Sihs-Question Bank For A'level

ADVANCED LEVEL [A GUIDE TO PASSING ENTREPRENEURSHIP EDUCATION]
The Society of Jesus in Rwanda

Saint Ignatius High School/ Kibagabaga
P. o. Box: 6717 Kigali/Rwanda Tel: +250 781691725
E-mail: [email protected]
1. During product development in the process of production, the producer must observe
all the stages of quality control that must be followed in order to produce a quality
product to be put on the market. Analyze the advantages of quality control to the
business
2. Before money came into existence, the barter system was used for exchange. However,
this system hard many challenges which led to the evolution of money. Suggest the
functions of money in an economy
3. Define the following terms as used in Entrepreneurship
a) An entrepreneur
b) Manager
4. Show the relationship between creativity, innovation and invention
5. Give the stages of entrepreneurship process
6. A S.4 student from G.S MURAMBI failed to get school fees to continue with his studies
after losing both his parents in an accident. He decided to go to a nearby trading centre
to start a small retail business of selling water and snacks. He started with 5000 frw he
borrowed from a friend. He later became a successful businessperson. Evaluate the
benefits of being an entrepreneur
7. Explain the importance of studying entrepreneurship in secondary schools in Rwanda
8. Explain the qualities of a good entrepreneur
9. Using examples from your community, identify the different types of Entrepreneurs
10. Identify three ways how a person can become an entrepreneur
11. You are appointed as the human resource manager of MTN Rwanda ltd to work at their
branch in the southern province. Explain your functions in the human resource
department at your new work place
12. Distinguish between an entrepreneur and an intra-prenuer
13. Using a case of entrepreneurs in your home area, discuss the challenges of being an
entrepreneur
14. What do you understand by the term Career?
15. Show the sources of career information
a) What is a career trajectory or career path?
b) Name the stages of career path
(ST.IGNATIUS HIGH SCHOOL) Tel : +250785526813

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Email : [email protected] Model questions 2022
Teacher : Dismas Kavuma
c) Outline the sources of career guidance

16. Many people are working in different sectors like agriculture, trading, service activities,
among others. They enjoy the freedom of being self-employed. Explain the benefits of
being self-employed.
17. Paid employment may be good or bad. Identify the negative side of paid employment.
18. A student in s.3 from your school is ready to choose a combination for S4, since his
childhood he dreams to be a medical doctor in one of reputable hospital but he has the
challenges of not performing well in sciences, he is approaching you for the career
guidance. Based on the competences acquired in entrepreneurship S4 (career
opportunity). Examine the factors that will influence his choice of a career
19. a)Differentiate between paid employment and self-employment
b)Self-employment is better than paid-employment. Justify the above statement
20. Discuss the factors determining career choice
21. a)Giving examples, define the term Goal
b)Giving possible examples, describe any five features of a good goal
22. Identify any five learning styles of your friends that are different from yours
23. Differentiate between values and skills
24. a)Outline the steps to setting and achieving goals
b)Examine the importance of goal setting to the business
25. Outline the personal qualities in relation to entrepreneurship
26. Explain the various types of goals that you know with examples
27. Referring to your community, determine the factors that promote a person’s status in the
community
28. As a student who has studied the goal setting tree, design the goal tree indicating all the
parts with their meanings
29. a)What do you understand by the term Business laws
b)Outline any three legal institutions related to businesses in Rwanda
c)Describe the roles of any two legal institutions related to businesses in Rwanda
30. Mutoni went to the shop and bought two bottled pineapple juice. She was charged
700frw per bottle. She did not bother to check the expiry dates of the products. When
she tasted one of the bottles, it had an unpleasant taste. She checked the expiry date
and found out that the juice had expired two weeks earlier. But she feared to go back
and claim.
Discuss the different business laws that can protect consumers against unfair business
practices
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31. a)The law requires every business to be registered within 7 days of the commencement of
a new business. Explain the benefits of registering your business
b)Identify the consequences of not registering your business
32. a)Examine the advantages of sole proprietorship business
b)Differentiate between partnership and sole proprietorship
33. Assess the contributions of cooperative societies (SACCOs) in the development of your
country
34. Ms Abera Janet and Mr. Bahati John decided to start a partnership business of
Recruitment Services in the name of BEST GATE RWANDA to take effect from 31 st May
2022. They agreed to have a 50% share of profits and losses each. Design a partnership
Deed for the above parties illustrating clearly each component in the Deed
35. Define the following terms
a) A Standard
b) Substandard product/service
c) Standardization
36. a)State any five importance of standards to the government
b)List any three importance of standards to the consumer
c)Illustrate the process of standardization in Rwanda
d)Outline the institutions involved in different standardization activities in Rwanda
e)Identify three levels of standardization
37. a)Examine the need for international standardization
b)Analyze the different types of standards
38. a)Imagine you have bought cooking oil from a supermarket. After opening it for use, you
find that it has bad smell, is expired, doesn’t have RSB mark and no longer of use.
Determine the characteristics of a substandard product
b)Propose the advantages of standards to society
39. a)How is marketing different from selling?
b)What are the components (4Ps) of marketing a commercial activity?
c)Describe how customers are the backbone of any business
40. a)Assume you are named to be a marketing manager of URWIBUTSO Enterprises Ltd.
The firm has experienced low sales in rural areas of Rwanda and you are requested to
widen the market and increase sales by 8% within the next 6 months. Explain the
marketing strategies you can use to increase sales in the business
b)Summarize the types of customers
c)Market research involves gathering and analysing information about the market.
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d)Identify the steps in market survey/Research

41. Apply the knowledge acquired in entrepreneurship about research to identify the factors
that determine the potential market of a business
42. Explain the methods of price determination in the market
43. A potential supplier is one who is likely to provide you goods and services at a later date.
Discuss the factors considered when choosing the best supplier for your product
44. a)Why is it important to form departments in a business organization?
b)What is the meaning of an organizational structure?
c)Describe the managerial functions in a business organization
45. Summarize the personal values and attributes employers look for in an employee
46. Identify the factors one should look out for when selecting a business partner to work
with
47. Outline the role of the organizational structure in the business
48. Classify the different business organization
49. Government parastatals play a vital role in the development of the country. Do you
agree? Support your view
50. You have obtained a loan of 10 million Rwandan francs form Bank of Kigali to expand
your project of manufacturing plastic products.
Draw up an organogram (organizational chart) you’re your company.
a) Business finance
b) Financial management
52. a)What does the term money mean?
b)Business capital can be obtained from various sources. List these sources
c)Explain the different uses of capital in the business
53. ABC COMPANY LTD is considering two projects for which the want to get a loan from
EQUITY Bank. The project will bring the following cash flows:
Year project A PROJECT B
0 (100000) (100000)
1 40000 50000
2 40000 0
3 40000 0
4 40000 0
5 40000 250000
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Abc company ltd accepts an only project which brings back the money they used to start
(payback period) of 3 years or less.
Required: Compute;
a) The total cash inflows for each project
b) The payback period for these two projects
c) Select a project which ABC Co.ltd will choose given their requirement
54. Suppose you deposit Rwf 500,000 in Equity Bank for 5 years at the annual interest rate
of 12%. Find the amount that your investment will grow after 5 years if interest is
compounded semi-annually.
55. Analyze the importance of the break-even analysis
56. Explain the functions of financial management
57. Elaborate the types of interest rates you know
58. a)What is the meaning of financial institutions?
b)Show the role of financial institutions to an entrepreneur
c)Give the functions of a commercial bank to an individual in the community
59. Using examples, classify the different financial institutions in Rwanda according to their
different functions
60. Financial institutions provide convenience to our everyday lives. Outline different
products and services offered by financial institutions
61. a)Identify the different procedures or steps that would be taken to acquire a loan from a
financial institution
b)Examine the advantages of acquiring a bank loan
c)Analyse the disadvantages of using a loan as a source of capital
d)Explain the functions of the National Bank of Rwanda (BNR)
62. KAYITESI Agnes bought a motor vehicle from Akagera Motors. She has a current account
in Bank of Kigali. She decides to pay Akagera Motors using a cheque. Design the cheque
to be used by Kayitesi.
63. a)What is the meaning of accounting cycle?
b)List the major steps in accounting cycle
64. Kamikazi is a prosperous trader in Nyarugenge district and owns a very big business.
She is exemplary in terms of stock management. This is attributed to the fact that she
has employees who are well trained and manage her stock properly. Identify the
documents that can be used for proper stock management in Kamikazi’s business.

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65. Describe the different types of business transactions

66. Discuss the importance of book keeping to an enterprise
67. Outline the advantages of instalment payment to the buyer
68. Differentiate the users of accounting information
69. The following items were extracted from ANGELINAH’s trial balance for the year ending
on 31st December 2021
Cash at hand 105,000 frw

Cash at bank 80,000 frw
Bank overdraft 5,000 frw
Stock 86,000 frw
Creditors 15,000 frw
Debtors 13,000 frw
Short term loan 200,000 frw
Buildings 100,000 frw
Required: calculate
a) Working capital
b) Capital employed
70. Using examples, break down the elements of a balance sheet
71. Explain the types of accounting
72. Specify various source documents for a business
73. a)What are the sources of business ideas and opportunities
b)State the characteristics of a good business idea
c)Describe techniques used to generate business ideas
d)Explain the factors influencing the choice of a business opportunity
e)Identify business opportunities based on available resources
f)Analyze the factors to consider when evaluating viable business ideas and opportunities
74. a)Using a SWOT analysis, Evaluate any business opportunity you intend to start after
school.
b)Create a table of five idle resources and their respective business opportunities which
can be generated
75. Nyirarukundo wants to buy a plot of land located in Rukara sector in Nyagatare District.
However, she is worried of losing her money and she wants a contract of sale as security
for her money.

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a) What do you understand by the term contract?

b) State the parties that Nyirarukundo can include in the contract to make it valid
c)Explain the benefits of signing a business contract to Nyirarukundo
d)Identify different ways of resolving disputes in an organization
e)Examine the conditions under which a contract may be terminated
76. You are intending to find a rented house which will cost around 50,000 frw per month.
You would like to make a deposit of three months to the mr. Musoni, the owner of the
house. Design a rent contract to be signed between you and mr.Musoni
77. Discuss the elements of a valid contract
78. Ruth is a prominent trader in one of the growing centers of eastern province. She
normally buys her goods from the neighbouring country of Uganda. In the previous
budget the minister announced that, in order for the government to be able to fund its
activities, all people will pay a certain amount of money to the government but charged
on goods sold and bought in form of taxes. Ruth realized that this might reduce her
profit. Therefore, she decided that in order to continue getting the same profit, she
would:
i) Pay some boys to get for her goods from Uganda by crossing the river without going to
the customs to pay taxes.
ii) For goods on which she would pay taxes, she would increase the prices charged to the
customers.
iii)Reduce or stop buying some of the goods on which the tax had been increased
Questions:
From the decisions Ruth had, which of them is:
a) Tax avoidance
b) Tax evasion
c) Tax shifting
79. Outline the rights and obligations of a tax payer
80. Identify the principles that must be observed during tax assessment by RRA
81. One of RRA objectives is “Aim at empowering the government of Rwanda to fund its own
essential expenditure.” To achieve their objective, they need to encourage as many
people as possible to pay their tax obligations. As a student who has studied taxation,
analyse the importance of paying taxes to the government of your country.
82. Explain the different types of direct taxes you know
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83. UTEXRWA Industry bought cotton from a local farmer worth 1,200,000 frw to use in
production of blankets. 170 blankets were manufactured and sold to wholesaler at a
cost of 4,000,000 frw which he later supplied to Lemigo Hotel at a value of 8,000,000frw
VAT included. Calculate the value of VAT paid on blankets
84. Define the following terms as used in business research
a) Quantitative research
b) Qualitative research
c) Business research
85. Outline the key steps in conducting research
86. Identify the advantages of using a questionnaire as a method of data collection
87. a)Examine the importance of research in business growth and development
b)Assess the methods of data collection in business research
88. As an entrepreneur, you are planning to initiate a new product ‘made in Rwanda
sandals’ in the market. This is an activity that require deep and serious research so as
you produce a product that will be appreciated by the buyer. You particularly want to
find out the following;
- Age and gender of respondents
- Monthly incomes of respondents
- Characteristic of a good sandal
- Size of the market
- Appropriate price
89. Design a questionnaire to be used while collecting data.
90. What do you understand by the following terms?
a) Franchise
b) Business growth
c) Horizontal merging of firms
91. Your company wants to expand their production and sales in the next two years. Explain
the internal and external business growth strategies they can use
92. Identify the indicators of business growth
93. Analyse the factors that hinder business growth and development in your community
94. Determine the advantages of using a franchise while doing your business operations
95. Joint venture is a strategic alliance between two or more entities to engage in a specific
project. Discuss the advantages of such an arrangement
96. Look around in your community and find a feasible project that you may start.

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a) Which type of technology would you use in your business?

b) Why would you use this type of technology?
c) How would you define the term technology as used in business?
97. Information and communications technology has changed the way businesses do things.
Summarize the role of using ICT in business operations.
98. Identify the limitations of using ICT in business activities
99. A local business in Gakenke District uses intermediate technology to process their maize
and sell maize flour. Examine the role of using intermediate technology in their business
100. Justify why the government of Rwanda is encouraging business to use capital intensive
technology
101. ICT contributes to employment opportunities to many people in Rwanda. Discuss some
of the businesses that can be started basing on ICT
a) Define the term Team building
b) List the characteristics of a good team
102. Differentiate between;
a) Vertical and horizontal communication
b) Internal and external communication
c) Encoding and Decoding
103. Assume you are the head prefect at your school. You intend to send a message to all
prefects in your school inviting them to a meeting with the head teacher through email.
Illustrate the communication process through which the message can reach the
intended parties
104. Analyse the features of effective communication
105. Explain the factors considered when choosing a communication channel to use in the
organization
106. Your boss has organised a one day departmental training workshop. Design a memo
inviting all departmental employees for the workshop.
107. What do you understand by the following terms?
a) Job analysis
b) Job advertising
c) Recruitment
108. a)In a business organization, there are different departments each playing a unique role.
Explain the principal departments of a business organization
b)Identify the main functions of a human resource department
109. a)Differentiate job description from job specification
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b)Assess the factors considered when selecting and purchasing equipment for an office
110. As a purchasing manager of AROLIM SEEDS (R) Ltd, prepare a local Purchase Order to
be sent to SANGANO SUPPLIERS Ltd for the necessary raw materials to use in the
business.
111. What do you understand by the term money?
112. Outline the specific advantages of personal financial planning.
113. Many people don’t arrive to save their money for future use. Outline obstacles/barriers
to saving.
114. Explain the financial planning process
115. Explain ways of debts management for every person.
116. Discuss the different steps in budgeting
117. a)Define the term business transaction?
b)Differentiate the types of business transactions
c)Outline the steps for transaction analysis
118. Explain different types of discounts offered by businesses.
119. When preparing the journals or ledgers, errors may occur. Determine errors detected by
the trial balance.
120. Desire had the following transactions in the month of January 2013
1st Jan cash at hand 200,000Frw Cash at bank 1,700,000Frw
5th Jan received a Cheque from peter 300,000Frw
7th Jan cash purchases 300,000Frw
10th Jan cash sales 400,000Frw 11th Jan paid Musoni by cheques 190,000Frw
15th Jan bought stationery for use in cash 40,000Frw Paid rent by Cheque 200,000Frw
20th Jan received payment by Cheque from Aaron 600,000Frw 30th Jan paid Gasirabo
by Cheque 100,000Frw.
Required:
Prepare Desire’s two columns cashbook with the above transactions and dully balance it.
121. What do you mean by:

a) A right
b) A responsibility

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122. Explain any 5 responsibilities of the workers in the business

123. Outline the rights of employees
124. As a director of ZAMUKA business organization, identify your various responsibilities
toward workers.
125. Explain different rights of the employer
126. The universal human rights are basic rights and fundamental freedoms to which all
human beings are entitled. Discuss any 5 human rights.
127. a)Define the term leadership
b)Classify the different types of power in leadership
128. a)Team working is vital in a given business to achieve target. Identify strategies for
developing team work
b)Differentiate between team and teamwork
c)Explain the qualities of an effective leader.
129. Problems are at the center of what many people do at work every day. Discuss the steps
of problem solving.
130. a)What do you mean by conformity assessment
b)Outline the objectives of the conformity assessment procedure
c)Identify various institutions involved in inspection activities in Rwanda
d)Analyse major activities covered by conformity assessment
131. a)Explain the importance of conformity assessment for health and safety of consumer,
fair trade and market access.
b)Discuss the importance of accreditation for certification services and testing
laboratories
a) Business environment
b) Economic environment
c) External Business Environment
133. As an aspiring entrepreneur who wants to start up a business, demonstrate ways
through which businesses can give back to the community
134. Sometimes business activities negatively affect the environment and society. Identify the
strategies that can be used to reduce the negative effects of entrepreneurial activities on
the environment.
135. Your community has undergone socio-economic transformation over the last years.
Explain how entrepreneurship has contributed to Socio-economic development of your
community.
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136. Discuss the indicators of socio-economic development of any society

137. a)What do you understand by the term Environmental Impact Assessment?
b)EIA was adopted to effectively manage environmental challenges in the country. What
are some of these challenges?
c)There are different stake holders involved in the EIA Process. Summarize the roles of
any two (2) stakeholders that are part of the EIA process in Rwanda.
d)For EIA report to be finally submitted to the authorities (REMA offices of a given
district), there is a process that developers have to go through. Given your knowledge
and background about EIA, identify the process one should go through while preparing
the EIA report
e)Analyse the benefits of EIA in project development
138. Given a project that you want to start, determine the components you would include in
your EIA Report
139. As a student of entrepreneurship, you have been approached by MUTESI Chantel who is
planning to start a project of brick laying in her society. Advise her on the measures she
should take to reduce the likely environmental challenges caused by her project
140. a)What is meant by customs
b)What are the objectives of the customs service department?
c)Mention some customs exempted commodities in Rwanda
d)Identify stakeholders involved in the process of customs declaration.
e)Briefly explain the different types of customs declaration
141. a)Evaluate some of the challenges faced by the customs department while fulfilling their
mandate
b)Discuss the various documents/forms that are used in customs declaration.
142. a)What do you understand by financial markets?
b)Describe the instruments of capital market
c)Identify different types of financial markets operating in Rwanda
143. Financial markets link those who need capital to those who have it through various
instruments. Explain the functions of financial markets in Rwanda’s Economic system
b)Analyse the different capital market participants you know
144. Capital Market Authority in Rwanda plays an important role in financial stability and the
economic development of the country. Discuss the role played by Capital Market
Authority (CMA)
145. Giving examples, Define the following terms
a) Intangible assets
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b) Current liabilities
c) Current assets
146. Classify the following items in assets and liabilities
Accrued salaries Creditors
Accrued incomes Debtors
Outstanding rent Short term loan
Prepaid electricity Motor vehicle
Stock at close
147. For the year ended December 31, 2021, your company earned revenue of $744,200 by
selling goods costing $503,890. Calculate the gross margin profit ratio of the company.
148. Suppose that your social medial company just went public last year, resulting in a total
investment of 100,000,000 frw. Your company’s net income for the year was 10,000,000
frw. Calculate the Return on Equity of the company.
149. Distinguish between gross profit and Net profit
150. Explain why it is necessary for an entrepreneur to make a cash flow statement
151. The following shows RUBAYIZA ENTERPRISES transactions for the months of July and
August 2007
Particulars JULY 2007 AUGUST 2007
RWF RWF
Purchase of Assets 2,000,000 2,500,000
Payment of wages 90,000 1,000,000
Receipts from sales 1,000,000 1,500,000
Loan 3,000,000 2,000,000
Repayment of loan installment 500,000 450,000
Payment of rent 60,000 70,000
Purchase of raw materials 1,000,000 1,500,000
Sale of refreshments 2,650,000 3,000,000
Tax 100,000 120,000
Debtors 300,000 350,000

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Creditors 160,000 150,000
Acquisition of furniture 180,000 170,000
Grants from friends 20,000 140,000
Disco dance collections 4,000,000 4,500,000
Sale of old furniture 120,000 100,000
Rates 150,000 160,000
Transport expenses 100,000 90,000
Installation of new machinery 250,000 200,000
Cinema collections 160,000 200,000
Electricity bills 70,000 72,000
Required to:
a) Prepare RUBAYIZA ENTERPRISES’ cash flow statement for the two months.
b) State the cash position of RUBAYIZA ENTERPRISES for the two months.
c) Suggest measures which should be taken by RUBAYIZA ENTERPRISES to avoid a deficit
in the cash flow.
152. a)What do you understand by the term procurement?
b) You are an entrepreneur, wishing to start a new clinic in your location. Summarize
the procurement process for building a clinic in your sector
c)Differentiate between Perpetual and Periodic Inventories
d)Explain the importance of inventory control in an organization
153. Papeterie Umusanzu is a company selling office materials. One of the items stocked is
reams of papers. The following data is available:
January 2021: Opening stock of 40 reams of papers at a cost of 3,000 Frw each
February 2021: Bought 20 reams of papers at a cost of 3,600 Frw each
March 2021: Sold 36 reams of papers
April 2021: Bought 20 reams of papers at a cost of 3,750 Frw each
May 2021: Sold 25 reams of papers
Required:
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Prepare a stock card would using FIFO, LIFO and AVCO method.
154. Imagine you have just finished senior six and you have a business idea of starting a
poultry farm project in your village. Why would you write a business plan for your
project?
b)State the users of a business plan
155. a)A business is not something static. The business can change over time as the business
develops, and any particular business may have multiple business plans as its objectives
change. As a person who has studied business planning, identify the ideal time to
prepare a business plan
b)Examine the types of business plans
c)Briefly explain the components of a business plan
156. a)You intend to start a medium-scale factory manufacturing biscuit in Rwanda. Prepare
a marketing plan of your project
b)What do you understand by the term “Action plan”?
c)Discuss the sources of capital for the business
d)Examine the importance of a sales plan in the business
e)Analyse the components of a financial forecast/ cash flow plan
157. Evaluate the factors considered when deciding the ideal location of the business
158. Discuss the strategies to minimize risk in a business
159. a)What do you understand by the term Metrology in business?
b)Outline the types of metrology
c)Identify any three (3) reasons why should firms observe quality during the production
160. a)Differentiate between quality assurance and quality management
b)Explain the importance of using accurate measurements in business
161. State the sources of job information
162. Outline any four (4) personal qualities that help you to manage time well
163. Identify the main elements of a Curriculum Vitae
164. a)As an aspiring entrepreneur, Analyse the appropriate workplace behaviours and
attitudes you will re-inforce in your business
b)Recommend to your classmates the tips of writing a CV
165. a)Define the term work place hazard
b)Outline any five (5) situations that can be taken as work place emergencies
c)Identify the types of hazards that can be found at a work place
d)Analyse the different methods of making a work place safer.

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166. Elaborate different healthy habits that can improve your physical, mental, and emotional
health
167. Discuss the safety precautions that can be taken during a fire outbreak at your
Workplace
168. a) Joana is a student and wants to start a small business project in her holidays.
Imagine a situation where she comes to you for advice.
b) How would you advise her to apply the five stages of the entrepreneurship process to
start a successful business?
c) Explain with clear examples about any four skills she can use to run her business
successfully.
218. Before investing money, an entrepreneur has to define what the business is or what it
intends to be or achieve over time. Clarify the purpose and direction of the business
project that you intend to launch by setting a goal and make an action plan for it.
219. a) Mr.GAKIRE owns two coasters capable of transporting 36 passengers each. They
operate between Kigali and Kayonza, taking passengers from Remera main taxi park and
Kayonza modern taxi park. In Gasabo, the fees in public parking are fixed at Frw 3,000
while in kayonza fees are fixed at Frw 2,000 per day for this category of buses.
Required: calculate total public parking fees to be paid by Gakire on daily basis.
b) Distinguish between direct tax and indirect tax.
c) Explain the advantages of indirect taxes?
d)write short notes on the following:
i) Taxable capacity
ii) Taxable income
e) Discuss the rights and obligations of a tax payer
f) AKAGERA BUSINESS GROUP has made a list of its employees who must pay a
professional income tax, indicating their monthly income:
AKALIZA gets Rwf250,000
AKIMANA gets Rwf 360,000

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ANGELINA gets Rwf100,000
ASSOUMPTA gets Rwf24,000
Required: Calculate;
i) The amount of income tax to be deducted on the salary of each employee

ii) The total amount of tax on all employees
220. A company’s petty cashier is given an imprest of rwf 1,200,000 for a period of two
weeks. The expenditures were as follows:
2nd bought 2 reams of duplicating papers at 60,000 rwf
3rd paid transport to town 40,000 “
4th bought tea accompaniments for board members 100,000
5th bought 2 dozens of stencils each dozen at 120,000
6th paid compound cleaner’s wages 60,000
8th bought 10 brooms for compound cleaning each at 10,000
8th paid for stamps and postage 50,000
10th paid money for special hire 120,000
10th bought 3 dozens of Omo for cleaners each at 12,000
12th bought ink for duplicating machine 150,000
13th bought soda for members of staff 120,000
Required to prepare:
i) A petty cash book on imprest system, with analysis columns for stationary,
traveling, cleaning and general expenses.
ii) Balance the petty cash book and make relevant entries in the ledgers.
221. Given that EL-Shadhai Ltd carried out the following credit transactions for the month of
July 2002

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July 4th 2002 Sold to Byumba young farmers, 8 wheelbarrows at rwf 45,000 each
on invoice No. 01
July 10th 2002 Sold to Remera farm suppliers, 10 spraying pumps at rwf 65,000
each, 15 weighing scales at rwf 15,000 each on invoice No. 02
July 15th 2002 Sold to Masaka farmers shop, 10 garden rakes at rwf 5,000 each, 20
hoes at rwf 4,000 each on invoice No. 03
July 24th 2002 Sold to Habimana suppliers, 10 watering cans at rwf 14,000 each, 5
wheel barrows at rwf 30,000 each on invoice No. 04
July 25th 2002 Byumba young farmers returned 5 wheelbarrows due to damages
July 26th 2002 Sold to Mbabazi farmers shop, 30 pangas at rwf 1,200 each, invoice
No. 05
July 28th 2002 Remera farm suppliers returned 3 weighing scales due to damages
i) Enter the above transactions in a sales day book and returns inwards journal
ii) Open the relevant accounts
222. Suppose you deposit Rwf 500,000 in Equity Bank for 5 years at the annual interest rate
of 12%. Find the amount that your investment will grow after 5 years if interest is
compounded semi-annually.
223. Gatabazi is about to start a juice processing factory but he is worried about the strong
competition that is on the market.
i) Advise him on which techniques he would use to get the needed information?
ii) Explain any four types of competitors that are found on the market place
224. Given the following information about JOBALO Enterprises LTD for the year ending
2002:
Sales £ 7,000,000
Purchases £ 4,800,000
Closing stock £ 2,100,000
Expenses £ 1,800,000
Opening stock £ 2,300,000

Page 18
Calculate the:
i) Gross profit ratio

ii) Net profit
(Hint: gross profit ratio = gross profit x 100

Net sales
225. a) Differentiate between a cash discount and a trade discount.
b) Given that a purchase invoice shows 5 items of Rwf 8,000,000 @, less trade discount
of 25% and cash discount of 10%. Calculate the amount to be paid for the items.
226. Your company, AB ENTERPRISES Ltd, has acquired a loan of Rwf 2,000,000 at interest
rate of 4% per month payable in eight equal monthly installments. Calculate the simple
interest, the total amount you are to pay back and the amount payable in each month.
227. Below is a trial balance of INGABIRE as at 31/12/2005
INGABIRE’S TRIAL BALANCE AS AT 31/12/05
Particulars Debit (Rwf) Credit (Rwf)
Stock (1st /01/2005) 130,000
Purchases 2,000,000
Carriage inwards 5,000
Sales 2,850,000
Returns inwards / Returns outwards 50,000 55,000
Salaries and wages 420,000
Transport 164,000
Electricity 5,500
Insurance 16,000
Repairs for office premises 3,500
Rent and rates 14,700

Page 19
Entertainment 2,900
Discount allowed / Discount received 8,000 12,100
Rent received 65,000
Carriage out wards 2,000
General expenses 5,300
Motor vehicle 250,000
Fixtures and fittings 105,000
Debtors 450,000
Bank 650,000
Cash 50,000
Capital 600,000
Creditors 367,200
7 years loan from bank 340,000
Bank overdraft 42,600
Total 4,331,900 4,331,900
Additional information:
Pre-paid Electricity 500
Insurance unpaid 1900
Advance on rent and rates 700
Depreciation on motor vehicle 24%
Depreciation on fixtures and fittings 24%
Closing stock 240,000

Page 20
Required to prepare:
a) Ingabire’s Trading, Profit and loss account for the period ended 31/12/05
b) The balance sheet as at that date
c) Compute:
i) Average stock
ii) Rate of stock turn
iii) Quick asset ratio
228. The following was recorded in book of Pamella a trade merchant.
May 2, Received 500 units at 20 rwf each
May8, Received 300 units at 22 rwf each
May10, Issued 400 units
May15, Issued 200 units
May 20, Received 600 units at 25rwf each
May 25, Issued 300 units
May27, Received 200 units at 26 rwf each
May 30, Issued 100 units
You are required to make a valuation ; By using the following methods. FIFO METHOD,
LIFO METHOD and WAC Method.
229. Explain the process of recruiting employees in a business.

b) You have just acquired a business loan from bank of Kigali worth 800,000Rwf. the
repayment period is five (5) years at an annual interest rate of 15%.You have been
allowed to pay in 20 (twenty) equal installments over the loan repayment period.
Prepare a loan repayment schedule to ensure effective loan management.

Page 21

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ADVANCED LEVEL [A GUIDE TO PASSING ENTREPRENEURSHIP EDUCATION]

The Society of Jesus in Rwanda

(ST.IGNATIUS HIGH SCHOOL) Tel : +250785526813

c) Outline the sources of career guidance

d)Identify the steps in market survey/Research

Year project A PROJECT B

(ST.IGNATIUS HIGH SCHOOL) Tel : +250785526813

65. Describe the different types of business transactions

Cash at hand 105,000 frw

(ST.IGNATIUS HIGH SCHOOL) Tel : +250785526813

a) What do you understand by the term contract?

From the decisions Ruth had, which of them is:

(ST.IGNATIUS HIGH SCHOOL) Tel : +250785526813

a) Which type of technology would you use in your business?

1st Jan cash at hand 200,000Frw Cash at bank 1,700,000Frw

5th Jan received a Cheque from peter 300,000Frw

7th Jan cash purchases 300,000Frw

121. What do you mean by:

(ST.IGNATIUS HIGH SCHOOL) Tel : +250785526813

122. Explain any 5 responsibilities of the workers in the business

136. Discuss the indicators of socio-economic development of any society

Accrued salaries Creditors

Accrued incomes Debtors

Outstanding rent Short term loan

Prepaid electricity Motor vehicle

Particulars JULY 2007 AUGUST 2007

Purchase of Assets 2,000,000 2,500,000

Payment of wages 90,000 1,000,000

Receipts from sales 1,000,000 1,500,000

Loan 3,000,000 2,000,000

Repayment of loan installment 500,000 450,000

Payment of rent 60,000 70,000

Purchase of raw materials 1,000,000 1,500,000

Sale of refreshments 2,650,000 3,000,000

Tax 100,000 120,000

Debtors 300,000 350,000

(ST.IGNATIUS HIGH SCHOOL) Tel : +250785526813

Creditors 160,000 150,000

Acquisition of furniture 180,000 170,000

Grants from friends 20,000 140,000

Disco dance collections 4,000,000 4,500,000

Sale of old furniture 120,000 100,000

Rates 150,000 160,000

Transport expenses 100,000 90,000

Installation of new machinery 250,000 200,000

Cinema collections 160,000 200,000

Electricity bills 70,000 72,000

February 2021: Bought 20 reams of papers at a cost of 3,600 Frw each

March 2021: Sold 36 reams of papers

April 2021: Bought 20 reams of papers at a cost of 3,750 Frw each

May 2021: Sold 25 reams of papers

(ST.IGNATIUS HIGH SCHOOL) Tel : +250785526813

b) Distinguish between direct tax and indirect tax.

c) Explain the advantages of indirect taxes?

d)write short notes on the following:

ii) Taxable income

e) Discuss the rights and obligations of a tax payer

AKALIZA gets Rwf250,000

AKIMANA gets Rwf 360,000