1. State four types of business activities.(4mks)

(a)

(b)

(c)

(d)

1. Name four differences between an invoice and a pro-forma invoice(4mks)

PROFORMA INVOICE

INVOICE

(a)

(b)

(c)

(d)

1. State four roles of technology in a business.(4mks)
2. Outline four circumstances that may lead to the dissolution of a company.(4mks)
3. Given the following information, open accounts in the ledger books of Wairegi Traders

(4mks)

(a) On 1" Jan. 2006, started a business with shs. 20,000 in the bank

(b)Wairegi took four thousand shilling from the bank for paying school fees tor his son on Jan. 10^th 2006

1. Define the following terms,

(a) Globalization(2mks)

(b) Consumer protection(2mks)

1. Identify four internal economies of scale enjoyed by a business.(4mks)
2. State four causes of monopoly powers in a firm. (4mks)
3. The following are terms used in trade; Loco price, F.O.R, Franco ,F.O.B. Match each term with the appropriate description.(4mks)

Description

Term

(a) Price quoted covers the goods as they Are in the sellers premises

(b) Price quoted covers goods up to when they are in the ship

(c) Price quoted covers cost of goods and any other expenses up to the buyers premises

(d) Price quoted covers goods until they are loaded on rail

1. State four characteristics of fixed deposit accounts.(4mks)
2. From the following information of Otieno, prepare trading profit and loss account for the year ended 31^s'Dec 2006.(4mks)

Sales 1,200,000

Cost of sales800,000

Electricity200,000

Rent10,000

Motor car expenses16,000

1. Outline four causes of cost-push inflation.(4mks)
2. Containerization has become popular in Kenya. List four reasons why a businessman may not use it.(4mks)
3. Use the following diagram to calculate the price elasticity of demand.(4mks)

Where price increases from p₀ to p₁

Assuming that P₁ =100 shs., P₀ = shs.50, Q₁ -=150 units, Q₀ = 200 units

1. Outline four forms of unethical practices in product promotion.(4mks)
2. Mr Oketch started a business six months ago. He started experiencing problems in the seventh month and gradually closed it down. Outline four possible reasons why the new business failed.(4mks)
3. Outline four roles of intermediaries in the chain of distribution.(4mks)
4. State four problems encountered in development planning at the implementation stage.(4mks)
5. State four factors that insurance companies consider when determining premiums to be charged.(4mks)
6. Jane purchased ten hens at kshs. 150 each, and sold them at kshs. 1 75 per hen. Calculate:

(a) Margin percentage(2mks)

(b) Mark-up percentage(2mks)

21. State four advantages of using office equipment over manual labour.(4mks)

22.In the blanks provided, name the sources documents required to prepare the mentioned books of original entry.(4mks)

Books of original entry

Source document

(a) Cash book

(b) Pettycash

(c) Purchases journal

(d) sales journal

23.Outline four benefits that a growing economy can get from entrepreneurship.

(4mks)

24.Define the following lines of communication.

(a)Vertical communication(1mk)

(b)Horizontal communication(1mk)

(c)Formal communication(1mk)

(d)Informal communication(1mk)

25.A country wishes to know the structure of its population. Give four reasons for this