Questios

1. Mention four limitations of advertising as a means of sales promotion. (4mks)

2. The capital structure of a company is divided. Name four such divisions.(4mk)

3. List down four features of co-operative society. (4mks)

4. Indicate the account in which the following entries as made. (4mks)

Entry

Account

Bad debts

Carriage inwards

Returns inwards

Discounts given

Gross profit

Purchases

Drawings

Pre-paid rent

5.Highlight four ways in which Insurance companies make profits. (4mks)

6.The major objectivein commerce is to maximize profits. Highlight four ways in

which businesses can achieve this important objective. (4mks)

7. Use the following information to Calculate the requiredratios.

Sundry debtors52,000

Stock5,000

Cash at bank100,000

Capital40,000

Net profit16,000

Current liabilities82,000

Calculate:

(i) Current ratio.(3mks)

(ii) Quick ratio.(2mks)

8.Mention four types of wholesalers18.Give four advantages of personal selling as a means of sales promotion. (4mks)

9.Mention four of the contents in articles of association. (4mks)

10.International trade improves the economic welfare of a country. The recent opening

of the East African co-operation seeks to diversify International trade. Highlight four

factors that may hinder this good intention. (4mks)

11.The following balances relates to a business for the year ended 31 Dec 1990.

Capital as at 31 December 1990170,000

Drawings for the year 5,000

Net profit for the year5,000

Extra capital introduced52,000

Purchases20,000

Determine the amount of capital as at 1 Jan. 1990(3mks)

(ii)Net profit ratio.(2mks)

12.Give four functions of commercial attaches.(4mks)

13.Mention four investment services offered by the Kenya Posts and Telecommunications.

(4mks)

14.Name four file covers used in an office.(4mks)

15. 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

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

17. 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)

18. 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)

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

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

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

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

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

Kenya.(4mks)

24. 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)

25. 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