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(a). Explain five reasons why the Kenyan government may decide to organise a training exercise for local traders.
(b).Explain five reasons why a sole trader may decide to wind up his/her business to invest in public limited companies.
(a). Explain five circumstances that may influence a trader to locate his/her firm near the source of raw materials.
(b). Explain five factors that determine the level of national income of a country.
(a). Advertising in the newspaper is one of the ways of promoting sale of goods, Wafula advertised a new product in the newspapers but there was insignificant difference in sale. Explain five likely reasons for this.
(b). Explain five circumstances when a manufacturer may decide to sell directly to the consumers.
(a).Describe five ways through which the central bank of Kenya can expand the supply of money in the economy.
(b). Explain five benefits that a firm may derive from its environment.
(a). Discuss five benefits that accrue to a business organisation that adopts a comprehensive code of conduct.
(b). The value of exports of a given country was found to be higher than the value of its imports. Explain five factors that may have led to this phenomenon.
(a).Highlight four distinctions between hire purchase and deferred payment /credit sale.
(b).The following information was extracted from Abduba’s books of account.
Stock (1.1.2012) 80 000
Stock (31.1.2012) 120 000
Net sales 708 000
Net purchases 640 000
Indirect expenses 8 000
Bank 180 000
Debtors 140 000
Creditors 100 000
Cash 40 000
Bank overdraft 80 000
Capital 500 000
i. Working capital
ii. Current ratio
iii. Rate of stock turn over
iv. Mark up percentage
v. Margin percentage
vi. Rate of return on capital