Bot Uace Ent 2
Bot Uace Ent 2
ENTREPRENEURSHIP
EDUCATION
Paper 2
3 hrs.
INSTRUCTIONS TO CANDIDATES
Answer any four questions only.
All questions carry equal marks.
Additional question(s) shall not be marked.
Credit will be given for the use of relevant diagrams and illustrations.
Turn Over
1
(a) Develop a root cause analysis for the declining sales.
(06 marks)
(b) Design a questionnaire to be used to obtain information from clients as you aim at
reviving the processing plant.
(07 marks)
(d) Write a termination letter to the chief cashier because of being incompetent.
(05 marks)
2. You are operating a fast growing bakery and you would like to establish a new branch. Indeed
you have set aside shs 45,000,000 to be spent on fixed capital requirements:
3. You are a human resource manager of a modern welding business and you would like to recruit
workers:
(b) Design a job application form to be used in the business. (05 marks)
(d) Write a quotation to a customer who has picked interest in your products.
(06 marks)
4. You have established a social enterprise aimed at reducing killer diseases brought about by
poor hygiene and sanitation:
b) Develop a GEPIC structure for advocacy for promoting your business mission.
(06 marks)
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(c) Prepare policy guidelines to promote hygiene and sanitation.
(07 marks)
(07marks)
5. The table below relates to the expected sales of Malusa enterprises for the months of January to
April 2010
i. The company receives 60% of sales in the month of sale and the balance in the next month.
ii. The company is to receive extra share capital in the months of January and March of shs
20,000,000 respectively.
iii. The company expects a loan in February of shs 18,000,000
iv. There is a rent refund in February of shs 2,200,000
v. In the month of March it accepts a grant of shs 4,000,000
vi. The company accepts to buy raw materials worth 30% sales per month
vii. The company expects to pay salaries to workers to shs 12,200,000.
viii.Electricity charges are projected at shs 1,320,000 per month.
ix. The returns to URA per month is to be shs 3,600,000
x. Payment of water bills per month is to be shs 3,600,000
xi. Loan repayment per month is expected to be shs 3,000,000 beginning with the month that
follows the acquisition of loan.
xii. Cash balance as per 31st December 2009 was shs 20,540,000
Required
a.) Use the information above to prepare a cash flow statement for Malusa Enterprises
(20 marks)
b) Advise him on what he can do to save the situation in case of a given a negative cash flow position
(05 marks)
6a) The following VAT exclusive transactions were carried out by a registered Business in Feb
2016 at different chains of distribution.
a) Calculate the VAT chargeable at each stage using the current VAT rate of 18%
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(15 marks)
b) State any five types of taxes paid by trading businesses.
(05 marks)
c) Suggest 5 ways of ensuring tax compliance in your country (05 marks)
END