1.(a) Marketing boards are producer organizations set up to encourage and control the

selling of agricultural products. Discuss five functions of these organizations.

(10mks)

(b) Discuss five differences between a bank statement and a bank pass book. (10mks)

2.(a) Despite major development in the transport sector. Many people are still using carts (both those driven by animals and those pushed by human beings).

3.Discuss five reasons to show why this type of transport is still preferable to others.

(10mks)

4.Money evolved through several stages to get to the currency notes and coins we

have today. However Modern - day trade may compare negatively with barter

trade.

5.Discuss this statement giving it your support. (10mks)

6.(a) A business enterprise should keep a budget other than the other statements it

keeps.

7. Discuss reasons why this activity is important. (10mks)

You are the sales manager of speed Industries Ltd. that manufactures tyres.

You are faced with the decision to choose an appropriate channel to distribute the

product.

8. Discuss the factors you consider in your choice. (10mks)

9.(a) Mail order business is whereby customers place their orders through mail and goods

are also send through mail. This business is however not popular in Kenya.

10. Discuss five reasons to encourage your colleagues to start this type of business. (10mks)

11. Discuss the factors that influence the choice of a filing system in an organization. (10mks)

12. (a) Briefly explain the following terms as used in Capital structure of a company.

Registered capital. (2 mks)

Called - up capital. (2 mks)

Issued capital. (2 mks)

Paid - up capital. (2 mks)

Specialization is the separation of jobs, activities and processes so that every individual concentrates on what they can do best.

13. Name and explain four major such divisions.

(12mks)

14. (a) Discuss five benefits that the Kenyan government gets from Binded Warehouses. (10mks)

Mwachai BINAs books disclose the following information for the period ended

31 Dec. 1996.

Opening Stock 21000

Purchases 40000

Closing Stock 10000

Sales 82000

Returns inwards 2000

Motor Vehicle 10000

Rent 3000

Sales expenses 18000

Discount received 3000

15. Required: Draw up Mwachais trading profit and loss account for the period ended. (10mks)