8. In the spaces provided below, write the type of partner described by each of the following statements:

(4mks)

STATEMENT

PARTNER

(i) One who is below 18 years of age:

(ii) One who has unlimited liability:

(iii)One who gets involved in the daily running of the business

(iv) One who allows his / her name to be used in the business

9. You have been charged with a duty of preparing an Article of Association for your company. State four items that you

will include in your Article of Association.

(4mks)

10. Local leaders would like to see more business enterprises established within Nandi. Outline four measures the

government can take to encourage investments in this region.

(4mks)

11. Bucket Ltd is an international pharmaceutical company. Under what circumstances can the firm send its products to

customers by air transport?

(4mks)

12. The following are special delivery services provided by the Post Office:

(4mks)

Post Rest Ante, Speed Post, Business Reply Service, Express Delivery.

Match each description with item.

(i)

The arrangements to deliver the mail starts at the sender's post office............................................

(ii) The arrangement to deliver the mail starts at the addressee's post office........................................

(iii) Service offered to travelers who wish to receive correspondence while away from home...................

(iv) Service that relieves customer of postage expenses...................................................................

13. State four reasons why it is necessary to locate a bonded warehouse at the point of entry of a country.

(4mks)

14. Kazi Moto insured a motor vehicle against fire with Moto Motocompany by paying Kshs. 300,000. Later the car was

destroyed at a garage and a compensation of Kshs. 400,000 were paid. Using insurance terms, state what each of the

following stand for:

(4mks)

(i)

Kazi Moto....................................................................................

(ii) Fire:............................................................................................

(iii) Kshs. 300,000 .................................................................................

(iv) Moto Moto company:........................................................................

15. Below are terms used in sales promotions.

-

Competitive advertising.

-

Product advertising.

-

Informative advertising.

-

Institutional advertising.

- Primary demand advertising. Identify the most appropriate term descried in each of the following case. (4mks) (i) Aims at increasing the sales volume of the company's entire range of products (ii) Provides relevant information about producers products (iii) Seeks to popularize the business enterprise offering goods for sale. (iv) Seeks to promote the sale of a new variety of a company's product.. 16. Outline the procedures of taking an insurance policy on property. (4mks) 17. Kenya Cooperative Creamers (KCC) sell its dairy products directly to retailers. Highlight four factors that were considered in the choice of this channel of distribution. (4mks) 18. Identify four factors that may be contributing to income disparity between the rich and poor citizens in Kenya. (4mks) 19. The following information relates to Ogello Traders as at 31st December 2009. Capital (1-1-2009) Kshs. 100,000 Loss during the year Kshs. 40,000 Investment Kshs. 35,000 If the trader took goods worth Kshs. 15,000 during the year for private use, calculate the capital of the business as at 31.12.2009. (4mks) 20. Prepare Betty's trial balance from the following information. (4mks) Items Kshs. Purchase 130,000 Capital 150,000 Sales 165,000 Debtors 45,000 Creditors 40,000 Motor vehicles 120,000 Stock 50,000 Cash at Bank 10,000 21. Ondiko Traders had Kshs. 100,000 cash in had, Kshs. 243,000 cash at bank during the month of March 2008. The following transactions took place in that month. March 3 - Paid insurance Kshs. 5,000 cash. March 11 - Cash sales Kshs. 14,000 March 14 - Purchased equipment worth Kshs. 37,000 paying by cheque. March 20 - Deposited Kshs. 30,000 into Bank from cash till. March 31 - Took Kshs. 10,000 cash for personal use

1. (a) Explain any five benefits that a business which adopts an enclosed office layout enjoys. (10mks) (b) Discuss five emerging trends in Banking. (10mks) 2. (a) Explain five advantages of warehousing to the consumers. (10mks) (b) The following information relates to Bahari retailers for the month of January 2013. Invoices received Jan 6 Mandela Ltd shs. 70,000 12 Othiambo Traders shs. 150,000 18 Jua Kali Enterprises shs. 50,000 Invoices Jan 5 Jambini Traders shs. 10,000 10 Fedha Ltd shs. 100,000 15 Kalu Works Ltd shs. 120,000 Credit Note issued Jan 5 Jambini Traders shs. 12,000 13 Fadhili Ltd shs. 6,000 Credit Note received Jan 7 Mandela Ltd shs. 5,000 14 Othiambo Traders shs. 1,000 Additional Information: Jan 8 Sold machinery on credit to Kwetu retailers shs. 50,000 9 Bought electronic equipment on credit from lowland retailersshs. 8,000 10 Brought shs. 5,000 cash into the business from own sources. Required: Record the above transactions in the appropriate diary books. (10mks) 3. (a) Describe any five types of unemployment experienced in Kenya. (10mks) (b) Under what circumstances would a producer use wholesaler in distributing farm produce. (10mks) 4. (a) Discuss fivefactors that influence the level of National Income of a country. (10mks) (b) Outline any five differences between Partnerships and Cooperative societies. (10mks) 5. (a) Explain five factors that an insurance company will consider before determining the premium to charge an applicant for an assurance policy. (10mks) (b) The following information relates to the books of Mwalimu Traders as a 31st December 2014. Sale 670,000 Purchases 380,000 Opening stock 60,000 Closing stock 40,000 Return inwards 70,000 Carriage on purchases 10,000 Commission received 15,000 Rent paid 18,000 Salaries and wages 33,000 Postage 2,000 Discount received 7,000 Travelling 12,000 Repair and maintenance 4,000 Required: Prepare Mwalimu Traders Trading Profit & Loss Account for the year ended 31st December 2014. (10mks) 6. (a) With the aid of a diagram, explain the effects of increase in consumer's level of income on the equilibrium point. (10mks) (b) Explain five ways in which the government may promote local trade.