State four external factors that may positively influence the operations of a business.

State four reasons why consumers have to make a choice between competing needs.

Give four reasons why a sole proprietor business may remain small size.

State four problems that a country may suffer when the government becomes a major investor in business activities.

State the meaning of the following terms as used in cash book.
(a) Contra entry
(b) Folio column

State four circumstances that may influence a firm to locate its operation near the source of raw materials.

For each of the following transactions,indicate the source documents from which the following transactions would be recorded.
Transaction Source document
(a)Sales of goods on credit
(b)Correction of an overchange
(c)Goods returned by customer
(d)Purchase on credit

The following balances were extracted from the books of Neno Traders for the year ended 31 December 2014.
Shs.
Opening stock 20,000
Capital 80,000
Gross profit 18,620
Discount allowed 740
Carriage outwards 1,350
Rent received 3,430
General expenses 1,960
Salaries and wages 5,700
Prepare profit and loss account.

Outline four advantages of division of labour.

Highlight four ways of generating business ideas.

State four problems that may interfere with the effectiveness of face to face communication.

State four reasons why it is suitable to locate bonded warehouse at the point of entry of goods in a country.

Outline four ways in which households contribute to national income.

Mention four roles played by intermediaries in the distribution channel.

Indicate whether the following taxes are Direct or Indirect.

Tax Type of tax
(a)corporation tax
(b)value added tax(VAT)
(c)Capital gains tax
(d)Excise

Kamwenje a sole proprietor who operates a private school bought balnkets for sh.100, 000.The terms of sale were 20% trade discount and 5% cash discount if payment was made within two weeks. Calculate the net amount he paid after one week.

State four factors that could hasten the economic development of a country.

A businessman owned a motor vehicle valued sh.1, 000,000.He comprehensively insured it for sh.800, 000.It was involved in an accident and declared a write off. Calculate the amount he should get from the insurer.

State four reasons for which traders observe ethical practices in product promotion.

State four factors that determine the period for which documents should be filed.

On 1 December 2014,Rangi Traders had sh.13,200 in cash and bank balance of sh.56,000.The following transactions took place during the month
December
“ 2 cash sales sh.12, 000
“ 15 paid a creditor sh.7200 by cheque
“ 27 Received a cheque for sh.24, 500 from debtor
“ 30 Paid rent sh.7, 500 in cash
Record the above information in a two column cash book and balance it off.

State four factors that may lead to unfavourable terms of trade.

Highlight four features of business assets.

The cost of consumer goods for a representative of a household is given below.
Year Prices
2013 12,000
2014 16,000
Determine the increase in consumer price index using 2013 as the base year.