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
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Answer four questions only.
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All questions carry equal marks.
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Any additional question(s) answered will NOT be marked.
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You intend to start a carpentry workshop in your home town.
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(i) State the mission statement of the business. (02marks)
(ii) Give the general description of the business. (05marks)
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Prepare the administration plan of your proposed business. (06marks)
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Draw a programme for purchasing business inputs. (06marks)
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Formulate guidelines for promoting creativity among the workers in your project.
(06marks)
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Babu Enterprises plans to start a business, has availed you with the following projections for the months of January, February and March 2017.
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Cash in hand shs 1,500,000 as at 1st January 2017.
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Cash sales shs 1,860,000, shs 1,395,000 and shs 930,000 for January, February and March respectively.
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Loan from SEROSACCO shs 1,450,000 in January.
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Receipts from debtors shs 890,000 in February and shs 925,000 in March.
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Cash purchases of shs 720,000, shs 480,000 and 240,000 for January, February and March respectively.
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Monthly direct wages are expected to be shs 48,000. A decrease of 10% is expected in the month of February.
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Electricity shs 30,000 per month.
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Selling expenses are estimated to be shs 20,000 and shs 15,000 for January and march respectively.
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Taxes shs 226,900 to be paid in the month of March 2017.
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Administrative expenses are expected to amount to shs 60,000 per month. An increase of 5% every month is expected after the 1st month.
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Cash purchase of assets shs 2,900,000 in January.
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Credit purchases shs 250,000 in February, to be paid for in the following month.
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A cash deficit is off-set by getting a loan in the following month.
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Required
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Prepare a cash Flow statement for Babu Enterprises for the period of January to March 2017. (20marks)
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Suggest to Babu Enterprises ways of managing cash short falls in the cash flow statement. (05marks)
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You are operating shoe-making factory in an urban centre. You even make products on special orders.
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Design a work-order form for the business. (06marks)
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Formulate policy guidelines for motivating business employees. (06marks)
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Present a programme for taking out an insurance policy. (07marks)
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Write an invoice to a customer whom you have supplied products on credit worth shs 1,000,000. (06marks)
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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.
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Write a notice inviting all workers to a one day training workshop. (05marks)
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Prepare a one week training programme for the workers. (06marks)
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Develop guidelines to be followed to minimize costs of production. (08marks)
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Design a job advertisement for the post of marketing agent of the business.
(06marks)
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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:
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Compute the;
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Average stock (02marks)
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Cost of sales (02marks)
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Gross profit (02marks)
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Net profit (03marks)
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Calculate the following ratios;
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Cash ratio (03marks)
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Net profit to sales (03marks)
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Rate of return on capital employed (03marks)
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Stock turnover (03marks)
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Interprete the following ratios in relation to 5(b) above.
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Cash ratio (02marks)
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Net profit to sales (02marks)
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You are operating a Hardware shop along a busy street. Your store keeper is disorganized and inefficient.
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Write a termination letter to the store keeper. (06marks)
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Design a stock card for use in the business. (06marks)
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Prepare policy guidelines for ensuring proper inventory management. (07marks)
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Draft a daily work schedule to be followed by your employees. (06marks)
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End –