2. Give THREE reasons why consumers make choice whenever they want to satisfy humanwants. 3mks

3. Highlight FOUR factors that can promote occupational mobility of labour. 4mks

4. Give FOUR qualities of a good entrepreneur. 4mks

5. Highlight FOUR ways in which an open office lay-out can contribute to efficiency in office operations. 4mks

6. A wholesaler sold 20 bags of maize at Kshs. 1200 each to a retailer. The retailer was allowed atrade discountof 10% and cash discount of 3% if payment was made within a month. Calculate the total amount of money the retailer paid if the payment was made within a week.

4mks

7. Distinguish between

(a)A firm and industry. 2mks

(b) Direct costs and indirect costs. 2mks

8. Highlight FOUR ways in which the government can promote the location of business enterprises in a given area 4mks

9. Complete the table below relating to the trading accounts of businesses X and Y. 2mks*Tso*

BUSINESS

OPENING STOCK

PURCHASES

CLOSING STOCK

GROSS PROFIT

SALES

X

2000

7,500

800

10,400

Y

3,500

24,600

4000

30,000

10. State FOUR reasons why a trader would issue a statement of account to buyers 4mks

11. Outline FOUR disadvantages of ageing population. 4mks

12. Give FOUR uses of a bill of lading 4mks

13. Highlight FOUR reasons why air transport is the best suited for transporting valuable goods. 14. Jaja traders had a closing capital of Kshs. 280,000 on 31st December 2002. During the same year the following information was found in their books.:- 4mks

Kshs.

Gross profit 48,000

Total expenses 35,000

Drawings 6,000

Additional Investment 28,000

Calculate the opening capital for the year 2002.

15. Outline FOUR importance of a bonded warehouse to the government. 4mks

16.

(a) Identify the market structure 1mk

(b) Give reasons for the shape of the curve above. 3mks

The following transactions took place during the month of November 2005.

Took cash Kshs. 3,500 for personal use

Sold van at Kshs. 80,000 and was paid by cheque

Bought goods worth Kshs. 2,000 on credit.

Prepare new balance sheet at the end of November for Onyoni traders. 5mks

18. Outline FOUR distribution channels for locally produced agricultural products. 4mks

19. Identify the motive of holding money in each of the circumstances below: 3mks

(a) Need to hold money to cater for future unforeseen eventualities

(b) Need to have money to cater for daily expenses

(c) Need to have money with hopes that prices will fall in future in order to purchase more