1. State any four advantages of a wholesaler to a consumer 4mks

2.List four qualities of good filing system 4mks

3.What type of demand is potrayed by curve DD 2 mks

Outline the two causes of this curve 2mks

4.Why would an exporter prefer to use container services as a method of transport 4mks

5.State any four after sales services business firm selling electronic goods sets can offer

to the customers 4mks

6. The following information was extracted from the books of a trader :

Creditors sh 60,000

Cash at bank 20,000

Debtors 40,000

Stock 70,000

Calculate :

Current ratio 3mks

Quick ratio 2mks

7. Give four reasons why the budget is an important government tool of control to the economy 4mks

8. Differentiate between Balance of trade and Balance of payments 4mks

9. The following information was extracted from the books of Roadside kiosk as at

Sept 30th 1999:

Cash at hand Shs. 30,000

Capital 170,000

Creditors 40,000

Stock 70,000

Purchases 150,000

Sales 205,000

Debtors 65,000

Motor vehicles 100,000

9. Prepare trial balance as at 30th Sept 1999. 5mks

10. What are the four methods of personal selling carried out by salesmen 4mks

11. In the recent past many countries have adopted trade liberalization as the way forward to development. Highlight any four adverse effects that such nations may experience due

to liberalization 4mks

12.Outline any four functions of the Nairobi stock exchange 4mks

13. List four methods used by the central bank of Kenya in credit control 4mks

14. Consumer protection is safeguarding consumers from exploitation by producers and businessmen .

15. Give four reasons why this is necessary 4mks

16. The following is a demand/ supply schedule for kerosene. Draw a diagram to illustrate

using your own scale 5mks

Also find the equilibrium price / quantities

Price Quantity Demanded Quantity Supplied

Per day Per day

5 60 10

7 50 15

10 40 20

15 35 25

20 30 30

25 25 35

30 20 40

Name four characteristics that should be posed by goods in order for them to be described

as wealth. 4 mks

Limited companies are Large Organizations which attract large profits. However these undertakings are still not popular in Kenya and sole proprietorship seems to be more

popular. Give four reasons to explain this 4 mks

Give four reasons why most organization prefer oral interviews whenever they are

recruiting new employees/staff 4 mks

The law of demand states that Other things being equal, a fall in price will lead to an

increase in quantity demanded .Highlight any Four circumstances under which this

law may not hold. 4 mks

In the spaces provided below indicate the level of production that relates to each of the following activities

Activity Level of production

Selling goods in a shop __________________________________

Fishing from a river __________________________________

Growing maize __________________________________

Making leather belts __________________________________

4 mks

Enter the following transaction into a cash book and balance it as at 20th March 1995.

March 2nd started business with Kshs. 28,000 of which Kshs. 8000 was banked .

March 4. Bought stock from Nekesa worth Kshs 2000 and paid by cheque.

March 6. Paid wages in cash Ksh 4000.

March 10.Received a cheque for Kshs. 3000 from a debtor

March 20. Deposited cash in bank from cash till Kshs. 3000. 5 mks

State any four benefits accruing as a result of SmithKline Beecham merging with Glaxowellcome 4 mks

The sales from Mambo stores for the year 1999was Ksh 99,000. Given that goods are

usually sold at a margin of 20%, what was the gross profit for the year. 3 mks

Differentiate between

C.W.O and C.O.D 2 mks

F.O.B and F.A.S 2 mks