TERMINAL EXAMINATION

BUSINESS STUDIES

TIME: 2:30 Hrs MAY 2025

INSTRUCTIONS

1. This paper consists of Section A, B and C with a total of ten (10) questions

2. Answer Questions from all questions.

3. Section A and C carries fifteen (15) marks each, while section B carries seventy (70) marks

4. All answers should be written in the space provided on this questions paper.

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 SECTION A (15 Marks)
1. For each of the items (i) -(x), choose the correct answer from among the given alternatives and write its
letter in the box provided.

i) Education provided by teachers, healthcare from doctors, and banking services offered by
financial institutions are good examples of:
A. Economic goods C. Opportunity cost
B. Free goods D. Service

ii) A student writes a business advertisement to attract customers to a new shop in town. The
advertisement is written in both English and Kiswahili to reach more people. What skill is the
student applying?
A. Science knowledge C. Translation and communication skills
B. Drawing and design D. Cooking skills

iii) Which of the following traits is demonstrated when an entrepreneur adjusts their business to meet
new market demands?
A. Patience C. Greed
B. Flexibility D. Laziness

iv) Hamza introduced a mobile payment system in his small retail shop before anyone else in his
area, making transactions faster and safer. Which characteristic is Hamza showing?
A. Flexibility C. Innovativeness
B. Curiosity D. Commitment

v) Jane has TZS 10,000. She can either buy a textbook for school or a ticket to a music concert. She
chooses to buy the textbook. What is the opportunity cost in Jane’s decision?
A. The concert she missed C. The textbook she bought
B. The value of the textbook in the future D. The money she spent

vi) Alphonse, a shopkeeper does not understand how Business Studies and Mathematics work
together to help him in doing business? What could be the relationship between the two disciples
in helping him?
A. Business Studies teaches the shopkeeper about customer service
B. Mathematics helps the shopkeeper calculate sales, profit, and costs in business
C. Mathematics teaches the shopkeeper how to sell products
D. Business Studies helps the shopkeeper decide what to sell

vii) Joseph left his well-paying government job to start a fish-farming business despite uncertain
profits. This decision is best explained by which theory?
A. Innovation Theory C. Need Achievement Theory
B. Risk-Bearing Theory D. Status Withdrawal Theory

viii) Which of the following scenarios best represents the concept of entrepreneurship?
A. A student memorizing business terms
B. A teacher lecturing about entrepreneurship
C. A young man who starts and runs a mobile car wash service

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 D. A customer buying products from a shop
ix) Neema borrowed money and started a cosmetics shop, knowing there were already five in her
area. Her willingness to face possible failure shows her:
A. Ignorance C. Risk-taking spirit
B. Dependence D. Carelessness

x) Following family rejection, Musa launched a successful transport business and quickly rose to
fame in his community. His motivation aligns most closely with:
A. Status Withdrawal Theory C. Need Achievement Theory
B. Innovation Theory D. Risk-Bearing Theory

2. Match the items from List A with those in those in List B by writing the letter of a correct option in List
B that corresponds to an items in List A

LIST A LIST B
i) An organization engaged in producing or buying and selling
goods and services with the aim of earning profit and A. Capital
satisfying customers’ needs B. Land
ii) The natural resources used in production. C. Scarcity
iii) The human effort, both physical and mental, used to produce D. Opportunity cost
goods and services. E. Production
iv) Man-made resources like machinery and tools used in F. Entrepreneurship
production. G. Labor
v) The ability to organize and manage resources to create a H. Business
business.

Answers

LIST A i ii iii iv v
LIST B

SECTION B (70 Marks)

Answer All Questions

3. During a Business Studies lesson, students are learning about the types of goods based on how long they
last. The teacher gives them a list of items and asks them to classify each as a Durable Good or a
Perishable Good
Instruction:
Classify each of the following goods as either a Durable Good or a Perishable Good.

S/No. List of Goods Classification

i) Fresh fish
ii) Iron sheets for roofing
iii) Loaf of bread

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 iv) School desk
v) Fresh vegitables
vi) Wooden table
vii) Tomatoes
viii) Cement
ix) Computer
x Fresh milk

4. In Arusha town, Aunty Neema owns a small tailoring shop. She buys fabric, thread, and buttons from
local suppliers. She uses sewing machines to design and stitch school uniforms. After completing the
uniforms, she delivers them to various schools using a hired van. Parents come to the schools, pay for
the uniforms, and take them home for their children to wear.

Required: From the scenario above, identify the four business processes and give one example of each
based on Aunty Neema’s tailoring business.

i) ______________________________________________________________________________
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ii) ______________________________________________________________________________
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iii) ______________________________________________________________________________
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iv) ______________________________________________________________________________
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5. From the following entrepreneurs, you are required to identify the type of entrepreneurship (Business,
Corporate, or Social Entrepreneurship) demonstrated by their character or activities.

S/N. ENTREPRENEURSHIP ACTIVITIES CLASSIFICATION

Juma started a small dairy farm to supply milk
i) to his neighborhood and make profits to
support his family.
Amina works in a telecommunications
ii) company. She developed a system that
improved customer service by reducing call
wait times.
After realizing that many girls in rural areas
iii) miss school due to lack of sanitary pads,
Neema founded an organization that

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 distributes reusable pads for free.
Joseph opened a car repair garage with the
iv) aim of earning profits while also training
youth in mechanical skills.
In a large beverage company, Michael led a
v) team that developed a new eco-friendly
packaging solution.
Grace created a non-profit that offers free
vi) digital literacy training to women in
underprivileged communities.
David runs a grocery store in his town. He
vii) buys produce from local farmers and sells it
for a profit.
Within a multinational electronics firm, Sarah
viii) invented a smart home feature that boosted the
company’s product sales.
Hamisi founded a community recycling
ix) program that reduces pollution and provides
employment to street youth.
Fatma noticed that many elderly people in her
town lacked proper healthcare access. She
x) established a mobile clinic that offers free
check-ups and affordable medicine to the
elderly, especially those in remote areas.

6. Zawadi is a 19-year-old who recently completed her secondary education. Instead of waiting for formal
employment, she used her savings to start a small business making handmade soaps. At first, she faced
many challenges, including stiff competition and lack of experience. However, Zawadi remained focused
and continued improving her products by using natural ingredients and attractive packaging. She also
took time to learn basic marketing skills and often sought customer feedback to improve her services.
Within a year, her soaps were being sold in local shops and supermarkets.
Required: Based on the scenario above, identify and explain five characteristics of entrepreneurship
demonstrated by Zawadi. Support each characteristic with evidence from the scenario.
i) ______________________________________________________________________________
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ii) ______________________________________________________________________________
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iii) ______________________________________________________________________________
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iv) ______________________________________________________________________________
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 v) ______________________________________________________________________________
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7. In the village of Lugoma, several individuals begin launching different businesses, including a grain
milling service, a motorbike transport (bodaboda) group, and a second-hand clothes market. Over time,
more business activities emerge, and the village becomes busier with trade and services happening daily.
While life in Lugoma continues to change, most residents go about their routines without questioning the
growing number of businesses around them.
Based on this scenario, explain the importance of business in society by identifying five major benefits it
brings to the community.
i) ______________________________________________________________________________
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ii) ______________________________________________________________________________
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iii) ______________________________________________________________________________
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iv) ______________________________________________________________________________
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v) ______________________________________________________________________________
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8. In Tanzania, the government supports the consumption of some goods because they bring positive
outcomes to individuals and society. At the same time, it discourages the use of certain goods that may
cause harm when overused. Based on this idea, classify each of the following goods as either a merit
good or a demerit good:

S/NO. GOODS CLASSIFICATION

i) Blood donation services
ii) Plastic bags (single-use)
iii) Community clean-up programs
iv) Night clubs
v) Free vaccination programs
vi) Khat (miraa)
vii) Sanitation facilities
viii) Violent video games
ix) Public transportation
x) Hookah (Shisha)

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9. In the village of Kizimba, Mama Rehema opened a small bakery. She rented a shop near the market,
bought baking ovens and ingredients like flour, sugar, and eggs. She hired two young women to help her
bake and serve customers. Every morning, Mama Rehema wakes up early to plan the day’s work,
supervise the staff, and ensure quality in production. Her bakery quickly became popular, supplying
bread and cakes to local shops and schools.

Required:
From the scenario above, identify the four factors of production and give one example of each as used in
Mama Rehema’s bakery.

i) ______________________________________________________________________________
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ii) ______________________________________________________________________________
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iii) ______________________________________________________________________________
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iv) ______________________________________________________________________________
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SECTION C (15 Marks)

10. In Morogoro, Neema faces many challenges in her food-processing business. Describe six common
challenges faced by entrepreneurs in Tanzania and suggest possible ways to overcome them.
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