FORM ONE BUSINESS MIDTERM EXAMS

 PRIME MINISTER’S OFFICE REGIONAL ADMINISTRATION AND LOCAL GOVERNMENT

FORM ONE MIDTERM EXAMINATION-MARCH 2026

BUSINESS STUDIES 

 TIME: 2:30HRS

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 

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)Education provided by teachers, healthcare from doctors, and banking services offered by financial institutions are good examples of:

  1. Economic goods 
  2. Free goods 
  3. Opportunity cost
  4. Service

(ii) A student writes a business advertisement to attract customers to a new shop in town. The advertisement is written in both English and Kiswahili to reach more people. What skill is the student applying?

  1. Science knowledge 
  2. Drawing and design 
  3. Translation and communication skills
  4. Cooking skills

(iii) Which of the following characteristic is demonstrated when an entrepreneur adjusts their business to meet new market demands?

  1. Patience 
  2. Flexibility 
  3. Greed
  4. Laziness

(iv) Hamza introduced a mobile payment system in his small retail shop before anyone else in his area, making transactions faster and safer. Which characteristic is Hamza showing?

  1. Flexibility 
  2. Curiosity 
  3. Innovativeness
  4. Commitment

(v)Jane has TZS 10,000. She can either buy a textbook for school or a ticket to a music concert. She chooses to buy the textbook. What is the opportunity cost in Jane’s decision?

  1. The concert she missed 
  2. The value of the textbook in the future 
  3. The textbook she bought
  4. The money she spent

(vi)Alphonse, a shopkeeper does not understand how Business Studies and Mathematics work together to help him in doing business? What could be the relationship between the two subjects in helping him?

  1. Business Studies teaches the shopkeeper about customer service
  2. Mathematics helps the shopkeeper calculate sales, profit, and costs in business
  3. Mathematics teaches the shopkeeper how to sell products
  4. Business Studies helps the shopkeeper decide what to sell

(vii)Joseph left his well-paying government job to start a fish-farming business despite uncertain profits. This decision is best explained by which theory?

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

(viii) Which of the following scenarios best represents the concept of entrepreneurship?

  1. A student memorizing business terms
  2. A teacher lecturing about entrepreneurship
  3. A young man who starts and runs a mobile car wash service
  4. A customer buying products from a shop

(ix) Neema borrowed money and started a cosmetics shop, knowing there were already five in her area. Her willingness to face possible failure shows her:

  1. Ignorance 
  2. Dependence 
  3. Risk-taking spirit
  4. Carelessness

(x)Following family rejection, Musa launched a successful transport business and quickly rose to fame in his community. His motivation aligns most closely with:

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

Answers

i ii iii iv v vi vii viii ix x









.

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 items in List A

LIST A

LIST B

(i) An organization engaged in producing or buying and selling goods and services with the aim of earning profit and satisfying customers’ needs 

(ii) The natural resources used in production.

(iii). The human effort, both physical and mental, used to produce goods and services.

(iv). Man-made resources like machinery and tools used in production.

(v). The ability to organize and manage resources to create a business.
  1. Capital
  2. Land
  3. Scarcity
  4. Opportunity cost
  5. Production
  6. Entrepreneurship
  7. Labor
  8. Business

Answers 

List A i ii iii iv v
List B




SECTION B (70 Marks) 

Answer All Questions

3. During a Business Studies lesson, students are learning about the types of goods based on how long they last. The teacher gives them a list of items and asks them to classify each as a Durable Good or a Perishable Good

Instruction:

Classify each of the following goods as either a Durable Good or a Perishable Good.

S/No.

List of Goods

Classification

i

Fresh fish

ii

Iron sheets for roofing

iii

Loaf of bread

iv

School desk

v

Fresh vegitables

vi

Wooden table


vii

Tomatoes


viii

Cement


ix

Computer


x

Fresh milk


4. In Arusha town, Aunty Neema owns a small tailoring shop. She buys fabric, thread, and buttons from local suppliers. She uses sewing machines to design and stitch school uniforms. After completing the uniforms, she delivers them to various schools using a hired van. Parents come to the schools, pay for the uniforms, and take them home for their children to wear.

Required: From the scenario above, identify the four business processes and give one example of each based on Aunty Neema’s tailoring business.

5. From the following entrepreneurs, you are required to identify the type of entrepreneurship (Business, Corporate, or Social Entrepreneurship) demonstrated by their character or activities.

S/N.

ENTREPRENEURSHIP ACTIVITIES

CLASSIFICATION

(i)

Juma started a small dairy farm to supply milk to his neighborhood and make profits to support his family.



(ii)

Amina works in a telecommunications company. She developed a system that improved customer service by reducing call wait times.



(iii)

After realizing that many girls in rural areas miss school due to lack of sanitary pads, Neema founded an organization that distributes reusable pads for free.



(iv)

Joseph opened a car repair garage with the aim of earning profits while also training youth in mechanical skills.



(v)

In a large beverage company, Michael led a team that developed a new eco-friendly packaging solution.



(vi)

Grace created a non-profit that offers free digital literacy training to women in underprivileged communities.



(vii)

David runs a grocery store in his town. He buys produce from local farmers and sells it for a profit.



(viii)

Within a multinational electronics firm, Sarah invented a smart home feature that boosted the company’s product sales.



(ix)

Hamisi founded a community recycling program that reduces pollution and provides employment to street youth.



(x)

Fatma noticed that many elderly people in her town lacked proper healthcare access. She established a mobile clinic that offers free check-ups and affordable medicine to the elderly, especially those in remote areas.



6. Zawadi is a 19-year-old who recently completed her secondary education. Instead of waiting for formal employment, she used her savings to start a small business making handmade soaps. At first, she faced many challenges, including stiff competition and lack of experience. However, Zawadi remained focused and continued improving her products by using natural ingredients and attractive packaging. She also took time to learn basic marketing skills and often sought customer feedback to improve her services. Within a year, her soaps were being sold in local shops and supermarkets.

Required: Based on the scenario above, identify and explain five characteristics of entrepreneurship demonstrated by Zawadi. Support each characteristic with evidence from the scenario.

7. In the village of Lugoma, several individuals begin launching different businesses, including a grain milling service, a motorbike transport (bodaboda) group, and a second-hand clothes market. Over time, more business activities emerge, and the village becomes busier with trade and services happening daily. While life in Lugoma continues to change, most residents go about their routines without questioning the growing number of businesses around them.

Based on this scenario, explain five importance of business in the society.

8. In Tanzania, the government supports the consumption of some goods because they bring positive outcomes to individuals and society. At the same time, it discourages the use of certain goods that may cause harm when overused. Based on this idea, classify each of the following goods as either a merit good or a demerit good:

S/NO.

GOODS

CLASSIFICATION

(i)

Blood donation services


(ii)

Plastic bags (single-use)


(iii)

Community clean-up programs


(iv)

Night clubs


(v)

Free vaccination programs


(vi)

Khat (miraa)


(vii)

Sanitation facilities


(viii)

Violent video games


(ix)

Public transportation


(x)

Hookah(Shisha)


9. In the village of Kizimba, Mama Rehema opened a small bakery. She rented a shop near the market, bought baking ovens and ingredients like flour, sugar, and eggs. She hired two young women to help her bake and serve customers. Every morning, Mama Rehema wakes up early to plan the day’s work, supervise the staff, and ensure quality in production. Her bakery quickly became popular, supplying bread and cakes to local shops and schools.

Required:

From the scenario above, identify the four factors of production and give one example of each as used in Mama Rehema’s bakery.

SECTION C (15 Marks)

10.Business studies covers various components that provide a comprehensive understanding of how businesses operate successfully in today’s dynamic economy . Explain 6 scopes of business studies

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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

Question

i

ii

Iii

iv

v

vi

vii

viii

ix

X

Answer









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

LIST A

LIST B
  1. Entrepreneur
  2. Innovation
  3. Risk
  4. Opportunity
  5. Capital
  1. The ability to come up with new ideas, products, or ways of doing things.
  2. A person who starts and manages a business with the aim of making a profit.
  3. The resources (money, assets) required to start and run a business.
  4. The potential for success or failure in a business venture.
  5. A favorable set of circumstances that can lead to business growth or development.
  6. Whole sale and retail shop
  7. Required a large capital to start

Answers

Question

i

ii

iii

iv

V

Answer




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

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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.

Column A

Column B
  1. Production
  2. Distribution
  3. Exchange
  4. Consumption
  5. Scarcity

 

a.       The act of using goods and services to satisfy human needs and wants.

b.       Shortage in supply of resources.

c.       This involves buying and selling of goods and services between two or more parties.

d.       The process of transforming raw materials into finished products to satisfy human needs and wants.

e.       This is a process of moving goods and services from where they are produced to where they are needed for consumption.

 

 

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

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