GRADE

9+ Extended Programme

BUSINESS & ENTERPRISE EDUCATION Practice Paper 1

40 Minutes
_______________________________________________________________________

Read these instructions first

• Write your name in the space provided below.

• Use black or blue ink.
• HB pencils may be used for the diagrams / sketches only.
• Do not use correction fluid.
• Read each question carefully.
• All answers must be written in the spaces provided.
• Answer all questions.
• The number of marks is given in the brackets [ ] at the end of each question or part question.
• The total mark for this paper is 40 marks.

Name of student : .....................................................................................................................................

1
2
SECTION A

Question 1 [5 marks]

Multiple Choice Questions. Circle the correct answer as shown in the example.

Example: A sole trader is owned and controlled by?

A A group of people
B One person only
C Partners
D Shareholders

1. A ................................ is a business organisation where each member contributes to the

capital by buying shares.

A government
B cooperative
C tax
D sole-trader

2. The role of the ................................ is to set up the enterprise and invest capital.

A owner
B money
C risk
D franchise

3. One of the uses of a business plan is to ................................ .

A make mistakes
B increase risks of failure
C apply for a bank loan
D make losses

4. A demand curve shows the link between the quantity demanded and ................................ .

A supply
B equilibrium output
C the price of the product
D the scale of production

3
5. Which of the following is a function of money?

A scarce
B medium of exchange
C uniform
D portable

Question 2 [5 marks]

State whether the following are ‘True’ or ‘False’.

True/False

Example: Consumers look for quality products at an affordable price. True

1. Companies raise capital by selling shares to shareholders.

2. Leading is to ensure that tasks are being done according to the

expectations of the entrepreneur.

3. External communication takes place inside the business.

4. People can buy only clothing on e-bay.

5. Money is limited in supply.

4
Question 3 [5 marks]

Fill in the blanks with a suitable word from the list given below. An example is given.

entrepreneur seller buyer goods

stakeholders identifying financial

Example: People, groups or organisations that take interest in activities and decisions taken
by a business are known as stakeholders.

a) A business organisation is an enterprise which provides ................................... and

services to buyers.

b) An ................................... is an individual who sets up an enterprise by taking risks and

who aims at making profits.

c) Marketing is the process of ................................... the needs of customers and

attempting to satisfy them, with the idea of making profit.

d) A ................................... is someone who offers products for sale.

e) A bank is an institution which provides ................................... services.

5
Question 4 [6 marks]

Match each term to its definition/ description. Write your answers in the table below.
The first one has been done for you.

Terms Definitions/Descriptions

1 Buyer A Employing workers to perform tasks in the enterprise

2 Franchise B Is the direct exchange of products without using money.

3 Staffing C One who purchases goods and services

4 Written D Is the process of collecting and analyzing data about

communication customers and the market

5 Saving E Is an enterprise that buys a license from a franchisor to

sell its products or services

6 Barter system F Money kept for future use

7 Market research G The exchange of information using written words

Term 1 2 3 4 5 6 7

Definition C

6
Question 5 [5 marks]

The government regulates and monitors the activities of businesses, thus all
companies need to be registered with the Registrar of Companies before starting
their operations. Businesses usually seek financial assistance from commercial
banks.

a) State two documents needed to register a company. [2 marks]

Document 1: ......................................................................................................................................

Document 2: ......................................................................................................................................

b) Explain two objectives of the government? [2 marks]

Role 1: .................................................................................................................................................

Role 2: .................................................................................................................................................

b) State two functions of commercial banks. [2 marks]

Function 1: .........................................................................................................................................

Function 2: .........................................................................................................................................

7
SECTION B

Question 6 [5 marks]

Multiple Choice Questions. Circle the correct answer as shown in the example.

Example: The double entry system affects ................................... .

A one account
B three accounts
C five accounts
D two accounts

1. Business transactions can be in form of ................................... .

A Cash
B Credit
C Bank
D Cash, Bank and credit

2. Which of the following is a cash transaction?

A Start business with cheque Rs30 000

B Purchase goods with cash Rs2000
C Sold goods to Sam Rs3000
D Paid electricity by cheque Rs250

3. A trial balance is usually prepared at ................................... .

A the beginning of each year

B the end of each month
C the end of each week
D the middle of each month

4. Stationary fee is ................................... .

A a liability
B an income
C an asset
D an expense

8
5. Gross profit = ................................... .

A Revenue + Cost of sales

B Expenses – Revenue

C Revenue – Cost of sales

D Cost of sales – Revenue

Question 7 [3 marks]

Fill in the blanks with a suitable word from the list given below. An example is given.

bank balance ledger debit credit

Example: All transactions that are done through the bank should be recorded in one same
bank account.

a) Transactions are recorded using the ................................... .

b) ................................... transaction is paid at a later date.

c) A trial balance should always ................................... .

9
Question 8 [6 marks]

For each of the transactions below, state their accounts. You have to choose from the
given list. The first one has been done for you.

Wages Account Electricity Account Sales/ Revenue Account

Purchases Account Advertising Account Bank Account Capital Account

Transaction Account

1 Capital Account

10
5

11
12
 GRADE
9+ Extended Programme

BUSINESS & ENTERPRISE EDUCATION Practice Paper 2

40 Minutes
_______________________________________________________________________

Read these instructions first

• Write your name in the space provided below.

• Use black or blue ink.
• HB pencils may be used for the diagrams / sketches only.
• Do not use correction fluid.
• Read each question carefully.
• All answers must be written in the spaces provided.
• Answer all questions.
• The number of marks is given in the brackets [ ] at the end of each question or part question.
• The total mark for this paper is 40 marks.

Name of student : .....................................................................................................................................

13
14
SECTION A

Question 1 [5 marks]

Multiple Choice Questions. Circle the correct answer as shown in the example.

Example: A company is owned and controlled by ................................... .

A a manager
B one person only
C partners
D shareholders

1. Companies should be registered with the ................................... .

A Registrar of companies
B Registrar of building permit
C Registrar of Cooperatives Division
D Registrar of land and building

2. An entrepreneur undertakes several responsibilities. Complete the wheel below.

Recruiting workers

Dealing with customers ____________________

Keeping financial records

A Wrongly promoting the product

B Keeps accounting records disorderly
C Takes time to handle customers
D Orders raw materials or goods for resale

3. The communication process consists of the ................................... .

A transmitter only
B feedback
C both the sender and the receiver
D none of the above

15
4. Which of the following is not a factor affecting demand?

A Population
B Taste and preference
C Cost of production
D Income of consumer

5. Ria needs a pen to write and Richi needs a book to read. This is an example of

Ria says: ‘ I have books, Richi says: ‘ I have pen,

but I need pen.’ but I need books.’

A money
B cashless society
C metallic money
D double coincidence of wants

16
Question 2 [5 marks]

State whether the following are ‘True’ or ‘False’.

True/False

Example: Leading is not a function of an entrepreneur. False

1. Members of cooperatives receive dividends as profit.

2. Effective communication leads to quicker decisions.

3. Marketing is important as it does not help to meet the needs of

customers.

4. Central banks monitor the banking system.

5. People tend to save more when the rate of interest in low.

17
Question 3 [5 marks]

For each of the following tick ( ) the appropriate column to indicate whether it is
an example of effective or ineffective communication. The first one has been done
for you.

Effective Ineffective
Communication Communication

a. Roy has put a message on the noticeboard

but no one responds to it.

b. Sammy has replied promptly to the email

received.

c. Jason cannot write in Mandarin and

he fails to send a memo to his Chinese
suppliers.

d. Umar has been praised for his positive

feedback during the meeting.

e. Due to technical problem, Maria cannot

publish her marketing report on the
website.

f. The students were very attentive during

the enterprise class and they have been
able to participate actively in the project.

18
Question 4 [6 marks]

a. Jeremie earns a monthly salary Rs 50 000. Fill in the table below with the missing figures.
The first two have been done for you. [4 marks]

Month Average Spending Saving Borrowing

income
(Rs) (Rs) (Rs)
(Rs)

May 50 000 30 000 20 000 0

June 50 000 75 000 0 25 000

July 50 000 20 000 ___________ 0

August 50 000 _____________ 15 000 0

September 50 000 55 000 ­­­­­­­­­­­­_____________ 5 000

October 50 000 80 000 0 ­­­­­­­____________

b. If Jeremie borrows money from banks he has to pay ................................... on the amount

borrowed. (loan/ interest). [1 mark]

c. Jeremie needs to produce his ................................... if he wants to take a loan. ( business

plan/ memorandum of association). [1 mark]

19
Question 5 [5 marks]

Arvin, Lucas and Humayd are farmers and they decide to set up a cooperative business. They
start up with their saving. Arvin explains to his friends about the business risks involved.

a) Identify one feature of a cooperative. [1 mark]

Feature 1: ……………………………………………………………………………………………....................................

b) Define the term “business risk”? [2 marks]

…………………………………………………………………………………………………………........................................

c) State two reasons why saving is important [ 2 marks ]

1: ………………………………………………………………………………………………...............................................

2: ………………………………………………………………………………………………...............................................

SECTION B

Question 6 [5 marks]

Multiple Choice Questions. Circle the correct answer as shown in the example.

Example: The trial balance is ................................... .

A an asset
B an income
C an expense
D a list of ledger accounts

1. Which of the following is a bank transaction?

A Purchase goods with cheque Rs5000

B Sold goods to Karen Rs4000
C Paid water bill by cash Rs600
D Drew cash for own use Rs450

20
2. Money needed to start up a business is called ................................... .

A cash transaction
B bank transaction
C capital
D credit sales

3. The supplier is also known as ................................... .

A trade payable
B creditor
C debtor
D trade receivable

4. The recording of credit sales affect two accounts and they are:

A Dr Capital Account Cr Cash Account

B Dr Sales/ Revenue Account Cr trade receivables Account

C Dr Trade receivables Account Cr Sales / Revenue Account

D Dr Sales/Revenue Account Cr trade payables Account

5. Commission received is ................................... .

A an income
B an asset
C an expense
D a liability

21
Question 7 [3 marks]

Fill in the blanks with a suitable word from the list given below. An example is given.

two larger balance b/d smaller expenses

Example: All transactions affect two accounts.

a) ................................... is recorded on the opposite side of balance c/d below the total.

b) Balance c/d is the difference between the ………….and the lower amount of an account

c) Other income minus ................................... equals net-profit

Question 8 [ 6 marks]

Hassan has the following list of balances. He has to classify the items in the debit and credit
column. The first one has been done for you.

Purchases Sales(Revenue) General Expenses Trade payable

Equipment Drawing Capital

Debit balance Credit balance

Purchases

22
 GRADE
9+ Extended Programme

BUSINESS & ENTERPRISE EDUCATION Practice Paper 3

40 Minutes
_______________________________________________________________________

Read these instructions first

• Write your name in the space provided below.

• Use black or blue ink.
• HB pencils may be used for the diagrams / sketches only.
• Do not use correction fluid.
• Read each question carefully.
• All answers must be written in the spaces provided.
• Answer all questions.
• The number of marks is given in the brackets [ ] at the end of each question or part question.
• The total mark for this paper is 40 marks.

Name of student : .....................................................................................................................................

23
24
SECTION A

Question 1 [5 marks]

Multiple Choice Questions. Circle the correct answer as shown in the example.

Example: An Annual General Meeting (AGM) is a ................................... .

A monthly meeting
B weekly meeting
C yearly meeting
D daily meeting

1. Each share has ................................... .

A 2 voting rights
B 1 voting right
C 3 voting rights
D 4 voting rights

2. Which of the following is a function of an entrepreneur?

A Risk taker
B Leader
C Intelligent
D Passionate

3. Selling is defined as the ................................... .

A exchange of goods and services for cash

B exchange of services only
C exchange of goods and services only
D exchange of goods for cash

4. Borrowing refers to ................................... .

A part of income which is kept for future use

B payment over and above the initial amount
C taking money from a person or a bank which must be repaid in the future
D paying out money to buy goods or hire services

25
5. Observe the picture below and identify the correct function of money?

A Medium of exchange
B Store of value
C Standard of deferred payment
D Unit of account

Question 2 [5 marks]

State whether the following are ‘True’ or ‘False’.

True/False

Example: Trade is the buying of goods only. False

1. The entrepreneurs have to keep accounting records only.

2. A marketable product is a product which consumers does not

need and are ready to buy.

3. Effective communication is a two-way process between the sender

and the receiver where a feedback is provided.

4. International trade involves exports only.

5. Gold and silver coins are examples of metallic money.

26
Question 3 [5 marks]

Fill in the blanks with a suitable word from the list given below. An example is given.

business plan tax suppliers risk takers

commercial competitive central

Example: Tax is a payment charged by government.

(a) Entrepreneurs are ­­­­­­­­­­................................... .

(b) A ................................... is a document that contains a detailed plan to set up and develop

an enterprise.

(c)­­­­­­­­­­ ................................... pricing is to set the price of a product similarly with other similar

products.

(d) ................................... supply goods and services.

(e) The ................................... bank is a governmental institution which controls the financial

activities of a country.

Question 4 [6 marks]

Hadad wants to purchase two cupcakes but unfortunately, she can afford to buy only
one.

a. List and explain any two factors which influences the demand of cupcakes. [4 marks]

Factor 1 : ............................................................................................................................................

27
..............................................................................................................................................................

..............................................................................................................................................................

Factor 2 : ............................................................................................................................................

..............................................................................................................................................................

..............................................................................................................................................................

b. (i) Insert the correct arrow ( ) ( ) in the table below. [ 1 mark ]

Law of demand

Price _________________ Qty demanded

(ii) Hence, there is a ................................... ( direct/ inverse) relationship between price and

quantity demanded. [1 mark]

Question 5 [5 marks]

a. Rearrange the words below to define a business idea. [1 mark ]

opportunity an innovative business into

converted is which can be an enterprise

A business idea ................................................................................................................................

..............................................................................................................................................................

28
..............................................................................................................................................................

b. Complete the figure by using the appropriate words given from the list below.

Sales promotion Potential investors Banks

Entrepreneurs themselves Saving Government

[4 marks]

SECTION B

Question 6 [5 marks]

Multiple Choice Questions

Circle the correct answer as shown in the example.

Example: A ledger is a book which consist of ................................... accounts.

A different
B same
C big
D large

29
Study the wages account below and use it to answer multiple choice questions 1, 2
and 3.

Dr Bank Account Cr

Date Details Amount (Rs) Date Details Amount (Rs)

Apr 15 Capital 12 000 Apr 18 Purchases 4 000

Apr 25 Sales 40 000 Y

1. When money is received or paid by cheque, it is known as ................................... .

A cash transaction
B bank transaction
C double entry
D credit transaction

2. What is the correct value of X and Y respectively?

X (Rs) Y (Rs)

A 52 000 4000

B 38 000 48 000

C 12 000 52 000

D 52 000 48 000

30
3. Which date must be recorded for the balance c/d?

A Apr 30
B Apr 26
C May 01
D Apr 17

4. Which of the following is the correct double entry for the following transaction:
June 25: Bought motor-van Rs 35 000 by cheque

Account Debited Account Credited

A Purchases Account Motor-Van Account

B Bank Account Purchases Account

C Motor- Van Account Bank Account

D Motor- Van Account Purchases Acount

5. Advertising account has ................................... .

A debit balance
B credit balance
C trial balance
D zero balance

31
Question 7 [3 marks]

From the information given, find the value of cost of sales.

Purchases Rs 15 000
Closing inventory Rs 4 500
Revenue Rs 25 000
Opening inventory Rs 3 200

Rs

Cost of Sales

32
Question 8 [ 6 marks]

Complete the table below. The first one has been done for you.

Transaction Account Debited Account Credited

Paid advertising in cash Rs 300 Advertising Account Cash Account

Sold equipment and received cheque Bank Account ...................................

Rs 2500

Bought goods in cash Rs 400 ................................... Cash Account

Sold goods to Sara Rs 4500 ................................... ...................................

Purchase delivery van from Cheung ................................... ...................................

Rs 7800

33
34
 GRADE
9+ Extended Programme

BUSINESS & ENTERPRISE EDUCATION Practice Paper 4

40 Minutes
_______________________________________________________________________

Read these instructions first

• Write your name in the space provided below.

• Use black or blue ink.
• HB pencils may be used for the diagrams / sketches only.
• Do not use correction fluid.
• Read each question carefully.
• All answers must be written in the spaces provided.
• Answer all questions.
• The number of marks is given in the brackets [ ] at the end of each question or part question.
• The total mark for this paper is 40 marks.

Name of student : .....................................................................................................................................

35
36
SECTION A

Question 1 [5 marks]

Multiple Choice Questions. Circle the correct answer as shown in the example.

Example: Shareholders are ................................... .

A owners
B customers
C lenders
D suppliers

1. There are many forms of communication. Kiyaan always shakes hands with his friends.
This is an example of ................................... communication.

A visual
B written
C verbal
D non-verbal

2. The entrepreneur needs to consider the ................................... when setting price for a
product.

A ability to pay
B cost of advertising
C the market
D labelling practices

3. Which of the following is NOT a component of a business plan?

A Start-up capital required

B Personal details of the owner
C Profits and losses to be made
D Prices to be charged

4. What does ‘X’ represents in the figure below:

Income __ X = Disposable Income

A Food
B Saving

37
 C Tax
D Interest

5. When both buyers and sellers are found in the same country, this is known as ...............
.................... .

A international trade
B exports trade
C trade
D local trade

Question 2 [5 marks]

State whether the following are ‘True’ or ‘False’.

True/False

Example: Banks offer loan at high interest rates. False

Entrepreneurs communicate with various stakeholders to convey

1. messages during their business activities.

Setting the price low to attract customers is known as penetration

2. pricing.

A business plan cannot be used to measure progress made by a

3. business.

4. An online shopping website is a market.

5. The demand curve is a table which shows the quantity demanded of

commodities at given prices.

38
Question 3 [5 marks]

Fill in the blanks with a suitable word from the list given below. An example is given.

ability cooperative willingness externally

internally home channel of distribution

Example: A cooperative is where a group of individuals join together to achieve a common

purpose.

(a) Entrepreneurs communicate with stakeholders both ................................... and ...............

.................... .

(b) A ................................... refers to the link a product passes through before it reaches the

consumers.

(c) Trade is classified as ................................... trade and international trade.

(d) Demand is the willingness and ................................... to buy a product at a given price

over a given period of time.

39
Question 4 [6 marks]

Match each term to its definition/ description. Write your answers in the table below.
The first one has been done for you.

Terms Definitions/Descriptions

1 A The process of marketing a product using the

Public goods
internet.

2 E-marketing B An example of commodity money.

3 Web marketing C Promoting products through the use of email to

customers.

4 D Money borrowed which must be repaid usually with

Email marketing
interest over a given period of time.

5 Social media marketing E Are goods which are produced by the

government.

6 Loan F Involves the use of social network like Facebook and

Twitter to market products.

7 Precious stone G Promoting products or enterprises on the internet

through websites.

Question 5 [5 marks]

Japan is trading cars to Mauritius. However, Mauritius wants to reduce its imports due to a
lack of funds.

40
a. When Japan exports cars to Mauritius, there is an ................................... (inflow/
outflow) of money in Japan. [1 mark]

b. Tick ( ) to indicate which of the following is an Export or Import for Mauritius.

[4 marks]

Export Import

i Purchase rice from Madagascar

ii. Selling t-shirts to Seychelles

iii. Buying petrol from Saudi Arabia

iv. Mauritians travelling to Reunion Island for holidays

v. Buying octopus from Rodrigues

SECTION B

Question 6 [5 marks]

Multiple Choice Questions. Circle the correct answer as shown in the example.

Example: A ................................... shows the amount paid by the bank.

A cheque
B receipt
C invoice
D quotation

1. A business transaction which is paid at a later date is known as ...................................

transaction.

41
 A credit
B cash
C bank
D purchases

2. If the total of the debit side is greater than the credit side, the ledger account will
have a ................................... balance.

A credit
B debit
C equal
D zero

3. Which of the following is not an example of current asset?

A Inventory
B Furniture
C Cash at bank
D Account receivable

4. What does ‘M’ represents? Assets = M + Capital

A Current Asset
B Cost of sales
C Liability
D Furniture

5. Capital is also known as ................................... .

A owner’s equity
B opening inventory
C closing inventory
D cost of sales

42
Question 7 [3 marks]

Complete the advertising account

Dr Advertising Account Cr

Date Details Amount Date Details Amount (Rs)

(Rs)

July 20 Bank 8 000 July 30 Balance …/d __________

8 000

________ Balance --/d 8 000

Question 8 [ 6 marks]

You are required to record the following transactions in a cash account and balance
it off.

March 02 Started business with cash Rs 40 000

March 05 Sold goods for cash Rs 8 000

March 15 Paid electricity in cash Rs 12 000

March 23 Paid advertising in cash Rs 5 000

March 26 Purchased goods for cash Rs 13 000

43
Dr Cash Account Cr

Date Details Amount (Rs) Date Details Amount (Rs)

March 02 Capital 40 000

44
 GRADE
9+ Extended Programme

BUSINESS & ENTERPRISE EDUCATION Practice Paper 5

40 Minutes
_______________________________________________________________________

Read these instructions first

• Write your name in the space provided below.

• Use black or blue ink.
• HB pencils may be used for the diagrams / sketches only.
• Do not use correction fluid.
• Read each question carefully.
• All answers must be written in the spaces provided.
• Answer all questions.
• The number of marks is given in the brackets [ ] at the end of each question or part question.
• The total mark for this paper is 40 marks.

Name of student : .....................................................................................................................................

45
46
SECTION A

Question 1 [5 marks]

Multiple Choice Questions. Circle the correct answer as shown in the example.

Example: A partnership business consists of ................................... .

A 2 persons
B 1 person
C 55 persons
D 60 persons

1. The objective of consumers as a stakeholder is to ................................... .

A ensure safe, reliable and value for money products

B ensure that jobs are created
C earn a fair pay
D be successful

2. Which of the following is a cause of ineffective communication?

A Good feedback
B Right information
C Simple language
D Distractions

3. Market research is important as it helps to ................................... .

A make inappropriate business plan

B launch new product with fear
C respond quickly to changes in customers’ preferences
D make unwanted products

47
4. The law of supply states that as price ..................................., quantity supplied ...................
................ .

Price Quantity supplied

A rise Rise

B no change Fall

C fall Rise

D rise no change

5. There may be a rise in supply due to a ................................... .

A rise in cost of production

B reduction in taxes
C poor weather condition
D decrease in population level

48
Question 2 [5 marks]

State whether the following are ‘True’ or ‘False’.

True/False

True
Example: E-marketing allows buying and selling at odd hours.

1. Promotion is about communicating with customers so as to

encourage them to buy the products of an enterprise.

2. Advertisement for a new product on television is an example of

internal communication.

3. Being skillful is to come up with new ways of doing things.

4. The use of modern technology will decrease supply.

5. There is only one central bank in each country.

Question 3 [5 marks]

Fill in the blanks with a suitable word from the list given below. An example is given.

spend verbal employee

questions spoken low high

Example: An employee is an example of shareholder.

49
a) Before preparing a business plan, entrepreneurs should ask a set of key ........................... .

b) ................................... communication is the oral exchange of information through

............................... words.

c) Wealthy people ................................... more that ................................... wage earners.

Question 4 [6 marks]

Sanjay is a Chef and wants to open his own restaurant. He has to prepare a
business plan. Sanjay likes to work alone to avoid conflicts. He has developed
the right qualities to become a successful entrepreneur.

a) State one advantage and one disadvantage if Sanjay has decided to set up a company.
[2 marks]

Advantage : ........................................................................................................................................

Disadvantage: ....................................................................................................................................

b) Outline any two qualities that Sanjay needs to be successful. [2marks]

Quality 1: ..........................................................................................................................................

Quality 2: ..........................................................................................................................................

c) Give 2 examples of conflicts that might arise if Sanjay employs many workers.
[2 marks]

Example 1: ..........................................................................................................................................

Example2: ..........................................................................................................................................

50
Question 5 [5 marks]

Mario, the lollipop seller wants to increase his sales. He asked his son to label the supply
curve for the lollipop.

a. Label the diagram below. [3 marks]

b. Complete the supply schedule. [2 marks]

Price (Rs) Quantity supplied

0.50 2

1.00

1.50

51
SECTION B

Question 6

Multiple Choice Questions. Circle the correct answer as shown in the example.

Example: DR refers to ................................... .

A debit side
B different reference
C debit reference
D debit receipt

1. ................................... is earned when revenue exceeds cost of sales.

A Net profit
B other income
C total expenses
D Gross profit

Below is an extract of income statement. Use the information to answer part 2-5
Income statement for the year ended 31 Dec XXX

Rs Rs

Gross profit 2 400

Add other income:

…………….
………………..

2 800

Less ----------------

Rent 400

Transport 700 (1 100)

Net Profit ……………

52
2. Which of the following could be classified as other income?

1. Donation received 2. Equipment 3. Trade receivable

A 1 and 2
B 1 and 3
C 1 only
D All of the above

3. What is the corresponding value of ‘other income’?

A Rs 200
B Rs 5200
C Rs 400
D Rs 1 100

4. Rent and transport are examples of ................................... .

A expenses
B other income
C liabilities
D assets

5. The net-profit for the year is ................................... .

A Rs 1 100
B Rs 2 800
C Rs 400
D s 1 700

Question 7 [3 marks]

Marco is an entrepreneur selling ‘alouda’ in the central market of Rose-Hill for more than 20
years. Now, he has been asked by his accountant to give details about what his enterprise
owns.

53
Complete the conversation below between Marco and his accountant Jersey.

Marco: Hello, Jersey. Why are assets important for any business?

Jersey: Assets are important because

………………………………………………………………………………………………………………...…………

..........................................................................................................................................

Marco: Therefore, assets can be classified as:

Assets

................................... ...................................

Question 8 [6 marks]

Terese is junior accountant and has recently joined ‘Cool ltd’. She has been given a list of
balances and is required to prepare the trial balance for Cool ltd as at 30th September. The
first one has been done for you.

Purchases Rs 1000

Sales (Revenue) Rs 2000

Jenny ( Trade receivable) Rs 3000

Equipment Rs 4500

Capital Rs 8000

Salaries Rs 1200

Drawings Rs 300

54
Trial balance as at 30th September

Debit (Rs) Credit (Rs)

Purchases 1000

55
56
 GRADE
9+ Extended Programme

BUSINESS & ENTERPRISE EDUCATION Practice Paper 6

40 Minutes
_______________________________________________________________________

Read these instructions first

• Write your name in the space provided below.

• Use black or blue ink.
• HB pencils may be used for the diagrams / sketches only.
• Do not use correction fluid.
• Read each question carefully.
• All answers must be written in the spaces provided.
• Answer all questions.
• The number of marks is given in the brackets [ ] at the end of each question or part question.
• The total mark for this paper is 40 marks.

Name of student : .....................................................................................................................................

57
58
SECTION A

Question 1 [5 marks]

Multiple Choice Questions. Circle the correct answer as shown in the example.

Example: People need to work to earn a ................................... .

A living
B job
C house
D bungalow

1. What is the difference between a private limited company and a public limited company
is?

Private limited company Public limited company

A shares profit with managers shares profit with workers

B raises capital through family & relatives raises capital through the general
public

C is a large organisation is a small organisation

D has “Co Ltd” in its name does not have “Co Ltd” in its name

2. The role of the government as a stakeholder is to ................................... .

A supply raw materials to businesses

B spend time in the enterprise
C regulate and monitor the running of the business
D manage and run the business

3. Informing or persuading consumers to buy a product by using media is known as

59
............................... .

A public relation
B personal selling
C advertising
D direct marketing

4. From the demand schedule below, calculate the change in quantity demanded when
price rises from Rs 20 to Rs 30.

Price (Rs) Quantity demanded

10 5

20 4

30 3

40 2

A rises by 1 unit
B falls by 1 unit
C remains unchanged
D rises by 15%

5. The ................................... curve can be drawn from the supply schedule.

A demand
B supply
C equilibrium
D price

60
Question 2 [5 marks]

State whether the following are ‘True’ or ‘False’.

True/False

Example: Effective communication is a two way process. True

1. A company should submit a Memorandum of Association upon

registration.

2. One example of visual communication is writing reports.

3. Compliance risk refers to chances of business failure as

enterprises fail to follow laws and regulations.

4. Export allows cash to flow in the country.

5. Disposable income is a factor influencing saving.

Question 3 [5 marks]

Fill in the blanks with a suitable word from the list given below. An example is given.

technology profit sends intelligent

online taxes business risk

Example: An entrepreneur aims at making profit.

61
(a) A ................................... refers to any factor that represents a threat to an enterprise

ability to achieve its goals.

(b) The transmitter is the person who ................................... information to others.

(c) Being ................................... refers to taking the right decision by the entrepreneur.

(d)The use of new ................................... may lead to an increase in supply.

(e)Nowadays, people buy many products ................................... because it saves time.

Question 4 [6 marks]

Below are factors influencing demand and supply. Tick (√) the appropriate column (s). The
first one has been done for you.

[4 marks]

Factors Factor influencing Factor influencing

demand supply

Price of the product

Rise in cost of production

Changes in climatic conditions

A fall in the level of income

62
a) Rearrange the word below to define the term “supply”. [2 marks]

willing and able at a given price sellers are

quantity of a product to sell and time

Supply is the .....................................................................................................................................

..............................................................................................................................................................

..............................................................................................................................................................

Question 5 [5 marks]

Lyly enterprise deals with delivery of flowers and is growing in size. She is aware of the
different risks involved. Lyly needs to identify the correct steps to manage the risks in her
enterprise. The list is provided below.

» Implement the plan

» Assess the impact of the loss

» Review and evaluate the plan

» Identify potential risks

» Develop a plan to mitigate the risk(s)

63
 Step 1

Step 2

Step 3

Step 4
SECTION B

Step 5

Question 6 Multiple Choice Questions. Circle the correct answer as shown in the
example.

Example: Travelling expense is an example of ................................... .

A cash flow
B cash inflow
C net cash flow
D cash outflow

1. One account has a debit entry and the other account has a credit entry. This is known as
................................... .

A name of account
B ledger
C dual aspect principle
D transaction

64
2. An enterprise records business transactions in ................................... .

A ledger
B cash
C banks
D credit

3. Jan 4: Lucas started business with cash Rs 50, 000. Which two accounts are affected?

First Account Second Account

A Cash Business

B Cash Capital

C Capital Business

D Lucas Bank

4. On 15th November, goods were bought on credit for Rs 45,000 from a supplier; Khan Ltd.
Khan ltd is ................................... .

A trade receivable
B debtor
C trade payable
D owner

5. Cheque receipts refers to ................................... .

A business buys goods and services

B outflows of funds
C cheques which are withdrawn from the bank
D cheques which are deposited into the bank

65
Question 7 [3 marks]

Fill in the blanks using the word given below

cost of sales expenditures gross profit closing inventory

a. Expenses are also known as ................................... .

b. Revenue minus ................................... is equalled to ................................... .

Question 8 [6 marks]

Pawla is an inexperienced bookkeeper and she has prepared the following cash account. It
contains several errors. You are required to re-work it in the blank cash account given below.

DR Cash Account CR

Date Details Amount (Rs) Date Details Amount (Rs)

Jan 01 Capital 100 000 Jan 06 Sales 150 000

Jan 09 Purchases 20 000 Jan 10 Transport 13 000

Jan 11 Rent 10 000 Jan 12 Equipment 40 000

Jan 21 Electricity 5 000 Jan 16 Advertising 26 000

Jan 31 Bal c/d 94 000

229 000 229 000

Feb 01 Bal b/d 94 000

66
DR Cash Account CR

Date Details Amount (Rs) Date Details Amount (Rs)

67
68
 GRADE
9+ Extended Programme

BUSINESS & ENTERPRISE EDUCATION Practice Paper 7

40 Minutes
_______________________________________________________________________

Read these instructions first

• Write your name in the space provided below.

• Use black or blue ink.
• HB pencils may be used for the diagrams / sketches only.
• Do not use correction fluid.
• Read each question carefully.
• All answers must be written in the spaces provided.
• Answer all questions.
• The number of marks is given in the brackets [ ] at the end of each question or part question.
• The total mark for this paper is 40 marks.

Name of student : .....................................................................................................................................

69
70
SECTION A

Question 1 [5 marks]

Multiple Choice Questions. Circle the correct answer as shown in the example.

Example: Resources are ................................... in supply.

A unlimited
B plentiful
C renewable
D limited

1. Individuals who are elected by shareholders to manage a company are known as

............................... .

A managers
B employees
C owners
D Board of Directors

2. Chances of business failure due to poor business objectives is defined as ...............................

.

A strategic risk
B operational risk
C financial risk
D compliance risk

3. Setting a high price for a high quality product that is unique on the market refers to
............................... .

A penetration pricing
B premium pricing
C cost plus pricing
D promotional pricing

4. Which of the following is a factor influencing supply?

1. Technology
2. Level of income
3. Taxes

71
 A 1 and 3
B 2 and 3
C 1 and 2
D All of the above.

5. Examples of commercial banks in Mauritius and Rodrigues are ................................... .

A The Mauritius Commercial Bank Ltd and The Bank of Mauritius

B The MauBank and The Mauritius Commercial Bank Ltd
C The State Bank (Mauritius) Ltd and The Bank of Mauritius
D The Bank of Mauritius and the MauBank

Question 2 [5 marks]

State whether the following are ‘True’ or ‘False’.

True/False

Example: The reward for the factor of production land is rent. True

1. Shareholders in a company have unlimited liability.

2. Sales promotion is reducing price or giving gifts to achieve short-

term increases in sales.

3. Banks are the only users of business plan

4. The Mauritius Revenue Authority (MRA) charges tax to students

only.

5. Lemons sold in Rodrigues is an example of home trade for

Rodrigues.

72
Question 3 [5 marks]

Fill in the blanks with a suitable word from the list given below. An example is given.

money conflict natural suppliers

franchisee franchisor interest

Example: Land is a natural resource.

a) A ................................... is an individual or business that buys a patent to operate a

franchise business.

b) ................................... provide raw materials and other input to the enterprise.

c) ................................... is a situation in which there is a disagreement or disapproval with

another person, or within a group.

d) The seller obtains ................................... when she sells the products

e) When loans are taken from banks, an ................................... has to be paid on the amount

borrowed.

Question 4 [6 marks]

Richie lives in China and he has an automobile business.

He has customers in Mauritius, Reunion and France.

a) List three reasons why international trade is important for an economy . [3 marks]

Reason 1: ............................................................................................................................................

..............................................................................................................................................................

Reason 2: ............................................................................................................................................

73
..............................................................................................................................................................

Reason 3: ............................................................................................................................................

..............................................................................................................................................................

a. Tick ( ) the correct statement and cross ( ) the incorrect one.[3]

i. Richie is the exporter

ii. France earns money when it buys cars from Richie.

iii. Mauritius and Reunion islands face an outflow of money

Question 5 [5 marks]

Shanaya has just completed her studies and she set up a small dressmaker
shop. Help Shanaya to identify the component of the business plan based on
the description given in column 1. The first one has been done for you.

Components of the business plan

• Information about the enterprise

• Human resources
• Operations
• Marketing
• Finances

74
 Column 1 Column 2

Expected expenses/ revenue Finances

Units of goods to be produced

Location of the business

Number of workers required

Prices to be charged

Business idea

SECTION B

Question 6 Multiple Choice Questions. Circle the correct answer as shown in the
example.

Example:

A ................................... can be in the form of cash.

A sales
B credit
C transaction
D bank

1. Credit sales refers to ................................... .

A goods sold by a business and money is received by cheque.

B goods sold by a business but receipts are obtained later from the customer.
C goods sold by a business and money is received in cash.

75
 D goods sold by a business but for which payments is done later.

2. Adrien pays rents in cash Rs 5 000. How is this transaction recorded in the books of
Adrien?

A Dr Cash Account Cr Rent Account

B Dr Rent Account Cr Cash Account

C Dr Adrien Account Cr Rent Account

D Dr Rent Account Cr Adrien Account

3. Where are credit balances entered in the trial balance?

A credit column
B debit column
C both debit and credit columns
D not recorded in the trial balance

4. A statement of financial position is ................................... .

A a classification of receipts and payments to calculate profits and losses

B a statement that shows all the assets, liabilities and owner’s capital in an
enterprise at a particular date.
C a statement which comprises income statement and list of assets.
D the accounting year of a business ends.

76
5. What is the correct value of total costs ‘X’?

Rs Rs

Revenue/Sales 1500

Cost of Purchases 720

Selling expenses 600

Less Total costs (X)

Profit 180

A Rs 180 B Rs 720 C Rs 1320 D Rs 820

77
Question 7 [3 marks]

Fill in the blank spaces with the values given below. The first one has been done for you.

Rs 48 000 Rs 129 000 Rs 73 000 Rs 23 000 Rs 12 000

Total Assets (Rs) Non-Current Assets (Rs) Current Assets (Rs)

40 000 28 000 12 000

75 000 52 000 ...................................

................................... 30 000 18 000

120 000 ­­­­­­­­­­­­­­­­­­­­­................................... 47 000

78
Question 8 [6 marks]

Below is Leticia’s Income statement. She owns a candle shop. Complete the Income
statement for the year ending 31 December 2021 and state clearly the value of cost
of sales and gross-profit.

Purchases Rs 60 000

Revenue from sales Rs 110 000

Opening inventory Rs 10 000

Closing inventory Rs 15 000

(Rs) (Rs)

Revenue from sales

Cost of sales:

Less cost of sales

Gross-profit

79
80
 GRADE
9+ Extended Programme

BUSINESS & ENTERPRISE EDUCATION Practice Paper 8

40 Minutes
_______________________________________________________________________

Read these instructions first

• Write your name in the space provided below.

• Use black or blue ink.
• HB pencils may be used for the diagrams / sketches only.
• Do not use correction fluid.
• Read each question carefully.
• All answers must be written in the spaces provided.
• Answer all questions.
• The number of marks is given in the brackets [ ] at the end of each question or part question.
• The total mark for this paper is 40 marks.

Name of student : .....................................................................................................................................

81
82
SECTION A

Question 1 [5 marks]

Multiple Choice Questions. Circle the correct answer as shown in the example.

Example: Rain, sun and natural flowers are examples of ................................... resources.

A renewable
B non-renewable
C human
D financial

1. One example of effective communication is ................................... .

A orders are not placed on time

B employees know about job expectations
C the enterprise does not meet customers’ orders on time
D decisions are taken slowly

2. Which of the following represent a channel of distribution?

A Producer Retailer Consumer

B Producer Consumer Retailer

C Producer Retailer Wholesaler Consumer

D Consumer Producer

3. One of the question that entrepreneurs should ask before preparing a business plan is?

A Who will be the customers

B Who are the competitors
C What type of enterprise should be set up
D All of the above

4. A cyclonic season would cause a decrease in the supply of ................................... .

A laptops
B furniture
C skirts
D fresh tomatoes

83
5. Below is a supply curve. Which of the following is the correct labelling of the supply curve?

Price
Supply

Quantity
A SD
B SS
C DS
D DD

Question 2 [5 marks]

State whether the following are ‘True’ or ‘False’.

True/False

Example: Before setting up an enterprise, entrepreneurs should know True

about the risks involved.

1. Direct marketing involves making direct contact with consumers

through telephone selling.

2. Luck is an essential quality of an entrepreneur.

3. Written communication is the exchange of information through the

use of written words.

4. Individuals and firms can borrow money from the government.

5. Money is heavy and difficult to carry around.

84
Question 3 [5 marks]

Fill in the blanks with a suitable word from the list given below. An example is given.

income profit government private limited company

public limited company teenagers individual

Example: Profit is the reward for the factor of production enterprise.

a) A ­­­­­­­­­­­­­­­­................................... issues shares to members of the general public.

b) A ................................... issues shares to family members and friends.

c) The ................................... regulates and monitors the running of businesses in a country.

d) ................................... and elders tend to save less than ................................... earners.

Question 4 [6 marks]

Read the conversation between Serena and her economics teacher and answer the
questions which follows.

Hello teacher. I am not able to do the

activity on demand and supply diagram.

Well, you always have to label the

curves and the axes. You also have to
identify the equilibrium point.

a. Complete the sentence below:

Equilibrium is ............................................................................................................................. . [1]

85
b. Using the information provided below identify (i) the equilibrium price and the (ii)
equilibrium quantity. [2]

Price (Rs) Quantity demanded Quantity supplied (Units)

(Units)

10 50 30

20 40 40

30 30 50

(i) The equilibrium price is Rs ................................... . ( Rs 10 / Rs 20).

(ii) The equilibrium quantity is ................................... units. ( 40 units/ 30 units).

c. Draw and label the demand and supply curves in the space provided. Label your diagrams
clearly and show the equilibrium point ‘E’. [3 marks]

Price

80

70

60

50

40

30

20

10

Quantity
0 10 20 30 40 50 60 70 80 90 100

86
Question 5 [5 marks]

Match each term to its definition/description. Write your answers in the table below.
The first one has been done for you.

Terms Definitions/Descriptions

1 Stakeholders A
Prices are reduced for a short period of time. A shop
selling Christmas decorations will reduce its prices during
Christmas period.

2 Penetration B
pricing Prices are set up by adding cost per unit to a % of profit.
A flower shop will sell the souvenirs by adding a % of
profit to the cost of the flowers.

3 Cost plus pricing C

Prices are set up similarly with other similar products on
the market. Two peanuts seller will sell their products at
the same price outside a cinema hall.

4 Promotional D Are people, groups or organizations that take interest in

pricing activities and decisions taken by a business

5 Premium pricing E
Prices are set lower in order to attract customers to buy
a new product. KFC made a new recipe of burgers. It will
sell this new product at a lower price in order to attract
customers.

6 Competitive F
pricing Prices are set higher for a high quality product that
is unique on the market. A computer manufacturer
invented a new model of computer. He will put high
prices as the product is of good quality.

Term 1 2 3 4 5 6

Definition D

87
SECTION B

Question 6 Multiple Choice Questions. Circle the correct answer as shown in the
example.

Example:

A business transaction must have a ................................... value.

A monetary
B sales
C credit
D purchases

1. Adriana’s enterprise deals in face masks. Her suppliers offer her credit facilities. This is
referred as ................................... .

A drawings
B credit purchases
C profit
D credit sale

2. Work out the balance carried down (c/d) of Marjorie’s Account.

Marjorie Account
Dr Cr

Date Details Amount Date Details Amount

(Rs) (Rs)

Feb 4 Cash 200 Feb 3 Purchases 1 400

Feb 7 Bank 800 Feb 19 Rent 100

Feb 18 Sales 2 200

88
 A Rs 1600
B Rs 3200
C Rs 1000
D Rs 1700

3. An entry on the left side of an account shows what ................................... the business.

A goes out
B comes in
C remains in
D left out

4. A liability is ................................... .

A owned by a business
B a business transaction
C what the business owes
D a receipt

5. Money needed to start up a business is called ................................... .

A cash transaction
B credit transaction
C capital
D drawings

89
Question 7 [3 marks]

Given the following information calculate Mr. Graham equity in the statement of
financial position as at 31st July 2021.

Rs

Capital 80 000

Trade payables 5 000

Drawings 12 000

Bank loan 40 000

Net profit for the year 25 000

Statement of Financial Position (Extract)

Rs Rs

Capital 80 000 80 000

Add:___________________________

Less: __________________________

Owner’s equity

90
Question 8 [6 marks]

Jia has wrongly prepared the trial balance. You are required to rewrite the trial
balance correctly.

Trial balance as at 31 July 2020

List of accounts Debit (Rs) Credit (Rs)

Capital 8000

Rent 2000

Furniture 2500

Motor-van 1500

Drawings 1800

Trade payable 1400

Cash in hand 1600

12500 6300

91
Trial balance as at 31 July 2020

List of accounts Debit (Rs) Credit (Rs)

Capital

Rent

Furniture

Motor-van

Drawings

Trade payable

Cash in hand

92