THE PRIME MINISTER’S OFFICE REGIONAL ADMINISTRATION AND LOCAL GOVERNMENTS

FORM TWO MIDTERM-MARCH EXAMINATION

065 BUSINESS STUDIES EXAMINATION

DURATION: 2:30

INSTRUCTIONS

1. This paper consists of section A, B and C with a total of nine (9) questions.
2. Answer all questions in the space provided
3. Section A; Multiple choices and Matching items carries fifteen (15) marks
4. Section B: Short answer question carries forty (40) marks
5. Section C carries forty-five (45) marks

SECTION A: (15 Marks)

Answer all questions in Section

1. For each of items (i) –(x), choose the correct answer from the given alternatives and write its letter in the box provided.

i. Abel has TZS 40,000. That is enough to buy either a pair of shoes for TZS 40,000 or two shirts for TZS 20,000 each. He decided to buy a pair of shoes. What is the Abel Opportunity Cost? 

1. Two shirts he did not buy 
2. The money he saved 
3. The benefits of wearing shoes 
4. TZS 40,000 spent on shoes

ii. An entrepreneur is a person who: 

1. Buys goods only 
2. Starts and manages a business 
3. Works for the government 
4. Studies business 

iii. Anna starts a small activity where she buys used clothes and sell them at a profit. which of the following describe Anna is doing? 

1. Local shop 
2. Production 
3. Business
4. Scarcity 

iv. Economic situation where the resources are limited: 

1. Opportunity Cost 
2. Loans
3. Development 
4. Scarcity

v. Which of the following is a source of finance for small business? 

1. Loan
2. Personal saving 
3. Financial Institutions 
4. All above 

vi. Selection of best alternative foregone: 

1. Entrepreneurship 
2. Financial skills
3. Opportunity Cost 
4. Scarcity 

vii. The Government provides free vaccination to protect the children from diseases. Which type of goods is being provided? 

1. Free goods 
2. Merits goods 
3. Demerits goods
4. Economic goods 

viii. The main purpose of starting or doing business is? 

1. Earning profits 
2. Only Selling goods 
3. Spending money 
4. Providing services only

ix. Human efforts 

1. labour 
2. capital 
3. Services 
4. Goods

x. A partnership business is owned by: 

1. One person 
2. Two or more people 
3. Government 
4. Teachers

 ANSWER

2.  Match the items in List A with the corresponding letter from List B 

Answers

SECTION B: (40 marks) 

Answer all questions.

3.  Large number of businesses in Tanzania falls to the sole Proprietorship and Small Business. Support these statements by six points.

4.  Startup business especially in the locally areas do not need a lot of investments to start over. As a business innovator explain how can you financing your idea to start a real business?

5.  Why do you think it is very important to the business owners to keep the records of their business activities?

6.  Explain the difference between the Micro Business and SME Business.

SECTION C: (45 marks)

Answer all questions in this section

7.  Planning is half the way to starting and succeeding in a business.” Justify this statement by giving five points.

8.  Neema started a tailoring business but she easily gives up whenever she faces challenges such as lack of customers or shortage of materials. Which entrepreneurial qualities do you think Neema lacks? (five points).

9.  Joka is an educated person who started a business five years ago. He opened a shop called Genge Shop. However, he does not record his sales. He claims that number of customers declines, his business is growing more slowly than he expected and he has failed to make it grow. What business knowledge do you think Joka lacks? (Five points.)

Assessment Number _____________________

THE UNITED REPUBLIC OF TANZANIA PRIME MINISTER’S OFFICE REGIONAL ADMINISTRATION AND LOCAL GOVERNMENT

FORM TWO MIDTERM EXAMINATION-MARCH

BUSINESS STUDIES

TIME: 2:30 HOURS YEAR

Instruction 

1. This paper consists of section A, B and C with a total of nine (9) questions.
2. Answer all questions in a space provided.
3. Section A carries fifteen (15) marks, section B forty (40) marks and section C carries forty five (45) marks.
4. All writing must be in blue or ink, except drawings which must be in pencil.
5. Communication devices, and any unauthorized materials are not allowed in the assessment room.

SECTION A(marks 15)

Answer all questions in this section

1. For each of the items (i) -(x), choose the correct answer from the given alternatives and write its letter in the box provided.

i. Soft drinks company uses sugar, water and flour to produce soda in large quantities before selling it to whole seller. Which of the following best describes the activity of turning ingredients to soda 

1. Distribution 
2. Consumption 
3. Production 
4. Exchange 

ii. Halima started her small activity in which she buy used clothes and sell them at profit, which of the following best describe what Halima is doing. ( ) 

1. Production 
2. Consumption 
3. Scarcity 
4. Business 

iii. Mathias started a maize farming business. He rent land, buy seeds and tools, hire workers and manage the farm himself. Which of the following correctly identifies the factors of production? 

1. Land as capital, seed as labor, Mathias as entrepreneurship, and workers 
2. Land as land , seed and tools as capital, workers a labor and Mathias as entrepreneurship
3. Mathias as labor, workers as capital, land as entrepreneurship and tools as land
4. Workers as land, Mathias as capital, seed as labor and tools as entrepreneurship 

iv. Miss Debora’s business earned TZS 250,000 from sales while she incurred TZS 70,000 as expenses to run business. What is Miss Debora’s profit or loss? ( )

1. Profit TZS 320,000 
2. Loss TZS 18,000 
3. Profit TZS 18,000 
4. Loss TZS 320,000

vi. Which part of business environment consists of competitors, customers and supplier?

1. Internal environment 
2. Economic environment 
3. Operating environment
4. Remote environment

vii. The concept of opportunity cost applies because

1. Resource are limited 
2. People can have everything they want
3. Choosing one option means giving up another 
4. Goods and services are free 

vii. The Government provides free vaccinations to children to protect them from diseases. Which type of goods is being provided? 

1. Merits goods 
2. Demerit goods 
3. Free goods 
4. Economic goods 

viii. ‘’People who have high need for achievement have tendency to win and excel.’’ This statement describes;

1. Innovation theory of entrepreneurship 
2. Economic theory of entrepreneurship 
3. The theory of needs achievement 
4. Risk bearing theory

ix. Occurs when demand for resource is greater than available supply 

1. Business 
2. Profit 
3. Office equipment 
4. Scarcity

x. The ability of goods and services to satisfy human needs and wants is known as 

1. Factors of production 
2. Utility 
3. Economics 
4. Production

Answers

2. Match the description about business studies concepts in LIST A with relevant concept of business studies in LIST B By writing the letter of the correct response beside the corresponding item number in the table provided

 Answers

SECTION B

Answer all questions in this section

3. Differentiate the following terms as used in business studies

1. Economic goods and free goods
2. Public goods and private goods
3. Inferior goods and giffen goods
4. Substitute goods and complementary goods
5. Merit and demerit goods

4. In five points, briefly explain the role of entrepreneurship

5. (a)Arrange the following example of production process for textile factory in chronological order by writing number 1 to 4 besides the item number

1. Some one visited the market and bought the uniform by offering the seller some money
2. It is then transported from factory to the market place
3. The student wear uniform at school
4. The textile factory/manufacture uniform

(b)With examples define the term factors of production

6. Describe five advantages of purchase day book

SECTION C (45marks)

Answer all questions in these sections

7. Rosemary has a friend who made much money from her small business. Her friend gave her Tsh. 2,000,000 as a gift to expand her small business.

1. What type of funding for small business is this?
2. What are the advantages and disadvantages of this funding type

8. Hassan has started a small carpentry workshop in which he produces furniture and ensure customer gets quality products. Basing on this case study explain five main critical issues that Hassan may face I operating business

9. Masanja is planning to use personal saving as source of capital instead of external financing to start a small food vending business near a bus terminal. By using Masanja’s case study, suggest five characteristics of the form of business.

Assessment Number ____________________

PRIME MINISTER’S OFFICE REGIONAL ADMINISTRATION AND LOCAL GOVERNMENT

FORM TWO MIDTERM ASSESSMENT MARCH

065 BUSINESS STUDIES

TIME: 2:30 HRS 

INSTRUCTIONS:

1. This paper consists of Sections A, B and C with a total of nine (9) questions
2. Answer all questions in the space provided
3. Section A carries fifteen (15) marks, Section B carries forty (40) marks, and Section C carries forty-five (45) marks.
4. All writing must be in blue or black ink, except drawings, which must be in pencil.
5. Cellular phones and any unauthorized devices or materials are prohibited in the examination room.
6. Remember to write your Assessment Number on every page.

SECTION A (15 Marks)

1. For each of the items (i)-(x), choose the correct answer from among the given alternatives and write its letter in the box provided.

i) If Maendeleo Company Limited's job advertisement requires a worker with a bachelor's degree and ICT skills, what type of worker is it looking for.

1. Unskilled worker 
2. labourer 
3. Skilled labour 
4. Semi-skilled labour

ii. Mr. Mbaga is transfering sugar from Mtibwa Sugar company in Morogoro to Bumbuli for selling it. According to what you have learnt in your studies, what is the process Mr. Mbaga doing in this scenario?

1. Exchange 
2. Distribution 
3. Production 
4. Consumption

iii. Mrs Mahasha always cooks food for her family. What type of production does she engage in?

1. Direct Production 
2. Domestic Services 
3. Indirect Production 
4. Food Production

iv. Keeping aside part of personal earnings for future use refers to

1. Debt 
2. Saving 
3. Serving 
4. Loan

v. One of the following is a feature of land as a factor of production.

1. It is manufactured. 
2. It is the most mobile factor
3. It lacks mobility. 
4. Ability to organise other factors of production.

vi. Which financing option involves receiving money from friends and family?

1. Bootstrapping 
2. Crowdfunding 
3. Informal Financing 
4. Venture Capital.

vii. Which of the following refers to making goods and services to satisfy human needs and wants?

1. Whole selling 
2. Production 
3. Utility 
4. Capital

viii. Organizations owned and operated by people with similar needs are referred to as;

1. Microfinance 
2. Corporation 
3. Enterprises 
4. Cooperatives

ix. Interest means

1. Profit 
2. Buying and selling 
3. Price money 
4. Savings

x. What is a common challenge faced by small businesses when seeking financing?

1. High Interest Rates 
2. Lack of collateral 
3. Insufficient Credit 
4. All of the above

Answers

2. Match the items in List A with the correct answer in List B and write the letter of the correct answer in the table below.

ANSWERS:

SECTION B (40 Marks)

ANSWER ALL QUESTIONS IN THIS SECTION.

3. (a) Describe the concept of production.

(b) Explain three importance of production

4. In five points explain the importance of Entrepreneurship

5. Write short Notes on the Following

1. Business
2. Sole proprietorship
3. Cash book
4. Free goods
5. Exchange

6. What are the sources of funds? Mention and explain.

SECTION C (45 Marks)

ANSWER ALL QUESTIONS IN THIS SECTION.

7. You are given the following transactions for the business “MPONDE Mini Shop” during the month of March 2026. Prepare a single-column cash book to record the cash receipts and payments.

Transactions:

• March 1. Started business with Tzs 100,000 in cash.
• March 2. Bought stock for cash Tzs 30,000.
• March 3. Paid for shop cleaning Tzs 5,000.
• March 3. Sold goods for cash Tzs 20,000.
• March 5. Paid Wages to employee Tzs 10,000.
• March 6. Received Tzs 12,000 from a customer.
• March 7. Purchased packaging materials for Tzs 3,000 in cash.
• March 8. Paid electricity bill Tzs 6,000
• March 9. Cash sales Tzs.18,000
• March 10. Withdraw cash for personal use Tzs. 8,000

8. Shemtambo is planning to use personal savings as a source of capital instead of external financing to start a small food vending business near a bus terminal. By using Shemtambo’s case study, suggest three advantages and three disadvantages of using this form of business financing.

9. Sheshe started a small carpentry workshop in which he produces furniture and ensure customers get quality products. Basing on this case study, explain the roles played by Sheshe as an Enterpreneur in the production process in workshop.

PRIME MINISTER’S OFFICE REGIONAL ADMINISTRATION AND LOCAL GOVERNMENT

MID TERM EXAMINATION - MARCH 2026

BUSINESS STUDIES FORM TWO

TIME : 2:30 hours

INSTRUCTIONS

1. This paper consists of sections A, B and C with a total of nine (9) questions.
2. Answer all questions in the space provided.
3. Section A carries fifteen (15) marks, section B forty (40) marks and section C carries forty five (45) marks.
4. All writing must be in blue or black ink, except drawings which must be in pencil.
5. Communication devices, and any unauthorized materials are not allowed in the assessment room.
6. Write your Assessment Number at the top right hand corner of every page.

SECTION A (15 Marks)

Answer all questions in this section.

1. For each of the items (i) – (x), choose the correct answer from among the given alternatives and write its letter in the box provided.

(i) A sole proprietorship is a business owned and managed by

1. two or more people
2. one person
3. the government
4. shareholders

(ii) The main advantage of a sole proprietorship is

1. limited liability
2. quick decision making
3. large capital
4. separation of ownership and management

(iii) Warehousing helps businesses mainly by

1. increasing production costs
2. stabilizing prices and ensuring continuous supply
3. reducing the quality of goods
4. eliminating middlemen completely

(iv) The process of transforming raw materials into finished goods is called

1. distribution
2. production
3. exchange
4. consumption

(v) Microfinance institutions mainly provide services to

1. large corporations
2. low-income individuals and small entrepreneurs
3. international companies
4. government departments

(vi) Entrepreneurship is best defined as

1. working for someone else
2. taking risks to organize factors of production to start and run a business
3. saving money in a bank
4. buying goods for resale only

(vii) One major challenge faced by sole proprietors is

1. unlimited liability
2. too many owners
3. difficult decision-making
4. separation of ownership and control

(viii) The main purpose of cooperatives is to

1. maximize profits for shareholders
2. improve the economic and social welfare of members
3. produce goods for export only
4. compete with large companies

(ix) Which of the following is NOT a factor of production?

1. Land
2. Labour
3. Capital
4. Profit

(x) The document that shows how a business will be started and operated is called

1. ledger
2. business plan
3. invoice
4. receipt.

2. Match the items in LIST A with the most appropriate description or reward in LIST B.

SECTION B (40 Marks)

Answer all questions in this section.

3. Define the following terms as used in Business Studies:

1. Sole proprietorship
2. Warehousing
3. Production
4. Microfinance (
5. Entrepreneurship

4. State five advantages of sole proprietorship.

5. Explain four importance of warehousing to businesses and the economy.

6. Differentiate between production and distribution (give four points).

SECTION C (45 Marks)

Answer all questions in this section.

7. (a) Explain the meaning of the term “business formation”.

(b) Outline five steps involved in forming a small business.

8. (a) State four factors of production.

(b) For each factor named in (a) above, give one example and explain its importance in a sole proprietorship business.

9. Juliana started a tailoring business named “Juliana Designs” as a sole proprietorship. She uses her personal savings as capital, makes all decisions alone, keeps all profits, and bears all losses.

(a) Identify the type of business ownership Juliana is using.

(b) State four advantages Juliana enjoys from this type of business.

(c) State three disadvantages Juliana faces.

(d) Suggest two ways Juliana can overcome one of the disadvantages you mentioned.

THE PRIME MINISTER’S OFFICE,  THE REGIONAL ADMINISTRATION AND LOCAL GOVERNMENT

FORM TWO MID TERM ASSESSMENT 

065 BUSINESS STUDIES

TIME: 2:30 MARCH, 2026 

INSTRUCTIONS 

1. This paper consists of section A, B and C with a total of ten (10) questions.
2. Answer all the questions in the space provided
3. Section A carry fifteen (15) marks, section B carry forty (40) marks and section C carry forty-five (45) marks.
4. All writings must be in black or blue ink except diagram which must be in pencil.
5. Communication device and any unauthorized materials are not allowed in the assessment room.
6. Write your Assessment NAME at the right corner of every page.

SECTION A (15 MARKS)

Answer all questions in this section.

1. For each of the item (i)- (x), choose the correct answer from among the given alternatives and write its letter in the box provided below.

(i) Organization owned and operated by people with similar needs are called……...

1. Microfinance 
2. Corporation 
3. Enterprise
4. Cooperative

(ii) Keeping aside part of personal earnings for future use refers to ……….

1. Debt 
2. Saving 
3. Serving
4. Loan

(iii) Borrowing funds from institutions with the agreement of repaying them with interest over a specific time refers to ……….

1. Financial business 
2. Raising fund 
3. Loan
4. Deferred payment

(iv) The process of making payment for purchased products at a later date refers …….

1. Purchases 
2. Borrowing 
3. Deferred payment
4. Cash payment

(v) Ms. Zainabu always cooks food for her family. What type of production does she engage in?

1. Food production 
2. Direct production 
3. Domestic production
4. Indirect production

(vi) Juma buys bread daily for his family. In this case, Juma is acting as a:

1. Distributor 
2. Retailer 
3. Manufacturer
4. Consumer

(vii) A family spends money on clothing, housing, water and holiday. Which of the following is NOT a basic consumer need?

1. Clothing 
2. Housing 
3. Holiday
4. Water

(viii) A carpenter is making tables. He has wood, nails and tools. He also has customers. Which of the following is NOT an input for production?

1. Capital 
2. Land 
3. Consumer
4. Labour

(ix) Neema grows maize for maize for sale while her cousin helps her grandmother with farm work without payment. Which activity is NOT considered as a business?

1. Running a grocery shop.
2. Selling maize at the market.
3. Helping grandmother without pay.
4. Providing transport service.

(x) Naathan starts a small activity where she buys used clothes and sells them at a profit. Which of the following best describes what Naathan is doing?

1. Consumption 
2. Business 
3. Production
4. Scarcity

Answers

2. Match the items from LIST A with those in LIST B by writing the letter of a correct option beside the corresponding item number in the table provided.

Answers

SECTION B (40 MARKS)

Answer all questions in this section

3. Differentiate the following basic terms used in business studies.

1. Skilled labour and Unskilled labour.
2. Goods and services
3. Business and Business studies.
4. Sales Day book and Purchases Day book.
5. Sole proprietorship and Entrepreneurship

4. Jamila wants to open a small shop. With reasons, advise her on the categories of goods can sell. Five (05) points.

5. Assume you are doing a business groundnuts in your locality. You have reached a point where you have more customers than what you sell. Describe ways you may use to finance your business. Five (05) points.

6. Bunigonzi co-operative shop made the following Purchases during the month of January 2026.

• Jan 1, Bought from RTC Mbogwe 100bags of Rice @ 5,000 and 50 bags of sugar @7,000.
• Jan 5, Bought from Mangi Ltd 10 boxes of cooking oil fat@ 3,000 and pairs of Sandal @2,000.
• Jan 10, Bought from Moshi Traders 20 pairs of bed sheet@7,000 and 50 shirts@ 3,000.

REQUIRED: Prepare Bought Journal from the above transaction.

SECTION C (45 MARKS)

Answer all question in this section.

7. Based on the challenges faced by sole proprietorship in your local community, choose any business which you can establish and write a project to propose creative six (06) ways or solutions to address the challenges you might encounter.

8. Ms. Johari plans to establish a small business with projected operating expenses of Tshs 700,000/= for the year and revenues from sales of Tshs. 1,000,000/= for one year.

1. What will be the profit or loss?
2. If the business earns Tshs. 200,000, what will its profits or loss be?

9. Mrs Naniah inherited her late brother’s warehouse. However, she is worried that she will not be able to operate it because she is unaware of all activities conducted in a warehouse. So, Mrs Naniah decided to hire an assistant to help her in running the warehouse. As Mrs Naniah.