1. State four advantages of operating a partnership form of business. (4mks)

a) ...................................................................................................

b) ...................................................................................................

c) ...................................................................................................

d) ...................................................................................................

2. Outline four risks against which a shopkeeper may insure. (4mks)

a) .................................................................................................

b) ..................................................................................................

c) ...................................................................................................

d) ..................................................................................................

3. Give four ways in which a government may participate in the operations of a state corporation. (4mks)

a) .....................................................................................................

b) ....................................................................................................

c) ...................................................................................................

d) ................................................................................................... .

4. Outline four considerations that a seller should take into account before giving credit to a new customer. (4mks)

a) ....................................................................................................

b) .................................................................................................

c) ................................................................................................

d) ....................................................................................................

5. The table below shows some of the occupations in production. Indicate the level of production associated with each of the occupations. (4mks)

Occupation Level of production

a) Mining _________________

b) Oil refining _________________

c) Insurance _________________

d) Teaching _________________

6. What are the advantages of personal selling as a method of sales promotion? (4mks) a)` .....................................................................................................

b) .....................................................................................................

c) .....................................................................................................

d) ....................................................................................................

7. The diagram below shows the demand and supply curves of a certain commodity and the corresponding equilibrium price (Po) and quantity (Qo). On the diagram, show the new equilibrium quantity and price as a result of an increase in the supply of the commodity. (4mks)

8. Give four assumptions that are associated with perfect competitor. (4mks)

a) ...................................................................................................

b) ......................................................................................................

c) ......................................................................................................

D So Price Eo Po So D Qo Quantity .

d) ........................................................................................................

9. List four types of unemployment in an economy and give the cause for each. (4mks)

a) ...................................................................................................... ...

b) ...................................................................................................... ...

c) ....................................................................................................... ...

d) ........................................................................................................ ...

10. What benefits may accrue to manufacturing firm that uses modern technology? (4mks)

a) ....................................................................................................... ...

b) ..................................................................................................... ....

c) ..................................................................................................... ...

d) ..................................................................................................... ...

11. Highlight four benefits of using electronic filing system. (4mks)

a) ....................................................................................................... ...

b) ....................................................................................................... ...

c) ....................................................................................................... ...

d) ....................................................................................................... ...

12. State four social responsibilities that a manufacturing firm should have on the community. (4mks)

a) .......................................................................................................

b) ........................................................................................................

c) .......................................................................................................

d) ........................................................................................................

13. What factors may encourage entrepreneurship in Kenya (4mks)

a) ...................................................................................................... ...

b) ...................................................................................................... ...

c) ......................................................................................................