors considered when determining wages for
employees.
(b) Outline the advantages and disadvantages of rate method of payment.
16. (a) Why is it necessary to motivate business employees?
(b) Explain the various ways of motivating business employees.
17. (a) what is meant by the tem employee relations (labour relations/
industrial relations)
(b) In what ways is employee relations ensured at any place of work?
(c) State the causes of indiscipline at any place of work.
18. (a) What is meant by the term performance appraisal?
(b) What are the needs for performance appraisal?
19. (a) Explain the different methods used by employers when carrying out
performance appraisal.
(b) What are the challenges faced when carrying out performance appraisal.
(c) Suggest the solutions to overcome the above challenges.
(d) Outline the elements of effective performance appraisal.
BUSINESS COMPETITION
1. (a) Distinguish between business competition and business competitive
advantages.
(b) Explain any three business competitive advantage.
2. (a) Assess the implications of business competition.
(b) Analyze how entrepreneurs cope up with business competition in
business.
3. (a) Explain different types of competition.
(b) What are the indicators of increase in business competition?
4. (a) Explain the characteristics of monopoly and perfect competition.
(b) Suggest ways entrepreneurs use to overcome competition.
FINANCIAL PLANNING AND TAXATION
1. (a) What is meant by the term business tax?
(b) Describe the different forms of direct and indirect taxes?
2. (a) Why does the government levy taxes on business enterprises faced by tax
administration in Uganda.
(b) Explain the challenges faced by tax administration in Uganda.
3. (a) Describe the principles of a good taxation system.
(b) What are the advantages and disadvantages of a good taxation system?
4. (a) What are the roles of URA in the taxation system of Uganda?
(b) Outline the sources of government revenue.
5. (a) Explain the factors that influence the tax compliance.
(b) Suggest the measures to encourage compliance in economy.
CAPITAL MARKETS
1. (a) Explain the key participants in capital markets.
(b) Explain the major functions of stock exchange market.
2. (a) What is the role collective investment schemes to investors?
(b) Explain the steps involved in the process of buying and selling shares.
(c) Explain the process of selling shares.
40
3. (a) What are the benefits of equity financing over debt financing.
(b) Examine the role of capital markets to an economy.
(c) Challenges facing the capital markets industry in Uganda.
1. Why is self employment preferred to paid employment?
(b) Suggest the measures that can be taken to encourage self employment in
Uganda.
2. (a) Explain the factors considered when choosing a career.
(b) What are the advantages and disadvantages of self employment?
3. (a) Account for the variations in wages paid to workers.
(b) Explain the factors considered when selecting a career other than the
personal interest and abilities for a particular career.
4. (a) Explain the costs and benefits of self employment.
(b) Suggest ways of encouraging self employment in your country.
5. (a) Distinguish between a “career” and a “business career”.
(b) Explain the factors considered when selecting a career.
6. (a) Explain the benefits of paid employment.
(b) Account for the differences in the incomes earned by employees in
Uganda.
7. (a) Explain the factors considered when choosing a career.
(b) What are the advantages and disadvantages of paid employment?
8. (a) Distinguish between ‘entrepreneurial motivation’ and ‘achievement
motivation’.
(b) Explain the characteristics of entrepreneurs with a strong need for
achievement.
(c) Explain the merits and demerits of achievement motivation.
9. (a) Explain the factors limiting entrepreneurial motivation.
(b) Suggest measures that can be taken to promote entrepreneurial
motivation among business men.
10. (a) Explain the characteristics of creative thinkers.
(b) What are the obstacles to creative thinking in business?
11. (a) Describe the various steps followed during the creativity process.
(b) Explain the importance of creativity to entrepreneurs in business.
12. (a) What is the importance of creativity process?
(b) Explain the various ways of promoting creative abilities among
individuals.
13. (a) Describe the various stages in the creative process.
(b) Explain the limitations to creativity in business.
14. (a) Describe the various types of innovation.
(b) Describe the various sources of innovation.
15. (a) Explain the characteristics of innovative entrepreneurs.
(b) What measures can be taken to encourage innovation among Ugandan
entrepreneurs?
16. (a) Why do small firms highly embrace innovation compared to large
firms?
(b) Explain the importance of innovation to entrepreneurs in business.
17. (a) Explain the factors that bring about change in business.
(b) Explain the various ways of fostering change in business.
41
18. (a) Explain the various reasons for resisting change by some people in
business.
(b) Explain the advantages of change to entrepreneurs in business.
19. (a) Explain the elements of effective communication.
(b) What is the importance of effective communication in an enterprise?
20. (a) What are the objectives of effective communication in an enterprise?
(b) Explain the factors considered when selecting a medium of
communication.
21. (a) What is the role of effective communication in an enterprise?
(b) Explain the barriers to effective communication.
22. (a) What is the role of effective communication in an enterprise?
(b) What measures have been taken to overcome the barriers to effective
communication in your country?
23. (a) Describe the qualities of effective communication.
(b) Explain the hindrances to effective communication.
24. (a) Explain the essentials communication.
(b) Explain the process of effective communication.
25. (a) Explain the principles that should be observed by entrepreneurs for
successful business negotiations.
(b) What challenges are faced by entrepreneurs when carrying out business
negotiations?
26. (a) Describe the steps involved in the negotiation process.
(b) Explain the ways of ensuring successful negotiation by the
entrepreneurs.
27. (a) Explain the various negotiation techniques used by entrepreneurs in
business.
(b) In what ways can employers ensure good negotiation with their
employees?
28. (a) Explain the characteristics of good negotiating entrepreneurs.
(b) Suggest measures of overcoming negotiation challenges.
29. (a) Discuss the guidelines for effective negotiation.
(b) Explain the business ethics observed by business towards customers
and government.
30. (a) Describe the principles of good business ethics.
(b) Explain the business ethics observed by business towards customers
and government.
31. (a) Explain the business ethics observed by the business towards
employees.
(b) Explain the business ethics observed by business towards the
shareholders.
32. (a) Explain the business ethics observed by the business towards the
society.
(b) What is the importance of business ethics to business?
33. (a) Explain the steps involved in the process of personal branding.
(b) What are the principles of effective personal branding?
(c) Explain the advantages of developing a personal brand.
42
34. (a) Explain the signification of developing a personal brand in business.
(b) Describe the various laws that are helpful in creating an effective and
lucrative personal brand.
35. (a) Describe the various sources of business ideas.
(b) Explain the importance of coming up with different business ideas.
36. (a) Explain the various ways of raising business ideas.
(b) Explain the major objectives of generating business ideas.
37. (a) How does an entrepreneur generate business ideas?
(b) Explain the advantage of generating business ideas.
38. (a) Explain the characteristics of a good business opportunity.
(b) What are the factors considered when evaluating business ideas?
39. (a) What are the reasons for generating business ideas by entrepreneurs?
(b) Explain the ways through which an entrepreneur generates business
ideas.
40. (a) What are the qualities of a good business opportunity?
(b) Explain the factors considered when evaluating a given business idea.
41. (a) Describe the business start up process.
(b) What are the indicators used by entrepreneurs when selecting good
business opportunities.
(c) Describe the steps followed when determining the profitability of a
potential business.
42. (a) What is the importance of quality control in an enterprise?
(b) Explain the factors influencing quality standards in an enterprise.
43. (a) With the help of an illustration, explain the product life cycle.
(b) Explain the production activities that influence the quality of the
product.
44. (a) Explain the importance of quality control in an enterprise.
(b) Explain the factors which influence the general quality standards in an
enterprise.
45. (a) Explain the elements of total quality management.
(b) Explain the ways in which proper financial management can promote
quality of products in an enterprise.
46. (a) Explain the elements of a quality product.
(b) What measures can be taken to improve the quality of products in an
enterprise.
(a) Explain the reasons for quality control in an enterprise.
(b) Explain the ways in which proper human resource management can act
as a tool to promote quality of products in an enterprise.
47. (a) Explain the misconcepts about quality?
(b) What are the arguments for and support and against total quality
management.
48. (a) Why is it necessary to observe quality during the production process?
(b) Explain the ways through which quality products can be produced in an
enterprise.
49. (a) Describe the stages of product life cycle.
(b) Discuss the benefits and limitations of product life cycle management in
an enterprise.
43
50. (a) What are the objectives of carrying out sales promotion?
(b) Explain the various ways of carrying out sales promotion?
51. (a) Describe the different forms of product promotion.
(b) Explain the factors considered when selecting an advertising medium.
52. (a) What are the objectives of carrying out product promotion?
(b) How do entrepreneurs promote sales?
53. (a) Under what circumstances may an entrepreneur carry out sales
promotion?
(b) In what ways can entrepreneur promote sales for products in an
enterprise?
54. (a) Describe the creative selling process.
(b) Explain the various methods of sales promotion.
55. (a) Explain the various ways through which sales promotion strategies
can be carried out.
(b) Explain the advantages and disadvantages of radio advertising to an
entrepreneur.
56. (a) Describe the creative selling process.
(b) Describe the major attributes of a creative sales person.
57. (a) Under what conditions may an entrepreneur sell products on credit?
(b) Explain the various ways of managing credit sales in an enterprise.
58. (a) Why may entrepreneurs sell their products on credit?
(b) Explain the merits and demerits of selling products on credit.
59. (a) Explain the reasons why entrepreneurs may advertise their products.
(b) Explain the factors that may lead to an increase in the price of a product
in an enterprise.
60. (a) Explain the factors considered when pricing a product.
(b) What are the various methods used by entrepreneurs when pricing
products.
61. (a) Give the various form s of advertising media.
(b) Describe the various methods used by entrepreneurs to promote sales for
their products.
62. (a) Distinguish between sales promotion and personal selling.
(b) Describe the different ways of carrying out personal selling.
(a) What are the elements of an advertising message?
(b) Explain the factors considered when choosing an advertising medium.
63. (a) Explain the forms of entrepreneurial environment.
(b) Explain the socio-cultural factors that influence entrepreneurial
attitudes.
64. (a) Describe the characteristics of the entrepreneurial environment.
(b) Explain the economic and political factors influencing the
entrepreneurial attitudes.
65. (a) Explain the various features of an entrepreneurial environment.
(b) Explain the global and demographic actors that influence the
entrepreneurial attitudes and opportunity identification.
66. (a) Describe any five forms of entrepreneurial environment.
(b) Explain the economic and demographic factors limiting entrepreneurial
attitudes and opportunities.
44
67. (a) Describe the features of entrepreneurial environments.
(b) Explain the social-cultural factors that limit entrepreneurial intentions.
68. (a) Explain the social and political factors that promote entrepreneurial
attitudes and opportunity identification.
(b) Suggest the measures of overcoming the political and social factors
limiting entrepreneurial intentions.
69. (a) Explain the social and economic factors limiting the entrepreneurial
attitudes.
(b) Suggest the measures of overcoming the economic factors limiting
entrepreneurial intentions.
70. (a) Explain the characteristics of the entrepreneurial environment.
(b) Explain the economic factors affecting the growth and development of
entrepreneurship.
71. (a) Discuss the economic factors affecting the growth and development of
entrepreneurship.
(b) What should be done to overcome the demographic and global factors
limiting entrepreneurial intensions and attitudes?
72. (a) What are the benefits and challenges of being an entrepreneur?
(b) Explain the various characteristics possessed by successful
entrepreneurs?
73. (a) Outline any four similarities between an entrepreneur and an
enterprising person.
(b) Describe the major traits of an entrepreneur.
74. (a) explain the characteristic of social enterprises
(b) Explain the characteristics of social entrepreneurs in Uganda.
75. (a) Explain the various characteristics possessed by successful
entrepreneurs.
(b) Account for the differences in incomes earned from different careers.
76. (a) Differentiate between business entrepreneurship and social
entrepreneurship.
(b) What is the importance of practicing social entrepreneurship in our
communities?
77. (a) Explain the characteristics of social entrepreneurs.
(b) What are the reasons for practicing social entrepreneurship in our
communities?
78. (a) Explain the threats caused by unsustainable use of natural
resources.
(b) Suggest ways of minimizing environmental threats caused by
unsustainable use of natural resources.
79. (a) Describe the common environmental threats which are caused by
unsustainable use of natural resources.
(b) Suggest measures which can be taken to minimize the threats described
above.
80. (a) Explain the effects of business activities on the natural environment.
(b) What measures has the government of Uganda taken to minimize the
negative effects of business activities on the natural environment.
81. (a) How do business enterprises depend on the natural environment?
45
(b) Explain the environmental standards that should be observed by
entrepreneurs when carrying out business activities in Uganda.
82. (a) Justify the need for promoting women participation in
entrepreneurship.
(b) What measures if the government of Uganda taking to encourage women
participation in entrepreneurship.
83. (a) Discuss the limitations to women participation in entrepreneurship.
(b) Suggest measures of encouraging women participation in
entrepreneurship.
84. (a) Explain the reasons for promoting gender balance in Uganda.
(b) What are the obstacles to effective women participation in
entrepreneurship?
85. (a) Examine the factors that affect women participation in
(b) Suggest the measures that should be taken to promote gender balance in
86. (a) Examine the factors that promote women promote women
participation in entrepreneurial activities.
(b) What measures have been undertaken to encourage women participation
in entrepreneurship.
87. (a) Why is it necessary for an entrepreneur to motivate employees?
(b) Explain the ways through which entrepreneurs motivate their employees.
88. (a) Explain the importance of training employees in an enterprise.
(b) Give and explain the factors considered when recruiting employees in an
enterprise.
89. (a) Explain the procedure of training employees in an enterprise.
(b) Explain the causes of labour turnover in an enterprise.
90. (a) Explain the costs of labour turnover to an enterprise.
(b) Suggest measures that can be taken to reduce labour turnover in
Uganda.
91. (a) What is the role of motivating employees in an enterprise?
(b) Suggest the various methods in which workers can be motivated in an
enterprise.
92. (a) Explain the manifestations of employee indiscipline in an
organization.
(b) Suggest ways of improving employee discipline in an organization.
93. (a) Account for the high labour turnover in business organizations.
(b) Suggest ways of minimizing labour turnover in a business.
94. (a) What are the major causes and costs of labour turnover?
(b) Explain the various benefits and costs of labour turnover.
95. (a) Describe the major methods used when training employees of an
enterprise.
(b) Why may an entrepreneur train employees?
96. (a) Explain the procedure followed when recruiting employees in an
enterprise.
(b) Describe the various sources of recruiting workers in an organization.
97. (a) Describe the elements of human resource management.
46
(b) What are the objectives of manpower planning?
98. (a) Explain the causes of employee indiscipline in an organization.
(b) Suggest measures that can be taken to improve labour relations in an
enterprise.
99. (a) Explain the factors considered when preparing induction of employees
in an organization.
(b) Explain the methods used in paying workers in an enterprise.
100. (a) Explain the importance of appraising workers’ performance in an
enterprise.
(b) Describe the various methods of appraising workers’ performance.
101. (a) Outline the elements of an effective performance appraisal in an
organization.
(b) Examine the merits and demerits of performance appraisal in an
enterprise.
102. (a) differentiate between
(i) Job performance standards and job description
(ii) Job analysis and job specification
(b) Explain the importance of job analysis to an organization.
103. (a) Explain the importance of human resource management in an
organization.
(b) In what ways can good human resource management act as a tool to
promote quality products in an enterprise?
104. (a) Why is it important to motivate employees in an enterprise?
(b) Suggest the various methods in which workers can be motivated in an
enterprise.
105. (a) Explain the factors considered when carrying out induction of
employees.
(b) What are the major objectives of training employees in an enterprise?
106. (a) What is the importance of business planning in an enterprise?
(b) Explain the problems that hinder successful implementation of business
plans in Uganda.
107. (a) Describe the steps involved in preparing a business plan.
(b) Explain the rationale for preparing a business plan.
108. (a) Describe the components of a business plan.
(b) Explain the factors limiting the successful implementation of business
plans.
109. (a) Describe the components of a marketing plan.
(b) Explain the factors considered when preparing a production plan.
110. (a) (i) distinguish between “an action plan” and a “marketing plan”.
(b) Explain the importance of preparing a marketing plan.
111. (a) Why is it necessary for an entrepreneur to monitor business
operations in an enterprise?
(b) How can an entrepreneur monitor business operations?
112. (a) Explain the steps involved in the business start up process.
(b) Describe the tools used in monitoring business operations.
113. (a) Explaining the factors considered when developing a production plan.
(b) Explain the factors considered when preparing a marketing plan.
47
114. (a) Describe the structure of an executive summary.
(b) What are the components of an organizational plan?
115. (a) What elements should be included in a business plan?
(b) Explain the uses of a business plan to an entrepreneur.
116. (a) Describe the components of a financial plan.
(b) Explain the factors considered when preparing an administrative plan.
(c) What are the uses of an organizational chart to an enterprise?
117. (a) Explain the components of a action plan.
(b) What are the uses of an action plan to an entrepreneur?
118. (a) Describe the elements of an organizational plan.
(b) Explain the importance of preparing a financial plan.
119. (a) Explain the steps involved n preparing an operational budget.
(b) What is the importance of budgeting in an enterprise?
120. (a) What is the role of small and medium scale enterprises?
(b) Explain the challenges faced by small and medium enterprises in
Uganda.
121. (a) Why are formal businesses preferred to informal businesses?
(b) Explain the factors that may lead to increase in the wages paid to
employees.
122. (a) Explain the challenges faced by small and medium enterprises in
Uganda.
(b) Suggest measures of overcoming the challenges faced by the small and
medium enterprises in Uganda.
123. (a) Account for the high rate of failure of small and medium enterprises
in Uganda today.
(b) What measures have been taken to reduce the rate of failure of small and
medium enterprises in Uganda?
124. (a) Explain the advantages of small and medium scale enterprises.
(b) Explain the factors limiting the performance of small and medium scale
125. (a) What are the causes of the poor performance of small and medium
enterprises in Uganda?
(b) How can performance of small and medium enterprises be improved in
Uganda?
126. (a) Explain the factors hindering the performance of small and medium
(b) Suggest the ways of promoting the performance of small and medium
enterprise in your country.
127. (a) Why is there a high rate of failure of small and medium enterprises in
Uganda today?
(b) Suggest the possible remedies to overcome the above situation.
128. (a) Explain the factors determining the performance of small and
medium enterprises in Uganda.
(b) Suggest measures that should be taken to enhance the performance of
small and medium enterprises in Uganda.
129. (a) Explain the factors determining the performance of small and medium
48
(b) In what ways can the government encourage better performance of small
and medium enterprises in Uganda?
130. (a) Examine the contribution of small and medium enterprises to
economic development of your country.
(b) Suggest the measures of encouraging small and medium enterprises in
your country.
131. (a) Explain the various reasons as to why small businesses and medium
enterprises are not performing well in Uganda today.
(b) Explain the measures that have been kept to promote the performance of
small and medium enterprises in Uganda.
132. (a) Describe the principles of insurance.
(b) Account for the low popularity of insurance business among
entrepreneurs.
133. (a) Explain the various types of insurance policies.
(b) What are the steps followed when buying an insurance contract?
134. (a) Explain the principles of insurance.
(b) Explain the challenges faced by insurance business in Uganda.
135. (a) Explain the benefits of an insurance company to the business
community.
(b) Explain the responsibilities of an insurance company to the business
community.
136. (a) Explain the factors that necessitate good relationship between family
and business.
(b) What is the importance of family savings in establishing small and
medium enterprises?
137. (a) Explain the challenges associated with family business in Uganda.
(b) Suggest ways of overcoming the challenges associated with family
businesses.
138. (a) Describe the various sources of business capital.
(b) Explain the importance of proper financial record keeping in a business.
139. (a) Explain the various ways of raising capital for an enterprise.
(b) Explain the ways of speeding up cash collection from the debtors of the
business.
140. (a) Explain the various ways through which entrepreneurs raise capital
to start their businesses.
(b) Why is proper record keeping necessary for any business?
141. (a) Describe the steps involved in the process of obtaining a bank loan.
(b) Explain the terms and conditions that normally govern a loan
transaction.
142. (a) Under what circumstances may a company seek for a bank loan?
(b) Suggest the measures of ensuring proper loan management.
143. (a) Why may an entrepreneur sell goods on credit?
(b) What measures can be taken to ensure proper management of cash in an
enterprise?
144. (a) Why is it necessary for an entrepreneur to save part of his income?
(b) Describe the various forms of savings.
49
(c) What factors influence the entrepreneurs’ level of savings in your
country?
145. (a) Describe the various time management techniques that can be used
in a business.
(b) How do entrepreneurs waste time in business?
146. (a) Explain the advantages of the informal sector over the formal sector.
(b) Why are most small and medium enterprises failing in their operations?
147. (a) Explain the various methods of costing.
(b) Explain the factors that lead to a difference in the sizes of a business.
148. (a) Distinguish between a private limited company and a public limited
company.
(b) Examine the merits and demerits of a public limited company.
149. (a) What are the benefits of equity financing over debt financing.
(b) Explain the steps involved in the buying and selling of shares.
(c) Examine the role of capital markets to an economy.
150. (a) Explain the major functions of capital markets in an economy.
(b) Mention and explain the major participants in the capital markets.
151. (a) Describe the type of instruments used in Uganda’s capital market.
(b) Explain the advantages of investing in collective investment schemes.
152. (a) What are the advantages of collective investment schemes?
(b) Explain the conditions necessary for the success of collective investment
schemes.
153. (a) Explain the principles of corporate governance.
(b) Discuss the benefits of corporate governance to an enterprise.
154. (a) Describe the procedures for purchasing raw materials from suppliers.
(b) Explain the factors considered when determining the number of
employees in a business.
155. (a) Explain the factors considered by entrepreneurs when making a
production decision.
(b) Explain the procedure followed by entrepreneurs when purchasing raw
materials for the business.
156. (a) Explain the factors considered when selecting the supplier of raw
materials in a business.
(b) Explain the measures taken to reduce costs of production in an
enterprise.
157. (a) Explain the factors influencing the choice of a supplier of raw
materials in a business.
(b) In what ways can the entrepreneur reduce costs of production in an
enterprise?
158. (a) Why is it necessary to ensure proper inventory management in an
enterprise?
(b) Describe the tolls used to ensure effective inventory and stores
management in an enterprise.
159. (a) Describe the manufacturing business in your country.
(b) Describe the production process in the manufacturing sector.
(c) Explain the challenges faced by the manufacturing sector in Uganda.
50
160. (a) Describe the procedure entrepreneurs should follow when purchasing
goods, raw materials and equipments for the enterprise.
(b) Examine the factors considered when determining the number and type
of employees to work in a particular business.
161. (a) Describe the characteristics of appropriate technology used by
(b) Assess the factors that influence the choice of technology used by
entrepreneurs in the production process.
162. (a) Explain the elements of a work place.
(b) Why is proper handling of hazardous substances necessary in an
enterprise?
(c) What measures can be taken to promote proper handling of hazardous
substances.
163. (a) Of what importance is packaging to an entrepreneur?
(b) Explain the factors considered by entrepreneurs when selecting
packaging materials.
164. (a) Explain the factors that should be considered by an entrepreneur
when pricing a product.
(b) Describe the methods used by an entrepreneur when pricing a product.
165. (a) Explain the different ways of raising productivity through lighting.
(b) Suggest the various ways of promoting productivity through work
organization.
166. (a) Explain the factors affecting the production decisions.
(b) Describe the various types of expenses considered when costing
production.
167. (a) Explain the different types of distribution channels.
(b) Explain the factors considered when selecting a channel of distribution
for products.
168. (a) Describe the various channels of distribution used by entrepreneurs.
(b) Explain the factors that influence the choice of the distribution channel
for a product.
169. (a) Describe the tools that should be used by entrepreneurs for effective
marketing strategy.
(b) Explain the merits of market segmentation to entrepreneurs.
170. (a) Describe the tools for effective marketing strategy.
(b) Explain the differences between selling and marketing.
171. (a) Explain the various marketing techniques used by entrepreneurs.
(b) Explain the factors that determine the target market population.
172. (a) Explain the factors considered when assessing the target market
population.
(b) What challenges are faced when assessing a target market population?
173. (a) Under what circumstances may an entrepreneur carry out market
research?
(b) Explain the methods used while carrying out market research.
174. (a) Why may an entrepreneur carry out market research?
(b) Describe the methods of data collection during market research.
175. (a) Describe the various stages in the creative process.
51
(b) Explain the advantages and disadvantages of personal selling in
business.
176. (a) Explain the objectives faced when conducting market research.
(b) Explain the challenges faced when conducting market research.
177. (a) Why is it important for an entrepreneur to carry out market research?
(b) Explain the steps followed when carrying out market research.
178. (a) What are the reasons for carrying out personal selling?
(b) Explain the steps involved in carrying out personal selling.
(c) Why is it necessary to use salesmanship in an enterprise?
179. (a) Explain the manifestations of good customer care in an enterprise.
(b) What are benefits of good customer care in an enterprise?
180. (a) Explain the factors affecting competition.
(b) Suggest the ways of overcoming competition by an entrepreneur.
181. (a) Assess the implications of competition in business.
(b) In what ways can an entrepreneur overcome competition in business?
182. (a) Explain the factors affecting competition.
(b) Suggest the ways of overcoming competition by an entrepreneur.
183. (a) Asses the impact of competition in the business sector.
(b) Suggest the measures of maintaining the competitive advantage in the
business sector.
184. (a) Describe the various types/forms of business competition.
(b) Explain the factors considered when analyzing competition.
185. (a) Explain the factors influencing the level of tax compliance in your
country.
(b) Suggest the measures that can be taken to encourage tax compliance in
Uganda.
186. (a) Describe the principles of a good tax system.
(b) Why is there need to levy taxes in an economy.
187. (a) Explain the factors limiting the level of tax compliance in your
country.
(b) Suggest the measures that have been taken to encourage tax compliance
in Uganda.
188. (a) Describe the qualities of a good tax system.
(b) Explain the reasons for taxation to the government.
189. (a) Describe the canons of taxation.
(b) Explain the role of taxation in your country.
190. (a) Explain the role of Uganda Revenue Authority.
(b) Explain the factors promoting the level of tax compliance in your
country.
(c) Suggest the measures of improving tax revenue collection in Uganda.
191. (a) Explain the characteristics of a good tax system.
(b) What is the importance of taxation in Uganda?
192. (a) Explain the importance of direct taxes in Uganda.
(b) Account for the low levels of tax compliance in Uganda.
193. (a) With examples, distinguish between direct taxes and indirect taxes.
(b) Why are indirect taxes preferred to direct taxes?
194. (a) Explain the challenges faced by tax administration in Uganda.
52
(b) Suggest measures of overcoming the challenges faced by the tax
administration machinery in your country.
195. (a) Khamede is a trader involved in a business dealing with purchase and
reselling of wheat from Azam wheat factory based in Musoma. In the month
of December 2012, she bought 120 cartons of wheat at shs. 60,000,000/=
and resold off 90 cartons at shs. 100,000,000/=
Compute
(i) The input tax she paid
(ii) The output tax she paid
(iii) The total VAT liability she paid
(b) Dhuve imports Wines and party spirits from Japan at CIF value of US
$6,000, attracting an import duty of 30%, Excise duty of 40%, VAT 18%
and a withholding tax of 6%. Assuming the exchange rate at the time of
importation is UGX 3,000/= to 1$, calculate
(i) Import duty
(ii) Excise duty
(iii) Value Added Tax
(iv) Withholding tax
(v) The total tax payable
196. (a) Describe the various laws and regulations that govern businesses in
Uganda.
(b) Examine the relevance of business laws mentioned in (a) above.
197. (a) Under what circumstances may a contract be terminated?
(b) Explain the importance of contracts in business.
198. (a) Explain the essentials of a valid contract.
(b) In what ways do parties discharge contracts?
199. (a) Explain the different types of business laws used in your country.
(b) Explain the reasons for establishing business laws in your country.
SECTION A QUESTIONS
1. (a) (i) Define the term ‘demographic ‘environment’.
(ii) Give any three demographic factors influencing
entrepreneurial attitudes and opportunities in uganda.
(b) (i) Distinguish between a marketing plan and oranisational plan.
(ii) State any two uses of a financial plan to an entrepreneur.
(c) (i) Distinguish between paid employment ans elf employment.
(ii) Give any two benefits of paid employment.
(d) (i) mention any two types of change that occur in an organization.
(ii) State any two reasons why people resist change in society.
(e) Kagimu earns shs 2,500,000/= as rental income from his house hold
located in Wakiso District on Sentema road. Calculate the amount of
(i) Rental tax he pays
(ii) Net rental income
2. (a) Distinguish between the following term
(i) Quality planning and quality policy
(ii) Quality control and quality system
(iii) Quality assurance and total quality management
(b) Give the importance of sales promotion to an entrepreneur.
53
(c) (i) Define the term social entrepreneurship.
(ii) Give any three characteristics of social entrepreneurs.
(d) Mention any four tools for effective marketing strategy.
(e) (i) Mention any two sources of capital to an entrepreneur.
(ii) Give any two ways of speeding up cash collection from
debtors of the business.
3. (a) (i) What is meant by a business idea?
(ii) Mention any three factors considered when evaluating a
business idea.
(b) (i) Distinduish between entrepreneurial motivation and
employee motivation.
(ii) Give any three factors considered when evaluating a
business idea.
(c) (i) Distinguish between a business enterprise and a social
enterprise.
(ii) Give any two benefits of social entrepreneurship.
(d) (i) What is meant by effective communication?
(ii) Mention 3 essentials of effective communication.
(e) You are provided with the following information from the books of
portable traders for the year ended 31.12. 2013.
Details shs
Current assets 6,000,000
Current ratio 2:1
Stock 1/1/2013 1,000,000
Stock 31/12/2013
Determine
(i) Working capital
(ii) Compute and interpret acid test ratio
4. (a) (i) Distinguish between entrepreneurial motivation and
entrepreneurial environment.
(ii) Give any two economic factors influencing entrepreneurial
attitudes and opportunities identification in Uganda.
(b) (i) Distinguish between a production plan and an organizational
plan.
(ii) State any two use of a financial plan to an entrepreneur.
(c) (i) Distinguish between paid employment and self employment.
(ii) Give any two benefits of paid employment.
(d) (i) Mention any two reasons why people resist change in society.
(ii) Suggest any two ways of promoting change in business.
(e) (i) Mention any two challenges faced by small medium enterprises.
(ii) Suggest solutions to the high rate of failure of small and medium
5. (a) (i) Distinguish between ‘feasibility’ and ‘viability’ of a business
opportunity.
(ii) Give any two indicators of a good business opportunity.
(b) State any two principles of insurance.
(ii) Give two merits of insurance to business entrepreneurs.
54
(c) (i) List any two factors considered by entrepreneurs when choosing
(ii) Mention any two advantages of packaging to an entrepreneur.
(d) (i) State any two ways of maintaining the competitive advantage of a
business.
(ii) Mention any two advantages of competition in business.
(e) (i) Mention any two types of inventories in a business enterprise.
(ii) Give any two contents of a job description.
6. (a) (i) Distinguish between a ‘job description’ and a ‘job
specification’.
(ii) Give any two contents of a job description.
(b) (i) Define the term entrepreneurial creativity.
(ii) Give three techniques of promoting entrepreneurial creativity.
(c) List the factors considered by entrepreneurs when selecting raw
materials supplies.
(d) (i) distinguish between ‘perfect competition’ and ‘imperfect competition’
(ii) Mention any two ways of overcoming competition in business.
(e) The following details were extracted from the books of Mwasame Traders
Ltd
Stock (01/1/2012) shs 2,400,000
Stock (31/12/2012) shs 2,000,000
Rate of inventory turnover 4 times
Mark up 50%
Determine
(i) Cost of goods sold
(ii) Purchases
7. (a) (i) Who is an enterprising person?
(ii) Mention any three advantages of self employment.
(b) (ii) Define the term ‘entrepreneurship motivation’.
(ii) State any three ways of fostering entrepreneurial motivation.
(c) (i) State any two techniques an entrepreneur should follow when
presenting a product to customers.
(ii) How can an entrepreneur handle difficult customers?
(d) (i) Who is a social entrepreneur?
(ii) State any three characteristics of social entrepreneurs.
(e) The following information was got from the books of Obakiro an sons
Capital 200,000
Rent prepaid 50,000
Furniture 100,000
Salaries due 30,000
Debtors 120,000
Creditors 60,000
Calculate;
(i) Total assets
(ii) Working capital
(iii)
55
8. (a) (i) who is an entrepreneur?
(ii) Mention any three advantages of self employment.
(b) (i) State any procedures followed when taking an insurance policy.
(ii) Give any two challenges faced by the insurance businesses in
Uganda.
(c) State any four characteristics of appropriate technology.
(d) (i) What is meant by effective communication?
(ii) Mention any three essentials of effective communication.
(e) The following information was got from the books of Obakiro and sons
Capital 200,000
Rent prepaid 50,000
Furniture 100,000
Salaries due 30,000
Debtors 120,000
Creditors 60,000
Calculate;
(i) Total assets
(ii) Working capital
9. (a) (i) List any two causes of labour turnover.
(ii) Give any two costs of labour turnover.
(b) (i) Define the term ‘entrepreneurial motivation’.
(ii) State any three ways of fostering entrepreneurial motivation.
(c) (i) List any two reasons for carrying out production promotion.
(ii) State any two types of practicing social entrepreneurship.
(d) (i) Mention two types of social enterprises.
(ii) State any two advantages of practicing social entrepreneurship.
(e) Given that Mbambu photo studio had the following records
Opening stock shs 340,000
Closing stock shs 225,000
Purchases shs 4,050,000
Calculate for
(i) Cost of sales
(ii) Rate of stock
10. (a) (i) Define the term entrepreneurial culture.
(ii) State any three reasons for promoting entrepreneurial culture.
(b) (i) What is a career?
(ii) Mention three factors considered when selecting a career.
(c) (i) Distinguish between a financial plan and an action plan.
(ii) Mention any two uses of an action plan.
(d) (i) Distinguish between an ‘intrapreneur’ and an ‘enterprising person’.
(ii) State two characteristics of enterprising persons.
(e) (i) Distinguish between an operational budget and a cash flow statement.
(ii) Mention two steps followed when preparing an operational budget.
11. (a) (i) distinguish between ‘achievement motivation’ and ‘entrepreneurial
motivation’.
(ii) State any two factors that hinder entrepreneurial motivation.
(b) (i) distinguish between a ‘business risk’ and a ‘risk situation’
56
(ii) Mention any two types of risks faced by entrepreneurs in business.
(c) (i) State any two sources of innovation of an entrepreneur.
(ii) Give any two advantages of innovation in any business.
(d) (i) State any two essentials of effective communication.
(ii) Mention any two importance of effective communication in business.
(e) (i) List any two characteristics of good negotiating entrepreneurs.
(ii) State any two importance of effective communication in business.
(f) (i) Outline the principles of good business ethics.
(ii) State the importance of business ethics to business.
12. (a) (i) Distinguish between an entrepreneur and an intrapreneur as used
in entrepreneurship.
(ii) State the role of entrepreneurship in economic development.
(b) (i) State any two factors that ring change in business.
(ii) Why do people resist change?
(c) (i) Mention any two factors that bring change in business.
(ii) Distinguish between re-order level and lead time.
(d) (i) distinguish between quality planning and quality policy.
(ii) State two ways of achieving quality in an enterprise.
(e) (i) Define the term sales promotion strategies.
(ii) State any three ways through which sales promotion strategies can be
done.
13. (a) (i) identify any two steps followed by an entrepreneur when
accessing a bank loan.
(ii) State two reasons why an entrepreneur may obtain a bank loan.
(b) (i) State any two elements of total quality management.
(ii) Give any two tools for market research.
(c) (i) List any two types of sources of innovations in business.
(ii) State any two characteristics of creative people.
(d) (i) Identify any two roles of the capital markets authority.
(ii) State two reasons for investing in shares by businessmen.
(e) (i) Distinguish between entrepreneurial culture and entrepreneurial
environment.
(ii) State two social-cultural factors limiting entrepreneurial intentions.
14. (a) (i) Mention any two examples of indirect taxes.
(ii) State two advantages of direct taxes in your country.
(b) (i) Distinguish between a viable business and a feasible business.
(ii) Outline any two indicators of a viable business.
(c) (i) define the term product promotion
(ii)……………..challenges faced during product promotion.
(d) (i) What is meant by the term job grading?
(ii) Mention any three costs of job grading.
(e) (i) Distinguish between stock reconciliation and stock valuation.
(ii) List any two objectives of stock taking.
15. (a) (i) Why may an entrepreneur sell his products on credit.
(ii) State any two objectives of speeding up cash collection from
debtors.
(b) (i) Distinguish between a share and a bond.
57
(ii) Outline any two objectives of carrying out market assessment.
(c) (i) What is meant by the term human resource management?
(ii) Outline any three elements of human resource management.
(d) (i) Give any two reasons for promoting an entrepreneurial culture.
(ii) State any two con constraints of entrepreneurial culture.
(e) (i) Outline any two principles of a good tax system.
(ii) Mention any two examples of direct taxes.
16. (a) (i) Define ‘gender partnership’ in business.
(ii) State three ways of promoting gender balance.
(b) (i) Distinguish between stock reconciliation and stock valuation.
(ii) State two reasons for proper management of inventories in a
business.
(c) (i) Outline any two qualities of a good business goal.
(ii) State any two types of competition in business.
(d) (i) Distinguish between small scale and medium scale businesses.
(ii) Mention two characteristics of small scale businesses.
(e) (i) State any two sources of promoting good customer care.
(ii) State any two ways of promoting good customer care in a business.
17. (a) (i) Give any two indicators of good business opportunities.
(ii) Mention any two qualities of good business ideas.
(b) State any two indicators of good business opportunities.
(ii) Mention two qualities of attractive business opportunities.
(c) (i) Distinguish between ‘gender equality’ and ‘gender roles’.
(ii) Mention any two limitations of gender balance in society.
(d) (i) distinguish between ‘market feasibility’ and ‘financial feasibility’.
(ii) Mention any two types of business opportunities available in Uganda.
(e) (i) Distinguish between a ‘core product and an ‘actual product’.
(ii) List any two attributes of a product.
18. (a) (i) What is a ‘Hybrid’ in social entrepreneurship.
(ii) State any three characteristics of a good business goal.
(b) (i) Distinguish between pessimistic and optimistic perceptions.
(ii) Mention any two opportunities for social entrepreneurs.
(c) (i) distinguish between a ‘business idea’ and a ‘business opportunity’
(ii) Mention any two advantages of generating business ideas by an
entrepreneur.
(d) (i) What is meant by elements of a product?
(e) (ii) State any three factors considered when developing a product.
19. (a) (i) Define the term ‘entrepreneurial motivation’
(ii) State any three objectives of preparing marketing plan.
(b) (i) Distinguish between a ‘business idea’ and a ‘business enterprise’.
(ii) Mention any two advantages for social enterprises.
(c) (i) Distinguish between a ‘business idea’ and a ‘business opportunity’
(ii) Mention any two advantages of generating business ideas by an
entrepreneur.
(d) Mention any four doctrines of insurance.
(e) (i) State any two ways in which quality products can be produced in an
enterprise.
58
(ii) State any two principles of purchasing.
20. (a) (i) What is a ‘natural resource’ in entrepreneurship?
(ii) Mention any three ways of saving natural resources.
(b) (i) Give two characteristics of an entrepreneurial environment.
(ii) List two types of entrepreneurial environment.
(c) (i) State any two reasons for registering a business enterprise.
(ii) Mention any two requirements for requirements a business
enterprise.
(d) (i) Define the term income.
(ii) Mention any three sources of income to an individual.
(e) The following information relates to the books of Kayebe Traders for the
month of December 31st 2013. Use it to answer questions that follow.
Item shs
Land 15,000,000
Furniture 5,000,000
Debtors 6,000,000
Rent in advance 4,000,000
Outstanding electricity bills 1,000,000
Net profit for the year 5,000,000
Required, calculate
(i) The rate of return on capital
(ii) Interpret the rate of return on capital
21. (a) Mention any four benefits of investing in shares
(b) (i) Give two importance of sales promotion to customers.
(ii) List two costs associated with television advertising.
(c) (i) State any two implications of competition in business.
(ii) Mention any two ways of coping with competition in business.
(d) The books of KITONDE ENTERPRISES received the following information
as at 30th June 2014
Turn over shs 1,000,000
Margin 25%
Expenses shs 100,000
Average stock shs 200,000
(i) Calculate sales at cost
(ii) Compute and interpret the number of days stock was held before
selling.
(e) Lucie has a flat in Kampala city where she earns shs 72,000,000/= as
rental income in a year. Given that the rental tax rate is 20%, provisions
for expenses and loss to earn the income is 20% and the threshold is shs
1,560,000.
(i) Compute Lucie’s rental tax
(ii) Net rental income
22. (a) (i) Distinguish between a mission statement and a financial plan.
(ii) Mention any two uses of a mission in an enterprise.
(b) (i) Define the term ‘social entrepreneurship’.
(ii) Mention any two steps involved in identifying social entrepreneurship.
59
(c) (i) Distinguish between a cash flow statement and an income statement.
(ii) List down any two ways of minimizing operating expenses in a
business.
(d) (i) State any two components of a financial plan.
(ii) Mention any two uses of financial ratios in a business.
(e) The following information was obtained from the books of Bigambo Ltd
as at 31/12/20113
Details shs
Sales 7,600,000
Stock (01.01.2014) 600,000
Purchases 5,000,000
Stock (31.12.2015) 980,000
Premium 120,000
Return outwards 700,000
Debtors 900,000
Compute the,
(i) Gross profit
(ii) Inventory turnover rate
23. (a) (i) Distinguish between micro enterprises and small enterprises.
(ii) List any three characteristics of medium enterprises.
(b) (i) distinguish between a ‘marketing mix’ and a ‘promotion mix’.
(ii) Give two elements of a marketing mix.
(c) (i) State any two benefits of advertising to an entrepreneur.
(ii) Give two factors influencing the choice of an advertising medium.
(d) Mention any four canons of a good tax system
(e) The following information was obtained from Gera Traders for the year
ended 31st Dec 2014.
Details shs
Current assets 6,000,000
Current ratio 2:1
Opening stock 1,000,000
Calculate the;
(i) Working capital
(ii) Acid test ratio
24. (a) (i) Distinguish between social entrepreneurship and sustainable
development.
(ii) List any two strategies for community development employed by social
entrepreneurs in your country.
(b) (i) Distinguish between ‘tax evasion’ and ‘tax avoidance’.
(ii) State any two characteristics of a good tax system.
(c) (i) Define the term labour turnover.
(ii) Give two causes of labour turnover.
(d) (i) Define the term lead time.
(ii) State any three advantages of a short lead time to an entrepreneur.
(e) Given that;
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Opening stock shs 600,000
Closing stock shs 340,000
Net purchases shs 800,000
Net sales shs 1,800,000
Calculate
(i) The gross profit
(ii) The mark up
25. (a) (i) Distinguish between a ‘job summary’ and ‘job grading’.
(ii) Mention any two advantages of job specification to an enterprise.
(b) (i) Define an ‘entrepreneurial environment’.
(ii) State any three types of the entrepreneurial environment.
(c) (i) List any two contents of a business letter.
(ii) How can an entrepreneur collect an over due account.
(d) (i) State any two types of social enterprises in Uganda.
(iii) What is the ole of mentoring in creating social enterprises?
(e) Given the following information about GAVAH General Stores for the year
ended 31st Dec 2013.
Details shs
Sales 2,000,000
Gross profit 20% of sales
Operational expenses 100,000
Calculate
(i) Cost of sales
(ii) Net profit to sales ratio
26. (a) (i) Give any two economic factors promoting entrepreneurs intensions
in your country.
(ii) Name any two organizations that support entrepreneurs in Uganda.
(b) (i) Distinguish between a production plan and a management plan.
(ii) Mention any two components of an organizational plan.
(c) (i) State any two environmental standards that should be observed by
entrepreneurs when establishing their businesses.
(ii) Give any two responsibilities of business to the natural environment.
(d) (i) Define the term ‘business goal’.
(ii) State any three challenge faced by self employed in your country.
(e) (i) Outline any two ways in which the government controls business in
your country.
(ii) Mention any two benefits of licensing a business.
(f) (i) Distinguish between a lump sum tax and a specific tax.
(iii) Mention any two forms of tax evasion.
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(g) The following information was extracted from the books of CLASSIC
FURNITURE Enterprises for the year ending 31.12.2012.
Details shs
Net sales 4,500,000
Salaries and wages 600,000
Compute the;
(i) Gross profit
(ii) Net profit
27. (a) (i) What is meant by a business idea.
(ii) List any three steps of turning a business idea into a business
opportunity.
(b) The following information for Latex Enterprises Ltd is provided for the
year ending 2013.
Items shs
Net sales 600,000
Cost of sales 430,000
Rent 80,000
Electricity 30,000
Insurance 20,000
Calculate
(i) Gross profit
(ii) Net profit
(c) (i) What is meant by a product life cycle?
(ii) Mention three stages involved in the product life cycle.
(d) (i) Distinguish between ‘ market feasibility and ‘technical feasibility’.
(ii) Mention any two conditions that guarantee success of an
entrepreneur.
(e) The following information was obtained from DINGIRO Enterprises Ltd
for the period ended 31st Dec 2014.
Item shs
Sales 10,000,000
Goods available for sale 8,500,000
Determine
(i) Cost of sales
(ii) Gross profit mark up
28. (a) (i) Distinguish between a marketing mix and promotional mix.
(ii) Give any two challenges faced during product promotion.
(b) (i) What is meant by the term pricing?
(ii) State any three methods used by entrepreneurs when pricing their
products.
(c) (i) Distinguish between job description and job performance standards.
62
(ii) Give any two methods of paying workers.
(d) (i) Distinguish between a private limited company and a public limited
company.
(ii) List any two advantages of a public limited company.
(e) (i) List any two benefits of capital markets authority in Uganda.
(ii) Mention two advantages of collective investment schemes to
entrepreneurs.
29. (a) (i) Distinguish between a viable business and a feasible business.
(ii) List any three steps of turning a business idea into a business
opportunity.
(b) (i) Define an ‘entrepreneurial environment’
(ii) State any three types of the entrepreneurial environment.
(c) (i) Distinguish between stock reconciliation and stock valuation.
(ii) List any two objectives of stock taking.
(d) (i) List any two benefits of capital markets authority in Uganda.
(iii) Mention two advantages of collective schemes to entrepreneurs.
(h) The following information was extracted from the books of CLASSIC
FURNITURE Enterprises for the year ending 31.12.2012.
Details shs
Net sales 4,500,000
Compute the;
(i) Gross profit
(ii) Net profit
30. (a) KABAJJA Motors Ltd bought a tractor at Ug. Shs 90,000,000/=
expected to last for 15
years leading to scrap value of Ug. Shs 10,000,000/=
Calculate
(i) Annual depreciation
(ii) Value of the tractor after 5 years
(b) (i) Define the term ‘risk assessment’.
(ii) Give any three basis for risk assessment in business.
(c) State any four tools for effective marketing strategy.
(d) (i) define the term ‘mission statement’
(ii) Give any three uses of a mission statement in a business.
(e) Given the rate of stock turn as 5 times and the average stock shs
114,000. Determine the business’ sales at cost.
31. (a) (i) Define the term entrepreneurship.
(ii) State the role of entrepreneurship in economic development.
(b) (i) Define the term career.
(ii) State any three merits of being self employed.
(c) (i) Distinguish between credit selling and personal selling.
(ii) Mention any two costs of selling goods on credit.
(d) (i) Define the term skills as used in entrepreneurship.
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(ii) State any three managerial skills required for successful
entrepreneurship.
(e) Outline the stages in the creative process.
32. (a) (i) Define the term career.
(ii) State any three factors influencing the choice of a career.
(b) (i) Give any two components of a business plan.
(ii) Outline any two merits of financial record keeping in small
businesses.
(c) (i) Distinguish between quality control and quality assurance.
(ii) Outline any two benefits of setting quality standards of a business.
(d) (i) Define the term business plan.
(ii) Give any three steps followed when preparing a business plan.
(e) (i) Give any two tools used when carrying out market research.
(ii) State any three sources of information used during market research.
33. (a) (i) Define the term social enterprise.
(ii) State any three types of social enterprises.
(b) (i) State any two forms of communication.
(ii) Give any two forms of information required by any business.
(c) (i) Define the term purchasing.
(ii) Outline any three factors considered when purchasing raw materials
for a business.
(d) (i) What is meant by an administrative plan?
(ii) State any three components of a production plan.
(e) (i) Define the term induction.
(ii) Outline the factors considered when preparing induction of
employees.
34. (a) (i) Define the term entrepreneurial motivation.
(ii) Outline any three behavioural characteristics associated with a strong
need to achieve.
(b) Outline the four limitations to creativity.
(c) (i) Outline two types of risks.
(ii) Give any two advantages of delegating authority.
(d) (i) State any two challenges associated with family business.
(ii) Suggest two ways of overcoming them.
(e) (i) Define a target market population.
(ii) State any two challenges of identifying a target market population.
35. (a) (i) Distinguish between
(i) A ‘capital market authority’ and a ‘collective investment scheme’
(ii) A ‘share’ and a ‘bond’
(b) (i) define the term ‘organogram’
(ii) Outline the procedure for recruiting employees in an enterprise.
(c) State any four procedures for recruiting employees in an enterprise.
(d) (i) Identify two characteristics of oligopoly.
(ii) List any two ways of competing in business.
(e) Give any three roles of stock markets in the economy.
(i) Tax base and taxable capacity
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(ii) Tax evasion and tax avoidance
(b) List the advantages and disadvantages of investing in shares.
(c) (i) Define the term ‘marketing techniques’
(ii) List three techniques used by entrepreneurs to market their products.
(d) (i) What are the guidelines followed when preparing an advertising
message?
(ii) Explain the factors limiting effective advertising in Uganda.
(e) (i) State any two merits of investing in bonds.
(ii) Mention any two disadvantages of investing in bonds.
37. (a) (i) Define the term ‘promotion mix’.
(ii) State three objectives of product promotion.
(b) (i) What are the elements of a quality product?
(ii) State the ways of ensuring quality business products.
(c) State any three benefits of investing in collective investment schemes.
(d) (i) distinguish between ‘prime’ and ‘overhead’ costs of production.
(ii) State any two methods of costing a product.
(e) State the advantages and disadvantages of debt financing.
38. (a) (i) Distinguish between ‘inventory’ and ‘inventory control’.
(ii) Identify any two types of inventories in business.
(b) (i) Distinguish between an ‘ordinary share’ and a ‘preference share’.
(ii) State any two characteristics of ordinary shares.
(c) (i) Define an operational budget.
(ii) State any three steps followed when preparing an operational budget.
(d) State any four roles of capital markets in business.
(e) (i) Distinguish between ‘financial sustainability’ and ‘impact
sustainability’.
(ii) State any two ways of sustaining a social enterprise.
39. (a) (i) Give the benefits of capital markets to entrepreneurs in Uganda.
(ii) State the challenges facing the capital markets industry in your
country.
(b) (i) State any two components of a production plan.
(ii) Outline the steps involved in preparing a business plan.
(c) (i) Give any two types of bonds.
(ii) State any two reasons for investing in bonds.
(d) (i) List any two types of entrepreneurial environment.
(ii) Mention any two characteristics of an entrepreneurial environment.
(e) (i) What is a stock exchange market?
(ii) Mention any three types of capital market products in Uganda.
40. (a) (i) State any two principles of insurance.
(ii) Give two merits of insurance to business entrepreneurs.
(b) (i) List any two guidelines for creating effective personal branding.
(ii) Give any two benefits of developing a good personal brand.
(c) (i) Distinguish between a ‘business risk’ and a ‘risk situation’.
(ii) Mention any two types of risks faced by entrepreneurs in business.
(d) (i) Distinguish between ‘non-profit’ and ‘hybrid’ enterprises.
(ii) Mention any two advantages of social enterprises.
(e) (i) Outline the principles of good business ethics.
65
(ii) Give any two advantages of innovation in any business.
41. (a) (i) Distinguish between a ‘task’ and a ‘skill’ as used in
entrepreneurship.
(ii) Give any two managerial skills that should be possessed by
entrepreneurs.
(b) (i) What is meant by sustainable development?
(ii) Give any three elements of a social enterprise plan.
(c) (i) Distinguish between a ‘business idea’ and a ‘business opportunity’
(ii) Mention any two components of a financial feasibility study.
(d) (i) Distinguish between ‘gender partnership’ and ‘gender balance’
(ii) Mention any two factors that enhance gender partnership in society.
(e) (i) Outline any two contents of an executive summary.
(ii) State any two uses of a production plan.
(f) (i) tate any two types of leadership in entrepreneurship.
(ii) Give any two management tasks executed by entrepreneurs in
business.
PROJECT MANAGEMENT
1. You are a share holder in a company selling fruits.
(a) Design a certificate to be issued to the share holders.
(b) Write a letter inviting the share holders to an annual general meeting.
(c) Draw an organizational chart for the company.
(d) (i) Design a receipt for a business use.
(ii) Prepare an invoice to be issued to your customer who has made a
credit purchase.
2. You own an old motor garage that frequently has problems due to poor
management. You have decided to sell it off and use the money to buy
a new one.
(a) Formulate the terms and conditions for the sell of the old firm.
(b) Draft the rules and regulations to be followed by the firm workers while
conducting themselves and business operations.
(c) Design a certificate of appreciation to be issued to employees with
outstanding performance.
(d) Write a dismissal letter to one of your workers who has been indiscipline.
3. You are involved in the production of honey in your home town.
(a) Write a quotation to one of your customers who has written an inquiry to
know about your products.
(b) Draw a programme to promote your products.
(c) Formulate guideline to be followed by your workers to ensure production
of high quality products.
(d) Prepare a marketing plan for your business.
4. You own a whole sale shop dealing in cosmetics and you sell to
retailers in various towns.
(a) Design business card to be given to potential customers.
(b) Prepare a weekly distribution schedule for your products.
(c) Prepare a delivery note to accompany customer’s purchases.
(d) Make guidelines to be followed when selling your products on credit.
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5. You are the owner of a grain mill operating in your town.
(a) Prepare a local purchase order for the necessary machines.
(b) Prepare an organizational plan for your enterprise.
(c) Write a warning letter to an employee whose performance is not to the
set standards.
(d) Prepare a company’s asset register.
6. You have decided to join with two other entrepreneurs to form a
partnership dealing in metal fabrication.
(a) Prepare a policy for maintenance of worker welfare.
(b) Write;
(i) A job description
(ii) A job specification for the post of the production engineer.
(c) Draft a partnership deed for the business.
(d) Prepare a memo for the staff to attend an urgent meeting on quality
improvement.
7. You have obtained money worth shs 500,000,000 to establish a fruit
growing project.
(a) Prepare a budget for your project.
(b) Draft an Action Plan for implementing the planed business activities.
(c) Formulate guidelines for promoting innovation in your business.
(d) Design a quotation for use in your business.
8. You have established a social enterprise aimed at addressing dangers of
deforestation.
(a) Give the general description of the business.
(b) Design a programme for becoming a social entrepreneur.
(c) Draw a root cause analysis for deforestation.
(d) Present policy guidelines for enhancing gender partnership in your
business.
9. You have been appointed as a marketing manager in a declining
bakery.
(a) Draft a programme for purchasing business requirements.
(b) Prepare a marketing plan for the business.
(c) Design a receipt for use in your business.
(d) Write a monthly departmental report to the general manager.
10. You are operating a Small Tea Processing plant in your town in a
congested place. You would like to shift the business to a amore
spacious place.
(a) Write a notice to the public about your intentions of changing the
location.
(b) Present policy guidelines for presenting business products.
(c) Design a newspaper advert for the post of the sales manager.
(d) Draft a questionnaire that will be used to collect data from your potential
customers.
11. You are operating a business dealing in sale of electric appliances.
The business sells expensive items on a hire purchase basis.
(a) Prepare terms and conditions for the hire purchase agreement.
(b) Write a purchase order or the stock to your business.
67
(c) Design a time chart used in your business.
(d) Prepare a credit status inquiry about Mr. Kasolo who wants goods on
credit worth shs 1,000,000.
12. You are operating a secretarial bureau in your home town
(a) Prepare a goods returned note for the goods returned.
(b) Formulate a pricelist for your products.
(c) Write a cheque of shs 2,000,000 in favour of reliance stationers your
cedit supplier.
(d) Prepare a profile for your business.
13. You are a marketing manager of a fruit processing business which is
experiencing decline in sales. You are in the process of making it
regain its glory.
(a) Write a report on the market survey you have just carried out.
(b) Formulate a market survey guide.
(c) Prepare a production plan for your business.
(d) Propose guidelines for ensuring high quality products.
(e) Present a programme for minimizing risks in your company.
(f) Formulate guidelines for developing creative ability among staff.
14. Yu are operating a small clay works project and you have just
obtained a bank loan of shs 20,000,000 for expansion of the business.
(a) Prepare an induction programme for the mechanical engineer just
recruited.
(b) Write a letter inviting all shareholders to an Annual General Meeting.
(c) Design a share certificate to be issued to shareholders.
(d) Develop guidelines to be followed to ensure safety of the workplace.
15. You are operating a medical centre in a populated area.
(a) Design a medical form to be issued to out patients.
(b) Prepare guidelines to be followed to ensure cleanliness in the medical
centre.
(c) Give a job description for the post of medical doctor.
(d) Draw a working capital budget of shs 10,000,000 for promoting the
business.
(e) Present an administrative chart for your business.
(f) Write an appointment letter to one of the new nurses.
16. You own a soap manufacturing company
(a) Write a general description for you business.
(b) Present an orientation programme for newly recruited workers.
(c) Prepare a debt note to a customer who is complaining for having been
under invoked.
(d) Develop guidelines for selecting machines to use in your business.
17. You are in process of expanding a juice processing firm after two
years of operation.
(a) Prepare an expansionary budget of shs 60,000,000
(b) Design a job application form to use for recruitment exercise.
(c) Draw a risk minimizing programme you are to use while expanding it.
(d) Draft a code of conduct for members of staff.
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18. You are the human resource manager of a business dealing in bakery
products.
(a) Write a memo for extension of th urgent meeting on quality improvement.
(b) Prepare a production plan.
(c) Write terms and conditions. If you are to apply goods on a contract.
(d) Draw a program to promote your products.
19. You are operating a metal fabrication in a near by trading centre.
(a) Prepare
(i) A fixed capital budget
(ii) Working capital budget
(b) Design an appraisal form for usage in the human resource department.
(c) Prepare safety guidelines for workers.
(d) Prepare a programme for obtaining loan funds to start commercial
production.
(e) Write a letter of termination to Mr. Kasodde Peter a cashier who is
fraudent.
20. You are operating a partnership business dealing in construction
materials and services
(a) Write a letter inviting shareholder to annual general meeting.
(b) Design a shre certificate to be issued to share holders.
(c) Formulate guidelines for safety of work place.
21. You have mobilized students to form a partnership business with
capital of shs 5,000,000
(a) Design a one month’s action plan for the business.
(b) Draft a partnership deed for the business.
(c) Mr. Kato on 30.05.2012 bought the following items on credit;
5kgs of sugar at 3,200 per kg.
6 loaves of bread at shs 1200 each and
2 packets of coffee at shs 800
Prepare an invoice to record the transactions.
(d) Formulate a financial policy for proper management of business funds.
22. You have started a project manufacturing plastic products with shs
60,000,000
(a) Write a memorandum of association you are to follow.
(b) Write up the duties and responsibilities of the manager.
(c) Prepare safety guidelines to be followed by your employees.
(d) Advertise your products to a new area you have just penetrated.
23. You have obtained a loan of shs 20 million from Tropical Bank to
expand your carpentry project. The loan is payable in 5 equal monthly
installments at an interest rate of 10% on outstanding balance.
(a) Prepare a loan repayment schedule.
(b) Draw up financial plan for the expansion of your business.
(c) Design an appraisal for usage in the human resource department.
(d) Formulate guidelines for selecting and handling machinery in your
business by employees.
(e) Write a memo informing the resource manager about employees’
dilemma in the business.
69
(f) Write a letter to a loan officer requesting him for a grace period of a year
to clear up your loan.
24. You own a milk cooling plant
(a) Draft a market flow chart for your products.
(b) Draw up one week schedule for distribution of work.
(c) Design a payroll for workers.
(d) Develop guidelines to be followed to minimize costs of production.
25. You are conducting market research for your new established juice
company.
(a) Design a questionnaire to be used to collect information from potential
customers.
(b) Write a day’s petty cash voucher for marketing officers.
(c) Draft an interview programme for job applicants.
(d) Draft a radio announcement to publicize your products.
26. You own a maize milling plant and you have noted with great
concern the need to stock more raw materials. Due to inadequate
funds you have decided to acquire a loan of shs 10,000,000 payable in
four equal installments at an interest rate of 5% per month on
reducing balance method.
(a) Prepare a programme for purchasing raw materials for the business.
(b) Draft a working capital budget for the business.
(c) Prepare guidelines to ensure proper management of the loan in th
business.
(d) Design a cash payment voucher to be used in the business.
27. You are the marketing manager of a bakery producing a variety of
baked items in your home area.
(a) Design a sign post for your bakery.
(b) Design a flier to be issued to the potential customers.
(c) Prepare a marketing plan for the business.
(d) Design a customer satisfaction survey tool to be used to get feedback
from customers about your business.
28. You have accumulated funds to operate a juice processing plant in
your home are and you are to recruit workers.
(a) Prepare an Action plan for your juice processing plant.
(b) Prepare a production plan for your business.
(c) Design a stock requisition form to be used in your business
(d) Develop guidelines to ensure proper conduct of workers at the work
place.
29. You have obtained a loan worth shs 120 million to improve your
clay works project. The loan if payable in six equal monthly principle
installments at an interest rate of 2% per month on a reducing balance
method.
(b) Design an advertisement for the post of a production manager.
(c) Prepare an organizational plan for your project.
(d) Design a performance appraisal for your employees.
70
30. You intend to join with your brothers and sisters to start a family
medical center in your home town.
(a) What measures will you take to overcome the challenges that usually
face family businesses?
(b) State the major aspects that you will include in the medical treatment
form.
(c) In what ways will you foster innovations in the family business?
(d) Explain the steps you will take to insure the family business.
31. Your firm tractor is presently breaking down due to poor handling.
You are planning to sell it off and acquire a new one.
(a) Prepare the terms and conditions of the sell of the old tractor.
(b) Prepare a purchase order form for a new tractor.
(c) Draft the rules and regulations to be followed by your employees when
handling the new tractor.
(d) Design a service schedule for maintaining the new tractor.
32. As a practicing entrepreneur, you have been selected to give an
inspirational address to a group of the youth in your village intending
to start up a feasible and viable income generating project for the
survival and attainment of future goals.
(a) (i) Define the term business idea.
(ii) Distinguish between feasible and viable business idea.
(iii) Guide the youths on the ways of operating business idea.
(b) Suggest the various sources of business ideas to the youths being
addressed.
(c) What is the importance of generating business idea?
(d) Explain the factors considered when evaluating business idea.
33. You are a new entrepreneur in your locality operating a powerful
fruit process project.
(a) Write down guidelines to foster innovation in your project.
(b) Prepare an induction program to new employees in the project.
(c) Prepare an implementation plan for your project.
(d) Design a personal identification card.
34. You are operating a small bakery project as a group and you have
obtained a bank loan of shs 20,000,000/= for expansion of the
business.
(a) Prepare an induction programme for the mechanical engineer that has
just been recruited.
(b) Write a letter inviting all shareholders to an annual general meeting.
(c) Design a share certificate to be issued to the shareholders.
(d) Prepare a delivery note for products to your customer.
(e) Develop guidelines to be followed to ensure safety of the work place.
35. You have started a cock tail juice processing business during your
S.6 vacation after identifying it as the best business opportunity in the
community.
(a) (i) Define a business opportunity.
(ii) Give the characteristics of a good business opportunity.
(b) Mention the indicators of a good business opportunity.
71
(c) State the major aspects you will consider when carrying out a feasibility
study for your intended business.
(d) Give at least four types of business opportunities that can be undertaken
by an entrepreneur.
(e) What factors will you consider when deciding on the location of your
business?
36. You are operating a medical centre in a heavily populated area.
(a) Design a medical form to be issued to the out patients.
centre.
(c) Give a job description for the post of a medical doctor.
(d) Draw a working capital budget of shs 10,000,000/= for promoting the
business.
(e) Present an administrative chart for your business.
37. You intend to start a poultry farm on a small scale given the limited
financing capital but with plans of upgrading the business into a
medium scale or large scale enterprise.
(a) (i) Distinguish between small and medium scale enterprise.
(ii) State any two advantages of medium scale enterprises
(b) What is the role of small scale enterprises in economic development?
(c) Give reasons for the failure of most small and medium scale enterprises
in your country.
(d) Suggest measures of overcoming the challenges faced by small and
medium scale enterprises in your community.
38. You are a marketing manager of a fruit processing business which is
experiencing decline in sales. You are in the process of making it
regain its glory.
(a) Write a report on the market survey you have just carried out.
(b) Formulate a market survey guide used in collecting market information.
(d) Propose the guidelines for ensuring high quality products.
(e) Present a programme for minimizing risks in your company.
39. You intend to start a restaurant in a noisy, partially insecure and
busy city centre but with a big market potential. You are planning to
insure your business against any risky situations and ensure steady
operations.
(a) Distinguish between a risk situation and a business risk.
(b) Identify the steps you will follow while undertaking an insurance
contract.
(c) Give four principles of insurance.
(d) State any two types of general insurance policies you know.
(e) Mention four reasons for insuring your business against certain risks.
40. You are operating a soft drinks project in your home locality.
(a) Design a plant layout for your factory.
(b) Prepare a radio advert to make your project known to the public.
(c) Design a receipt which you will issue to your potential customers.
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(d) Prepare a package sheet to be issued to your customers.
41. You have established a fuel station along a road with many vehicles.
You distribute fuel stations in other towns in Uganda.
(a) Draw a one week distribution schedule for your products.
(b) Write a statement of account to one of your regular customers.
(c) Prepare a job advertisement for the post of an accountant for the
business.
(d) Formulate guidelines for developing the creative ability among your sales
staff.
(e) Design an invoice to be issued to credit customers.
42. You intend to start a bread and wedding cakes business in your
home village.
(a) (i) State the vision of your business.
(ii) Provide a mission statement for your intended business.
(b) Give two goals and two objectives for your business.
(c) Design an advertisement message to make your business known to the
general public.
(d) Explain the marketing strategies you will use in the intended business.
(e) What steps will you take to make your business competitive over other
similar businesses in the locality?
43. You intend to start up an orphanage home as a social enterprise
during your advanced level vacation.
(a) (i) Identify two types of social enterprises
(ii) How different is your type of enterprise from a business.
(b) Give the different characteristics of social entrepreneurs.
(c) State the negative effects of business activities on the environment.
(d) What is the importance of practicing social entrepreneurship?
44. You are engaged in the manufacture of Human Drugs including
tablets and syrups as well as offering treatment to out patient clients.
(a) Design a label to be placed on the cough syrup.
(b) Design a reception register for your business.
(c) Prepare a payroll for your employees for the month just ended.
(d) Design a stock requisition form to be issued by your company employees
to access stored materials.
(e) Prepare a quotation to one of the customer who has picked interest in
your products.
45. You have agreed with your family members to use the family
resources to tart up a wholesale shop in your village.
(a) Identify the family resources you will use in the business.
(b) What if the importance of family savings in establishing such a business.
(c) How ill the family members benefit from the business.
(d) What challenges are you likely to face with family involvement in the
business?
(e) Suggest measures you will put in place to ensure success of the
business.
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46. You are a general manager of a liquid soap producing business.
(a) Propose guidelines for ensuring proper code of conduct for your
employees.
(b) Design a debt note to be used when correcting an under charge on the
customer’s invoice.
(c) Prepare guidelines for ensuring proper inventory management.
(d) Write a termination letter to your incompetent employee.
(e) Design an appraisal form for usage in the human resource department.
47. You intend to start a micro enterprise in Naluvule, your home
village next year after completing your Bachelor’s degree in
Entrepreneurship and small scale business management from Makerere
University.
(a) Mention some of the business options you are likely to start.
(b) Explain the factors you will consider when formulating your business
idea other than the market.
(c) What personal entrepreneurship skills will you use to make your
business successful?
(d) State the social concerns your business will meet.
(e) What aspects are you likely to address in your business implementation
planning.
48. You have acquired a loan worth shs 72,000,000/= for establishing a
new branch of your metal works project. The loan is payable in 6 equal
monthly installments at monthly interest of 4% on the outstanding
balance.
(b) Formulate guidelines for ensuring proper loan management.
(c) Develop a week’s work schedule for your employees.
(d) Prepare an action plan for the business.
49. You are working as the chief auditor in the IGG’s office in Kampala
City and you have been invited by the commissioner general of URA to
facilitate a tax payers workshop on individual tax computations, tax
compliance and use of tax e-tax payment system by the public.
(a) Educate the participants on the basics of computing the following taxes
(i) Personal income tax
(ii) Pay As You Earn
(iii) Rental tax
(iv) Import tax
(v) VAT liability
(b) Provide the justification for educating the tax payers on the basics of tax
computation.
(c) What are the dangers of non-tax compliance?
(d) Suggest to URA officers the best measures of encouraging tax
compliance.
50. You are a human resource manager of Trust bakery and
confectionaries limited. You have identified the need to sensitize the
employees on customer care tips so as to increase output and sales.
(a) Prepare a one week training programme for the workers.
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(b) Prepare a marketing plan for your business products.
(c) Develop policy guidelines for controlling production costs in your
business.
(d) Draft a one week promotional programme for your business.
(e) Design an application form for usage in the human resource department.
51. You are operating a shop selling expensive electric appliances which
you give to the customers on a hire purchase order.
(a) Prepare the terms and conditions for the hire purchase agreement.
(b) Design a time sheet used in your business.
(c) Write a purchase order for the stock to your business.
(d) Prepare a credit status inquiry about Mr. Wanume who wants goods
worth shs 3,000,000/= on credit.
52. You intend to establish a supermarket in your home town.
(a) What aspects will you include in the customer information collection
form?
(b) What books of accounts will you use in the management of your
business?
(c) What challenges are you likely to face in the operations of your business?
(d) Explain the process you will follow when recruiting employees for your
business.
53. You are operating a maize grain milling factory. You have been
given a tender to supply maize flour to Muno Mukabi Secondary School
of Budingo Village.
(a) Develop the terms and conditions that will be included in the contract
you will sign with the school.
(b) Write a standing order to Housing Finance Bank to effect the payment of
water bills to NWSC.
(c) Write a warning letter to your company driver for bad driving.
(d) Prepare a credit note for a customer who was over invoiced.
(e) Develop the guidelines for ensuring proper machine handling and safety
in the business.
54. You have been appointed as the Human resource manager to help
Del Ltd promote its operations as a newly established business.
(a) Prepare a management tasks flow chart for the business.
(b) What activities will you propose to the management to promote the
creative abilities of workers in the business?
(c) Design a work contract to be signed by the employees of the business.
(d) What measures will you put in place to protect the new business from
competition?
55. You are operating a small carpentry workshop that can not meet the
increasing market demand. You are planning to expand your workshop
for increased production.
(a) Estimate the total capital requirements for the new workshop.
(b) Draw a financial plan for your project.
(c) Design a banner to promote your business.
(d) Design a delivery note that will be issued to your potential customers.
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56. You are planning to mobilize various people in the community to
inspire and enable them establish business for prosperity and personal
development.
(a) What entrepreneurial characteristics will you emphasize in your
inspirational speech?
(b) What arguments will you advance when convincing people to start up
personal business projects.
(c) Estimate the people on the procedure to take when analyzing the risks
involved in a particular business.
(d) What measures will you take to promote creative abilities of the people
intending to start business?
57. You have started a bakery project in your home town.
(a) Prepare a marketing plan for your products.
(b) Design a quotation to be sent to your prospective customers.
(c) Choose a suitable medium and design an advert for your products.
(d) Prepare a purchase order for raw materials in your project.
58. You intend to start a poultry business on a large scale as ……….loan
funds as capital.
(a) Suggest measures to guide the operations and relations of the partners
in the business.
(b) What measures will you adopt to ensure proper management of the bank
loan in the business?
(c) Explain to the partners the benefits of being tax compliant to the
business.
(d) What aspects are you likely to include in the job analysis procedure for
the business?
59. You are operating an agricultural produce trading store and you
have been contracted to supply maize to the school in your sub-county.
Due to inadequate funds you have been teamed up with other trading
stores to form a partnership.
(a) Prepare a partnership deed for your business.
(b) Prepare the terms and conditions of the contract for the supply of maize
flour.
(c) Design an invoice for your enterprise.
(d) Write a letter to the school administrator reminding him to clear
outstanding balance which is due.
60. You intend to start an orphanage home in your home village.
(a) What characteristics do you need to posses in order to be successful in
this nature of business?
(b) State some of the sources from which you are to acquire start up capital
to establish the orphanage home?
(c) How will you make your orphanage home known to the general public?
(d) Explain the business ethics you will practice in your business.
61. You are operating a honey processing business which you have just
started.
(a) Design a work order form for use in the business.
(b) Prepare a tender notice for supply of honey to the business.
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(c) Draw a one week promotional programme for your business.
(d) Design a marketing flow chart for your business.
62. You are planning a business management skill s workshop targeting
the jobless and youths in your home District.
(a) What attractive aspects will you include in the message inviting the
general to attend the workshop?
(b) Advise the participants on the steps they are to follow while establishing
a particular business.
(c) Provide business tips to the participants on how to make their
businesses successful.
(d) What steps will you take to encourage women participants to establish
businesses after the workshop?
63. You have just joined a waste recycling company as a general
manager.
(a) Prepare a programme for recruitment of more employees in the
production department.
(b) Design a master daily work schedule for your company.
(c) Design a payment voucher to be used when paying your employees.
(d) Write a promissory note to one of the suppliers for the amount due.
64. You have established a hardware store in your home town. Your aim
is to have an efficient and effective staff.
(a) Write an organizational plan for the business.
(b) Design a cash receipt to be used in the business.
(c) Write a termination letter to Mr. Kakembo the stores ……store items
especially cement.
(d) Design a work schedule to be used in the business.
65. You intend to start a Unisex salon in your home town.
(a) Design a job application form to be used by the applicants seeking
employment in your business.
(b) What business ethics will you practice towards the customers?
(c) What measures will you take to ensure quality services to your business
customers?
(d) Explain the activities you will take to ensure proper handling and storage
of operational tools and equipments in the saloon.
66. You intend to start a plastic manufacturing business.
(a) Describe the elements of a workplace you would consider to increase the
productivity of your business.
(b) Explain the measures you would take to reduce the costs of production
of the business.
(c) In what ways may your business be harmful to the natural environment?
(d) Suggest measures you would take to minimize the dangers of your
business to the natural environment.
67. You are operating a clay works project. You have received an
inquiry about the goods available for sale.
(a) Prepare a quotation to reply the above inquiry.
(b) Prepare an organizational plan for your project.
(c) Prepare a monthly payroll for your employees.
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(d) Formulate the terms and conditions under which your products will be
sold.
68. You intend to start up metal fabricating business worth 80 million
shillings.
(a) What factors will you consider when assessing the target market for your
products?
(b) Prepare a financial plan for your project.
(c) Explain the challenges faced in the manufacturing sector.
(d) Outline the support services you will require to market your products.
(e) Suggest solutions to overcome the challenges faced by manufacturing
businesses.
69. You are applying to Africell Telecom Ltd as a general manager. You
are to initiate changes to help the company reclaim its image and
increase sales.
(a) State the aspects of the management tasks you will include in the
business revival programme.
(b) What measures will you take to ensure good customer care in the
business?
(c) State the main aspects you will include in the root cause analysis for the
declining volume of sales in the enterprise.
(d) Explain the activities you will include in the programme for conducting
interviews in the business.
70. You intend to start a small scale soap factory worth 50 million
shillings.
(a) Prepare a budget for your proposed business.
(b) How will you ensure safety of machines during production?
(c) What measures will you take to ensure good quality of your products?
(d) Suggest the welfare facilities you will put in place to enhance the
performance and productivity of workers.
71. You have mobilized friends to raise more capital and expand the bus
company with additional loan of shs 20,000,000/= borrowed from
Busoga cooperative society.
(a) Develop a partnership deed for the business.
(b) Design a weekly travel schedule to be availed to the customers.
(c) Using a suitable medium, inform the public about your new business.
(d) Draft an advertisement for the post of a transport officer.
(e) Design a bud fair ticket to be issued to the customers.
72. You intend to visit Compaq an ICT company to offer professional
advice to management as marketing expert.
(a) What aspects of marketing plan will you include in your presentation?
(b) Prepare a programme to aid the personal selling activity in the business.
(c) What items are you likely to include in the training programme for
workers in the marketing department?
(d) Present the qualities of a good sales person as a means to boost the
creative marketing abilities of the sales department.
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73. You have obtained a loan worth 40 million to improve your metal
fabrication project.
(a) Prepare a budget for the proposed project.
(b) Write an advertisement for the post of a project manager.
(c) Draft guidelines to ensure proper management of hazardous substances
in the business.
(d) Design an organizational plan for your project.
74. You intend to start a milk processing and packaging plant in your
locality.
(a) Identify the requirements for starting your project.
(b) How will you attract customers to buy from your business?
(c) What factors will you consider when selecting machinery and
equipment?
(d) What benefits is your business likely to bring to the local community?
75. You intend to operate a restaurant in your local area.
(a) Explain the factors you will consider when recruiting employees for your
business.
(b) Outline the techniques you would use to motivate your employees.
(c) What methods will you use to appraise the performance of your workers?
(d) How would you promote good customer relations in your business?
76. (a) You have been selected as the outstanding tax complaint
entrepreneur in
Wakiso District.
The District Trade Officer has requested you to address other
entrepreneurs about the growing concern of tax evasion and tax
avoidance among various entrepreneurs in the District.
(i) Distinguish between tax evasion and tax avoidance.
(ii) Give at least three examples of tax evasion practiced by
(iii) Explain the consequences of tax evasion to the business.
(iv) Suggest to the entrepreneurs the actions they can take increase
the level of tax compliance.
registered businesses in your community for the month of Jan 2015.
I. Makwech produced goods worth shs 32,000,000/=
II. Makur bought the same goods for shs 40,000,000/=
III. Makur sld the same goods to Mangar for shs 58,000,000/=
IV. Manger sold the same goods to Majak for shs 70,000,000/=
V. Majak sold the same goods to Manyial for shs 84,000,000/=.
Taking the VAT rate as 18%,
(i) Compute the VAT chargable for the value added at each stage.
(ii) Compute Majak’s VAT liability.
(iii) Advise Manyial on the gross sales value for his goods to the
customer.
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77. You have obtained a loan worth shs 50 million to expand your small
soap factory.
(a) Prepare a plant layout for the new factory.
(b) Design a business card to promote your business.
(c) Design a pay slip to be used in the business when paying workers.
(d) Prepare an advertising message for your company workers.
78. You are operating a small juice processing plant that is facing stiff
competition from the existing well established juice companies.
(a) Prepare a one week promotional programme to make your business
more known to the public.
(b) Formulate guidelines to ensure production of quality products in the
business.
(c) Write an acknowledgement note to a customer that has expressed
interest in your company products.
(d) Prepare a package sheet to one of your customers who has ordered for
juice products.
(e) Design an invoice to be issued to the prospective customers.
79. You have obtained a loan worth 100 million shillings from Masaka
youth development fund to open up a fruit and vegetable processing
plant.
(a) Draw a financial plan for your proposed project.
(b) Design a delivery note to be used in the business.
(c) Design a petty cash voucher to be used in paying small expenses.
(d) Design an invoice to be issued to the customers.
80. You are a soft drinks processing and packaging project in your town.
employees.
(b) Write a termination letter to the sales manager for continued
incompetence.
(d) Prepare a package sheet to be issued to your future customers.
81. You have started a bakery project after obtaining a loan of shs 100
million from Global Trust Bank. The loan is payable in five equal
monthly principle installments t a monthly interest of 10% depending
on the outstanding balance.
(b) Design a payroll to be followed while paying your employees.
(c) Prepare an organizational plan for your business.
(d) Draft the guidelines to be followed to ensure proper management of the
bank loan.
82. You are operating a small scale carpentry workshop that can ot
meet the increasing demand. You are planning to expand it for
increased production and you ave an inquiry about your firm products
from Mat hardware.
(a) Estimate the total capital requirements for the new workshop.
(b) Write a quotation in response to the above inquiry.
(c) Design a one week promotion programme for your business.
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83. You are operating a soft drinks processing packaging project in your
home town.
(a) Design a plant layout for your factory.
(b) Prepare measures to be taken to ensure production of quality products.
(d) Prepare a package sheet to be issued to your future customers.
84. You are operating a small clay works project and you have obtained
a bank loan of shs 20,000,000/= for expansion of the business.
(a) Prepare an induction programme for the mechanical engineer just
recruited.
(b) Write a letter inviting all share holders to an Annual General Meeting.
(c) Design a share certificate to be issued to shareholders.
(d) Develop guidelines to be followed to ensure safety of the workplace.
85. You have been recruited in a business selling baby wear as sales
person.
(a) Describe the business laws you observe when conducting business
activities.
(b) State the terms and conditions under which your products will be sold.
(c) Describe the books of accounts you will use for the different types of
transactions.
(d) What measures would you take to maintain good working relations in
your business?
You also distribute fuel to various fuel stations in other towns in
Uganda.
(a) Draw a one week distribution schedule for your products.
(c) Prepare a job advertisement for the post of an accountant for the
business.
(d) Design an invoice to be issued to credit customers.
87. You are the Human Resource Manager of Quality Bakery Limited.
You have identified a need to sensitize workers to increase output.
(a) Prepare a four days training programme for the workers.
(b) Prepare a marketing plan for your business.
(c) Draft a one week promotional programme for your business.
(d) Design a job application form for usage in the Human Resource
Description.
88. You own a grain milling plant. You have won a contract to supply
maize to Magezi Secondary School.
(a) Develop the terms and conditions to be included in the contract.
(b) Prepare a credit note for a customer who was over invoiced.
(c) Write a standing order to Centenary Bank to effect payments to UMEME.
(d) Develop guidelines for handling machines in the business.
(e) Write a warning letter to your driver for bad driving.
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89. You have acquired a loan shs worth shs 90,000,000/= for
establishing a new branch of your metal works project. The loan if
payable in six equal monthly installments at a fixed monthly interest
of 2%.
(b) Prepare an action plan for the business expansion.
(c) Develop a week’s schedule for your employees.
(d) Formulate guidelines for ensuring proper management of the bank loan.
90. You are operating a milk processing and cooling business, you would
like to recruit sales agents to carry out marketing.
(a) Write a job description for the post of sales agent.
(b) Prepare an administrative plan for your company.
(c) Write a purchase order to be used when ordering material for your
business.
(d) Formulate policy guidelines for developing creative ability mong your
staff.
91. You own Twayne Popcorn business as a group. The project is facing
increasing market demand that you are almost failing to satisfy.
(a) Prepare a production plan for your project.
(b) Draft a weekly marketing distribution schedule for your products.
(c) Make a programme to be followed while insuring your business and
claiming compensation.
(d) Issue a cash sales slip to a customer who has bought 3 packs of popcorn
each at shs 2,500/=
92. You are operating a unisex and bridal saloon in your home town.
(a) Prepare a working budget for shs 900,000/=
(b) Write a certificate of appreciation to be issued to employees with
(c) Prepare a price list for your products.
(d) Write a letter to the Head teach of Midland High School requesting him to
permit you offer your services at the school.
93. You have obtained a bank loan of shs 80,000,000/= for expanding
bread bakery to meet the increasing market demand. The loan is
payable in eight equal monthly installments at an interest rate of 4%
per month on reducing balance method.
(b) Formulate guidelines for ensuring proper keeping and management of
cash in the business.
(c) Design a business van travel schedule to be followed when distributing
company products.
(d) Using a suitable medium of communication, inform all drivers about the
workshop on road accident due to take place.
94. You are operating as a Director of Studies in a High school near your
home town.
(a) Write a memo to the teaching staff informing them to submit the end of
term exams.
(b) Draft the time table for the end of terms examination.
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(c) Formulate guidelines to be followed during the course of exams.
(d) Design an A level terminal report for use in school.
95. You own an old motor garage that frequently has problems due to
poor management. You have decided to sell it off and use the money
to buy a new one.
(b) Draft the rules and regulations to be followed by the workers when
conducting themselves during business operations.
(d) Write a dismissal letter to one of your workers who has been
indisciplined.
96. You are involved in the process and sell of honey products in your
home town.
(a) Write a quotation to one of the customers who has written an inquiry
about your firm products.
(b) Draw a programme to promote your business products.
(c) Formulate guidelines to be followed by employees to ensure production of
quality products.
97. You own a whole shop dealing in cosmetics and you sell to retailers
in various towns.
(a) Design a business card to be given to potential customers.
(c) Prepare a delivery note to a company customer’s purchases.
(d) Draft guidelines to be followed when selling your goods on credit.
(e) Design a stock card to be used in your business operations.
98. You are the owner of Bikyagaanye grain milling operating in Masaka
town.
(a) Prepare a purchase order for additional necessary machines.
set standards.
(d) Prepare a company’s assets register.
(e) Prepare a memo to the production manager about the poor quality of
maize flour.
99. You are a dealer in second hand clothes being imported from Japan.
(a) Prepare a purchase order for merchandise.
(b) Prepare a goods returned note to one of the customers for the goods
rejected.
(c) Write a statement of account to one of the customers.
(d) Design a cash sale slip to be issued to your customers.
100. You have acquired a large piece of land on which there are large
buildings and you want to establish a supermarket.
(a) Draw a retail layout for your supermarket.
(b) Prepare guidelines to be followed by the security staff to ensure security
of the supermarket.
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(c) Prepare a vision statement for the business.
(d) Having decided to sell part of your land, write an agreement for the sale
of your land.
101. You are conducting a research on herbal tooth paste and you are
planning to start a commercial production unit for the very product.
(a) Prepare a production plan for your product.
(b) Draft a radio announcement to publicize your project.
(c) Design a label to be placed on the packaging material of your products.
(d) Write a letter of inquiry to the supplier of your packaging materials.
(e) Prepare a programme for obtaining loan funds to start commercial
production.
102. Your company DEBWAZ Enterprises Limited has received a loan of
shs 20,000,000/= at a fixed interest rate of 4% per month payable in
six equal installments within six years. It plans to deal in the supply of
food items to a secondary school on credit having won its contract.
(a) Prepare a loan repayment schedule for DEBWAZ Enterprises Ltd.
(b) Draft a contract to be signed between DEBWAZ Enterprises Ltd and the
secondary school.
(c) Prepare a dispatch note to be sent to the secondary school.
(d) Using a suitable medium, prepare an advert to promote the services
offered by your company.
(e) Write an inquiry letter to one of the suppliers of food items you use in the
business.
103. You are a Human Resource Manager in Batulumayo carpentry
workshop charged with the responsibility of filling up the posts in the
organization.
(a) Design a job application form to be used in the recruitment exercise.
(b) Draw a three weeks programme for the recruitment of the necessary
labour required.
(c) Design an appraisal form for usage while monitoring employees
performance.
(d) Prepare a weekly work schedule for your employees.
(e) Write down policy guidelines for handling machinery by your employees
in the project.
104. You own a Tours and Travel Business Company operating with 10
buses. Your vehicles move to different parts of the country.
(a) Prepare a capital expenditure budget for your company.
(b) Prepare a weekly travel schedule for your vehicles.
(c) Draft a vehicle maintenance and servicing programme for your vehicles.
(d) Write a recommendation letter to one of your drivers seeking to join the
ministry of works.
(e) Design a sample of a bus fare ticket to be issued to your clients.
105. You are in the process of expanding your bakery project to try and
meet the increasing demand for your business products.
(a) Formulate a mission, goals and objectives for your business.
(b) Prepare a financial plan for your business expansion given shs
10,000,000/=
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(c) Prepare an operational budget for your business.
(d) Write a cheque of shs 20,000,000/= (Two million shillings) to your
supplier of packaging materials.
(e) Prepare an action plan you are to follow during he expansion process.
(f) Write an invitation for bids to the willing supplier of materials for usage
in your bakery.
106. You own a small firm dealing in the processing and distribution of
fruit juice.
(a) Prepare an executive summary for the business.
(b) Design a flier to be given out to the potential customers.
(c) Draw a marketing flow chart for your business.
(d) Having decided to transform your business into a limited liability
company, prepare a notice to the public informing them about the
availability of shares for sale.
(e) Write a prospectus inviting members of the public to subscribe for
shares.
107. You are operating a transformed carpentry workshop after obtaining
a loan of shs 8,000,000/= from Equity Bank Ltd. The loan charges an
interest rate of 12% per month on a reducing balance method payable
within 4 equal installments for a period of four months.
(a) Prepare a loan repayment schedule for the business.
(b) Design an invoice for usage in the business operations.
(c) Prepare policy guidelines to be followed by the employees when handling
machinery.
108. You have mobilized capital with friends to start a limited liability
company dealing in the purchase and selling of fruits.
(a) Design a share certificate to be issued to the shareholders.
(b) Write an invitation letter to the shareholders for the annual general
meeting.
(c) Design an organogram for the company.
(d) Design a purchase order form for usage in the business.
109. You own a business dealing with the sale and distribution of
chemicals and laboratory equipment to secondary schools and due to
negligence and poor handling, one of your workers dies in the process
of packaging the chemicals.
(a) Write a condolence massage to the bereaved family.
(b) Prepare a programme to be followed during the burial.
(c) Draft policy guidelines to guard against accidents in the business.
(d) Prepare a requisition form t be used to obtain chemicals from the store.
110. You are the acting secretary of a fast growing company dealing with
the production of building materials.
(a) Prepare a notice inviting workers for a company’s performance review
meeting.
(b) Draft an agenda to be followed during the meeting.
(c) Prepare minutes for the previous meeting.
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(d) Write a performance policy review document to be followed by all
employees for improved efficiency and effectiveness.
111. You are operating a business dealing in clay products and your
business has been incorporated into a limited company.
(a) Present a share certificate to be issued to the shareholders.
(b) Prepare a news paper advert for the post of a Human Resource Manager.
(c) Propose guidelines to be followed to ensure safety at the workplace.
112. You are operating a bookshop in your nearest town but some book
copies have been returned to the bookshop as damaged copies.
(a) Prepare a goods returned note for the stock returned.
(b) Write an announcement to be placed in the newspaper informing the
public about the arrival of new books.
(c) Use a one week work schedule for your employees.
(d) Propose guidelines for ensuring proper code of conduct for your
employees.
113. You are a partner in a rapidly expanding business offering
counseling services. You have recruited more counselors to handle the
increasing number of clients.
(a) Present an organizational chart for the business.
(b) Initiate a one-week induction programme for the newly recruited
counselors.
(c) Write an appointment letter for one of the new counselors.
(d) Work-out a working capital budget of shs 5,000,000/= for promoting
your business.
114. You are operating a fruit processing business which is experiencing
a decline in sales. You would like to recruit an experienced sales
manager to carry out a market survey aimed at increasing sales.
(a) Formulate a market survey guide.
(b) Present a production plan for your business.
(c) Propose guidelines for ensuring production of high quality goods.
(d) Give a job description for the post of a marketing manager.
115. You are operating a supermarket where the number of customers
has greatly increased. To improve on customer care, you have set
aside shs 200 million to establish a new branch.
(a) Prepare a budget for the operating expenses.
(b) Prepare a job description for the new sales manager.
(c) Prepare a payroll for your employees.
(d) Prepare an action plan for your project.
116. You are operating a fast foods restaurant in busy area of your home
town.
(a) Prepare an operational budget for your restaurant.
(b) Develop a menu card for usage by the customers.
(c) Design a petty cash voucher that you will use to pay for small expenses.
(d) Design a sign post for your business.
117. You are operating a bookshop and your stock is fond of being
misallocated and disorganized from and within the business.
(a) Design a stock card for use in the business.
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(b) Prepare policy guidelines for ensuring proper inventory management.
(c) Design a credit note to be used in your bookshop.
(d) Design stock requisition form to be used when obtaining books from the
store.
(e) Prepare a statement of account for UBONGO High School.
118. You own a small scale soap factory which is facing increasing
market demand for its products. You are planning to expand a sum of
50,000,000/= shillings.
(a) Prepare a budget to fund the expansion of the project.
(c) Design a payroll for your employees for the month of December 2014.
(d) Formulate the measures to be followed to lower the costs of production.
119. You have received shs 80,000,000/= from BETTING. You are
planning to use that money to start a Nursery and Daycare centre.
(a) You have obtained a loan worth shs 120,000,000/= to improve your
metal fabrication project. The loan is payable in six equal monthly
principle installment a fixed interest rate of 2% per month.
(b) Design an advert for the post of a production manager.
(c) Prepare an administrative plan for your project.
(d) Draft an advertising massage for promoting your business products.
120. You are operating an agricultural produce trading sore and you have
been contracted to supply maize flour to the schools in your sub-
county. Due to inadequate funds you have been teamed up with
another trading store to form a temporary partnership.
(b) Prepare the terms and conditions of the contract you are to sign with one
of the schools.
(c) Design an invoice for usage in the business.
(d) Write to the school administration reminding him to clear the
outstanding balance which is overdue.
121. You are operating a progressive horticulture project and you are
planning to establish a new branch for your business to serve the
customers in distant areas.
(a) Prepare a budget for the new branch given shs 30,000,000/=
(b) Draft a payment voucher which you will use to pay your employees.
(c) Propose measures to be followed by the employees to reduce the costs of
production.
(d) Design a petty cash voucher which will be used to pay for small
expenses.
122. You received a grant from Enterprise Uganda to expand your bakery
project.
(a) Draw a programme for recruitment of more sales persons.
(b) Prepare a newspaper advert for the post of a marketing manager.
(c) Prepare a marketing plan for your business.
(d) Draw a purchase order form for the required raw materials.
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123. You have joined two other partners Muko and Mwanyinazze to form
a permanent partnership business dealing in the processing and sale of
fruits and juices.
(b) Draft a vision statement for the business.
(c) Design a weekly distribution schedule for the business products.
(d) Propose measures you are to take to ensure proper management of cash
in the business.
124. You are preparing materials for the contribution of a new branch of
your hotel.
(a) Prepare a purchase order form for construction materials to be used.
(b) Design a stock card for cement.
(c) Draft an appropriate document instructing the store keeper to release
cement to the foreman.
(d) Design a payment voucher which you will use to pay casual labourers on
your project.
125. You have been chosen as a Human Resource Manager in diary plant
which is declining due to the incompetence of most of the existing
human resource.
(a) Draw a progrmme for recruiting more new employees.
(b) Design a job application form for use in the recruitment process.
(c) Prepare a job description for the post of a marketing manager.
(d) Draft a performance appraisal form for usage when appraising your
employees.
(e) Prepare a work contract for the general manager.
126. You have started a fruit processing plant, manufacturing juice from
pineapples and oranges. You are competing with many similar firms in
the market and you are carrying out an exercise campaign to make
your products known to the public.
(a) Choose a suitable medium and design an advertising massage for your
products.
(b) Formulate a mission statement, goals and objectives for your business.
(c) Design a job specification for the post of a sales manager.
(d) Develop a sample of the quotation to be issued to potential customers.
(e) Prepare an organizational plan for your business.
(f) Develop policy guidelines to promote your business products by the
employees.
127. You intend to start up a sugar processing factory worth 200 million
shillings
(a) Identify the factors you will consider when choosing the location of your
business.
(b) Describe the components of a job analysis for your business.
(c) What tools will you use to monitor your business operations?
(d) Explain how the job analysis will help in the management of your
company.
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128. You are operating a lather tanning factory on a small scale. You
would like to expand your business using bank loan you intend to
acquire soon.
(a) Prepare a financial plan that you will present to acquire the loan.
(b) Prepare an inquiry for the business raw materials.
(c) Prepare a week’s distribution schedule for your business products.
(d) Design a newspaper advert for the post a a purchases manager.
129. You have started a mineral water processing factory. You are
competing with many other firms in the market. You are carrying out
an intensive campaign to make your product capture a wider market.
(a) Organize a budget for the marketing department given shs 2,000,000/=
(b) Formulate an executive summary for your business.
(c) Draw a programme for launching your business before the public.
(d) Develop a mission statement for the business.
(e) Design a business card to promote your business.
130. You intend to start a poultry project in your locality after securing a
loan of 10 million shillings from Buganda Twezimbe Development
Foundation.
(a) Write a loan request letter to the loans manager requesting for financial
assistance.
(b) Outline the procedure you will follow when accessing the loan.
(c) What aspects of the management plan will you follow when operating
your business?
(d) Mention the problems you are likely to face during the operation of your
business.
131. You are operating a current account through which you have
received a loan of shs 10,000,000/= to expand your furniture
workshop. You have been granted a credit period of 5 years and an
annual interest rate of 5%. You are required to pay back the principal
in 5 equal installments but the annual interest depends on the
outstanding balance.
(b) Estimate the total capital requirements for your business.
(c) Develop a sample of a cash deposit slip you will use while banking
business funds.
(d) Design a letter of inquiry you are to send to the supplier of machines.
(e) Design a cheque or usage in your business operations with the bank.
132. You have received a tender to supply beans to your village school.
The price of beans fluctuates depending on the supply conditions in
the market. The school requires that the beans be supplied at the
beginning of every term.
(a) Prepare the terms and conditions of the contract you are to sign with the
school.
(b) Draw an implementation plan which is to be used to fulfill your
contractual obligations.
(c) Design a receipt which will be issued to your customers.
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(d) Suppose hostile weather conditions make it difficult for you to produce
beans, draft the measures you are to take to avoid breaching the
contract.
133. You operate a transport company whose vehicles move to various
parts of Uganda.
(a) Prepare a weekly bus travel schedule for your vehicles.
(b) Design a bus fair ticket for our company use.
(c) Prepare an advert to promote the services offered by your company.
(d) Draft guidelines to be followed by the employees handling the company
vehicles.
134. You are operating a secondary school in your home town. The
school has a good stock control system with an experienced store
keeper and it has a big staff composed of the teaching and non-
teaching team.
(a) Design a store requisition form for business usage.
(b) Formulate a stock ledger card for the store keeper’s use.
(c) Design a requisition form for funds from the school bursar’s office.
(d) Prepare a goods returned note for damaged office supplies.
(e) Write a promissory note to the supplier of beans to your school for the
amount due.
(f) Draft a payment voucher for usage when paying your company workers.
135. You have obtained a loan of shs 100,000,000/= to improve and
reconstruct your metal fabrication workshop.
(a) Prepare an action plan to be followed during the reconstruction exercise
of the workshop.
(b) Design an advert for the post of a project manager.
(c) Prepare a purchase order form for materials to use during construction
exercise.
(d) Draw an organizational chart for your business.
136. You are operating a big stationery shop in your home town and your
customer wans to buy your products on credit basis.
(a) Prepare an invoice to be used in the business.
(b) Design a cash sales slip to be used in the business.
(c) Prepare a package sheet to be used during business transactions.
(d) Design a proforma invoice to be issued to the customers.
(e) Draft a statement of account to remind your customer to pay the amount
overdue.
137. You have started a milk processing and cooling business in a very
busy area. You are competing with many other rival firms in the
market. You are planning to sell some of the shares to the public as a
publicity strategy and to make your products known to the public.
(a) Design a questionnaire to be issued in the collection of market
information.
(b) Write a memo to the production manager about the poor quality of
products.
(c) Design a client information form to be used during the sale of shares.
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(d) Prepare a share certificate to one of the new share holders to the
business.
(e) Design a tax invoice to be issued to your customers.
138. You have received funds from ENTERPRISE UGANDA worth shs
50,000,000/= to modernize your cattle farm.
(a) Prepare a budget for funding the modernization programme.
(b) Prepare a production plan for the new project.
(c) Draw a weekly work schedule for your employees.
(d) Prepare a payroll for your employees for the month of November 2014.
139. You have just started a modern foods restaurant using the
doanation worth shs 15,000,000/= from OAK Foundation.
(a) Prepare an operational budget for your business.
(b) Draft a programme for recruitment of new professional workers in your
business.
(c) Prepare an advert for the post of a hotel administrator.
(d) Prepare an advertising massage for promoting your business products.
140. You are a member of Florida Club which operates a fruit juice selling
business and the club has been incorporated into a company.
(a) Design a company’s assets register.
(b) Design a share certificate to be issued to share holders in the company.
(c) Write a letter inviting shareholders to the Annual General Meeting.
(d) Prepare an organizational plan for the company.
141. You are operating a multi-million poultry project in your home area.
The business attracts many customers demanding for different poultry
products.
(a) Design a work order form in which you are to record customers orders.
(b) Design a sign post to show the location of your business.
(c) Formulate a delivery note to be used in the business.
(d) Prepare a payroll used to pay employees during the previous month just
ended.
142. You have obtained sufficient funds to start a savings and credit
organization.
(a) Prepare a mission statement for the organization.
(b) Formulate a credit policy to be followed during the loan processing and
acquisition.
(c) Prepare a job description for a loan officer.
(d) Develop a cash deposit slip for customer’s use.
(e) Design an account balance request form for customer’s use.
143. Your fresh vegetable project has persistently attracted more
customer and you have found it necessary to expand its operations.
(a) Write a circular to the heads for an agent meeting.
(b) Draft an inquiry to one of your suppliers about recent breed seedlings.
(c) Design a sign post to advertise your project.
144. You are operating a coffee processing factory. The contracts of the
general manager, transport officer and the receptionist have expired.
Through internal sourcing you have identified a suitable replacement
for the receptionist and the transport officer. You are making
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arrangements to communicate the changes to your employees and
recruit a new general manager.
(a) Write a circular inviting all the company administrative staff for an
urgent meeting to discus this matter.
(b) Place an advert in the news paper for the post of a general manager.
(c) Prepare an organizational chart to be used when inducting any new
recruits.
(d) Draw a programme for the induction of the new general manager.
(e) Prepare a work order form for handling customers’ product orders.
145. You have received a donation of shs 50,000,000/= from uganda
Youth Development Link to start a textile factory.
(a) Design a plant layout for your textile industry.
(b) Prepare a budget for the project.
(c) Design a requisition form to be used when acquiring funds from the cash
office.
(d) Design a personal business card to promote your workers.
(e) Design a payroll to be used when paying your workers.
(f) Formulate measures for ensuring reduction of production costs in the
business.
146. You have been appointed as a new Headmaster in a collapsing mixed
day and boarding secondary school. The board of directors have
entrusted you with the responsibility of uplifting the school to great
and desirable heights.
(a) Place a newspaper advert for the post of a school bursar.
(b) Design a programme for the restructuring and re-organization exercise of
the professional human resource in the school.
(c) Set new terms and conditions to be observed by the customers seeking
admissions in the school.
(d) Draft the rules and regulations to be followed by the students in the
school.
(e) Prepare a daily routine/programme for the school.
(f) Formulate an administrative plan for the school.
147. You own a small retail shop whose aim is to promote a high level of
customer care as a means to out-compete rivals and obtain a big
market share.
(a) Describe the terms of scale you are using in your business.
(b) Design a hire purchase agreement.
(c) Prepare a cash sale slip for a customer who has bought 3 packets of
Kibumba Rice each shs 15,000/=, 5 packets of Jesa milk each at shs
3,000/= and 10 kgs of powdered milk each at shs 20,000/= in the
business.
(d) Prepare a petty cash voucher you use to pay for small expenses of the
business.
(e) Place an order for supply of more merchandise to the retail shop.
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148. You are an entrepreneur operating a leather tanning factory in the
Wakiso town. You intend to modernize it by using borrowed funds.
(a) Design a financial plan you are to present when accessing a loan from
the bank.
(b) Design a newspaper advert for the post of a procurement manager.
(c) Draft terms and conditions under which your products will be sold.
(d) Prepare up a purchase order form for the required raw materials.
149. You are operating a plastic manufacturing business in your home
town. You are planning to relocate to a new site with great locating
benefits like accessibility.
(a) Design a plant layout for the business in the new site.
(b) Prepare an organizational plan for the business.
(c) Draft a newspaper advert for the post of a production manager.
(d) Prepare an induction programme for the newly recruited employee.
150. You are operating a small but growing fish processing and packaging
business in your home village.
(a) Draw an operational budget given 3,000,000/= shillings.
(b) Prepare an executive summary for your business.
(c) Write a request letter to the minister of fisheries and aquatic
management inviting him to officially pen your operations to the public.
(d) Using a suitable medium, guide the customers to the location of your
project.
151. Your bread bakery is currently facing increasing competition from
the rival firms. You are planning to improve on the marketing
techniques and be able to capture a wider market.
(a) Prepare a new marketing plan for your business.
(b) Prepare an effective advert to promote your business products.
(c) Design a weekly distribution schedule for your products.
(d) Design a quotation for usage in the business.
152. You are a modern restaurant serving both local and inter-
continental dishes. You are in the process of accessing a bank loan to
establish different branches at various boarders of Uganda in order to
serve the distant customers.
(a) Write a loan application letter to the bank manager of DFCU seeking for
financial assistance.
(b) Prepare a financial plan for the intended project.
(c) Choose an appropriate medium and draft an advertising massage to
promote the business among the general public.
(d) Draft measures to be followed to ensure proper handling of customers in
the business.
(e) Formulate guidelines to ensure proper handling and management of
business cash.
153. You have obtained a loan of shs 50,000,000/= from a micro finance
bank to establish a medical clinic.
(a) Design a medical form for use in the business.
(b) Prepare a financial plan for the project.
(c) Develop a job specification for the dental surgeon.
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(d) Draft guidelines for maintaining the welfare of employees in the
business.
(e) Prepare a payroll used to pay employees during the last month.
154. You have obtained a loan of shs 24,000,000/= from Buganda
development fund to expand your Biscuits factory. The loan charges a
fixed interest rate of 3% per month and is payable within 6 equal
installments.
(a) Prepare a loan repayment schedule for your business.
(b) Design a payment voucher for usage in the business.
(d) Design a sign post to show the location of your business.
155. You are a sales representative of Kyazanga dealing in fruit juice
processing company.
(a) Prepare a marketing plan for your business.
(b) Write a quotation to a customer who has expressed interest in your
products.
(c) Design a sample of a delivery note you are using in your business.
(d) Draft guidelines to be followed by the employees to ensure proper hyiene
and cleanliness of the workplace.
156. You have been appointed as a general manager of JESA Diary Farm.
The contracts of the secretary and the Human Resource Manager have
expired and you are planning to communicate new changes to
employees.
(a) Write a notice inviting all employees for an urgent meeting.
(b) Design a job description for the Human Resource Manager.
(c) Draw a work schedule to be followed by the employees.
(d) Prepare a new organizational plan for the business.
157. You have been appointed by Printer Limited to improve its dealing
performance as a consultant. In your first meeting with the Board of
Directors, it was resolved that you initiate changes that can revive the
company’s lost image.
(a) Draft a vision statement for the company.
(b) Develop guidelines that are to be used to govern the conduct of
employees.
(c) Prepare the employees’ payroll for the month of November.
(d) Write a letter to the gnarl manager of Sheraton Hotel seeking his consent
to host new employees’ training due next week.
158. Your generator has recently broken down due to mishandling. You
are planning to sell it off and acquire a new one.
(a) Prepare the items and conditions for the sale of the old generator.
(b) Prepare a purchase order for a new generator.
(c) Formulate the rules and regulations to be followed by your employees
when handling the new generator.
(d) Design a service and maintenance schedule for the new generator
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159. You are operating a metal fabricating project in your home town.
Due to increased market, you intend to recruit more workers and
purchase more machines.
(a) Develop a mission statement for your project.
(b) Design a job advert for the post of accountant.
(c) Prepare an action plan for your business.
(d) Formulate guidelines for selecting machines for use in your business.
160. You are he Human Resource Manager of Rafiki Bakery Limited. You
have identified the need to train the workers for increased output and
minimum costs.
(a) Write a notice inviting all workers to a two day training workshop.
(b) Develop guidelines to be followed to minimize costs of production.
(c) Design an appraisal form to be used in the business.
161. You have just established a mushroom growing business in your
home area. You intend to launch you business to create community
awareness.
(a) Write a letter to your local area chairperson seeking permission for the
launch.
(b) Design a flier to be issued out to potential customers.
(c) Prepare a one day launching programme for your business.
(d) Prepare a marketing plan for your business products.
162. You have established a company to deal in real estate business
about which your employees have little knowledge hence looking
forward for advice on every thing in the business.
(a) Present a general description of your business.
(b) Write a purchase order for materials on real estates management for
workers to read.
(c) Prepare guidelines for developing creative ability among your staff.
(d) Write a memo informing the human resource manager about employee
ditermma in the business.
163. Your company is involved in fruit juice processing.
(a) Prepare an invitation to bid for supply of fresh fruits to your company.
(b) Write a termination letter to the transport officer for neglect of duty.
(c) Make a label for one of your new juice brand packaging material.
(d) Design a job application form used in your company.
164. You are operating a bakery in a busy trading centre. You normally
make products basing on special orders.
(a) Write a memo to the production manager to inform him complaints of
clients.
(b) Prepare a recruitment proramme for new workers.
(c) Develop policy guidelines to be followed by the production manager when
designing a product.
(d) Prepare an organizational plan for the company.
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165. You own an orchard located in the outskirts of your home town.
(a) Issue a cash sale to a hotel that has paid for the following items.
Item Quantity Unit Price (Shs)
Mangoes 100kg 800
Oranges 150kg 650
(b) Write a letter to the district police commander requesting him to sign a
police patrol team in your area to help improve security in your area.
(c) Prepare a workers payroll for the month that has just ended.
(d) Develop policy guidelines for selling products on credit.
166. You have joined with two friends to establish a maize mill as
partnership.
(a) Draft a deed for the proposed business.
(b) Design an invoice for business use.
(c) Send an inquiry letter to a maize farm.
(d) Design an appraisal form for usage in the Human Resource Department.
167. You are operating a medical centre in a populated area.
(a) Design a medical form to be issued to outpatients.
centre.
(c) Draw a week’s programme followed to provide services to client.
(d) Design a certificate of appreciation the business shall issue to employees
with outstanding performance.
168. You own a restaurant in a busy trading centre and you have a
delivery van that provide outside catering services.
(a) Draw a day’s distribution schedule for the products.
(b) Design a menu card for the business.
(c) Develop guidelines to be followed by your employees to ensure good
hygiene in the work place.
(d) Draw a day’s master work schedule for your five employees.
You also distribute fuel to various fuel stations in other towns of
Uganda.
(a) Design a delivery note for your projects.
(b) Design a reception register that the business shall follow to minimize
risks that may occur in the business.
(c) Write a cheque of shs 15,000,000 (fifteen millions) in payment of fuel to
one of your credit suppliers.
170. You are a proprietor of honey making business.
(a) Draw a day’s programme to promote your products.
(b) Develop guidelines to be followed by your employees to ensure
production of quality products.
(c) Prepare a quotation for one of your clients who sent an inquiry letter.
(d) Write a warning letter to Mr. Wazimu Paul whose performance is below
the minimum acceptable standards.
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171. You are operating a small day works project and you have just
obtained a bank loan of shs 20 millions for expansion of the business.
(a) Draw a budget for expenditure of the loan.
(b) Draw a bin card for the business.
(c) Prepare a job induction plan for the Mechanical Engineer just recruited.
(d) Prepare a production plan for your business.
172. Your vegetable firm employs four workers. You sell both on cash
and credit basis. You have just bought a new tractor to help increase
output.
(a) Design a service schedule for the new tractor.
(c) Prepare a SWOT analysis guide for the market research conducted last
month.
(d) Draft a radio announcement to publicize you project.
173. You are engaged in the marketing of cosmetics as a marketing
officer. The company has experienced a tremendous decline in sales.
(a) Write a report on the market research you have just carried out.
(b) Write a credit status inquiring on a new client who wants to take goods
on credit worth 1,000,000 from your business.
(c) Draft guidelines to ensure proper inventory management.
174. Your construction firm has been incorporated into a company after
receiving a grant from World Bank worth 20,000,000.
(a) Prepare a company’s asset register.
(b) Design a share certificate to be issued to customers.
(c) Draw a financial plan for the business.
(d) Develop guidelines for maintaining workers welfare.
175. You have obtained a loan of shs 20 millions from Bank of Africa to
expand your beverage processing plant. The loan is payable in five
equal monthly installments at an interest rate of 10% on outstanding
balance.
(b) Prepare a marketing flow chart for the products.
(c) Write a debit note to a customer whose invoice has been undercharged.
(d) Design a questionnaire to be used to collect information from customers.
176. You are the Human Resource Manager of Kapere Metal Works. The
firm is in the process of improving production buying more machines
and maintaining old machinery.
(a) Formulate policy guidelines for handling machinery in your business.
(b) Write a recommendation letter to Mr. Kudde Desire an engineer seeking
to join Galabuzi metal works limited.
(c) Develop
(i) A job description for an engineer
(ii) A job specification for an engineer.
(d) Prepare an employment contract for the engineer.
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planning to start commercial production.
(a) Prepare a programme for obtaining funds to start commercial
production.
(b) Prepare safety guidelines for workers.
178. You are the Human Resource Manager of a secretarial business that
receives many customers and has to recruit more salespersons due to
the increased market for stationery.
(a) Prepare a programme for recruitment of more workers.
(b) Design a job application form to use in the recruitment exercise.
(c) Prepare a newspaper job advert for the post of a sales manager.
(d) Prepare an organizational plan for your business.
179. You are the newly appointed Managing Director of KULIKA & SONS
LIMITED dealing in manufacture of soap. The business has many
creditors and workers who are about to strike due to lack of proper
communication channels, delayed payments and neglect by the
administration.
(a) Design a reception register that shall be used in the business.
(b) Write a memo to your Human Resource Manager inviting him to an
urgent meeting to discuss the current situation.
(c) Draft a code of conduct for the staff members aimed at promoting
discipline.
(d) Prepare a payroll for your employees for the month that has just ended.
(e) Write a cheque of shs. 1,000,000 in payment to one of the credit
suppliers of packaging materials.
180. You are the Production Manager of BUYINZA BAKERY LIMITED that
produces bakery products. The sales have gone down and you charged
with the responsibility of making it regain its glory.
(a) Present a quality policy for your department.
(b) Prepare a production plan for the business.
(c) Draft guidelines to ensure proper inventory management.
(d) Write a certificate of appreciation to one of the committed and
hardworking employee in your company.
(e) Present the site plan for your enterprise.
181. You are engaged in the marketing of cosmetics as a sales manager.
The company has experienced declining sales.
(a) Write a report on the market research you have just carried out.
(b) Prepare a package sheet for the goods you are about t send to a
customer.
(c) Draw a day’s supply schedule for your products.
(d) Write a quotation to one of your customers who has expressed interest in
your products.
(e) Write a credit status inquiry on a new client who wants to take goods
worth shs. 1,000,000 on credit from your business.
182. Your construction firm has been incorporated into a company after
receiving a grant from Enterprise Uganda Limited.
(a) Write a share certificate to be issued to shareholders.
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(b) Prepare your company’s asset register.
(c) Write a termination letter to Mr. Kaduyu Isaac who is fraudulent.
(d) Design an appraisal form for usage in the Human Resource Department.
183. You have obtained a loan of Uganda shillings 20,000,000 from
Equity Bank to expand your fruit processing project. The loan is
payable in five (5) monthly equal installments starting with June at an
interest of 10% on outstanding balance.
(a) Prepare the loan repayment schedule.
(b) Draw a financial plan for the expansion of your business.
(c) Present an action plan for your business expansion.
(d) Prepare a purchase order for packaging materials.
184. You are employed as a Marketing Manager in a Tea processing
factory.
(a) Design a questionnaire to be used to collect information from customers.
(b) Prepare a debit note for a customer whose invoice has been
undercharged.
(c) Prepare a marketing flow chart for the products.
(d) Develop guidelines for maintaining workers’ welfare.
185. You are the Personnel Manager of SURE & SONS LIMITED an
enterprise dealing in metal fabrication. The firm is undergoing
expansion and thus recruiting more manpower to improve efficiency.
(a) Develop a programme for orientation of new workers.
(b) Prepare a master daily work schedule for the workers.
(c) Formulate policy guidelines for handling machinery in your business.
(d) Write a letter or recommendation to Mr. Kafeero Peter an engineer
seeking to join HWAN SUNG LIMITED.
186. You are operating a tour and travel company with fur buses with
carrying capacity of 60 passengers.
(a) Prepare a weekly travel schedule for the four.
(b) Design a bus fare ticket to be used in your company.
(c) Design a vehicle service schedule for your company buses.
(d) Develop policy guidelines to govern your company buses so as to
minimize accidents.
187. You are operating a maize milling plant in your home area and you
are in the process of signing a contract to supply maize flour to
IGANGA SECONDARY SCHOOL.
(a) Prepare terms and conditions to be included in the contract.
(b) Prepare a delivery note for the initial supply of maize flour.
(c) Design a cash sale slip for use in the business.
(d) Prepare an invoice to a customer who has made a credit purchase.
(e) Formulate guidelines for selling goods on credit in your business.
188. You are operating a Hotel in a busy trading centre and you are in
the process of transforming the Human Resource Department.
(a) Develop
(i) A job description and
(ii) A job specification for a cashier
(b) Draft a programme for conducting interviews for the job applications.
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(c) Prepare an arrival and departure to be used in monitoring employees.
(d) Prepare the employment contract for a waiter.
189. You have been appointed the new Manager BULAMU HEALTH
CENTRE operating in your home town.
(a) Make a design of a new medical treatment form to be used.
(b) Formulate hygienic conditions to be given to employees to observe
cleanliness.
(c) Prepare a radio advert to promote the services of your business.
(d) Design an employee record cared for your workers.
190. You are conducting research on herbal toothpaste and you are
(a) Design a newspaper advert to publicize your project.
(b) Design a label to be placed on the packaging material materials.
(c) Prepare a prrogramme for obtaining loan funds to start commercial
production.
191. You are the Managing Director of a biscuits manufacturing factory
operating in Kampala City.
(a) Write a prospectus inviting members of the public to subscribe for
shares.
(b) Write a day’s petty cash voucher for making officers transport
allowances.
(c) Prepare a dispatch note for the goods you are about to send to a
customer.
(d) Prepare a one day promotional programme for your biscuits in Mukono.
192. You are a new Head Teacher of SUUBI HIGH SCHOOL, mixed day and
boarding secondary school in Kayunga.
(a) Design a stock issue and requisition form to be used by stores
department.
(b) Some of the delivered scholastic materials have been returned. Prepare a
goods returned note to accompany them.
(c) Draft guidelines to be followed by the store manager on receipt of items
from suppliers.
(d) Formulate rules and regulations to be followed by the students.
(e) Design a pass out chit for usage while regulating students’ movement in
and out of school.
193. You have started a mineral water processing factory and you are
competing with many other firms in the market. You are carrying out
intensive campaigns to make you product known.
(a) Formulate mission statement for your enterprise.
(c) Draw a programme for launching your enterprise.
(d) Write a credit note to your customer who is complaining of being over
invoiced.
194. You are operating a large coffee processing factory and you have
decided to expand your operations by recruiting more employees.
(a) Write a circular inviting all your employees to an urgent meeting.
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(b) Prepare advert for the post of a marketing manager.
(c) Draw a programme for the induction of new employees in your
enterprise.
(d) Prepare a week’s distribution schedule for your products.
195. You have received a tender to supply beans to your school. The
price for beans fluctuates depending on the supply conditions in the
market. The school requires the beans at the beginning of every term.
(a) Draw an action plan you will use to fulfill your contractual obligations.
(b) Design a receipt you will issue to your customers.
(c) Suppose hostile weather conditions make it difficult for you to produce
beans. What measures would you take to avoid breaching the contract?
(d) Draft a statement of Account for March 2014 for one of regular
customers.
196. You have acquired a large building and you intend to start a
supermarket.
(a) Design a retail layout for the business.
(b) Prepare a budget for starting the business.
(c) Design a goods received note for the business.
(d) Write a standing order instructing your bank to make monthly
deductions of shs 150,000 and transfer it to UMEME’s account.
197. You have obtained a loan of shs 9,000,000 to improve your juice-
processing project. The loan is charged a fixed interest of rate of 2%
and is payable within six monthly equal installments.
(c) Design a payment voucher for the project.
(d) Design a signpost to show the location of your business.
198. Yu have obtained sufficient funds to start a SAVINGS & CREDIT
SOCIETY
(a) Write up your statement of;
(i) Vision
(ii) Mission
(iii) Goals and
(iv) Objectives
(b) Design a;
(i) Deposit slip
(ii) Withdraw slip
(iii) Cheque leaf
(iv) Cheque deposit slip for customers’ use
(c) Develop a credit policy for the project.
(d) Formulate a loan recovery programme for your project.
(e) Develop a constitution governing the operations of your project.
199. You intend to start a brick making project in your home area.
(a) Prepare a process layout for the project.
(b) Write up a programme for reducing the negative effects of your project on
the natural environment.
(c) Design a banner for promoting your products.
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(d) Prepare a warning to the public to be placed at the site-informed them
that the land belongs to you.
200. You have bought a large scale poultry farm and you want to acquire
a bank loan to help you improve the farm.
(a) Write an application letter for a bank loan to be included in the business
plan.
(b) Prepare a memorandum inviting all the existing staff to attend an urgent
meeing to discuss hoe to revive the farm.
(c) Write a tender notice for the supply of poultry feeds to the farm.
(d) Drat a programme for training workers about poultry keeping.
201. You are operating a clay works project. You have received an
inquiry about the goods available for sale.
(a) Prepare a quotation to reply the above inquiry.
(b) Write a warning letter to Ms Nasanga Juliet, a secretary whose
performance is below the minimum acceptable standards.
(c) Formulate safety guidelines to be followed by your workers during the
production process.
(d) Advertise the sale of your old truck at its disposal value.
202. You own an old farm tractor that frequently has mechanical
problems due to poor handling. You have decided to sell it off and use
the money to buy a new one.
(a) Formulate terms and conditions for the sale of the old tractor.
(b) Draft the rules and regulations to be followed by the farm workers when
using the tractor.
(c) Design a certificate of appreciation to be issued to an employee whose
performance is outstanding.
203. You have secured a loan of shs 100,000,000 to establish a
partnership business dealing in rice processing.
(b) Draft a capital expenditure budget for your business.
(c) Write a notice inviting prospective partners for a meeting.
(d) Prepare an operational budget for your business.
204. Your motor vehicle washing bay has registered customers’
complaints about delayed services and theft of the properties and
motor vehicle parts.
(a) Prepare a programme for one- day training and sensitization workshop
intended to improve service delivery in your business.
(b) Present a plant layout for your project.
(c) Design a work order form be used by your business.
(d) Develop new security guidelines to be observed at the workplace.
205. You own a factory producing plastic products and customers are
complaining about the quality of your products.
(a) Write a memo to the production manager about the complaints raised by
customers.
(b) Prepare guidelines to be followed by the Production Manager for
improving the quality of the products.
(c) Design a market survey guide for your new products.
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(d) Design a schedule for the routine maintenance of machines.
206. You are a General Manager of a motor garage that offers credit
facilities to customers as a sales promotion strategy.
(a) Prepare a credit recovery programme for the business.
(b) Develop credit terms and conditions for your business.
(c) Prepare a brochure to be issued to potential customers.
(d) Due to increased number of clients, you have decided to recruit an
Accounts Assistant. Write an appointment letter to the newly recruited
Accounts Assistant.
207. You are operating a restaurant specializing in local dishes. You are
carrying out extensive campaign to attract customers.
(a) Present a general description of your business.
(b) Prepare guidelines for your employees to observe and promote good
customer care.
(c) Design a reception register that shall be used in the business.
(d) Present a plant layout for your project.
208. You are operating a partnership printing business and you agreed to
change it into a public limited company.
(a) Develop;
(i) Memorandum of association and
(ii) Articles of association of your company.
(b) Develop a company profile for your project.
(c) Prepare a prospectus you are to use when selling shares to the public.
209. You have completed your Advanced Level Certificate of Education

and seeking employment as a salesperson in Lint Textile Distribution
Company.
(a) Write an application for the post of a salesperson.
(b) Write your curriculum vitae (CV) to be attached to your application.
(c) As a new salesperson design a new identity card for use in business.
(d) Develop a questionnaire to be used in conducting a market survey.
210. You are operating a Restaurant and Takeaway business in your
home area.
(a) Design a menu for your products.
(b) Prepare duties and responsibilities of a waiter/waitress.
(c) Prepare an agenda for the next meeting with your employees.
(d) Develop a job analysis for a chief.
(e) Design a cash receipt for your business use.
buildings and you want to establish a supermarket.
(a) Draw retail layout of your super market.
(b) Prepare guidelines to be used by the security staff to ensure security of
the retail project.
(c) Prepare a vision statement for the company.
of your land.
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(c) Design a label to be placed on the packaging material of herbal tooth
paste.
(d) Write a letter of inquiry o the supplier of packaging materials.
(e) Write a programme for obtaining loan funds to start of commercial
production.
213. Your company Tulo enterprises Ltd has received a loan of shs
20,000,000 at interest rate of 4% per month of reducing balance
method payable in six equal school on credit having won its contract.
(a) Prepare a loan repayment schedule for Tulo enterprise Ltd.
(b) Draft a contract to be used by Tulo enterprises Ltd and the school.
(d) Prepare an advert to promote the services offered by your company.
214. You are Human Resource Manager of Muwanguzi carpentry
workshop charged with the responsibility of filling up vacant posts in
the organization.
(b) Draw a three weeks programme for recruitment of the necessary labour
required.
(c) Design an appraisal form for usage while monitoring employees’
performance.
(e) Write policy guidelines for handling machinery by your employees in the
project.
215. You own a tour and travel business operating with 10 buses. Your
vehicles move to different parts of the country.
(b) Prepare a weekly travel schedule for your business.
(c) Draft a vehicle maintenance programme for your buses.
(d) Write a letter of recommendation to one of your drivers seeking to join
the ministry of works.
(e) Design a sample of a bus ticket you issue to your clients.
216. You are in the process of expanding your bakery project.
(a) Formulate a statement of mission, goals and objectives.
(b) Prepare a financial plan for your business expansion given UGX
10,000,000
(d) Write a cheque of shs 20,000,000/= (Two millions) to your supplier of
(e) Write an invitation for bids to the willing supplier of materials for usage
in your bakery.
(f) Prepare an action plan you are to follow during expansion.
217. You are a general manager of a business dealing in manufacture of
liquid soap.
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employees.
(b) Write a debit note to be used when correcting an undercharge on
customers invoice.
(c) Prepare guidelines to ensure proper inventory management.
(d) Write termination letter to an incompetent employee.
(e) Design an appraisal form for usage in the human resource department.
218. You are Human Resource Manager of Quality Bakery Limited. You
have identified a need to sensitize workers to increase output.
(a) Prepare a four day’s training programme for the workers.
(c) Draft a one week promotional form for usage in the Human Resource
Department.
(d) Develop policy guidelines for controlling production costs in your
business.
219. You own a grain milling plant. You have won a contract to supply
maize flour to Magezi Secondary School.
(a) Develop terms and conditions to be included in the contract.
(b) Prepare a credit note for a customer who was over invoiced.
(c) Write a standing order to Centenary Bank to effect electricity payment to
UMEME.
(d) Develop guidelines for handling machines in the business.
(e) Write a warning latter to your driver for bad driving.
220. You are operating a business dealing in sale of electric appliances.

The business sells expensive items on a hire purchase basis.
(a) Prepare terms and conditions for the hire purchase agreement.
(b) Write a purchase order for the stock to your business.
(c) Design a time sheet used in your business.
(d) Prepare a credit status inquiry about Mr. Kasolo who wants goods on
credit worth shs 1,000,000.
221. You have acquired a loan worth shs 60,000,000 for establishing a
new branch of your metal works project. The loan is payable in six
equal monthly installments at a monthly interests of 2% on reducing
balance methods.
(b) Prepare an action plan for the business expansion.
(c) Develop a week’s work schedule for your employees.
(d) Formulate guidelines for proper loan management.
222. You are engaged in manufacture of Human drugs including tablets
and syrups as well as offering treatment to out patients.
(a) Design a label to be placed on the cough syrup.
(b) Design a reception register for your business.
(c) Prepare a payroll for your workers for the month just ended.
(d) Design a stock requisition form to be used by your company employees
to access stored materials.
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(e) Prepare a quotation to one of the customers who has picked interest in
your products.
223. You are an Entrepreneurship district advisor in your home district.
(a) Write a source of recruitment programs for labour use.
(b) Write investment source of funds programme for the business.
(c) Prepare a business integration chart for the business.
(d) Write a personnel management process for business.
224. You are an officer in charge of accountancy in Entrepreneurship
department of your district.
(a) Prepare a presentation for the need of application form for jobs.
(b) Write a notice for continuous professional development seminar.
(c) Write a national aptitude tests for admission of new/ young entrepreneur
achievers
(d) Write audit practitioners seminars
(e) Write an invitation for Bids and Consultancy.
225. You have received a grant of 10,000,000 from UNIDO to expand your
milk cooling plant project.
(a) Draw a marketing flow chart for your business.
(b) Develop;
(i) A job specification for a financial controller.
(ii) A job description for annual controller.
(c) Prepare a quotation to be issued to your customer wishing to buy your
products.
(d) Formulate hygienic condition to be followed by your employees to ensure
cleanliness.
(e) Prepare a guiding tool for the implementation of ideas of the business
plan.
226. You are operating a large a large scale construction firm. You have
been constructed by a grain milling company to construct premises.
You are employing for skilled employees and 3 casual workers.
(a) Prepare an organization plan for your company.
(b) Draft a radio announcement to public your project.
(c) Write a letter of inquiry to the suppliers of building materials.
(d) Prepare a month’s payroll for your employees.
227. You have received a loan of shs 8,000,000 carpentry workshops.
You have granted a credit period of 4 years at an annual interest of
12% per annum you are requested to pay the principle in 4 equal
installments.
(b) Prepare a purchase order to a supplier for the items to be used in your
project.
(c) Write a notice informing your customer about the temporary closure of
the business premises due to the ongoing expansion work.
(d) Write a letter to the “loan office” requesting him for a grace period of a
year to clear up your loan.
(e) If you intend to sell your products on credit basis, design
(i) A receipt for business use.
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(ii) An invoice for business use.
228. You have been with recruited as the Human Resource Manager
(H.R.M) of BIDCO Uganda limited charge with responsibility of filling up
all the vacant position by the appointing authority in the enterprise.
(a) Draw a one month’s programme for the recruitment of the necessary
labour required.
(b) Write a memo to the programme requesting him to attend the
interviewing exercise of the job applicant.
(c) Design a job application form to be used in the recruitment exercise.
(d) Write a termination letter to the chief accountant for neglect of duty.
(e) Formulate an organization chart for the organization.
229. You are operating an orchard in your village. Due to the increased
demand for the juice and expansion of the scale of operation you
intend to install a beverage processing plant.
(a) Formulate axision for your project.
(b) Prepare a production plan for the project.
(c) Draw a financial plan for your business give shs 20,000,000
(d) Develop a weekly worker schedule for you employees.
230. Having graduated as a medical Doctor, you have decided to start a
chemical processing industry dealing n the manufacturing of human
drugs including tablets and syrups. You have also decided to open up a
clinic.
(a) Formulate a statement of mission, goals and objectives for your project.
(b) Prepare a marketing plan for your project.
(c) Design a medical form to be used in your clinic.
(d) Design a label to be placed on the mixture syrup.
(e) Prepare an operation budget for your clinic.
(f) Design a stock caw will help store keeper to ensure proper store
management.
231. You have acquired a large piece of land of Lana on which there are
large buildings and you want to establish a super market.
(a) Draw a retail layout of your supermarket.
(b) Prepare guidance to be used by the security staff to ensure security of
the retail project.
(c) Prepare a business card to be used to promote project.
(d) Formulate a programme you will use o recruit a supermarket attendant.
232. You have decided to join with three other partners to form a
partnership deaum in metal fabrication.
(a) Formulate a policy for maintenance of welfare of your workers.
(b) Draft a partnership deed for the business.
(c) Formulate a policy to be used by your workers handling machinery in
your business.
(d) Prepare a guiding tool you are to use while implementing the ideas of
your business plan.
233. You are a share holder in a company selling fruits.
(a) Design a certificate to be issued to share holders.
(b) Design a delivery note for business use.
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(c) Make a guideline to be followed when selling products on credit.
234. You are involved in the production of honey in your town.
(a) Draw a programme to promote your products.
(b) Formulate guideline to be followed by your workers to ensure production
(c) Prepare a weekly distribution on schedule for your products.
(d) Write a tender inheriting a potential supplier of packaging materials.
235. You own an old secondary school that has frequently had problem
due to poor management you have decided to sell it off and use money
to establish a new one.
(a) Formulate the terms and conditions for the sell of the old secondary
school.
(b) Draft rules and regulations to be followed by the students in the new
school.
(c) Design a certificate of appreciation to be issued to an employee whose
performance is outstanding.
(d) Write a warning letter to an employee whose performance is not to the
set standard.
(e) Write an appointment letter to newly recruited school deputy Head
teacher.
236. You are operating a carpentry workshop in your home town.
(a) Prepare a sign post for your business.
(b) Design an invoice that you intend to use in your business.
(c) Prepare a business card for your sales manager.
(d) Write a letter to the town clerk requesting for renewal of your operating
license.
237. You are the owner of a fast growing business dealing with the sale of
stationery and you are planning to shift to a spacious place for
effective business operation.
(a) Formulate goals and objectives for your business.
(b) Write a notice informing your clients of the temporary closure of the
premises.
(c) Design a site plan for the new premises.
(d) Prepare a purchases order to be issued to your suppliers when ordering
for.
238. You have secured a loan of shillings 20,000,000 from DFCU bank to
start a furniture workshop.
(a) Prepare a financial plan for your workshop.
(b) Design a receipt to be used in your workshop.
(c) Write an advert for the post of marketing manager to e put in a national
newspaper.
(d) Prepare an organizational chart for your workshop.
239. You are a promoter of a newly incorporated limited liability
company.
(a) Design a share certificate to be issued to the shareholder.
(b) Prepare an action plan for the business.
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(c) Present a promotional program for the company.
(d) Write a prospectus inviting members of the public to subscribe for the
shares.
240. You own a farm of cattle in your village
You are considering to sell cattle to a butchery in your neighbouring
town on contract.
(a) Prepare the terms and conditions that should be included in the
contract.
(b) Draw a weekly work schedule for your employees.
(c) Choose a suitable medium and design an advert for your products.
(d) An abrupt cattle disease has affected your farm and has killed most of
your cattle. You can no longer meet the contractual obligation. Write a
letter requesting for your client to terminate your contract.
241. You are operating a transporters company and you have been
contracted by Edward and Vincent to transport their merchandise to
Mombasa and Nairobi respectively.
(a) Prepare an organizational plan for your company.
(b) Draw one days work order form to be used by employees.
(c) Design a business card you would wish to offer to your customers.
(d) Prepare a one month’s payroll for your employees.
(e) Design a Bus ticket to be issued to your clients after payment of the Bus
fare.
242. You are operating a plastic company as a general manager in Uganda
operating on a large scale.
(a) Write a letter of sales promotion for the business.
(b) Write a letter of termination of service of one of your worker.
(c) Write a letter of credit status inquiry to the company customers.
(d) Write a letter to African Aluminium Co. Ltd for a catalogue and price list.
243. You a Secretary of Walid telecom Uganda.
(a) Write an agenda for meeting to take place.
(b) Write a Notice to inform workers of current changes.
(c) Write a letter to the town clerk for analysis visit of your business.
(d) Write a circulation showing the flow of products.
244. You have started a project investment club of 10 members in your
community.
(a) Write an article of association for your club.
(b) Organize the market research table basing on types of market research.
(c) Draw a table for club typical market activities involving product pricing,
promotion and distribution.
(d) Organize the improvement process of the products you offer or produce.
(e) Prepare input process, output model with aspects of production by
operations management.
(f) Prepare an organizational chart basing on the traditional hierarchy.
245. You are a secretary of together we unite investment club in your
society.
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(a) Draw up the club investment budgets draw up depending on analysis
markets, sales budget, production budgets & sales targets and business
comparison in production budgets.
(b) Prepare a cash flow forecast for your club.
(c) Prepare a source for finance table including the long term and medium
term finance and short term finance.
(d) Prepare a typical matrix structure for your club.
(e) Write a memorandum of association for your products.
(f) Prepare a certificate of incorporation for your business.
246. You are operating a nursery school in your home area.
(a) Prepare a duty roster for teachers.
(b) Write a chart for effective communication in the enterprise.
(c) Draw an organizational chart to show the following of authority.
(d) Prepare a staff specialized chart for heads of the school.
247. You own a secondary school in your town.
(a) Prepare a cash flow fore cast for your school.
(b) Draw purpose a budget table for your school
(c) Prepare a service improvement product chart for your school.
(d) Prepare a special marketing activities schedule for your school.
(e) Write a favourable aid adverse var***** chart for your business.
248. You are a director of studies in a nearby school.
(a) Write a memo to head department for renew of interview exercise for job
improvement in job performance.
(b) Write an agenda for an agent meeting to the workers of staff.
(c) Write a letter to the District Education Officer for the Extension of senate
training of teachers in your school.
(d) Write a job application form for use in recruitment exercise.
(e) Write a study approach launch for your school.
249. You are a member in an investment scheme in your home town
(a) Prepare a sample of share certificate you are to use.
(b) Write a marketing sales budget you are to use.
(c) Prepare a social responsibilities chart for your business.
(d) Prepare a chart for effective communication in enterprise.
(e) Write a marketing mix chart for your investment scheme.
250. You are a General Manager of a spare parts shop in Kiseka market
that offers credit facilities to credit worth customers as sellers
promotion strategy.
(a) Prepare a credit recovery programme for the business.
(b) Draft the conditions necessary for selling goods on credit.
(c) Design a business credit card for business use.
(d) Imagine the pro’s and con’s of selling goods on credit towards your
business loyalty public image.
251. You are a marketer of Airtel Telecommunication Company but you
are working upon ideas of credit selling.
(a) Draft Goals and objectives of selling goods on credit.
(b) Prepare credit terms procedures your company is to follow.
(c) Develop an item sheet of goods to be sold on credit.
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(d) Organize credit programme schedule to be followed.
252. You are operating a furniture workshop producing various products
and you are competing in the market.
(a) State the vision statement, goals and objectives of your business.
(b) Design and prepare a business general description.
(c) Prepare a marketing plan for your products.
(d) Prepare a production plan for your business.
253. You have set up a large scale millet milling plant.
(a) Prepare a design a market flow chart for your business.
(b) Prepare a financial plan for your business.
(c) Prepare an action plan for your business.
(d) Draw an organizational plan for your business.
254. You are selling cattle in a butcher in a nearby town.
(a) Prepare an action plan you are to follow.
(b) Prepare an organizational plan for your business.
(c) Prepare a marketing plan for your business.
(d) Develop a SWOT analysis chart for your business.
255. You are a shareholder in a company selling fruits.
(a) Design a certificate to be issued to the shareholders.
(b) Write a letter inviting the shareholders to an annual general meeting.
(c) Draw an organizational chart for the company.
(d) (i) Design a receipt for business use.
(ii) Prepare an invoice to be issued to your customer who has made a
credit purchase.
256. You own an old motor garage that frequently has problems due to
to buy a new one.
(b) Draft the rules and regulations to be followed by the firm workers while
conducting themselves and business operations.
(d) Write a dismissal letter to one of your workers who has been indiscipline.
(a) Write a quotation to one of your customers who has written an inquiry to
know about your products.
(b) Draw a programme to promote your products.
(c) Formulate guideline to be followed by your workers to ensure production
258. You own a wholesale shop dealing in cosmetics and you sell to
retailers in various towns.
(a) Design business card to be given to potential customers.
(c) Prepare a delivery note to accompany customer’s purchases.
(d) Make guidelines to be followed when selling your products on credit.
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259. You are the owner of a grain mill operating in your town.
(a) Prepare a local purchase order for necessary machines.
set standards.
(d) Prepare a company’s asset register.
260. You have decided to join two other entrepreneurs to form a
partnership dealing in metal fabrication.
(a) Prepare a policy for maintenance of worker welfare.
(b) Write;
(i) A job description
(ii) A job specification for the post of the production engineer.
(c) Draft a partnership deed for the business.
(d) Prepare a memo for the staff to attend an urgent meeting on quality
improvement.
buildings and you want to establish a super market.
(a) Draw retail layout of your super market.
(b) Prepare guidelines to be used by the security staff to ensure security of
the retail project.
(c) Prepare a vision statement for the company.
of your land.
262. You are conducting a research on herbal toothpaste and you are
(c) Design a label to be placed on the packaging material of herbal
toothpaste.
(d) Write a letter of inquiry to the supplier of packaging materials.
(e) Prepare a programme for obtaining loan funds to start of commercial
production.
263. Your company Malibu enterprises Ltd has received a loan of shs
20,000,000 at interest rate of 4% per month or reducing balance
method payable in six equal installments with in six years. It plans to
deal in supply of food items to a secondary school on credit having won
its contract.
(a) Prepare a loan repayment schedule for Malibu enterprise Ltd.
(b) Draft a contact to be used by Malibu Enterprises Ltd and the school.
(d) Prepare an advert to promote the services offered y your company.
264. You are Human Resource Manager of Muwanguzi carpentry
workshop charged with the responsibility of filling up vacant posts in
the organization.
(b) Draw a three weeks programme for recruitment of the necessary labour
required.
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(c) Design an appraisal form for usage while monitoring employees
performance.
(e) Write policy guidelines for handling machinery by your employees in the
project.
265. You own a tour and travel business operating with 10 buses. Your
vehicles to different parts of the country.
(b) Prepare a weekly travel schedule for your buses.
(c) Draft a vehicle maintenance progamme for your buses.
(d) Write a letter of recommendation to one of your drivers seeking to join
the ministry of works.
(e) Design a sample of a bus ticket you issue to your clients.
266. You are in the process of expanding your bakery project.
(a) Formulate a statement of mission, goals and objectives.
(b) Prepare a financial plan for your business expansion given UGX
10,000,000
(d) Write a cheque of shs 20,000,000/= (Two millions) to your supplier of
(e) Write an invitation for bids to the willing supplier of materials for usage
in your bakery.
(f) Prepare an action plan you are to follow during expansion.
267. You are dealing in the processing and distributing of fruit juice.
(a) Design a flier to be given out to potential customers.
(b) Draw a marketing flow chart for your business.
(c) Having decided to transform your business into a limited liability
company, prepare a notice to the members of the public informing them
about the availability of shares.
(d) Write a prospectus inviting members of the public to subscribe shares.
268. You are operating a large scale construction firm, you have been
contracted by a Cool “P” Company to construct factory premises.
(a) Prepare an organizational plan for your company.
(b) Develop a weekly work schedule for your employees.
(c) Write a letter of inquiry to the supplier of building materials.
(d) Prepare a month’s payroll for your employees.
269. You have received a grant of shs 20,000,000 from Bank of Africa to
expand your milk cooling plant project.
(a) Draw a marketing flow chart for your business.
(b) Develop;
(i) A job description for financial controller.
(ii) A job specification for financial controller.
(c) Prepare a quotation to be issued to your customer wishing to buy your
products.
(d) Formulate hygienic conditions to be followed by your employees to
ensure cleanliness.
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(e) Prepare a guiding tool for the implementation of ideas of the business
plan.
270. You have been recruited as the Human Resource Manager (HRM) of
TAPECO – Uganda Limited and charged with the responsibility of filling
up all the vacant positions by the appointing authority in the
enterprise.
(a) Draw a one month’s programme for the recruitment of the necessary
labour required.
(b) Write a MEMO to the production manager requesting him to attend the
interviewing exercise of the job applicants.
(c) Design a job application form to be used in the recruitment exercise.
(d) Write a termination letter to the Chief Accountant for neglect of duty.
(e) Formulate an organizational chart for the organization.
271. You have received a loan of shs 8,000,000 from Pride Micro finance
to expand your Quality Carpentry workshop. You have been granted a
credit a period of 4 years at an annual interest of 12% per annum. You
are requested to pay the principle in 8 installments.
(b) Prepare a purchase order to a supplier for the items to be used in your
project.
(c) Write a notice informing your customers about the temporary closure of
the business premises due to due on-going expansion work.
(d) Write a letter to the “loans officer” requesting him for grace period of 6
years to clear up your loan.
(e) If you intend to sell your products on credit basis; design
(i) A receipt for business use.
(ii) An invoice for business use.
272. You are operating an orchard in your village. Due to the increased
demand for the juices and expansion of the scale of operation, you
intend to install a beverage processing plant.
(a) Write a proposal seeking for funds for wage in the construction of the
beverage processing factory.
(b) Prepare a production plan for the project.
(c) Write a circular inviting all your employees to an urgent meeting.
(d) Draw a financial plan for your business given shs 20,000,000.
273. Having graduated as a medical doctor, you have decided to start a
chemical processing industry dealing in the manufacture of human
drugs tablets and syrups. You have also decided to open up a clinic.
(a) Formulate a statement of mission, goals and objectives for your projects.
(b) Prepare a marketing plan for your project.
(c) Design a medical form to be used in your clinic.
(d) Design a label to be placed on the cough mixture syrup.
(e) Prepare an operational budget for your clinic.
(f) Design a stock card that will help your store keeper to ensure roper
stores management.
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274. You are a shareholder in a company selling shoes.
(a) Design a share certificate to be issued to shareholders.
(b) Design a delivery note for business use.
(c) Prepare guidelines to be followed when selling your products on credit.
(a) Draw a programme to promote your products.
(b) Formulate guidelines to be followed by your workers to ensure
production of high quality products.
(c) Prepare a day’s distribution schedule for your products.
(d) Write a tender inviting a potential supplier of packaging materials.
276. You own a secondary school that has frequently had problems due to
to establish a new one.
(a) Formulate the terms and conditions for the sales of the old secondary
school.
(b) Draft rules and regulations to be followed by students in the new school.
(d) Write a warning letter to an employee whose performance is not to the
set standards.
(e) Write an appointment letter to the newly recruited deputy Head Teacher.
FINANCIAL MANAGEMENT SKILLS
1. The information below belongs to NDEGE ENTERPRISES LTD as at 31 st
December, 2005
Shs
Capital 50,000,000
Drawings 10,000,000
Stock 20,000,000
Debtors 17,000,000
Creditors 9,000,000
Premises 32,000,000
Equipment 32,000,000
10 year loan from Century Bank Ltd 15,000,000
Net profit 20,000,000
Required to;
(a) Prepare a balance sheet as at 31st December,2005
(b) Calculate the;
(i) Working capital
(ii) Current ratio
(iii) Gross capital employed
(iv) Net capital employed
(v) Liquid capital
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2. The following balances were extracted from the books of accounts of EDDIE
Trading Company as at 31st December, 2004.
Particulars shs
Stationery 550,000
Rent 900,000
Motor expenses 500,000
Commission received 500,000
Sales 100,000,000
Buildings 130,000,000
Debtors 10,000,000
Overdraft 9,000,000
Machines 59,000,000
Capital 120,000,000
Drawings 13,000,000
6 years bank loan 83,650,000
Required to;
(a) State any three reasons for reparing final accounts
(b) Prepare;
(i) A Trial Balance as at 31st December,2004
(ii) An Income Statement of EDDIE Trading Company.
(iii) A Balance Sheet at 31st December, 2004.
3. The following particulars were extracted from the books of karobwa
enterprises ltd as at 31st December 2001.
Shs
Stock on Jan 1 32,000,000
Capital 200,000,000
Loans to firm (short term) 50,000,000
Cash 8,000,000
Motor vehicle 100,000,000
Bank 34,000,000
Debtors 38,000,000
Expenses 7,000,000
Required;
(a) Calculate the;
(i) Cost of sales
(ii) Average stock
(iii) Rate of turn over
(iv) Working capital
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(b) If the mark up is 25% determine the;
(i) Turn over
(ii) Gross profit margin
(iii) Net profit
(c) Calculate the;
(i) Current ratio
(ii) Capital employed
4. The following records of Assets and Liabilities were available in the books of
YARIWO and SONS ENTERPRISES as at 31st December, 2008.
Shs
Fixtures and fittings 6,000,000
Land and buildings 30,000,000
Debtors 12,000,000
6 year loan 20,000,000
Machinery 7,333,333
Creditors 9,350,000
Outstanding rent and rates 1,300,000
Office equipment 13,000,000
Rent received in advance 3,300,000
Required;
(a) Prepare a Balance Sheet for YARIWO and SONS ENTERPRISES as at 31 st
December, 2008.
(b) Determine the;
(i) Current asset ratio
(ii) Debt-equity ratio
(c) Given the ratios in (b) (I) & (ii) above, explain the position of the business.
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5. The following records belongs to PARADISE RESTAURANT for the year
ended 31st December 2009.
Shs
Sales 9,000,000
Purchases 6,000,000
Trade debtors 460,000
Trade creditors 250,000
Stock (1/1/2009) 500,000
Stock (31st Dec) 380,000
Drawings 300,000
Cash in hand 1,200,000
Bank 4,800,000
Land and buildings 9,220,000
Equipment 3,200,000
Furniture 4,400,000
Motor vehicle 10,000,000
Electricity 100,000
Wages and salaries 800,000
Bad debts 60,000
Carriage outwards 120,000
Short-term loan 750,000
Capital 30,160,000
Required;
(a) Calculate the following;
(ii) Turnover
(iii) Gross profit ratio
(b) Determine;
(i) Fixed capital
(ii) Acid test ratio
(iii) Capital owned
(iv) Rate of return on capital employed
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6. The information below was extracted from the books of Busia Traders as at
31st June 2010.
Shs
Cash 8,000
Capital 16,000
Furniture 30,000
Debtors 20,000
Machinery 12,000
Creditors 13,000
Sales 90,000
Purchases 75,000
Stock (01/07/2009) 10,000
Insurance 2,000
Returns inards 2,000
Rent 4,000
(i) Stock 30/06/2010 shs 30,000
(ii) Rent accrued shs 500
(iii) Insurance amounting to shs 200 was prepaid
(iv) Make a provision for bad debts of 5% p.a
(v) Depreciate machinery by 5% per annum.
(vi) On the day of stock taking to close the trading period, cash shs 2,000
was taken by the entrepreneur for personal use.
Required;
(a) Draft a Trial Balance for Busia Traders.
(b) Prepare the Trading, Profit and Loss Account for the period ending
30/06/2010.
(c) Prepare a Balance Sheet as at that date.
7. The following balances were extracted from the financial statements of
Moses Owori’s business at the end of 2014.
Shs
Sales 288,000,000
Opening stock 91/1/2014) 90,000,000
Closing stock (31/12/2014) 40,200,000
Total current assets 36,100,000
Equity capital 68,400,000
Total current liabilities 16,800,000
Net profit before interest and tax 40,600,000
Long-term liabilities 38,500,000
Interest expense for the year 5,700,000
Required;
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(a) Compute the following ratios for the business
(i) Gross profit margin
(ii) Stock turnover
(iii) Debtors collection days
(iv) Leverage ratio
(v) Interest cover
(vi) Working capital ratio
(vii) Net profit margin
(b) Interpret the following ratios using your results (a) above.
(i) Stock turn over
(ii) Interest cover
8. Nakawa Trading Co. which plans to start a business has availed the
following projected details for the first six months of the year, 2016.
(i) Cash at bank shs 4,000,000 as at 1st January 2016.
(ii) Cash sales for January 2016, shs 5,500,000. The sales are expected
to increase by 500,000 every month. All sales will be by cash.
(iii) Capitalization loan to be acquired from Stanbic Bank in February,
2016 shs 5,000,000.
(iv) Purchase of start-up assets during the month of February 2016 shs
5,000,000.
(v) Monthly payments starting with January 2016
Shs
Salary and wages 1,500,000
Rent 500,000
Advertising 150,000
(vi) Pre-operating expenses to be paid January 2016 shs 4,200,000
(vii) Monthly loan repayments shs 600,000 will begin June 2016.
(viii) Purchases occur in the month of sale and are expected to be 75% of
each month’s projected sales purchases will be paid for after one
month of purchase
Required;
(a) Prepare a Cash Flow Statement for Nakawa Trading Co. for the period of
January to June, 2016.
(b) Explain the importance of the Cash Flow Statement to Nakawa Trading
Co.
9. The following information was obtained from the books of Jorum
Investments Ltd for the months of January, February, March and April
2015.
(i) On 1st January 2014, the business started with shs 4,000,000.
(ii) It expected cash sales of shs 6,000,000 per month, however, it is
expected to reduce by 10% in March.
(iii) The expected credit sales were shs 1,600,000 per month but payment
would be made the following month.
(iv) The business expected a donation of shs 800,000 in cash per month,
but this was to reduce by 12% after the first month.
120
(v) The monthly rent income was shs 200,000, however, it is expected t
increase by 25% after the first two months.
(vi) Immediately after the first month of operation, the expected income
from other sources was projected at shs 2,000,000 per month.
(vii) The business planned to purchase a delivery van at shs 14,000,000
on hire purchase. The down payment is shs 6,000,000 and the
balance was to be paid in installments of 4:3:1 respectively in the
following months.
(viii) The business expected to issue a debenture of shs 5,000,000 in
March 2015.
(ix) Monthly payment for hired labour was shs 1,500,000.
(x) The electricity bill was expected to be cleared at the end of every
month was shs 1,200,000.
Required;
(a) Prepare a cash budget for the months of January, February, March and
April 2015.
(b) Comment on the cash net cash position of Jorum Investments Ltd for
four months.
10. The following projections were made by MONDO during the month of
January 2014.
(i) On 1st January 2014, the business had a cash balance of shs
3,300,000.
(ii) The business expected to make credit sales of shs 12,000,000
monthly of which payment of 80% was to be made in the month of
sale and the balance paid in the next month.
(iii) The business was to get a loan of shs 3,000,000 in January. The loan
was to attract an interest of 5% monthly after one month grace period.
(iv) The business expected a donation of shs 2,000,000 in January 2014.
This was to increase by 10% monthly.
(v) Cash sales expected monthly amounted to shs 20,000,000.
(vi) The business had a policy of paying 2% commission on each sale.
(vii) The business was to sell the old vehicle at shs 8,000,000 and receive
60% of the total price. The balance was to be received in the ratio of
3:2 in the following months.
(viii) The business was to buy office desks in March each at cost of shs
60,000.
(ix) Monthly cash purchases expected at shs 17,000,000.
(x) Credit purchases was to be in two equal monthly principal
installments.
(xi) Credit purchases were expected to increase by 5% every month.
Credit purchases made in January amounted to shs 18,000,000.
(xii) Labour cost was expected at shs 600,000 per employee for 20
employees.
(xiii) The VAT of 18% was to be separately paid in response to the purchase
of office desks.
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Required;
(a) Prepare MONDO’s monthly cash flow statement for our months.
(b) Comment on the trend of the net cash position of MONDO’s business.
11. The following projections relate to EDRIS’ Enterprise during the month of
June 2013.
(i) On 1st June 2013, the enterprise had a cash balance of shs
40,000,000.
(ii) The business expected cash sales of shs 8,000,000 per month.
(iii) Credit sales were projected at shs 2,500,00 per month for which
payment were to be made in the following months.
(iv) Rent income was to increase by 10% monthly.
(v) Rent received on May 31st 2013 was shs 600,000.
(vi) Salary bill of shs 3,000,000 was to be bought in June and cash
payment of shs 3,800,000 made. The balance was to be paid in
installments of 60% and 40% in the next months.
(vii) The business was to get a loan of shs 5,000,000 in the month of July.
(viii) 5% interest loan was to be paid monthly after one month grace period.
(ix) Credit purchases of shs 3,000,000 were made in June. The business
has a policy of paying for credit purchases in 3 equal monthly
installments after one month.
(x) The business has a policy of paying a 2% sales commission monthly
on cash sales.
(xi) The business was to sell some old furniture worth shs 800,000 in
June shs 500,000 cash was received and the balance was to be
received in the next month.
Required;
(a) Prepare EDRIS’ cash flow statement for four months.
(b) Comment on the trend of the Net cash position of the enterprise.
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12. The following information was extracted from the books of Nakate and
Sons Ltd as at 31/12/2006
particulars Shs ‘000’
Stock 13,000
Purchases 200,000
Carriage outwards 200
Sales 285,000
Return inwards 5,000
Transport 16,400
Electricity 550
Insurance 1,600
Repairs of equipment 350
Rent 1,470
Stationery 290
Discount allowed 800
Rent income 6,500
Carriage inwards 500
Commission 2,000
Bad debts 530
Motor vehicle at cost 25,000
Fixtures and fittings at 10,500
cost 45,000
Debtors 5,000
Cash at bank 60,000
Cash in hand 5,000
Drawings 60,000
Capital 36,720
Creditors 32,000
Loan 4,200
Bank overdraft 60
Privision for bad debts
(b) You are required to compute the following

(ii) Cost of sales
(iii) Gross profit
(iv) Ne profit
(v) Floating capital
(vi) Working capital
(vii) Capital employed
(viii) Capital owned
(ix) Borrowed capital
(x) Liquid capital
(xi) Liquid funds
(xii) Average stock
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(c) Compute and interpret the following
(i) Gross profit margin
(ii) Mark up
(iii) Rate of stock turn
(iv) Average number of days stock was held before selling
(v) General expenses ratio
(vi) Net profit ratio
(vii) Current ratio
(viii) Quick assets ratio
(ix) Average collection period for debts
(x) Creditors payment period
(xi) Rate of return on capital employed
13. Kusitama Investments Limited had the following information
(i) The business expects to sell goods every month woth shs 40 millions
and receive only 60% in the month of sale and the remaining amount
to be received in the next month for all sales.
(ii) Monthly purchases of 10 sacks of sugar was shs 400,000 per sack.
(iii) Monthly projected salaries for 50 workers were shs 150,000 per
worker.
(iv) The business hopes to get a loan in May totaling to shs 2 millions.
(v) The monthly interest on the loan is 5% payable after one month grace
period.
(vi) Balance B/D on March 1st shs (18,600,000)
(vii) Monthly cash sales amounted to shs 12,000,000 but this is expected
to reduce by 10% after two months.
(viii) The business expects donations in cash worth 5 millions per month
but this is expected to reduce by 20% monthly.
(ix) Shs 200,000 was to be paid to Nagana Limited as commission per
month.
(x) The business was to transfer shs 600,000 per month to a private fund
of the entrepreneur.
(xi) The business plans to buy a motor van worth 20 millions in the first
month and pay shs 5,000,000 as down payment and the balance to
be effected in the ratio of 2/3, 1/3 in the next 2 months.
(xii) The business will finance any cash short fall with a debenture at the
beginning of the next month with an interest of 10% payable after a
two months grace period.
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14. Mugalu Holdings Ltd employs Isaiah, Moses, Rodgers, Martha and Abdul
earning monthly income of shs 300,000, shs 400,000, shs 386,000, shs
410,000 and shs 700,000 per month respectively. Given the income (PAYE)
tax rates as follows
Monthly income Tax liability
(shs)
0 – 235,000 Nil
235 – 335,000 10% of the amount by which
chargeable income exceeds shs
235,000
335,000 - Shs 10,000 plus 10% of the
410,000 amount by which chargeable
income exceeds shs 335,000
410 – 10,000,000 Shs 25,000 plus 30% of the
amount by which chargeable
income tax exceeds shs 410,000
Calculate the income tax payable by;
(i) Isaiah
(ii) Moses
(iii) Rodgers
(iv) Martha
(v) Abdul
(b) Given the Value Added Tax (VAT) as 18%, calculate the VAT payable at
each stage in the table below
Stage Activity/ Cost Selling VAT
details price price payable
(shs) (shs) (shs)
I Producer 2,000,000
II Producer to 2,000,000 2,400,00
wholesaler 0
III Wholesaler to 2,400,000 3,000,00
retailer 0
IV Retailer to final 3,000,000 4,000,00
consumer 0
V Final consumer 4,000,000
15. Kaggwa Industries which is registered company had the following
projections
(i) The company expects to start operations in the month of September
2015 with share capital of shs 8,000,000.
(ii) Monthly cash sales are expected to be shs 4,000,000 in September
and are expected to increase by 20% every month.
(iii) Monthly credit sales of shs 5,000,000 per month are expected to be
paid in the month following the month of sale.
(iv) The company will float shares worth 60% of its initial share capital in
the month of December 2015.
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(v) The company will acquire a loan of shs 3,000,000 from Centenary
Bank in the month of October 2015 at an interest rate of 5% per
month.
(vi) The principal of the loan will be paid in four equal installments and
the interest starting in the month following the acquisition of the loan.
(vii) The business will acquire a machine in September worth shs
12,000,000. This will be paid for in three equal installments.
(viii) The company will purchase raw materials worth shs 3,000,000 every
month.
(ix) Monthly wage bill of shs 450,000 will be paid.
(x) The company will carry out a fundraising in September and expects to
raise shs 7,600,000.
(xi) The dividends to shareholders will be paid after the 1st quarter of
operation and they are expected to 10% of share capital.
(xii) Tax of shs 300,000 will be paid every December.
(xiii) Fixed costs of shs 200,000 per month are to be paid monthly. They
are expected to decrease by 20% after the 1st month of operation.
Required;
(a) Prepare a Cash Flow Budget for Kaggwa industries for four months.
(b) Comment on the Net Cash Position of Kaggwa Industries.
(c) How different is a Cash Flow Budget from an Income Statement.
16. The following Trial Balance was extracted from the books of Mpororo
Traders on 30/06/2013.
Particulars Dr Cr
Shs ‘000’ Shs ‘000’
Stock 01/07/2013 236,000
Carriages 51,000
Returns 20,500 32,200
Purchases and sales 1,187,400 2,860,000
Rent 30,400
Insurance 7,800
Stationery 21,600
Commission 16,600
Transport 31,400
Premises 1,500,000
Motor vehicles 180,000
Furniture 35,000
Debtors and creditors 589,000 167,000
Bank 48,200
Drawings 120,000
Capital 1,463,000
Provision for bad debts 6,000
Total
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(i) Stock on 30/6/2015 at shs 294,600,000
(ii) Unused stationery amounted to shs 600,000
(iii) Depreciation on motor vehicle was charged at 5%
(iv) Of carriage shs 20,000,000 was for carriage inwards
(v) Provision for bad debts was maintained at shs 5,000,000
Required
(a) Prepare MPORORO Traders Income Statement
(b) Calculate and interpret
(i) Working capital ratio
(ii) Cash ratio
(iii) Debt collection period
(iv) Rate of return on capital invested
17. The following projections related to MUKASA’s business for the months
of July, August, September and October 2013.
 On July 2013, the business had a cash balance of shs 9,000,000
 The business expected to sell gods every month worth 40,000,000
shillings and receive only 60% in te month of sale and the balance in the
next month.
 Monthly salary was projected at shs 200,000 each employee for 50
employees.
 The business was to get a loan of shs 2,000,000 in the month of July.
 Interest on loan was 5% monthly and payable after one month of grace
period.
 The business expected a donation of shs 2,000,000 in July, but this was
to increase by 10% monthly.
 Cash sales were estimated at shs 600,000 monthly. Monthly cash
purchases were estimated at shs 7,000,000.
 The business planned to buy a vehicle in July at shs 36,000,000.
 The business was to install plant machinery worth shs 20,000,000. In
the first month it was to pay cash deposit of shs 8,000,000 and the
balance to be cleared in installments in the ratios of 3:2:1 in the
following months.
 The business was to finance any cash shortfall with a debenture at the
beginning of the following months.
Required
(a) Prepare MUKASA’s monthly cash flow statement.
(b) Suggest to Mukasa the various ways of avoiding cash shortfalls.
18. (a) (i) Distinguish between tax evasion and tax avoidance.
(ii) Identify two types of indirect taxes.
registered businesses in your town for the month of May 2015.
(i) Masanso bought goods worth shs 60,000,000.
(ii) Masanso sold the same goods to Onzita a retailer for shs
96,000,000.
(iii) Onzita sold goods to the final consumer for 120,000,000.
127
Required;
(i) Using the VAT rate of 18%.
(ii) Compute for the entrepreneurs the VAT chargeable for the value
added at each stage.
(iii) Advise on the gross sales value for his goods to the customer.
(c) Muserebende a trader on Nkrumah Road imports polythene packing bags
from India.. the CIF value for the gods is US $ 6,000. Polythene bags
attract an import duty of 25% excise duty of 50%, VAT 18% and with
holding tax 6%.
Required;
What would be the tax payable for the polythene bags given that the
exchange rate at the time of importation is UG shs 2,400 to 1 US $.
(d) Kapapaala is a Ugandan who earns a monthly income of shs 640,000.
Calculate the tax payable by Kapapaala.
(e) Kifaalu income from different sources for the year 2014 as below;
Business income 3,000,000
Employment income 5,600,000
Property income 1,200,000
In addition, he incurred expenses and losses amounting to shs
2,800,000 to earn the income. A total of shs 600,000 out of the income
is tax exempt.
Required;
Determine Kifaalu’s Gross Income and chargeable income.
INCOME STATEMENTS
1. The trial balance below relates to the business of Uhuru Kenyatta as at 31st
.Oct.2010
Dr (shs) Cr (shs)
Equipments 635,000
Postage 67,000
Carriage inwards 36,000
Rent and rates 287,000
Telephone 30,500
Insurance 49,000
Office expenses 137,000
Drawings and capital 843,000 2,264,100
Cash 39,000
Bank 311,000
Debtors and creditors 1,230,000 937,000
Stock 2,455,000
Motor van 434,000
Loan 1 year 37,000
17,338,100 17,338,100
Closing stock was valued at shs 2,780,000
128
Required:
Prepare an income statement including a balance sheet as at the above
date.
2. The balances below were extracted from the business of Kiduula Trading
Company. Use it to prepare the trading, profit and loss account together
with a balance sheet.
Kiduula Trading Company trial balance as at 28th February, 2010
Dr (shs) Cr (shs)
Returns 6,000,000 7,400,000
Stock 9,500,000
Rates 8,600,000
Postage 10,040,000
Insurance 6,000,000
Fixtures and fittings 3,460,000
Debtors and creditors 1,980,000 1,340,000
Bad debts 400,000
Commission received 25,582,000
Drawings 1,800,000
Capital 7,465,000
Bank loan 690,000
Loan interest 340,000
Cash 4,707,000
79,677,000 79,677,000
Stock at close was shs 7,432,000
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The trial balance below belongs to the business of Magufuli Trading
Company for the ending 30th April, 2013.
Dr (shs) cr (shs)
Sales 13,807,000
Purchases 8,235,000
Drawings 780,000
Rent and rates 560,000
Insurance 102,000
Telephone 200,000
Stationery 100,000
Advertising 133,000
Bad debts 87,000
Bank 102,000
Cash 17,700
Debtors and creditors 1,210,000 647,000
Stock 1,418,000
Buildings 5,800,000
Loan 6 years (ADB bank) 1,900,000
Capital 5,431,700
21,898,700 21,898,700
Adjustments:
i. Rent owning was 21,000
ii. Prepaid rates 88,000
iii. Increase provision for bad debts to shs 120,000
iv. Stock at close of business was 1,355,000
v. Depreciate buildings by 10% per annum
Required:
(i) Income statement for the year ended 30th April, 2013.
(ii) Balance sheet as at the above date.
130
3. Byenda Kadde Traders have presented to you the information below. Use
it to prepare a set of final accounts including the balance sheet and
journalize all the adjustments.
Trial balance sheet as at 31st July, 2003
Dr (shs) Cr (shs)
Capital 4,230,000
Drawings 300,000
Debtors and creditors 600,000 420,000
Furniture 2,000,000
Buildings 1,800,000
Stock 260,000
Wages 190,000
Repairs 80,000
Stationary 320,000
Postage 120,000
Bad debts 90,000
Loan 1 year 140,000
Commission 210,000
Insurance 110,000
Fuel expenses 100,000
Rent received 130,000
Cash 720,000
Returns 60,000 40,000
8,580,000 8,580,000
Adjustments
(i) Closing stock 310,000
(ii) Prepayment of insurance was 20,500
(iii) Accrued postage expenses 10,000
(iv)Byenda took goods worth shs 120,000 from the business for personal
use.
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4. The following balances were obtained from he books of Gift Land Holdings
on 31st December, 2010.
Shs
Sales 3,600,000
Purchases 5,000,000
Stock (01.01.2010) 600,000
Debtors 900,000
Insurance 120,000
Creditors 600,000
Machinery ,200,000
Stock (31.12.2010) 980,000
Advertising 100,000
Drawings 400,000
Required:
(a) Prepare an income statement for Gift Land Holdings
(b) Prepare a balance sheet as at the above date as at 31st December.
132
5. The following information was extracted from the books of Kafumiro
Traders for the year ended 31st.12.2007.
Dr (shs) Cr (shs)
Inventory 3,600,000
Accounts receivable 700,000
Accounts payable 450,000
Discounts 600,000 800,000
Bank loan 3,000,000
Stationery 700,000
Loan interest 40,000
Postage 200,000
Insurance 100,000
Plants and machinery 2,000,000
Land 4,400,000
Furniture 1,300,000
Accumulated depreciation on furniture 100,000
Fuel expenses 130,000
Bank 3,900,000
Cash 1,800,000
Returns 100,000 200,000
Drawings 900,000
Capital 11,540,000
35,290,000 35,290,000
Adjustments
(i) Closing inventory was valued at shs 3,000,000
(ii) Prepaid salaries was valued at shs 100,000
(iii) Outstanding insurance was shs 40,000
(iv)Unused stationery was worth shs 20,000
(v) Depreciate all fixed assets by 15%
Required:
(a) prepare an income statement
(b) Prepare a balance sheet as at the above date
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6. The following information relates to the business of Musonyoli for the year
ended 31/12/2010
Dr (shs) Cr (shs)
Sales 35,600,000
Rent expenses 1,560,000
Heating expenses 516,000
Motor expenses 1,960,000
Insurance 305,000
Returns 70,000
Motor vehicles 3,500,000
Sundry expenses 806,000
Debtors and creditors 6,810,000 3,250,000
Fixtures 3,960,000
Buildings 28,000,000
Drawings and capital 6,278,000 51,864,000
Stock 1,245,000
Short term loan from Equity bank 1,300,000
92,014,000 92,014,000
Closing stock was valued at shs. 800,000

Required:
Calculate
(i) Net purchases
(ii) Cost of goods available for sale
(iii) Cost of sales
(iv)Average stock
(v) Gross profit
(vi)Net profit/loss
(vii) Prepare a balance sheet as at the above date
134
RATIOS
1. The information below relates to the business of Omushani Traders
Stock (31/12/2010) 440,000
Sales 1,800,000
Purchases 700,000
Debtors 600,000
Creditors 340,000
Stock (1/12/2010) 600,000
Wages 100,000
Salaries 310,000
Electricity 104,000
Stationery 90,000
Bank 560,000
Cash 480,000
Bank overdraft 120,000
Prepaid insurance 50,000
Accrued postage 30,000
Required:
(a) Net purchases
(b) Cost of goods available for sale
(c) Cost of sales
(d) Average stock
(e) Gross profit
(f) Net profit
(g) Acid ratio
(h) Working capital ratio
(i) Net profit ratio
(j) Gross profit ratio
(k) Rate of turn over
(l) Average collection period
(m) Rate of return on capital
(n) Debtors/ sales ratio
(o) Creditors’ ratio
135
2. Kabuto Massombo’s business has a rate of stock turnover of 8 times per
year. Average stock is shs. 460,000. Mark-up is 60% and expenses are
70% of the gross profit.
Calculate:
(a) Cost of goods sold
(b) Turn over
(c) Gross profit
(d) Net profit
(e) Total expenses
3. The following figures relate to the business of Jaajja Traders as 31 st
December 2012.
Turnover 16,000,000
Gross profit 4,000,000
Average stock at cost 10,000,000
Total expenses 800,000
Current assets
Stock 10,000,000
Debtors 5,000,000
Bank 3,000,000
Cash 6,000,000 24,000,000
26,800,000
Current liabilities
Creditors 6,000,000
Capital 20,800,000
26,800,000
Required:
Calculate the following;
(i) Gross profit as a percentage of sales
(ii) Rate of stock turn
(iii) Net profit as a percentage of sales
(iv)Rate of return on capital
(v) Current ratio
(vi)Quick ratio
(vii) Quick asset ratio
(viii) Net profit ratio
136
4. You have been presented with information below extracted from the books
of Kiwedde for the year ended 30th June, 2010.
Shs
Stock (30.6.2010) 4,700,000
Furniture 900,000
Debtors 700,000
Creditors 620,000
Bank 3,600,000
Cash 2,200,000
Loan 1 year 500,000
Insurance 300,000
Postage 100,000
Electricity 120,000
Stock (1.7.2009) 4,000,000
Motor van 2,700,000
Purchases 3,900,000
Sales 13,600,000
Drawings 3,000,000
Returns from customers 200,000
Capital 8,440,000
Required
Calculate;
(a) Cost of goods available for sale
(b) Cost of sales
(c) Average stock
(d) Rate of turn over
(e) Debtors ratio
(f) Creditors’ ratio
(g) Gross profit
(h) Net profit
(i) Gross profit as a percentage of sales
(j) Net profit as a percentage of sales
(k) Prepare the balance sheet
TAXATION
1. Mr. Mulwana imported a car from Japan at a CIF value of $ 10,000. The
car attracts an important duty of 25% excise duty of 50%, VAT of 18% and
withholding tax of 6%. Calculate the tatoal amount of tax payable by Mr.
Mulwana when the exchange rate is UGX 2,000 for US $ 1.
2. Muhwezi imported 10 BMW cars from Germany at a CIF value car of £

18,000. The cars attracted an import duty of 20%, excise duty of 50% and
VAT of 18% and withholding ax of 6%. Calculate how much tax was paid ny
Muhwezi oif the exchange rate was £ 1 to UGX 2,000.
137
3. A imports at shs. 12,00/= including his profits and sells them to B who is a
local dealer at the same rate. B sells them to the wholesaler at shs.
15,000/= who sells to the retailer at shs. 18,000/=. The retailer finally sells
to the final consumer at shs. 24,000/=. All parties are VAT registered.
Questions
(i) How much VAT was paid by final consumer on the goods?
(ii) How much was paid by the final consumer for the goods?
Solution
Traders Purchase Selling Value VAT at
price price added 18%
Importer A 12,000 - 12,000 2,160
Dealer B 12,000 15,000 3,000 540
Wholesale 15,000 18,000 3,000 540
r
Retailer 18,000 24,000 6,000 1,080
Final 24,000 - - 4,320
consumer
(i) VAT paid = shs. 4,320/=
(ii) Purchase price + VAT = 24,000 + 4,320 = shs. 28,320/=
4. Last year in June, Kapere bought sugar at shs. 4,500,000/= and sold it to
Kimono Traders at shs. 7,600,000/=. All transactions were VAT exclusive
at the rate of 18%.
Required:
Calculate
(i) VAT on purchases (input)
(ii) VAT on sales (output)
(iii) VAT that Kapere paid to Uganda Revenue Authority
Tax schedule
Chargeable income Tax rate
(monthly)
Not exceeding shs. Nil (No tax)
235,000 (Y≤235,000)
Exceeding shs. 235,000 10% of the amount by
But not exceeding shs. which chargeable
335,000 income exceeds shs.
(Y = 235,000≥335,000) 235,000
Exceeding shs. 335,000 Shs. 10,000 plus 20% of
BUT not exceeding shs. the amount by which
410,000 chargeable income
(Y = 335,000≥410,000) exceeds shs 335,000
Exceeding shs.410,000 Shs. 25,000 plus 30% of
(Y > 410,000) the amount by which
chargeable income
exceeds shs. 410,000.
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5. Mukasa John working with Spear Motors and earns a monthly pay of shs.
900,000 with transport allowance of shs. 20,000 per week. How much does
he pay as income tax?
6. Mr. Big a resident of Uganda earns a monthly pay of shillings shs
275000/= without ant allowance required. How much income does he pay
as income annually?
7. Mr. Ojiambo a Ugandan resident works with tropical Bank earning a
monthly salary of shs 8,600,000. He is entitled to a housing allowance of
shs. 400,000/= per month and transport per month shs 250,000. How
much does he pay as income tax to URA?
5. The following information was obtained from the books of Ddembe
Workshop for the year ended 31st/Dec/2010.
Details Shs
Opening stock 800,000
Closing stock 600,000
Purchases 2,600,000
Sales 4,200,000
Wages 200,000
Expenses 1,200,000
Capital 5,000,000
Land 1,000,000
Plant and machinery 400,000
Creditors 210,000
Debtors 530,000
Drawings 100,000
Prepaid insurance 50,000
Advance postage 30,000
Required
1. Net purchases
2. Cost of goods available for sale
3. Cost of sales
4. Average stock
5. Gross profit
6. Net profit
7. Margin
8. Mark-up
9. Rate of return on capital
10. Rate of turn over
11. Average collection period
12. Balance sheet
139
6. (a) Define the term cash flow statement and give four of its uses.
(b) Mweruka Trading Company had the following transactions for the year
ended 2014.
(i) The company expects to sell goods every month worth shs
100,000,000/= and receives only 60% in the month of sale and the
balance to be received on month after the month o sale for all
sales.
(ii) Expected share capital from share holders in June and July shs
6,000,000/= and shs 10,000,000/= respectively.
(iii) Expected cash from debtors in July shs 10,000,000/=
(iv) Sale of an old van in June shs 6,000,000/=
(v) Monthly credit sales shs 30,000,000 and payment is to be received
after one month from the sale.
(vi) Loan is expected in May for shs 12,600,000/= and it will attract an
interest of 10% per month.
(vii) The grace period given to the business is one month after acquiring
the loan.
(viii) The company expected to pay for raw materials worth shs
5,000,000 in the first month but this is to increase by 10% after
one month.
(ix) By the end of April, the company had cash balance of shs
1,000,000/=
(x) Purchase of fruit from farmers is projected at shs 2,000,000/=
which is to increase by 20% after the first two months.
(xi) The tax of shs 200,000 will be paid to KCCA monthly starting with
the month of June.
(xii) The dividends will be paid every after one month at the rate of 10%
of average share capital for four months.
(xiii) The company is to make a commission payment of shs
12,000,000/= monthly which is to reduce by 5% monthly after the
first two months.
Questions
(a) Prepare a cash flow statement for Mweruka fo the period of May to
August 2014.
(b) How can she drive the business from deficit?
140
7. The following information relates to Malusu enterprises for the period
ending 31/12/2007.
Trial balance as at 31/12/2007
Particulars Debit (Shs) Credit (Shs)
‘000’ ‘000’
Capital 2,100,000
Interest received 200,000
Drawings 500,000
Buildings 1,160,000
Creditors 1,000,000
Returns 80,000
Rent 46,000
Discounts 50,000 70,000
Salaries 250,000
Insurance 56,000
st
Stock 1 January 2007 1,420,000
Machinery 2,000,000
Debtors 1,800,000
Bad debts written off 14,000
Provision for 306,000
depreciation on
machinery
Fixtures and fittings 670,000
Sales 6,650,000
Purchases 3,420,000
Cash at hand 5,000
Bank balance 310,000
5% loan from Uganda 400,000
Micro finance
11,591,000 11,591,000
(i) Stock at close was valued at shs 1,300,000,000
(ii) Rent accrued shs 15,000,000
(iii) Insurance paid in advance 12,000,000
(iv) Commission of shs 100,000,000 was not yet received.
(v) Adjust the bad debts provision to 5% per annum of sundry debtors.
(vi) Depreciate buildings by 10% p.a on cost and machinery at 5% p.a
using reducing balance method.
141
Required;
(a) Prepare Malusu enterprises income statement for period ended
31/12/200
(b) Balance sheet as at that date.
(c) Compute and interpret
(i) Working capital ratio
(ii) Rate of stock turn
(iii) Rate of return on capital employed
(iv) Average collection period for debts
8. The following information was obtained from the books of Nyamanza
Traders for the period ended 31/12/2009.
Premises 1,150,000
Trade debtors 30,000
Motor car 550,000
Provision for depreciation on motor 50,000
car
Trade creditors 20,000
Provision for depreciation on 4,000
furniture and fittings
Purchases 60,000
Sales 180,000
Return inwards 5,000
Return outwards 6,000
capital 2,155,000
 Stock on 31st December 2009 was valued at shs 25,000
 There was no opening stock
 Provide for depreciation on motor car and furniture and fittings were
made at the rate of 5% on diminishing balance method.
(a) You are required to prepare a Trading, Profit and Loss Account and
balance sheet.
(b) Given the following industrial averages
(i) Current ratio 2:4:1
(ii) Quick ratio 1:5:1
(iii) Rate of inventory turns over 5 times
(iv) Rate of debtors turnover 3 times
(v) Creditors turn over 25 times
(vi) Debt to equity ratio 2:1
You are equired to use the information in (a) and (b) to assess and
interpret financial position of business.
(c) Identify the types of ratios.
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9. The following trial balance was extracted from the books of accounts of
Lujuju
Lujuju traders’ trial balance as at 31/12/2013
Details Dr (Shs) Cr (Shs)

Purchases/sales 2,000,000 4,900,000
Capital 13,000,000
Discounts 80,000 50,000
Bad debts 790,000
Returns 110,000 140,000
Stock 1/1/2013 370,000
Debtors/creditors 1,000,000 700,000
Insurance premium 200,000
Salaries 400,000
Drawings 300,000
Motor van at cost 6,000,000
Furniture at cost 2,500,000
Equipment at cost 4,565,000
Bank loan 1,000,000
Bad debts recovered 210,000
Provision for 200,000
depreciation on motor
van
Interest received 1,000,000
Sundry expenses 400,000
electricity 20,000
21,300,000 21,300,000
 Closing stock was shs 100,000
 Accrued salaries shs 100,000
 Decrease the provision for bad debts by shs 20,000
 Interest received in advance was shs 50,000
 Depreciate motor van by 5% on the reducing balance method
143
Required;
(a) Prepare a trading profit and loss account for the year ended 31/12/2013.
(b) Balance sheet as at that date.
10. The following balances were obtained from books of WADDANGA

……….ended 31/12/2012.
Particulars shs
Sales 3,000,000
Bank balance 360,000
Land 790,000
Debtors 500,000
Bank loan 1,440,000
Motor cycle 320,000
Gross profit 800,000
Creditors 540,000
Drawings 260,000
Capital 1,200,000
Machinery 600,000
Bank overdraft 400,000
Stock 31/12/2012 600,000
Furniture 400,000
Stock 1/1/2012 500,000
Purchases 2,300,000
Calculate;
(i) Current ratio
(ii) Ratio of stock turn
(iii) Gross profit ratio
(iv) Net profit ratio
(v) Acid test ratio
(vi) Rate of return on capital
(vii) Average credit period for purchases in months
(viii) Average collection period for debts in weeks
144
11.
Stock (30/6/2006) 4,700,000
Furniture 900,000
Debtors 700,000
Creditors 620,000
Bank 3,600,000
Cash 2,200,000
Loan 1 year 500,000
Insurance 300,000
Postage 100,000
Electricity 120,000
Stock (1/7/2006) 4,000,000
Motor van 2,700,000
Purchases 3,900,000
Sales 3,600,000
Return from customers 200,000
Capital 8,440,000
Required to calculate;
(i) Cost of goods available for sale
(ii) Cost of sales
(iii) Average stock
(iv) Rate of turn over
(v) Gross profit
(vi) Net profit
(vii) Gross profit as a percentage of sales
(viii) Net profit as a percentage of sales
(ix) Debtors ratio
(x) Creditors ratio
(xi) Balance sheet
12. The information below relates to the two investments A and B
A shs B shs
Sales 100,000 100,000
Purchases 60,000 55,000
Operating expenses 30,000 30,000
Investments 20,000 20,000
145
Required
(i) Calculate the return on investment for both investment
(ii) Advice Mr. Kawooya where to invest his money and why?
13.
4 years loan 2,870,000
Machinery 5,000,000
Drawings 2,060,000
Rent 700,000
Electricity 260,000
Motor vehicles 7,000,000
Debtors 3,000,000
Stock 31st/12/2010 600,000
Sales 12,060,000
Creditors 2,400,000
Short term loans 4,140,000
Wages and salaries 1,000,000
Purchases 8,000,000
Stock (1/01/2010) 1,500,000
Bank 2,500,000
Cash 800,000
Capital 9,860,000
Required calculate;
(i) Cost of goods available for sale
(ii) Gross profit
(iii) Margin
(iv) Net profit capital
(v) Working capital
(vi) Capital employed
(vii) Liquid capital
(viii) Circulating capital
(ix) Rate of stock turn
(x) Rate of return on capital employed
(xi) Ratio of creditors sales
(xii) Average collection period for debts
(xiii) Cost of sales
(xiv) Mark up
(xv) Net profit
(xvi) Capital owned
(xvii) Fixed capital
(xviii) Borrowed capital
(xix) Liquid funds
146
(xx) Current ratio
(xxi) Administration ratio
(xxii) Ratio of debtors sales
(xxiii) Acid test ratio
Note: of all the mentioned points evidence is paramount.
EXERCISE FOR CASE STUDIES

Exercise one
LYDIA JEMBA BUILT BANK FOR NAMAYUMBA VILLAGERS.
In a small trading centre of Namayuba (about 43 km from Kampala) in
Wakiso District. One name has become a house hold song. I alighted from the
Taxi and a minute. I had gotten directions to Jemba’s house.
“Are you looking for Jemba”, woman who brought a bank to Namayuba”?
One bodaboda cyclist asked, many people in this village refer hers as a change-
maker. As we ride along the dusty village path that leads to Jemba’s home, the
cyclist cannot hide his excitement to volunteer information about Jemba.
“Which new project have you brought for her now”? he asks” Jemba has made
this community proud because of the many projects she has brought that have
transformed women. My wife is a testimony as she is a member of her group
and as I tell you now she is catering for about 70% of our home needs he says.
“She bought a cow which I could never afford. Besides, she is paying school
fees for our children. Jemba deserves acknowledge. She is extraordinary
women and really admire her husband because he has a treasure in his house”
the cyclist Jackson Kiwembo narrates. At Jemba’s home, a group of people is
listening as she takes them through the ways of owning a granary in the home
stead. The woman listen attentively before asking questions, which she
answers.
Her background
Born in Lugazi, Mukono district in 1960. Lydia Jemba trained as
functional adult trainers as profession she used to transform many lives in
Namayuba and Kakiri countries in Wakiso. She was a member of Wakiso
women food farmers’ initiative where she acquired the skills of team work.
This kind of training was later to become the genesis to the women group she
named Namayuba Epicenter SACCO Limited (NECSL), a group that has
transformed many from poverty to wealth.
“One day during training our trainer told us that the only way she would
feel appreciated was seeing her trainees put the information she gave them into
practice, “Jemba says.
“I shared the information with other women and when my trainer visited
them, she was very pleased”.
HER JOURNEY
In 1999, Jemba started training 14 women on how to grow food and how
to store it. They would meet once a week but as the numbers increased, she
started meeting them three times a day.
“When I went to the L.C to ask for Namayuba were difficult to convince
as they were too dependant on their husbands. I asked him to let me give it a
147
try and today things are moving well. I was even elected as the women’s
representative of Namayuba council”. Jemba says.
When the number grew further, Jemba used part of her land to teach the
women how to vegetables and maize, they used Jemba’s two acres and when
they harvested, they sold it and shared the proceeds, but each one had to save
10%.
TESTIMONIES
“When she told me to leave some money for saving, I first become
suspicious thinking she would disappear with it. But as time went on. I
realized the importance”, says Edith Bombo, one of the beneficiaries.
Jemba brought a metallic box where she kept our savings and gave the
money when we wanted it. She kept the keys with the L.C Chairman something
that made me believe she was an honest woman,” Bombo says.
“When Jemba came to my home asking me to join her group. I was
reluctant. But one day my daughter told me about the training she gets from
Jemba’s home and asked me to go with her. Since that time I have never
looked back”, says Lovinsa Ssewanyana, another beneficiary.
“At 74, I do not depend on my children, Instead they come to me asking
for milk and food. Who am I to speak English at this age when I never went to
school”? Jemba is a blessing,” Ssewanyana adds, she is now a proud owner of
two dairy cows, a big banana plantation and vegetation gardens. She sells
some of the vegetables and opened up a bank account for saving but not all the
projects have been an easy sell.
In 2004 a group from send a cow visited Wakiso to educate people on
how to keep heifers but women were not un realistic because they thought
cows were expensive to look after.
“I borrowed sh100,000 from my husband moved from house convincing
women to embrace the heifer project. I promised to get people to train them on
how to look after their cows. I approached the director and asked him to send
some trainers to Namayuba to teach people. When they came, they were
shocked at the number of people who had gathered. They agreed to come and
work with us” Jemba said.
Send a cow gave cows to members and promised to teach them how to
look after the. The group that started with 30 members now has 14.772
woman and 57 men. And over 75% of the members have heifers in their homes
Jemba says with the introduction of cows. People started getting milk but had
no where to sell it. She went to the Jesa Farm properties. Jemba Mulwana
(RIP) and pleaded with him to buy their milk.
Mulwana agreed on condition that the milk was of good quality.
Jemba hired a car to always take the milk to the farm and later returned
with the money for the milk owners Jemba would come back and pay us
without deducting any money. It is now five years and we have never paid her
anything for selling the milk says Bijja a beneficiary setting up the bank.
As the members’ income grew, Jemba conceived an idea of starting village
bank.
“The bishop asked me to take a letter from the L.C the following Sunday I
organized some members and transported them to Namirembe Jemba said.
148
After listening to the members’ testimonies, the bishop promised to visit
Jemba to see what we were doing. He offered us the land. Jemba did not have
money to set up a structure. But during one of the women’s meetings in
Wakiso another NGO, The hunger project, introduced a new project to teach
women how to eradicate food shortage in homes.
“After the training, I approached the trainers and asked them to visit my
group in Namayuba. We asked them to get us people to construct a structure
where we should start to work with Namayuba community and set up the
structure that is how the bank in the area came into existence.
People can now save their money, they also a permanent meeting venue.
Jemba advised the members to start buying shares in the bank which
many did by paying sh10,000 each from which 10m was realized, this is the
money they used as start up capital.
Jemba has also started a new project where she teaches people how to
make soap, mats, huts, tie and dye, clothes, baskets, wooden trays and many
other items which she sells and gives the proceeds to the members. About
30% is used into the members account. She also set up a tree fruit seeding
bed where women plat fruit seedlings which they sell. Jemba also introduced
vegetable growing now all members have gardens in their homes.
“As a husband, I do not know how she won my trust, I was always away
from home doing petty jobs with Kampala City Council (KCC) and I could only
see her over the weekend, People used to call me complaining that my wife had
started bringing wrong people in my home and that she was also spoiling
peoples wives by talking them to groups. When I asked her. She explained
how she was going to help the community and since she was a counselor, I felt
her have her way, Today she is a here in Namayuba”, Jemba Kayuba, the
husband said Kajumba adds that since his job with KCC was not paying well,
he quit and joined his wife. He helps her with the work and managers all the
home projects when she is on duty plans.
Jemba plans to set up a trade center where she will exhibit the products
the people are making. She also wants to set up a factory.
“My dream is to see al woman in Wakiso own some things. Now that the
men have joined in, things will be easy since they will not make it hard for their
wives”, Jemba notes.
From the above answer questions as follows
a) Who is Lydia Jemba?
b) Briefly outline the backgrounds of Lydia Jemba’s growth as a social
Entrepreneur.
c) Explain characteristics posed by Lydia Jemba.
d) Explain changes brought about Lydia Jemba to his Society.
e) Mention different ways used by Lydia Jemba to promote savings.
f) Jemba made people self reliant. Discuss?
g) Explain factors that made Lydia Jemba to succeed.
h) Explain different ways Lydia Jemba used to raise enough resources.
i) What market strategies did he use to promote his ides, products and
different skills?
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j) i) Mention different types of Business that were developed by Lydia
Jemba.
ii) Mention different types of business that cropped our Lydia Jemba’s
Entrepreneurship.
art two
a)”My dream is to sell all women in Wakiso own something. Now that the
men have joined in things will be easy since they will not market hard for
their wives. Justify the statement in reference to case study.
b) Mention Lydia ethical behaviours towards customers and his
subordinators.
c) Explain the Leadership styles Lydia posses and give good examples.
d) Mention any five projects that Jemba started Namayuba.
e Explain with examples from the case study challenges that Lydia Jemba
faced.
f) Explain steps she followed when opening a bank in her villages.
g) Which entrepreneurial skills exhibited in her character?
h) Discuss various viewss people had about Lydia Jemba towards his
development idea.
i) State;
i) Vision statement for Mrs. Jemba.
ii) Mission statement
i) Goals and objectives.
j) State clearly different stake holders that help Lydia Jemba to succeed
in July filing her activities.
Exercise two
Case study
Olanya noticed that a two day festival in his community was about to take
place. So he started wondering what he could sell at the festival that may earn
him a good income. Olanya came up with along list of ideas. Ranging from
making keys to selling balloons since no one sold them at the festival since it
began five years ago. He thought this would be coming for the festival. He
thought that selling aluminum balloons would be good idea at the festival.
Olanya believed that he could do this business because of his ability to work
hard understanding of making friends, ability to complete work even in the face
of discouraging constraints and willingness to take calculated risks. He
however netted some of the factors which might constrain him such as
deficiency to operate the pumping value, poor communication skills and losing
his temper quickly other factors that he thought were not in his favors were un
expect competition and security related cases during the festival as well as
interruptions by rain among many others on foreseeable events.
The fact that many children may not be familiar with this type of
balloons was also considered a big threat to Olanya’s business.
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Questions
i) Identify Olanya’s Goals.
ii) Mention different business opportunities that Olanya identified.
iii) Explain challenges Olanya faced in setting goals.
iv) Mention the opportunities that Olanya had.
v) Explain factors that may favor and make Olanya’s business a
success.
vi) What other business opportunities will identify from Olanya’s
business environment.
vii) Design Olanya’s market flow chart.
viii) Basing on Olanya’s weakness suggest ways or measures you will
give to Olanya to promote his business.
ix) Suggest ways you would advise Olanya to overcome the un
expected challenges.
Exercise three
Read the case study and the questions that follow.
“In our village, our family land was large you could not see our neighbors home
from ours” said the old man.
“We had enough land to cultivate and graze our animals. We could not
cultivate any piece of land continuously more than four reasons. There would
always be flesh piece of land to cultivate, which would give better harvest.
Most of land was covered with trees, shrubs and swamps. Rain season never
failed. Cows and goats ate to their fill and were fat.
“Those were the good old days, the days of my fathers and grandfathers.
Things have however changed. So many new developments have taken place.
People seeking to make money come and put up a machine. This machine is
fed with lots of big pieces of stones. It eats them and spits small pieces stones
and at times, dust large parts of the village have been dug up to get the stone
feed the machine.
There is another machine which fed with big trunks of wood and it
produces small straight wood. I hear them say it is timber. All the trees that
used to cover the hill top and valleys have been cut down new trees to replace
those being cut but ever since they started they have not yet planted any.
Then there are many big and rich people keeping many black and white
cows. They come and look our swamps and dug deep channels which took
away the water that used to flood the area. They then grass on which their
cows feed. Looking at it now you would never know that there used to be a
swamp”.
With the business have come like cars one can travel from our village to
Kabale while seated in a car previously, one walked and it would take 2 days.
There are many shops selling things we had never seen before. The houses are
covered with iron sheets. Previously we used grows from the swamps as for the
clothes, I cannot say thing.
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All these changes brought man people to our village people’s homes are
too close to each other. They say that his is one of the reasons we have
frequent malaria attack during the days of my grandfather and my fathers we
never knew malaria people’s land holdings have shrunk.
Hardly enough for growing subsistence food. The yields are very low and we
can no longer grow same of the crops we used to like sorghum major staple
crop no longer grow tall, it is hardly a young man’s height. The forests and
swamps have also gone. Women have to go very far to look fire wood and
water. The rain no longer comes regularly and when it does.
It is short hardly enough for the crops to grow well. Worse still, at time it is too
heavy with strong winds and hailstones. It destroys and washes away crops,
kills animals and takes way the soil.
It would be better if Kazooba (God of the sun) took me now before I see
the worst of my days. The say things are changing, but if they keep changing
like I have seen, I’m worried from my womb”.
Use the above case to answer the following questions.
a) What is the case study about?
b) Identify the natural environment elements the old man’s village?
c) What businesses have been established in the oldman’s village?
d) How has each of these businesses contributed to environmental
degradation.
e) What has been the affect to the degrade environment?
Part two of the questions
a) What is the case study all about?
b) Explain the Natural Environmental elements in the old man’s
village.
c) Outline the businesses that have been established in the old
man’s village.
d) Outline six characteristics of change that took place in the old
man’s village.
e) Show how innovation sailed in old man’s village.
f) Explain how each business contributed to environmental
degradation.
g) Explain four nature and characteristics of entrepreneurship in the
above case study.
Exercise four
Case study: innovations: making inverters locally.
Kaluya lives in Bukoto a Kampala suburb power where load shedding starts in
the morning meaning that the night will be dark.
For most house holds in this area. But for one home, there will be light
through out the night and its occupants will watch TV, read newspapers and
do home work, thanks to the genius of Moses Kaluya, a self- electrical
technician. The 42years old childhood fascination with electric circuits is now
paying off with modest income from making low-cost, power- saving
appliances.
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Kaluya’s business.
At his small work shop in Bukoto, Kaluya is wrapping bands of wire on to a
rod. He is doing final touches to one of the most sought – after gadgets – a
power inverter. An inverter is an electrical device that changes direct current
(DC) to alternating current (AC) allowing users to have power for lighting and
other use either at home their commercial premises. The inverter runs along
side the battery which stores power in DC format”, I taught my self how to
make power inverters”, Kaluya who works as an electrical technician at radio
Simba. The 350 watts inverter he is making can power 10 energy- saving bulb;
a 21 inch TV set, light applicants for up to 10 hours during power storage. He
sells this device 550,000 each on the other hand an inverter with similar
specifications, which is imported costs between shs800,000 and 100,000.
Starting out;
Kaluya says he hatched the idea making inverters after watch a friend doing it
in 2008.
I asked him to teach me, but he was not will, I read several books and
consulted any other friend, who kept sending me guidelines via email,” he says.
After two year of researched, Kaluya made his first inverters in 2010 and sold it
at sh500,000,” I kept challenging myself as I researched on new developments
such as the auto- charging system which switches power automatically,”
Kaluya explains. He says the most difficult part making an inverter is building
a circuit, which regulates power supply.
While most inverter are designed to convert 12 volts Dc to 120 volts AC, Kaluya
says his units step it up to 240 volts Ac, providing more hours of lighting. In a
month, Kaluya gets about four orders for power inverter, mainly from friends
who need units for home use. This comes to an average of about sh2m turn
over.
Beating the Odds Born in 1970 in a family of five in Nawango, Kamuli District,
went to Nawasaso primary school before joining Bukoyo SS in Iganga for his O’
level, he failed to join A’ level due to financial appliances such as TV sets to
earn a living. After a good Samaritan noticed his skill, he recommended
Kaluya for a short course at St. Kizito vocational Training institute in Luweero
in 2004. He studied general electronics and while there, he worked on a part-
time basis as an apprentice (on- job trainee) with MM Electronics. By the time
he left the institute in 2006, he could repair electrical equipment such as
radios.
His first posting was at Top Radio as a technician before moving to Radio
Simba in 2007.
He says making inverter is his passion, although he can make solar panels too.
He made his first inverter in 2008 and has since upgraded to more
sophisticated units fitted with automatic charging system. Nearly all his
materials are obtained locally because he uses recycled discarded casings.
A born- again Christian. Kaluya attributes his modest success to hard work
and the hand of God.
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Challenges Kaluya says his biggest challenge is getting orders from people who
not pay upfront. This makes it difficult for him to earn a decent living from the
trade”. Sometimes people ask me to make in inverters and only pay half of the
sum. Yet I have to buy materials which cost a lot of money, “he says, his other
challenge is raising capital to product to produce inverters on a large scale. In
the future, he hopes to raise shs20m so he can ready units for sale. He also
lacks modern machinery or technology for making high quality inverters. Our
local people further have low confidence in locally produced goods prefer
imported ones which limits market expansion.
Prospects
Kaluya’s next project is making shs5m inverters, which is designed to support
six computers for five hours; he also plans to make inverters that can support
up to 12 computers for 12 hours during a shortage. Although most of these
clients are individually, Kaluya wants to start building units for small and
medium business. He reveals that his next project is big a power unit for
minister, whom declines to mention. The device will support up to 30 lights
over a 12 hour period alongside other appliances. In the long run, he hopes to
set up a training centre.
“My plan is to teach young people how to earn a living while impacting the lives
of many people who are struggling with unstable power supply ad load shedding,
“he says. Kaluya says Uganda needs to heavily invest in energy- saving
technology to increase access to power for more people for both home and
commercial uses.
Case study from the new vision, July 20th, 2012 (PAKASA COLUMN)
QUESTIONS
1. Under what type of information does Kaluya’s inverter innovation fall?
2. What challenges does Kaluya face in his business?
3. What impact was created by Kaluya’s innovation and how did it benefit
the community?
4. What factors caused Kaluya to develop his innovation?
5. Was Kaluya’s innovation caused by internal or external factors?
Exercise five
Case study: Making tiles from plastics
Musoke is a resident of Masindi District in western Uganda, with his low level
of education (primary five graduates) his working life has gone through a series
of manual jobs where he has been a wage earner. The challenges of paid
employment such as low payment which does not directly correspond with the
efforts he puts in his manual jobs and working under strict instructions with
out chance for personal creativity forced him to think of other ways of earning
a living.
Finally he came up with an idea of making titles from plastic. He collects used
and disposed off plastics from the environment and boils them until they are in
liquid state. He the mixes the other materials and then comes up with building
tiles.
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With this project Musoke has been able to employ some people of his
community who move around collecting the scarp or used plastic for money.
The building blocks or tiles have been useful in helping people of his
community to put permanent houses at a lower cost when considered with
imported tiles and other building materials. Recycling of the plastics has also
reduced the harm plastics causes to the environment inform of environmental
degradation because they do not get decomposed in the soil.
Musoke still faces some challenges in his business. The low level of confidence
of Ugandans in locally produced goods has limited expansion of demand for his
product through it is increasing slowly. The low quality of his plastic tiles as
they are not as fine as the imported has also done him no good. He needs
more capital to order for machinery and equipment that can help him to
increase production levels and quality of out puts
Case study questions.
1. What special entrepreneurial quality enabled Musoke to start his
project?
2. What are the benefits of this project to the community?
3. How does Musoke’s business help in preserving the natural
environment?
4. What society or market needs has Musoke’s business addressed?
5. What challenges doe Musoke face in his business?
6. What risks does Musoke face in his business?
7. What are some of the challenges a paid employment that forced.
8. Musoke to think of starting his own project?
Exercise six
Case study: Kagoma Aluminium Saucepana Ltd.
Kagoma Aluminium Saucepans Ltd makes aluminium saucepans of varying
sizes. The pans are sold in sets of 3 to 7 sizes. Each saucepan is formed in a
single stroke of a stamping press. A stamping press is a machine about 3m
high which can move a vertical piston through a stoke of about 70cm, exerting
many hundreds of kilograms of force per cm of area. For each saucepan, the
press operator centers a circular disc of aluminium of the proper diameter over
the hollow half of die. The formed pans are put through various disbursing,
cleaning and buffing operations before being stored temporarily until they are
made up into sets and placed in the warehouse. The owner, Mr. Kagoma
believes that in every process, except the stamping one, he can increase the
output by employing additional workers.
Equipment
The only equipment in the factory consists of four huge stamping presses.
The owner pointed out that presses 01, 02 and 03 are all of about the same
size, and smaller than press 04. “The three smaller presses are only able to
draw pans up to 23cm in size. These pans are all made from thin aluminum
DISCS. Press 04 cam handles any size of pan but is particularly useful for the
three largest sizes. Which uses thick aluminium, and therefore require more
pressure? Although the owner was unable to give an estimate of the standard
155
operating rate for the machines, he was happy to supply the record of the
previous Friday’s production record on our visit.
The records kept by four observes each of whom observed a different press for
30 minutes, are summarized in Exhibit 2 below. Labour in addition to four
press operators, the normal work force of the factory included 12 to 14 other
workers. They perform all other production processes, move raw material,
conduct work in process, and man the storeroom.
The owner directs all the workers. He treats the operator of press o4 (his most
experienced man), as a “lead” worker to oversee things when he is absent from
the factory floor. Each press operator make his/her own set- up changes at
intervals of a few hours, as the owner/ manager tries to keep his stocks in
balance.
Setting up an imaginative sale program, Ms Chichi succeeded in profitably

developing the company’s sales from shs2,000,000 per year from 1984 to 1966.
Because of the attractiveness of the profit margins to distributors of her
products, with wholesalers and retailers, she was able to expand her business
by opening factories in several regions.
Her enterprise grew to sh8,000,00 of sales with four factories, a national wide
distribution network, and approximately 200 employees.
Background Ms Chichi is 30 year old. She went through her secondary school
education. Upon completing in 1990, she joined university where she
graduated in 1999. She then joined her father as his financial controller and
accounts head. She now heads her father’s family business company growth.
Throughout the company’s growth stage. Ms Chichi found it difficult to
delegate authority, a key management function. When the enterprise was
small. Chichi made all financial decisions on new products, advertising,
pricing, sales plans and organization, hiring, operating budgets, production
plans, capital expenditures, purchases orders above shs100,000, credit given
to distributors and other matters.
Long before the company grew to its present size, the key functional managers,
Ms Chichi’s assistant, the business and factory manager and the sales
managers became frustrated by the bottlenecks in the owner/ manager’s office.
They finally approached an outside professional consultant who was close to
Ms Chichi and asked him to help solve the problem When the consultant
investigated the complaints, he found them to be justified. He also found Ms
Chichi to be receptive to the idea of delegation. She knew the principles of
delegation, and was aware of the importance of delegating. He came to the
conclusion that Ms Chichi’s unwillingness to delegate was due to a justifiable
fear of losing control over the enterprise’s operations.
Activity
1. Identify and comment on Ms Chichi management style.
2. Which functional areas did Ms Chichi attach importance?
3. What were Ms.Chichi’s goal?
4. Advise on Chichi production’s oriented organizational structure.
5. What was the labour force at the enterprise?
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Exercise seven
1. Case study:
My success story.
While I plucked maize grains, I kept looking for another job. Despite the
fact that I was miserable, I didn’t want to leave before getting another job. It
was then that I heard a one, Paul Mugabo was looking for a house help. I help.
I left plucking maize and took on the job.
After Mugabo sent me away, Mr. Emmanuel Ngarambe who owned cattle
in kayanja Army production farm. Fortunately, he was more than willing to
help me. He offered to pay me shs 1000 monthly to graze his cows.
I always admired being like Ngarambe. He seemed so comfortable. At
some point while alone, I would imitate him, dreaming and acting the boss. I
had accumulated sh6000, which I thought was enough. I used it to buy milk
and three jerry cans.
From August 1985 to November of 1986, I walked seven kilometers daily
from Kayanja to Hima in Kasese, peddling milk. I carried the big jerry can on
my head and the smaller ones in my hands. But never at one time, did I allow
my suffering to take a toll on me. I had a goal; to be better than Ngarambe and
a boss to others and I was not going to let anything stand on my way.
I started earning well from milk and because of that I saw a future in
selling milk. I then increasingly started worrying about how best I could use
my savings. That was when I bought a cow at shs500 and continued working.
When customers increased, I sold my cow for 700 and bought a bicycle. I used
the balance to buy more milk to meet the increasing demand.
I partnered with a friend but we disagreed and we had to go separate

ways. Around the same time, I lost my business assets to thieves.
In 1999, I took a risky decision; I withdrew all my savings from the bank
and used them to buy a 10tone truck. If anything had happened to that truck.
I used the truck to transport cement, maize and sugar from Kasese to Rwanda.
From the way things were going, I knew was on the right track. The market in
Rwanda was insatiable and that was to my benefit.
Questions
a) Identify the characteristics exhibited by the writer of the story as an
entrepreneur.
b) Discuss the principles of creativity portrayed by the writer.
c) What are the benefits that the write enjoyed as an own boss.
d) Give the advantages of using saving as a source of business capital
compared to borrowing from bank.
e) State any other (5) sources of business capital for business besides
savings and loans from the bank.
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Exercise eight
Case study: Effective personal selling process.
Mr. and Mrs. Baguma operate a food kiosk in Shauri Yako market, a long
Nakivubo Road, Kampala. There are many order food kiosk in the market and
the competition is very high.
Mr. and Mrs.Baguma have specialized in serving non- fried traditional dishes.
This means that they use high quality and value foods to prepare their dishes,
which must be in their original high quality form. They also sell traditional
drinks like milk and porridge and on weekends, one may chance to get a glass
of the local alcoholic porridge or beer.
While Mr. Baguma strategically stands outside his kiosk to welcome his
customers, Mrs. Baguma gives them seats, takes their orders and ensures that
the waiters and waitress serve the promptly.
After their meals, Mrs Bagum collects the payment, customers leave after
catching up with the latest news from different parts of Uganda, which Mr.
Baguma always has. A farewell and a comeback request from Mr. Baguma
always rings in the minds of the customers every time they think about lunch
while in Kampala.
The Baguma’s food kiosk is always full of happy eating customers. The
Bagumas know most of their customers by name, their favorite dishes and
drink. There is never a day when neither of the Bagumas is at the kiosk it only
happened once when they had lost their cousin and they went to the village for
the burial, leaving the kiosk in the care of the workers. On the two days they
were away. Their sales were very low and the neighbouring food kiosks cashed
in. Since then, at least one of them has to be around.
Owners of the neighbouring kiosks have a misconception that the Bagumas

use charms to attract and keep their customers and at times, they display their
jealously and hostility openly.
Case study Questions
1. What selling tactics and strategies do the Bagumas use in their
business?
2. Identify the promotion and advertising methods used by the Bagumas.
3. What advice would you give to Baguma’s competitors?
Exercise nine
Case study: Making tiles from plastics.
Musoke is a resident of Masindi District in Western Uganda. With his low level
of education (primary five graduate), his working life has gone through a series
of manual jobs where he has been a wage earner. The challenges of paid
employment such as low payment which doesn’t directly correspond with the
effort he puts in his manual jobs and working under strict instructions without
chance for personal creativity forced him to think of other ways of earning a
living.
158
Finally he came up with an idea of making tiles from plastics. He collects used
and disposed off plastics from the environment and then boils them until they
are in liquid state. He then mixes them with other materials and then comes
up with building tiles.
With this project Musoke has been able to employ some people of his
community who have around collecting the scarp or used plastics for money.
The building blocks or tiles have been useful in helping people of his
community to put permanent houses at a lower cost when considered with
imported tiles and other building materials. Recycling of the plastics has also
reduced the harm plastics cause to the environment in form of environmental
degradation because they don’t get decomposed in the soil.
Musoke still faces some challenges in his business. The low level of confidence
of Ugandans in locally produced goods has limited expansion of demand for his
products though it is increasing slowly. The low quality of his plastics tiles as
they are not as fine as the imported has also done no good. He needs more
capital to order for machinery equipment that can help him to increase
production levels and quality of output.
Case Study Question
1. What special entrepreneurial quality enabled Musoke to start this
project?
2. What are the benefits of this project to the community/
3. How does Musoke’s business help in preserving the natural
environment?
4. What society or market needs has Musoke’s business addressed?
5. What challenges does Musoke face in his business?
6. What risks does Musoke face in his business?
7. What are some of the challenges of paid employment that forced
Musoke to think of start his own project?
Exercise ten
Case Study: Kagoma Aluminium Saucepans Ltd.
Kagoma Aluminium Saucepans Ltd makes aluminum saucepans of varying
sizes. The pans are sold in sets of 3 to 7 sizes. Each saucepan is formed in a
single stroke of a stamping press. A stamping press is a machine about 3m
high which can move a vertical piston through a stroke of about 70cm, exerting
many hundreds of kilograms of force per 2cm of area. For each saucepan, the
press operator centers a circular disc of aluminium of the proper diameter over
the hollow half of die. The formed pans are put through various disbursing,
cleaning and buffing operations before being stored temporarily until they are
made up into sets and placed in the warehouse. The owner, Mr. Kagoma,
believes that in every process, except the stamping one, he can increase the
output by employing additional workers.
159
Equipment
The only equipment in the factory consists of four huge stamping presses. The
owner pointed out that presses 01, 02 and 03 are all of about the same size,
and smaller than press 04. “The three smaller presses are only able to draw
pans up to 23cm in size.
These pans are all made from thin aluminium discs. Press 04 can handle any
size of pan but is particularly useful for the three largest sizes, which use thick
aluminium, and therefore require more pressure, Although the owner was
unable to give an estimate of the standard operating rate for the machines, he
was happy to supply the record of the previous Friday’s production record on
our visit. The record kept by four observes each of whom observes a different
press for 30 minutes, are summarized in Exhibit 2 below.
Labour
In addition to four press operations, the normal workforce of the factory
included 12 to 14 other workers. They perform all other production processes,
move raw materials, conduct work in process, and man the storeroom. The
owner directs all the workers. He treats the operators of press 04 (his most
experienced man), as a “lead” worker to oversee things when he is absent from
a factory floor. Each press operator makes his/her own set-up changes at
intervals of a few hours, as the owner/ manager tries to keep his stocks in
balance.
Marketing
The owner could only guess about the total size of the market for saucepans.
He said, “We have operated hand- to- mouth for three months. Since I took
over, I have tried to catch up with demand.
I believe that the former owners produced a total of 15,000 sets in the last full
year of operation. Apparently, those sales consisted of about 11,000 of set
01,3,000 of set 02, and 1,000 of set 03.
The demand still seems to run in about those proportions, but I suspect that
sales might reach 20,000 sets annually if we can supply that many”.
Raw materials
Saucepans are a basic necessity of life. The company has been allowed to
import as many aluminium discs as they can process.
It is these imported discs that are being used. According to the owner, locally
made aluminium discs are available substantially lower prices than the
imported discs. The local supplier makes his discs from reprocessed scrap
aluminium. (see Exhibit 3 for raw material and scrap prices). The owner said
that he did not like to use the local discs, because scrap rates are around 50%
of local aluminium. But, the material tends to catch and tear in the presses
rather than drawing smoothly into the pan shape.
They have continued to experiment with local aluminium case imports
suddenly become unavailable.
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Exhibit 1: Production for the previous Friday
Hours Presses
01 02 03 04
8.00 – 400 (15cm) 360 (17cm) 320 (19cm) 160
10.00 (25cm)
10.00 - Coffee/Break
10.30
12.30 - Set-up 360 (17cm) 320 (19cm) Set up
1;30
LUNCH HOUR CHANGE
1.30 -3.00 200 (21cm) Set-up 200(19cm) 60(37cm)
3.00-3.30 Tea Break
3.30-5.00 200(21cm) 180(23cm) Set-up 60(37cm)
Total Daily Production by Size

13cm 400 23cm 180
17cm 720 25cm 160
19cm 880 31cm 0
21cm 400 37cm 120
Exhibit 2: Presses in Operation

1 2 3 4 5 6 Scrap
01(21cm) 13 12 17 2 18 10 7 Units
02(23cm) 10 9 11 12 8 10 5 Units
03(15cm) 0 0 20 22 18 24 2 Units
04(37cm) 3 2 0 0 4 4 3 Units
Total all 2,8602
sizes
Note:
 Worker paused for a short break.
 Press set-up still being changed.
 Press stopped for adjustment of due.
Exhibit 3: Raw material prices, July (2011)
15cm 4,400 2,500 1,500

17cm 5,700 3,250 1,950
19cm 7,100 4,050 2,400
21cm 8,600 4,900 2,950
23cm 10,200 5,800 3,500
25cm 18,400 10,500 6,300
31cm 28,300 16,150 9,700
37cm 400/300 23,00 13,800
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Questions
1. How many saucepans could be made in 1 week (05 working days)?
2. What was the main raw material and what was its main source?
3. Provide a brief description of the production process and facility
layout.
4. Describe the manufacturing processes and production plan layout.
5. What was the market/ demand for the company product(s)? How was
this verified?
6. In what ways is the imported raw material superior to local ones?
Exercise eleven
Case Study: Operating A Hardware Store.
Ahmed purchased a hardware store about six months ago. He has been
curious because his profits have not been as high as the previous owner claims
his were. Ahmed decided to check things out so he took a physical inventory
and discovered a shortage of about shs125,000. He feels that much of the loss
is in auto accessories and small tools, but is not sure because he does not
break sales out by department.
Ahmed has two full time employees and a part-time high school student. He
does all the ordering himself but relies on the part-time worker to check in the
merchandise and apply the price to stickers. He often works the floor but
seldom rings up the actual sales as one of the full time employees is always at
the register.
Exercise
1. What are the possible explanations for the inventory shortage?
2. What can Ahmed do to discover where his merchandise is going?
3. What controls can Ahmed initiate to make sure that the losses do not
continue?
Exercise twelve
Case Study: Chichi Production Ltd.
Ms. Chichi inherited from her father a small household goods manufacturing
enterprise. Through her extraordinary talent in setting up an imaginative sales
program, Ms Chichi succeeded in profitably developing the company’s sales
from shs200,000 to shs2,000,000 per year from 1984 to 1966. Because o the
attractiveness of the profit margins to distributions of her products, with,
wholesalers and retailers, she was able to expand her business by opening
factories in several regions. Her enterprise grew to shs8,000,000 of sales with
four factories, a national wide distribution network, and approximately 200
employees.
Background
Ms Chichi is 30 years old. She went through her secondary school education.
Upon completing in 1990, she joined university where she graduated in 1999.
She then joined her father as his financial controller and accounts head. She
now heads her father’s family business.
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Company growth
Throughout the company’s growth stage, Ms Chichi found it difficult to
delegate authority, a key management functions. When the enterprise was
small, Chichi made all financial decisions on new products, advertising,
pricing, sales plans and organization, hiring, operating budgets, production
plans, capital expenditures, purchase orders above shs100,000, credit given to
distributors and other matters.
Long before the company grew its present size, the key functional managers,
Ms Chichi’s assistant, the business and factory manager and the sales
managers became frustrated by the bottlenecks in the owner/ manager’s office.
They finally approached an outside professional consultant who was close to
Ms Chichi and asked him to help solve the problem. When the consultant
investigated their complaints, he found them to be justified. He also found Ms
Chichi to be receptive to the idea of delegation. She knew the principles of
delegation, and was aware of the importance of delegating. He came to thee
conclusion that Ms Chichi unwillingness to delegate was due to a justifiable
fear of losing control over the enterprise’s operations.
Exercise
1. How many saucepans could be made in 1 week (5 working days)?
2. What was the main raw material and what was its main source?
3. Provide a brief description of the production process and facility
layout.
4. Describe the manufacturing processes and production plan layout.
5. What was the market/demand for the company product (s)? How was
this verified?
6. In what ways are the imported raw materials superior to local ones?
Exercise thirteen
Case study
A power woman entrepreneur
From scratch, Adyeri now collects 2,500 trays daily, employs 450.
Counting egg trays with her accountant and the farm veterinary officer, every
five minutes Julian Adyeri Omalla looks on as workers walk into the two store
rooms of about 10ft by 15ft with half dozen trays. Make sure that each carton
contains 40 trays of eggs. Each box should be well packed and sealed to
prevent the eggs from getting damaged while in transit to Southern Sudan.
Adyeri, the managing director, Senge and Kidefa Poultry Farms tells her
employer.
She then continues to check on the layers in one of the poultry storied
structure (cage) south of the 20 acre farmland rooms with one of the farm
managers.
As Adyeri, also proprietor of Delight Uganda Limited (manufacturers of Cheers
drink), examine the layers dropping at the entrance, she reveals that about
four factors drove her to take up agriculture and agro- processing. The 13%
exorbitant excise duty tax, the current sky- rocking dollar exchange rate, and
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increase in cheap substandard soft drinks, business diversification and poverty
among women.
It is why I am scaling down on juice (Cheers) processing to farming. You

cannot complete with dealers in juice on the black market. They evade taxes.
This has led to low sales. Adyeri explains:
Adyeri began working for her brothers, while she saved to start her own
business as a small trader. She wanted to prove that even women could
manage business. On top of having a certificate in food science, she had been
taught how to process local fruit by her mother. So she had the technical
background. Adyeri was, however, so aggressive that she took advantage of the
gap in the market.
But memories of how she nearly lost everything 13 years ago are still fresh in
her mind. Her business partner disappeared with the money she had given
him to purchase stock. She remained with only a wheelbarrow to take fruit to
the market and a red dress she wore during day and washed at night.
Adyeri started all over again, pushing fruits in her wheelbarrow to the market
and saving the proceeds. Soon she had saved enough money to travel to Kenya
to buy other goods. I would take the overnight bus and stand all the way in
order to get a 50% fare discount. My aim was to start a commercial juice
processing factory, not a small one, she narrates. Total strength of the mind to
succeed kept Adyeri going. Production began when she managed to save
sh200,000 from her business trips to Kenya.
Adyeri took her products for testing to the Government chemist at Wandegeya
by foot because she could not afford the fares. My only means of transport was
my wheelbarrow. The local market responded positively to my products and I
could see my dream coming true, she explains. Adyeri also registered and
licensed her business. She remembers how cumbersome and complex the
exercise was at visiting numerous offices, asking her for unclear requirements
and paying a high fee of shs500,000 to the lawyer.
Currently Adyeri owns one of the largest juice processing factories (Delight
Uganda) in the country with an annual turn over of shs8bn. Because of the
experience she went through when her friend vanished with all her money.
Adyeri has leant not to keep her eggs in one basket.
Once she felt her juice operation was running smoothly, Adyeri considered
diversifying to agriculture. But funds for expansion became a major obstacle.
The financial institutions always wanted collateral which few women have in
Uganda. And under the customary law, women in Uganda do not inherit land,
so it was only through saving and retained earnings that I could finance
business expansion, she asserts, Adyeri adds,
Farming beyond fruit processing seemed a good business prospect and would
involve rural women to use their land to grow crops especially millet and maize
for a poultry project. I envisaged that this would make me avoid sourcing for
big capital, says Adyeri.
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With over roof male members of Bunyoro Grain Farmers Association through
their membership of women cooperatives, Tili and fee the National. Adyeri took
on large scale commercial poultry farming in Senge. Wakiso, Kidefa and Tororo
districts.
The women groups are based in Kyangwali and Balwanya in Hoima and Kibale
districts. The Uganda women Entrepreneurship 2004 award compelled her to
help uplift fellow women economically. Adyeri coordinates the grain sales for
the cooperative societies and created her own processing and packing
operation called Global Food Securities the flour porridge products are packed
in 5kg, 25kg and 50kg packs under the brand name of Mummy choice. She
also makes her own poultry feds.
The products are exported to Tanzania, Southern Sudan, Democratic Republic
of Congo and Rwanda. In Uganda, they are distributed on order, soon we shall
unveil Soya and rice products on the market, Adyeri reveals.
Adyeri is among the first Uganda business people to take advantages of the
Southern Sudan market after the war; about 50% of her exports find their way
to the country. The senge of Farm bite A in Wakiso district is located on 20
acre piece of land. It started in 2006 while the Kidefa Demostration Farm in
Tororo, at Farm B was started in 2004, Currently, Farm A(Seng/Farmbite) and
Farm B (Kidefa) have 40,000 Essex Brown layers and cocks respectively at says
Emmanuel Balikigira, the farm veterinary manager.
Each farm at present products about 550 trays of eggs a day. About 50% of
the young ones will start laying eggs in February, Adyeri‘s target in the first
half of this year is to have about.
Answer the following questions
Questions
a) Show how workers were motivated.
b) Explain the packaging materials done by the business in the case study
above.
c) Explain the trends done by the Entrepreneur to make a personal brand.
d) Explain reasons the business may need to use stock exchange.
e) Discuss the impacts of taxes;
i) on the business.
ii) to the community.
iii) Estimate and show.
a) Total expenses of the business.
b) Accounting records of the business.
a) Show how innovation was paramount.
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Exercise fourteen
Case study
Nice Bread Bakery – Kasubi
The Nice Bread Bakery Kasubi owned run by Kiria. This lady started making
bread a very small scale for domestic purposes for her family and close
relatives. Her bread appreciated and everyone encouraged her to set up a
business. After sometime, she decides she would need some proper experience
and training. So she went for a course in catering where she learnt many
useful baking skills, including food hygiene. As soon as her training was
finished she started making bread as a business. That was five years ago and
her business has grown nicely since that time.
Looking back over her time in business she remembers how hard it was to get
started. It was very costly to construct a bakery. She needed suitable bricks to
make an oven and had to borrow money wherever she could. The next big
challenge was getting her first customers.
Few people came to her at first, but gradually the word spread, Customers told
their friend that Kiria was making “nice bread” at a good price, which is why
she decided to call her bakery “Nice Bread”.
It took determination to proceed with the activity, especially considering how

little capital she had at the time. Today she has many regular customers. So
she is very happy with the way her business is running at present. Managing
her own business has changed her life. There area number of benefits from
being in business.
 Her business gives her a good living. It provides the money to pay for her
children to go to school and to buy them the necessary scholastic
materials.
 She makes an important contribution to the family income to meet the
basic necessities of life for her family members.
 Kiria likes her business. She enjoys responding to the challenges that
come along. Being in charge she can take quick action when change is
needed. She finds decision making easy as there is no need for her to
have long consultations. She is her own boss!
 She is proud of the fact that she is now an entrepreneur and that she
has created jobs for the growing number of people who help her.
The training course she took at the beginning was vital to her success. It was
through this training that she was able to make the quality products that her
customers expect. This has also helped her to expand her market. As well as
selling direct to customers from her bakery.
She also supplies retail shops, schools, canteens and other premises over a
growing area. The growth of the business has come naturally by word of
mouth. She has done little actual advertising.
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The main costs of Nice Bread Bakery are: buying wheat, oils, yeasts, oils,
firewood, transport costs and paying the wages of her employees.
The main problems she faces are; competition from bigger bakery companies
such as family loaf, Hot loaf, and Ntake Bakery, lack of experience and training
by new workers means that she has to spend more time with new people than
she would like. Other things that worry her are; delayed payments by some of
her bigger trade customers, the theft of some of her stock by untrustworthy
employees and unexpected increases in the prices of ingredients, such as
wheat and oils. She tries to overcome these problems by: encouraging
customers to pay in cash, employing family members, choosing other
employees carefully and treating them well so they become loyal to the
business.
When asked “How are you going to compete effectively with the big companies
in future”?
She has to pause to think, Kiria believes that she always be able to compete on
quality. But she also realizes that she may need to grow the business and find
ways to diversity. She is about to carry out market research to see whether
there is a market for sandwiches for workers and buffets for special meeting
and events in large companies. If successful the business could expand
greatly.
Industry facts
The Bakery Industry
The bakery industry is important in Uganda. Bread is a staple part of the diet
for many people, and as living standards grow, more and more people are
buying cakes. Bakery products are usually made from imported wheat, and
fluctuations in raw material prices can be a problem.
Another challenge is that the products have a very short “shelf- life”. Bread
only keeps well for a day or two, after that it goes stale. If bakers misjudge the
market and make more bread than they can sell, then they waste money. If a
small baker has regular customers it is easier to plan production.
In recent years it has become harder for small bakers to survive. Many people
in the towns buy bread from supermarkets, who from factory bakeries. These
large enterprises produce huge quantities of bread every day. The cost of each
loaf they produce is low due to the economies of large- scale production. This
means they can sell at low prices, which undercut the prices charged in small
bakers’ shops. The problem is that one loaf of bread is very much like another,
so shoppers don’t mind which one they buy. Although they might prefer a
fresh hot from a local bakery if they can get there at the right time.
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Questions
1. Define the following words and phrases and say why they are important
to this business
a) Small scale
b) Food hygiene
c) Capital
d) Market
e) Selling direct
f) Advertising
g) Competition
h) Grow the business
i) Diversity
2. Give a business description of “Nice Bread Bakery”.
3. Describe the range of the bakery’s market.
4. Explain how the business has grown during its first 5 years.
5. How might the type of growth change in future? Why is the change
necessary?
6. What is the meaning of the following words and phrases?
a) Staple part of diet
b) Living standards
c) Fluctuations in prices.
d) Short “shelf- life”
7. What is meant by “economies of large –scale production”? Give
examples of why” might be better to make things on a large scale.
Exercise Fifteen
Case study
S.2 Drop-out flourish in irish potato seed multiplication project.
The 1979 Liberation war led by the Tanzanian peoples Defence Forces (TPDF)
and some Ugandans in exile, made Alex Onen 57 years cut short his education
pursuit at Gulu Bright commercial College and returned to his village at Namia
Uppr, Pajur parish, Erussi sub-county, Nebbi district for safety.
Onen, who stopped in S.1, returned straight to start farming on their land
located at the Uganda- Democratic of Congo (DRC), started with planning the
traditional crops of beans, cassava and tomatoes for sale in the local markets
in Erusi, Nebii and DRC to raise money to sustain his family.
Onen said he started engaging in serious commercial agriculture with the

growing of Irish potatoes for seed multiplication which he sells to other farmers
for more production in Erusi sub- County and Nebbi district in general.
He said later he registered his project with the National Agriculture Advisory
Services (NAADS) as Erusi sub-county Irish potato seed project, Nebbi district
local Government but with the village name of “Can Pojuju Project” loosely
meaning “Poverty Gives People Wisdom”.
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The school drop-out, who said he was born in 1959 in the same village to Mr.
Alex Okwonga and Mrs. Angellina Pacutho, reveals that he has three wives in
the names of Nazarina Ojiga, Janet Atimango and Janet Ocima which resulted
to the production of 21 children but with others from outside marriage.
He noted that Ojiga has four children, Atimango has three and Ocima has one
child. He observed that out of the 21 children, six are already married (three
boys and three girls). Onen said out of the remaining children, two are in
secondary school and six are in primary school, whose school fees he pays
using the money raised from Irish growing.
Onen quipped that he separated with the mothers of some of the children and
he is also looking after some of his siblings.
He said after registering with NAADS, the officials from Nebbi district gave
them conditions of forming a group if we wanted to benefit the government
program.
“So, we decided to form our group of 16 members who were later sensitized and
trained in modern agriculture in all aspects but most importantly Irish growing
for seed multiplication since it was the project we selected under NAADS
program in the area, Onen stressed.
He applauded the NAADS for selecting their group in 2006 for a tour in the
western region districts of Kabale and Kisoro for an exchange study visit on
how our colleagues in the region were growing Irish for commercial purpose.
“After our exchange study tour in western region, Nebbi district local
government NAADS officials distributed for us seeds for planting during that
season. So, we used three quarter acreage of land to plant our seeds which
later yield 15 basins of Irish potatoes for more seed multiplication after
harvest, “Onen bragged.
“Since, we were 16 members; we resolved to re- plant these 15 basins of seeds

to get more seed for the group. This later yield 74 basins of seeds.
At this point in time, we in 2007 decided among ourselves to distribute these

seeds to over members, so that each member can cultivate on his/her own,
leading to the disbanding of the group because the project could not move
faster as expected due to the different ideologies, Onen lamented.
Onen, who was now operating on his own, opened two and half acreage of land
for his multiplication of the Irish potatoes seeds in 2007 which resulted in
harvesting of 200 basins.
Now, in 2012, Onen expects to harvest 400 basins which will fetch him about
shs11milion all sold at once.
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“The lest amount of money I get because of market problems is between
shs1million to shs3 million because most of the produce is bought by middle
business people who give you tough conditions if you want to sell by setting
their own price tag,” Ocen cried.
Onen said the money he gets from the projects is used for paying school fees
for the children and siblings, buy medicine for spraying the crops against
diseases, acquisition of more land for expansion of the project, pay worker
(Laborers), bought a motorcycle to ease transport and has constructed a
modern permanent residential house in order to live a decent life in the village.
Challenges
Onen noted the challenges facing him were enormous ranging from treatment
of the seeds climate changes which affects the quality and yield of the seed
especially when there is to much rain or total dry season, difficulty in the
transportation of the produce (seeds) to the wider markets for the farmers to
access in both Uganda and DR. Congo.
He said these conditions have made him to sell the seeds to second- hand
buyers at cheaper price because there is no options out.
Plans
Onen said he is looking forward to diversify his agriculture programs by
bringing on board the rearing/ keeping of animals especially goats and other
commercial crops if NAADS continue to support their efforts in order to expand
his project in future as a way of lighting poverty and raising household income.
Appeal to government;
Onen urged the government to establish skill training centers for agricultural
farmers in the communities in order to improve farming methods by planting
the good quality crops from improved seeds and rearing of highbred animals
like bring on board Boer goats from South Africa.
“I call up on the government to encourage agro-processing and market

diversification, developing appropriate skills and facilitating the private sector
as an engine of growth.
He also appealed to the government to assist them (farmers) especially those

who are prospering in the agriculture sector with some soft loans for expansion
and provision or supply of transport facilities like trucks which could be paid
in installments over a period of time.
If that is achieved, the produce/products could reach the markets both within
Uganda and the neighbouring countries very fast enough.
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Answer the following Questions
a) Discuss economic hardship forced one to start planting crops or
practicing agriculture.
b) Suggest ways market affected Mr. Onen’s output.
c) Mention any;
i) Five support organization that supported Onen.
ii) Any six business laws that where observed by Onen Alex.
d) Identify any;
i) Five challenges that one was facing.
ii) Suggestions to overcome challenges.
e) How can Onen cope up with change?
Exercise sixteen
Case study
People don’t quit jobs, they leave bad bosses
(Adapted from the New vision, Monday July, 30 th 2012- Focus on Human
Resource)
Many reasons have been given for employee turnover. Personality issues, an
unchallenging work environment, insufficient employee pay and benefits, poor
management and work stress are only a few.
I have worked with numerous companies that have or had employee retention
issues without any real understanding as to why they cannot seem to keep
good employees. Most of the reasons have something poor managers. Here are
some management issues that can lead to staff leaving.
Heavy workload: Demanding that one person does the job of two or more
people, resulting in longer days and weekend work. This kills morale not only
for the person but for the team.
Constant changes: constantly re-organizing, shuffling people around and

changing direction leaves staff unhappy. Therefore, employees do not know
what is going on, what the priorities are and what they should be doing.
Poor communication: Not taking the time to clarity their decisions to staff
members. For example, supervisors rejecting work after it is completed which
lowers the morale and esteem of those who prepaid it.
Unfair promotion: If management alienates staff by promoting someone who

lacks training and/ or the necessary experience to supervise, it causes other
employees to feel that favoritism is at play. So, why stay?
No ownership: when management does not allow the rank and file to make
decisions about their work employees see it as only a job rather than
developing enthusiasm and pride or ownership.
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Useless competition: promoting departmental competition while preaching
team work and cooperation kills morale. Therefore, employees become cynical.
Pointing fingers: when managers throw temper tantrums, point finger and
assign blame when things go wrong employees will leave.
Therefore employees do not want to be at the other end of the barrage of

negatively. Business and human service leaders everywhere understanding the
important of reducing turnover, Clearly, turnover is an expense as well as a
threat to the maintenance of quality products and services.
Do not just accept it as cost of doing business. Put your battle plan together
now and identify the action steps that you can take tomorrow. It is not too
late, but you need to get moving. Part of you plan might involve spending some
money to provide staff training or a re-decorate interior workspace. It will cost
money, but the cost will be very small in comparison to what you will
experience if you are overtaken by the drain of talent and experience from your
organization.
Answer the following Questions

a) Explain causes of labour turnover.
b) What causes people to leave work?
c) Explain ways of promoting labour productivity.
d) Suggest ways of reducing labour turnover in an Enterprise.
e) What makes business successful?
Exercise seventeen
Case study
Goat keeping: Ssembaguya’s success has inspired his community.
A visit to Paul Ssembaguya’s farm in Sembabule District best proves why he is

well-known in the area. Ssembaguya rears over 2,500 goats and 1,800 exotic
cattle on his farm.
He has distributed thousands of goats to farmers across the Masaka sub-

region and hopes to give out at least 54,000 more in the coming few years.
Ssembaguya’s love for livestock dates far back to the 90s, when he returned
from Britain. He had lived in Britain since he completed his Senior Six.
“By that time, I had done a lot of research on livestock and I was confident that
investing in the sector was a lucrative venture”, he narrated.
Ssembaguya says he started with only 50 local goats and 70 head of local
cattle.
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He later crossbred his goats with pure Savannah and Boer goats from South
Africa and eventually got better breed.
Basing on his success, the National Agricultural Advisory Services (NAADS)

program partnered with him in 2006 to provide improved goats to farmers in
the district.
The first phrase of the partnership kicked off with the NAADS secretariat
supporting the program with over shs200m. Ssembaguya provided 410 goats
and 15 shelters to 15 groups in Lwemiyaga, Mijwala and Sembabule town
councils.
The second phase was implemented in the 2008/9 financial year and it also
cost shs200m. Ssembaguya provide 312 goats and 12 shelters to another 12
groups in Ntuusi, Lwemiyaga and Lugusulu sub-countries.
Multi-billion project.
Ssembaguya was agin, in 2009, identified to run a five- year multi- billion goat
breeding project in Sembabule District.
Under the shs6.4b project running until 2013, Ssembaguya was tasked to
distribute 54,00 local goats to 108 farmers in Sembabule District. He gave an
additional 350 pure savannah goats as his contribution at a cost of sh700m.
“We want to raise quite a good number of white Savannah goats because our
target market is the Arab world”, says Ssembaguya, the proprietor of
Ssembaguya Estates.
With the funding from the Government, he has managed to distribute 17,20
female local goats and 108 savannah goats to all the beneficiary farmers.
A total of 4,515 offspring have so far been registered with 1,443 as pure white
breed, while 2,293 offspring represent other breeds. A total of 779 offspring
have so far been sold off to other beneficiaries.
“This is a good trend and I think I have achieved my overall dream of creating
more ‘Ssembaguyas’ in the district as directed by president Yoweri Museveni,
he explained.
“I think the best thing in life is being a poor man among 1,000 rich people
instead the only rich among 1,000 poor people,” he adds.
Ssembaguya explains that before goats are distributed, they are branded,
treated, sprayed, de-wormed and vaccinated against paste des petits
ruminants, s highly contagious disease among the goats.
To acknowledge receipt of the goats, delivery agreements are signed between

the two parties.
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Ssembaguya says, for a farmer to benefit from the scheme, they have to have
enough grazing land and basic knowledge about goat rearing.
“Once we assess and find out that a farmer has the above requirements, we
proceed to support that farmer with the goats,” he notes.
Cooperative society
For easy marketing of their goats, farmers in the area have registered a
cooperative society- Sembabule Goat Breeders and exporters Cooperative
Society. The best farmers under the project are also to be rewarded annually.
This year, the best five farmers received 20 iron sheets each.
Next year, two farmers will be rewarded with two motorcycles and in the final
year, a new pickup truck will be given out to the overall best farmer.
Achievements
Ssembaguya is quick to call the project and as a great success.
“I am also a progressive commercial farmer with undying desires to develop
animal husbandry”, he says.
Ssembaguya attributes his success to working with people and employing

veterinary doctors, who keep his livestock healthy.
“It is important for one in business to avoid being an island. Employ technical
people, tell them what you want and treats them like human beings. They are
not doing you a favour neither do you do them a favour by employing them,” he
advises.
In 2006, Ssembaguya Estates Uganda Limited was nominated by the Uganda
investment Authority as the investor of the year (diaspora category).
Owing to the success of this business, President Museveni paid Ssembaguya a

visit farm in Ssembabule District.
“I didn’t know he was in search of goats to export to the Arab world. He fell in
love with what he saw as he toured my farm,” notes Ssembaguya. Apparently,
the president’s advisors had told him that it was impossible to rear savanna
goats in Uganda. Bit I was a living testimony in the district”.
Challenges
The district veterinary officer, Dr. Angello Ssali, however, noted that despite the
different interventions, the Enterprise is still constrained by rampant goat
disease like helminthiasis, brucellosis, heart water, kid diarrhea and of late,
dermatomycosis.
“There is also indiscriminate breeding, high theft rates of goats and inadequate
water resources”, he explained.
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Answer the following questions
a) Discuss factors favoured establishment of a multi-billion business by
Ssembaguya.
b) Estimate;
i) Fixed capital.
ii) Working capital of Ssembaguya.
c) What are the sources of funds for Ssembaguya.
d) Outline factors favoured the easy or greater multiplication of goats.
e) Identify any five business opportunities identified by Ssembaguya to
boost the goat farming.
f) It is important for one to avoid becoming an island, Employ technical
people, and tell them what you want and treat them like human being,
they are not doing you a favour neither do you do them a favour by
employing them he advises. Justify the statement.
g) With examples from the case study, mention challenges that face Goat
Rearing in Uganda
A SAMPLE OF SET PAPERS

SET ONE
Section A: Case study
Answer all parts of this Section.
Answer all parts of this question.
Maliya owns and operates MALI hardware shop strategically located in Mukono
municipality. It is well stocked with plumbing materials, electrical equipment
and general hardware tools.
Maliya employs a cashier, two sales assistants, two casual labourers and two
security guards. The workers are promptly paid their monthly salary and are
provided with lunch, transport and medical allowance. Maliya supervises the
workers, orders and receives materials and authorises payment. She conducts
weekly stock-taking, keeps valuable business documents in a safe, monitors
the flow of stock, determines the re-order level and lead time, and holds weekly
meetings with workers.
Maliya ensures that customers are satisfactorily served. Regular customers
receive credit and sometimes have their products delivered to their premises.
As a result of constant advertising, the hardware has also attracted schools,
churches and hospitals as its customers.
Given that MALI hardware shop deals with many cash transactions, physical
security systems have been put in place. Any cash beyond one million shillings
is banked. There are plans to insure the business.
Due to the high profits enjoyed by MALI hardware shop, new entrepreneurs
from the area have invested in similar businesses.
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Questions
a) How are the workers of MALI hardware shop motivated?
(04marks)
b) Mention the management tasks performed by Maliya in the
business. (03 marks}
c) Identify the measures taken by Maliya to control inventory in the
business. (04 marks]
d) Explain the marketing strategies used in MALI hardware shop. (06
marks)
e) Giving reasons for your answer, advise Maliya on the insurance
policies that should be taken for the business. (04
marks]
f) Why may MALI hardware shop be able to survive despite the
competition from the new hardware shops in the area?
SECTION B: SCHOOL
BUSINESS CLUB
2. With reference to the School Business Project owned and operated by
your Entrepreneurship Club;
a) Describe the business project. (05 marks)
b) Explain the measures that were taken to ensure proper cash
management. (06 marks)
c) Describe the techniques which were used to promote sales. (06 marks}
d) (i) What risks were faced by the business? (04 marks)
(ii) Outline the precautions that were taken to minimize the risks
mentioned in 2d(i) above. (04 marks)
3. In relation to the School Business Club Project in which you
participated;
a) Give the goals of the project. (04 marks)
b) State the measures that were adopted to maximize profits. (04 marks)
c) Describe the marketing plan which was used by the business. (06 marks)
d) Explain the measures that were taken to ensure proper management of
inventory. (06 marks)
e) What strategies were used to maintain a large market share amidst
competition? (05 marks)
SECTION C:
FIELD ATTACHMENT EIELD TRIP
a) Describe the nature of the business. (05 marks)
b) (i) name any two tools /equipment used in the business.(02
marks)
(ii) State the purpose of each of the equipment /tools named in b(i)
above. (02 marks)
c) Explain the methods the business uses to manage its credit sales. (06 marks)
d) What measures does the business use to ensure discipline of its employees?
(05 marks)
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e) Outline the indicators of time wastage in the business. (05 marks)-
5. For any one business trip you have made as an individual or group;
a) State the objectives of the field trip. (03 marks)
b) Describe the lay-out of the business.
c) (i) What challenges are faced by the business?(04 marks} (04 marks)
(ii) Recommend to the entrepreneur, the ways of handling the challenges
mentioned in c(i) above. (04 marks}
d) Explain the measures used by the business to ensure satisfaction of its
customers. (05 marks)
e) Outline the factors the business considers when recruiting its employees.
(05 marks)
Set two
1. Read the case study of Abbas mixed farm and answer the questions
that follow.
Abbas Kiwalata bought a poorly - performing mixed farm from Mr.
Lubengo who had made losses for the past three years and had accumulated
many debts. He renamed the farm New Hope Mixed Farm. Through research,
he discovered that the farm had failed to recover many debts and had generally
been mismanaged. Abbas obtained helpful advice from various sources like
veterinary experts, successful mixed farmers among others. His curiosity for
more knowledge took him into agricultural trade shows. He watched television
programs on farming and also read Pakasa articles in the news papers.
Every day, he could sit alone meditating upon various ways to improve
the farm while noting down every constructive idea that came into his mind.
Despite all the challenges, the farm faced, Abbas was determined to revive and
resuscitate the farm. He planned and restocked the farm animals. Through
extensive research, he discovered that there was high demand for rice and
beans in many educational institutions.
His farm acted by taking up the production of rice and beans thereby
increasing the output of the two crops. He also encouraged his workers to
believe that the farm could improve even beyond. Through his weekly meetings
with his workers, which have enabled them together to brainstorm on positive
ways forward, he has built a good relationship with them all. The farm has
recruited a very hardworking farm manager in Joe, who has vigorously
implemented new policies. In addition to that, it has intensified advertising of
its products as well as maintaining regular communications with the old and
new customers. Today, the customer base has increased from 150 to
approximately 500 every month. This has increased the total monthly sales
from Shs. 2 million to Shs. 30 million.
Abbas believes in healthy competition. His present goal, which is now a
regular point of discussion in his meetings with employees, is to ensure good
business ethics in handling his competitors; he has kept reminding them of the
positive changes so far registered and expected. Indeed, the new rules that
were set to improve the farm have not only motivated the employees but also
encouraged them to do their best always. Though an arsonist later set part of
the farm buildings on fire, Abbas had already insured the farm against fire. He
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kept remarking; “No barrier shall stop me from becoming the best example in
this community.”1.
a) Describe how Abbas has managed to overcome competition.(04 marks)
b) Mention the marketing techniques used by Abbas. (05 marks)
c) Advise the proprietor on how to sustain the business. (04 marks)
d) Explain the challenges faced by Abbas (06 marks)
e) Mention the potential customers of New Hope Mixed Farm.(04 marks)
f) Give reasons why the business was a good business opportunity for
Abbas.
SECTION B
(Answer at least one question from this Section)
2. With reference to the School Business project owned and operated by your
Entrepreneurship club;
a) Describe the business project carried out. (04marks)
b) i. Mention the daily activities of your club (04 marks)
(ii) Describe the procedures you followed when purchasing your inputs
and equipments. (06 marks)
c) Identify the tools you used to monitor your club. (06 marks)
d) Show how quality was maintained. (05 marks)
3. In relation to the School Business Club project in which you participated:
a) State vision and mission of the project. (05 marks)
b) Explain ways being used by the club to minimize loss of business funds.
(06 marks;
c) How did you handle difficult customers?(04 marks}
d) Describe the production plan which was used by the business.(06 marks)
e) Show how source documents were effective to your club. (04 marks)
SECTION C
FIELD ATTACHMENT
(Answer at least one question from this Section,)
For any business enterprise you were attached to:
a) Describe the nature of the business. (05 marks)
b) i. Mention the internal communication media used by the business.
(02 marks)
ii. How effective were they? (02 marks)
c) How were workers motivated? (06 marks)
d) Explain methods used to reduce costs of production. (05 marks)
e) Outline steps followed by the business when receiving supplies or materials.
(04 marks)
5. For any one business trip you have made as a group or an individual.
a) i. State the objectives of the trip. (04 marks)
(ii) Describe the business visited. (04 marks)
b) i. State the customers of the business visited. (04 marks)
ii. Outline any four factors considered by the business visited when assessing
market. (04 marks)
c) Explain how the workplace was managed. (05 marks)
d) Mention the marketing cost of business you visited. (04 marks)
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Set three
Q 1. Read the case study below and answer the questions that follow;
Located in Wandegeya, Kampala, Uganda is Vian Fast Foods and Snacks
specializing in producing high quality snacks and packaging them for sale all
the time. The business was established by Valentino Terego to offer with smile,
classic snacks to the growing university/ campus population and the
surrounding areas as well as serve the ever increasing market of urban
professionals who enjoy eating more adventurous high quality specialty fast
foods and snacks purchased on monthly basis.
In order to reach out and support its customers the business products
are advertised and promoted through sponsorship of snacks preparation show
on NTV, a website awareness and distribution of flyers in hostels and halls of
residence
Being a sole trader, Valentino Terego has managed to recruit a graduate
of Business Administration as general manager and a graduate of Food Science
and Technology as an operations manager with few other workers, whom he
motivates well, trains, appraises and gives them clear instructions.
To add strategic advice and direction he has assembled a board of directors

comprising a business consultant with diverse experience, a cooperate lawyer,
and a lecturer of Food Science and Technology.
Valentino Terego is honest calm, empathic, healthy and thinks creatively as
well as has ability to meet challenges and no doubt on himself. He supervises
and monitors the production process.
Vian Fast Foods and Snacks has three direct competitors that sell their
products at higher prices. However, the business has a strong relationship with
large scale poultry farmers and suppliers of other products. This enables the
business to get high quality inputs at lower cost hence sell at lower prices to its
customers, The enterprise reaches out mostly to the average and low income
earner and student population unlike competitions that focus primarily on the
rich.
The business invested shs 150 million in the previous years in attractive
packaging product design, market research & towards working capital
requirements, and realized revenue of shs 360 million & incurred expenses of
shs 50 million.
a) Describe the personal characteristics of Valentines Terego as a good
negotiation in business
b) How does Vian Fast Foods and Snacks cope with competition?
c) In what ways does the business promote quality of its products?
d) Redraft the marketing plan of the business.
e) Calculate the
i. Net profit (03 marks)
ii. Return on capital invested in the business
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B: SCHOOL BUSINESS CLUB
Q 2 a) Present the general description of the business
b) State the vision and mission of your business project.
c) How did you raise the start-up capital?
d) In what ways did members benefit from the school business club project?
e) Describe the techniques you used to make your products unique in the
market.
Qn. 3 a) How did you develop the business idea?
b) What market gaps did your business project try to fill?
c) Describe the procedures you followed when establishing the business
d) Explain the factors you considered for capacity planning and design.
e)Draw the organizational chart of your enterprise
SECTION C: FIELD ATTACHMENT/ FIELD TRIP
Qn. 4 For any field attachment you carried out
a) Describe the business you were attached to.
b) State the objectives of the field attachment you carried out.
c) Describe the customers of the business.
d) Explain how the business you were attached to copes with change.
e) What techniques does the business you were attached to use for managing
labour turnover? (05 marks)
frustration
Qn.5 For any field trip you made as an67 individual or as a group.
a) (i) State the objectives of the field trip (02 marks)
ii. Describe the business you visited (02 marks)
(iii) Draw the physical layout of the business visited. Advise
the proprietor about the criteria to use for evaluating the business visited.
c) How do the sales personnel of the business clear all the doubts and
objectives of the customers without entering into controversial arguments and
losing temper?
d) Explaining the tools used by the enterprise for monitoring the business
you visited.
e) What record books are used by the business you visited?
Set three
Read the case of Kirabo Diary Farm and answer the question that
follows.
Kirabo Diary Farm is located in Nyabushozi, Kiruhura District in
Western Uganda. The Farm is now owned and operated by Kirabo Flavia, a
daughter of the Mwesigye John. The farm employs twenty (20) workers
recruited from the local community.
It was started in the late 1960s by Kirabo’s grandfather. Kirabo took over
the farm when it had eight cows. She has been adding to the herd since that
time.
Although the farm owns two large buildings and diary cows, it is considered a
small business by dairy farm standards.
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The farm occupies 178 acres of land. Flavia ploughs the land and plants
elephant grass to feed the present herd of Friesian, Jersey dairy cows and five
replacement heifers.
The average production is 2,000 liters of milk per cow per year. The
product is sold to local consumers and to a local milk packaging agent who
takes it to his principal consumer in Kampala. The milk is sold at market rates.
On December 31st 2012 Kirabo’s records showed the following:

Fixed assets i.e. land, buildings, farm machinery, milk tanks, milk equipment
and cows valued at shs190,000,000. In addition there was shs3,450,000 in
cash, shs3,450,000 in accounts receivable owed to the farm by milk buyers
and prepaid insurance of shs5,560,000.
The current liabilities for the farm were shs10, 000,000 on short term
loan and shs900, 000 on salaries and wages owed to farm workers. The long
term liabilities were shs55, 000,000 on long term loan.
The income from milk sales was worth shs134, 000,000, the direct costs
of milk production (cost of goods sold) were shs42, 000,000 and the operating
expenses were shs38, 000,000. The net profit for the year was shs54,
000,000.
Many diary farms are now being established and others expanded in the
nearby areas. These may pose a lot of competition to Kirabo Diary Farm; hence
reduce its market share. Kirabo has fears that the sales income may greatly
reduce.
a) Use the above information to develop a balance sheet statement for

Kirabo Diary Farm. (05 mks)
b) Give five reasons why financial record keeping is important for Kirabo
Diary Farm. (05 mks)
c) State three reasons for Kirabo’s choice of the type of business. (03 mks)
d) Explain any three benefits Kirabo Diary Farm gets from the local
community.
e) What other possible business opportunities can Kirabo undertake to
effectively utilize the 178 acres of land? (04 mks)
f) Advise Kirabo on five ways of maintaining and expanding the market
share.
SECTION B:
Answer at least one question from this Section.
2. With reference to the business project owned by your School business
club.
a) Give the general description of the business project.
b) Describe the production process of the business project.
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c) Explain four internal control systems used in the project to ensure
quality products/ services.
d) With examples, give three types of costs incurred by the business
project during the production of goods and services.
e) i) State the nature of product packaging used by the business.
ii) Give five reasons for the choice of packaging in (e) i) above.
3. In relation to a business project owned by your school club;
a) Describe the business project you carried out.
b) Explain four sources of finance for the business.
c) Give five factors that favoured the establishment of the business
project in the school.
d) Describe four operational activities of the business project.
e) i) Name any three hazardous substances resulting from the operations
of the business.
ii) Explain five measures taken to manage the hazardous substances
mentioned in e) i) above.
SECTION C: FIELD ATTACHMENT/ FIELD TRIP.
a) Give the general description of the business you were attached to.
b) State any five forms of communication used in the business.
c) Describe five methods of sales promotion used by the business you
were attached to.
d) Explain the control measures used to ensure proper management of
cash in the
business.
e) i) List any three source documents used by the business.
ii) Explain the use of the source documents mentioned in (e) (i) above.
5. For any one business field trip made as an individual or a group.
a) i) State any two objectives of the field trip.
ii) Describe the business you visited.
iii) Draw a sketch of the physical layout of the business you visited.
b) Describe the steps followed in the purchasing plan of the business.
c) i) Identify any three taxes paid by the business.
ii) Advise the business owner on the importance of paying taxes.
d) State three indicators of good customer care in the business you
visited.
e) Give three reasons why the business should cope with change.
Set four
Answer all parts of this section.
Read the case study of social entrepreneurship and answer the questions that
follow.
Social entrepreneurs
Everyday heroes.
Entrepreneurship isn’t about selling things – it’s finding innovative ways
to improve people’s lives. Until recently, most people in business focused on
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products and services that would appeal to consumers, and this resulted in the
creation of many great companies and a lot of jobs. But attitudes are
changing. A new generation of entrepreneurs is using approaches from the
commercial world and employing technology to tackle social and environmental
problems – these areas used to be the exclusive territory of government
agencies and charitable organizations.
The British Cabinet Office says that there are 70,000 social enterprises
helping people, communities and the environment in this country alone. These
businesses and organizations contributed more than 54.9 billion pounds to the
economy in 2012 and they employ almost 1 million people, yet we have only
scratched the surface.
No matter what the structure of the company – whether it is for- profit,
non-profit, or a creative melding of the two-entrepreneurial solutions are
offering engagement, jobs and hope in areas where we had none. The example
set by Econet Wireless, which is led by Strive Masiyiwa, is one of my favorite.
A couple of years ago, Econet, a telecom company based in South Africa,
started to develop and distribute solar charging stations in the region,
providing power for cellphones, lights and other devices. These stations are
helping to transform the lives of people living in rural area where the supply of
electricity is erratic.
Econet shifted its business model to drive change for people and the
planet, and at the same time it created a lucrative new revenue stream. This
shift has opened up new avenues for the company, which is using its charging
stations to power refrigerators that store vaccines for the community.
Business and government must encourage established entrepreneurs
and young talent to focus on problem areas like health, education, climate
change and social care.
How can we speed up this process and make even more of an impact? There
seem to be three key obstacles facing entrepreneurs who will to get social
enterprises of the ground.
Funding: Where is the money?
Entrepreneurs often struggle to raise seed money for such ventures, as is
far tougher to get funding for social enterprises than commercial counterparts,
despite the fact that the financial returns can be just as big. If a startup team
is proposing to launch a social enterprise with the potential to radically change
the U.K’s 87 billion pounds social a care sector, they deserve a serious listen
from people who can provide substantial funding, not just a little grant money.
We need to encourage more initiatives and competitions such as Google’s
Global Impact Challenge, which set out to find four non profits in the U.K that
would be awarded 500,000 pounds each to help them tackle some of the
world’s toughest problems through technology. The quality of the entrants was
amazing, and the winners ranged from CDI Apps for Good, which teaches
children how to code, to the Zoological Society of London, which uses tracking
devices to monitor and protect endangered wildlife.
Others are following. The founders Forum, a community for
entrepreneurs started by Brent Hoberman and Joiine Goodwin, has partnered
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with the social investor Nominet Trust to put up 1 million pounds in order to
encourage the best and brightest to apply their technological talents to social
problems called social Tech, Social Change, the program will provide seed
funding for startups. These sorts of initiatives will help to shine the light on
the social enterprise sector and will encourage more funding and better ideas
to come to life.
Networking: It’s who you know.

It is tough for the leaders of a social enterprise to know who to speak to
within tech businesses and vice versa, so it’s important for government and
business to create links between technology entrepreneurs and those leading
social change. It simply make financial sense to encourage collaboration
between those skilled in tech and those working in the social sector, since it
will spark new ideas – everything from online giving platforms to education
analytics business – and in the creation of jobs. The solutions to this problem
don’t have to be costly or elaborate. Online forums, networking events and
conference would all help to forge ties between the two sectors.
Mentoring: Advice from those who have been there.

Every startup team needs a mentor: someone to help team members to
understand and overcome those tricky early situations and later, to coach
them through the process of expansion. Using business skills to grow a social
enterprise is a fairly new idea, and so the teams that found such startups need
help solving problems and getting the job done.
Richard Brandon is the founder of the Virgin Group.
1. a) Give the reasons why social entrepreneurship is important in solving
social and Environmental problems.
b) Give any three examples of social enterprises mentioned in the case
study.
c) What can social entrepreneurs do to raise capital to start social
enterprises?
d) Why is mentoring important for the success of business?
e) Give five (5) factors that determine the success of social enterprises.
SECTION B: BUSINESS CLUBS.

2. With reference to a business project owned by your school business
club;
a) Give the general description of the business you carried out.
b) Describe your target market.
c) What factors favoured the establishment of the project in the school?
d) Mention the skills that you have acquired from the project.
e) Suggest the various marketing techniques that can boast your sales.
3. With reference to school project owned by your school business club;

a) Give the general description of the business project owned by the
school business
184
club.
b) Explain how you developed the business idea.
c) Explain the marketing problems faced in your business.
d) Describe the production process for your business products.
e) Explain the innovations you carried out for the success of your
business.
Section c: field attachment/field trip.
a) Give the general description for the business you were attached to.
b) How did the proprietor carry out customer care?
c) Assess the impact of the business attached to on the environment.
d) Identify the marketing strategy of the business attached to.
e) How did the business attached to motivate employees.
5. For any one business field trip made a s an individual or group.
a) State any two objectives of the field trip.
b) Draw a plant lay out of the business visited.
c) How does the business visited market its products?
d) Outline the contribution of local community to the business visited.
e) State any three competitors of the business you visited.
f) How does the business visited promote quality production?
Set five
CASE STUDY (SENIOR FOUR DROP OUT OWNS A STATIONERY SHOP)
Sam who is 17 years old is the owner of Excel stationery shop located in
Kawolo sub-county, Buikwe district. He completed S.4 from Metha S.S
in Lugazi Town in 2008. Sam was forced to pre-maturely suspend
pursuing higher education because his father could not afford paying his
school fees.
In January 2009 Sam was employed as a Shamba boy in Metha sugar

cane plantation earning shs70,000 per month. He maintained financial
discipline and kept on saving. By January 2010 he had saved up to
shs600,000 which he used to start Excel stationery shop.
Sam is currently helped by his sister to run a stationery shop. The

business has become popular for offering goods on credit to trustworthy
customers. Giving advice to customers concerning variety of products
offered, and appropriating customers.
The business records daily sales, banks excess money on weekly basis,
issues payment vouchers for all expenditures made, issues invoices to
credit sales and has a lockable safe for cash received. However the
business is still operating on a small scale.
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Questions
a) Give any two reasons why the owner of the stationery shop
decided to employ the sister.
b) Suggests any five ways of promoting customer care, the owner
can use others than the ones sighted in the case study above.
c) What possible challenges are faced by Excel stationery shop?
d) Identify the benefits of the stationery shop to the community.
e) Outline any four tools used by the owner to monitor this shop.
f) As an upcoming entrepreneur, what lessons do you learn from the
above case study?
club;
a) Give the general description of the business project you carried
out.
b) What benefits does your project get from the community?
c) Explain how you avoid the common causes for business failure.
d) What challenges were faced while raising capital?
e) Explain the promotional strategies adopted by your business
club
3. With reference to a business project owned by your school Business
club.
a) State the objectives of setting up such a project.
b) How do you ensure sustainability of your project?
c) How do you minimize the cost of productions?
d) Make a SWOT analysis of your project.
e) Give any 4 negative effects of your project on the environment.
Section c: field attachment/ field trip
b) Explain any four responsibilities you were assigned while on your
attachment.
c) Identify any three competitive advantage of the business you were
attached to, over other similar business in the community.
d) Explain the skills you acquired from the business you are attached to.
e) Describe the factors considered by the business owner when making
choice of suppliers of quality production requirements.
5. For any field trip carried out as an individual or a group.
iii) Draw a layout of the business you visited.
b) Describe the factors that favoured the establishment of the business
you visited.
c) How does the business visited manage its hazardous substances?
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d) How does the business you visited promote production of quality
products?
e) What challenges did you face while carrying out the field trip?
Set six
SECTION A: Case study
1. Read the case study of Pendo Buttons Diapers and answer the questions
that follow.
In a recent new business contest for women, sponsored by IPP, three
women won first prize. They planned and started a new business on the
basis of an old product. Stimulated by the growing trend toward
conserving natural resources, Asha, Amina and Liza John developed a
plan for the manufacturing and servicing of cloth diapers. The company
developed a business design for a new cloth diaper that has proved
excellent for its purpose and does not harm the environment. This
diaper avoids disposal of products that are made for one time use and
quick disposal. Pendo Buttons Diapers Company says that it cloth
diapers are as convenient to use as the disposables. They are less
expensive than disposables on the market. Its cloth diapers have proved
to hold under the rigors of commercial laundries.
Pendo Buttons Diapers aims to place its diapers in day care centre,
hospitals and nursing homes. The diapers are now being manufactured
in increasing volume. The company has now reached orders for 4,000
diapers per month. Production is expected to rise to 20,000 per month
at the start of the second year.
Asha, the director General of the company, assumes the responsibility of

design and is the quality expert. Liza, the vice Director General, offers
marketing experience. Amina brings her experience in the apparel textile
industry to her position of manager of production and research and
development. The partners believe, as a result of their combined
experience, that they have a winning team and a winning company.
They have demonstrated one way to regenerate old ideas successfully in
a modern fashion.
a) What triggered the formation of Pendo Button Diapers?
b) How can you explain Pendo Buttons Diapers ability in arresting the
appalling environmental target brought about by disposable diapers?
c) Explain the formation of the company in terms of Gender.
d) What can you say about the future of the company?
e) Perform a SWOT analysis of Pendo Buttons Diapers Co. Ltd.
f) What entrepreneurial skills have you leant from Pendo Buttons Diapers
Co. Ltd?
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2. With reference to a business project owned by your school
business club.
a) Give the general description of the business project you carried
out.
c) Show how you raised the start-up capital.
d) Describe the production activities of your project.
e) Explain the marketing strategies used by your club.
3. With reference to a business project owned by your school
business club.
a) Give the general description of the business project you carried out.
b) Explain the factors that favoured the establishment of the business
project in your school.
c) Describe how innovative you were in your project.
d) Examine the impact of your project on the environment.
e) What challenges did your project encounter?
f) Explain the measures you took to overcome the challenges in e) i)
above.
SECTION C:
FIELD ATTACHMENT/FIELD TRIP
4. For any field attachment carried out:
b) List any three source documents used by the business you were
attached to.
c) Explain how the source documents in b) above were being used.
d) Identify any three market gaps in the business environment.
e) Advise the business owner on how to fill the gaps identified in d)
above.
f) Explain the entrepreneurial skills you acquired from the business?
5. For any one business field trip you made as an individual or a group:
a) State any two objectives of the field trip.
b) Describe the business you visited.
c) Draw a lay out of the business you visited.
d) How does the business you visited you visited market its products.
e) Explain the problems faced by the business you visited.
f) What recommendations can you give the business visited to address
the problems in e) above?
g) How does the business you visited handle credit or debt management?
h) What contributions does the local community make to the business
you visited?
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Set seven
SECTION A
1. Case study: Two halves make a whole.
Butali was only 21 years old when she completed her training in
general Agriculture and animal husbandry. She went back to her
home area since she could not get employment. Butali’s family
was not rich and their source of income was from sale milk from a
family cow. There was much milk needed in town however she did
not have the start up capital to start business in diary farming.
One Friday on her way from the Mosque she met a former school
mate called Matulo. They conversed about the idea of starting a
dairy enterprise and Matulo told her about TRIDEP a non
government organization that gave a pregnant cow to needy
farmers as along as a farmer could construct a recommended shed
and purchase equipment before receiving the cow.
Butali applied to the organization and his application was accepted

pending fulfillment of the conditions. She needed finance to
purchase construction materials and other equipment and to
employ some workers. She approached the village bank in her
area to obtain a loan of shs approached the village bank in her
area to obtain a loan of shs100,000 which was payable in three
years.
However, she did not have the required collateral so she never got
the loan but she never gave up.
She talked to her father about the collateral and he allowed her
use the property title as collateral. The loan took six months to be
processed because she did not have experience with banks,
besides that the bankers had negative attitude towards lending a
woman, they also considered giving loans to small scale
enterprises eventually risky. The transaction cost was also quite
expensive.
Eventually, Butali obtained the shs100,000 loan.
After getting the money she contacted TRIDEP to advise her on

how a cow shed was to be constructed and for technical assistance
she uncounted several problems like lack of confidence and
experience besides that her father was not happy as Butali was a
university graduate doing local work. Despite all the hardships
Butali faced,
She worked hard; she repaid the bank loan within the stated time.
She was advised to buy her own land which she did. On her land
she constructed a farm and small houses to accommodate the
workers. She began a big residential house for her family.
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Soon output increases tremendously and Butali opened several
outputs, employed more people, increase profit and sales and they
bought a pick up truck for the business. The future plan of the
business is to diversity and add more enterprises to the business.
Questions
a) What entrepreneurial skills do you learn from this story?
b) What problems did Butali encounter in her business?
c) What did Butali get from the business?
d) Identify the sources of business ideas for Butali.
e) Why did Butali delay to get loan from the village bank?
SECTION C FIELD TRIP AND ATTACHMENTS
2. For any field work carried out individually or as a group state the;
a) Objectives of the study tour.
b) General description of the business visited.
c) Products of the business.
d) Challenges faced by the business.
e) How the challenges are over come.
3. For any field work carried out as an individual or as a group.
a) Draw a plant lay out of the business.
b) What are the objectives of the business you visited?
c) Identify at least five documents used in the business you visited,
Cleary showing the documents are used.
d) What were the future prospects of the business visited?
e) Identify challenges of the business.
SECTION C SCHOOL PROJECT CLUBS
4. For a school project running in the school
a) What is the general description of the business?
b) Identify the raw materials and final products.
c) Identify at least five concepts mentioned in the business constitution.
d) What solutions have you applied to solve the problems faced in the
project?
e) What are the future prospects of the project?
Set eight
SECTION A: CASE STUDY.
1. Read the case study of Kamukamu and answer the questions that follow;
Some people in Uganda like taking tea with sugar and as a result, there
is a high demand for sugar in the country. Noticing that there is a high
demand for sugar in Uganda, and realizing that this was a good business
opportunity, Kamukama (an entrepreneur) started growing sugar canes
from which he could make sugar.
Slowly and steadily, Kamukama embarked on the task of setting up a
sugar cane plantation and a sugar factory. He looked for capital, bought
land and planted sugar canes, built factory buildings, bought machines
and installed them. Kamukama hired many skilled and unskilled
human resources to help do all this work and manage the business.
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Kamukama now owns a largest sugar cane plantation and a sugar
factory, which employs very many people living in the neighbourhood to
grow and sell sugarcanes to kamukama’s business. The income of
people selling sugar canes to Kamukama’s business has increased and
their standard of living has also gone up.
Kamukama’s business makes profits on which it pays taxes to the

government. The workers pay graduated tax to the local council of the
area. The local council as a result has been able to construct feeder
roads in the area, which have made it possible for the people to produce
and sell their agricultural products.
Since the plantation and factory workers have school age going children,
Kamukama has set up schools for them. The school fees charged are
fairly low and are affordable by the worker’s and the people in the
neighbourhood. The children who previously traveling distances now go
to Kamukama’s primary and secondary school.
The school has most of the basic requirements and is staffed with well
qualified teachers.
As a result, the performance of the children in the district and national
examinations is very good.
Kamukama has also set up recreational facilities for the workers and the
community. A local football team plays in the country’s top foot ball
tournament. A clinic has been set up and it provides health services to
the whole community at affordable rate;
Questions
a) What contribution does the business make to the community?
b) What lessons do you leant form Kamukama’s experience?
c) Explain the economic factors that favoured Kamukama to set up
those enterprises.
d) What could be some of the negative impacts that the business
causes to the environment?
e) Advise Kamukama on the benefits of insuring his enterprise.

club;
b) How did you come up with the business idea?
c) How does the community benefit the project?
d) “I can not buy your products when there good quality products in
standards super market”. How did you react to that client during the
selling process?
e) How can some one become a member in your club?
club;
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b) State the benefits of the project to the club members.
c) Explain the business ethics practices by your club towards the school.
d) State the promotional methods used by your club to increase the
volume of sales.
e) What factors did you consider when selecting supplier of raw materials
for you project?
SECTION C
FIELD ATTACHMENT/ FIELD TRIP.
4. For any field attachment you carried out;

a) Present the general description of the business you were attached t.
b) i) What personal challenges did you encounter during the field
attachment?
ii) How did you overcome the challenges you encountered during the
field attachment?
c) In what ways does the entrepreneur of the business you were attached
to increase returns of the business?
d) i) Identify the taxes paid by the business you were attached to.
ii) Advise the owners of the business you were attached to about the
importance of being tax compliant.
e) What controls did the business you were attached to put in place to
manage the flow of funds?
5. For any one business field trip you made as an individual or a group.
iii) Draw a layout of the business you visited.
b) For what reasons did the proprietor choose the business you visited?
c) i) Describe the sales promotion strategies employed by the business
you visited.
ii) What facts did the owner of the business you visited keep in mind
when developing the sales promotion strategies?
d) Explain how the business you visited manages labour turnover.
e) Discuss the factors affecting competition faced by the business you
visited.
Set nine
SECTION A
CASES STUDY
Tracy and Tony are friends, both of them studied at PAP institute of
Technology (EIT) where they got certificates in motor vehicles mechanics.
Tracy had initially wanted to become a journalist but seeking
advice from the career’s master, she decided to study motor vehicle
mechanics.
After school, Tracy and Tony started a garage in Mukono trading
centre.
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At first, they failed to get customers but they failed to get
customers but they thought they were too young to do good work.
According to Tracy, they have started enjoy their work. They earn
enough income to meet their needs and help their brothers and sisters.
They do not have a boss to push them around.
Questions
a) What influence Tracy’s choice of career?
b) What technique are Tracy and Tony likely to use when handling
difficult customers.
c) What benefits are these people likely to enjoy after becoming self
employed.
d) What techniques are they likely to use to promote their business and
attract more customers?
SECTION C
FIELD ATTACHMENT
4. For field trip you have carried out as a group.
a) Clearly state name of the business visited and its location.
b) Give the general description of the business visited.
c) State the production challenges facing the business visited.
d) Outline the possible sources of capital for the business visited.
3. For any field trip you carried out.
a) State the legal form of business and its type.
b) What are the marketing challenges facing the business visit
c) What measures are being taken to solve the above challenges?
d) What is the role of the business visited to the society?
e) How is the business visited maintaining the welfare of its workers.
Set ten
CASE STUDY
2. Read the case study of Mungo’s service Station and answer the
question that follow.
3. Three years ago, Mungo bought a service station from an old man
who had run the station using old machines and hand driven
pumps. The sales were the best of any service station in the town.
The former owner had been a very popular man in the areas and
had many loyal customers. Some of this popularity rubbed off on
the new owner but there were a lot of people in the area who didn’t
like Mungo.
As soon as Mungo took over the service station, his business began to decline.
Within a period of three years, almost all old customers had left for the nearby
service station and only a few new customers came to the service station. The
biggest reason for losing sales was the attitude Mungo had towards his
customers. For example when a boy came to the station with his bicycle tyre
and wanted air for an inflated bicycle tire, Mungo told him “I’m here to sell
gasoline, not to give air, ask your father to buy you a bicycle pump, don’t
bother me”.
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Another time a man on his way to a wedding stopped for gasoline. Mungo sold
him gasoline but was in such a hurry and seemed to be very tired because of
the hand pump he was using, de didn’t check the oil or wash the windows.
When the man asked Mungo to do these things Mungo did them in bad
humour and grumbled about all the work he had to do. He cleaned only the
windscreen in spite of the fact that all the windows were dusty.
After several instances like these, word got around about Mungo’s bad
personality.
Nobody wanted to body gasoline from Mungo’s service station. The successful
business Mungo had taken over went broke after three years as most of the
customers shifted to another nearby service station.
a) The service station had been a success for 16 years before Mungo
took over
identify the reasons why it got broke within three years after
Mungo became the
owner?
b) “Never argue with a customer. Adopt the attitude that the

customer is always
right no matter how wrong he is”. Justify the statement in
reference to the case
study.
c) Drawing from your experience, give three other unethical
behaviour towards
customers in day to day business transactions.
d) What could Mungo have done to attract more customers?
e) Why did the old man succeed in a business that Mungo failed at?
f) Give three factors that determine business success.
Section B
School business clubs.
club.
c) Show how you raised the start-up capital.
d) Describe the population activities of your project.
e) Explain the marketing strategies used by your club.
club.
b) Explain the factor that fovoured the establishment of the business
project in your school
c) Describe how innovative you were in your project.
d) Examine the impact of your project on the environment.
e) i) What challenges did your project encounter?
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ii) Explain the measure you took to overcome the challenges in e) i)
above.
SECTION C
Field attachment/field trip.
b) i) List any three source documents used by the business you were
attached.
ii) Explain how the source documents in b) i) above were being used.
c) Identify any three competitive advantages of the business you were
attached to.
d) i) Identify any three market gaps in the business environment.
ii) Advise the business owner on how to fill the gaps identified in d) i)
above.
e) Explain the entrepreneurial skills you acquired from the business?
5. For any one business field trip you made as an individual or a group;
iii) Draw a lay out of the business you visited.
b) How does the business you visited market its products?
c) i) Explain the problems faced by the business you visited.
ii) What recommendation can you give the business visited to address
the problem in c) i) above?
d) How does the business you visited handle credit or debt management?
e) What contributions does the local community make to the business
you visited?
f) How have managed the risk in the process of developing it?
g) Explain the creativity traits exhibited in your project.
h) Explain the measures you took to over come challenges of your
projects.
Set eleven
CASE STUDY
The following information was obtained from the Entrepreneur Achiever Club.
St. Edward’s Bukuumi. Use it and answer the questions as follows information
from production Department.
Congratulations on joining the Entrepreneurs Achiever’ Club, production.
Department report to you following,
1. As our responsibility care of ordering materials establishing production goals
developing product strategies for organizational production and monitoring
product quality. The efficiency of our production as well as quality of our
products. Which will determine the club success.
The production department: We have been responsible for the following
i) Production department business plan.
ii) Production records.
iii) Product tables.
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iv) Liquidation.
Tips we have used in buying

 Recommended quality and quantity to be purchased.
 Check all delivers for shipping damage and completeness.
 Order additional materials as needed.
Safety guidelines
 Use and implementation of safety programs.
 Maintain the production and monitor progress.
Quality control
 Ensuring quality standards.
 Making a good label.
 Making quality checks take place on a regular basis.
Packaging
 Selecting a good packaging material.
 Selecting good label.
 Use of appropriate material on market.
There the following have been put in place.
 The selected production process.
 The quality control procedures that will be put into place.
 The production is according to company goals.
 The cost of packaging, labeling and marketing the products.
Answer the following
1. Production goals.
a) Our production goal is to make……(1)…..units of our product
by……(2)……. To achieve
this goal…(3)…..production workers will need to work…(4)…
hours our goal is to have the service package/ planning completed by…(5)
…
b) What are quality elements observed by the club?
c) Suggest more ways of improving your clubs performance.
d) Basing on the above information, mention the different ways used
to make the
Department successful.
SECTION B
club.
a) State clearly the name of your business of the business club.
b) Explain how labour is organized in your club.
c) Briefly explain the daily activities of your club.
d) Explain how you raised capital.
e) Design your club logo.
3. Your school business club is successfully operating since senior five.
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a) Outline five elements contained in your constitution.
b) Explain the ways you use to market your products.
c) What challenges are you facing?
d) Explain ways of handling cash in your business.
e) How do you overcome challenges you are facing.
SECTION C
4. For any field attachment carried out as a group or an individual.
a) Mention the business you visited.
b) Name the area you visited.
c) Mention any five businesses that are for women done by men.
d) Explain challenges you faced during the field work.
e) Recommend solutions for challenges faced while conducting the field
work.
5. As student of entrepreneurship. You visited various businesses in your

area of residence.
a) Outline five businesses you visited.
b) Mention one business and write the its general business description.
c) How does the business you visited manages competition.
d) What contribution does the local community make to the business you
visited?
e) Outline any five ways you will recommend to such a business to
improve on it’s distribution strategies.
Set nine
CASE STUDY: INNOVATIONS- MAKING ROSARIES BY NAMUSOKE.
It took her a year to realize she could earn income rosaries.
Sylvia Namusoke now makes between 200 and 300 rosaries a month and
resident of Madirisa zone in Makindye Division, Kampala, doubted whether she
would ever be able to support her family. With no qualifications to speak of in
the job market, the house wife had no one to turn to after the death of her
husband, the sole provider of the family who passed away in 2008 in a motor
accident. She says the idea to make rosaries was suggested by a friend during
a casual conversation.
“I started in 2009 with only shs100,000 which I used to buy, Beads,
chains, threads and crucifixes from which I made 20 rosaries”. Explains
Namusoke. It took her two weeks to make a complete rosary, which she then
sold to one of the parish members, “I did not stop 20 rosaries.
“I started in 2009 with shs100,000 to buy beads, chains and crucifixes,”
“I dedicated all my days to making rosaries because it had become a full-time
job.” She added. Three years down the road.
Namusoke has perfected the art of rosary making as her beads no longer fall
out of place.
She owes her success to nuns of Mugalike Parish in Hoima diocesse, who
taught her to make rosaries when she was a little girl.
Today, she uses her sitting room as her work area while she tries to establish a
workshop. “If I had more funds, I would have more disposable income to grow
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my business. I would be renting a shop where I would sell my merchandise.
“She adds, Namusoke says the rosary business is profitable because there is
ready demand especially during baptisms confirmations and meditations.
Achievements
Namusoke has been able to meet her children’s school fees requirements; her
eldest daughter is a final year student at Makerere University. The second
starts at university this while the last born is in Primary Five. She has also
been able to meet basic requirements of her family members.
Challenges
Namusoke says her business has been hammered by lack of capital. “I am
sometimes forced to halt my work because people take rosaries on credit and
take long to pay.” Explains Namusoke, She adds that because, she has no
shop, she does not earn as regularly as she should.
“The job is tiresome, Overtime, I have developed back, neck and chest pains,
but I have to carry on,” she says.
Future plans
She plans to expand her project, but is reluctant take a loan.
Case study from vision, July 29th 2012.
.Exercise
1. Under what type of innovation does Namusoke’s innovation fall”.
2. What challenges does Namusoke face in her business?
3. What impact was created by Namusoke’s business and how has she
benefited from it”.
4. What factors caused Namusoke to develop his innovation?
5. Was Namusoke’s innovation caused by internal or external factors?
6. “The job is tiresome overtime. I have developed back neck and chest
pain but I have to carry on, she says” clearly justify this statement.
7. How do Namesake’s business assist the society of your country?
8. Outline i) Raw materials Namusoke use.
ii) Places Namusoke could sale rosary.
9. What are the likely achievements for Namusoke.
10. Mention ways Namusoke can use.
11. With reference from the case study identify any four factors that
made Namusoke to identify that he can any things (to become an
entrepreneur).
12. As a snior vaccast what lessons do you learn to Namusoke.
Set thirteen
I ALWAYS WANTED TO BE MY OWN BOSS
Diana Ssempasa is a successful young entrepreneur dealing in snacks
around Kampala. Her dream was to be a medical doctor, but she dropped out
of medical school because of circumstances beyond her control. After failing to
achieve her dream. Ssempasa opted to work towards self- employment. “My
career did not follow the path I dream out. But rather a different path that has
been me succeeds as a self-employed businesswoman. Now file not want
anyone to employ me and I enjoy being my own boss, “Ssempasa says. She
says she was raised by her mother because the father and gone abroad. “My
mother gave us everything we needed. Including education, but she always
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told us that the only way people could respect us was when we had our own
jobs.”
She says, Ssempasa was born in Mukono district, went to Buganda Road
primary School, Gayaza High School and then Makerere College School.
She later joined her father in Sweden in 2001, where she enrolled at Linkoping
University for a bachelor’s of medicine degree, but popped out. She went to the
UK. A place she says opened her eyes to the world of business.
Working in the uk
Ssempasa’s beginning was humble, she worked in a mental hospital for five
years, a job that she says was not easy. She later quit and worked as a
waitress in a hotel.
“Joining the hotel was my best moment ever because it is this job that has
made me who I am. Although I was a waitress, I got a chance to work as a chef
whenever the chief cook would be absent.
“One of the things I learnt keenly was making snacks, particularly cookies,”
Ssempasa says, adding that she worked very hard and made sure she learnt
everything on the job.
Her savings stolen

While working in the UK. She saved money and sent it back home to buy land
and build a house. But had been sending was misused. Out of frustration,
she decided to remain in Uganda.
“Getting a job in Uganda was not easy. I tried so many places, but the pay was
so little that I thought about going back to the UK. I later at a job at a casino
and I was paid sh250,00 per month. With the expensive life I was used to the
UK, this money did not help much. I decided to quit.” Ssempasa says.
In 2011, she decided to start making cookies from her house and she would
sell them to the neighbours and nearly roadsides stalls.
“At the beginning, the money I got from the cookie sales was too little to
sustain me, but I was determined to soldier on as I did not want to look for a
job again. I supplied the shops around and the business continued to grow.
“Because of the quality of my cookies, people started looking for me and I got
more orders. However, the challenge was limited capital. I decided to borrow
some money from the cousin to expand the business,: Ssempasa says. As the
demand increased. Ssempasa opted to get someone to hawk the cookies
around town and soon she was selling cookies of over sh150,000 per week.
Setbacks
In 2004 her business almost collapsed as the person who was supplying the
cookies had started checking her.
When you trust people so much in business, you are bound to fail, the person
who used to supply my cookies would cheat me, but it took me long to realize.
All the time, he would tell me that he was robbed. By the time I realized that
he was lying, the business was almost collapsing,” Ssemapsa says.
She decided to supply the cookies herself and the sale increased.
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“I started making 100 packets in a week and I would make over shs350,000,”
she says. Ssempasa later decided to train two boys to make cookies in order to
increase on the production and meet the demand.
Besides retail shops, she started supplying to offices, supermarkets and hotels.
Ssemapasa says to meet the increasing demand, she borrowed more money.
Today, demand for her cookies has grown and she can make over sh1.5m per
month.
“I have learnt that when you are determined to do something, you can never
fail. Some people almost failed me, but with determination, I am still moving
on and I am successful. “She says.
Ssempasa has also ventured into making cakes, which she supplies to schools.
She also makes wedding and introduction cakes.
She has also diversified into selling second hand clothes that she imports from
the UK.
“I sell original clothes for babies and adults and I import on order.
I supply them in arcades in town and to small shops. This has greatly boosted
my income and I earn about sh2m per month.
Marketing
Ssempasa says she mostly markets her products on Face book.
“I was introduced to a group of mothers who support each other in business
through face book marketing. They help me in getting the market and also
advise members on how the business can be sustained.
“They have helped me so much because almost half of my sales are because of
facebook.” Ssempasa says.
Advice
Ssempasa say the only way one can succeed in business is by being principled.
“if you mix friendship with business, then you are bound to fail. People should
learn how to use their heads and not let others think or decide for them. “I
hate it when I see people fighting that they want to go and work abroad. There
isn’t much there.” She says.
“It is all about being innovative and hard work that someone can succeed, I
also appeal to girls to come up and work if they are to be respected by their
husbands and the community.”
Her road to success
Ssempasa was born in Mukono district, went to Buganda Road primary school,
Gayaza High School and then Makerere College School.
After A’ level, she joined her father in Sweden in 2001, where she joined
Linkoping University for bachelors of medicine, but dropped out due to some
challenges beyond her control.
She then went to the UK and got a job in mental hospital, where she worked for
five years, before moving to work at a hotel, as a waitress.
She sent her savings to someone in Uganda, but the person misused all the
money instead of investing it.
She came back to Uganda, got a job in a casino, but the salary was little.
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She decided to quit and started making cookies. She later ventured into
making cakes and selling second hand clothes. She now earns about sh2m per
month from her businesses.
Question
a) Who is Ssempasa?
b) Explain factors that influence Ssempasa to become an
entrepreneur.
c) Describe problems Ssempasa faced while in UK.
d) “I always wanted to be my own boss” Discuss.
e) In 2004 Ssempasa’s business business got a set back, Explain
factors with reference from
the case for the set back.
f) Explain the marketing ways used by Ssempasa”
i) Ssempasa advice is great to up coming entrepreneurs. Discuss.
Part two of the questions
a) “To start a business does not need much capita” Justify the statement.
b) What entrepreneurship skills can be identified from the above case
studies?
c) Explain the production activities of Ssempasa’s business.
d) What challenges did she face during the process of developing the
business?
Business field trip
2. For any Business you were attached to when while carry out field work.
a) i) State the topics of study.
ii) Objectives of the study.
b) Present the business ethics possed by the business you visited to
different stake holders.
c) What challenges is the business facing?
d) What recommendations can you give the business to overcome the
challenges in c) above.
i) Labour planning.
ii) Purchasing raw materials.
b) Mention any five different types of packaging they are using.
c) Explain how business competition is handled.
School project club
4. With reference to business project owned at school.
a) State the mission and goals of the club.
b) Show how you have achieved the goals of your club.
c) State the weakness of your club.
d) Outline suggestions to over come such weakness.
5. Basing on the activities of your business club.
a) Mention club activities you carried in first section.
b) Explain how they where achieved.
c) How do you handle credit selling?
d) If you give out loans to club members, explain procedures followed.
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Set eleven
Suzan started Broadway confectionary in 2006, when she returned from
the USA with her family. While in the States she took a degree in culinary arts.
This taught her the skills she needed to produce food products, including
cakes, on an industrial scale.
Suzan had already decided that she wanted to run her own cake
business and be self employed, rather than to work for somebody else, So she
bought the necessary equipments in the USA and had it shipped back to
Uganda. She was that she could borrow the money for this from relatives and
friends.
I took over 6 months for the equipments to arrive. But that gave her
sometimes to do some market research. She found that the market for general
bakery products, like bread and small cakes, was highly competitive and the
profit margins were very low. If she went into this part of the market she
would find it difficult to repay her loans. So Suzan decided to concentrate on
the middle and upper end of the market. She decided to make cakes for
special occasions, such as weddings and birthdays. These could be sold for a
higher price.
Once Suzan had finished her market she turned her attentions product
development.
Some of the ingredients she used in the State were not available in
Uganda, so she had to find suitable local alternative. She experimented to find
a cake mix that kept well in the high temperatures found in Uganda.
Eventually, she found a way of making a cake that would last for up to two
months without refrigerated and for a year, if it was refrigerated or frozen.
Eventually, she bought some premises, installed her oven and started in
business. At first it was difficult. She trained two people to help her: one to
operate the oven and her other to help in making the cakes. But, at first, they
only sold one cake a week. If she kept on like this it would be disastrous. She
would lose a lot of money. So she tried a new idea to improve her marketing.
She set up tables in supermarkets started to place orders for them: people
would want to buy them.
She was right, shopper liked them and the supermarkets started to place
orders for them.
In the two years, since she started, sales have grown fast. Most weeks
she makes and sells between 250 and 300 cakes. At special times of the year,
like Christmas and Easter, her sales can be as high as 500.
Most of her medium-sized cakes are now sold through supermarkets in
Mukono and Kampala districts. The rest of her sales are special orders of large
cakes for special events, those come from private clients. As the business has
grown Suzan has been able to provide employment for others. Today, she has
8 employees. They include people who operate the oven, mix and decorate
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cakes, wash the equipment and clean and a van driver to collect raw materials
and deliver the cakes.
The growth of the business has had a few problems she finds it hard to
get people who already have the special skills required. So she has to spend a
lot of time training new workers orders vary greatly from week to weeks. This
causes problems for staffing. She cannot afford to take on extra people when
some weeks, there will be no work for them.
So, in weeks when orders are big, everyone has to work very hard and do a lot
of overtime. She faces competition from other suppliers, but intends to stay
ahead of the game by making sure always has the highest quality.
Suzan is gradually extending her market to other supermarkets and

towns in Uganda. She has found a way to package the cakes so they can be
transported long distance in the past. This open up the international market.
She has already exported some cakes to the United States.
Her next plan is to create an interest site so that people in Uganda and across
the world can order Suzan’s special cakes.
Setting Broadway confectionary needed specialist knowledge and a lot of hard
work. But it is rewarding work and the future looks good!
Questions
1. Why do you think Broadway confectionary has made a successful start
a new business in Uganda?
2. What are the main costs of the business?
3. How important was “market research” in the planning of the business?
4. What is the difference between “market research”? Which part of
Broadway’s marketing was.
5. What is meant by “product development”? Why was it important for
Broadway?
6. What is the meaning of the following words and phrases?
a) Skill
b) Industrial scale
c) Profit margin
d) Employment employee employer.
e) Staple part of diet
f) Living standards
g) Fluctuation in prices
h) Shot “shelf prices.
i) Brand loyalty.
7. What is meant by “economic of large scale production”? Give examples

of why it might be better to make things on a large scale?
Section b
Business club
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2. Basing on Business club activities carried out in your school.
a) Outline the objectives of your club.
b) Design an organizational chart you are to follow.
c) Write steps you follow while ordering for new materials of your
business.
d) Suggest ways you would to make your club/project a success.
3. For any business project you’ve been conducting at school.
a) Develop the SWOT analysis for business project.
b) Explain how you generated and developed the business.
c) Describe the marketing techniques you have been using.
d) Describe the responsibility you have been holding in that club and
state the role you are playing in the club.
Section c
Field work study
4. For any one business field trip you made as an individual or group.
a) State any five objectives of the field trip.
b) Describe the nature of ownership for the business you visited.
c) Draw a plant layout for the business you visited.
d) How does the business you visited manifest it customer care?
e) How does the business you visited handle it difficult customers?
5. For any business field trip you made as an individual or group.
a) Mention five objectives for the field trip.
PART V; P230/3 Section A; Case study
Read the case study below and answer the questions that follow:
Kitone completed her degree in Business Administration in 2010 and decide

immediately become self employed Instead of looking for a job. She set up
general retail shop in Wandegeya under the name Kitone Enterprises on 1 st
January 2011. The shop deals in sale of general merchandise including plastic
products soap stationery food items and hardware products. She pays herself a
monthly salary of shs 500,000 and pays her sister Kigambo Desire the sales
manager monthly salary of shs 300,000. Kitone's target is to become the
leading general retail shop in Wandegeya.
In order to realize more sales and to cope with increasing demands of urban
professionals who enjoy eating more adventurous high quality specialty fast
foods and snacks, Kitone Introduced a section dealing in sale of snacks on the
verander of the shop. She employed a graduate of food science and technology
as an operations manager with two other workers whom she motivates well,
trains appraises and gives clear instructions. She sponsors a snacks
preparation show on NTV as well as distributing flyers to reach out all
customers. Most of the customers are Makerere University students and
residents of Wandegeya.
The shop ensures proper documentation of all business transactions in the

books of accounts which are audited monthly. By the end of 2014 the books of
account revealed the following: sales for the shop and snacks shs 200,000,000,
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expenses Shs 40,000,000, cost of sales 80,000,000. The business obtained a
loan from NCA - Uganda of Shs 100,000,000 to supplement the meager capital.
Kitone authorizes her sister Kigambo Desire to make payments and receive
cash sales money. All the daily cash received is kept in a lockable safe, in the
afternoon ………….. banked. The shop and snacks section deal in quality
products, due to existence of rivals in Wandegeya. They also exhibit good
customer care. She insured the business against fire, theft and Joss of profit.
Kitone also employees 3 security guards to tighten security during day and
night. They ensure proper counting of money and installed a money detector to
avoid errors and counterfeit money. lt'\ ne wakes up very early each day to
supervise the business.
The shop and snacks section are expanding fast. This has enabled Kitone to
construct a big residential house, purchased two vehicles to help in
distribution of some products as well as meeting other family needs and
helping some relatives. No wonder, she is highly respected by the community.
Questions
a) Give the various methods used by Kitone Enterprises to ensure proper
financial management
b) Explain the strategies the business uses to win competition.
c) Re-draft a marketing plan for the business.
d) Advise Kitone on what strategies she should adopt to minimize costs
in the business
e) Describe the personal entrepreneurial characteristics possessed by
Kirabo.
f) What procedures did Kitone follow to insure her business?
g) Advise Kitone on how to manage credit sales,
h) What taxes is Kitone likely to pay?
i) Identity the factors that favoured the establishment of Kitone
Enterprises.
j) How innovative is Kitone.
k) What lessons can anyone learn from the case study?
l) Compute Kitone Enterprises net profit ratio for 2015 and interpret it.
SECTION B: School business club
With reference to a business project operated by your entrepreneurship
club,
a) Describe the business project.
b) i. What factors favoured establishment of the project in your
school,
(i) What risks did your project encounter?
c) Give the measures that were taken to manage the risks given
d) Give the entrepreneurship skills you acquired from the business
project
e) Describe the record books that were used by the project
f) i. How did you raise the startup capital?
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ii. Prepare an action plan you followed when establishing the
business
g) In what ways did members benefit from the school business club
project?
h) Describe the techniques you used to make your products unique
in the market
i) How did you develop the business ideas?
j) i. What market gaps did your business project try to fit!
ii. How did you fill the market gaps identified in (j) (i) above
k) Describe the procedures you followed when establishing the
business
l) Explain the factors you considered for capacity planning and
design
m) Draw the organizational chart of your enterprise.
n) On what factors did the project members base the assessment of
the business risks?
o) Explain the factors that influenced your production decisions
p) Describe the procedures you followed when purchasing your
inputs equipments.
q) (i) Explain why your project was a good business opportunity
(ii.) Prepare a financial plan for your project
r) Explain the guidelines you followed for creating your business
brand
s) (i) What challenged did you face when marketing your produces
ii. Describe the mechanism you used in controlling the business
assets
t) (i) Describe the financial management activities carried out by your
business,
(ii) Re-draft the last operational budget you used in the project
u) Explain the basis for setting prices of your products
v) Describe ways in which you wasted time in your business activities
w) Explain the production process followed by your business.
X) Describe the marketing strategies employed by the project
y) (i) Explain how you implemented the theory of change in your business
project (ii) How did you dissolve your business project?
z) (i) Mention the costs that were Involved in starting and operating your
business project.
ii. How did you ensure cost minimization in your business project?
SECTION C: Held attachment/ held trip
For any field attachment you carried out:
a) Present an executive summary for the business you were attached to.
b) State any three objectives of the field attachment.
c) Identify the forms of written communication used by the business
(i) Mention any three social costs of the business you were
attached to
(ii) Describe the measures being employed to overcome the social
costs stated in d(i) above.
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d) What techniques are used by the owner when bargaining with customers
e) Explain the impact of the business you were attached to on the
community.
f) How does the business you were attached to ensure its sustainability
g) Describe the tools used to monitor business performance in the business
you were attached to.
h) Explain the control measures used to ensure proper cash management of
the business.
i) Explain how the business attached to: -
i. Handle workers' welfare
ii. Handles the business source documents.
j) State the various personal challenges you faced while on field attachment
k) i. Describe the controls to manage the flow of funds in the business.
ii. What business ethics did the business you were attached to
extend it customers and employees.
I) Explain the operational methods the business you were attached to
consider when analyzing competition in business.
m) i. What are the elements that influence quality standards in the
enterprise you were attached to
iii. Describe the source documents used by the business
n) i. Advise the owner of the business about the benefits of investing in
shares if listed companies
ii. How innovative is the entrepreneur of the business you were
attached to
o) i. Describe the customers of the business you were attached to
ii. Explain how the business you were attached to copes with change
p) i. What techniques does the business you were attached to use for
managing labour turnover.
(ii) Explain the strategies used by the business to motivate employees
q) i. What challenges are faced by the business
ii. Advise the entrepreneurs on what actions to take to overcome the
challenges mentioned in g(i) above.
For any one business field trip you made as an Individual or as a group
a) i. Mention the objectives of the field trip.
ii. Draw a sketch of the physical layout of the business you visited.
b) Explain how the business ensures
i. Proper waste management.
ii. Proper maintenance of productive machine
c) i. Explain how the business ensures effective communication
ii. Give the competitive advantage of the business you visited
d) i. Advise the proprietor about the criteria to use for evaluating the business
visited.
ii. How do the sales personnel clear all the doubts and objections of the
customer without entering into controversial arguments and loosing?
e) i. Describe the categories. -of inventory possesses by the business
ii. Explain the factors the business you visited considers when selecting the
channel distribution.
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f) What measures are undertaken by the business to promote good employee
relations?
g) Advise the business visited on ways of promoting gender equality
h) i. Draw a logical organization chart adoption for the business you visited
(ii) Why is the organization chart Important for the business,
i) i. What techniques does the business you visited use to cope with
competition?
(ii) Describe the indicators of good customer care m the business
(j) i. How does the business visited handle difficult customers?
(ii) Discuss how the business you visited promoter, good employer relations,
k) i. State the personnel requirements of the business you visited
ii. Describe the marketing techniques used by the business you visited.
l) i. What contributions does the community make to the business you visited?
ii. How does the business avoid the common causes of failure?
m) i. What made the business you visited viable?
ii. What factors does the business consider when selecting the supplier
n) i. Explain the internal control systems used by the business to ensure
quality products.
ii. How does the business visited manage time so as to promote efficiency?
o) i. What measures does the business employee to ensure production of
quality products. ii. How does the business you visited improve cleanliness?
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CHAPTER SIX
QUESTION APPROACH
This chapter contains
 Common mistakes in entrepreneurship
 How to score highly in entrepreneurship education skills.
 Guidelines for writing entrepreneurship examination
 How to handle section A
 How to use qualifiers
 How to handle project management skills
How to handle financial management
Common mistakes made in entrepreneurship examinations
Candidates make numerous mistakes while (in the course) of writing their
examination papers and these mistakes cumulatively make them to score poor
grades in the subject.
1. Poor communication (language problem).
 More often students fail to put across their arguments because of weak
communication skills common errors. For example
 Use of wrong tenses and poor phrasing of points.
 Spelling mistakes making it difficult to comprehend the work of
candidates. Candidates are panelized whenever they fail to spell
correctly the technical words for example, the words that makes meaning
from the question paper.
 Incomplete sentences (changing statements and phrase) these make the
work sketchy and in most cases meaningless.
 Strong worded expressions are absolute yet they are unrealistic.
 Use of unique abbreviations is not allowed.
 Use of slangs in an essay.
Poor handwriting
This makes the work of the candidates to lack the flow of content and thus
nothing is conceived out of it. Poor handwriting also implies that all
technical words are misspelled.
It also lead to lose of flow of interpretation thus communication all made.
(a) Poor preparation
(b) Lack of subject content
(c) Having vague knowledge of all questions.
(d) Looking at questions at the surface without critically analyzing it.
Poor applicability and application of skills in project work by.
(a) Poor statement of the business name, location and address.
 Poor spacing of information
 Poor literature in documents of which must be polite.
 Poor writing of information seal without presenting correct
authenticity.
Lack of optimization (insufficient points) this is due to the following.
 Having no plan for answers to the questions and where those ones are
made are not flowing.
 Lack of concentration during the course of the examination.
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 Doing work in a hurry.
 Writing without focus due to lack of seriousness.
 Cramme work
 Weak masterly of concepts
Poor illustrations.
These include wrong examples incomplete diagrams, irrelevant statistical
data and wrong graphs and curves etc. It is clearly stated in the
instructions that credit will be given clear use of relevant illustrations which
must be well labeled and drawn to concept.
Lack of originality in presentation
This is manifested in essays, no clear instructions of points, use of similar
phrasing for all points, presentations that shows inadequate reach and
above all essays that portrays role learning.
Lack of consistency
 An essay which is not consistent is one which lacks flow of presentation.
The points are scanty, weak content and trial.
 The essays are such that each point does not have the same strength
and depth of analysis as the other. Usually students explain the depth
of analysis as the other. Usually students explain the first points fully.
 Strong and traditional points are presented last or not explained at all.
The work is disorganized and content confused. The making of
examining would imply that get only marks for mentioning points or in
most cases no marks points fully.
Untidy work
This is the work with lots of crossing, all sorts of delectations, such work is
difficult to follow and content is confused. Lots of marks are lost due to
disjoined work.
Poor time management
 This is shown in candidates failing to complete the work during the
stipulated cases included.
 Weak comprehension of question.
 Putting too much emphasis on tranquility for example if the student is
requested to mention but goes ahead to explain.
2. Poor writing of section A especially in 845/2.
 Poor statement of definition
 Poor distributing of points
 Poor statement of points
 Poor substitution of formulae and calculation and poor sampling of
units.
 Lack of strong points in section A.
HOW TO SCORE HIGHLY IN ENTREPRENEURSHIP EDUCATION
A systematic presentation is definitely what an examiner wants.
A candidate who wants to score highly should do the following:
 Read the instructions carefully, before starting to answer any questions.
 Plan for your work carefully, maturely, analytically and orderly.
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 Write a strong and traditional points first and while writing consider the
tense and key words in question. Candidates should also take not
applicability of certain points in relation to skills and context to subject
matter e.g. those who require a present continuous tense.
 Optimize the work by putting down all possible points to the questions.
Points should correlate to the marks the candidates are supposed to score
in the questions.
 Choose and attempt questions which are simple and clear. Take time to
analyze questions than hurriedly choosing a question with key words which
are not formula.
 Make sure that comprehensive points are not watered down by wrong
examples and other forms of illustrations.
 Write neatly, consistently, analytically and comprehensive.
 Use paragraphs even if the point is one word in both sections, do not outline
points.
 Make sure that your point is made within the first line of your paragraph,
why are you hiding appoint you are trying to make.
GUIDELINES FOR WRITING ENTREPRENEURSHIP EXAMINATION
 Endeavour to read adequately (read the topic and understand it very well).
 As a student make a good or right decision on which question to begin with.
 Make adequate summary on answers on each question to begin. This is to
enable you to be consistent with what are putting on the final paper.
 Answer to the maximum but do not over explain as answers in section A
need short and clear answers. In other wise answers to this section must or
should be concise.
 Budget your time well
 Use contrasting words clearly such as, whereas or while is a must.
 Answers to question need to mention, give, outline and so on needs or
should be written in paragraph form other than numbering them which is
childish.
 Gambling is strictly prohibited in the subject.
 Answers to questions with mathematical numbers, require students to write
a good and relevance formulae.
 Use business language
 Make adequate summary of your answers.
 Numbering of answers is prohibited in section B
 In section B there is no need of use of uncalled definition and conclusion.
 Punctuation of points is very important in section B.
GUIDELINES FOR WRITING PAPER TWO P230/2

Paper one is a practical paper with six questions of which two questions are
accounting questions and four questions are for project management skills.
Projects form a big component of paper two “A” Level Entrepreneurship
Education. The common questioning terms include design, prepare, draft,
present, formulate, draw, develop, write, show and others.
The following are the guidelines followed when answering the project questions.
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 All the business dealt with in project work must be given names, which
must not be abbreviated.
 The names of the business must reflect the nature of the business. This
may be an agri-business, trading, manufacturing or service business and
the line of business must be specific. If the business is a company the
name ends with Limited or Company or both.
 The address used must include box number and the town where the box
number is found.
 The location must be definite, it must include the District, County, Sub
county, Parish, Village, Town Road, Avenue, Street And Plot No.
 The date for preparing a document is that for the day of sitting the test/
exam.
 Heading for guidelines, programmes, schedules and budgets must
include the name and address of the business and/ or the avenue and
date.
 All amount columns for documents prepared and for any numerical
values must indicate the currency unit.
 Budgets prepared must include the heading, item, currency units for
amounts and total amount.
 Miscellaneous items or contingences must not be included in the
budgets and financial plan.
 Working capital requirements must begin with the major inputs of the
business.
 Present your work in logical order i.e. professionally.
 Relevant language must be used during presentation.
 Guidelines/policy documents must be prepared using
 Use shall, avoid, I shall we shall i.e. and stop personalizing information,
for the business plan. Use a present simple tense and do not speculate.
 Guidelines on contract, agreements and terms and terms conditions
must be definite i.e. specific.
 All documents must be framed and the name of the document must be
inside the frame.
 In letter writing, the complementary clause must be perpendicularly
below the business name and address. The salutation must be above the
subject line.
 Avoid poor spelling/ misspelling technical terms penalty is 100% i.e. 00
marks.
 Documents must be framed and a document name must be fixed inside
the documents.
 Avoid misspelling of words that forms a meaning from the question
paper.
 Try as much as possible to specify the business name in the opening
statement or heading.
 Do not enclose questions of a business plan.
 Where the language and qualifiers are needed use them.
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 Activities in a programme must be written in a present continuous tense.
 Policy documents writings, relevant language are a must.
 Avoid generalized or sweeping statements, let them be definite and
complete.
 The authenticity must be presented correctly for example
Signature ……………
Name ………………..
Title …………………
GUIDELINES FOR HANDLING ACCOUNTING/ FINANCIAL MANAGEMENT

SKILLS
Every person has an interest in accounting although principles of accounting
are the same everywhere but the best approach or style is the one which makes
it different. Put in mind the following while attempting accounting.
 Business in a person names must be written on the question paper.
 Abbreviations are not allowed apart from conventional abbreviation.
 Days must be relevant/ A year is A must
 A heading is a must and must be in three lines.
 Numerical figures in the amount column must posses units.
 Subtotals and total must be on the same line.
 Interpretations/ comments must be given independently.
 For accounting statements use any format but use it correctly.
 For business calculation, use a correct formulae, substitution and final
answers.
 Avoid incomplete substitution of formulae.
 Avoid skipping vital needed steps while answering work of financial records
 Narration and amounts must be put in the same line.
 Date units, ledger must be put on every entry if it is required.
GUIDELINES FOR WRITING PAPER ONE P230/1
This is a theory paper which helps the learners to develop the knowledge,
concept and skills, it is composed of two sections A and B.
Section A has one question with 5 sub questions or Romans i.e. “a, b, c,
d,e………”. it needs short answer for twenty marks
This section has six optional questions from number 2 – 7 each carries twenty
marks, candidates attempt any three questions.
This paper commonly involves applying knowledge from the classroom
environment to the question.
1. Answers must be concise and precise
a) Definition
 Definition must be clear
 Definitions must be stated the way they are
 Avoid misspelling of technical terms in a definition to say words that
make a meaning from the question paper.
 Define the term using is or this is.
 Questions that requires distinguishing use while and whereas
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 Questions with calculations, state the formulae correctly, substitute
the formulae correctly and write the final answer with units.
 Avoid poor handwriting
 Open up by giving more points than asked for.
 Write an opening statement on each question.
 Space your work such that work can easily be seen by the examiner.
b) Questions require giving sources, essentials, elements, principles,
characteristics, features, components, among others, mention,
appointing and explaining it.
c) Questions that calls for aims, goals, functions, reasons, purposes,
objectives, rational, why, begin with “TO”.
d) Why may: begin with or use “To”
e) When may: begin with – when, where, if, in case.
f) Questions that requires measures, techniques, modes, ways, methods,
how, solutions, penalties; begin with By, Though or present continuous
tense.
g) Suggest measures that can be, should be, have been and are being
taken, begin by/though or use a present continuous tense.
h) What circumstances, situations, conditions; begin when, if, in case or
where.
i) Procedures or steps, processes, activities involved in chronological order
and use a present continuous tense.
j) Explain the factors considered, give
 A neutral point
 Use one sided explanation
 Do not use speculative explanation
k) Explain factors influencing or determining, affecting, influencing etc
 Give neutral pint
 Do not use speculative explanations
 Give/ write a two sided explanation with a limiting and favoring side.
l) Explain challenges: use words like
 Inadequate
 Insufficient
 Low
 Limited
 Inappropriate
 Unfavorable
 Un proper or challenge of
m) Questions that require to write or give responsibilities and roles
(i) Use an action verb
(ii) Use a present continuous tense for example
a) What is the role, explain the role, describe the role. Give any
positive role
b) Examine, discuss, assess the role. Give both positive and negative
role.
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n) Combines questions for example. Explain advantages of paid
employment and self employment treat each part separately.
o) Questions that require comparing for example paid advantages of self
employment over paid employment.
p) Questions that require giving qualities use “should”.
q) Questions that require to give effects, impacts, implications,
consequences. Give both positive and negative answers.
r) Single edged questions of biased questions, give biased answers.
s) Question with a change in, decrease in, variation, differences in begin
with that very word.
t) Questions that require explaining, describe, assess, give point favoring
and limiting that concepts.
u) Questions that require to give benefits, advantages, uses, merits of what
importance relevance, use a present continuous tense, for example, it
helps, it enables, if the answer is a positive one.
“The Struggle Continues”

ENJOY THE BOOK
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COMMON SECTION A TERMS.
An enterprising person: is someone who takes on imaginative and risky
projects. he is a person who is ambitious and energetic.
Entrepreneurial culture: is a culture that encourages the whole population
to take advantage of abundant opportunities in the environment.
Motivation: it is an inner state that activates or moves the intervening
variables. i.e. international psychological process which are not directly
observable and which turn account for behaviour of individuals.
Achievement motivation; this is the intense urge to excel and do something
unique. it is a factor that relates to one’s aptitude for success.
Creativity: is the ability to come up with innovative solutions to needs /
problems and to market them.
Innovation: is the way of transforming the resources of an enterprise through
the creativity of people into new resources and wealth. it is the act of
introducing something new.
Change: is to give a completely different form or appearance to an object. it
involves transforming an object into a completely different one.
Developmental change: this occurs when a company makes an improvement to
their current business.
Transitional change: this type of change involves replacing existing processes
or procedures with something that is completely new to the company.
Transformational change: this type of change occurs after the transitional
period. it involves making drastic transformations in the business rather than
methodologically implement new process.
Negotiation: is the process of bargaining that precedes an agreement. it is a
meeting between two or more parties with an intention of reading an agreement
or compromise over issues that is of mutual interest.
A brand; is a name to which a set of associations and benefits has become
attached in a consumer’s mind.
Personal branding: is a process by which individuals and entrepreneurs
differentiate themselves and stand out from the crowd by identifying and
articulating their unique value propositions.
Or
Is the process of clarifying and communicating your unique and differentiating
qualities, skills and experience in a compelling way in order to achieve your
professional or business goals.
Gender: refers to the manner in which males and females are differentiated
and ordered in a given socio-cultural system.
Entrepreneurial environment; refers to a combination of external factors and
their organic integration which make an impact in the business start –up
process by the entrepreneurs.
Uncertainty: means unknown or a possibility of unexpected occurance or
risk.
Opportunity orientation; is the ability to recognise and analyse market
opportunities.
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Social entrepreneurship; is the creation of innovative enterprise to make
positive and sustainable impact on society and /or the environment.
Natural resources; natural resource is something important to our survival
or needs as a person that is available from the earth in a limited quantity.
Planning; is a decision making ie. deciding what to do, how to do it and when
to do it.
Inventory; refers to the stock of goods held in the business at a given period of
time.
Inventory management; these are activities aimed at ensuring that the right
quantity and quality of stock required is supplied at the required time.
Inventory control; refers to the system which ensures that the right quantity
and quality of inventory required is supplied at the required time without
unnecessary investment in inventory costs. it includes control of raw
materials; semi finished and finished goods, office supplies and goods under
repair.
Re-order level. refers to the minimum level below which the stocks should not
fall before fresh new orders are placed.
Lead time; refers to the time it takes from when an entrepreneur places an
order for goods and when the ordered goods are received.
Working capital ; this is the amount of money used to buy stock for a given
business or to meet daily financial operating needs of the business.
Stores; refers to places where stock of raw materials or goods are kept before
they are sold or dispatched to business which ordered for them.
Stock cards: these are cards used for recording stocks received and issued in
the store.
Stock requisition and issue forms. is a document that shows details of goods
being requested for and the corresponding record of issues.
Shysical stock counting; this refers to the counting of stock physically to find
out what is in store and cross check to what is expected to be there as per
stock cards.
Stock reconciliation; this refers to the process of updating and balancing all
the records regarding what is in the store so as to give a true record of what
should be there.
Stock taking; this refers to the actual counting of stock available in the store.
An employee: is a person who works for the business in return for a wage or
salary. an employee provides skilled / semi skilled or unskilled labour.
Semi- skilled labour. is one who possesses certain skills in his area of work
and can be able to perform a job in his area; however, close supervision is
required.
a skilled worker; is any worker who has some special skill, knowledge or
ability in his work.
un-skilled employee; is one who possess no special training and whose work
involves the performance of simple duties which require the exercise of little or
no independent judgment or previous experience although familiarity with the
occupational environment.
Labour planning; this refers to the determining of the number of workers skills
and wages or salaries of the labour force.
217
Machinery; machinery refers to a group of machines in general that gets work
done.
Equipment; equipments are things needed to do some work. some machines
which are specific for particular functions are also referred to as equipment. eg.
Office computers.
Technology; refers to the know –how, design and intellectual input of doing
things.
Plant lay out; refers to the arrangement of physical facilities such as
machinery, equipment, furniture etc.
Plant location; this refers to the choice of an area and selection of a particular
site for setting up a business or factory.
The site plan. is a drawing of the entrepreneur’s premises showing the
property lines and structures that currently exist on the land for example
factory buildings, fence, garage, flower garden etc.
Cost of production; these are expenses incurred when producing goods and
services.
Elements in costing; this is an analysis of the various items which together
form the selling price of a manufactured article sold by a small manufacturing
unit at a profit.
Direct material costs; refers to those materials that can be physically
identified and traced to a particular product as part of the finished product.
Direct labour cost. (direct wages) this consists of the labour that can be
specifically identified or traced with the production of a particular product.
direct expenses; these are expenses that are directly linked with the
production of a particular product for example hiring of machinery to produce
a particular product, fuel, energy for running the machines.
Indirect materials; these are materials that are not traceable to a particular
product for example glue.
Indirect labour; it consists of supportive labour of a product for instance
manager, administrators, watchmen, gatekeepers, secretaries, tea girls etc.
Indirect expenses; these are a type of business expenses that are not linked
to a specific production or a given range of production level.
Selling and distribution overheads; these are indirect costs incurred during the
selling and distribution of goods and services. for example advertising, sales
promotion, delivery expenses, salary of foremen, cost of samples given to
potential buyers, free gifts, displays and exhibition, printing and stationery,
packing cases, insurance for warehouse, delivery vans etc.
administrative overheads; these are indirect costs incurred by the business
during the formulation of policy, direct control, management and supervision of
its affairs for example printing and stationery for administration,
administrative salaries and allowances, postage and stationery, telephone
expenses, heating and lighting, depreciation of office equipment, general
expenses etc.
Quality; refers to the ability of goods or services to meet/ satisfy the customers
requirements or wants.
Quality policy; this refers to the overall intentions and direction of a business
or an organisation with regard to quality as prescribed by the top management.
218
Quality planning; it refers to establishment of what the business or an
enterprise is planning to do so as to achieve quality.
Quality control; this refers to the activities and operational techniques that
are used to fulfil the requirements for quality.
Quality system; this refers to the organisational structure, procedures,
processes and resources needed to implement quality management.
Quality assurance; it refers to all the planned and systematic activities which
are to be implemented within the quality system so as to achieve quality.
Competition; is the battle between business to win customer acceptance and
loyalty.
Pure competition; this exists in a market in which no single buyer or seller
has influence over the products sold in the market. under perfect competition,
there are many firms selling identical products with no firm large enough,
relative to the entire market, to be able to influence market price.
Monopolistic/ imperfect competition; this describes a market where
multiple firms offer variations of the same product or multiple products are
offered, each with variations.
Oligopoly; this is a market dominated by a small number of participants who
are able to collectively exert control over supply and market price.
Monopoly; a monopoly is an enterprise that is the only seller of a good or a
service.
Entrepreneurship
This refers to having a dream or vision and the motivation to put this dream
into reality.
Entrepreneur
This refers to a person who under takes risks of a new business.
Entrepreneurship education
This is the study is concerned with providing students with basic knowledge
and skills of creating of creating and operating their own businesses
successfully.
Leadership skills
Leadership is the ability of a person to influence other people to strive willingly
to work towards achieving set business objectives.
Leadership styles
This is the behaviour the leader exhibits to others when she/he tries to
influence them.
Decision making
This is the process of identifying and selecting a course of action to deal with a
problem or take advantage of the opportunity.
Work
This is any productive activity that results in some thing useful. it is the use of
bodily or mental powers.
Job
This means one particular task.
A career
This is the work a person does over a period of years.
Physical work
219
This is the use of the body to perform a given task.
Mental work
This is the use of mainly the brain to perform a given task.
Myths
These are the false beliefs or ideas about certain things.
Life style patterns.
this is the way we live.
Dignity of work
This is the importance and value one attaches to work.
self employment
This is where one goes private by way of utilizing his/ her resources to start his
or her own business enterprise.
Paid employment.
This is where one gets employed by another person and is paid a salary or
wage on a periodical basis.
Income
Income refers to what one earns from engaging in any legal gainful under
taking.
Consumption
This ranges from buying household commodities or refers to using the income
earned to satisfy one’s individual needs.
savings
This is reserving part of one’s income for future use.
A goal
This is the aim of achieving something.
Success
This is the realization of a worthy invention.
Risks
A risk is a situation where one is required to make a choice between two or
more alternatives.
low risks
These are very minimal risks which do not normally yield a lot of benefits to the
entrepreneur.
Moderate risks
These are risks that can, to some reasonable extent, be forecast, calculated and
managed by an entrepreneur.
High risks
These are risks whose chances of happening are very high and yet the
entrepreneur has little or no control over them.
Risk assessment
this involves determining the potential success that will arise out of the risk
not happening, and the potential loss arising out of the risk happening.
Business
A business is an economic activity which carried out with a desire to make a
profit.
Micro business
220
These are the smallest size of business operated in uganda.
Medium business
These are very well established businesses.
Small business.
These are businesses which operate on a small scale.
Large business
These are businesses established and operate on a large scale.
Agri business
These are business whose operations involves producing and selling of
agricultural product for a profit.
Crop production
This type is engaged in the production and selling crops.
Live stock production

This type is engaged in the selling and rearing different animals and animals’
products.
Horticulture production
This is the growing of vegetables for sale.
Floriculture
This type is engaged in the growing of flowers for sale.
Aqua culture
This type is engaged in fish farming.
Apiculture
this is keeping of bees for honey.
Manufacturing business
These are business that transform or process raw materials and make
products that are significantly different from the inputs.
Agro processing businesses
These are the ones, which use agricultural products as their raw materials to
make different products.
Beverage manufacturing businesses
These are engaged in a manufacturing soft and alcoholic drink.
Chemical manufacturing businesses.
These produce various products from a mixture of different chemicals.
Plastic manufacturing businesses
These are engaged in the manufacture of plastic products.
Textile manufacturing businesses
These are engaged in the manufacture of cloths.
Extractive manufacturing businesses
These are engaged in producing items through extraction of different raw
materials.
Trading business
These are business involved in the buying and selling of goods for a profit.
Retail trading business
These are businesses which sell their goods to the final users or customers.
Small scale traders
221
this is a group traders who buy goods for resale at a profit operate at a small
scale.
Service businesses.
These are businesses that provide intangible benefits which satisfy customers’
needs and which they are willing to pay.
Business opportunity
This is an identified situation or chance that can be turned into a real and
profitable business.
Creativity
This is the power or ability which enable entrepreneurs to come up with
exciting business ideas.
Demand
This is the amount of the business product that the people are willing to buy at
any given price.
Market assessment
This is the process of determining the market for the product of a business.
Partnership
This is an association of two or more persons who have identified a common
interest and have decided to carry on business as co- owners.
Joint stock company
This is a corporate association formed to carry out certain specific functions.
Co-operative societies
This is a voluntary organization set up by a group of people having a common
interest.
The business plan.
A business plan is a management tool which focuses on the nature of the
business in a logical organized manner.
Marketing plan
This is the analysis of the possible and opportunities of the business being
planned in the market situation.
Production plan
This is an analysis of the projected needs for producing or buying the proposed
goods or services.
Organizational plans
This is the frame around which the people, machines, equipment and other
physical parts of the plan are put together to have an operating business.
Action plan
This is the careful laying out of the sequenced steps towards achieving the
business goal.
Marketing research
This is a systematic gathering, recording and analyzing of information about
specific issue related to the market.
Management
this is the science of getting things done through people and proper utilization
of the business resources.
Organization
222
Organizing refers to identification of what activities to be done, grouping those
activities section/ departments and designing the activities to particular
individuals to carry them out.
Communication
This is the process of passing information and understanding from one person
to another.
Motivation
This is the process of encouraging people to give their best towards the
achievement of desired goals of an enterprise.
Budgeting
A budget is a detailed plan that shows the use of finance and other resources
over a given period of time.
Management tasks
A task refers to activities organized in units for particular purposes.
Personnel management
This is also referred to as human resource management.
Financial management
This refers to routine functions, which are performed within the enterprise to
ensure efficient use of funds.
Production process
This is refers to the steps involved in producing a good or service.
Inputs
These refer to factors of production or things which must be in place in order
for production to take place.
Capital
This refers to already produced goods used in production of other goods or
services.
Human resource
This refers to human effort used in the production process.
Information
refers to the feed back about the inputs, transformation process and out put to
ensure quality product and cost effectively at all stages for competitive
advantages in market.
Time frame
Any given job requires time with in which it can be done.
Transformation
This refers to processing changing the materials or inputs to produced goods
that are more valuable than the inputs.
Feed back
This refers to information the business gets about its production process
notably
Employees
An employee is a person who works for the business in return for a wage or
salary.
Business location
Refers to the setting of a particular business in a particular area.
223
Raw materials
Refer to basic materials from which products are made through transformation
process.
Packaging
Refers to the wrapping, crafting, and filling of goods to protect them from
spoilage.
Utilities
These are services that are needed to support production and business
operations.
Transport in planning a business
Refers to the physical movement people from one place to another.
Marketing
Is the processing of planning and executing conception, pricing promotion and
distribution of ideas to create exchanges that satisfy individuals?
Marketing performers
These are organizations or individuals that under take one of more marketing
functions.
Selling
Involves oral communication with prospective buyers by the entrepreneur or
paid representative for the purpose of making a sale.
The marketing mix
Marketing mix describe the specific combination of marketing elements uses to
achieve the organizations or entrepreneurs’ objective and satisfy the target
market.
Customer products
these are goods and services destined for the final consumer for personal,
family or household use.
Industrial products
These are goods and services purchased for the use in the production of other
goods and services.
Promotion
Promotion is any form of communication used to inform, persuade and remind
people about an organization or entrepreneur’s goods, services, image, ideas,
community involvement or impact on society.
Personal selling
This involves direct face to face relationship between the seller and the
prospect or customer.
Channel of distribution
A channel of distribution is the combination of institutions through which a
seller makes products to the user or ultimate consumer.
Recruitment
This refers to the process of locating and identifying suitable candidates for a
job.
Selection
This is the process involving a series of steps from application form to
interview, testing personal reference and physical examination to find out who
is suitable for what job.
224
Induction training/ introductory course
This is the method of introducing new entrants to the business with the object
of gaining their confidence.
Job description
This is the scientific study and statement of all facts about a job.
Administrative expenses
These are expenses incurred by the business daily basis in order to support the
production and marketing process.
book keeping
Book keeping consists of recording, classifying and summarizing of business
events that result into transfer of money from one person to another.
Source documents
These are documents prepared when a transaction is taking place, to provide
evidence that a transaction has actually taken place.
Cash sales slip
This is used for cash transactions.
Cash receipt
This is a document which is issued when a debtor pays for the goods already
delivered or services already rendered.
Cash payment voucher
This document is prepared for internal use.
Bank deposit slip

This document is issued by the bank to its client to confirm the cash or
cheques have been deposits onto the bank account.
Cheque counter fossils
This is where the details of the information on the cheque issued is recorded
and detached when a cheque is made.
Bank statement
This is a document that is issued by a bank to it’s client for a given period.
Debit note
This is a document sent by the seller to buyer to correct an under change in
the original invoice.
Credit note
This is a document used to show that there is a reduction in the amount owed.
Cash books
These books are used to record all business transactions involving in flow and
outflow of cash.
Purchases day book
This is used to record purchase on credit made by the business.
Sales day book
This is used to record sales made on credit by the business.
Return out wards book
This is used to record goods returned to the suppliers by the business.
Return in wards book
this is where goods returned by the customers are recorded.
General journal
225
This records all other transaction made by the business which cannot be
entered in the books above.
Ledger book
This is where all the transactions of the business entered for a second
recording.
imprest system
This is a method by which a measure of control is kept of petty cash
expenditure.
Credit transaction
This happens when goods or services are sold or bought and payment for them
is expected at a future time.
Errors of omission
This is where a transaction is completely omitted or left out from the books.
Error of principle
This is when an item is entered on the wrong account though it may appear on
the correct side.
Error of commission
This is when a transaction is entered and double entry system made but in the
wrong personal account.
Error of original entry
This is a type where the original figure entered in an account is not correct.
Complete reversal of entries
This is where the correct amounts are used but each item is shown on the
wrong side of the account.
Compensating errors
These are errors where a mistake made in one account on the debit side is
equal in amount with another mistake made on the credit side of another
account just by coincidence.
Error of duplication
This is when a transaction is entered correctly in the books and the double
entry.
Gross profit
This is the over all profit of the business.
Net sales
This refers to the actual amount of money received after selling the goods at
the end of a given periods.
Cost of sales/ cost of goods sold
This is the amount spent by the entrepreneur on the goods already sold in a
given period.
Stock
This refers to the value of goods in the business ready to be sold.
Profit and loss account
This is a summary of all profits/ gains on one side and all expenses and losses
of the businesses on the other hand.
Expenses
226
These refer to the amount paid or incurred for services rendered in the running
of the business.
Carriage out wards

This is the amount spent by the business to transport the goods of their
customers to their premises.
Balance sheet
This is a statement showing the liabilities and entrepreneur’s capital on one
side.
Assets
These are proprietor and possessions of the business.
Fixed assets
These are acquired and held permanently for the purpose of creativity
production capacity.
Current assets
These are possessions that can easily be changed or realized into cash and are
retained for a short time not one year.
Liabilities
These are obligations or amounts that a business is legally bound to pay.
Long term liabilities
These are business debtors or claims payable by the business over along time
e.g. bank loan. individual loans, capital creditors e.t.c.
Short term liabilities
These are claims on the business by out sides’ payable within a short period,
not exceeding one year.
Order of permanency
This is the one where the most permanent items are written first and the least
permanent written last.
Working capital
Working capital refers to the short-term capacity that enables the business to
use its fixed assets.
Direct materials
This refers to those materials that can be physically identified with the
production of a particular production.
Direct labour costs (direct wages)
These consist of the labour that can be specifically identified with the
production of a particular product.
Indirect costs
These are costs, which an not easily be traced to a particular product.
Indirect materials
theses are ones that are not traceable to a particular product.
Indirect labour
These consists of supportive labour of a product e.g. salaries paid to factory
manager, gate keep e.t.c.
Indirect expenses
These are known as over head expenses are not linked to specific product or a
given range of production level.
227
Selling and distribution heads
These are expenses which may not be attached to a particular section of
production.
Administrative over heads
These are expenses incurred by the business during the formulation of policy.
Financial institutions
This is a business firm whose principal assets are financial assets or claims
such as stock, bonds and loans instead of real assets and raw materials.
Financial intermediaries
These work to satisfy the financial requirements of both the ultimate borrow
and ultimate lenders.
Central bank
This is a banking institution established and managed by the government to
control and guide the other financial institutions in the country.
Commercial banks
These are financial intermediaries that offer a wide range of banking services
and are of particular importance entrepreneurs.
Development banks
These are financial intermediaries that concentrate in providing long- term
development loans to their client.
Special banks
These are banks that serve a special type of customers are aimed at providing a
special type of services.
Merchant banks
These banks specialize in financing and facilitating trading business.
Saving banks
These are banks mainly intended to provide a safe place for keeping money and
to promote a habit of saving among individuals.
Micro finance institutions

These are financed institutions that mobilize savings and provide credit to
micro and small savers.
An account
This is a relationship or record of dealing between a customer and a financial
institution.
A cheque
This is a written order from an account holder to his/her banker to pay a
specified sum of money to the person named within.
Drawer
This is the person who writes and signs the cheque.
Payee
This is the person to whom the cheque is payable that is the one paid by
cheque.
Drawee
This is the bank to which the cheque is addressed.
Standing order
228
This is an instruction in writing by a client authority his/her banker to make
specified period is payments for a stated period.
Bank draft
This is a document bought from a bank ordering one of its branches or goals
either in the same country or abroad to pay on demand a stated sum of money
to the person named.
Traveler cheques
These are cheque issued by the bank in fixed accounting to a person who pays
for them in advance.
Insurance
This is a fund into which individuals or organizations who are subjected to
certain risks pay s carefully assessed contribution and from which the few who
actually suffer loss from the stated risk can receive compensation to indemnity
than for a loss to make good the loss suffered.
Risk
This is a possibility of undesirable events occurring.
Insurable risks
These are risks that can be legally insured.
Non- insurable risks
These are risks that cannot be legally insured.
Fidelity guarantee
This is a policy taken by employers to given them right to claim from the
insurance company when one of the employees embezzled business funds.
Graduated tax
This is tax charged on every individual who is above 18 years and is in the
working class.
Pay as you earn
This is a tax imposed on the wages of an individual.
Income tax
This is a legal requirement for any person to pay.
Development tax
This is a tax charged by local authorities on business and employees in their
locality.
Sales and use tax
This is tax changed on transfer of tangible personal properties.
Value added tax
This is tax levied on the value of goods transferred at each stage of the
productive distributive process.
Company law.
This is the law, which governs the formation, registration conduct and
operation of business in uganda.
Contract
a contract is a legal landing agreement.
Special contract
These are formal contracts also known as contracts under seal.
229
Simple contracts
These are informal contracts and may be made in any way orally.
Communication
Is the process of exchanging information.
Inflection
This refers to the use of the voice to attar the meaning of a spokes message.
Enumeration
This is the process of listing several items in a particular order.
Natural environment
These are natural things that surround business and society.
Physical environment
This deals with the topography of the country consisting of mountains, hills,
valleys e.t.c.
Biological environment
This deals with the ecology of the country that is anything that has life.
Social environment
this is concerned with the human beings and their behaviours.
230
CHAPTER SEVEN
GLOSSARY
Accounts payable: The money a company owes its suppliers.

Account receivable: The money owed to a company by its debtors.
Annual report: A report containing a summary of the company’s operations
and pertinent financial information.
Assets: Anything owned that has value.
Balance sheet: A financial statement summarizing the firm’s assets, liabilities,
and net worth.
Best practices: Activities or procedures that are more efficient and effective
than others that exist.
Board of directors: The government body of a corporation elected by
shareholders to make policy decisions and appoint officers to run the company.
Book value: The amount of individual of dividend that will be distributed to
stockholders after all company bills, taxes, wages and salaries, charity
donations, bonuses, and JA Area Office invoices have been paid.
Break-even point: The level of output at which total revenue equals total
costs.
Business plan: A document that details a company’s mission and goals,
management, marketing, and finances.
Bylaws: A set of rules adopted by an organization to govern members and
regulate its affairs.
Capital: Money, goods, equipments, or land used to produce other goods or
services; money used to start or expand a business. In accounting it is the
business equity or net worth, which equals total assets minus total liabilities.
Capital goods: The machinery, tools, and equipment used in production.
Capitalization: The sum of the various securities issued by a corporation,
including bonds, stocks, and surplus.
Charter: A government document creating a business and defining its right
and limitations.
Contract: A legally affordable agreement between two or more persons.
Corporation: A business managed on behalf of its owners/stockholders, a legal
entity created by government charter to carry on approved activities.
Cost of goods sold: An accounting term for the combined costs of material,
labour, factory overhead, and other direct expenses involved in producing
goods for sale. It does not include costs of selling or general management.
Credit: In accounting, a bookkeeping entry constituting an addition to an
income, net worth, liability account, or a deduction from an expense net or
asset account. Each credit entry has a corresponding debit entry.
Debit: In accounting, a book keeping entry constituting an addition to an
expense or asset account, liability account, or a deduction from an expense net
or asset account. Each debit has a corresponding credit entry.
231
Demand: The quantities of a product or services that people are willing and
able to buy at various possible prices at a particular time and place.
Depreciation: A decrease in value of property due to wear or obsolescence. A
decrease in the amount of goods or services that a given sum of money can
buy.
Dividends: Payments to stockholders from a company’s earnings.
Double- entry bookkeeping: A standard business practice that requires that
each transaction be entered twice – once in the debit column of the record, and
once in the credit column. Double- entry bookkeeping helps prevent mistakes
and tracks errors.
Entrepreneur: An innovator, one who recognizes opportunities and organizes
resources to take advantage of them.
Expenses: Something that causes spending; money spent or needed for doing a
job or running a business.
Fixed costs: The business expenses that remain the same, regardless of the
number of products produced or services provided. Wages, rent, marketing
expenses, and equipment are examples of fixed costs.
Franchise: A license to operate an individually owned business as if it were a
part of a large chain.
Gross profit: The difference between sales and the cost goods sold.
Income: Money received in the form of wages salary, rent, or interest. Again or
continuing benefit usually measured in money received from capital or labour.
Income statement: A summary of a firm’s revenue, costs, and taxes over a
period of time.
Income tax: A tax on a person’s or a company’s income.
Lease: A transfer of property use of a period of time in return for a rental
payment. A lease is a binding contract.
Liability: Any claim on or debt of a business or individual; what a business
owes.
Liquidation: The payment of all obligations and the conversion of assets into
cash for apportionment among business owners.
Loss: In accounting, any excess of costs over income. Loss is the opposite of
profit.
Management: Group of managers; the act of controlling or directing.
Market value: The current or prevailing price of a product as indicated by
current market quotations.
Marketing: The business activities that take place between production and the
purchase of the product.
Net profit: The profit left after expenses.
Net worth: Capital; the difference between assets and liabilities.
Opportunity cost: The next best alternative given up when making a choice.
Parliamentary procedure: The standard rules a company president must
observe while conducting meetings.
Partnership: A business owned by two or more people.
Par value: Face or nominal value; the value imprinted on the stock certificate.
Productivity: A measure of output per unit of input, or output per worker per
hour.
232
Profit: That which remains after the costs of the business have been met.
Proxy: A written authorization transferring voting rights to another at a
stockholder meeting.
Salary: Money paid to an employee for work done, usually given bi- monthly or
annual rate regardless of hours worked.
Share stock: A portion of interest in a business usually referred to as a share
of stock. A share in the ownership of a corporation.
Sole proprietorship: A business owned by one person.
Supply: The amount sellers will offer for sale at different possible prices at a
particular time.
Variable costs: Those costs that can increase or decrease as output expands
or contracts.
Wage: Money paid to an employee for work done, usually given on an hourly,
daily, or on a piecework basis.
The last word
Finally we wish to acknowledge the help of Examination boards towards
the use of their questions as donated by spec.
We trust the new generation of students will indeed find that this text is
useful and will promote their understanding of Entrepreneurship of
Uganda.
Entrepreneurs are different set of people. They often see things that fail
to be noticed. They endeavor to bring about change and foster growth,
they believe in themselves, strive and move forward to get where they
want to be for the progress of the nation.
233

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P230/1

(ii) Under what three circumstances may an insurance policy be

(e) (i) What is meant by sustainable competitive advantage?

Teachers’ canteen balance sheet

Shs Shs Fixed Assets Shs

Capital 89,000,000 Buildings 82,000,000

Maliya ensures that customers are satisfactory served. Regular customers

(b) Write up a three column cash book and balance it.

209. You have completed your Advanced Level Certificate of Education

220. You are operating a business dealing in sale of electric appliances.

(b) You are required to compute the following

Closing stock was valued at shs. 800,000

2. Muhwezi imported 10 BMW cars from Germany at a CIF value car of £

Details Dr (Shs) Cr (Shs)

10. The following balances were obtained from books of WADDANGA

EXERCISE FOR CASE STUDIES

Setting up an imaginative sale program, Ms Chichi succeeded in profitably

I partnered with a friend but we disagreed and we had to go separate

Owners of the neighbouring kiosks have a misconception that the Bagumas

Total Daily Production by Size

Exhibit 2: Presses in Operation

Exhibit 3: Raw material prices, July (2011)

15cm 4,400 2,500 1,500

It is why I am scaling down on juice (Cheers) processing to farming. You

a) Show how innovation was paramount.

It took determination to proceed with the activity, especially considering how

Onen said he started engaging in serious commercial agriculture with the

“Since, we were 16 members; we resolved to re- plant these 15 basins of seeds

At this point in time, we in 2007 decided among ourselves to distribute these

“I call up on the government to encourage agro-processing and market

He also appealed to the government to assist them (farmers) especially those

Constant changes: constantly re-organizing, shuffling people around and

Unfair promotion: If management alienates staff by promoting someone who

Therefore employees do not want to be at the other end of the barrage of

Answer the following Questions

A visit to Paul Ssembaguya’s farm in Sembabule District best proves why he is

He has distributed thousands of goats to farmers across the Masaka sub-

Basing on his success, the National Agricultural Advisory Services (NAADS)

To acknowledge receipt of the goats, delivery agreements are signed between

Ssembaguya attributes his success to working with people and employing

Owing to the success of this business, President Museveni paid Ssembaguya a

A SAMPLE OF SET PAPERS

To add strategic advice and direction he has assembled a board of directors

On December 31st 2012 Kirabo’s records showed the following:

a) Use the above information to develop a balance sheet statement for

Networking: It’s who you know.

Mentoring: Advice from those who have been there.

SECTION B: BUSINESS CLUBS.

3. With reference to school project owned by your school business club;

In January 2009 Sam was employed as a Shamba boy in Metha sugar

Sam is currently helped by his sister to run a stationery shop. The

Asha, the director General of the company, assumes the responsibility of

Butali applied to the organization and his application was accepted

After getting the money she contacted TRIDEP to advise her on

Kamukama’s business makes profits on which it pays taxes to the

SCHOOL BUSINESS CLUB

4. For any field attachment you carried out;

b) “Never argue with a customer. Adopt the attitude that the

Tips we have used in buying

5. As student of entrepreneurship. You visited various businesses in your

Her savings stolen

Suzan is gradually extending her market to other supermarkets and

7. What is meant by “economic of large scale production”? Give examples