(For Both School and Private Candidates)

Time: 2:30 Hours Tuesday, 13th November 2018 p.m. 


  1. This paper consists of sections A, B and C with a total of ten (10) questions.
  2. Answer all questions in sections A and B and two (2) questions from section C.
  3.  Calculators, cellular phones and any unauthorized materials are not allowed in the examination room.
  4. Write your Examination Number on every page of your answer booklet(s).

  SECTION A (20 Marks) 

Answer all questions in this section.

1. For each of the items (i) - (x), choose the correct answer from among the given alternatives and write its letter beside the item number in your answer booklet provided.

 (i)  Which of the following is not a characteristic of itinerant traders?

  1. They may operate as regular dealers throughout the year.
  2. They operate with a minimum of the establishment expenses.
  3. They operate only alongside the main roads.
  4. They operate their business without fixed premises. 
  5. They operate with a very small amount of capital.
Choose Answer :

(ii)  The basic factors of production comprises the following:

  1.   land, labour and organization.
  2.  land, labour, organization and capital.
  3.  land, organization and capital.
  4.  land, labour and capital.
  5.  land, organization, capital and production.
Choose Answer :

(iii) The inquiry letter may not be answered by one of the following:

  1. by sending a catalogue. 
  2.  by sending a price current.
  3. by sending an invoice. 
  4.  by sending a list price.
  5.  by sending a quotation.
Choose Answer :

(iv) Which of the following statements is true?

  1.   Economics is a branch of commerce.
  2.  Economics is a branch of production.
  3. Commerce is a branch of economics.
  4.  Commerce is not a branch of production.
  5.   Production is a branch of commerce.
Choose Answer :

(v) Why does advertising become a burden to the users of the product?

  1.   It increases production.
  2.  It increases the final price.
  3. It reduces quality of the product.
  4. It reduces the choice of the customers. 
  5. It increases the turnover.
Choose Answer :

 (vi)  Which of the following statements represents indirect service?

  1.   A farmer produces maize for her personal use.
  2. A factory worker produces shoes for his customers.
  3.   Retailer sales goods to his customers.
  4.  Wholesaler sales goods to his customers.
  5.  A doctor provides treatment to his customers.
Choose Answer :

(vii) Which one of the following is not among the limitations of insurance?

  1.   Losses must be accidental 
  2.  Losses must be catastrophic. 
  3.  Losses must be compensated 
  4.  Losses must be of similar risks 
  5.  Losses must be reasonably unexpected.
Choose Answer :

 (viii) The five main functions of stock administration include:

  1.   receiving, placing of items, selling, care of stock and issuing.
  2.  receiving, placing of items, care of stock, issuing and stock control.
  3.  receiving, issuing, stock control, stock care and dusting of items.
  4.  receiving, issuing, stock control, stock level and placing of items.
  5.  receiving, issuing, placing of items, dusting and sorting of spoilt items.
Choose Answer :

(ix)  The tax system whose rate remains constant irrespective of change in income or property is referred to as

  1. Direct tax 
  2.  Proportional taxation
  3. Indirect tax 
  4.  Progressive taxation
  5.  Regressive taxation.
Choose Answer :

(x)  Movement alongside the supply curve is caused by

  1.  change in price of the commodity
  2.  change in quantity demanded
  3. increase in price of the commodity 
  4.  decrease in price of the commodity 
  5.  increase in quantity supplied.
Choose Answer :

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