Download and practise with this ZIMSEC O-Level Business Enterprise Skills Paper 2 November 2020 question paper. Useful for exam revision, past paper practice, and preparation in Zimbabwe.
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This is the ZIMSEC O-Level Business Enterprise Skills question paper for Paper 2 from November 2020. Use it for exam practice under timed conditions.
2
SECTION A [40 Marks]
Answer all questions
1 CHALLENGES FACING SMALL BUSINESS ENTERPRISES
B. Chimpengo operated a business enterprise as a sole trader. Need arose to expand the business due to increased demand for the enterprise products. It was difficult because retained profits were inadequate to finance growth.
He thought of engaging a friend into a partnership enterprise but the friend was insolvent as a result of unethical business practices. He was referred to the bank and the government to seek assistance. Lately, the Zimbabwean government introduced grants and loan schemes for SMEs who are operating ethically and positively contributing to the economy. One of the requirements of the bank was to submit financial statements representing his net worth and working capital.
Below is the statement of financial position for Chimpengo Business Enterprise.
Statement of financial position for B . Chimpengo as at $31 / 12 / 18$
Non-current assets:
Premises
$
Fixtures and fittings
Motor vehicles
Current assets
Inventory
Trade receivables
Cash at bank
Less Current Liabilities
$
100000
$\underline{40000}$
190000
Trade payables
Working capital $\underline{11000}$
Net assets
Capital
Add Net profit
Less Drawings
19000
$\underline{209000}$
200000
$\underline{10000}$
210000
$\underline{1000}$
$\underline{209000}$