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Kbt 529: Agribusiness Planning And Control Strategy Question Paper
Kbt 529: Agribusiness Planning And Control Strategy
Course:Master Of Agribusiness Management And Trade
Institution: Kenyatta University question papers
Exam Year:2011
DATE: Thursday, 28th April, 2011
TIME: 2.00 p.m. – 5.00 p.m.
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INSTRUCTIONS:
There are SIX questions. Answer question ONE and any other THREE questions.
1.
a)
Describe the problems that can occur when using only accounting
information to analyze performance.
(5 marks)
b)
Analyze possible actions that can be taken when problems are identified in
the cash budget.
(5 marks)
c)
Describe the actions an organization could take to improve Net Profit
Ratio.
(5 marks)
d)
Justify why strategic decisions are made by senior managers.
(5 marks)
e)
Describe briefly the key sections of a Business Plan.
(5 marks)
2.
a)
Describe briefly:
i)
Revenue
ii)
Net income
iii)
Retained earnings. Explain why retained earnings are transferred
to owners’ equity on the Balance Sheet after they are calculated.
(5 marks)
Page 1 of 3
b)
Study the Cash Budget below and then answer the questions which follow.
Cash Budget of Munyao Enterprises for 3 months: January – March 2011
January (Ksh)
February (Ksh)
March (Ksh)
Opening Balance
10,000
?
35,000
Cash In
Sales
120,000
115,000
110,000
130,000
145,000
145,000
Cash Out
Raw Materials
70,000
80,000
85,000
Wages
10,000
10,000
10,000
Rent
12,000
12,000
12,000
Lighting/Telephone 8,000
8,000
8,000
Purchase of a new
motorbike
0
0
100,000
100,000
110,000
215,000
Closing Balance
30,000
35,000
(70,000)
c)
i)
State the opening balance in February.
(1 mark)
ii)
Assess what happened to the closing balance in March.
(1 mark)
iii)
Examine ways Munyao Enterprises could increase sales.
(3 marks)
iv)
Identify and justify TWO ways Munyao Enterprises could reduce Cash
Out.
(2 marks)
v)
Give THREE reasons why Munyao Enterprise has prepared a Cash
Budget.
(3 marks)
3.
a)
Assess the differences between liquidity and solvency in a business.
(5 marks)
b)
Use an example to explain how the Profit-and-Loss statement differs from
a Cash Flow statement for a business. Which one is more important to a
business? Explain your answer.
(10 marks)
4.
a)
Explain the limitations of using accounting ratios.
(5 marks)
Page 2 of 3
b)
Discuss the main requisites for success in a modern business.
(10 marks)
5.
a)
Explain why firms can have a healthy profit but experience cash flow
problems.
(5 marks)
b)
Discuss the basic steps of Capital Budgeting.
(10 marks)
6.
a)
Describe the following items shown on a Balance Sheet:
i)
Current Assets
ii)
Notes Payable
iii)
Long Term Liabilities
iv)
Account Receivable, and
v)
Owners’ Equity
(5 marks)
b)
Using an example evaluates the main components of a marketing plan.
(10 marks)
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