1. State four types of complaints that a consumer organization may receive from consumers. (4 marks)

(a) ...........................................................................................

(b) .............................................................................................

(c) ............................................................................................

(d) ..........................................................................................

2. The following terms relate to mommunitaction: vertical, horizontal, formal and informal. Write the appriate term of communication associated with each of the following statements. Statement Terms

(a) A manager gives instructions to a supervisor in division h

(b) Rumours going around that the most disciplined workers will be rewarded.

(c) A manager issues a general circular to the empl o

(d) Prefects discussing discipline in their school

3. Outline three features of a Re - insurance company

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

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

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

4. A firm wishes to introduce a new product into the market. Outline four factors that should be considered in choosing an appropriate medium for promotion.

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

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

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

5. The diagram below shows the current demand for petrol. o Qo Quantity

a) What is the effect of a fall in the price of cars on demand for petrol? 2mks)

..................................................................................................... ....................................................................................................

b) Draw a new demand curve on the diagram above to show the effect of a fall in price or cars. (2mks)

6. State four ways in which production activities may negatively impact on community health.

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

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

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

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

7. Outline four negative effects of an ageing population to an economy. (4mks)

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

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

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

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

8. The following are some of the accounts available to customers in the Kenyan banking industry: Current account, savings account and Fixed deposit account. Give the account that corresponds to each of the descriptions given below. (4mks)

Price Do Po Do .

Description Type of Account

(a) Account holders require to deposit a specific initi amount as well as maintain a minimum balance a

(b ) Account holder may deposit and withdraw money whenever they want without maintaining a minim balance

(c) Banks pay interest on the deposit at comparativel rates. y

(d ) Money may be deposited at any time and interest earned if a specified balance is maintained i 9. The following are some of the documents used in home trade: Cash sale receipt, catalogue, invoice and statement of account. Match each document with the appropriate description provided in the table below. Description Document

(a) Shows details of goods offered for sale.

(b) Give quantity, unit price and total amount to b

(c) Shows transactions since the date of last state m

(d) Shows description of goods bought, prices an d amount paid.

10. The following diagram represents equilibrium position of a firm under perfect competition. . Label the parts represented by the letters a,b,c, and d

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

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

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

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

11. State four circumstances under which air transport may be used to ferry goods (4mks)

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

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

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

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

12. On 1 January 2006, Mzalendo Traders sh.180000 in cash and sh.170000 at bank. During the month, the following transactions took place: 2006 January 10 paid ABM Traders sh.25, 000 by cheque less sh.1000 Cash discount. 16 Sold goods for sh. 14,000 cash, less 5% discount 31 Banked all the cash except sh.5200

Enter the above transactions in cash book extract and balance it off.(5mks)