Question 1 (a) Distinguish between induced entrepreneur and motivated entrepreneur. (4marks) (b) Explain the benefits enjoyed by entrepreneurs as a result of insuring their businesses. (8marks) (c) Explain the factors considered when assessing risks in a business venture. Question 2 Kape Animal Feeds (KAF) Ltd is a small and medium size enterprise in Nansana Municipality dealing in animal feeds and ingredients for making animal feeds like maize brand, mukene and shells. It also provides consultancy and training services in managing farms. Over the years it has grown to become an exporter of animal feeds to countries like South Sudan and Rwanda and it has 6 branches countrywide. KAF Ltd was established in 2011 by Mr. Kapere after incurring heavy losses on his farm due to fake animal feeds. KAF Ltd employs over 120 permanent workers and other casual workers on part time basis. KAF Ltd operates a good reward system for best performers, for example, it awards bonuses for exceptional performance, recognises best performing staff in every branch every end of year. This has motivated workers to work hard hence low labour turnover rate in the company compared to their competitors. KAF Ltd buys maize from the farmers in thecommunity on credit and pays them promptly on the agreed date. The farmers are very happy with the company since the competitors were cheating them. KAF Ltd understands the importance of business ethics and has overtime been known for making high quality animal feeds and maintaining a good public image. At the end of 2018,KAF Ltd introduced a new product on the market "Layers Mash" which is very good for layers, it increases egg production. KAF Ltds is still figuring out how to protect their new invention. Like any other small and medium enterprise (SME), KAF Ltd contributes to economic development of the community and country at large. KAF Ltd provides employment and trains local manpower among others. This has made KAF Ltd the best trade name in the animal feeds industry. However, of recent, the feeds market has been hit with poor quality feeds from suppliers and competitor's that lack business ethics. This has negatively affectedthe farmers, especially those that were lured by the low prices.

A community meeting of farmers has been convened to discuss the issue of fake feeds. Required (a) Explain to the community of Nansana Municipality the: (i) meaning of the term "business ethics". (ii) importance of applying business ethicsin business. (2 marks) (6marks) (b) Describe the role of KAF Ltd, as a small and medium enterprise in the economic development of Uganda. (8marks) (c) AdviseKAF Ltd the on ways through which it can protect the intellectual property of their business. (4marks) (Total 20marks) Question 3 Blessed Visionaries (BV) Ltd deals in steel and aluminium products. It was established in 2007 by Mr. Kwagala, a former banker who decided to quit paid employment to establish a metal fabrication business. Mr. Kwagala hired a business consultant to prepare a business plan. The objectives in the business plan were formulated on the basis of the 'SMART' acronym. At first, BV Ltd was the only supplier of metal products in the area and this gave the company good returns. Their vision was to satisfy the domestic market and specialise in limited steel products like doors and windows. The raw materials used were obtained from local manufactures but as the business expanded, they started importing materials from China and India. Due to the nature of their specialization there was no room for creativity. The companycapitalised on their expertise and experience and did not want to experiment with new ideas and new products. The period after 2010 saw rapid increase in the demand for construction materials and this boostedBV Ltd.'s business.However, the good business could not last long asthere was an influx of new entrants in the market causing stiff competition. Thanks to the timely intervention of Mr. Jason, the owner of Jazon Ltd, along time supplier of BV Ltdwho proposed forming an international joint venture between Jazon Ltd and BV Ltd since business was going down.

In Rwanda, Mr. Jason's home country, there is a high demand formetal and aluminium products. Mr. Jason asserted that a joint venture would help them enter into the new market and also share the costs and risks of the project. Within two years, BV Ltd had been transformed into a modern factory for steel and aluminium products. Research and creativity hadbecome part and parcel of BV Ltd operations. The new idea to expand the product portfolio unveiled more chances for BV Ltd to expand its operations to other countries. However, the differences in culture and objectives of the businesses in the different countries among othersbecame challenging for the joint venture performance. Required: (a) Explain to the management of BV Ltd the: (i) reasons why companies form joint ventures. (ii) draw backs of establishing an international joint venture. (6marks) Define the term "creativity". from. (b) (i) (ii) Explain the limitations to creativity that BV Ltd could have suffered (c) Explain to Mr. Kwagala the characteristics of objectives according to "SMART" acronym. Question 4

Beautiful Looks (BL) is a unisex saloon located in the city centre of Kampala. It was established in2013 by Jessica and Ethan after attending a three months' non-formal training skills programme under the Ministry of Education and Sports. The saloon provides a variety of services ranging from haircuts, treatment, retouch, pedicure and manicure, facials and other services. It also deals in selling a range of hair related products like braids, weaves, tonners, shampoo, moisturizers, fragrance, cleansers and many others. BL saloon is operated as a partnership business. During the training period, Jessica and Ethan were advised to make an Opportunity Assessment Plan before starting any business venture. Opportunity Assessment Plan is shorter than a business plan and focuses on the opportunity not the venture. It has no computer-based spreadsheet and is thebasis for making the decision to either act on an opportunity or wait until another better opportunity comes along.

With the help of a business consultant, Jessica and Ethan prepared four sections of the opportunity assessment plan. The duo was also advised to prepare a Partnership Deed which would guide them on how to conduct the business and resolve conflicts among partners. They were also cautioned to be ethically responsible to the business customers by providing the right quality and quantity of the products and be honest in all their dealings with customers and other stakeholders. Jessica and Ethan took up the pieces of advice from the business consultant and have registered tremendous growth and expansion of their business. They have opened three more branches and employ 20 skilled employees. The new employees are inducted and trained in the different processes of the service portfolio that BL renders. Required: Explain to Jessica and Ethan the: Question 5 (a) (b) (c) Describe the features of business ethics. (7 marks) Explain the factors that hinder the development of effective business plans. (7marks) Discuss the sources of finance for sole proprietorship. (6 marks) (Total 20marks) Question 6 (a Explain the factors that hinder motivation of employees in a business enterprise. (6 marks)

b)Discuss the reasons why people choose self- employment. (8 marks)

c)Explain the characteristics of a good personnel policy. (6 marks) i)meaning of the term "partnership deed". importance of having a partnership deed in the business.

(ii) Describe the sections of the Opportunity Assessment Plan that Define the term "Opportunity Assessment Plan". Jessica and Ethan prepared. Explain how other business owners can be ethically responsible to the customers.