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Questions 1. Outline fourreasons for establishment of a business enterprise. 4mks 2. Identify four documents used in the delivery process in hometrade. 4mks 3. Outline

Questions

1. Outline fourreasons for establishment of a business enterprise. 4mks

2. Identify four documents used in the delivery process in hometrade. 4mks

3. Outline three basic qualities of an office worker. 3mks

4.Outline four ways in which the government influences the quantity of a commodity

supplied. 4mks

5. Highlight four factors that may be used in determining the size of a firm. 4mks

6. Outline four uses of a general journal. 4mks

7. Identify four type of taxes levied on businesses in Kenya. 4mks

8. The Central Bank is a banker to the government.Outline four banking services that it provides to the government. 4mks

9. The following information was extracted from the books of Kabila Traders for the year ended 31st December, 2003.

shs

Capital on 1st January 2003 270,000

Capital on 31st December 2003 320,000

Drawings during the year 100,000

Additional capital introduced

during the year 2003 30,000

Calculate Kabila Traders Ltd's profit or loss for the year ended 31st December 2003

3mks

10. Identify four sources of monopoly powers.

11. Under what circumstances would a common carrier refuse to transport goods of a particular trader 4mks

12. Highlight four advantages of hire purchase to the seller. 4mks

13. The following balances were extracted from the books of Njoroge traders on 31st May 2004.

Shs

Creditors 62,500

Stock 2,000

2 years bank loan 40,000

Bank 160,000

Cash 20,000

Premises 800,000

Prepare his balance sheet 4mks

14. Record the following transactions in the relevant ledger accounts.

2004

June 1Ochieng started a business with shs.50,000 cash

"4Bought office equipment for shs. 2,000

"6 Deposited shs.12,000 into the business bank account

"8 Bought stock for the shs.10,000

(Balancing of accounts not required) 4mks

15. Differentiate between circular letters and Memoranda. 4mks

Letters

Memoranda

State four effects of fixing maximum price at Po. 4mks

17. Outline four characteristics of insurable risks. 4mks

18. Outline four factors to consider when deciding on an ideal office layout. 4mks

19. The following information was extracted from the books of Bondo Traders as at 31st December, 2004.

Shs

Opening stock 2,500

Purchases 46,000

Closing Stock 1,500

Mark up 20%

Prepare trading account. 4mks

20. The following transactions relate to Kabala Traders for the month of December, 2004.

2nd December:Cash sales shs. 30,000

8th December: Banked sh. 15,000

10th December: withdrew sh. 10,000 from bank for office use.

Prepare cash extract. 5mks

21. Identify four advantages of export processing zones to a country. 4mks

22. Outline four benefits that a country gets by being a member of the international monetary fund (IMF) 4mks

23. Identify four short falls of after sales service as a method of sales promotion to the buyers. 4mks*BND*

24. State four circumstances under which a country's terms of trade would be unfavourable.

4mks

25. The following assets and liabilities were available as at 1st January, 2005.

Shs

Cash in hand 43,000

Furniture 19,000

Telephone bills due 3,000

Rent outstanding 8,000

Electricity prepaid 4,000

Debtors 19,000

(a) Prepare statement of affairs as at 1st January 2005. 4mks

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