question archive 1) a) Discuss the factors that should be considered in choosing a channel of distribution for any particular product
1) a) Discuss the factors that should be considered in choosing a channel of distribution for any particular product
Subject:FinancePrice: Bought3
1) a) Discuss the factors that should be considered in choosing a channel of distribution for any particular product. 10mks
2. b) Explain any five types of wholesalers who may be found in our country today. 10mks
3. a) Assume that you are the sales manager of Kenya Breweries limited.
b) Explain the
qualities you would look for every time you are recruiting your sales executives. 12mks
c) What do you understand by the term production.
d) Explain any four factors of
production. 8mks
4. a) The following balances were extracted from the books of spikes Ltd on 31st Dec 2001.
Shs.
Fixed Assets 42,000
Stock 48,000
Debtors 50,000
Bank overdraft 25,000
Creditors 40,000
Cash in hand 2,000
Capital 77,000
During the month of January, the following transactions took place.
Bought motor vehicle on credit valued at Kshs. 80,000 from General motors.
Withdrew sh. 28,000 for personal use.
Prepare balance sheet as at 31st Jan 2002 for spikes Ltd.
c) Give any five reasons to justify that the central Bank is not a Commercial Bank.
10mks
5. a) Discuss circumstances under which a wholesaler may be eliminated from the chain
of distribution. 10mks
b) Explain the essentials of a good warehouse. 10mks
6. a) Advertising media refers to the means used to convey the sales message to the customers /
users of any given product. Explain any five. 10mks
b) What do you understand by containerization. Briefly explain the benefits associated
with containerisation. 10mks
7. a) Explain the role played by consumer co-operative societies in Kenya today. 10mks
b) To a certain extent, public corporations are to considered desirable. Explain 10mks
8. State any four advantages of a wholesaler to a consumer 4mks
9. List four qualities of good filing system 4mks 10. Type of demand is potrayed by curve DD 2 mks
11. Outline the two causes of this curve 2mks
12. Why would an exporter prefer to use container services as a method of transport 4mks
13. State any four after sales services business firm selling electronic goods sets can offer
to the customers 4mks
14. The following information was extracted from the books of a trader :
Creditors sh 60,000
Cash at bank 20,000
Debtors 40,000
Stock 70,000
Calculate :
Current ratio 3mks
Quick ratio 2mks
15. Give four reasons why the budget is an important government tool of control to the economy 4mks
16. Differentiate between Balance of trade and Balance of payments 4mks
17. The following information was extracted from the books of Roadside kiosk as at
Sept 30th 1999:
Cash at hand Shs. 30,000
Capital 170,000
Creditors 40,000
Stock 70,000
Purchases 150,000
Sales 205,000
Debtors 65,000
Motor vehicles 100,000
18. Prepare trial balance as at 30th Sept 1999. 5mks
19. What are the four methods of personal selling carried out by salesmen 4mks
20. In the recent past many countries have adopted trade liberalization as the way forward to development.
21. Highlight any four adverse effects that such nations may experience due
to liberalization 4mks
22.Outline any four functions of the Nairobi stock exchange 4mks
23. List four methods used by the central bank of Kenya in credit control 4mks
24. Consumer protection is safeguarding consumers from exploitation by producers and businessmen .
a)Give four reasons why this is necessary 4mks
b)The following is a demand/ supply schedule for kerosene. Draw a diagram to illustrate
using your own scale 5mks
c) Also find the equilibrium price / quantities
d)Price Quantity Demanded Quantity Supplied
Per day Per day
5 60 10
7 50 15
10 40 20
15 35 25
20 30 30
25 25 35
30 20 40
26. Name four characteristics that should be posed by goods in order for them to be described
as wealth. 4 mks
27. Limited companies are Large Organizations which attract large profits. However these undertakings are still not popular in Kenya and sole proprietorship seems to be more
popular. Give four reasons to explain this 4 mks
28. Give four reasons why most organization prefer oral interviews whenever they are
recruiting new employees/staff 4 mks
29. The law of demand states that Other things being equal, a fall in price will lead to an
increase in quantity demanded
30.Highlight any Four circumstances under which this
law may not hold. 4 mks
31. In the spaces provided below indicate the level of production that relates to each of the following activities
Activity Level of production
Selling goods in a shop __________________________________
Fishing from a river __________________________________
Growing maize __________________________________
Making leather belts __________________________________
4 mks
Enter the following transaction into a cash book and balance it as at 20th March 1995.
March 2nd started business with Kshs. 28,000 of which Kshs. 8000 was banked .
March 4. Bought stock from Nekesa worth Kshs 2000 and paid by cheque.
March 6. Paid wages in cash Ksh 4000.
March 10.Received a cheque for Kshs. 3000 from a debtor
March 20. Deposited cash in bank from cash till Kshs. 3000. 5 mks
32. State any four benefits accruing as a result of SmithKline Beecham merging with Glaxowellcome 4 mks
33. The sales from Mambo stores for the year 1999was Ksh 99,000. Given that goods are
usually sold at a margin of 20%, what was the gross profit for the year. 3 mks
Differentiate between
C.W.O and C.O.D 2 mks
F.O.B and F.A.S 2 mks
