Questions1. Distinguish the following pair of concepts(6mks)

(a)Transport and communication

(b)Warehouse and warehousing.

(c)Cheque and bankdraft

2. Explain the role played by transport as an aids to trade (4mks)

3. Outline any four circumstances under which a manufacturer would sell goods directly to

consumers (4mks)

4. Highlight any four reasons why a government may set up parastatals to supply essential

goods to its people (4mks)

5. Mention any four factors that account for the high demand for cellphones/mobile phones in

Kenya today(4mks)

6. State any four characteristics of human wants (4mks)

7. The table below shows various forms of production. Indicate using a tick the correct

classification in the appropriate column (5mks)

Form of production

Primary

Secondary

Tertiary

Transportation

Farming

Food processing

Retailing

Lumbering

8. Outline four sources of capital to co-operative societies (4mks)

9. Mr Ryan had he following assets and liabilities on 30th April 2002.

Kshs

Cash at bank23,100

Cash in hand 3,250

Debtors 45,300

Stock 48,200

Furniture 11,600

Motor-vehicle65,000

Creditors56,000

Bank loan 25,000

a)Calculate his capital(4mks)

10. Outline any four services rendered by a public warehouse(4mks)

11. Mention four ways in which commercial attaches in our foreign embassies help out our

traders(4mks)

12. Explain any three parties to a cheque(3mks)

13. Outline any four essentials of a warehouse (4mks)

14. Highlight any four forms of after-sales service that may be extended to a consumer. (4mks)

15. Outline any three qualities of an office worker(3mks)

16. Outline any four ways though which co-operatives help Agricultural development in

Kenya.(4mks)

17. The following balances were extracted from the books of Abdi Traders.

Kshs

Opening stock22000

Closing stock 26000

Purchases 349000

Expenses 120000

Sales500000

Capital 200000

Calculate :

(a)Margin percentage(3mks)

(b) Stock turn over (3mks)

(c) Cost of sales(2mks)

18. List any four principles of insurance(3mks)

19. Highlight any four reasons why international trade is said to be ofgreat importance to a

developing country(4mks)

20. Outline any four factors that have promoted the growth of commerce over the years(4mks)

21.Account for the popularity of supermarkets in Kenya today(4mks)

22.Why in your opinion do you think oral communication lost popularity in Kenya today.

(4mks)

23. Other than commercial banks, mention any other four financial institutions that provide

financial services in Kenya(4mks)

24. Name any three factors of production and their respective rewards