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Bud 003: Theories Of Commerce Question Paper

Bud 003: Theories Of Commerce

Course:Bachelor Of Commerce

Institution: Kca University question papers

Exam Year:2009

1
UNIVERSITY EXAMINATIONS: 2008/2009
STAGE I EXAMINATION FOR DIPLOMA IN BUSINESS MANAGEMENT
BUD 003: THEORIES OF COMMERCE
DATE: APRIL 2009 TIME: 1½HOURS
INSTRUCTIONS: Answer any THREE questions
QUESTION ONE
Discuss the roles of commerce in the satisfaction of human needs. (20 Marks)
(Total 20 Marks)
QUESTION TWO
a) Explain the difference between balance of trade and balance of payment. (4 Marks)
b) Discuss the measures that the government can take to restrict imports. (16 Marks)
(Total 20 Marks)
QUESTION THREE
a) Give five reasons for the popularity of current accounts with businessmen. (5 Marks)
b) Discuss the qualities of money. (5 Marks)
c) Discuss the functions of central bank in Kenya. (10 Marks)
(Total 20 Marks)
QUESTION FOUR
a) Giving an example in each case Discuss the factors that influence the quantity demanded of a
product. (10 Marks)
b) Explain any 5 methods that are used to determine the price of a product in the market.
(10 Marks)
(Total 20 Marks)
2
QUESTION FIVE
a) Discuss the principles of insurance. (10 Marks)
b) Using an illustration explain the meaning of the term “average clause” as used in influence.
(5 Marks)
c) Briefly explain the consequence of over insurance. (5 Marks)
(Total 20 Marks)

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