Paper 1

Nov 2020

3 hours



Uganda Advanced Certificate of Education



Paper 1

3 hours



  • This question 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 shall be given for use of relevant diagrams and illustrations.
  • Any additional question(s) attempted shall not be marked.

    SECTION A (20 marks)

  1. (a) (i) What is meant by a mission statement.        1mk

    (ii) Give any three benefits of developing a mission statement to the     business.                                    3mks


    (b)(i) What is meant by a feasibility study?                1mk

    (ii) State any three reasons for carrying out a feasibility study before starting a business.                                 3mks.


    (c) Mention any four effects of climate change on business activities.                                             4mks

    (d) (i) Distinguish between lead time and re order level.        2mks

    (ii) Give any two ways of managing inventory in a business. 2mks    

    (e) (i) Define the term prototype.                        1mk    

    (ii) Mention any three factors that influence the level of sales of a     business.                                    3mks



SECTION B (80 marks)


  1. (a) Explain the principles that govern development of a lucrative personal brand.                             10mks

    (b) What benefits do entrepreneurs get from developing a personal brand.                                    10mks


  2. (a) Why should entrepreneurs observe quality during the production process.                                    10mks

    (b) Examine the strategies that can be used by entrepreneurs to increase profits.                                     12mks


  3. (a) Describe the process of effective creative selling.    10mks

    (b) What is the basis for dividing the market into the different submarkets                                10mks


  4. (a) What is the contribution of Uganda Securities Exchange (USE) to the development of Uganda.                        10mks

    (b) What factors limit effective performance of capital markets in Uganda.                                    10mks


  5. (a) Explain factors that affect the amount of wages paid to workers in a business.                     10mks
    1. Explain the conditions when the wages of employees may be increased in an organization.                    10mks
  6. (a) Explain the role of taxation in Uganda.            10mks
    1. How can the rampant tax Evasion be reduced in Uganda?                                         10mks


“ Where there is a will, there are a thousand ways, where there is no will, there are a thousand excuses.”

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