a) Explain five ways in which the Nairobi Stock exchange supports business and economic growth in a country. (10 marks)
b) Horizon is an importer of assorted goods from different countries. Explain five advantages he may enjoy while his goods are
stored in a bonded warehouse. (10 marks)

a) Explain five problems that can be encountered in an office as a result of computerization of operations. (10 marks)
b) Describe five services rendered by retailers to consumers. (10 marks)

a) With the aid of a well labeled diagram, explain the effect on the equilibrium price and equilibrium quantity when the supply of vehicles increases. (10 marks)
b) Outline five measures that the government of Kenya has put in place to protect consumers from unscrupulous business practice. (10 marks)

a) Explain five problems experienced when computing national income using the expenditure approach. (10 marks)
b) Fahari traders had the following balances on 1st July 2014.
Kshs
Equipment 5,600
Bank 35,000
Debtors 28,000
Creditors 66,600
Later in the month, the following transactions took place.
July 6th-Purchased goods worth sh 9500 and paid by cheques.
July 7th –paid creditors, sh 10,600 by cheques.
July 23rd –Received a cheques of sh. 22,000 for goods sold
July 28th –Withdrew sh 5000 from the bank to pay salaries.
Required:
Open the relevant ledger accounts and extract a trial balance. (10 marks)

a) Explain five effects of production activities on the environment and community health. (10 marks)
b) Explain any five roles played by commercial banks to the business community. (10 marks)

a) The economy of country X has been growing at a very low rate. Explain four possible reasons that could have led to this trend. (8 marks)
b) The following information was extracted from the books of Ramogi Traders as at 31st December, 2012.
Kshs
Sales 800,000
Purchases 500,000
Returns inwards 90,000
Returns outwards 26,000
Creditors 150,000
Rent 60,000
Delivery van 160,000
Carriage outwards 3,000
Debtors 120,000
Carriage inwards 40,000
Bank 60,000
Stock (Jan 2012) 100,000
Interest expenses 10,000
General expenses 7,000
Stock (31st Dec 2012) 120,000
Bank overdraft 4,000
Capital 170,000
Required:
i) Prepare a Trading, Profit and loss account for the year ended 31st December, 2012. (8 marks)
ii) Prepare a balance sheet as at 31st December 2012. (4 marks)