Assessment Number _____________________

THE UNITED REPUBLIC OF TANZANIA PRIME MINISTER’S OFFICE REGIONAL ADMINISTRATION AND LOCAL GOVERNMENT

FORM TWO TERMINAL EXAMINATION-MAY

BUSINESS STUDIES

TIME: 2:30 HOURS

Instruction 

1. This paper consists of section A, B and C with a total of nine (9) questions.
2. Answer all questions in a 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 ink, except drawings which must be in pencil.
5. Communication devices, and any unauthorized materials are not allowed in the assessment room.

SECTION A(marks 15)

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. An entrepreneur is best described as:

1. A person who works in a factory
2. A person who initiates and manages business risks
3. A government employee
4. A bank manager

ii. Which of the following is a characteristic of a sole proprietorship?

1. Ownership by two or more people
2. Shares are sold on the stock exchange
3. Unlimited liability
4. Limited liability

iii. The reward for land as a factor of production is called:

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

iv. Miss Debora’s business earned TZS 250,000 from sales while she incurred TZS 70,000 as expenses to run business. What is Miss Debora’s profit or loss? ( )

1. Profit TZS 320,000 
2. Loss TZS 18,000 
3. Profit TZS 18,000 
4. Loss TZS 320,000

v. Which of the following refers to making goods and seniors to satisfy human needs and wants?

1. Wholesaling
2. Production
3. Utility
4. Capital

vi. Borrowing funds from financial institutions with the agreement of repaying them with interest over a specific time refers to…………………..

1. financial business.
2. raising fund.
3. loan.
4. deferred payment.

vii. The process of making payment for the purchased products at a later date refers to…………

1. purchases.
2. borrowing.
3. deferred payment.
4. cash payment.

viii. Which of the following functions of management deals with recruiting, placing, training, and terminating employees?

1. Planning 
2. Directing 
3. Staffing 
4. Organising

ix. Which of the following is the merit of storing goods in a warehouse?

1. It enables the preparation of goods for sale
2. Compensation for the loss of goods
3. It is easy for small enterprises to invest
4. Facilitate movement of goods from one place to another

x. One of the following steps in identifying business opportunities.

1. Customers needs 
2. Business ideas 
3. Potential competitors
4. Market research

Answers

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

 Answers

SECTION B (40 Marks)

Answer all questions in this section

3. Differentiate the following terms as used in business studies

1. Economic goods and free goods
2. Public goods and private goods
3. Inferior goods and giffen goods
4. Substitute goods and complementary goods
5. Merit and demerit goods

4.(a) Define the term entrepreneurship. (3 marks)

(b) Mention four (4) qualities of a good entrepreneur. (7 marks)

5. (a) Explain three (3) main roles played by entrepreneurs in the society. (6 marks)

(b) Identify and explain two (2) challenges faced by entrepreneurs. (4 marks)

6. (a) Define a sole proprietorship. (3 marks)

(b) State four (4) advantages and three (3) disadvantages of a sole proprietorship. (7 marks)

SECTION C (45marks)

Answer all questions in these sections

7. Imagine you own a small business in your community. How will financial and other records keeping, profit and loss calculation and business management help your business thrive?

8. John has started a small carpentry workshop in which he produces furniture and ensure customer gets quality products. Basing on this case study explain five main critical issues that John may face I operating business

9. You are running a small electronics shop experiencing frequent inventory problems. You use a manual inventory tracking system. Discuss how implementing an inventory management system with barcode scanning technology and integrated software can help you reduce inventory discrepancies and losses.

Assessment Number ____________________

PRIME MINISTER’S OFFICE REGIONAL ADMINISTRATION AND LOCAL GOVERNMENT

FORM TWO MIDTERM ASSESSMENT MARCH

065 BUSINESS STUDIES

TIME: 2:30 HRS 

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 carries 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. Cellular phones and any unauthorized devices or materials are prohibited in the examination room.
6. Remember to write your Assessment Number on every page.

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) If Maendeleo Company Limited's job advertisement requires a worker with a bachelor's degree and ICT skills, what type of worker is it looking for.

1. Unskilled worker 
2. labourer 
3. Skilled labour 
4. Semi-skilled labour

ii. Mr. Mbaga is transfering sugar from Mtibwa Sugar company in Morogoro to Bumbuli for selling it. According to what you have learnt in your studies, what is the process Mr. Mbaga doing in this scenario?

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

iii. Mrs Mahasha always cooks food for her family. What type of production does she engage in?

1. Direct Production 
2. Domestic Services 
3. Indirect Production 
4. Food Production

iv. Keeping aside part of personal earnings for future use refers to

1. Debt 
2. Saving 
3. Serving 
4. Loan

v. One of the following is a feature of land as a factor of production.

1. It is manufactured. 
2. It is the most mobile factor
3. It lacks mobility. 
4. Ability to organise other factors of production.

vi. Which financing option involves receiving money from friends and family?

1. Bootstrapping 
2. Crowdfunding 
3. Informal Financing 
4. Venture Capital.

vii. Which of the following refers to making goods and services to satisfy human needs and wants?

1. Whole selling 
2. Production 
3. Utility 
4. Capital

viii. Organizations owned and operated by people with similar needs are referred to as;

1. Microfinance 
2. Corporation 
3. Enterprises 
4. Cooperatives

ix. Interest means

1. Profit 
2. Buying and selling 
3. Price money 
4. Savings

x. What is a common challenge faced by small businesses when seeking financing?

1. High Interest Rates 
2. Lack of collateral 
3. Insufficient Credit 
4. All of the above

Answers

2. Match the items in List A with the correct answer in List B and write the letter of the correct answer in the table below.

ANSWERS:

SECTION B (40 Marks)

ANSWER ALL QUESTIONS IN THIS SECTION.

3. (a) Describe the concept of production.

(b) Explain three importance of production

4. In five points explain the importance of Entrepreneurship

5. Write short Notes on the Following

1. Business
2. Sole proprietorship
3. Cash book
4. Free goods
5. Exchange

6. What are the sources of funds? Mention and explain.

SECTION C (45 Marks)

ANSWER ALL QUESTIONS IN THIS SECTION.

7. You are given the following transactions for the business “MPONDE Mini Shop” during the month of March 2026. Prepare a single-column cash book to record the cash receipts and payments.

Transactions:

• March 1. Started business with Tzs 100,000 in cash.
• March 2. Bought stock for cash Tzs 30,000.
• March 3. Paid for shop cleaning Tzs 5,000.
• March 3. Sold goods for cash Tzs 20,000.
• March 5. Paid Wages to employee Tzs 10,000.
• March 6. Received Tzs 12,000 from a customer.
• March 7. Purchased packaging materials for Tzs 3,000 in cash.
• March 8. Paid electricity bill Tzs 6,000
• March 9. Cash sales Tzs.18,000
• March 10. Withdraw cash for personal use Tzs. 8,000

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

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