STUDENT’S NAME: ________________________________________

PRIME MINISTER’S OFFICE REGIONAL ADMINISTRATION AND LOCAL GOVERNMENT

FORM ONE MIDTERM EXAMINATION 

BUSINESS STUDIES

Time:2:30 hours September, 2026

INSTRUCTION

1. This paper consists of sections A, B and C with ten (10) questions
2. Answer all questions in all sections.
3. ALL answers should be written in the space provided.
4. Write your Index number/Name on every page provided.

SECTION A (15 Marks)

Answer all Questions from 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) KassimJoshua runs a small barbershop in his neighborhood. He manages the finances, attends to customers, and makes all decisions independently. What type of business is Joshua operating?

1. Partnership 
2. Sole Proprietorship 
3. Joint Stock Company
4. Cooperative Society

ii) Rehema started a tailoring business and began designing clothes using old denim and African prints to create a unique fashion line that attracted youth in her community. What entrepreneurial characteristic does Rehema demonstrate?

1. Risk taking 
2. Passion 
3. Creativity
4. Optimism

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

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

iv) James operates a small computer repair business. If the business makes a loss, he must cover it from his personal funds. What characteristic is shown here?

1. Separate legal entity 
2. Unlimited liability 
3. Limited liability
4. Corporate existence

v) A local entrepreneur fails to register his business and later faces penalties. This situation reflects the importance of understanding:

1. Legal compliance 
2. Production management 
3. Business innovation
4. Customer service

vi) In Tanzania, which government agency is responsible for the registration of sole proprietorships?

1. BRELA 
2. NMB 
3. TRA
4. TANESCO

vii) Peter lost his position as a village leader due to a political disagreement. Later, he started a large poultry farm to regain recognition. Which theory of entrepreneurship is reflected in his actions?

1. Risk-Bearing Theory 
2. Status Withdrawal Theory 
3. Innovation Theory
4. Need Achievement Theory

viii) A drama group performs a play at a local hall. They charge for tickets, plan their costs, and aim to make a profit from the performance. Which subject supports their planning and financial decisionmaking?

1. Theatre Arts
2. Civics 
3. Chemistry
4. Business Studies

ix) Mariam earns TZS 20,000 per day. She spends part of her money on food and the rest on buying aC. Chemistry new handbag and internet bills. Which of the following is a need in Mariam’s spending?

1. The handbag 
2. A new dress
3. Food
4. Internet bills

x) Neema’s bakery business suffered when she passed away suddenly, and the business closed. This shows the disadvantage of:

1. Lack of capital 
2. No continuity 
3. Limited profit
4. Complex taxation

Answers

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

Answers

SECTION B (70 Marks)

Answer All Questions

3. With examples briefly explain the following classification of goods

1. Perishable goods
2. Durable goods
3. Economic goods 
4. Free goods
5. Merit goods

4. Your friend Daudi wants to start a small mobile phone accessories business in his town. He has never started a business before and has asked for your advice on what to do before he officially begins. He wants to follow the right procedures and make sure his business operates legally and successfully. Advise Daudi by explaining five main steps he should follow to form a sole proprietorship.

5. At Green Valley Secondary School, the Form Two class visits a nearby maize farm owned by Mr. Mrema. On the farm, they observe different activities and resources being used.

1. The farm covers a large piece of fertile land with good soil and a nearby water source.
2. Mr. Mrema has employed five workers who help in planting, weeding, and harvesting the maize.
3. He uses tractors, hoes, and storage facilities to improve productivity.
4. Mr. Mrema also makes decisions about what to plant, how to manage workers, and how to sell the harvested maize in the market.

From the case study above, identify and name the four factors of production, and give one example of each as seen in the farm activities.

6. Amina, a young woman from Mbeya, noticed that many people in her area were struggling to find fresh and affordable vegetables. Instead of waiting for someone else to solve the problem, she decided to use a small piece of land behind her house to start a vegetable garden. She worked long hours, even during weekends, to grow and sell the vegetables to her neighbors. Sometimes, she faced bad weather and crop failure, but she never gave up. After one year, her business had grown, and she started supplying local markets and hiring two workers to help her. From the case above, explain five main characteristics of entrepreneurship that Amina showed in her journey.

7. Hashim operates a small barber shop in his neighborhood. He used his savings to buy equipment and set up the shop. He works alone, sets his own prices, and makes all the decisions. The profit he earns belongs to him, but he also takes full responsibility when the business is slow or equipment breaks down. Most of his customers know him by name. From the case above, explain five main characteristics of a sole proprietorship shown in Hashim’s business.

8. In a small village, Asha opened a retail shop that sells food items, soap, and school supplies. People in the village no longer need to travel far to buy basic goods. Asha buys products from nearby towns, which helps producers there. She earns income to support her family and has recently employed two young people from the village. Using the scenario above, explain five importance of business in a community.

9. Fatuma runs a small clothing shop in a town in Tanzania. She manages the business alone and depends on her own savings to restock goods. Sometimes, she lacks enough capital to buy in bulk. When she gets sick, the shop remains closed. She also faces strong competition from bigger shops and struggles to keep proper business records due to limited knowledge. From the scenario above, explain five challenges that sole proprietorships face in Tanzania.

SECTION C (15 Marks)

10. Juma is a young man from a small town who noticed that many people in his community had to travel long distances to buy essential household items. After completing his vocational training, he decided to start a small retail shop in his neighborhood. Despite facing financial challenges and stiff competition from larger businesses in nearby towns, Juma remained determined. Over the years, his business grew, and he began employing others from his community. He also started offering credit to loyal customers and sponsored local youth events. Based on the short case above, explain six importance of entrepreneurship in a country like Tanzania

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.