[CERETA 2018 ENT SEMINAR SOLUTIONS] [Friday, May 21, 2021]

CENTRAL REGION TEACHERS' ASSOCIATION (CERETA)

ENTREPRENEURSHIP EDUCATION
SOLUTIONS TO SEMINAR QUESTONS 2018
PART 1: P230/1 SECTION A.
1. (a) (i) Technical feasibility study refers to the study which determines the adequacy
of the; manufacturing process, plant and machinery to be used for production of a given
product within the framework of pre-determined quality, raw materials and time used without
long or expensive break-down problems.
While
Financial viability study refers to a study which reveals how attractive or hopeless the
business idea is from the financial point of view.
(ii) Elements of a financial feasibility study.
 Project costs.
 Means of finance.
 Capacity utilization and income estimates.
 Expenditure estimates.
 Profitability estimates.
 Risk analysis.
 Risk mitigation.
(b) (i) Factors considered when evaluating business ideas.
 Present market.
 Market growth.
 Costs involved.
 Business risks.
 Personal considerations.
 Business considerations.
(ii) Factors considered when carrying out capacity planning and design.
 The physical capacity needed.
 The equipment and tools required.
 The amount of labour needed.
 The time projected to produce total number of goods.
 The amount of raw materials and supplies needed,
 Any other support, space or assistance.
(iii) Factors considered when, evaluating business competition.
 Volume of sales.
 Flow of customers on a daily basis.
 Cash flows.
 Personnel/flow of personnel.
 Technology used.
(c) (i) A mission statement is a brief statement that indicates the overall purpose of the
business which is followed to achieve the objectives of the business.
(ii) Benefits of drafting a mission statement for a business.

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 [CERETA 2018 ENT SEMINAR SOLUTIONS] [Friday, May 21, 2021]

 It defines the scope of the business.

 It provides the basis for initiating "business targets and objectives.
 It gives strategic options to be taken to achieve the business goals.
 It facilitates communication about the business.
 It provides a permanent point: of reference during period of change.
 It reminds customers what the business offers.
 It brings together internal stakeholders who hold diversified views about the business.
(d) (i) Contents of an executive summary
 Background of the business.
 Objectives of the business.
 Products or services the business offers.
 Overview of the market for products.
 Competitive advantage of the business,
 Projected growth.
 Key members of the business;
 Funding requirements of the business.
 Future plans of the business.
(ii) Contents of a social enterprise plan.
 Introduction.
 Theory of change.
 The opportunity.
 The innovation.
 Management and operations.
 Sustainability.
(e) Factors that enhance gender partnership in society.
 Justly rewarding each member for his/her services.
 No threats of exploitation or victimization. | -
 Two-way communication among members.
 Enhancement of each member’s development.
 Awareness of participants of their own membership and that of others.
 Each member getting satisfaction from participating in any activities taking place.
 Each member striving to communicate his/her feelings and ideas as clearly possible.
(f) (i) Indicators of an Increasing level of competition.
 Reduction in the daily flow of customers.
 Decline in sales.
 Reduction in production orders.
 Fall in cash flows.
 Outflow of personnel joining more competitive firms.
 Inability to access modern technology.
(ii) Indicators of market growth.
 Projected increase in need.
 Increase in customer acceptance.
 Product newness
 Economic trends favoring to increasing consumption.

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 [CERETA 2018 ENT SEMINAR SOLUTIONS] [Friday, May 21, 2021]

 Competitive advantage.
PART P230/1 SECTION B
2. (a) Factors that enhance development of a positive mental attitude among entrepreneurs.
Having self-belief.
Being result oriented.
Networking with successful entrepreneurs.
Identifying successful entrepreneurs to be used as role models and mentors.

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 Having work objectives that are achievable and have an impact.
Taking each experience as an opportunity to learn from.
Involving in positive activities.
Taking advantage of opportunities to improve situations.
Avoiding negative thoughts and ideas.
Having faith oneself.
(b) Characteristics associated with a strong need for achievement
Formulation of concrete goals.
Formulation of goals which stretch one's abilities and efforts.
Analyzing the environment to create opportunities for achievement rather than passively
waiting for chances to come their way.
Experimenting with novel activities to reach the set goals.
Anticipating possibilities of success and failure to do something about the obstacles
which can cause failure.
Seeking help from experts rather than friends to overcome both external blocks and
personal limitations.
Deriving maximum satisfaction from the achievement itself and less from other factors
like money and recognition.
Experiencing positive feelings of joy and satisfaction in achieving moderately
challenging goals and disappointment but not self condemnation in failure.
Learning from feedback.
3. (a) Principles of personal branding
Specialization.
Leadership.
Personality.
Distinctiveness
Visibility
Unity
Persistence
Goodwill
(b) Importance of personal branding to an entrepreneur.
It makes an entrepreneur to compete with already established brands in the market.
It increases entrepreneur's confidence by understanding himself better.
Saves the entrepreneur's time and energy by selecting goals aligned with his unique
value.
Provides a roadmap to success.
Helps the entrepreneur in achieving more sales from customers in less time.
It helps the entrepreneur to raise brand visibility.
Builds the reputation of the business amongst customers.
It positions the entrepreneurs focused message in the minds of his target customers.

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 It creates focus for the entrepreneurs in implementing new business plans with his clients
and customers.
Creates a sense of individuality and uniqueness in minds of the customers and thus enable
distinguishing of his products from those of competitors.
It attracts the right people and opportunities to the business.
4. (a) Political factors Influencing entrepreneurial Intentions.
Political climate
Government policy of taxation and subsidization.
Government expenditure
Government institutions and departments.
Political and religious refugees
Legal environment.
(b) Social - cultural factors limiting entrepreneurial Intentions.
Conservative cultures.
Absence/Limited social financial support.
Absence of social identification.
Absence of role models.
Conservative religions/unsupportive religions.
(c) Ways of improving the social cultural environment.
Controlling conservative cultural beliefs.
Carrying out career guidance and counseling to bring people into contact with role
models.
Recognizing successful entrepreneurs
Providing financial support to upcoming entrepreneurs.
Incorporating entrepreneurship in religions/preaching positively about entrepreneurship.
Promoting positive social identification.
Identifying successful entrepreneurs in society to act as role models.
5. (a) Social responsibilities of a business to the community.
 Creation of employment opportunities.
 Promotion of infrastructural development.
 Conservation of the environment through planting trees.
 Creating market for the raw materials.
 Bringing services and products nearer to the people.
 Enhancing creativity and innovativeness among individuals.
 Utilizing the locally available resources.
 Participating in community development programmes.
 Providing revenue to the government.
 Providing information for research and study purposes.
(b) Effects of climate change
 Meeting of glaciers in mountainous areas leading to increase in river size and change of
course.

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  Leads to change in the patterns of seasons e.g. rainy season.
 Extinction of animal species which cannot survive the changing temperature.
 Leads to displacement of people (migrations) due to floods.
 Causes flooding.
 Leads to famine due to drought.
 Causes infections e.g. skin cancer.
 Destruction of the physical temperatures.
 Increases the unemployment problem due to change of seasons.
 Leads to changes in the vegetation belts from forests to Savannahs to deserts causing
forceful migration.
6. (a) (i) Process of turning a business idea into a product.
 Documenting the invention.
 Researching about the idea.
 Researching about the market.
 Making a prototype.
 Filing a patent.
 Marketing the invention.
(ii) Process of researching a business idea.
 Idea stage.
 Analysis of the idea.

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  Checking out the competition.
 Turning the idea to make it work in case it looks like a flop.
 Preparing a marketing plan and a budget showing the distribution strategy in case the idea
is ready to go.
(b) Factors determining the level of profits In business.
 Volume of sales.
 Quality of products produced.
 Cost of production.
 Cost of raw materials
 Labour.
 Technological levels.
 Terms of sale i.e. cash or credit.
7 (a) Reasons for the popularity of small and medium enterprises.
 They tap locally available resources.
 Decision making is easy.
 They can be located anywhere including rural areas.
 They require less capital to start than large enterprises.
 They have low operational costs.
 They can easily be transformed from one location to another, i.e. They are flexible.
 They are a source of employment to families especially family labour.
 They sell goods in small quantities which customers can afford.
 They sell goods nearer to customers.
(b) Contribution/ Roles of insurance companies to economic development.
 Ensuring continuity of the business by giving compensation.
 Acting as trustee for the business by looking after the property of the deceased.
 Enabling business to save money that can be used to cover unexpected emergencies.
 Compensation of businessmen in case of losses hence encouraging investment
confidence.
 Promoting trade (international trade) by issuing policy covering goods in transit.
 Educating the business community e.g. campaigns on safety and health care.
 Provision of insurance policies which are used as collateral security to acquire loans.
 Reduction of costs of businessmen by issuing workman compensation policy and public
liability policy.
 Provision of loans to individuals and business people.
 Provision of employment opportunity to people like the actually, underwriters, brokers
etc.
(b) Factors determining the amount of premium charged by the insurer.
 The nature of the property being insured.
 The number of people exposed to the same risk.
 The frequency of occurrence of the risk.
 Operating expenses of the insurer.

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  Precautions taken to reduce the risk.
 The time the asset has spent /age of the property or person.
 The value of the property insured. •. The type of policy.
 Possibility of occurrence of the risk.
 Length of the insurance cover.
 Value of money at the time of taking the policy.
8 (a) Factors affecting choice of raw materials.
 Location of raw materials.
 Cost of raw materials.
 Quality of raw materials. » Terms of purchase
 Lead time.
 Amount of units of raw materials used per production cycle.
 Risk of damage.
 Amount of waste.
 Availability and reliability of the raw materials.
 Amount of the raw materials to be maintained in inventory.
(b) Reasons why enterprises recruit workers.
 To increase production of goods and services.
 To manage business operations.
 To combine with other factors of production to aid production.
 To facilitate the exploitation of idle resources.
 To increase government revenue through paying of tax.
 To increase on the manpower.
 To minimize damage on machines.
9 (a) Consequences of wasting time In an organization.
 It leads to delays in production.
 It lowers the sales volume.
 It leads to a reduction in revenue/profits of the business.
 Leads to poor /late service delivery.
 It puts the organization at a competitive disadvantage, i.e. the organization can be out
competed.
 It leads to consumer dissatisfaction.
 It leads to resource wastage.
 It makes strategic planning difficult.
 It worsens employer-employee relations.
 It lowers the productivity of the firm.
 It destroys team work.
 It delays/prolongs decision making process.
(b) Controls employed by successful entrepreneurs to ensure proper time management.
 Spending time planning and organizing
 Setting goals.

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  Prioritizing time.
 Using a to do list.
 Being flexible.
 Considering biological prime time.
 Doing the right things right.
 Eliminating the urgent.
 Practicing the art of intelligence neglect.
 Avoiding being a perfectionist.
 Conquering procrastination.
 Learning to say no.
 Rewarding themselves
10 (a) Objectives of carrying out creative selling by an entrepreneur.
 To inform or remind the public of the products available for sale,
 To target a particular segment, of the market to whom the products are to be sold.
 To stabilize sales/retain market for the products.
 To increase the sales of the enterprise by attracting new customers and retaining old ones.
 To bridge the gap between the entrepreneur and the customers.
 To outcompete rival brands or to meet the challenges of competition.
 To introduce new brands to the market.
 To maintain sales of seasonal products.
(b) Steps involved in the creative selling process.
 Pre-customer contact.
 Prospecting
 Initial contact.
 Presentation of merchandise.
 Handling objections.
 Closing the sale.
 Suggestion selling.
 Sales follow-up.
(c) Ways of handling customer objections without creating bitter arguments.
 Using a yes - but approach.
 Restating the objection.
 Asking a counter question..
 Using a direct response.
(d) Limitations of creative selling process in marketing of enterprises' products.
 Increases costs of maintaining sales force.
 Spoils the already existing relationships if sales persons are not well trained.
 It only reaches few customers since the interaction covers only one customer/person at a
time.
 The personality and lifestyle of the sales person can be attributed to company products
which lower sales.

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(e) Aspects that form a base for developing marketing programme.
 Product.
 Promotion of the product.
 The place
 Price of the product.
 Positioning
 Packaging
 Planning.
 Probe.
 Perestroika
 Physical evidence.
 People
 Process
 Provision
 Permeate
(f) Tools used in sales promotion.
 Free samples.
 Premium or bonus offer
 Price off offer.
 Coupons.
 Trade fairs and exhibitions.
 Trade stamps.
 Scratch and win offer
 Money back offers.
 Window display.
 Selling goods on credit.
 Offering cash discounts/price reductions.
 Giving donations.
 Organizing competitions or games.
 Creating the right attitudes in your employees.
 Maintaining links with others.
 After sales services.
11. (a) Components of personnel management
 Manpower planning.
 Recruitment.
 Selection.
 Placement,
 Induction training.
 Human Resource Development.
 Determination of employee remuneration.
 Motivation.

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  Communication.
 Termination.
(b) Measures adopted to reduce labour turnover.
 Engaging employees to make them committed.
 Enabling employees to access knowledge.
 Sharing information with employees.
 Optimizing workers performance by providing good working conditions.
 Internalizing the value of the job to create job involvement.
 Empowering employees to enhance their continuity in the enterprise.
 Respecting employees.
 Giving employees adequate and timely remuneration.
 Recruiting employees who are qualified for a particular job.
 Practicing equal /fair treatment of all workers.
 Situations under which the entrepreneur may train his workers.
 When he wants to meet expansion needs.
 When there is need to improve workers' morale.
 If he wants to make a pool for replacement of workers.
 When he wants to increase workers' productivity.
 If he wants to increase workers ability to adopt to new technology.
 When he wants to minimize labour turnover.
 If he wants to increase workers' efficiency.
 When there is need to maximize the utilization of the available human resource.
 If he wants to increase the commitment of employees.
 If he wants to improve employer-employee relations.
 If he wants employees to build a positive perception/feeling about the organization
 If he wants to improve the corporate image of the enterprise.
 In case he wants to carry out delegation and decentralization of authority.
 If he wants to reduce accidents.
 If he wants to give employees a sense of satisfaction through achieving their personal
goals.
 When he wants old employees to adjust to the changing job requirements.
 When he wants to reduce the need and costs of supervision of workers.
11. (a) Contents of a Business Plan
 The General Description Of The Business
 Statement of Mission, Goals and Objectives.
 Financial Plan
 Production Plan
 Organizational Plan
 Marketing Plan
 Action Plan
(b) Importance of preparing a business plan.

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  It encourages the entrepreneur and the people involved in the proposed business to think
about business in a systematic and focused way.
 It defines the specific goals and objectives of the business according to Statement Of
Mission, Goals, And Objectives.
 It consists of an Acton Plan which acts as timetable for implementation of various
business activities in a sequenced way.
 It provides an entrepreneur with information about where the business is going according
to statement of Mission, Goals and Objectives.
 It helps the entrepreneur to identify challenges in advance and lay strategies of
overcoming them according to Action Plan.
 It helps an entrepreneur to monitor the performance of the business overtime using the set
goals and objectives.
 It tests the feasibility of the business idea according to the General Description of the
business and the Action Plan.
 It guides financiers like commercial banks to make appropriate decision whether to offer
a loan to the business or not according to the Financial Plan.
 It gives the new business the best possible chance of success according to the marketing
plan.
 It makes business implementation manageable and effective according to Action Plan.
 It is used to assess the viability of the proposed business according to the Financial . Plan.
 It helps the entrepreneur to obtain permission to operate legally since it is used by . -
different government departments to control and monitor activities of the proposed
 business.
 It shows employees their expected production targets according to Production Plan.
 It spells out the different roles of employees and therefore ensuring job security
according to organizational Plan.
 It helps to assess the SWOT of the business according to the General Description Of the
Business.
12 (a) Ways in which firms compete
 Improving the quality of products.
 Reducing prices beyond those charged by competitors.
 Practicing added convenience i.e. opening early and closing late.
 Using attractive packaging materials.
 Advertising the product persuasively.
 Improving customer care services.
 Facilitating of the business premises.
 Selling on credit.
 Merging with other firms.
 Opening many branches in different parts of the country.
 Motivating business employees and training them.
 Promoting good customer relations.

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  Ensuring convenient location.
 Selling variety of products.
 Providing after sales services.
(b) Factors affecting competition.
 Mobility and accessibility overlap.
 Product overlap.
 Substitution.
 Public awareness
 Product priority
14. (a) Merits of direct taxes over Indirect taxes.
 Direct taxes are more certain because the tax payers are well informed regarding the
amount to pay, the time and the method of payment unlike the indirect taxes that are not
certain.
 They are simple to understand by both the tax collectors and tax payers unlike indirect
taxes that are more complex.
 They are progressive in nature thus facilitate re-distribution of income and wealth unlike
indirect taxes which tend to be regressive in nature
 They are more elastic and flexible and hence can be changed depending on the needs of
the country unlike indirect taxes which are not flexible.
 They are more convenient because they can be paid in installments unlike indirect taxes
which are paid in a lump sum.
 They are easy to collect at a relatively low cost for example pay. As you earn unlike
indirect taxes which are relatively not easy to collect.
 Direct taxes promote civic responsibility among tax payers since tax payers follow how
their taxes are spent by the government thus check on government expenditure unlike
indirect taxes which do not promote civic responsibility.
(b) Contribution of Uganda Revenue Authority in tax administration.
 Assessing and collecting taxes in according with the law.
 Accounting for all the revenue collected to the ministry responsible for finance.
 Facilitating trade and investment by liaising with other government bodies such as
Ministry of Trade.
 Advising government on matters of policy related to tax and revenue administration.
 Ensuring that there is a well trained and highly professional human resource to handle tax
matters.
 Educating tax payers and making them aware of their rights and obligations.
 Ensuring top secrecy of every tax payer's affairs and use tax information in accordance
with the tax law.
 Broadening the tax base by bringing different areas of the economy under tax base
(c) Measures being taken to enable people comply to their tax obligations.
 Reducing corruption and embezzlement of tax revenue.
 Imposing penalties to tax evaders.

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  Shortening the tax payment procedure.
 Shortening tax implementation laws.
 Charging lower taxes.
 Ensuring that taxes are equitable.
 Sensitizing the masses on the role of taxation.
 Ensuring that taxes are simple to be understood by the tax collectors and tax pg
 Developing a tax payer friendly system of tax collection.
 Ensuring political stability so u to boast economic activities.
 Using trained personnel to assess and collect taxes.
 Ensuring proper usage of tax revenue
15 (a) Instruments in Uganda's capital markets
 Shares
 Debentures
 Treasury
 Bonds
 Commercial paper.
Players in Uganda's capital markets
 Capital Markets Authority.
 Uganda Security Exchange.
 Brokers /Dealers.
 Investment Advisors.
 Fund Managers
 Custodians.
 The registrar
 Share holders.
(b) Factors that limit effective operation of the Uganda Securities Exchange (USE)
 Limited liquidity in the country due to poverty which limits saving and investment in
securities.
 Ignorance of the public about operations of capital markets.
 Limited confidence of the public about the operations of capital market and stock
exchange markets due to corrupt managers
 Slow growth of the securities exchange market.
 Limited number of listed companies.
 Political instability in some parts of the country.
 Macro - economic instabilities which affect the value of funds invested in securities e.g.
inflation.
 Low interest rates offered on securities.

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 PART III: PAPER TWO. PROJECT MANAGEMENT.
16 (a)
KONKA BEVERAGES LIMITED
P.O. BOX 169, MENGO
TEL. 0783 779140
MARKETING PLAN
(i) Target Market. The target market includes the residents of Mengo, Rubega,
Wakaliga, Nakulabye and the neighboring areas. This target market area includes
schools and is densely populated. All these demand for juice on a daily basis.
(ii) Products or services. The business produces juice from passion fruits, water melons,
mangoes, lemons and pine applies. These are packaged in 5 litre jerrycans, 2 litres
and 1 litre jerrycans, 500 ml and 300ml bottles.
(iii) Position of competitors, the business has direct competitors, the nearest being Hope
Beverages in Nakulabye and Mukisa Beverage processing company in Mengo. These
produce juice from a single fruit while Konka Beverages Limited produces all
categories -of juice including cocktail Juice.
(iv) Pricing strategies. The price1 ere set basing on costs of production and demand
products.
(v) Terms of sale; The business offers both cash and credit sales to customers, V^H
allows some customers to take the juice and pay in installments
(vi) Promotion and advertising
The promotion objectives are:-
To increase sales by 20% in 9 months
To increase profits by 15% in six months.
The promotional strategies include offering discounts, convenient packaging and
selling variety of high quality juice. The methods of advertising will be radio
announcement over Radio CBS S8.8FM and Bukedde Television. A sign post is also
installed at the junction to the factory.
(vii) Distribution Strategies. The products are sold directly to customers products are sold
directly to customers who visit the factory premises and some Juice is sold through
wholesalers, retailers to consumers. The business has sales persons who distribute fee
juice to places near Kampala and a delivery van is used to dispute to distant places.
(viii) Expected sales (per week)
PRODUCT QUANTITY RATE AMOUNT
Cocktail juice 1000liters 4000 4,000,000
Passion juice 200 litres 2000 400,000
Mango Juice 500 litres 2,500 1,250,000
Water melon Lemon juice 200 litres 2,500 5,000,000
TOTAL 6,150,000

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(ix) Project Marketing expenses.
The business incurs expenses of printing a sign post, business cards and advertising These are
projected at Shs. 1,000,000 per year
(b)
KONKA BEVERAGES LIMITED
P.O. BOX 169, MENOO
TEL. 0782 779140
GUIDELINES TO MANAGE INVENTORY
 All materials received shall be documented.
 Storage facilities shall be put in place.
 Adequate storage levels shall be maintained i.e. overstocking and understanding shall be
avoided.
 Stock shall be issued out using FIFO method to avoid expiry.
 Stock shall be bought in bulk to obtain discounts.
 A high re-order level shall be maintained to enable continuity of the products process.
 Stock records shall be maintained by an experienced store keeper.

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b) Brand label to be pieced on a 2 litre bottle of Juice
KB KONKA
Manufactured In Uganda
By: KONKA BEVERAGES LIMITED
P.O Box 169, MENGO
TEL: 0782 779140
E-mail: konka@vahoo.com
Located on Plot 152, Rubaga Road.

INGREDIENTS
MANUFACTURED DATE: 17/6/2018
Fruits
Preservatives EXPIRY DATE. 17/6/19
Artificial 0.00% Cholesterol
Flavors
Vitamin A
Food colour
CAUTION: Store in a cool and dry place.
Keep your environment clean.
Your number one Juice.
(d) A BID NOTICE FOR SUPPLY OF FRUITS TO KONKA BEVERAGES LIMITED
KONKA BEVERAGES LIMITED
P.O. BOX 169, MENGO
TEL. 0783 779140
Date: 5th June, 2018
To: The General Public
RE: BID NOTICE FOR SUPPLY OF FRUITS
Konka Beverages Limited is a medium sized business dealing in processing of juice from
fruits. It is located in Rubaga Division, Kampala City behind Mengo Hospital.
The procurement officer and the Managing Director of Konka Beverage Limited invite
sealed bids from eligible bidders for weekly supply of fruits to the company.
Bidders are required to submit documents in triplicate to the procurement unit room No. 44,
Mukisa Building not later than 23rd June 2018.
Bid opening will be Friday 28th June, 2018 in the factory's conference Hall at 12:200 noon.
The pre-qualification document is obtained from the office of the procurement officer on
payment of a non refundable fee of Shs.100, 000 (one hundred thousand shillings only).
Prepared by;
NUME ANDREW PROCUREMENT OFFICER

(e)

KONKA BEVERAGES LIMITED

P.O. BOX 169, MENGO
TEL: 0782 779140
EXECUTIVE SUMMARY
Write about:
The Background of the business (include Business name, Address and
Location).
 Objectives of the business.
 The products / services the business offers.
 An overview of the market for the products/services.
 The competitive advantage of the business.
 The projected growth of the business.
 Key members of the business - stakeholders.
 Funding requirements of the business.
Note: Attach Information
[THE ENTREPRENEURSHIP DEPT. HIS-LUGAZI] Page 18
 17(a) MARKETING EXPENSES BUDGET FOR
LWERA TRADING STORE
P.O. BOX 699, KIBUYE
LWERA TRADING STORE
LTS
P.O. BOX 699, KIBUYE
TEL. 0782 779140

MARKETING EXPENSES BUDGET

ITEM NO. DESCRIPTION AMOUNT (Shs)

1. Printing a sign post 1,000,000
2. Radio adverts 600,000
3. Sales persons commissions 1,600,000
4. Printing posters 400,000
5. Business cards 500,000
6. Banners 500,000
TOTAL 4,600,000
Prepared by:
MWANJE ZABIAH
SALES MANAGER

(b) STOCK REQUISITION FORM FOR BUSINESS USE

LWERA TRADING STORE
P.O. BOX 699,
KIBUYE
TEL. 0782 779140

STOCK REQUISITION FORM

No………………..
Department………………………….
Date…………………………

Description of materials Quantity Rate Venue

Authorized by……………………… Supplied from BIN No……………………

Materials Received by……………… Entered in Bin card No………………………
Signed…………………………..
STORE KEEPER

[THE ENTREPRENEURSHIP DEPT. HIS-LUGAZI] Page 19

(c)
LWERA TRADING STORE
P.O. BOX 699, KIBUYE
TEL: 0782 779140
GUIDELINES FOR ENSURING BUSINESS SUCCESS
 Good leadership and management shall be exhibited.
 Clear objectives shall be set and closely followed.
 Efficient and effective planning shall be carried out.
 Appropriate location shall be carried out.
 Support services shall be used.
 Advertising shall be done to increase sales and create awareness.
 Government policies concerning business shall be followed.
 Monitoring of the business operations shall be carried out.

[THE ENTREPRENEURSHIP DEPT. HIS-LUGAZI] Page 20

(d) Weekly work schedule for workers of Lwera trading store
LWERA TRADING STORE
P.O. BOX 699, KIBUYE
TEL: 0782 779140
WEEKLY WORK SCHEDULE
DAY EMPLOYEES DESCRIPTION EMPLOY START 1 END REMARK
NAME OF WORK EE TIME TIME S
NUMBER
Monday Zari Jane Weighing products 01 7:00am 9:50am
Kizito Bonny Packaging products 02 10:00am 12:00am
Kula Anne Sealing products 03 1:00pm 5:00pm
Tuesday Mbuyaga Tom Loading 04 7:00am 12:50am
Kamuje Martin Weighing products 05 9:00 am 10:00pm
Muto Brenda Organizing store 06 11:00am 1:15pm
Wednesday Zari Jane Weighing products 01 8:00am 10:00am
Kula Anne Packaging products 03 10:30am 1:50am
Kizito Bonny Sealing sacks 02 2:00pm 6:00pm
Thursday Mucuzi Fausta Marketing "" - 07 7:00am 9:50am
Kisakye Transportation 08 9:50am 12:06am
Benjamin Kirabo Packaging products 09 12:30pm 6:00pm
Grace
Friday Mbuyaga Tom Distribution 04 7:00am 12:50pm
Kamuje Martin Weighing products 05 8:00am 10:00am
Kula Anne Offloading materials 03 10:30pm 1:15pm
Kizito Bonny Packaging products 02 2:00p.m 6:00p.m
Prepared by:…………….
KIBULAMU ANGELLAH
PRODUCTION MANAGER

[THE ENTREPRENEURSHIP DEPT. HIS-LUGAZI] Page 21

(e) Programme for determining profitability of the business

LWERA TRADING STORE

P.O. BOX 699, KIBUYE
TEL: 0782 779140
PROGRAMME FOR DETERMINING PROFITABILITY OF THE BUSINESS
DATE ACTIVITY PERSON IN. REMAR
CHARGE K
17-21/06/2018 Deciding on the type of Kitwe James
business to establish
22/6/18-23/6/18 Choosing location Kitu Anthony
24/6/18-26/6/18 Forecasting the sales Mazima Dan
27/6/18 Estimating the costs Mazima Dan
29/6/18 Estimating the profits Mazima Dan
Prepared by………………….. Approved by:
………..
MAZIMA DAN Name Name:
………………
SALES MANAGER Title:
………………..

[THE ENTREPRENEURSHIP DEPT. HIS-LUGAZI] Page 22

(f) Delivery note to be sent to customers

LWERA. TRADING STORE

P.O. BOX 699, KIBUYE
TEL. 0783 779140
Date:………………
Our Ref:
Delivery Note 100
DELIVERY NOTE
To:
Please receive the following:
Delivery by Signature.
Item No. Quantity Description Unit price Total amount

Delivery by:…………. Approved by :…………

Name: ……………… Name………….………..
Title:…………………. Title: …………………

18. (a)
DIVINE MERCY RESTAURANT
P.O. BOX 666, KAMPALA
TEL. 0782 779140
ROOT CAUSE ANALYSIS FOR THE DECLINE IN FO0D QUALITY
Statement of the problem: Poor preparation of the food quality
This is caused by: Poor preparation of the food
Why? Uncommitted workers
Why? Workers are De-motivated
Why? Delays in their salaries
Why? Low capital in the business.
Root cause: Inadequate capital in the business.
Action Steps:
 Obtaining a loan to increase the capital base in the business.
 Paying workers salaries in time.
 Supervising workers while preparing the meals.

[THE ENTREPRENEURSHIP DEPT. HIS-LUGAZI] Page 23

(b) Training programme for employees of DIVINE MERCY RESTAURANT
DIVINE MERCY RESTAURANT
P.O. BOX 666 KAMPALA
TEL. 0782 779140
TRAINING PROGRAMME
DATES ACTIVITY PERSON IN REMARKS .
CHARGE
17/6/18- Identifying organizational objectives Nsujju Tom
18/6/18
19/6/18 Assessing the needs Lumonde Allan
20/6/18 Selecting training targets Lumonde Allan
21/6/2018 Selecting trainees Muwogo Angel
22/6/2018 Choosing training methods Nsujju Tom
23/6/2018 Selecting competent trainers Kawunga Jamil
24/6/2018 Administering training Nsujju To
24/6/2018 Evaluating the training Nsujju Tom
Prepared by:……………. Approved by:…………
NSUJJU TOM Name:………………….
HUMAN RESOURCE MANAGER Title:…………………….

(c)
DIVINE MERCY RESTAURANT
P.O. BOX 666, KAMPALA
TEL. 0782 779140
GUIDELINES TO BE FOLLOWED BY THE SALES WORKERS WHEN HANDLING
DIFFICULT CUSTOMERS
 Customers objections shall be acknowledged and carefully evaluated.
 Words being used by customers and the feelings expressed shall be carefully listened to.
 Customers shall be made to open up so as a to obtain the basis of their being difficult
 Customers shall be given time by suggesting to handle the matter later.
 Arguments shall be held until when customers are ready for them.
 Customers shall be compensated by price reductions, refund or replacements in case of
fault in the original goods supplied.
(d) Merit rating form for usage in evaluation of workers’ performance
DIVINE MERCY RESTAURANT
P.O. BOX 666 KAMPALA
TEL: 0782 779140
MERIT RATING FORM

Period of assessment: From……………. To ……………………………….

SECTION A; Personal information (To be filled in by the appraisee)
Name of appraise……………………………….. Date of birth …………………………...
Job title/Rank …………………………………….Salary scale …………………………
Department ……………………………………….Division ………………………
SETCON B: Assessment of the level of achievement. A greed key outputs, indicators
Key output Performance Comments on performance

SECTION C: ASSESSMENT OF CORE COMPETENCIES

Competences Assessment of performance level attained (please tick) Comments

5 4 3 2 1 N/A
Knowledge and skills
Planning
Leadership
Team work
Time management

SECTION D: Action plan to improve performance

Performance gap Agreed action Time frame

SECTION E: Comments, recommendation (if any) and signatures

Comments of the appraisee ………………………………………………………………
Signature ………………………………...................................Date ……………………
Comments of the appraiser ……………………………………………………………......
Signature………………………………………………………. Date …………………
Comments of Responsible officer ……………………………………………………….
Name: ……………………………………………………. Job title: …………………
Signature: …………………………………………………Date: ………………………
(e) inviting the general public to attend the launching of new pizzas
DIVINE MERCY RESTAURANT
P.O. BOX 666 KAMPALA
TEL: 0782 779140
To: The General Public Date: 17/6/2018
NOTICE
SUBJECT: LAUNCH OF N1CW PIZZAS
You are hereby invited to attend a launch for new Pizzas. It will take place from 20th June, 2018
in the Restaurant Gardens starting at 8:00a.m.
Looking forward to seeing you then.
Yours faithfully,
……………………….
KAGEGE ISMAIL
SALES MANAGER

19. (a)

MUKISA DETERGENTS LIMITED

P.O. BOX 69, KIBUYE
TEL: 0782 779140
ROOT CAUSE ANALYSIS FOR HIGH LABOUR TURNOVER
Statement of the problem: High labour turnover
This is caused by: Workers leaving the business
Why? Workers are not motivated
Why? Low and delayed salaries
Why? Limited capital in the business.
Why? Maladministration
Root cause: Inadequate capital in the business.
Action steps to be taken;
 Obtaining a loan to boost he business capital
 Increasing workers’ salaries and paying them in time.
 Motivating workers with other methods other than salaries to make
them satisfied with the job.
19 (b) Package sheet to accompany customers’ products
MUKISA DETERGENTS LIMITED
P.O. BOX 69, KIBUYE
TEL: 0782 779140
Package Sheet No. 15 Date: 17/6/2018
PACKAGE SHEET
Your order No. 205
To: GLORY TRADING STORE
P.O. BOX 64, KAMPALA
This package contains the following items;

ITEM NO. DESCRIPTION QUANTITY

1 Bottles of 300ml 100
2 Bottles of 500ml 20
3. Bottles of 1 litre 50
4. Bottles of flavored liquid soap
10
LEDGER FOLIO 4/6
Prepared by: ……………CHECKED BY:…………ENTERED IN LEDGER BY………
KUNAABA DAN………… ………… ……………
SALES MANAGER …………… …………
(c)

MUKISA DETERGENTS LIMITED

P.O. BOX 69, KIBUYE
TEL. 0782 779140
PRODUCTION PLAN
(i) Business premises and location. The business is located in Nalukolongo Plot 16 Ring road,
Rubaga Division, Kampala District. The premises are rented at a cost of Shs. 4,000,000 per
year. It is 120 metres length by 100 metres width.
(ii) Manufacturing process and flow. The business produces high quality liquid soap. Basing on
the projected demand, it produces 1000 litres per month.
The process flow is as below.

Weighting raw materials Mixing/stirring Blending

Storing packed soap,

selling and distribution Packaging Storing the mixed solution
(iii) Choice of machinery and equipment. The business uses buckets, stirrer, jenycans, weighing
scale, spoons.
These are bought from Kikuubo Trading Centre at a cost of Shs. 2,000,000.
(iv) Raw materials and consumables. The business uses water as a main raw material together
with sodium metasilicate, sulphonic acid, caustic soda, Ugaro, Table salt, Food colour,
perfume and urea. These are bought from Nakasero in Kampala at a cost of Shs. 1,000,000
per month,
(v) Labour requirements. The business employs 4 workers including one chemist with a Diploma
and 3 casual workers with UACE certificate. The chemist earns salary of Shs. 600,000 per
month, while casual worker earns Shs. 300,000 per month
(vi) Packaging. The business uses bottles of different sizes and Jerry cans of litres 5 litres, 10
litres and 20 litres. These are personalized and are ordered from Mbarara industrial area at a
cost of Shs.600000 per month.
(vii) Power and utilities. The business uses water and electricity, are estimated at Shs. 500,000,
white power to the tune of Shs.100000 is consumed.
(viii) Transport facilities. The business has a pickup which it acquired at Shs. 8,000,000. This uses
of fuel Shs. 500,000 per month.
(ix) Waste disposal. The wastes include the soap remains in the buckets after packaging. These
are used to clear the rooms of the factory.
(x) Other facilities required. The business uses office furniture, a computer, an office phone and a
printer. These cost Shs. 3,000,000.
(xi) Purchasing and Re-order level plan. The business buys in bulk to obtain discounts arising
from bulk purchases and reduce transportation costs. The re-order level for all items is half of
the total quantity required weekly.
(d) Application form for usage in recruitment exercise
MUKISA DETERGENTS LIMITED
P.O BOX 69, KIBUYE
TEL. 0783 779140
APPLIATION FORM
Fill in this form in triplicate and send to the Human Resource Manager: toiukis Detergents
Limited. P.O. Box 69, Kibuye
1. Post applied for ……………………………………………………………………..
Ref. No…………………………………………………………………………...
2. (i) Full Names:……………………………………………………….
(ii) Date of birth ……………………………………………………
(iii) Gender………………………………………………………
(iv)Home District…………………………….(v) Permanent Address……………..
3. Fathers/Guardian's name………………………………………………….
Nationality………………………………………………………………….
4. Schools/Colleges /Universities attended
School/ university YEAR Qualification Grade
obtained
From To

5. When would you be available for appointment if selected?.......................................

Have you ever been convicted of any criminal offence?............................if so give details and
sentences imposed.
I hereby declare to the best of my knowledge and belief that particular!.- 1 in this form are true
and complete in all aspects.
Date…………………..Signature………………………………….. Names………………
Referees: .1………………………………………2……………………………………
Address……………………………………………Address………………………………
(e) A credit status inquiry on a customer of Mukisa Detergents Limited who wants products on
credit.
MUKISA DETERGENTS LIMITED
P.O BOX 69, KIBUYE
TEL. 0782 779140
Our Ref: 01/MDL/CB/17/6/2018 Date: 17th June, 2018
Your Ref:
The Manager,
Centenary Bank
Mapeera Branch
P.O. Box 5, Kampala
Dear Sir,
RE: CREDIT STATUS INQUIRY
We have been approached by Mr. Biiso Tom of Mirembe formation centre requesting for
extension of credit services to her firm on credit to the tune of Shs.4,000,000.
She has given your bank as a reference. We request you at your earliest convenience to feed us
information concerning the same.
Information will be kept in confidential way and will not be revealed to her. A self addressed
envelope has been enclosed for use. Hoping for your positive consideration.
Yours faithfully,
………………………….
MUSEGE BLESSING
MANAGING DIRETO
20 (a) Program for becoming a social entrepreneur
HOPE ENVIRONMENT SOLUTIONS
P.O. BOX 100 MUKONO
TEL. 0772 405060
DATE ACTIVITY PERSON ON REMARKS
CHARGE
17/6/2018 Developing an idea for becoming an Musoke Tom
entrepreneur
18/6/2018 Discovering the vision, passion and skills Kato Sula
20/8/2018 Identifying the opportunities in the Musoke Tom
community
21/8/2018 Matching the vision with opportunities Musoke Tom
available in the community. Kato Sula
22/6/2018 Acting and spreading change Musoke Tom
23/6/2018 Mobilizing the required resources Kato Sula
24/6/2018 Constructing the needed buildings. Kigozi Timoth
25/6/2018 Recruiting workers Nakato Liz
26/6/2018 Launching the social enterprise Musoke Tom
30/6/2018 Starting operations of the enterprise Musoke Tom
Drawn by: Approved bv:
MUKASA JOHN
SOCIAL ENTREPRENEUR

(b)
HOPE ENVIRONMENT SOLUTIONS
P.O. BOX 100, MUKONO
TEL. 0782 779140
THEORY OF CHANGE
VISION: To have a drought free environment by 2025
IMPACT: Improved standards of living for the people.
OUTCOMES: Having trees and forests planted in all parts of the region.
ACTIVITIES: Giving seedlings to people, encouraging tree planting, sensitizing about
environmental protection
INPUTS: Financial resources (money), Tree seedlings, herbicides,
information resources (knowledge), human resources (people).

(c)
HOPE ENVIRONMENT SOLUTIONS
P.O. BOX 100, MUKONO
TEL. 0782 779140
GUIDELINES FOR ENSURING SUSTAIN ABILITY OF THE SOCIAL ENTERPRISE.
  Profits shall be re invested.
 Social responsibility shall be promoted.
 Locally available resources shall be put to use.
 Community acceptance shall be lobbied for.
 Legally acceptable business shall be carried out.
 Diversification of business shall be carried out by having variety of seedlings.
 Employees shall be trained.
 The business shall be insured.
 Donations shall be lobbied for.
 Drawings shall not be obtained from the business/carried out.

(d) An action plan to be followed during implementation of planed activities.

HOPE ENVIRONMENT SOLUTON
P.O. BOX 100, MUKONO
TEL: 0782 779140

ACTION PLAN FOR IMPLEMENTING PLANNED

ACTIVITY TIME PERSONS RESOUR INDICATORS OF REMARKS

FRAME RESPONSIB CES SUCCESS
(2018) LE NEEDED
Carrying out Market 17-18 June TONNY Money Availability of
Survey 2018 JUMA Stationery Money.
Preparing a Business 19/6/2018 Musoke Tom Money Business
Plan Han
prepared
Mobilizing the 20-22/6/2018 Kato Sula Money & Resource obtained
required Time,
resources collateral
security,
Business
Plan.
Selecting a suitable 21-23/6/2018 Musoke Tom Money Location obtained.
Location
Construction of 24/6/2018- Tonny Juma Building Building
Business" 1/9/2018 materials constructed
Buildings money
Purchasing materials to 2/9/2018 Musoke Tom Materials Materials- bought.
use
Recruiting Workers 3-4/9/2018 Musoke Tom Money Workers Recruited.
stationery.
 Installing utilities 5/9/2018 Katosula Money, Utilities installed.
land
agreement
Production trial 6/9/2018 Musoke Tom Seedlings Seedlings grown.
Launching the Business 2/10/2018 Musoke Tom Seedlings Seedlings sold
Money,
Prepared by: ………………….…. Approved by:
Musoke Tom
Social Entrepreneur.

(e) Memo Inviting volunteers to the social enterprise to discuss the causes of drought.
HOPE ENVIRONMENT SOLUTIONS
P.O. BOX 100, MUKONO
TEL: 0783 279140
MEMO
FROM: SOCIAL ENTERPRENEUR
TO: VOLUNTEERS
DATE: I7th JUNE, 2018
REP: 01/HES/17/6/2018
SUBJECT: MEETNG TO DISCUS CAUSES OF DROUGHT
You are invited for a meeting to discuss the causes of drought which is the main threat to our
environment today. The meeting is to take place on 24th June $018 in our gardens starting at
8:00am.
Hoping to see you them.
…………………………
MUSOKE TOM
SOCIAL ENTREPRENEUR

Gross Profit
21 (a) (i) Average mark up = x 100
Cost of sales
Cost of sales = Opening inventory + Net purchases - Closing inventory
=570,000,000 +1,950,000,000 - 200,000,000
=Shs. 2,320,000,000
Also Gross Profit - Turnover - Cost of Sales
=6,000,000,000 - 2,320,000,000
=Shs. 3,680,000,000
3680000000
Average mark up = x 100
232000000
=158.6%
≈159%
Interpretation: For every Shs. 100 of the cost of sales, Shs. 159 was generated as a gross profit.
(ii) Net profit margin :
Net profit
¿
Turn
x 100 ¿
¿
Net Profit =Gross Profit - Overheads
=3,680,000,000- 2,600,000,000
= Shs. 1,080,000,000
Net profit margin
108000000
¿ x 100
6000000000
=18%
(iii) Credit payment period in weeks
Creditors
¿ x Number of Weeks∈a year
Net purchases
300.000.000
¿ x 52 weeks
1,950,000,000
=8 weeks

Interpretation: The business pays its creditors after 8 weeks. OR On average the business takes
8 weeks to pay the creditors.
(iv) Inventory turnover ratio
Cost of Sales
¿
Average stock

Opening stock +Closing+Closing stock

Average stock =
2
570.000.000+200.000 .000
¿
2
= Shs. 385,000,000
2320000000
Inventory turnover ratio ¿
385000000
=6 times
Interpretation. The business sells and replaces its stock 6 times in a trading period.
(v) Stock turnover period
Average Stock
¿ x Number of days ∈a year
Cost of sales
385000000
Cost of sales= x 365 days
2320000000
=60.57 days
≈61 days.
Interpretation: The business holds, stock for 61 days before it is sold.
 Absolute liquid assets
Cash ratio ¿
current liabilities
Cash+Bank
Accounts payable+unpaid rent
460000000+2000000000
¿
300000000+6000000
2640000000
¿
306000000
=8:1
Interpretation: The business can clear off its current liabilities using its absolute ) assets 8 times
Current Assets
(vii) Working Capital ratio
Current liabilities
Current Assets =Average debtors + Closing Inventory + Bank + Cash + Interest
receivable due
=920,000,000 + 200,000,000 + 2,000,000,000 + 460,000,000
+40,000,000
= Shs. 3,620,000,000
Working capital ratio
3620000000
¿
306000000
=11.83.1:1
≈12:1
 [CERETA 2018 ENT SEMINAR SOLUTIONS] [Friday, May 21, 2021]

Interpretation: The business can clear its current liabilities using current assets 12 times
(viii)Return on Capital employed
Net Profit
¿ x 100
Capital employed
Capital employed=Fixed Assets + Working capital
=12200000000+ (3620000000-306000000)
=12200000000+3314000000
=Shs.15514000000
1080000000
Return on Capital employed = x 100
15514000000
=6.96%/≈7%
Interpretation: For every Shs.100 of capital employed in the business, Shs.7 was generated.

(ix)Economy on overheads ration/Percentage of expenses to turnover

Total overheads
¿ x 100
Turnover
2600000000
¿ x 100
6000000000
=43.3%
Interpretation: For every Shs.100 of turnover, Shs.43.3 is spent on overhead or expenses.
(x) Non Current Assets turnover
Net sales
¿ x 100
Non current asses
6000000000
¿
12200000000
=49%
Interpretation: For every Shs.100 of the noncurrent assets in business, Shs.49 is generated as
turnover
Or
The noncurrent assets generate sales revenue of 49%.
(xi) Leverage ratio/Gearing ratio
Longterm debt
= x 100
Total Equity
Total assets =Noncurrent assets + Current assets
=12200000000+3620000000
=Shs.15820000000
Total liabilities=Long term liabilities + Current liabilities
=1000000000+306000000
=Shs.1306000000
Equity =15820000000-1306000000
=Shs.14514000000

[IHS: LUGAZI ENTREPRENEURSHIP DEPARTMENT ©2021] Page 36

 [CERETA 2018 ENT SEMINAR SOLUTIONS] [Friday, May 21, 2021]

1000000000
Leverage/Gearing ratio= x 100
14514000000
=0.07x100
=7%
Interpretation: 7% of the business funds borrowed while 93% are out of equity.
(xii) Debt Ratio
Long term debt
¿ x 100
Total Assets
1000000000
¿ x 100
15820000000
=6%
Interpretation: For every Shs.100 of the business assets, Shs.6 is financed by long term debts.
(b) Uses of financial ratio to an entrepreneur.
 They act as bench mark for evaluating the business financial position.
 They compare performance of the business.
 They are used by investors' in evaluating the business in case it wants shares.
 They act as a basis for obtaining loans.
 They are used in tax assessment.
 They act as a basis for making future business plans.
22.(a) (i) VAT chargeable on flat irons
18
= x (Sales – purchases)
100
18
¿ x (12.000,000−15.000 .000)
100
=Shs. 540,000
18
= x 3,000,000
100
VAT on extension cables
18
¿ x (sales− purchases)
100
18
¿ x (8000000−6000000)
100
18
¿ x 2000000
100
=Shs.360000
VAT on Electric Kettles
18
¿ x (sales− purchases)
100
18
¿ x (5000000−3500000)
100
=Shs. 270,000

[IHS: LUGAZI ENTREPRENEURSHIP DEPARTMENT ©2021] Page 37

 [CERETA 2018 ENT SEMINAR SOLUTIONS] [Friday, May 21, 2021]

(a) (ii) VAT Liability to URA

=VAT on Flat Irons + VAT on Extension cables + VAT on electric
kettles
= 540,000 + 360,000 + 270,000
=Shs. 1,170,000
(iii) Gross sales value of kettles inclusive of VAT
=Selling price of kettles + VAT
=5,000,000 + 270,000
=Shs. 5,270.000
(b) (i) PAYE for Nkwagala
Taxable Income =Basic Pay + Allowances
10 0
=500,000 + x 1,500,00
100
=1,500,000 + 150,000
=Shs. 1650000
30
PAYE = 25,000 + X (1,650,000−410,000)
100
30
= 25,000 + x 1,240,000
100
=25,000 + 372,000
=Shs. 397000
PAYE for Osobola
Taxable Income =Basic Pay + Allowances
10
= 12,000,000+ x 12,000,000
100
= 12,000,000 + 1,200,000
=Shs 13200000
PAYE
30 10
= 25,000+ X (13,200,000−410,000) + X (13,200,000−10,000,000)
100 100
30 10
= 25,000 + X 12,790,000 + X 3,200,000
100 100
= 25,000 + 3,891,000+320,000
= Shs. 4.236.600
(ii) Nkwagala's Net income alter taxation.
= Taxable Income - PAYE
= 1,650,000-397,000
= Shs. 1,253,000
Osobola's Net Income after taxation.
=Taxable Income - PAYE
=13,200,000 - 4,236,000

[IHS: LUGAZI ENTREPRENEURSHIP DEPARTMENT ©2021] Page 38

 [CERETA 2018 ENT SEMINAR SOLUTIONS] [Friday, May 21, 2021]

= Shs. 8,964,000
(c) (i) Gross Annual Income =Total Income from different sources - Tax exempt Income.
=Property income + Employment income + Business Income – tax exempt
income.
=1,200,000 2,400,000 + 1,600,000-200,000
=5,200,000 - 200,000
=Shs.5000000
(ii) Chargeable Income for the year
=Gross Annual income - Total expenses and losses.
=5,000,000 - 500,000
=Shs, 4,500,000
(iii) Income tax paid
¿
=120,000 + 20 ¿ 100 x ¿
20
=120,000 + x 480,000
100
= 120,000 + 96,000
=Shs. 216,000
(d) (i) Gross chargeable rental income
=Rental income - 20% provision for expenses and losses,
Rental income =2 x 320,000
= Shs. 640,000
Gross chargeable rental income
20
=640,000 - x 640,000
100
=Shs. 640,000 - 128,000
=Shs.512, 000
(ii)Net chargeable rental Income
=Gross chargeable rental income - Threshold for rental tax
=Shs. 512,000-235,000
=Shs. 277,000
(iii) Rental tax liability
20
¿ x Net chargeable rental income
100

20
¿ x 277,000
100
= Shs. 55,400
(e) (i) Excise duty
50
¿ x ¿)
100

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Customs value= CIF Value Exchange rate

= 6,500 x 3500
=Shs. 22,750,000
Import duty =25% of customs value
25
¿ x 22,750,000
100
=Shs. 5,687,500
Excise duty
50
¿ x (22,750,000+5,687,500)
100
50
¿ x 28,437,500
100
=Shs.1 4,218,750
(ii)VAT
18
¿ x ( custom value+ Import duty + exice duty )
100
18
¿ x ( 22,750,000+5,687,500+14,218,750 )
100
18
¿ x 42656250
100

(iii)Total tax payable = Import duty + Excise duty + VAT + withholding tax
Withholding tax =6% of customs value.
6
¿ x 22750000
100
=Shs. 1,365,000
Total tax payable =568,500 + 14,218,750 + 7.687,125 I 1,365,000
=Shs. 28,949,375

(iv) Gross value of the car inclusive of all taxes

Customs value + Total tax payable
22,750,000 + 28,9490,375
Shs.51699375
(f) Dangers of tax evasion.
Denial of public /government tenders
Penalties for non payment
Closure of the business.
Forceful payment of arrears.
Portrays a bad public image.

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23. (a)
LUBABU TRADER'S
CASH FLOW STATEMENT
FOR THE MONTH OF MAY, JUNE, JULY AND AUGUST 2017
DETAILS MAY JUNE JULY AUGUST
Shs. Shs. 8hs. 8hs.
Cash balance b/f
Cash in hand 50,000,000 (7,600,00) (50,175,000) (77,440,000)
Overdraft (60,000,000)
Add: Cash inflows.
Cash sales 25,000,000 25,000,000 25,000,000 25,000,000
Receipts from debtors 15,000,000 18,750,000 18,750,000 18,750,000
Loans 12,000,000 16,000,000
Donation 5,000,000 5,750,000 6,612,500
Total cash inflows 42,000,000 41,150,000 15,325,000 (27,077,500)
Less: Cash out flows
Loan principal (1st loan) 3,000,000, ' 3,000,000 3,000,000 3,000,000
nd
Loan principal (2 loan) 1 4,000,000 4,000,000
Interest on 1st Loan 600,000 1 600,000 600,000 600,000
nd
Interest on 2 Loan 800,000 800,000
Workers salaries 14,000,000 14,000,000 14,000,000 14,0000,000
Machine installation 6,000,000 12,000,000 9,000,000 3,000.000
Cash purchases 10,000,000 10,000,000 10,000,000 10,000 000
Payments to creditors - 35,000,000 35,000,000 1 35,000,000
Payments for utilities 4,000,000 3,600,000 3,240,000 2,916,000
•Corporation tax 12,000,000 13,125,000 13,125,000 13.125000
Total cash outflows 49,600,000 91,325,000 92,765,000 1 86,442000
Net cash position (7,600,000) (50,175,000) (77,440,000) (113,518,500)

(b) Net cash position.

- The business had a deficit of Shs. 7,600,000 by the end of May, which increased to a
deficit of Shs. 50,175,000 by the end of June 2017.
- It increased to a deficit of Shs. 77,440,000 by the end of July and finally to a deficit of
Shs. 113,518,500 by the end of August 2017.
- This indicates that a business is not doing well,
(c) Measures of ensuring proper management of cash.
 Document and balancing all physical cash and cash records at the end of each day.
 Banking all cash received intact.
 Documenting all cash disbursements and authorizing them either personally or assigning
an official.
 Controlling all cash receipts and other documents related to accountabilities for cash
 Receiving a bank statement on regular basis and reconciling it with the business records.
 Keeping cash at the business premises under key and lock in lockable safes.

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 Avoiding spending of business cash on personal matters.

 Taking less salary out of business.
 Employing auditor* surprisingly to check for errors and fraud made by workers.
 Counting properly all cash received to ensure that it is correct.
 Monitoring all workers receiving and paying cash to control fraud.
24. (a) Behavioral characteristics associated with a strong need for achievement.
 Formulation of concrete goals which are not impossible or not difficult but not too easy.
 Development of a strong internal commitment or involvement with the goal.
 Taking personal responsibility for the outcome.
 Experimenting with novel activities to reach the set goal.
 Analyzing the environment to create opportunities for achievement rather than waiting
for chances to come one’s way.
 Anticipating possibilities of success and failure and do something about obstacles causing
failure.
 Seeking help from experts rather than from friends.
 Deriving maximum satisfaction from achievement itself.
 Experiencing positive feelings of joy and satisfaction in achieving moderately
challenging goals.
 Learning from feedback.
(b) Factors that affected Mr. Kibobe choice of a business idea.
 Availability of market.
 Availability of capital.
 Presence of skills / His level of education.
 Level of development of infrastructure.
 Availability of labour.
 Availability of business support services.
 Availability of space.
(c) Steps followed when taking out the insurance policy.
 Inquiring about the best insurance company by acquiring quotations.
 Deciding on which insurance company to get along with.
 Analyzing the budget and deciding on how much money to pay for insurance.
 Filling a proposal form.
 Calculating the premiums and signing a proposal form.
 Issuing a cover note.
 Issuing of an insurance policy.
(d)Ways in which Mr. Kibobe ensures better time management.
 Selecting priorities.
 Keeping diaries
 ' Reducing paper work by using computers.
 Taking notes.
 Reading useful materials during free time.

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(e) Benefits of selling on cash basis.

 Avoids risks like bad debts.
 Ensures steady supply of working capital to the business.
 Increases cash inflows to the business.
 Leads to business expansion.
 Makes planning easy.
 Enables selling of small value items.
 Avoids enemy with debtors.
 Enables selling to unknown people to unfixed places.
(f) Lessons from the case study.
 Train to acquire relevant skills;
 Aim at self employment.
 Set goals in business.
 See help from experts.
 Have good business ethics with competitors.
 Select good location for the business.
 Insure your business against risks.
 Involve workers in business management.
 Ensure proper book keeping and documentation
 Avoid selling on credit basis.
 Clear instructions to give workers.
 Make proper use of your time.
25 (a) Description of the business project should Include the following:
 Business name and address.
 Business location.
 Purpose i.e. vision, mission, goals and objectives.
 Products/services offered.
 Date of establishment.
 Nature of ownership/legal form of business.
 Customers served.
 Description of assets /premises.
 Uniqueness of the business.
 SWOT analysis.
 Sources of funds.
 Note: Attach Evidence
(b) Entrepreneurial competencies involved in business .
 Knowledge
 Skills
 Traits.
Note: Attach evidence
(c) Measures for minimizing production COSTS

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 Making labour work for long hours

 Reducing fringe benefits for labour.
 Buying raw materials from the cheapest source.
 Employing few workers.
 Setting up quality standards/objective to be achieved.
 Giving clear instructions to all workers.
 Using quality raw materials.
 Ensuring cleanliness of business premises.
 Motivating employees to keep their morale high.
 Training workers to improve efficiency and avoid poor quality work.
 Giving workers low pay.
 Monitoring and supervision of production process.
 Undertaking market research.
 Using good and beautiful packaging.
 Using better methods of production / superior tools and technology or quality machines.
 Observing technical specifications regarding quality and quantity.
 Using good storage facilities.
 Employing skilled personnel/workers.
 Encouraging specialization and division of labour.
 Ensuring good working conditions and specialization to increase workers morale.
 Practicing proper accountability or funds to avoid unscrupulous expenditure.
 Using right quantity of raw materials to reduce on the number of workers so as to reduce
labour costs,
 Specifying duties and responsibilities of all employed persons to minimize conflicts,
duplication of work and wastage of time,
 Planning the production process layout to reduce slack times, repetitive operations and
reduce unnecessary movements.
 Numbering the storage bins and safes for easy reference and retrieval of stored material.
 Establishing the time gap between placing an order and receiving the materials ordered
for to avoid delays.
 Fixing time standards for all operations by clearly specifying the minimum and maximum
times.
(d) Marketing mix for the business project.
Write about
 Price
 Product
 Place
 Promotion
 Positioning
 Packaging
 People Etc.

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(e) Characteristics of entrepreneurial environment which influenced entrepreneurial attitudes.

 Opportunity orientation.
 Uncertainty
 Resource scarcity.
 Flexibility
(f) Challenges encountered in marketing of business products
 Challenge of conducting effecting effective market research of identity the needs
customers.
 Challenge of fixing affordable prices.
 Challenge of identifying credit worthy customers to be offered credit.
 Challenge of identifying appropriate promotion strategies.
 Challenge of unfavorable weather like rain that hindered movements.
 Challenge of selecting appropriate channel of distribution for the products.
 Challenge of introducing new products.
 Challenge of competition with other sellers/producers of similar goods of canteen.
 Challenge of maintaining quality of the products.
 Challenge of minimizing the marketing expenses.
 Inadequate transport facilities to help in the marketing of the products.
(g) Financial management activities.
 Preparing budgets.
 Preparing books of accounts /record keeping.
 Purchasing inputs.
 Paying workers
 Banking surplus funds periodically.
 Estimating costs.
 Estimating profits.
 Keeping source documents.
 Pricing products.
 Supervising and monitoring daily cash receipts.
 Involving in financial decision making related to investment.
 Ensuring efficient financial control.
(h) How common causes of failure ware avoided.
 Ensuring suitable location.
 Having dear objectives.
 Exhibiting good management and use of skilled labour.
 Establishing good customer care.
 Producing high quality products.
 Ensuring appropriate pricing.
 Using good selling and distribution methods.
 Employing security personnel to safeguard business assets.
(i) How start up capital was raised.

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 The source was subscription fee and share capital.

 The meeting was held on………at ……………
 Students suggested various sources of capital including subscription fee, membership,
buying shares, fundraising and selling shares.
 It was resolved that a subscription fee of Shs. 3,000 shares be sold at Shs. 1,000 per
share.
 This raised a grand total of Shs. 470,000 from subscription fee of 60 members and sale of
29 shares.
 The idea was taken to the subject teacher.
(j) Procedures followed when establishing the business
 Patron/subject teacher informing the students about the need to start a business project as
a UNEB requirement.
 Choosing the school business club executives.
 Carrying out research/survey on the various businesses.
 Selecting the business project to undertake.
 Writing the club business plan and constitution.
 Raising the startup capital.
 Constructing/obtaining business premises (if needed).
 Purchasing inputs, tools and equipment.
 Carrying out trial run/test production.
 Launching of the business project.
 Commencing of actual production
(k) How the business was dissolved.
 A meeting was held about dissolution of the business.
 The treasurer presented financial statements in the second meeting.
 The previous minutes about business financial performance were reviewed.
 Fixed assets were sold off.
 The proceeds were shared amongst the members.
 Members made plans of how to continue with the business project in vacation.
****Other .businesses that would have been operated along side the business project.
Consider input - output relationship.
E.g. For a fruit processing project, other businesses could be.
- Fruit kiosk - to sell fruits to the project.
- Transport business - to bring in fruits.
- Restaurant - To sell food sold alongside fruits.
- Guest house - To host project visitors.
- Biogas production - To process wastes and feelings into power.
26. (a) Executive summary for a business attached to.
Note: Write about these. Attach evidence.
- The background of business, Show location, address and ownership of business.
- Objectives of the business, (short term)

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- The products/services the business offers.

- An overview of the market for the product/ service*.
- The competitive advantage of the business.
- The projected growth of the business.
- The key members of the business - stakeholders.
- Founding requirements of the business.
(b)
Vision for Friends Bakery.
To be the leading bakers in Uganda.
Mission for friends Bakery
"To improve peoples' diet through providing high quality bakery products at reduced prices".
(c) Operational methods considered when analyzing competition.
- Quality of products/ service.
- Hours of operation.
- Skills of personnel.
- Methods of selling/ distribution channels.
- Inventory levels.
- Reputation of the business.
- Packaging.
- Warranties and guarantees
- After sales services e.g. maintenance.
(d)Factors influencing quality standards
- Quality of raw materials.
- The production process.
- Cleanliness/Hygiene of the workplace. -
- Technical specifications regarding quality.
- Quality standards set by the entrepreneur.
- Quality standards set by regulatory authorities
- The level of Human resource management.
- The level of financial management.
- Storage of raw materials and finished goods.
- Mode of packaging.
- Handling of the products during distribution.
(e) Benefits of investing in shares.
- Earns dividends.
- Gains capital if shares are sold at a higher price than that they were acquired.
- The value of the shares grows as capital grows.
- Shares are negotiable and can be transferred to another person.
- Shares act as collateral security when obtaining a loan.
- Gives the shareholder a right to attend and vote on important company policies at AGM.
(f) The business ensures sustainability in the following ways

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- Re-investing profits.
- Insuring the business.
- Diversifying risks. Having more than one production line/starting other business.
- Following legal procedures/laws/rules and regulations set by the state/operating legal
business.
- Avoiding drawings.
- Training of members.
- Maintenance and expansion of market.
- Ensuring social responsibility.
- Minimizing production costs.
- Having appropriate inventory.
- Raising capital from external sources.
- Carrying out good customer care.
27. (a) The trip was carried out as a group.
Objectives of the trip
 To relate theory to practical work.
 To visualize what takes place in the business enterprises
 To introduce ourselves to the field of research.
 The expose ourselves to the business World.
 To acquire interpersonal skills.
(b) Aspects that manifest the size of the business visited.
 Amount of capital invested.
 Premises occupied,
 Volume of sales.
 Technology used.
 Number of employees.
 Power consumed.
 Registration.
 Legal form.
Note: Show evidence in each case.
(iii) Site plan
Include the following.
 Entry and exit, security check points, reception, parking yard, processing room,
inspection room, maintenance room, employee facilities e.g. toilets, changing rooms,
dining, kitchen, waste disposal unit, power/generator room, water source.
 Frame
Note: Show the dimensions of each facility and for the overall business premises.
 Show the Routes connecting to the business.
(b) Theory of change for the business
Write about;
 Vision, outcomes, output, output, activities and inputs.

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(c) Factors considered when selecting a channel of distribution.

 Nature of the product.
 Rehabilitee of the channel and its image.
 Cost effectiveness.
 Nature of the business.
 Size of the market
 Nature and availability of middlemen.
 Degree of competition.
 Method of delivery.
 Speed and urgency of the channel.
 Availability of storage conditions.
 Quantity in which people buy.
(d) Categories of inventory possessed by the business.
 Raw materials.
 Work-in progress.
 Finished goods.
 Office supplies
 Assets under repair.
(e) Internal control systems employed to ensure quality of products.
 Checking out the merchandise to ensure that it is up to the set quality standards.
 Monitoring and supervising the production activities.
 Surveying customers all the time to determine whether they are satisfied with the level of
product quality/carrying out market research.
 Discussing the products returns with customers to discuss their source of discontent and
withdrawing the goods not liked.
 Carrying out a pre-test of material used before final production is done.
 Motivating the staff to work whole heartedly towards producing quality goods.
 Spotting slow moving items and reducing price to get rid of them.
 Checking goods EVERY DAY to check for expiry date.
 Doing regular checkups/stock taking.
(f) How the business handles difficult customers?
 Acknowledging and evaluating customers’ objectives fairly.
 Listening carefully to the words being used and feelings being expressed by customers.
 Getting the customers to open up so that the basis of being difficult is understood.
 Buying time suggesting that the matter will be worked at or handled later.
 Holding arguments until the customer is ready for them when trying to convince the
customer.
 Compensating the customer by price reductions or refund/replacement of goods in case
the previous purchases had a problem.
(g) What made the business visited viable include;
 Acceptability in the community.

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 Availability of good infrastructure.

 Favorable government policy on investment.
 Availability of required technical skills.
 Availability of market/real demand.
Explain showing evidence
(h) How the business visited establishes customer satisfaction.
 Calling them on phone.
 Sending a customer satisfaction guide.
 Face to face interaction.
 Mailing them a questionnaire.
(1) Factors the business considers when deciding on the number and nature of workers to recruit.
 Types of skills required.
 Number of jobs available.
 Family members supporting the business.
 Cost of hiring labour in relation to business output and profits.
 The level of demand for products.
 The level of technology needed in the business.
 Cost of labour.
 Size of the business.
 Sources of employees.
 Workers experience.
END

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