1. What are the reasons that would make an individual engage in business? (4 marks)
2. List four types of utility and the production activity associated with each of them. (4 marks)
3. Outline four ways in which the office facilitates effective handling of documents. (4 marks)
4. Highlight four factors that may influence a consumer to purchase products from a kiosk rather than a supermarket. (4 marks)
5. State four circumstances under which hire purchase may be used to acquire goods. (4 marks)
6. Give four reasons for the increased use of mobile phones when banking. (4 marks)
7. Outline four methods that the Government of Kenya uses to regulate business activities.(4 marks)
8. State four disadvantages of using the internet as a means of communication. (4 marks)
9. State four differences between life assurance and general insurance. (4 marks)
10. Give four reasons for observing ethical practices in product promotion. (4 marks)
11. The graph given below represents the demand and supply curves of milk.
State four effects of a shift of the demand curve to the right. (4 marks)
12. Outline four disadvantages that a manufacturer would suffer if wholesalers were eliminated from the chain of distribution. (4 marks)
13. The following balance sheet was incorrectly prepared.
PEMBE TATU TRADERS
FOR THE YEAR ENDED 31.12.12
Bank overdraft 5,000
Prepare a corrected balance sheet.(4 marks)
14 The following figures relate to Jumbo Traders for the year ended 31.12.13.
Capital (31.12.13) 940,000
Net loss 20,000
Additional investment 420,000
Monthly drawings 5,000
Determine the capital as at 1.01.13. (4 marks)
15. Identify the ledgers in which the following accounts are maintained. (5 marks)
16. List three levels of inflation. (3 marks)
17. Name the documents described by the statements given below used in International Trade. (4 marks)
(a) Request for payment before goods are delivered
(b) Shows ownership or title of goods imported
(c) Shows the country of manufacture of goods.
(d) Shows the transportation charges for goods.
18. The following Purchase Returns Journal relates to Farasi Traders.
PURCHASE RETURNS JOURNAL
Post the information above to the relevant ledger accounts. (4 marks)
19. Outline four goals of development to a country. (4 marks)
20. The following information relates to Kahawa Traders as at 31st December 2012.
Stock 1.1.12 Ksh 80,000
Stock 31.1.12 Ksh 120,000
Purchases Ksh 1,000,000
Prepare a trading account. (5 marks)
21. State four reasons that make it necessary for firms to maintain a healthy environment. (4 marks)
22. Highlight four benefits of business plan to an entrepreneur. (4 marks)
23. Outline four benefits of sea transport over air transport. (4 marks)
24. In which ways can an investor benefit from stock exchange? (4 marks)
25. State three clauses found in the Memorandum of Association. (3 marks)