1.Write in full the following abbreviations:

i) Franco

ii) O.N.

iii) C.W.O

iv) I.O.U

2.Outline the difference between the following types of wholesalers:

i) Rack jobbers and drop shippers

ii) Specialized and generalized wholesalers.

3.State four circumstances under which a customer would prefer to be paid by a banker's cheque

4.Give four contents of a statement of account

5.State four limitation of hawking

6.State four disadvantages a person may experience when using credit cards

7.Name four commercial services which are useful to a manufacturer

8.Give four disadvantages of barter trade

11.Differentiate between the following documents used in home trade:

(a) Consignment note and delivery note

(b) Credit note and Debit note

12.A trader sold a bag of sugar at Kshs.4000. The buyer was allowed a trade discount of 10%. If he

pays the debt in two weeks and cash discount of 3% if payment is made within one month.

Calculate the amount the trader received if the buyer paid within 15days

14.State four circumstances under which a proforma invoice can be used

15.State four benefits of selling goods on hire purchase terms

16.List four advantages of hire purchase to the buyer

17.List four essentials of a bill of exchange

18.State four factors that determine the period for which documents should be stored

19.Identify four essentials of a valid bill of exchange

20.Mama Cindy purchased 100 packets of sweets worth kshs1625.if she was allowed a 5%

quantity discount and 2 % cash discount, calculate the price she paid per packets of sweets