Warehouses which belong to manufacturers, wholesalers or individuals are categorized as:

1. bonded warehouses
2. specialized warehouse
3.  private warehouses 
4.  public warehouses

The appropriate channel to distribute perishable goods to final consumers is from:

1.  producers, wholesalers, retailers to the final consumers
2. producers, wholesalers to final consumers
3. producers, large scale retailers to final consumers
4. producers, small scale retailers to final consumers.

(iii)     Which of the following is considered as disadvantage of division of labour?

1.  Unemployment
2. High degree of choice
3.  Employment opportunity 
4.  Efficiency

(iv)    The exchange of goods and services is referred as:

1.   Aids to trade
2.  Trade
3. Barter trade 
4. Commerce

(v)      Demand curve normally slopes from

1.  left to right upwards 
2.  right to left downwards 
3.  right to left upwards
4.  left to right downwards

(vi)    Which of the following is an example of retailers who do not have permanent premises?

1.  Single shop
2. Tied shop 
3.  Mobile shop
4.  Multiple shops.

(vii)  Which of the following is a reward for capital as a factor of production? 

1.  Wage.
2.  Interest
3. Profit 
4.  Rent

(viii)If the price elasticity of demand is greater than I, the demand is said to be.

1. elastic
2. perfectly elastic
3. inelastic 
4.  unitary

(ix)    Which of the following is a good example of perishable goods?

1.  Processed coffee
2.  Wheat flour
3. Natural flowers
4.  Processed vegetables

(x)      If the average stock is shs. 120, 000 and cost of sales is shs.

       480,000, the stockturn rate     be•.

1.   0.25times 
2.  Shs 600,000
3. Shs 360, 000
4. 4 times

2_. Match the items in List A with the responses in List B by writing the letter of the correct response in the table provided.

3. Complete the following sentences by filling in the blanks with correct word (s):

(i) An aid to trade whose major aim is to compensate the insured who suffered losses out of the stated risk is called. ..............

(ii) Industries which are involved in changing the form of raw materials into finished goods are classified as. .................

(iii) The quantity of goods that producers are willing and able to offer for sale at a given price in a given period of time is known as.....................

(iv) In hire purchase agreement, whenever the buyer failed to pay only the last installment the property bought will remain in the hands of the. . . . . . . . . . . .

(v) ................. are the costs of production which change as the output changes.

(vi) Trade which involves exchange of goods by goods commercially is termed as..................

(vii) Wholesalers who handle a particular type of goods but offer a greater variety within their particular field are known as. .................

(viii) The responsiveness of demand for a product to a change in price represents. .................

(ix) Human needs which consist of food, shelter and clothes are called..................

(x) ................. are retailers who sit next to bus stands, market places public/private halls or around the schools offering small items like sweets, fresh fruits pens, drinks, etc, to customers.

SECTION B

4. Briefly describe the following terms:

(a) Foreign trade

(b) Supermarkets

(c) De-credere agents

(d) Direct services

(e) Departmental stores

5. (a) What is meant by the term retail trade?View Ans