SECTION A: (40 marks)

1. a) (i) Define the term income.

(ii) Mention any three sources of income to an entrepreneur.

b) (i) Distinguish between direct and indirect taxes.

(ii) Give two reasons why a business should pay taxes.

c)(i) State any two elements of a business plan.

(ii) Outline any two benefits of a business plan to an entrepreneur.

d)(i) What is meant by a contract ?

(ii) Mention any three advantages of a contract to a business.

e)(i) Differentiate between a partnership business and a limited company business.

(ii) Give any two features of a limited company.

F)(i) Define the term risk.

(ii) Mention any three factors that should be considered when assessing risks.

g) Outline any four roles played retailers in the distribution of a product.

h) (i) What is meant by the term market?

(ii) Give any three factors that determine a potential market.

I(i) Define the term investment.

(ii) Suggest any three measures that should be taken to promote investment in Uganda.

j) (i) What is a cheque?

(ii) Mention any three circumstances under which a cheque may not be considered for payment.

SECTION B: (60 marks)

2. a) Outline the various pre-operating expenses of a manufacturing business.

b) How can a business minimize its pre-operating expenses?

3. a) Explain the various principles of insurances.

b) Describe the procedure of taking out an insurance policy.

4. a) Describe the different laws governing business in Uganda.

b) In what ways do business laws protect consumers in Uganda?

5. a) Explain the importance of advertising a product.

b) Describe the various forms of advertisement that may be used by an entrepreneur.

6. a) In what ways have business damaged the natural environment in your country?

b) Suggest measures that should be taken to minimize the damage caused by business to the natural environment.