1) Explain five principles under which cooperative societies should be managed (10mks)

2. Explain five problems that farmers encounter when they sell their produce through marketing boards. (10mks)

3. Explain five sources of short term finances available to a business organization. (10mks)

4. currently the government of Kenya is involved in privatizing public corporations. Explain five reasons that could make the government retain some of the corporations. (10mks)

5. describe five disadvantages of running a business as a sole proprietor (10mks)

6. A group of businessmen from town x have formed a cartel. What reason could have led them to take such an action (10mks)

7. Explain five reasons why a public limited company may prefer to raise finance through issue of ordinary shares instead of debentures. (10mks)

8. Outline the differences between a private limited company and a public corporation (10mks)

9. In what ways do multinational corporations differ from locally owned firms.(10mks)

10. Discuss the factors that may influence the growth of a business unit. (12mks)

11. explain the factors that make it difficult for many Kenyan to purchase houses through building societies. (6mks)

12. Explain the six benefits that may account to a business organization which expands the scale of its operation. (12mks)

13. Draw five differences between public limited company and a partnership form of a business. (10mks)

14. Describe the problems associated with a sole proprietorship form a business (10mks) 15. explain six benefits that a company would get by raising capital through sale of ordinary shares (12mks)

16. Wafula who recently retired would like to invest his retirement benefits in either of tow business options. Explain five factors that Wafula should consider in choosing the business to invest. (10mks)

17. Outline 4 reasons why the government may decide to nationalize some business enterprises. (10mks)

1. State four ways in which the Kenya Government protects consumers (4mks)

2. Give three disadvantages of railway transport in Kenya (3mks)

3. State four ways in which a government may regulate business activities (4mks)

4. Outline four reasons why a government may find it necessary to protect consumers. (4mks)

5. outline four reasons why the government participates in business protection. (4mks)

6. Highlight four limitations of using consumer initiated methods in consumer unfair business practices by traders. (4mks)

7. State four reasons why a government may want to be involved in commercial activities (4mks) . (4mks)

8. State four reasons why a government may want to be involved in commercial activities (4mks)

9. Give four functions of the Kenya external trade authority. (4mks) 

1. (i) Open and voluntary membership Members wishing to join cooperative societies do so on voluntary basis and can leave at will. They are however, expected to meet basic requirements before they can join.

(ii) Educator for members Support for educational activities with movement/aimed to foster cooperative principles at all levels to encourage membership and teaching

(iii) The principle of democratic control The administration of cooperatives is entrusted to a committee elected by members on the basis of one man one vote.

(iv) Affiliation co-operation Primary co-operative societies should be affiliate/ co-operate/ others/ secondary apex societies/ all levels (v) Interest on capital Limited interest on capital should be allowed/ predetermined on capital but based on a fixed rate bid down by rule

(vi) Principle of political neutrality Cooperatives are supposed to be non- partisan politically/ non politically (vii) Payment on dividends/ share of profits Profits made is shared among the members according to their contribution prorate basis

2. (i) payments Farmers usually get their payments after a long time after they deliver their produce/ delayed payments

(ii) Deductions Boards usually makes deductions from the payments they make to farmers at times without explaining why such deductions are made/ unfair deductions.

(iii) Bureaucracy/ procedure The procedure that farmers have to follow in delivery of their produce getting payments is sometimes cumbersome and time wasting.

(iv) Collecting of produce Sometimes collection of produce (from collection centers) delayed leading to deterioration of produce quality/ unnecessary losses.

(v) Differentiation Lack of distinction between quality of produce from different areas may disadvantage those farmers who produce high quality produce.

(vi) Pricing Farmers have to say no in the determination of prices/ prices are fixed by a board but the board may not reflect the true market price (vii) Corruption/ embezzlement/ fraud Farmers loose money via dishonest deed e.g. cheating in weight, recording etc. (ix) Management Political interference may affect adversely the running of the boards

3.Overdrafts are current account holders Hire purchase of goods Bills of exchange / promissory notes/ trade bills can be sold instead of waiting for them to mature Issue of post dated cheques Trade credit Retained earnings Short term bank loans Discounting of invoices Taxation money Sale and lease back Leasing of property Provision for depreciation Proposed dividends

4. To curb monopolistic practices - To provide goods and services the private sector is unable to provide - To create job opportunities - For security purposes e.g. dealing with firearms - To allow local participation/ minimize foreign participation

5.To avoid excessive competition among themselves - To share the market demand in the areas/ religions selling - To determine the output/ quota for each member - To influence the price charged on products - To lobby for policies better to them/ protect their interest - To set modules/ standards improve in quality

7. Debentures are units in loans which must be paid by a public company unlike ordinary shares - Ordinary shareholders are paid in fixed rate of interest - Failure to pay debenture rates leads to accompany being declared bankrupt unlike payment of share dividends - Debenture interest must be paid by a public company unlike ordinary shares - In the event of a company winding up, it is obliged to pay debentures first while shares may come last - Raising money through require no security while debentures may require a security - Securing finance through debentures is more expensive than though ordinary shares - Debentures reduce the borrowing power of a company while shares enhance. - Dividends can be converted to bonus shares while it is not possible with debentures