SECTION A: (40 marks)

1. a) Give any four ways in which agribusiness are important to your country.

b) State any two: i) types of income,

ii) Reasons why people save their income.

c) i) Distinguish between retail trade and whole sale trade.

ii) Mention any two services a retailer offers to a customer.

d) i) Define the term "pre-operating expenses".

ii) Give any three pre-operating expenses met by an entrepreneur.

e) i)Differentiate between a cash discount and trade discount.

ii) Owor bought goods worth shs9, 000. He was allowed a cash discount of 5%. How much did he pay for the goods?

f) i)Define the term "advertising".

ii) Give any three advertising media used in your country.

g) i) Distinguish between insurable risks and non-insurable risks.

ii) Mention any two principles of insurance.

H) i) Differentiate between a development bank and a merchant bank.

ii) Mention any two services offered by merchant banks.

I) i) What are credit sales?

ii) State any three advantages of credit sales.

j) i)Distinguish between returns inwards and returns outwards.

ii) State any two reasons why goods may be returned by the buyer.

SECTION B: (60 marks)

2. a) Explain the challenges faced by manufacturing business in your country.

b) Suggest ways of overcoming the challenges in (a) above.

3. a) Explain the importance of packaging a product for sale.

b) What factors should an entrepreneur when choosing packaging materials?

4. a) Outline the activities carried out by an entrepreneur when marketing a product.

b) Describe the qualities of a good salesperson.

5. a) Describe the steps taken when preparing a business plan.

b) What factors should be considered when preparing a marketing plan for a business?

6. a) Differentiate between a sole proprietorship and a partnership.

b) Outline the advantages and disadvantages of a partnership.

7. a) Explain the essential elements of a valid contract.

b) Under what circumstances may a contract be discharged?