Questions ?1
Subject:FinancePrice:5.86 Bought11
Questions
?1. Distinguish the following terms: 6mks
a) Free goods and economic goods
b) Consumer goods and producer goods
c) Business wealth and personal wealth
2. State four advantages of a bonded warehouse 4mks
3. Name the factor of production that each of the following resources relate to. 5mks
Resource Factor of production
a) Teacher ______________________________________
b) Computer ______________________________________
c) Water ______________________________________
d) Sole proprietor ______________________________________
e) Forest ______________________________________
4. Mention any four methods used for sending money through the post office. 4mks
5. Using the book keeping equation, indicate the correct figure in the empty spaces provided.
Assets
Capital
Liabilities.
180,000
50,000
200,000
90,000
45,000
38,000
150,000
50,000
6. The following information was drafted from the books of Rayrose college on 31st Jan 2002.
Item Amount (Kshs)
Opening stock 400,000
Sales 700,000
Closing stock 10,000
Purchases 150,000
Sales returns 20,000
Purchase returns 50,000
Salaries and wages 80,000
Rent 70,000
Income 80,000
Calculate:
a) Gross Profit 4mks
b) Net profit 4mks
c) Mark-up percentage 2mks
7. State any four conditions under which a proforma invoice may be used. 4mks.
8. Highlight any four services rendered by retailers to consumers. 4mks
9. Outline any four functions of the Kenya External Trade Authority by (K.E.T.A.) 4mks
10. Mention four limitations of advertising as a means of sales promotion 4mks
11. As the transport manager of a busy company highlight four factors you would consider
before choosing a mode of transport for your goods and services. 4mks
12. "Most secondary schools maintain that students should pay fees with cheques and not cash" Account for this statement. 4mks
13. Indicate the account in which the following entries are made.
Entry
Account
Carriage inwards
Carriage outwards
Incomes receivable
Return inwards expenses.
14. List four features of co-operative societies. 4mks
15. Outline any four barriers that hinder effective communication. 4mks
16. Highlight any four problems or challenges that businesses would face due to adoption
of the decentralization policy. 4mks
17. Give any four benefits that a farmer would reap from being a member of a producer cooperative. 4mks
18. Outline any four features of multiple shops. 4mks
19. With the aid of a tree diagram, show the main divisions of trade. 3mks
20. What is meant by the following abbreviations as used in the study of commerce. 4mks
i) F. O. R __________________________________________________________
ii) O . M . O __________________________________________________________
iii) C. I . F ___________________________________________________________
iv) C. W. O ___________________________________________________________
21. State any four methods that the government of Kenya uses to protect its consumers. 4mks
22. Give any three characteristics of money as a medium of exchange 3mks
23. What is a 'bill of exchange' 2mks
Highlight any three demerits of the barter system of trade. 3mks
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