P230/2
ENTREPRENEURSHIP
EDUCATION
Paper 2
Nov, 2020
ST. MARYS’ KITENDE
Uganda Advanced Certificate of Education
RESOURCEFUL MOCK EXAMINATIONS 2020
ENTREPRENEURSHIP EDUCATION
PAPER 2
3hours
Instructions to candidates
- Attempt any four questions from this paper
- Credit will be given to use of relevant illustrations
- All questions carry equal marks
You own a mineral water company and it is one of the largest in East Africa:
- Prepare a quality policy for your company. (07 marks)
- Develope a programme for recruitment of more workers. (07 marks)
- Write an advert informing customers about the newpackaging .
(05 marks)
- Present the core values of your company. (06 marks)
- Your district has experienced a challenge of garbage littered on the roadsides. This has led to outbreak of diseases such as cholera. As a social entrepreneur, you have decided to start a social enterprise to address the problem.
- Describe the features of your enterprise. (06 marks)
- Present a root cause analysis for the problem at hand. (07 marks)
- Develop a GEPIC structure of advocacy you will use to lobby for support. (06 marks)
- Draft policy guidelines that will be followed to ensure sustainability of your enterprise. (07 marks)
- The following transactions were extracted from the books of Mahogany Furniture Traders for the year 2014.
Item | Amount (shs) ‘000’ |
Stock 1st Jan | 2,000 |
Stock 31st Dec | 2,300 |
Commission received | 300 |
Discount allowed | 100 |
sales | 6,000 |
purchases | 4,000 |
Debtors | 250 |
Purchases carriages | 700 |
Sales carriages | 400 |
Electricity | 150 |
Insurance | 190 |
Return in wards | 200 |
Return out wards | 250 |
Creditors | 400 |
Capital | 2,900 |
Unpaid stationary | 350 |
Bank | 500 |
Motor van | 1,000 |
Furniture | 800 |
Required to calculate;
- i) Cost of sales (04 marks)
- Gross profit margin (04 marks)
- Capital employed (05 marks)
- Gross profit margin (04 marks)
- Compute and interpret;
- Net profit ratio (03 marks)
- Inventory turnover ratio (03 marks)
- Rate of return on capital employed (03 marks)
- Average collection period (03 marks)
- Net profit ratio (03 marks)
- You operate an animal drug factory in a Mukono municipality. The residents have been complaining about its operations.
- Prepare a presentation to be read to the community members on the benefits of the factory. (06 marks)
- Present the environment protection guidelines of the factory. (06marks)
- Present the social responsibilities of the business. (05 marks)
- Prepare a payroll for the top management of the previous month.
(08 marks)
- The following information relates to the books of save & save milk processors extracted in October, 2014.
- Expected cash sales per month was shs.500, 000; however, it was to reduce by 10% monthly.
- Monthly rent income was 300,000 and was to increase by 3% after the first two months
- The wage bill was to be maintained at shs. 5,000 per employee daily for 10 workers monthly
- 1000 litres of milk were to be purchased on a daily basis each at shs 500 for the whole period
- On 1st October, 2014, the business had a cash balance of shs. 800,000
- Income from other sources was expected to be shs. 200,000 in the last two months
- The business planned to purchase a milk cooling machine at shs. 700,000. No payment was made until the last month.
- The business expected to purchase shares of shs. 100,000 in the first two months
- Expected monthly credit sales were shs. 160,000 but payment would be made in the month of sale.
- Monthly Insurance premium of shs. 10,000 was to be made, and was to increase by 5% every after a month
- All business assets were to be depreciated by a total of Shs. 100,000 in the second month.
Required:
- Prepare a cash flow budget for four months. (22 marks)
- Advise the owner on how to manage funds basing on the net cash position. (03 marks)
- Prepare a cash flow budget for four months. (22 marks)
- Expected cash sales per month was shs.500, 000; however, it was to reduce by 10% monthly.
- You bought a declining tours and travel enterprise. You intend to rehabilitate it in order to make it competitive again; you have obtained a loan of Ugx.50,000,000 from centenary bank, payable in five equal instalments in five years at an interest of 15% per annum at reducing balance method.
- Prepare a loan repayment schedule to ease loan repayment. (06 marks)
- Present the factors you considered before obtaining a loan from the financial institution. (08 marks)
- Present the programme you followed when obtaining a loan. (06 marks)
- Draw a capital expenditure budget for the loan you have obtained.
(05 marks)
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