SECTION A (32 marks)
Answer ALL the questions in this section.
I List three characteristics of a nominal partner, (3 marks) .
2. Give three reasons why some traders do not take insurance policies. (3 marks)
4. Name two classification of trade. (2 marks)
5. State four ways in which the utility of a commodity may be treated. (4 marks)
6. State two disadvantages of using air transport to deliver goods. (2 mttrks)
1 ist three functions vi’ihe Kenya Bureau of Standards. (3 marks)
8. Give four reasons why a trader may decide to keep his money in a fixed deposit account.4 marks)
9. State four merits of buying goods on hire-purchase terms. (4 marks)
10 Stale four advantages of operating market stalls. (4 marks)
State three advantages of locating bonded warehouses at the points of entry into a country. (3 marks)
SECTION B (68 marks)
II. Explain six services offered lo retailers by wholesalers. (9 marks)
12. Outline six factors that have contributed to the growth of commerce. (9 marks)
Explain four advantages of operating a partnership business. (X marks)
Outline four factors that a trader should consider before taking a loan from a commercial bank.
(b) Explain Four benefits that a company can get if its shares arc quoted al the securities
exchange market. (9 marks)
14. (a) Explain six reasons why a country may prefer to transport petroleum products by pipeline. (9 marks)
(b) Explain four advantages of hosting a multi- national corporation in a country. (8 marks)
15. (a) Explain six benefits of labour specialization in production. (9 marks)
(b) Outline four circumstances under which a businessman may choose to hire a warehouse rather that build his own