SECTION A (32 marks)
Answer All questions in this section.
1. Give tour reasons why bicycles arc still used in transport despite the development in the transport industry. (4 marks)
2. Highlight four services that the central bank offers to commercial banks. (4 marks)
3. Stale four principles under which insurance companies operate. (4 marks)
4. Give two reasons why traders may choose to cany out business transactions on cash basis. (2 marks)
5. Highlight three ways in which the utility of a commodity can be increased. (3 marks)
6. Define the following terms as used in the securities exchange:
(i) Blue chips (I mark)
(ii) Dividend (I mark)
7. Outline three benefits that consumers get from trade. (3 marks)
8. Highlight four problems dial a businessman may experience if his goods are not well arranged in the warehouse. (4 marks)
9. State three advantages of operating a kiosk. (3 marks)
10. Highlight three circumstances under which a sole proprietorship may be dissolved (3 marks)
SECTION B (68 marks)
11. (a) Outline six advantages that one would gel from being a member of a Savings and Credit Co-operative Society (SACCOs). (9 marks)
(b) Highlight four differences between jobbers and brokers at a securities exchange. (8 marks)
12. (a) Outline six benefits that an individual may get from using M-pesa services. (9 marks)
(b) Highlight four disadvantages of government involvement in business activities. (8 marks)
13. (a) Manga Enterprises intends lo get a loan from a bank to expand their business. Explain six factors that they should consider before borrowing the loan. (9 marks)
(b) Outline four types of information that may be contained in a Delivery Note. (8 marks)
14. (a) Explain six advantages of specialization in die production of goods and services. (9 marks)
(b) Explain four measures diaL a country may take to promote her exports. (8 marks)
15. (a) Explain six circumstances under which an insurance company would not compensate the insured in the event of a loss. (9 marks)
(b) Explain four reasons that may make a manufacturer to locate his warehouse near the consumers of his products.
