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

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