The following trial and balance relates to business of Mali Ngumu traders as at 30th June 2008.
(a) Prepare a trading profit and loss account as at 30th June 2009. (8mks)
(b) Calculate the following ratios:- (4mks)
(i) Rate of return on capital
(iii) Quick ratio
(iv) Rate of stock return over
Explain four ways in which man uses clothing to satisfy his wants (4mks)
Usefulness of clothing to man.
Most countries in the world are under-developed. Give six characteristics of these countries (12mks)
Characteristics of under-developed countries.
Discuss four factors that determine the level of a country’s national income (10mks)
Four factors that determine the level of a country’s national income.
Give five contributions of commercial banks in Kenya (10mks)
Contributions of commercial banks
Explain five importance of an efficient transport system in a country (10mks)
Five importance of an efficient transport system.
Describe six causes of unemployment in Kenya (12mks)
Six causes of unemployment in Kenya
Briefly explain the meaning of the following forms of advertising (8mks)
(i) Celebrity advertising
This is a form of advertising that uses of a prominent person on the product to encourage people to buy the product e.g a president, athlete, a footballer etc.
(ii) Product advertising
(iii) Informative advertising
(iv) Institutional advertising
Discuss five strategies that can be used by the government to control inflation (10mks)
Five strategies used by the government to control inflation
Discuss five advantages of a bonded warehouse (10mks)
Five advantages of a bonded warehouse.
Explain five external factors that influence the success of a business. (10mks)
Name four types of marine insurance policies. (4mks)
Four types of marine insurance policies.
Describe the following types of unemployment:
(i) Disguised unemployment (2mks)
Disguised unemployment - this is where more workers are employed than are necessary in an organization. Under this circumstance, dismissal of some of the workers will not cause the overall output of the organization to fall.
(ii) Seasonal unemployment (2mks)
Seasonal unemployment - it arises as a result of the seasonality of work. It occurs where production is not continuous e.g in the agricultural sector, many people are employed to prepare farms for planting, but after planting is done, such workers have no further work to do until harvest time. They remain unemployed for the period in between. After harvesting, they again remain unemployed until the land will need preparation for next planting.
List four factors that are likely to hinder economic development in Kenya. (4mks)
Four factors that are likely to hinder economic development in Kenya.
Name four possible barriers to international trade. (4mks)
Four possible barriers to international trade.