All Questions

The following information was extracted from the books of farmers choice supermarket on 31st Dec 2009

                                                                     shs

Average stock                                          30,000

Closing stock                                            40,000

Purchases                                               336,000

Carriage inwards                                       2,000

Return outwards                                     18,000

Margin                                                         1/6

Required. Calculate sales for the year .                      (4mks)

Match each of the statements given below with the relevant type of capital.  (4mks)

Statement                                                                                                    Type of capital

(a) Resource invested into a business by the owner

(b) Excess of current assets over current liabilities

(c) Amount invested into the business by outsiders

(d) Represents total finance in a firm

State four benefits that would accrue to a customer who borrows a loan from a non-bank financial institution.        (4mks)

a)…………………………………………………………………………………………..

b)………………………………………………………………………………………….

c)………………………………………………………………………………………….

d)…………………………………………………………………………………………..

Name four sources of public finance. (4mks)

a)……………………………………………………………………………………….

b)…………………………………………………………………………………………..

c)………………………………………………………………………………………….

d)………………………………………………………………………………………….

Outline four sources of monopoly power.  (4mks)

a)………………………………………………………………………………………...

b)……………………………………………………………………………………………

c)………………………………………………………………………………………….

d)………………………………………………………………………………………….

Ragati and Nzonge operates a business with a stock valued at ksh.350,000 and have interests of 3/5 and 2/5 respectively. Ragati decided to insure 2/4 of the stock against fire. Sometimes later fire occurred at their business premises and destroyed stock worth ksh. 250,000. Calculate the amount of compensation Ragati would get from the insurance company.       (4mks)

Highlight four disadvantages of a private warehouse. (4mks)

a)………………………………………………………………………………………...

b)…………………………………………………………………………………………

c)………………………………………………………………………………………..

d)………………………………………………………………………………………….

Highlight four ways in which the production activities of firms in your country affect the environment. (4mks)

a)…………………………………………………………………………………………....

b)…………………………………………………………………………………………..

c)………………………………………………………………………………………….

d)…………………………………………………………………………………………..

Outline four advantages of audio-visual communication.  (4mks)

a)………………………………………………………………………………………...

b)……………………………………………………………………………………...

c)………………………………………………………………………………………….

d)…………………………………………………………………………………………..

State four advantages of transporting oil by pipeline rather than by road.  (4mks)

a)…………………………………………………………………………………………

b)………………………………………………………………………………………….

c)…………………………………………………………………………………………

d)………………………………………………………………………………………….