(a) Features of Co-operative Societies
− Membership is open and voluntary - as long as one meets the requirements of by-laws one is free to join
− Members enjoy limited liability - they not held personally liable for business debts
− They are separate legal entities separate from their owners
− They have perpetual life independent of that of owners
− Governed by by-laws - rules which are drafted by the members
− Distribution of surplus in proportion to each \members contribution
− Managed by management committee which elected by the members
− Democratic adminstration - based on one person one vote/any member has a right to be elected to management committee
− Education to the members on principles governing the `co-operative societies (5 x 2 = 10mks)

(b) Causes of unemployment
− Lack of capital for investment - Hindering the settling up or expansion of industries
− Rapid population growth rate - where population grows at a faster rate than the rate of absorbing the workers
− Rural to urban migration - Causing unemployment in urban areas
− Use of inappropriate technology - Where capital intensive technology is used instead of labour intensive or appropriate technology that may take more workers
− In appropriate education system - where the education prepares people for white collar jobs
− High costs of production- Making local firms not to cope with competition from imported goods hence local firms closing or reducing production causing unemployment
− Seasonal demand for labour making workers unemployed at certain times (5 x 2= 10mks)

(a) Benefits of buying from a supermarket
− She can touch/feel the goods before buying hence picking what she thinks is good
− She can buy a variety of goods from one shop which saves her time
− Goods are well displayed in a supermarket for easy selection
− She can seive herself which saves her time
− She can enjoy lower prices as supermarkets buy directly from producers
− Goods have a price tag hence she can easily determine the price /budget without asking attendants
− Goods are packed for her unlike in the kiosk (5 x 2= 10mks)

(b) Role of commercial banks in Kenya
− Accepting deposits - for safekeeping by operating various accounts
− Giving loans- which can be used by traders to improve or start their businesses
− Transfer money by providing safe means of payments eg cheques
− Providing employment to people in the banking sector
− Provide advice/education on how to start and improve their businesses
− Provide foreign exchange - enabling people to be involved in foreign trade
− Act as agents of the stock exchange - by being contracted by companies to raise capital through sale of shares
− Act as guarantors - thus helping their clients to get credit elsewhere
− Discounting bills of exchange before maturity by cashing them
− Act as trustees by taking- care of their clients property in their absence
− Offering night facilities for late hour banking (5 x 2 = 10mks)

(a) Office etiquette expected of office worker
− Courtesy - Handling persons politely and pleasantly
− Puntuality - Be in time. Being at the right place at right time.
− Loyalty - Should be committed to and identify with the organisation
− Respect - Handling other people with dignity
− Accuracy - Duties assigned should be done with precision and void of errors
− Honesty- Should be truthful /sincere
− Co-operation - Should work in harmony with others

− Initiative - Should create and develop new ideas aimed at improving performance
− Judgment - Decision should be made after considering all possible options/possibilities
− Diplomacy - Should be able to convince other factfully

(a) Factors influencing choice of means of communication
− Cost of the means - choose means that is affordable
− Reliability of means - choose a means where the message will reach intended person at the intended time/place
− Urgency - If urgent choose a fast means eg telephone
− Evidence If future reference is required choose a means capable of providing it eg written means
− Confidentiality Choose a means that will not allow the message to be received by people not intended
− Distance - Choose a means that is suitable for the distance involved e.g bell is suitable for a short distance
− Nature of message being transmitted - eg if detailed a written means way be preffered
− Desired impression - choose a means that will bring out the desired impression e.g telegram shows sense of urgency
− Availability of means choose a means that is available
− Accuracy - Should be able to deliver message in original form (5 x 2 = 10mks)

(i) The decrease in demand causes an excess supply in the market which pushes the price down from PE₁, to PE₂
(ii) The quantity demanded reduces from QE₁ to QE₂ 20x1/2=10mks

(a) Uses of National Income Statistics
− To determine the rate of economic growth by providing the right information on productivity
− To determine standards of living of people in the country by calculating the per capita income
− Assist the govt in economic planning by providing useful information on various sectors
− To compare standards of living between different countries by comparing their per capita income
− To attract foregn investments/aid by providing the required information
− To compare standards of living between different years by compairing the per capita incomes between the countries
− Used in preparing development plans by providing useful information on various sectors
− Used in assessing performance in different sectors of the economy by noting the contribution by each sector 5x2 = 10mks

(b) Ways of correcting a balance of payment deficit
− Promoting exports through measures like customs drawback to increase the revenue got from exports
− Controlling imports eg imposing quotas to reduce the expenditure on imports
− Asking for aid/grants from friendly nations and use them to finance the deficit
− Devaluation of local currency to make exports cheaper and imports more expensive
− Sell investments abroad to finance the deficit
− Reduce govt expediture outside the country to reduce outflow/payment of foreign currency
− Attracting foreign investments to increase inflow of capital
− Diversifying production/exports to capture different markets abroad thus increasing capital inflow

(a) Role played by warehousing in developing Kenya’s economy
− Ensures steady supply of goods by storing them until need arises
− Security goods are protected against theft/adverse weather conditions
− Stabilisation of prices by storing surplus to release in times of shortage

− Earning govt revenue through taxation
− Provide employment opportunities for those involved in the warehousing function
− Checking on evasion of duty payment for imported goods pass through a bonded warehouse and released with a release warrant
− Controlling smuggling by govt checking on goods imported and exported 5x2 = 10mks