1. Mention four limitations of advertising as a means of sales promotion. (4mks)

2. The capital structure of a company is divided. Name four such divisions. (4mk)

3. List down four features of co-operative society. (4mks)

4. Indicate the account in which the following entries as made. (4mks)

Entry

Account

Bad debts

Carriage inwards

Returns inwards

Discounts given

Gross profit

Purchases

Drawings

Pre-paid rent

5. Highlight four ways in which Insurance companies make profits. (4mks)

6. The major objective in commerce is to maximize profits. Highlight four ways in

which businesses can achieve this important objective. (4mks)

Use the following information to Calculate the required ratios.

Sundry debtors 52,000

Stock 5,000

Cash at bank 100,000

Capital 40,000

Net profit 16,000

Current liabilities 82,000

Calculate:

Current ratio. (3mks)

Quick ratio. (2mks)

7. Mention four types of wholesalers. (4mks)

8. List down four machines used in the mail nom and their use. (4mks)

The law of demand applies ceteris penbus all other factors held constant ).

9. Highlight four circumstances under which this law may not hold. (4mks)

As the transport manager of a busy company.

10 .Highlight four factors you would consider

before choosing a mode of transport for your goods and services. (4mks)

The following balances were extracted from the books of Beauty Care Enterprises on

31st of March 1997.

Shs.

Fixed Assets 42,000

Stock 48,000

Debtors 50,000

Bank overdraft 25,000

Creditors 40,000

Cash in hand 2,000

12. During the month of April the following transactions took place.

Bought Motor Vehicle on credit valued at kshs. 80,000 from General motors.

With drew Sh. 28,000 for personal use.

Required: Prepare balance sheet as at April 30th 1997. (5mks)

13. Give four reasons why an office may prefer storing information in Micro-films instead

of files. (4mks)

14. Name four documents used in home trade. (4mks)

15. Mention four reasons to justify that the Central Bank is not a Commercial Bank. (4mks)

Give four reasons why people prefer using a cheque to cash when effecting payment. (4mks)

The following information relates to Sis Mis traders for the year ended 31st Dec 1996.

Opening stock

Closing stock turnover 8 times

Sales for the year 293,000

Determine:

Cost of sales

Purchases

Gross profit or Gross loss. (5mks)

18. Give four advantages of personal selling as a means of sales promotion. (4mks)

19. Mention four of the contents in articles of association. (4mks)

International trade improves the economic welfare of a country. The recent opening

of the East African co-operation seeks to diversify International trade. Highlight four

factors that may hinder this good intention. (4mks)

The following balances relates to a business for the year ended 31 Dec 1990.

Capital as at 31 December 1990 170,000

Drawings for the year 5,000

Net profit for the year 5,000

Extra capital introduced 52,000

Purchases 20,000

Determine the amount of capital as at 1 Jan. 1990 (3mks)

(ii) Net profit ratio. (2mks)

22. Give four functions of commercial attaches. (4mks)

23. Mention four investment services offered by the Kenya Posts and Telecommunications.

(4mks)

24. Name four file covers used in an office.