1. Highlight five reasons why the government trains business people. (10 mks)

b) Explain five roles that intermediaries play in the distribution of goods and services. (10 mks)20 marks

2. a) Discuss six reasons why many Kenyans are increasingly shopping in supermarkets. (12 mks)

b) The government has plans to construct a major seaport at Lamu. Explain four benefits that may accrue to the country from this new port at Lamu. (8 mks)20 marks

3. a) Explain five advantages of a public limited company as a form of business. (10 mks)

b) The following balances relate to Msafiri Traders as at 31st December, 2012:

b) The following balances relate to Msafiri Traders as at 31st December, 2012: shs Purchases 900,000 Stock, 1/1/2012 230,000 Buildings 1,200,000 Motor vehicles 750,000 Returns outwards 50,000 Debtors 190,000 Creditors 310,000 Loan from IDB 600,000 Cash at hand 130,000 Cash at bank 270,000 Drawings 100,000 Capital 1,840,000 Net profit 170,000 Stock, 31/12/2012 280,000 Expenses (including carriage inwards, shs, 150,000) 250,000 REQUIRED: i) Balance sheet as at 31st December, 2011. (6 mks) ii) Calculate: - Mark-up percentage. (2 mks) - Return on capital employed. (2 mks)6. a) On 1st June 2011, Nyati Traders had cash in hand of sh25,000 and sh56,200 at bank. During the th, the following transactions took place: 2011 June 2 Cash sales, sh42,000. June 5 Received a cheque of sh70,500 from Butala Traders after deducting a 6% cash discount. June 8 Paid salaries, sh24,000 in cash. June 9 Kivuitu settled his account of sh45,000 in cash and was allowed shl,800 cash discount. June 12 Cashsales sh46,500. June 18 Paid Tuiei's debt of sh 100,000 by cheque after deducting 5% cash discount. June 24 Withdrew sh26,000 from the bank for office use. June 30 Banked all the cash except sh25,900. Prepare a 3-column cashbook and balance it off on 30th June, 2011. (10 mks)