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Theories Of Commerce Question Paper

Theories Of Commerce

Course:Diploma In Business Management

Institution: Kca University question papers

Exam Year:2009

UNIVERSITY EXAMINATIONS: 2009/2010
STAGE I EXAMINATION FOR DIPLOMA IN BUSINESS MANAGEMENT
BUD 003: THEORIES OF COMMERCE
DATE: DECEMBER 2009 TIME: 1½Hours
INSTRUCTIONS: Answer Any THREE Questions
QUESTION ONE (20 MARKS)
Discuss the role of commerce in satisfaction of human needs and wants
QUESTION TWO (20 MARKS)
a) Highlight factors that have led to popularity of current account among businessmen
(6 Marks)
b) Identify and explain the functions of commercial banks (14 Marks)
QUESTION THREE (20 MARKS)
a) a) Distinguish between balance of trade and balance of payment (2 Marks)
b) Identify and discuss the methods that the government uses to restrict international trade
(10 Marks)
c) Discuss the benefits of international trade to a country (8 Marks)
QUESTION FOUR (20 MARKS)
a) Briefly explain the following types of life assurance policies
i) whole life policy (3 Marks)
ii) endowment policy (3 Marks)
iii) annuity policy (3 Marks)
iv) with profit policy (3 Marks)
b) Kimemia has taken an insurance policy for his house against destruction by fire. The policy value is sh 4000 000.Half of the house is destroyed by fire and the loss assessed is sh 3000 000.
How much claim will the insurance company admit and which insurance policy will be applied
in determining the amount of compensation (6 Marks)
c) Giving examples distinguish between insurable risk and non insurable risk (2 Marks)
QUESTION FIVE (20 MARKS)
a) In relation to negotiable instruments explain the meaning of the following
i) discounting the bill (3 Marks)
ii) endorsing the bill (3 Marks)
iii) dishonoring the bill (3 Marks)
b) Identify and describe any four types of bills of exchange (8 Marks)
c) Identify circumstances under which a bank can dishonor a cheque (3 Marks)

Theories Of Commerce Question Paper

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