(For Both School and Private Candidates)

Time: 3 Hours Year: 2004


1. For each of the items (i) - (x) choose the correct answer from the given Alternative and write its letter beside the item number.

(i)Trade is defined as:

  1. buying and selling manufactured goods only
  2. buying and selling of goods and services
  3. any activity undertaken to make a profit
  4. changing of raw materials into finished goods
  5. selling goods to the ultimate consumer.
Choose Answer :

(ii)Which of the following statements is true?

  1. balance of trade is the same as balance of payments
  2. balance of payments is the difference between the imports and exports of goods by a country.
  3. Balance of trade is the excess of visible imports over visible exports or vice versa
  4. A favourable balance of trade necessarily means a favourable balance of payments
  5. Balance of trade as much as balance of payments.
Choose Answer :

(iii)Which of the following is not an element of transport?

  1. terminal
  2. way of transport
  3. motive power
  4. containerization 
  5. unit of carriage
Choose Answer :

(iv)A bonded warehouse is used to store:

  1. goods which are dangerous or inflammable
  2. goods against theft
  3. imported goods of a particular manufacturer only
  4. imported goods till duty is paid on them
  5. goods against fire
Choose Answer :

(v)A tied shop is a:

  1. number of single shops under one roof and one management
  2. large store that stocks many items a house wife is likely to buy
  3. self-service store
  4. super market complex
  5. type of single shop which sells products of one manufacturer only.
Choose Answer :

(vi)Which of the following items does not appear in the memorandum of an association?

  1. power of directors
  2. type and amount of share capital
  3. objects of a company
  4. name of a company
  5. liability clause
Choose Answer :

(vii)Teachers, doctors and lawyers are said to be involved in production. Their contributions may be grouped under:

  1. commercial occupations
  2. direct services
  3. industrial occupations
  4. distributive occupations
  5. manufacturer occupations
Choose Answer :

(viii)A cheque bearing a special crossing:

  1. can be endorsed to anyone
  2. can be deposited in any account as long as it is with the named bank and branch
  3. must be deposited in the payee's account with the named bank and branch
  4. can be endorsed to another bank
  5. must be withdrawn from the drawer's account.
Choose Answer :

(ix)E. Ngosha had an opening stock of Shs. 20,000.00 and a closing stock of Shs. 25,000.00. His net purchases for the year amounted to Shs. 150,000.00 and his gross profit margin was 40% on cost. His expenditure for the year was Shs. 28,600.00. What was his net profit?

  1. 58,000.00
  2. 145,000.00
  3. 56,000.00 
  4. 203,000.00
  5. 29,400.00
Choose Answer :

(x)In a regressive taxation system, low income earners pay:

  1. less taxes as their income increases
  2. less taxes as their income remain constant
  3. more taxes as their income decreases
  4. more taxes as their income increases
  5. less taxes as their income decreases
Choose Answer :

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