1. a)Discuss FIVE functions of the budget as a planning tool. 10mks

Explain five adverse effects of a large population on the economic development of a

country. 10mks

2. a)ExplainFIVE reasons for trade restrictions. 10mks

b)Highlight FIVE differences between a private limited company and public corporation 10mks

3. a)Explain FIVE uses of national income statistics.

b)Discuss FIVE advantages of mobile phones in communication 10mks

4. a)Describe FIVE steps followed in personal selling. 10mks

b)Explain FIVE contributions of appropriate technology to the success of business enterprise. 10mks

5. a)Discuss FOUR types of marine Insurance. 8mks

b)Enter the following information to the relevant books of original and post to the ledger

10mks

Feb 1 Sales to Ng'eno goods worth shs.4500 invoice no. 458

Feb 4Sales to Njuguna goods worth shs.7,200 invoice no 213

Feb 12 Credit sales Ng'eno shs.8,000 invoice no. 469

Feb 17Invoice no.214 to P.K Ndoto shs.9,200

Feb 24Credit note no.102 from J. Ngeno shs.450

6. aExplain FIVE shortcomings of self employment 8mks

(b)from the following trial balance of Utumishi enterprises, draw up a trading, profit and loss for the year ended 31st December, 2004

Utumishi

Trial balance

As at 31-12-2004 *NDI*

General expenses 41,700

Opening stock 28,000

Motor expenses 51,450

Salaries 249,200

Insurance 27,440

Purchases 1,286,950

Sales 1,877,050

Motor vehicle 196,000

Creditors 361,200

Debtor 286,300

Premises 1,400,000

Cash at bank 96,250

Cash in hand 1,750

Capital 1,704,290

Drawings 304,500

3,942,540 3,942,540

Stock on 31st Dec. 2004 was valued at sh.40,000