Duration: 2:30 Hours


  1. This paper consists of sections A, B and C with a total of seven (7) questions.
  2. Answer all questions
  3. All answers must be written in the spaces provided.
  4. All writing must be in blue or black ink.
  5. Calculators, cellular phones and any unauthorized materials are not allowed in the examination room.
  6. Write your Examination Number at the top right corner of every page.

SECTION A (30 Marks)

Answer all questions in this section

1. For each of the following items (i) – (ii), choose the correct answer and write its letter in the box provided.

(i) What will be the order point of Mr. Cassel if his daily sales are 500 bags of sugar, the delivery time being 15 days and minimum stock of 200 bags?

  1. 7,700 bags
  2. 3,300 bags
  3. 3,500 bags
  4. 4,500 bags
Choose Answer :

(ii) The process through the customer exchange information with the shop keeper about the availability of rice in his shop is expressed as

  1. Transaction
  2. Advertising
  3. Communication
  4. Retailing.
Choose Answer :

(iii) Why is it necessary to use demand schedule in drawing a demand curve?

  1. It shows the quantity demanded
  2. It shows the price of the quantity demanded.
  3. It shows the price and quantity demanded.
  4. It shows the price changes for a commodity.
Choose Answer :

(vi) Why internal motivation important in an entrepreneurship?

  1. It creates environment for carrier development
  2. It creates competition among the entrepreneurship
  3. It creates the working spirits to experts.
  4. It helps to overcome the business challenges.
Choose Answer :

(v) In which category does Madam Mashenge be grouped if she produced green vegetables in large quantity and sells them in bulk to retailers who will then sell them to final users?

  1. Wholesaler
  2. Retailer
  3. Customer
  4. Producer
Choose Answer :

(vi) The main elements of commerce comprises of

  1. Home trade and foreign trade
  2. Wholesale and retail trade
  3. Trade and aids to trade
  4. Import trade and export trade.
Choose Answer :

(vii) Which of the following units of carriage in transport is most suitable in carrying delicate and perishable goods over a long distance?

  1. Ships
  2. Train
  3. Car
  4. Aeroplane.
Choose Answer :

(viii) Petrol stations which sell petrol and diesel obtained from the same producer are the examples of

  1. Tied shops
  2. Departmental stores
  3. Single shops
  4. Mobile shops.
Choose Answer :

(ix) The following are benefits of self – employment to an entrepreneur except

  1. Ability to generate extra income
  2. Sharing decision and business ideas with the boss.
  3. Ability to make his/her own decisions.
  4. Becoming boss of his/her own business.
Choose Answer :

(x) Mr. Makiku is a large scale local rice producer who invested a capital of Tsh.300 million in production. What reward is he deserve as a return of his capital?

  1. Rent
  2. Salary
  3. Profit
  4. Interest.
Choose Answer :

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