PAPER 1

1. You have saved shs5,000,000 to expand your supermarket.

a) Prepare a budget for the expansion of your supermarket.

b) Write a job description for a sales supervisor.

c) Prepare a cash receipt for a sales supervisor.

d) Design a business card for promoting your business.

2. The following balances were obtained from NAMALWA's ledger Accounts as at 31st December, 2009. shs

Stock ( 1st January, 2009) 1,250,000

Stock(31st December, 2009) 1,500,000

Purchases 7,000,000

Returns inwards 750,000

Returns outwards 45,000

Sales 13,000,000

Advertising 260,000

Carriage on sales 95,000

Premises 6,000,000

Tools and equipment 3,500,000

Creditors 1,075,000

Debtors 1,500,000

Drawings 150,000

Capital 7,875,000

Furniture 625,000

Salaries and wages 875,000

Discount allowed 187,500

Commission received 122,500

Electricity bills 140,000

Cash at hand 60,000

Bank overdraft 465,000

Telephone expenses 180,000

Required:

a) Extract a trial Balance from NAMALWA's Ledger Accounts.

b) Prepare NAMALWA's Trading, Profit and Loss Account for the year ended 31st December, 2009.

c) Calculate the Net Profit Margin.

3. You have decided to expand your Barkery to satify the existing market.

a) Prepare a marketing plan for your business.

b) Design a questionnaire for conducting a market survey.

c) Design a poster to advertise your products.

d) Prepare a purchase Order for raw materials for your business.

4. YAYA ENTERPRISES Ltd. had the following information about its assets and liabilities as at 30th June,2009: shs

Rent received outstanding 1,500,000

Stock (30th June, 2009) 22,500,000

Outstanding electricity 3,000,000

10 year loan 45,000,000

Land 67,500,000

Debtors 27,000,000

Creditors 21,000,000

Cash in bank 31,000,000

Machinery 16,500,000

Furniture and fittings 13,500,000

Interest received in advance 7,500,000

Equipment and tools 30,000,000

Required:

a) Prepare a balance sheet as at 30th June, 2009

b) Determine the:

i) Quick -assets ratio,

ii) Current ratio.

c) State the position of the business, given the ratios in b) (i) and (ii).

PAPER 2

SECTION A: (40 marks)

1. a) (i) Distinguish between a Memorandum of Association and articles of Association.

ii) Mention any two contents of a Memorandum of Association.

b) (i) Define the term "price "?

(ii) Mention any three factors that should be considered when determining the price of a product.

c)(i) Differentiate between pre-operating expenses and administrative expenses.

(ii) Give any two examples of pre-operating expenses business.

d)(I) What is an Action plan?

(ii) State any three uses of an Action plan.

a) Outline any four business ethics an entrepreneur should practice towards employees.

b) I) Distinguish between fixed capital and working capital.

ii) Mention any two ways in which a business can increase cash flows.

c) I) Define the term "advertising ".

ii) Give any three factors which should be considered when choosing a medium of advertising.

d) I) Differentiate between indemnity and subrogation as used in insurance.

ii) Give any two examples of insurable risks faced by a business.

e) (i) What is meant by product positioning?

(ii) State any three factors an entrepreneur should consider when developing a product.

f) I) Distinguish between saving and investment.

(II) Suggest any two ways of promoting savings in your country.

SECTION B: (60 marks)

2. a) Outline the factors that an entrepreneur should consider when choosing packaging material for a product.

b) Explain the importance of packaging products.

3. a) Explain the benefits of a business plan to an entrepreneur.

b) What problem do entrepreneurs face when preparing a business plan?

4. a) Describe the various types of business taxes in your country.

b) Why is it important for the government to tax businesses?

5. a) Explain the factors that should be considered when conducting market assessment for a product.

b) Outline the benefits of conducting market assessment for a product.

6. a) Outline the advantages and disadvantages of selling goods on credit.

b) Describe various ways of managing credit sales in a business.