THE UNITED REPUBLIC OF TANZANIA NATIONAL EXAMINATIONS COUNCIL OF TANZANIA FORM TWO NATIONAL ASSESSMENT

065 BUSINESS STUDIES

(VOCATIONAL STREAM)

(For School and Private Students)

Duration: 2:30 Hours  Year: 2025

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 the given alternatives and write its letter in the box provided.

(i) The following are the types of entrepreneurship except:

1. business entrepreneurship
2. intrapreneurship
3. political entrepreneurship
4. social entrepreneurship

(ii) Money borrowed from a bank by business or individuals with the agreement to repay it with interest is known as

1. loan 
2. funds from family.
3. deferred payment. 
4. personal savings.

(iii) Four business clubs; P, Q, R, and S at your schools have each identified a business opportunity. Each business club’s opportunity is expected to earn TZS 1,000,000 as a revenue per month. The following monthly expenses are to be incurred by each club:

• Club P: Electricity TZS 10,000
• Club Q: Water TZS 5,000, packing materials TZS 2,000 and stickers TZS 2,000 Club 
• R: Transport for its twelve members, each TZS 1,000 Club 
• S: Rent TZS 15,000.

Which club has the highest profit?

1. Club P 
2. Club Q
3. Club R 
4. Club S

(iv) After graduating from a Vocational School, Makumbi is considering of starting a snacks making business. Which option correctly identify the type of production he will be engaging in?

1. Tertiary production 
2. Direct production
3. Primary production 
4. Indirect production

(v) Which of the following correctly reflects a proprietorship form of business?

1. A restaurant owned by Baraka
2. A mobile shop owned by Mwamba and his wife
3. A butcher owned by Majid, Akili and Njau
4. A sport kits shop owned by footballers

(vi) Mr. Jacob’s business earned TZS 250,000 from sales while he incurred TZS 70,000 as expenses to run the business. What is Mr. Jacob’s profit or loss?

1. Profit TZS 320,000 
2. Loss TZS 180,000
3. Profit TZS 180,000 
4. Loss TZS 320,000

(vii) Mrs. Koke is a young entrepreneur who has been positive and maintaining high expectations despite of business challenges she faces. Which characteristic of entrepreneurs is possessed by Mrs. Koke?

1. Creativity 
2. Flexibility
3. Optimism 
4. Innovativeness

(viii) What does unlimited liability in a sole proprietorship mean?

1. The business can operate and expand without a limit.
2. The owner can invest money in the business without a limit.
3. The owner is responsible to register the business without a limit. 
4. Owners’ personal assets are used to pay debts without a limit.

(ix) Mr. Kazimoto always ensure that he keeps records and proper checking of goods in order to make sure that he is holding sufficient amount of inventory. Which activity is done by Mr. Kazimoto?

1. Stock administration 
2. Stock valuation
3. Stock control 
4. Stock care

(x) Mr. Mojamoja is operating highly automated and technology integrated warehouse that uses advanced technologies to optimize operations like inventory management system, order fulfilment and shipping. Which type of warehouse is he operating?

1. Bonded warehouse 
2. Smart warehouse
3. Public warehouse 
4. Private warehouse

2. Match the description about business studies concepts in List A with the 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.

SECTION B (40 Marks)

Answer all questions in this section.

3. Goods are classified into different categories. Justify this statement by giving five points.

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

5. Differentiate the following concepts as they are used in production:

1. Direct and indirect production
2. Needs and wants
3. Labour and capital
4. Skilled and semi-skilled labour
5. Production and consumption

6. Leonard Ltd is a small business that buys and sells electrical goods. The following are cash transactions made during the month of October, 2024. At the beginning of the month of October, the business’s opening cash balance was TZS 100,000.

Question:

Use the given transactions to prepare cash book for Leornard Ltd for the month of October 2024.

SECTION C (45 Marks)

Answer all questions in this section.

7. Assume you have established a poultry farming project in your local area that employ other people in order to meet the needs of your community. By using six points, write a report to show how you will apply the entrepreneurial skills to make your project successful.

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

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