Trade is defined as: A. buying and selling manufactured goods only B. buying and selling of goods and services C. any activity undertaken to make a profit D. changing of raw materials into finished goods E. selling goods to the ultimate consumer

Which of the following statements is true? A. balance of trade is the same as balance of payments B. balance of payments is the difference between the imports and exports of goods by a country C. Balance of trade is the excess of visible imports over visible exports or vice versa D. A favourable balance of trade necessarily means a favourable balance of payments E. Balance of trade as much as balance of payments

Write short notes on the following: (a) indirect production (b) public enterprises (c) buffer stock (d) dumping (e) certainty

1. indirect production (0 alama)
2. indirect production (2 alama)
3. The art of selling to the final consumers (1 alama)
4. Is a document that shows the amount of goods which are in a warehouse for a particular importer (1 alama)
5. public enterprises (2 alama)
6. public enterprises (0 alama)
7. buffer stock (2 alama)
8. buffer stock (0 alama)
9. Any stock in business being sold and replaced by another (1 alama)
10. dumping (0 alama)
11. Refers to one of the canons of taxation (1 alama)
12. dumping (2 alama)
13. certainty (2 alama)
14. certainty (0 alama)
15. Is a motivation of stimulus for working efficiently (1 alama)
16. Quantity of imported goods that may be deposited in a bank for safe keeping after banking hours (1 alama)
17. A method by which money can be deposited in a bank for safe keeping after banking hours (1 alama)
18. Refers to human effort, physical or mental, employed to produce goods or services (1 alama)
19. Supplier reserves the right of any error or omission that may have been in the invoice (1 alama)
20. Refers to an instruction by a customer to his bank to make periodic payment to a named person at specific dates (1 alama)

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Differentiate between: (a) bill of lading and bill of exchange (b) hire purchase and deferred payment

1. bill of lading and bill of exchange (0 alama)
2. bill of lading and bill of exchange (2 alama)
3. hire purchase and deferred payment (2 alama)
4. hire purchase and deferred payment (0 alama)

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(a) Define elasticity. (b) Use the following demand and supply schedule to answer the questions below: PRICE PER kg (Shs) QUANTITY DEMANDED (kg) QUANTITY SUPPLIED (kg) P1 5 90,000 30,000 P2 10 70,000 40,000 P3 15 50,000 50,000 P4 20 30,000 60,000 (i) Draw the demand and supply curves in the same pair of axes. (ii) Indicate the equilibrium price and quantity. (iii) Calculate the elasticity of supply of the commodity from P2 to P3. (iv) Comment on the results you obtain in 5 (b) (iii) above.

1. Define elasticity. (0 alama)
2. Define elasticity. (2 alama)
3. Use the following demand and supply schedule to answer the questions below: PRICE PER kg (Shs) QUANTITY DEMANDED (kg) QUANTITY SUPPLIED (kg) P1 5 90,000 30,000 P2 10 70,000 40,000 P3 15 50,000 50,000 P4 20 30,000 60,000 (0 alama)
4. Draw the demand and supply curves in the same pair of axes. (0 alama)
5. Indicate the equilibrium price and quantity. (0 alama)
6. Comment on the results you obtain in 5 (b) (iii) above. (2 alama)
7. Calculate the elasticity of supply of the commodity from P2 to P3. (0 alama)
8. Comment on the results you obtain in 5 (b) (iii) above. (0 alama)

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Complete the following table by writing your answer beside the item number in your answer booklet. •C OS T PRICE SELLING PRICE GROSS PROFIT MAKE UP % (a) AMOUNT % (b) 500 600 (i) (ii) (c) 420 (iv) (v) 30 (d) (vii) 800 (viii) (ix) (e) (x) 1000 200 20

1. AMOUNT % (0 alama)
2. Complete row (b) for Cost, Selling Price, Gross Profit, and Gross Profit Make Up %. (2 alama)
3. Complete row (c) for Cost, Selling Price, Gross Profit, and Gross Profit Make Up %. (2 alama)
4. 500 600 (0 alama)
5. Complete row (d) for Cost, Selling Price, Gross Profit, and Gross Profit Make Up %. (2 alama)
6. Gross Profit (0 alama)
7. Complete row (e) for Cost, Selling Price, Gross Profit, and Gross Profit Make Up %. (2 alama)
8. Markup % (0 alama)
9. 420 (0 alama)
10. Selling Price (0 alama)
11. Markup % (0 alama)
12. (vii) (0 alama)
13. Selling Price (0 alama)
14. Gross Profit (0 alama)
15. Cost Amount (0 alama)
16. 1000 200 20 (0 alama)

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(a) What do you understand by the term "market research"? (b) Outline seven (7) types of useful information that can be analyzed in market research.

1. What do you understand by the term "market research"? (0 alama)
2. Outline seven (7) types of useful information that can be analyzed in market research. (0 alama)

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(a) Define insurance. (b) Explain the Principles of insurance.

1. Define insurance. (0 alama)
2. Explain the Principles of insurance. (0 alama)

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(a) Outline the main types of bank accounts. (b) Explain five (5) factors to be considered by a bank manager before providing loans to customers.

1. Outline the main types of bank accounts. (0 alama)
2. Explain five (5) factors to be considered by a bank manager before providing loans to customers. (0 alama)

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(a) State and explain the various forms of ownership in business units. (b) Explain the most important difference between "memorandum of association" and "articles of association."

1. State and explain the various forms of ownership in business units. (0 alama)
2. Explain the most important difference between "memorandum of association" and "articles of association." (0 alama)

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