ENTREPRENEURSHIP EDUCATION P230/1

Instructions to Students:

o Attempt all questions.

SECTION A.

1. (a) Mention any four managerial skills needed for entrepreneurial success. (4 marks)
(b) ( i ) Mention any two principles of good business ethics. (2 marks)
( ii ) Give any two benefits of observing good business ethics in business.
(2 marks)
(c) ( i ) Outline the characteristics of innovative people. (2 marks)
(ii) How can innovation be promoted in small businesses? (2 marks)
(d) mention any two;
( i ) principles of an effective personal brand. (2 marks)
( ii ) attributes of a good personal brand. (2 marks)
(e) State any four various ways of motivating employees in an enterprise. (4 marks)

SECTION B

2. ( a ) Explain the aspects that characterize the entrepreneurial environment. (8 marks)

(b) Describe the economic and demographic factors that hinder the development of
entrepreneurship. (12 marks)

3. (a) What are the advantages of small and medium enterprises. (10 marks)
(b) Account for the popularity of small and medium enterprises in Uganda.
(10 marks)
4. (a) Why is it necessary to generate business ideas? (10 marks)
(b) Describe the features of an attractive business opportunity. (10 marks)

5. (a) Explain the factors that lead to low women participation in Entrepreneurship.
(8 marks)
(b) Suggest the ways of promoting women participation in Entrepreneurship in
Uganda. (12 marks)

6. (a) Describe the components of a business plan. (8 marks)

1
 (b) Explain the production needs which are considered when developing a production
plan for an enterprise. (12 marks)

7. (a) Explain the manifestations of good customer care in an enterprise. (6 marks)

(b) Explain the various marketing techniques used by entrepreneurs. (14 marks)

ENTREPRENEURSHIP EDUCATION P230/2

Instructions to Students:

o Attempt four (4) questions in all.

1. You are operating a shoe making factory in your locality.

a) Design a plan for conducting personal selling. (8 marks)
b) Draft a working capital budget for your business. (5 marks)
c) Write a marketing plan for your business. (7 marks)
d) Present the social responsibilities of your business to the community. (5 marks)

2. You have been operating a primary school for the past 10 years, last year you opened
up a secondary school targeting the P7 leavers as the first customers. Numbers are
still low and academic performance is still poor.

a) Prepare an appealing advert for the secondary school using any medium. (6 marks)
b) Formulate the guidelines to be followed by the teachers to ensure academic
excellence in the school. (6 marks)
c) Write a complaint letter to your supplier of beans for supplying poor quality beans
to the school. (6 marks)
d) Identify other business opportunities that you can engage in. (2 marks)
e) Design a payment voucher for your business. (5 marks)

3. Your community is experiencing poor sanitation resulting from poor waste

management. Both recyclable and non-recyclable waste is dumped on ground
blocking drainage channels, causing pollution etc. You intend to obtain a loan of Ugx
10,000,000 from Centenary Bank at a monthly interest rate of 1% on balance due,
repayable in four equal annual installments. The loan is to help you start a waste
collection and recycling plant to improve sanitation.

a) Write the vision statement, mission statement, goals, objectives and core
values of your enterprise. (10 marks)

2
b) Draw a loan amortization schedule to follow when paying back the borrowed
funds. (5 marks)
c) Write a GEPIC structure of advocacy to sensitize your community members
about the situation at hand. (5 marks)
d) Design a program that you will follow to become a social entrepreneur. (5
marks)

3
4. The financial records below relate to KASAJJA TRADERS for the year ended 31 st
Dec 2023.

KASAJJA TRADERS' BALANCE SHEET

AS AT 31/12023
CAPITAL AND AMOUNT ASSETS AMOUNT
LIABILITIES (UGX) (UGX)
Capital 2,200,000 Buildings.
1,050,000
3year loan. 370,000 Machinery. 380,000

Drawings. 550,000 Stock at close. 940,000

Accounts receivable. 490,000

Accounts payable. 900,000 Cash balance 640,000

Profits for the year. 720,000 Bank balance. 140,000

Total. 3,640,000 Total. 3,640,000

The information below was also available for the business in the year 2023
o Opening inventory-Ugx 1,140,000
o Net purchases- Ugx 1,540,000
o Net sales- Ugx 2,640,000
o Cost of sales- Ugx 1,970,000
o Overhead costs- Ugx 520,000
o Gross profit- Ugx 1,240,000

a) Required to calculate the following ratios

i. Rate of stock turnover. (4 marks)
ii. Net profit to sales ratio. (4 marks)
iii. Working capital. (5 marks)
iv. Rate of return on capital invested. (4 marks)
v. Capital owned. (4 marks)

4
b) State any four benefits of analyzing financial ratios. (4 marks)

5. The following projections relate to Mulindwa General Enterprises for the year
2022.

i. Opening balance Shs. 10,000,000

ii. The business projects to make sales as shown;

January Shs. 45,000,000
February Shs. 90,000,000
March Shs. 80,000,000
It is to receive 70% of the sales cash in the month of sale and the balance in
the following month.

iii. Commission income for the month of January to be Shs. 5,000,000 and this
is projected to increase each month by 10%.

iv. Credit sales worth Shs. 30,000,000 in December 2021 were to be cleared by
debtors in the following months in the ratio 5:3:2

v. The business projects to buy units in kgs of 40,000, 24,000, and 20,000 in
January, February and March respectively at a cost price of Shs. 500 per
kilogram.

vi. Projected monthly labour cost payment to each of 10 workers is 350,000.

However, in the month of March the business will recruit three more
employees at the same monthly pay.

vii. The business expects to sell an old van at Shs. 12,000,000 in February and
in the same month buy a delivery truck at Shs. 20,000,000, making a down
payment of 75% of the cost price and the balance to be paid in the
following month.

viii. Administrative expenses paid at the end of each month amounted to Shs.
4,000,000. But this is expected to decrease by 5% after the first two
months.

ix. The proprietor plans to give a cash prize to his wife worth Shs. 500,000 in
the last week of the first month and buy her a new car worth Shs.
12,000,000 to celebrate her birthday in February.

5
 x. Rental income of Shs. 1,000,000 is projected in January and this is to
increase by 8% monthly.

xi. Cash and food donations per month are projected to be made at Shs.
2,000,000 and 3,000.000 respectively.

xii. Depreciation expenses are all fixed assets are projected at Shs.3, 400,000
per month.

xiii. The Business is to obtain a loan Shs. 6,000,000 in January at an interest rate
of 5% payable monthly at reducing balance method. The principle to be
paid in three (3) equal installments starting with the month of loan
acquisition.

Required:
a) Prepare a cash budget for the months of January, February and March 2022.
(22 marks)
b) Comment on the trend of the Net cash position. (03 marks)

END