Answer ALL questions Correctly

Question 2 Gabi, Feefe and Pima are partners whose partnership is called GFP Dealers and its business is printing. One of their customers is Jokuna, who transacts business of printed materials on behalf of Ndeku. On three occasions. orders made by Ndeku's customers were very bulky, which necessitated hiring of pick-up trucks to make deliveries. Ndeku did not have money for those three occasions, so he requested Jokuna to use his own money. which would be refunded after the customers had paid for the deliveries. So far. only two deliveries have been paid for and Jokuna has recovered his money for the two deliveries. The third delivery is yet to be paid for. Meanwhile, GFP Dealers which prints most of the materials that Ndeku's customers order for is going through a tough time. Feefe has been discovered to be using partnership machinery to print materials for his own side business. Feefe also admitted a new partner called Nteefu in GFP Dealers, without seeking the consent of Gabi and Pima. who thought that Nteefu was just temporarily helping Out with GFP Dealers' w0rk. When Gabi and Pima confronted Feefe to explain his actions, Feefe only suggested that they should just agree to dissolve the partnership and forget about it. Gabi who had contributed more start-up capital is of the view that it the partnership is to be dissolved, he should receive the residue after all partnership obligations have been met. 0n the other hand, Pima who had advanced a loan to the partnership insists that he should be the one to be paid first, then whatever will be left should be divided equally among the partners. Word has gone round that GFP Dealers is facing problems. Ndeku has now communicated to Jokuna the cancellation of all transactions on his behalf and the outstanding delivery fees for the third delivery. He, in fact, has now demanded for all property. documents and any other things related to the business transactions Jokuna was doing on his behalf. Jokuna is insisting that Ndeku cannot abruptly revoke their relationship. Required: Raise and resolve all issues involved. (20 marks) Question 3 Juma, a truck driver. had a contract with Safari Ltd, under which he was to drive his truck only on company business. to obey the instructions of the foreman and to wear company uniform. Juma could also employ a substitute driver. He was paid on the basis of mileage and Quantity of goods delivered. He met the expenses for repair, maintenance, insurance and his personal tax liability. It has now transpired that National Social Security Fund (NSSF) has categorised Juma as an employee of the company demanding for his NSSF contributions. The company has obiected to this. Meanwhile, Mrs. Juma who is employed as a stores assistant is paid Shs 120,000 per month while her male workmates, doing the same work, are each paid Shs 300,000 per month. When she raised this matter with management, she was told that she could not get the same salary as men. She is not happy with this Explanation. The articles of association of Safari Ltd were altered to enable the maiority shareholders purchase the shares of the minority at a fair value. The intention was to invoke the clause against minority members who were refusing to iniect further capital into the company. The minority members are objecting to the alteration. Required: Identify the issues involved and advise the parties accordingly. (20 marks) Question 4 DADUNDA Limited is operating a business of shoe making in Kampala. It has fifteen shareholders with Komatu, Maiso and Kamaino as maiority shareholders. Their business has been booming for a long time. Recently Komatu opened up a shop in Kikuubo dealing in buying and selling of men's garments. The business required a lot of capital. Komatu was forced to sell all the properties he had to sustain it. He even sold all his shares in DADUN DA Limited. 0n the other hand, Maiso used to import motor cycle spare parts from Dubai. His business of spare parts was flourishing and he used the profits to construct a hotel in Kampala. In October 2017, misfortune befell Maiso. The spare parts in transit from Dubai caught fire. He lost a substantial sum of money in that inferno. He had been buying most of his spare parts on credit from Dubai shops. The Dubai suppliers Question 2 (a) Explain (i) five factors that determine the supply of labor in an economy. (5 marks) (ii) the methods that are being used to reduce wage differentials in Uganda. (5 marks) (b) (i) Discuss the disadvantages of a Laissez faire economy. (5 marks) (ii) Explain the ethical issues that arise from the responsibility of business to society. (5 marks) (Total 20 marks) Question 3 (a) (i) Account for the narrow tax base in Uganda. (6 marks) (ii) Explain the disadvantages of imposing taxes in an economy. (6 marks) (b) (i) Discuss the reasons why government influences the location of an industry in an economy. (4 marks) (ii) Explain the advantages of a monopolistic market structure in an economy. (4 marks) (Total 20 marks) Question 4 (a) (i) Explain the advantages of the price mechanism in a free enterprise economy. (4 marks) (ii) Discuss the factors which determine the elasticity of demand for a commodity. (6 marks) (b) Explain the: (i) obiectives of economic development in Uganda. (4 marks) (ii) the factors which hinder technological transfer and technological development in developing countries. (6 marks) (Total 20 marks) learnt of the unfortunate incident that befell Maiso but they are demanding for their money. Maiso had I10 option but to 38" his hDIEI in Kampala to clear to debts. Unfortunately. the [JI'OCBEdS were not sufficient to clear all his Obligations and he was thereafter declared bankrupt. As a result. the other shareholders of DADUNDA Limited did not allow him to benefit from his shares. Recently, the directors of the company declared dividends to be shared among the shareholders. Some shareholders were of the view that Maiso and Komatu were not entitled to dividends. Maiso and Komatu are fighting hard to have a share of the dividends. When Kamaino heard about the fate of Maiso and Komatu. his blood pressure rose culminating into a heart attack that took his life. Subsequently. Mrs. Kamaino. the administrator of Kamaino's estate lodged a claim for Kamaino's dividends. However, the other shareholders rejected the claim. Her further appeal to be registered as a shareholder in replacement of Kamaino was also reiected. Required Identify issues involved and resolve them. (20 marks) Question 5 (a) Define a contract and briefly explain the different forms in which a contract can be made. (10 marks) (b) Explain the circumatances that amount to exceptions to the general rule of privlty of contract. (10 marks) (Total 20 marks) Question 6 (a) Distinguish between criminal and civil law. (8 marks) (b) Explain the general rules regarding priority of payment of debenture holders. (8 marks) (c) Outline the duties of a company secretary. (4 marks) (Total 20 marks) Question 5 (a) (b) (i) Using an illustration, show how income inequality is measured using a Lorenz curve. (5 marks) (ii) Explain the factors that limit the level of savings in an economy. (5 Marks) (i) Explain the inapplicability of the law of comparative advantage in Uganda. (6 marks) (ii) Discuss the conditions under which economic integration operates successfully. (4 marks) (Total 20 marks) Question 6 (a) (b) (C) (d) Explain the causes of hyperinflation in an economy. (4 marks) The table below shows the changes in prices (in Shs) of different items at a shop in Rweibare village. Study it and answerthe question that follow. Item Price in base Base ear 2015 ear 2017 index Posho 3,000 3,000 10 Beans 2,600 2,800 10 4 000 Petrol im- Su ! ar 4,800 Calculate the average weighted price index for the given data. (6 marks) Explain the applicability of the quantity theory of money in the determination of changes in the value of money. (6 marks) Discuss the factors that limit the process of credit creation by the financial institutions in Uganda. (4 marks) (Total 20 marks)