S6 Entrepreneurship II 2025 Past Paper: Full Solutions

The 2025 NESA S6 Entrepreneurship II national exam tested students across all combinations  Sciences, Humanities, and Languages — on everything from the entrepreneurial process to break-even analysis and full business plan writing. If you sat this paper on 11th July 2025, or you're an S5 student preparing for next year's exam, here are complete, step-by-step solutions to every question in Sections A, B, and C.

Entrepreneurship II is one of those subjects where marks are lost not from not knowing the content, but from missing the exact terminology examiners want, or from skipping working steps the marking scheme actually rewards. We've broken down each answer the way a marker would expect to see it.

TO GO ALONG WITH ANSWERS DOWNLOAD THE PASTPAPER HERE

Section A: Short Answer Questions (40 marks)

Question 1: Stages of the Entrepreneurial Process (5 marks)

This question tests the five stages of the innovation development lifecycle. Matching each description to the correct stage:

• A) Concept Development: evaluating which business ideas present viable opportunities worth developing further.
• B) Idea Generation: identifying and validating a potentially profitable business idea.
• C) Actualisation: executing business operations after securing funding and assembling a team.
• D) Harvesting: realising returns on investment through sale, expansion, or exit.
• E) Resourcing: securing the financial and non-financial resources needed to bring the concept to life.

Tip: A common mistake is swapping Idea Generation and Concept Development. Remember: you generate an idea first, then you evaluate/develop the concept.

Question 2: Environmental Scanning Tools (2 marks)

Answer: C) Products that customer like

Interviews, observation, and focused group discussions are all recognised environmental scanning tools used to gather market intelligence. "Products that customer like" is an outcome of research, not a scanning tool itself.

Question 3: Making Goals SMART (4 marks)

SMART goals must be Specific, Measurable, Achievable, Relevant, and Time-bound.

• A) "We want to increase sales by 10% next quarter" — this is almost SMART already, but needs a specific baseline and deadline. A corrected version: "We will increase sales revenue from 5,000,000 Frw to 5,500,000 Frw by the end of Q3 2025, through targeted promotions to existing customers."
• B) "I want to get a bicycle", this is vague and has no measurable target or deadline. A corrected version: "I will save 150,000 Frw to purchase a bicycle for business deliveries within the next 4 months by setting aside 37,500 Frw monthly from my income."

Question 4: Elements of Market Research (2 marks)

Answer: D) Communication Survey

Customer survey, product survey, and supplier survey are standard market research elements. "Communication survey" is not a recognised category of market research in the entrepreneurship syllabus.

Question 5: Indicators of Business Growth (2 marks)

Answer: B) Working place challenges

Availability of market, enough capital, and competent business management are all positive indicators that support business growth. Working place challenges represent a constraint, not a growth indicator.

Question 6: Development Terms (2 marks)

• A) Development: the improvement of people's lifestyles through improved education, incomes, skills, and employment.
• B) Economic growth: the gradual, persistent increase in quality and quantity of goods and services enjoyed by a community or country.

Question 7: Contracts: True or False (2 marks)

• A) False: A public reward offer for finding a lost item (a "unilateral offer") is generally not treated as a binding business contract in the same sense as a mutual agreement, since there's no negotiated exchange of obligations between two identified parties.
• B) True: John's written commitment to provide printing services to Umuhire on agreed terms satisfies the basic elements of a business contract: offer, terms, and intention to be bound.

Question 8: Filing Systems (4 marks)

Question 9: Cash Book Terms (4 marks)

• A) When all transactions have been fully recorded in the cash book, both debit side and credit side are totalled, then the totals are shown after underlining the last amounts on the same row.
• B) The balance carried down (c/d) or brought down (b/d) is then placed below the total but on the opposite side, to balance the transaction.

Question 10: Project Monitoring — True or False (2 marks)

• A) True: Frequency of monitoring will be determined by the nature of the project.
• B) True: A good-quality Environmental Impact Assessment (EIA) might still lead to a planned development not being permitted, based on the identified impacts.

Question 11: Calculating Fiscal (Taxable) Income (3 marks)

This is a calculation question, so we show full working as the marking scheme requires:

Accounting income = 960,000 Frw
Less: Other deductible expenses = 90,000 Frw

Fiscal (Taxable) Income = 960,000 − 90,000 = 870,000 Frw

Important note: The "30% of profit put in reserve" is a profit appropriation (a decision on what to do with after-tax profit), not a tax-deductible business expense. Only genuine deductible expenses reduce fiscal income — appropriations of profit do not. This is a common trap in this question type.

Question 12: Inventory Valuation Methods (2 marks)

• A) LIFO (Last In, First Out): the last asset acquired is the first asset sold.
• B) FIFO (First In, First Out): assets produced or acquired first are sold, used, or disposed of first.

Question 13: Job Description (2 marks)

Answer: B) Job description

A job description is the written statement outlining the duties and responsibilities involved in performing a job, as distinct from a job offer, job advertising, or job analysis.

Question 14: Emergency Management Steps (2 marks)

The standard emergency management cycle in order:

• 1st:  Prevention
• 2nd:  Preparedness
• 3rd:  Response
• 4th:  Recovery

Question 15: Financial Markets Matching (2 marks)

• A) Primary market → II) the market for new issuers or where new capital is raised.
• B) Capital market → IV) the market for intermediate or long-term debt and corporate stocks.
• C) Money market → I) the market for short-term, highly liquid debt securities.
• D) Spot market → III) the market in which assets are bought or sold for "on-the-spot" delivery.

Section B: Long Answer Questions — Answer any THREE (30 marks)

Question 16: Business Laws (10 marks)

• A) Consumer protection law: guards against unfair trade practices that harm buyers in the marketplace.
• B) Public health law:  improves population health using deterrents and punishment.
• C) Weighing and measuring law:  ensures sellers use acceptable scales and measurements.
• D) The trading license act:  requires all businesses to obtain trading licences before operating.
• E) Environmental law:  protects the environment at all stages of land use, development, and business operations.
• F) The land Act:  provides for the tenure, ownership, and management of land.
• G) Food and drugs law:  ensures expired drugs and bad foods are not sold to customers.
• H) Law of contracts:  enforces contracts between contracting parties.
• I) Commercial law:  relates to the buying and selling of goods and services.
• J) Civil Law. deals with disputes between individuals or organisations, such as contracts or property rights.

Question 17: Journal vs Ledger (10 marks)

Question 18: Challenges of Using ICT in Business (10 marks)

Five common ICT-related challenges faced by businesses in a typical Rwandan community context:

1. High cost of equipment and internet access:  computers, smartphones, and reliable data bundles remain expensive for many small business owners, limiting adoption.
2. Inconsistent power and network connectivity:  frequent power outages or weak network coverage, especially in rural areas, disrupt ICT-dependent operations like mobile money and online ordering.
3. Low digital literacy:  many entrepreneurs and employees lack the skills to use computers, accounting software, or e-commerce platforms effectively.
4. Cybersecurity risks:  businesses using digital payment systems or storing customer data are exposed to fraud, hacking, and data theft, especially without proper security measures.
5. Resistance to change:  some business owners and older staff members are reluctant to shift from traditional manual methods (paper records, cash-only transactions) to digital systems.

Question 19: Statement of Owner's Equity (10 marks)

Nyirabisabo's Bags Shop:  Statement of Owner's Equity for the Quarter Ended 16th July 2025

Working: 65,000,000 − 10,000,000 − 5,000,000 = 50,000,000 Frw

Section C: Application Questions:  Answer any TWO (30 marks)

Question 20: Break-Even Point Analysis: "Chocolate" Product (15 marks)

Selling price per unit = 750 Frw
Direct material = 200 Frw
Direct labour = 75 Frw
Variable overheads = 25 Frw
Fixed cost per period = 900,000 Frw

a) Variable cost per unit (2 marks)

Variable cost = 200 + 75 + 25 = 300 Frw per unit

b) Break-Even Point in quantity and value (6 marks)

First find contribution per unit:

Contribution per unit = Selling price − Variable cost = 750 − 300 = 450 Frw

BEP in quantity:

BEP (units) = Fixed Cost ÷ Contribution per unit = 900,000 ÷ 450 = 2,000 units

BEP in value:

BEP (value) = BEP units × Selling price = 2,000 × 750 = 1,500,000 Frw

c) Quantity to produce for a target profit of 450,000 Frw (4 marks)

Required units = (Fixed Cost + Target Profit) ÷ Contribution per unit = (900,000 + 450,000) ÷ 450 = 1,350,000 ÷ 450 = 3,000 units

d) Contribution per unit (3 marks)

Contribution per unit = 750 − 300 = 450 Frw

Question 21: Business Plan Using the Business Model Canvas: Ineza Mary's Restaurant (15 marks)

The question asks for any 5 key points of the Business Model Canvas, clearly explained, for Ineza Mary's small restaurant business in Kibeho Sector, Nyaruguru District.

• 1. Customer Segments: Local residents, students, travelers passing through Kibeho, and small traders in the sector who need quick, affordable meals such as tea, milk, doughnuts, and full meals during the day.
• 2. Value Proposition: Fresh, affordable, and quickly served local food (rice, beans, potatoes, vegetables, fruits) and snacks (amandazi, chapatti) in a convenient location within the community, saving customers time and travel.
• 3. Channels: A physical restaurant location in Kibeho Sector, word-of-mouth referrals, and direct phone orders via 0799999999 for takeaway requests.
• 4. Revenue Streams: Direct cash sales of food and drinks per item/plate, with potential for bulk orders for local events, meetings, or celebrations.
• 5. Key Resources: Cooking equipment, ingredients/raw food supplies, the restaurant premises, and trained kitchen staff to prepare and serve customers efficiently.

(Other valid canvas elements a student could also choose: Key Activities — daily food preparation and customer service; Key Partners — local food and ingredient suppliers; Cost Structure — ingredients, rent, staff wages; Customer Relationships — friendly, personalised service that builds repeat customers.)

Question 22: Business Plan Pitch:  Ineza Mary's Restaurant (15 marks)

This question must be answered in the first person, as Ineza Mary, without including the candidate's own identifying details. A strong pitch covers: the problem/opportunity, the solution, the target market, why now, and the ask (funding need).

"Good morning. My name is Ineza Mary, and I am from Kibeho Sector in Nyaruguru District. I have identified an opportunity to open a small restaurant in my community, where residents, students, and travelers currently have limited access to quick, affordable, and quality food. My restaurant will serve tea, milk, water, doughnuts (amandazi), chapatti, and full meals such as rice, potatoes, beans, vegetables, and fruits, prepared fresh daily.

My target customers are local residents, students from nearby schools, and travelers passing through Kibeho who need convenient and reliable meal options. Umurenge SACCO has advised me that I need start-up capital to secure premises, purchase cooking equipment, and buy initial stock of ingredients.

I am requesting funding support to launch this restaurant, which I am confident will generate steady daily income, create local employment opportunities, and meet a real, unmet need in my community. For any inquiries, I can be reached at 0799999999."

Frequently Asked Questions

What date was the S6 Entrepreneurship II 2025 national exam?
The exam was sat on 11th July 2025, from 8:30 AM to 11:30 AM, lasting 3 hours, under code 019.

Which combinations sit Entrepreneurship II?
Entrepreneurship II is sat by all Science combinations, all Humanities combinations, and all Languages combinations at S6 level under the REB curriculum.

How is the BEP (Break-Even Point) calculated?
BEP in units = Fixed Costs ÷ Contribution per unit, where Contribution per unit = Selling Price − Variable Cost per unit. BEP in value = BEP units × Selling price.

Is the profit appropriated to reserve included when calculating fiscal income?
No. Profit appropriated to reserve is a decision on how after-tax profit is used, not a deductible business expense, so it does not reduce taxable (fiscal) income.

Where can I get more help with Entrepreneurship II topics like business plans and financial statements?
Mathrone Academy connects S6 students with qualified private tutors across Rwanda for one-on-one or group support in Entrepreneurship, Accounting, and all REB subjects — both online and at-home.

Need Help Mastering Entrepreneurship II?

Whether it's break-even analysis, financial statements, or writing a business plan pitch that actually scores full marks, a private tutor can walk you through past papers like this one question by question. Find a verified Entrepreneurship tutor on Mathrone Academy for personalised, exam-focused support, or explore our structured Entrepreneurship courses to build mastery from the ground up.

Need a calculator or stationery for revision? Check out our Mathrone Academy shop for scientific calculators and exam essentials.

Looking for more past paper solutions? Browse our growing library of S6 Mathematics II solutions, S6 Physics solutions, and more in our News & Resources hub.

⚠️Important Disclaimer

The solutions on this page are prepared by the Mathrone Academy team for revision and learning purposes only. This is not an official NESA marking scheme or REB-approved answer guide. While every effort has been made to ensure accuracy, answers and explanations may differ from the official examiners' marking guide. Always refer to your school teacher or the official NESA publications for authoritative marking guidance. Mathrone Academy accepts no responsibility for any discrepancies between these solutions and official results