PAPER 1

1. You intend to establish a shoe-making workshop:

a) What factors would you consider when choosing a site for your workshop?

b) Explain the factors you would consider when selecting raw materials for your business.

c) How would you package your products?

d) Outline the ways in which your business will benefit society.

2. a) What is meant by the term "imprest" as used in accounting?

A company's petty cashier is given an imprest of shs1,200,000 for a period of 2 weeks. The expenditures were as follows:

Particulars shs

March 2 bought 2 reams of duplicating paper 60,000

3 paid transport to town 40,000

4 bought tea accompaniments for board member's 100,000

5 bought 2 dozens of stencils @at 120,000

6 paid compound cleaner's wage 60,000

8 bought 10 brooms for compound cleaning @ at 10,000

10 paid for stamps and postage 50,000

11 paid money for special hire 120,000

12 bought 3 dozens of omo for cleaners @ at 12,000

15 bought ink for duplicating machine 150,000

17 bought sodas for members of staff 120,000

Required to prepare:

b)Apetty cashbook on imprest system, with analysis columns for stationery, travelling, cleaning and general expenses.

c) balance the petty cashbokk and make relevant entries in the general ledger.

3. Your entrepreneurship club has been given a large piece of land by the school for a project:

a) identify thetypes of agribusiness you can develop on that land.

b) Design a budget for any one of the projects identified in (a) above.

c) Suggest measures you would take to achieve maximum output from the land.

d) Explain the factors you consider when pricing your agricultural products.

4.The following balances were extracted from the trial balance of EDDIE trading company as at 31st December, 2004.

Particulars shs

Stationery 550,000

General expenses 900,000

Rent 900,000

Motor expenses 500,000

Commission received 500,000

Purchases 86,000,000

Sales 100,000,000

Opening stock 30,000,000

Closing stock 25,000,000

Buildings 130,000,000

Debtors 10,000,000

Creditors 15,000,000

Overdraft 9,000,000

Machines 59,000,000

Capital 120,000,000

Drawings 13,000,000

6 year's bank loan 83,650,000

a) Required to prepare:

i. ) A trading, profit & loss Accounts of EDDIE trading company as at 31st December, 2004.

ii. ) A balance sheet.

b) State any three reasons for preparing final accounts.

5. You have been asked to develop a product of your choice in order to participate in an international trade fair:

a) Mention the factors you would consider when developing the product.

b) How would you detertimine the price of your product?

c) What other types of promotion would you use to market your product other than the trade fair?

d) Describe the steps you would take to plan a promotional programme for your product.

PAPER 2

SECTION A: (40 marks)

1. a) i) Mention any two challenges facing agribusiness in your country.

ii) Suggest any two solutions to the challenges in a) (i) above.

b) i) What is meant by factors of production?

ii) State any three factors of production.

c) I) Define the term "price".

ii) Give any three methods of pricing products.

d. The following particulars were obtained from JET (U) Ltd as at 30.06.2005:

shs

Sales 30,000,000

Purchases 15,000,000

Opening stock 10,000,000

Closing stock 5,000,000

Expenses 4,000,000

Calculate the: i) cost of sales,

ii) net profit.

e)i) What is meant by the term "advertising"?

ii) Give any three factors an entrepreneur should consider when choosing a medium of advertising a product.

f) Mention any two uses of a business plan to the:

i.) Entrepreneur

ii. Employees of the business.

g) i) Distinguish between marine insurance and aviation insurance.

ii) State any two benefits of insuring a business.

h) i) Define the term "contract".

ii) Give any three circumstances under which a contract may be discharged.

I) Given that a purchase invoice shows 5 items of shs8,000,000 each, less trade discount of 25% and cash discount of 10%, if paid within the credit period:

Calculate the amount: i) of cash discount

ii) to be paid to the supplier.

j) i) What is a trial balance?

ii) State any three errors that affect the trial balance totals.


SECTION B (60 marks)

2. a) In what ways do businesses affect the natural environment?

b) Suggest measures that should be taken to reduce the negative effects of business on the environment.

3. a) Why is it necessary to ensure quality control during production?

b) Explain the factors that should be considered when purchasing raw materials for a manufacturing business.

4. a) What are the sources of information for a market survey?

b) Explain the importance of carrying out a market survey.

5.a) State any five insurable risks of a business.

b) Explain the principle of insurance.

6.a) Describe the different types of business laws used in your country.

b) Explain the importance of business laws in your country.