ST. GERTRUDES’ VOC. GIRLS SEC.
SCHOOL, KISORO
S.6 BEGINNING OF TERM ONE ASSESSMENTS 2026
P230/1b ENTREPRENEURSHIP EDUCATION
ADVANCED SECONDARY CURRICULUM TEST, 2026
INSTRUCTIONS TO CANDIDATES:
This paper consists of two sections: B and C.
You are required to attempt TWO items in All.
The item in Section B is compulsory.
Select only ONE item from Section C.
Duration 1 Hour 45 Minutes.
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SECTION B:
CONSTRUCT TWO: MANAGING A BUSINESS FOR SUSTAINABILITY
This item is Compulsory
ITEM FOUR
You have been actively involved in producing selected products by following standard
production procedures and promoting them using effective marketing strategies. This includes
gathering market information, such as identifying customer needs, determining pricing strategies,
and analyzing the level of competition. Due to your business success, senior five
entrepreneurship students from a nearby secondary school are interested in visiting your school
to learn your best business practices. These practices include preparing a business profile,
demonstrating the production process, and designing a customer information collection
questionnaire. You have been chosen to represent your business club and address the visiting
students.
Task:
1. Explain three business practices that the visiting students are expected to learn from your
business club.
2. Explain to the visiting students the ways you employed to market your products
SECTION C:
COSTRUCT THREE: SUPPORTING BUSINESS FOR SUSTAINABILITY.
Select ONE item from this section
ITEM FIVE:
Lubex Foods Ltd is a growing food processing and distribution company operating across
Uganda. The business is seeking to expand its investment by raising long-term capital through
Uganda’s Capital Markets following the appropriate procedures. However, due to the recent
departure of its accountant and inability to replace him immediately, the company currently lacks
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the internal financial expertise needed to undertake this process. To support its expansion plans,
Lubex Foods Ltd is preparing a consolidated financial report which will enable it to evaluate its
financial performance based on existing financial record as reflected in the account summary
provided below;
Lubex Foods Ltd.’s
Summary of balances as at 31st December 2024
Particulars Amount (UGX)
Sales Revenue 120,000,000
Sales at cost 60,000,000
Operating Expenses 27,000,000
Loan Payable 10,000,000
Equipment at Cost 30,000,000
Accumulated Depreciation 6,000,000
Business Premises 65,000,000
Cash at Bank 8,000,000
Closing Inventory 7,000,000
Accounts Receivable 5,000,000
Accounts Payable 6,000,000
Drawings 5,000,000
Capital Invested 65,000,000
Task
Prepare financial reports and interpret the profitability of Lubex Foods Ltd using rate of returns
on capital employed and provide guidance on the roadmap the company should follow to access
suitable investment products.
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ITEM SIX
Musa operates a beef butcher stall called ‘SMART BUTCHER’ for the months of April, May,
June and July 2025. He has limited accounting skills and this has made it difficult for his project
to determine the movement of cash in the business. He has hired you for technical assistance as
a fresh graduate in accounting. The following records were availed to you:
i. Net cash position for March 2024: 900,000
ii. Sales per kg of meat is Shs.10,000 kgs and the following kgs were sold per rmonth on
cash basis.
Months Kgs
April 2,000
May 3,000
June 4,000
July 5,000
iii. 3 (three) cows were monthly purchased for slaughter each at Shs1,000,000 but 40% of
payment were made and remaining balance to be paid in the following month.
iv. The butcher employees both full time and part time workers, with full time workers
earning twice the pay of part time workers. The business employs 4 part time workers
and 2 full time workers. Part time worker is paid Shs.200,000 per month.
v. The business plans to acquire two loans in the 1st and 3rd months for Shs.12,000,000
and Shs 16,000,000 respectively payable in four equal monthly installments with effect
from the months of acquisition at an interest rate of 5% monthly on a straight-line
method. The last month for the 3rd loan was defaulted due to decline in sales.
vi. The business projects to buy 900 units of Yaka electricity bill each at Shs500. This was
to increase by 10% every month.
vii. A corporation tax of 30% is to be paid on each month of the total cash sales made.
Task:
As a consultant in accounting, assist Musa to develop a relevant financial statement to
determine cash movement and advise him on the ways to use the excess cash in the business.
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End!
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