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  1. Highlight four advantages of using modern technology in production. (4 marks)
  2. State four types of complaints that a consumer organization may receive from consumers. (4 marks)
  3. Outline four features of parastatals. (4 marks)
  4. State four reasons why ethical practice is necessary in product promotion. (4 marks)
  5. Outline four advantages of hire purchase to the buyer. (4 marks)
  6. State the ledger in which of the following accounts are kept.   (4 marks)
     Account  Ledger
     Rent a/c  
     Cash a/c  
     Debtors a/c  
     Creditors a/c  
  7. Outline four factors that may make a producer to by-pass a wholesaler when distributing goods. (4 marks)
  8.  Country X is experiencing unfavorable terms of trade.
    State four factors that are likely lead to such a situation. (4 marks
  9. The following are some of the source documents used in accounting: credit note issued, cash sale receipt, credit note received and invoice issued. Match each of the following books of original entry with the relevant source document.  (4 marks)
     Books of original entry   Source document
     Sales return book  
     Sales daily book  
     Purchases return book  
     Cash book  
  10. State four reasons why flower exporters would transport their produce by air rather than by sea. (4 marks)
  11. Outline four circumstances that may necessitate re-insurance. (4 marks)
  12. The following balances were extracted from the books of Saku traders on 31st march 2010.
     Fixed assets   300,000 
     Current assets  123,700
     Creditors  84,500
     5 year loan  125,000
    Determine the net worth of the business as at 31st march 2010. (4 marks)
  13. State four problems associated with development planning. (4 marks)
  14. Outline four demerits of indirect tax. (4 marks)
  15. List four factors that may limit entrepreneurs in an area. (4 marks)
  16. Outline four challenges that may be encountered when measuring national income using the output approach. (4 marks)
  17. The table below represents the demand schedule for tea leaves in 6 months in 2015.
     Months    1  2   3  4  5  6
     Quantity (kgs)  200  400  600  800  1000  1200
    Outline four causes of the trend in the table.  (4 marks)
  18. State four basic features of a market.   (4 marks)
  19. Sate four external factors that may negatively influence the operation of a business. (4 marks)
  20. Highlight four negative effects of inflation.   (4 marks)
  21. Outline four benefits to a business that uses its own warehouse.  (4 marks)
  22. The following balances were extracted from the books of Wekesa Traders on 31st December 2009.
     Item   Shillings 
     Capital  500,000
     Cash in hand  20,0000
     Building  200,000
     Furniture  25,000
     Motor Vehicle  400,000
     Creditors  18,000
     Debtors  36,000
     Bank  100,000
    Bank loan  263,000
    Using the above information prepare Wekesa traders trial balance as at 31st December 2009. (4 marks)
  23. Outline four reasons why hypermarkets are becoming increasingly popular in Kenya. (4 marks)
  24. The table below shows the age distribution of a country.

    Age in Years            % population
    0 – 15                               45
    16 – 55                             31
    56 and above                     24
    Highlight four negative economic implication of this age distribution to the country.  (4 marks)
  25. Outline four measures that a manager can take to improve the working environment in an office.  (4 marks)
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