P230/2
ENTREPRENEURSHIP
EDUCATION
Paper 2
Jul/Aug 2016
3 Hours
MUKONO EXAMINATIONS COUNCIL
Uganda Advanced Certificate of Education
ENTREPRENEURSHIP EDUCATION
Paper 2
3 Hours
INSTRUCTIONS TO CANDIDATES
- Answer four questions only.
- All questions carry equal marks.
- Any additional question(s) answered will NOT be marked.
- You intend to start a carpentry workshop in your home town.
- (i) State the mission statement of the business. (02marks)
(ii) Give the general description of the business. (05marks)
- Prepare the administration plan of your proposed business. (06marks)
- Draw a programme for purchasing business inputs. (06marks)
- Formulate guidelines for promoting creativity among the workers in your project.
(06marks)
- Babu Enterprises plans to start a business, has availed you with the following projections for the months of January, February and March 2017.
- Cash in hand shs 1,500,000 as at 1st January 2017.
- Cash sales shs 1,860,000, shs 1,395,000 and shs 930,000 for January, February and March respectively.
- Loan from SEROSACCO shs 1,450,000 in January.
- Receipts from debtors shs 890,000 in February and shs 925,000 in March.
- Cash purchases of shs 720,000, shs 480,000 and 240,000 for January, February and March respectively.
- Monthly direct wages are expected to be shs 48,000. A decrease of 10% is expected in the month of February.
- Electricity shs 30,000 per month.
- Selling expenses are estimated to be shs 20,000 and shs 15,000 for January and march respectively.
- Taxes shs 226,900 to be paid in the month of March 2017.
- Administrative expenses are expected to amount to shs 60,000 per month. An increase of 5% every month is expected after the 1st month.
- Cash purchase of assets shs 2,900,000 in January.
- Credit purchases shs 250,000 in February, to be paid for in the following month.
- A cash deficit is off-set by getting a loan in the following month.
Required
- Prepare a cash Flow statement for Babu Enterprises for the period of January to March 2017. (20marks)
- Suggest to Babu Enterprises ways of managing cash short falls in the cash flow statement. (05marks)
- You are operating shoe-making factory in an urban centre. You even make products on special orders.
- Design a work-order form for the business. (06marks)
- Formulate policy guidelines for motivating business employees. (06marks)
- Present a programme for taking out an insurance policy. (07marks)
- Write an invoice to a customer whom you have supplied products on credit worth shs 1,000,000. (06marks)
- You are the Human Resource Manager of a bakery located in a populated town centre. You have identified the need to train the workers for increased output at minimum costs.
- Write a notice inviting all workers to a one day training workshop. (05marks)
- Prepare a one week training programme for the workers. (06marks)
- Develop guidelines to be followed to minimize costs of production. (08marks)
- Design a job advertisement for the post of marketing agent of the business.
(06marks)
- The following information relates to UNIQUE TRADERS LTD for the year 2015.
Details | Shs (000) |
Bank | 12,000 |
Cash | 18,000 |
capital | 157,000 |
Opening inventory | 10,000 |
Furniture | 30,000 |
Bad debts written off | 4,000 |
Machinery | 15,000 |
Accounts receivable | 20,000 |
Returns inwards | 2,000 |
Purchases discount | 33,300 |
Carriage on sales | 1,000 |
Purchases | 75,000 |
Sales | 90,000 |
Accounts payable | 13,000 |
Returns outwards | 4,000 |
Carriage inwards | 1,500 |
Bad debts recovered | 8,000 |
Sales discount | 2,000 |
Closing inventory | 1,000 |
Bank overdraft | 2,000 |
Required:
- Compute the;
- Average stock (02marks)
- Cost of sales (02marks)
- Gross profit (02marks)
- Net profit (03marks)
- Calculate the following ratios;
- Cash ratio (03marks)
- Net profit to sales (03marks)
- Rate of return on capital employed (03marks)
- Stock turnover (03marks)
- Interprete the following ratios in relation to 5(b) above.
- Cash ratio (02marks)
- Net profit to sales (02marks)
- You are operating a Hardware shop along a busy street. Your store keeper is disorganized and inefficient.
- Write a termination letter to the store keeper. (06marks)
- Design a stock card for use in the business. (06marks)
- Prepare policy guidelines for ensuring proper inventory management. (07marks)
- Draft a daily work schedule to be followed by your employees. (06marks)
End –