. A lucrative manufacturing firm has been constantly releasing toxic waste into the neighborhood. Outline four measures you can take to stop the firm from such malpractice. (a)........................................................................................................................... (b)........................................................................................................................... (c)............................................................................................................................ (d)........................................................................................................................... 4 marks 7. State four effects of seasonal unemployment to the society. (a)........................................................................................................................... (b)........................................................................................................................... (c)........................................................................................................................... (d)........................................................................................................................... 4 marks 8. Outline four requirements for opening a current account with a commercial bank(a)........................................................................................................................... (b)........................................................................................................................... (c)........................................................................................................................... (d)..............................

2. (a) Kapa Oil manufacturers have decided to eliminate wholesalers in their chain of distribution. Outline FIVE possible effects that would result if wholesalers were eliminated. (10 marks) (b) Differentiate between a perfect competition from a monopolistic competition. (10 marks) 3. (a) Explain FIVE causes of inflation in an economy. (10 marks) (a) Outline FIVE challenges that Kenya faces when trying to implement her development plans. (10 marks) 4. (a) Explain FIVE reasons why a public limited company may prefer to raise finance through issue of ordinary shares instead of debentures. (10 marks) (b) The following balances were extracted from books of Masaku Traders for the year ended 31/12/2004 Rent 48,000 Lighting 7,200 Water 9,220 Salaries 75,000 Commission received 12,370 Discount allowed 4,600 Discount received 8,500 Gross profit 320,000 General expenses 98,000 Stock 25,250 Motor Vehicle 2,300,000 Furniture & equipment 650,000 Debtors 270,000 Creditors 396,400 Bank 200,000 Cash 50,000 Capital 3,000,000 Prepare (i) Profit and loss a/c for the year ended 31/12/2004 (5 marks) (ii) Balance sheet as at 31/12/2004 (4 marks) 5. (a) Explain SIX measures that the Government of Kenya may take to control her persistent Balance of payment deficit. (12 marks) (b) Outline FOUR differences between endowment policy and whole life policy. (8 marks) 6. (a) Explain FIVE factors that limit the usage of Railway as a means of transport. (10 marks) (b) The accounts of Hakuna Matata Traders showed the following balances on 1st January 2014. Sh. Cash 250,000 Debtors 60,000 Creditors 42,000 Stock 30,000 Bank loan 120,000 Motor vehicle 310,000 The following transactions took place during the month of January 2014. Jan 2: Bought stock worth Sh. 50,000 on credit. Jan 3: Cash sales Sh. 80,000 Jan 5: Received Sh. 20,000 cash from debtors Jan 10: Paid part of loan Sh. 70,000 cash Jan 12: Paid creditors Sh. 52,000 Jan 16: Bought office furniture Sh. 45,000 cash Jan 20: Paid salaries Sh. 40,000 cash Jan 25: Deposited Sh. 100,000 into the bank Required: Record the above transactions in the relevant ledger accounts and balance the accounts on 31stJanuary 2014.

13. Outline FOUR ways of curbing cost push inflation. (4 Marks) 14. Outline FOUR circumstances under which the per capita income statistics would be a good indicator of the welfare of the citizens of country. (4 Marks) 15. Outline FOUR challenges associated with a high ageing population in a country. (4 Marks) 16. Outline FOUR purposes of taxation. (4 Marks) 17. State FOUR basis of international trade (4 Marks) 18. Outline FOUR methods that a country may use to restrict international trade.

19. State FOUR reasons why an invoice received is important in accounting. (4 Marks)

20. Outline FOUR items that are included when computing national income using the expenditure approach. (4 Marks)

21. Outline FOUR features of insurable risks

22. State FOUR features of chain stores. (4 Marks)

23. Outline FOUR factors that constitute an efficient transport system. (4 Marks)

24. State FOUR goals of development. (4 Marks)

25. Outline FOUR disadvantages of use of Automatic Teller Machines (ATMs) in banking.