1.Highlight four social responsibilities of a business to its costumers (4mks)

2.outline four roles played by the government in creating of an enabling business environment

3.Give four measures that may be taken by the government to reduce income inequalities in a country (4mks)

4.List four principles of a good tax system (4mks)

5.List four stages involved in staffing as a function of management (4mks)

6.Give four essential elements of a transport system (4mks)

7.The supply schedule for Mr. Okutoyi is shown below

Price quantity

(Ksh)

2 40

200

(a) Calculate the price elasticity of supply (2mks)

(b) Interpret the meaning of this elasticity of supply (1mk)

8.Highlight four causes of demand pull inflation in an economy (4mks)

9.List four disadvantages of buying goods on hire purchase terms over credit purchase(4mks)

10.Outline four conditions whichfavour the use of personal selling as a strategy of product promotion (4mks)

Highlight four barriers associated with written communication (4mks)

The balance sheet of King Kong Enterprises as at 31st May, 2004 is given below

King Kong Enterprises

Balance sheet

as at 1st may 2004

ASSETS KSH LIABILITIES KSH

Equipment 19,000 Capital 71,000

Delivery van 120,000 loan 120,000

Stock 36,000 creditors 19,000

Debtors 22,000

Cash in hand 13,000

210,000 210,000

The following transactions took place in the business.

May 2, paid creditors by cheque Sh. 9000

May 3, debtors paid Sh. 18000 by cheque and Sh. 2000 in cash

May 4, the proprietor deposited Sh. 50,000 into the business bank account from a cash prize won in a

competition

May 5, bought equipment Sh. 6000 and paid by cheque

May 6, paid a creditor Sh. 7500 by cheque

Required

Prepare the balance of the business as at 7th may 2004 (5mks)

The following information was obtained from Jakaila traders for the year ending 31st Dec, 2004

Sh

Debtors balance on 1st Jan 2004 24,000

Debtors balance on 31st Dec 2004 72,000

Discount allowed 18,000

Return inwards 5600

Cash received from debtors 298,000

Debtors dishonoured cheque 18,000

Discounts disallowed 500

Required

Determine the value of credit sales for the period ending 31st Dec 2004 (4mks)

Enter the following transactions in the ledger accounts of Onyango Traders for the month of May 2004. (4mks)

May 1: Started business with Sh. 150,000 cash

2: Bought goods on credit from Kamau for Sh. 40,000

4: Sold goods for cash Sh. 34,500

5: Returned some of the goods purchased from Kamau for Ksh. 4,500

Record the following transaction in the cashbook of Ole Polos traders for the month of January 2005 and balance it off. 1st Jan: Cash in hand Sh. 10,000, cash at bank Sh. 20,000

10th Jan: Paid by cheque Kamau Sh. 8,800 and Mogaka Sh. 11,000 after deducting 12% cash

discount in each case

30th Jan: Banked all the cash leaving Sh. 1200 in the cash till (5mks)

Majengo wholesalers operates with the following ledgers. Sales ledger, cashbook, nominal ledger, and general ledger. State the ledger in which the following accounts would be found.(4mks)

Account

Ledger

Sales

Purchases

Debtors

Creditors

Capital

Salaries

Commission received

Bank

Complete the following table by indicating the account to be debited and one to be credited (4mks)

Transaction

Account DR

Account CR

i) Bought a delivery van on credit from general motor Ltd

ii) Yialie, a proprietor converted private furniture into a business asset

iii) Withdrew cash from bank for business use

iv) Sold furniture and payment received by cheque

(4mks)

State the role of business community in environmental and community health management (4mks)

List four errors that will not affect the agreement of the trial balance (4mks)

Outline four benefits of a bonded warehouse to the government (4mks)

Outline four ways in which a trading account is important to a business (4mks)

Outline three ways in which the international bank for reconciliation and development (World Bank) promotes international trade (3mks)

Highlight four negative implications of a rapid population growth in developing countries(4mks)