PRESIDENT’S OFFICE REGIONAL ADMINISTRATION AND LOCAL GOVERNMENT

FORM ONE MIDTERM EXAMINATION

 BUSINESS STUDIES: APRIL 2026

FORM ONE 

Time: 2:30 Hours

INSTRUCTIONS

1. This paper consists of sections A, B, and C with a total of ten (10) questions.
2. Answer all questions.
3. Section A and C carry fifteen (15) marks each, while Section B carries seventy (70) marks.
4. All writing must be in blue or black ink.
5. Cellular phones and any unauthorized materials are not allowed in the assessment room.

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 provided.

i) What is the main purpose of a business?

1. To produce goods for personal use
2. To make a profit through the exchange of goods and services
3. To provide services for free
4. To avoid competition

ii) Which of the following is a characteristic of a service business?

1. Physical products are produced and sold
2. The business provides intangible products
3. It requires raw materials
4. It only operates in the primary sector

iii) Which of the following is a sector of the economy?

1. Manufacturing
2. Marketing
3. Stock exchange
4. Administration

iv) What is the difference between a sole proprietorship and a partnership?

1. A sole proprietorship has multiple owners, while a partnership has one owner
2. A sole proprietorship is owned by one individual, while a partnership is owned by two or more people
3. A sole proprietorship has limited liability, while a partnership has unlimited liability
4. A sole proprietorship is a public company, while a partnership is private

v) Which of these is a common risk faced by entrepreneurs?

1. Guaranteed profits
2. Limited competition in the market
3. Financial loss due to business failure
4. Steady income every month

vi) What does the term 'capital' refer to in business?

1. The income generated from selling products
2. The amount of money invested in a business to start or grow it
3. The inventory of goods a business sells
4. The market demand for a product

vii) Which of the following is a feature of a corporation?

1. It is owned by a single individual
2. It is managed by a board of directors
3. It has unlimited liability
4. Its profits are not shared with shareholders

viii) What is meant by the term 'market share'?

1. The total amount of products a business sells
2. The percentage of total sales in a market that is held by a particular business
3. The total number of businesses in a market
4. The total profit made by a business in a year

ix) Which of the following is a primary economic activity?

1. Banking
2. Selling finished goods
3. Farming
4. Advertising

x) Which of the following is an example of entrepreneurship?

1. Working for a multinational company as an employee
2. Opening a small business to sell handmade crafts
3. Investing in the stock market without starting a business
4. Providing a service as a hired worker

Answer

2. Match the item in List A with the correct answer in List B by writing its letter below in the box provided

Answers

SECTION B (70 Marks)

Answer all questions from this section

3. (i) Explain the term Business process

(b) Kengele owns a small shop where he sells handmade shoes and jewellery. He advertises his products at the local market and sometimes online through social media. Does Kengele’s small shop qualify as a business? Explain reasons for your answer.

i. ________________________________________________________________________ 

ii. ________________________________________________________________________ 

iii. ________________________________________________________________________ 

iv. _______________________________________________________________________

v. _________________________________________________________________________

4. (a) Outline five Consequences of Entrepreneurship

______________________________________________________________________________ 

(b) Buyuni secondary school hosted an entrepreneurship week to encourage students to learn about entrepreneurship. One of the students from your school invited as a guest speaker to talk to students about entrepreneurial skills, If you are the one to be invited. As a form one student briefly explain the skills you will talk about

i. ________________________________________________________________________ 

ii. ________________________________________________________________________ 

iii. ________________________________________________________________________ 

iv. _______________________________________________________________________

v. _________________________________________________________________________

5. Eliah transported woods from Iringa last months. She used them to make different furniture. Briefly, explain the business processes that Eliah needs to undertake for the furniture to reach the final consumers.

i. ________________________________________________________________________ 

ii. ________________________________________________________________________ 

iii. ________________________________________________________________________ 

iv. _______________________________________________________________________

v. _________________________________________________________________________

6. (a) Define the term opportunity cost

______________________________________________________________________________ 

(b) Shukuru works in the beverage industry and earns Tsh 150,000 per month. Her father retired from his work and decided to give her Tsh 4,000,000 to start a business of selling school shoes and quit the beverage industry.

(c) What is the opportunity cost of Shukuru’s decision to start a business?

______________________________________________________________________________ 

(d)Will Shukuru’s business meet consumer needs or consumer wants? Explain your answer

7. (a) Give the meaning of the term Goods

______________________________________________________________________________ 

(b) Your friend wants to open grocery shop. With reasons, advise him on the categories of goods he can sell

i. ________________________________________________________________________ 

ii. ________________________________________________________________________ 

iii. ________________________________________________________________________ 

iv. _______________________________________________________________________ 

v. _______________________________________________________________________

8. Elisha is a secondary school student; he needs to buy a laptop for his school activities. At the same time, he would like to buy a bicycle. However, he does not have enough money to buy both. If you were Elisha, what would you consider to make the right choice? Why?

i. ________________________________________________________________________ 

ii. ________________________________________________________________________ 

iii. ________________________________________________________________________ 

iv. _______________________________________________________________________

9. (a) Define the term entrepreneurship

______________________________________________________________________________ 

(b) Based on experience of the daily activities done in the market such as products sold, purchased and business persons involved, which type of entrepreneurship is mostly practiced in your home market and why?

______________________________________________________________________________  

_____________________________________________________________________________

______________________________________________________________________________ 

SECTION C (15 Marks)

Answer question number 10.

10. Entrepreneurs have many characteristics that affect their entrepreneurial behavior and enterprising tendencies. Discuss with six points

PRESIDENT’S OFFICE REGIONAL ADMINISTRATION AND LOCAL GOVERNMENT

FORM ONE TERMINAL EXAMINATION

 BUSINESS STUDIES: MAY 2026

FORM ONE 

Time: 2:30 Hours

INSTRUCTIONS

1. This paper consists of sections A, B, and C with a total of ten (10) questions.
2. Answer all questions.
3. Section A and C carry fifteen (15) marks each, while Section B carries seventy (70) marks.
4. All writing must be in blue or black ink.
5. Cellular phones and any unauthorized materials are not allowed in the assessment room.

SECTION A: (15 MARKS)

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

i. Which of the following is an example of a service business?

1. A bakery
2. A furniture store
3. A hospital
4. A car dealership

ii. What does the term "consumer" mean in business?

1. A person who supplies raw materials
2. A person who sells goods to traders
3. A person who buys and uses goods and services 
4. A person who works in a factory

iii. Which factor of production refers to human effort in business activities?

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

iv. The reward for capital in business is known as:

1. Profit
2. Rent
3. Interest
4. Salary

v. Which of the following is NOT a business resource?

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

vi. What is the main reason for preparing a business plan?

1. To attract customers
2. To guide business operations
3. To make more profit 
4. To avoid competition

vii. The term "partnership" in business refers to: 

1. A business owned by one person
2. A business owned by two or more people
3. A government-owned business
4. A nonprofit organization

viii. Which of the following is an external source of finance for a business?

1. Retained profits
2. Sale of assets
3. Bank loan 
4. Owner’s savings

ix. Which factor influences demand for a product?

1. The amount of capital invested
2. The price of the product
3. The number of suppliers
4. The size of a shop

x. Which of the following is an example of a primary industry?

1. Banking
2. Farming
3. Textile manufacturing
4. Transport services

2. Match the following terms with their correct definitions.

SECTION B: (70 MARKS)

Answer all questions.

3. (a) Define the term "Business Studies."

(b) Mention any four (4) characteristics of Business Studies.

4. (a) What is the importance of studying Business Studies?

(b) Explain three (3) ways Business Studies relates to other disciplines.

5. (a) Define "wants" and "needs."

(b) Give four (4) examples of needs and four (4) examples of wants.

6. (a) What is "Trade"?

(b) Identify two (2) differences between "wholesale trade" and "retail trade." (c) Provide two (2) examples of wholesalers and two (2) examples of retailers.

7. (a) Mention three (3) types of business organizations.

(b) Describe any two (2) advantages of operating as a sole proprietorship.

8. (a) What is the meaning of "Entrepreneurship"?

(b) Mention four (4) roles of an entrepreneur in business development.

9. (a) Explain three (3) challenges faced by small businesses.

(b) Suggest two (2) ways to overcome these challenges.

SECTION C: (15 MARKS)

Answer the following essay question.

10. Write an essay on the role of Business Studies in daily life using the following guidelines:

1. Definition of Business Studies
2. Three (3) ways Business Studies is useful in daily life
3. Two (2) challenges of learning Business Studies
4. How to overcome the challenges
5. Conclusion

THE UNITED REPUBLIC OF TANZANIA, PRESIDENT’S OFFICE REGIONAL ADMINISTRATION AND LOCAL GOVERNMENT

SECONDARY EXAMINATION SERIES

FORM ANNUAL EXAMINATION

BUSINESS STUDIES – NOVEMBER-    2025

TIME: 2:30 HOURS

INSTRUCTIONS

1. This paper consists of Sections  A, B, and C  with a total of  ten (10) questions .
2. Answer  all questions  in Sections A and B, and  three (3)  questions in Section C.  Question 10 is compulsory.
3. Section A carries  15 marks , Section B carries  40 marks , and Section C carries  45  marks .
4. Use  blue or black ink  in writing, except for drawings which must be done in  pencil .
5. Communication devices, calculators, and unauthorized materials are not  allowed  in the assessment room.
6. Write your  Assessment Number/Full Name  at the top right-hand corner of every  page.

SECTION A (15 Marks)

Answer all questions in this section

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

(i) Who starts, creates, and manages a new business?

1. Leader
2. Manager
3. Professional
4. Entrepreneur

(ii) One of the following DOES NOT explain the abilities possessed by an entrepreneur:

1. Innovation
2. Invention
3. Risk avoidance
4. Motivation

(iii) What makes small-scale businesses vital in the country’s economy?

1. Give an outlet to entrepreneurs
2. Provide specialist support to large-scale businesses
3. Innovators of new products
4. All of the above

(iv) Which informal means do entrepreneurs use to gather information for further  improvement in their business?

1. Marketing
2. Primary research
3. Entrepreneurial networking
4. Informal debates

(v) Mayala is an entrepreneur who dedicates and sacrifices his time, money, and energy  to succeed in business. Which attribute does he show?

1. Innovativeness
2. Commitment
3. Perseverance
4. Calculated risk taking

(vi) Which is the main feature of an entrepreneur?

1. Innovative
2. Risk taking
3. Decision making
4. Hard working

(vii) The process through which entrepreneurs convert business opportunities into  marketable solutions is considered as:

1. Innovation
2. Risk taking
3. Creation
4. Mobilizing and allocation of resources

(viii) Ms. Mashiko owns a retail shop and succeeded because she believes in herself and  her goals. Which characteristic is this?

1. Hard working
2. Goal setter
3. Self-confidence
4. Creative

(ix)The following are roles of an entrepreneur, EXCEPT:

1. Bringing together factors of production
2. Identifying opportunities
3. Assuming uncertainty of the future
4. Promoting obsolete technologies

(x) Sir Komba buys large maize stock despite falling price speculation. Which  entrepreneurship characteristic drove him?

1. Creative and imaginative thinking
2. Risk taking
3. Perseverance and commitment
4. Innovativeness

2.  Match descriptions in  List A  with the correct form of entrepreneurship in  List B . Write  the letter of the correct answer beside the item number.

SECTION B (40 Marks)

Answer all questions in this section

3. Assume you are shortlisted for an interview at  Job Creators Company . Explain the  following concepts:

1. Factors of Production
2. Entrepreneurial Skills
3. Good
4. Business Entrepreneurship
5. Formation of a Sole Proprietorship

4. Briefly explain the concepts of  Scarcity  and  Opportunity Cost .

5. Differentiate the following:

1. Entrepreneurship and Entrepreneur
2. Sole Proprietorship and Sole Proprietor
3. Business and Business Studies
4. Limited liability and Unlimited liability
5. Intrapreneurship and Intrapreneur

6. Enumerate  five qualities of a Sole Trader .

SECTION C (45 Marks)

Answer any three (3) questions. Question 10 is compulsory.

7. Critically analyze five (5) benefits of entrepreneurship.

8. Explain to Baba Mwajuma the relationship between Business Studies and any five (5)  other school subjects.

9. (Compulsory) With the aid of a diagram, explain the  business processes  Sir Business  must undertake to reach final consumers (students).

10. Case Study Juliana is a talented tailor who, after saving money, opened her own tailoring business.  She makes all decisions, retains all profits, and registered the business legally. She  interacts directly with customers, who value her friendly service. Now she plans to  expand and employ others.

Questions:

1. What made Juliana start the tailoring business?
2. What type of business did Juliana start, and how does she benefit?
3. What value does the business add to the community?

THE PRESIDENT’S OFFICE REGIONAL ADMINISTRATION AND LOCAL GOVERNMENT 

BUSINESS STUDIES FORM ONE

MIDTERM EXAMINATION AUGUST 2025

TIME: 2:30 Hrs

INSTRUCTIONS 

1. This paper consists of Section A, B and C with a total of ten (10) questions
2. Answer Questions from all questions.
3. Section A and C carries fifteen (15) marks each, while section B carries seventy (70) marks
4. All answers should be written in the space provided on this questions paper.

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) The concept of opportunity cost applies because:

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

(ii) Jackson has TZS 50,000. He can either buy a pair of shoes for TZS 50,000 or two Tshirts for TZS 25,000 each. He decides to buy the shoes. What is Jackson’s opportunity cost?

1. TZS 50,000 spent on shoes
2. The two T-shirts he did not buy
3. The money he saved 
4. The benefit of wearing shoes

(iii)The government provides free vaccinations to children to protect them from diseases. Which type of goods is being provided?

1. Merit good
2. Demerit good
3. Free good 
4. Economic good

(iv) Which among of the following businesses is not type of personalities?

1. Retreat
2. Ritualist
3. Reformist 
4. Honesty.

(v) Salim opened a shop to make profit and serve his community. What type of activity is Salim engaged in?

1. Sports
2. Business
3. Farming 
4. Volunteering.

(vi) The following are the characteristics of human wants EXCEPT?

1. Unlimited.
2. scarcity.
3. competitive.
4.  complementary.

(vii) Process of moving goods services from where they are produced to where they are needed for being utilized is called?

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

(viii) Goods with high social benefits to consumers such as education, health are called?

1. Producer goods
2. Demerit goods
3. Consumer goods 
4. Merit goods

(ix) Which of the following IS NOT considered as a business?

1. Any activity aiming at generating profit.
2. The process of recording business transaction.
3. An enterprise owned by a twenty people. 
4. An organisation which engages in buying and selling of goods.

(x) Which informal means do entrepreneurs use to gather information for further improvement in their business?

1. Marketing
2. Primary research
3. Survey
4. Informal debates.

2. Match the items from List A with those in those in List B by writing the letter of a correct option in List B that corresponds to an item in List A

SECTION B (70 Marks)

Answer all questions from this section

3. Briefly explain the following concepts in relation to business studies.

(a) Intrapreneur. _____________________________________________________________________ __________________________________________________________________

(b) Production. _____________________________________________________________________ _____________________________________________________________________

(c) Business studies _____________________________________________________________________ _____________________________________________________________________

(d) Entrepreneurship _____________________________________________________________________ _____________________________________________________________________

(e) Entrepreneurial skills. _____________________________________________________________________ _____________________________________________________________________

4. Business studies is a combination of various fields of study. Justify the statement by elaborating any five (05) fields of business studies.

1.  _____________________________________________________________________
2.  _____________________________________________________________________
3. _____________________________________________________________________
4.  _____________________________________________________________________
5.  _____________________________________________________________________

5. (a) Describe two classes of human wants

(i) _______________________________________________________________

(ii) _______________________________________________________________

(b) Explain three types of entrepreneurships

1.  ________________________________________________________________
2. ________________________________________________________________
3. ________________________________________________________________
4. ________________________________________________________________

6. Briefly explain four main input/resources used in production.

1. ________________________________________________________________
2. ________________________________________________________________
3. ________________________________________________________________
4. ________________________________________________________________

7. Upon arriving home from school, you met your neighbors arguing about the value of entrepreneurship. They believed that, entrepreneurship lacks any value. Inform them about five (05) the importance of entrepreneurship.

(i) _____________________________________________________________________ _______________________________________

(ii) _____________________________________________________________________ _______________________________________

(iii)_____________________________________________________________________ _______________________________________

(iv) _____________________________________________________________________ _______________________________________

 (v) _____________________________________________________________________ _______________________________________

8. Successful entrepreneur is always confident and optimistic. Describe five (05) attributes of a successful entrepreneur in Tanzania.

1.  _____________________________________________________________________
2. _____________________________________________________________________
3. _____________________________________________________________________
4. _____________________________________________________________________
5. _____________________________________________________________________

9. In studying Business Studies there are differences things that students learn. As a student come up with five (05) importance that you learn from studying Business Studies

(i) _____________________________________________________________________ ___________________________________

(ii) _____________________________________________________________________ ___________________________________

(iii)_____________________________________________________________________  ___________________________________

(iv) _____________________________________________________________________  ___________________________________

(v) _____________________________________________________________________ ___________________________________

SECTION C (15 Marks)

10. During the inter-school competition, you met form one students from Pasiansi Secondary School arguing on whether entrepreneurs are made or born. Based on the five (05) theories of entrepreneurship you learnt, help them understand about entrepreneurship.

PRESIDENTS OFFICE REGIONAL ADMINISTRATION AND LOCAL GOVERNMENT

PRESIDENTS OFFICE REGIONAL ADMINISTRATION AND LOCAL GOVERNMENT

FORM ONE TERMINAL EXAMINATION

BUSINESS STUDIES

TIME: 2:30HRS MAY: 2025

INSTRUCTION

1. This paper consist of section A, B, and C.
2. Answer all questions in section A, B and C.
3. Answer all question in the space provided.
4. Cellular phoned, calculators and any computerized material are not allowed in the examination room.
5. All writing must be in blue/black ball pen except drawings which must be in pencil.
6. Write your examination number at the top right corner of every page.

SECTION A: 

OBJECTIVE QUESTIONS (15 Marks)

1. For items (i)-(x) write the correct answer from alternatives given in spaces provided

(i) Which of the following is the primary goal of a business?

1. To provide free goods and services
2. To generate profit
3. To employ all people in the community
4. To minimize innovation

(ii) The process of transforming raw materials into finished products to satisfy human needs and wants is known as:

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

(iii) Which of the following is an example of a free good?

1. Computer
2. Sunlight
3. Cloth
4. Pen

(iv) Which factor of production involves innovation, risk-taking, and organization?

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

(v) The ability to produce new and unique ideas is:

1. Innovation
2. Creativity
3. Risk-taking
4. Perseverance

(vi) A business owned, managed, and controlled by one person is a:

1. Partnership
2. Sole proprietorship
3. Company
4. Cooperative

(vii) Which of the following is a disadvantage of a sole proprietorship?

1. Easy to form
2. Quick decision making
3. Unlimited liability
4. Direct relations with customers

(viii) The ability to influence people towards the accomplishment of common goals is:

1. Management skill
2. Negotiation skill
3. Leadership skill
4. Communication skill

(ix) Which type of entrepreneurship focuses on providing innovative solutions to social problems?

1. Business entrepreneurship
2. Intrapreneurship
3. Social entrepreneurship
4. Commercial entrepreneurship

(x) The theory of entrepreneurship that views innovation as a key tool is:

1. Need achievement theory
2. Risk bearing theory
3. Innovation theory
4. Status withdrawal theory

Answers

2. Match the terms in Column A with their correct descriptions in Column B.

Answers

SECTION B: 

SHORT ANSWER QUESTIONS (40 MARKS)

3. a) Explain four business processes with examples.

b) Describe four purposes of a business.

4.(a) Differentiate between ‘needs’ and ‘wants’, giving three examples of each.

b) Explain why Business Studies is important for individual development.

5. (a) Identify and explain four resources used in production.

(b) Describe five features of a sole proprietorship.

6. (a) Explain five advantages of a sole proprietorship.

(b) Outline the steps involved in forming a sole proprietorship.

7.(a) Define entrepreneurship and an entrepreneur.

(b) Describe five characteristics of an entrepreneur.

8. (a) Explain three types of entrepreneurship.

(b) Describe four entrepreneurial skills.

9. (a) Explain five factors that facilitate entrepreneurship.

(b) Briefly explain four theories of entrepreneurship.

SECTION C: ESSAY QUESTION (30 MARKS)

10. (a) Discuss the challenges faced by sole proprietorships and suggest solutions for each.

(b) Evaluate the importance of entrepreneurship in the economic development of a country

OFFICE OF THE PRESIDENT, REGIONAL ADMINISTRATION AND LOCAL GOVERNMENT

SECONDARY EXAMINATION SERIES

MID TERM EXAMINATION

BUSINESS STUDIES FORM ONE

MARCH-APRIL-2025

TIME: 2HRS 30 MIN

INSTRUCTIONS.

1. This paper consist of section A, B, and C with total of 10 questions.

2. Answer all questions

3. Section A carry fifteen 15 marks, section B seventy 70 marks and fifteen 15 marks in section C.

4. All answers must be written in the spaces provided.

5. Write your Assessment number / Name at the top right hand corner of every page

SECTION A: 15 MARKS

1. For items (i)-(x) choose the correct answer from alternatives given and write the correct answer in spaces provided.

(i)Deborah owns a soft drinks business. What form of business unit is this?

A) Sole proprietorship   

B) Company

C) Limited liability partnership

D) Partnership

(ii) The following are the characteristics of sole proprietorship EXCEPT:

A) Controlled by the owner  

B) High start-up capital  

C) Owner takes all the risks  

D) The business assets are not legally separated from the owner’s assets  

(iii) What is a key advantage of a sole proprietorship?

A) Easy to form a business  

B) Limited liability of the owner

C) Separate legal entity status

D) Limited skills

(iv) In a sole proprietorship context, what does unlimited liability mean?

A) The proprietor can invest unlimited amount of money in the business

B) The business has unlimited potential for expansion

C) The proprietor’s personal assets are at risk in case the business incurs liabilities  

D) The proprietor is responsible for registering the business

(v) Which among the following businesses is a form of sole proprietorship?

A) Coffee shop owned by Asha, Mary, and Adam

B) Mobile company owned by Asha and her friends

C) Butcher owned by Adam  

D) Salon owned by a Tanzanian and an American

(vi)A sole proprietorship is the most ______ form of business ownership.

A) complex

B) common  

C) expensive

D) structured

(vii) Mwanaidi is a student who has a talent for designing clothes. She decides to start a small business where she designs and sells her own clothing. This involves purchasing fabric, using her sewing skills to create the clothes, and then selling them to customers. Which business processes are demonstrated by Mwanaidi’s activities?

A)  Production and consumption

B)  Distribution and exchange

C)  Production and exchange

D)  Consumption and distribution

(viii) Baraka has saved some money and is thinking about how to use it. He can either invest in a small business venture or put the money in a savings account. If he chooses to start the business, he will have to give up the interest he would have earned in the savings account. What economic concept does this illustrate?

A)  Scarcity

B)  Opportunity cost

C)  Needs and wants

D)  Consumption

(ix) Shukuru is considering starting a business selling school shoes. Her father has given her TShs 4,000,000 to begin, but she is currently employed in the beverage industry earning TShs 150,000 per month. What is the opportunity cost of Shukuru’s decision to start the shoe business?

A)  TShs 4,000,000

B)  The potential profit from the shoe business

C)  TShs 150,000 per month

D)  The cost of goods for the shoe business

(x) Which of the following is a disadvantage of a sole proprietorship?

A) Easy to form

B) Direct relations with customers

C) Unlimited liability  

D) Enjoys all the business profit

2. Match the terms in Column A with their correct definitions in Column B.

SECTION B. 70 MARKS. ANSWER ALL QUESTIONS

3. (a) What is a sole proprietorship?   

(b) List three examples of sole proprietorships.  

4. (a) What does unlimited liability mean in the context of a sole proprietorship?  

(b) State three advantages of a sole proprietorship.  

5. (a) Mention three disadvantages of a sole proprietorship.  

(b) How can a sole proprietor solve the challenge of unlimited liability?  

6. Why is succession planning important for a sole proprietorship?   

7. What is the main goal of a business?

8. Define ‘opportunity cost’ and give an example.

9. (a) Why is it important to study Business Studies?

(b) How does Business Studies relate to Mathematics?

SECTION C. 15 MARKS. ANSWER QUESTION 10

10. Explain the contributions of sole proprietorship to development of Tanzania economy