Paper 3

July /Aug 2016


    Uganda Advanced Certificate of Education







This paper comprises of THREE(3) Section A, B and C

Attempt FOUR (4) questions in all

Section A is compulsory

In Section B and C, a candidate must choose atleast one question from each section.


Section A    

Case Study


1. Read the case study below and answer the that follow questions.


Ms. Seguya inherited from her father a small household goods manufacturing enpetrise. Through her extraordinary talent in setting up an imaginative sales programme, Ms. Seguya succeeded in profitably developing the company’s sales from shs. 200,000 to shs 2,000,000 per year from 2004 to 2009. because of the sttractiveness of the profit margins to the distributors of her products, VIZ, wholesalers and rtailers, she was able to expand her business by opening up factories in several major towns of Uganda. Her enterprise grew to shs 8,000,000 of sales with four factories, a national wide distribution network, and approximately 200 employees.


Ms. Seguya is 30 years old. She went through her secondary school education. Upon completion in 1999, she joined university where she graduated with a BBA degree in 2004. She then joined her father a financial controller and accounts head. She now heads her father’s family business.


Throughout the company’s growth stage, Ms. Seguya found it difficult to delegate authority, a key management function. When the enterprise was small, Seguya made all financial decisions on new products, advertising, pricing sales plans and organization, hiring, operating, pricing sales plans and organization, hiring, operating budgets production plans, capital expenditures, purchase orders above shs 100,000, credit given to distributors and other matters.


Long before the company grew to its present size, the key functional managers, Seguya’s assistant, the business and factory manager and the sales managers become frustrated by the bottlenecks in the owner/manager’s officer.


They finally approached an outside professional consultant who was close to Ms. Seguya and asked him to help solve the problem. On investigating their complaints he found them to be justified. He also found out that much as Ms. Seguya knew the principles and importance of delegation, she was receptive, and her unwillingness to delegate was due to a justifiable fear of losing control over the enterprise’s operations.




a) What entrepreneurial qualities are possessed by Ms. Seguya as an entrepreneur?                                    (4marks)

b) Outline the functional areas to which Ms. Seguya attached a lot of importance?                                    (5marks)

c) What factors led to the growth of Seguya’s enterprise?        (5marks)

d) What likely challenges have been faced by Seguya’s enterprise as a family business?                                        (4marks)

e) Suggest ways of overcoming the challenges mentioned in (d) above.


f) A part from the justifiable fear of losing control over the enterprises operations, what are the other disadvantages of delegation?            (3marks)





2. With reference to the business project carried out by your school business club.

a) Describe the business project you are carrying out.            (5marks)

b) How do you ensure proper cash management in the business project?


c) What measures are employed to ensure production of high quality products?


d) Illustrate either cash sales ship or receipt that you use in your project. (5marks)

e) i) What challenges are being encountered in the process of running the business?                                        (3marks)

ii) How have the challenges mentioned above been overcome?     (3marks)


3. With reference to the business project owned by your school business club;

a) i) State the objectives of carrying out such a project.            (4marks)

ii) Give a description of the project.                        (4marks)

b) Describe how innovative you are in your project.            (4marks)

c) Explain the production process for your business project.        (5marks)

d) How do you minimize the costs of production in your project?    (4marks)

e) What control measures do you employ to manage the flow of funds in your business project?                                    (4marks)





4. For any filed attachment:

a) Describe the business you are attached to.                (5marks)

b) Explain the different production activities carried out in the business. (5marks)

c) How does the business promote sales?                     (5marks)

d) Advise the owner(s) on the importance of developing a good personal brand.                                         (4marks)

e) i) What challenges did you face while carrying out field attachment.    


ii) How did you overcome the challenges mentioned in e(i) above?     (3marks)


5. For any field trip carried out either as a group of an individual;

a) i) State any three objectives of the field trip.                (3marks)

ii) Describe the business you visited.                        (3marks)

b) Which factors in the global environment affect the business you visited.                                                     (3marks)

c) How does the business motivate its employed?             (5marks)

d) What measures are employed to ensure security of the business? (4marks)

e) Advise the owner(s) on the critical change areas.            (5marks)


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