(a) Explain five factors that will influence the choice of office layout to be adopted by a firm. (10 marks)

(b) Explain five advantages of a country belonging to a trading bloc. (10 marks)

2. (a) Explain five differences between a public corporation and a private limited company. (10 marks)

(b) Highlight five circumstances under which an insurance contract may be terminated.

(10 marks)

3. (a) Discuss five contributions of an efficient transport to the economic development of a

Country.(10 marks)

(b) Explain five benefits of retailers to wholesalers (10 marks)

4. (a) Describe five factors that may influence the firms decision on what products to produce.

(10 marks)

(b) Explain five challenges that may be experienced by a new entrepreneur who has just

establish a business in Kenya

5. (a) Explain five services offered by commercial banks to business people. (10 marks)

(b) The following transactions relates to David Traders for the month of December 2018.

Dec 1st started a business with sh. 200,000 in the Bank account.

2nd Bought furniture for sh, 50,000 and paid by cheque

3rd Sold goods on credit to Caleb shs, 20,000; Salau 10,000

4th Bought goods on credit from Rose sh 30,000; Kinga shs. 40,000

5th Returned faulty goods to Rose sh 5,000

6th Paid Rose on account by cheque less 10% cash discount.

7th Received faulty goods from Caleb shs. 2000

8th Received payment due from Caleb and Salau by cheque less 5% cash

discount.

9th Cash sales shs. 100,000

10th Paid for wages shs. 20,000 by cash and electricity shs.10,000 by cheque.

11th Deposited all the cash in hand into the bank account.

Required:Prepare three column cash book duly balanced. (10 marks)

6. (a) Discuss five factors to be considered when making a development plan in a less developed

countries. (10 marks)

(b) The following information was extracted from the books of James wholesalers for the

trading period ended June 2018.

Sh

Stock on 30.06.2017 40,000

Purchases 35,000

Sales 70,000

Return inwards 1,500

Return outwards 2,000

Discount allowed 2,100

Insurance 2,000

Transport 1,400

Discount received 8,000

Electricity 2,400

Rent received 3,000

Wages and salaries 5,000

Advertising 2,000

Stock 30. 06.2018 15,000

Prepare a trading profit and loss account for the year ended 30th June 2018. (10 marks)