Get premium membership and access revision papers, questions with answers as well as video lessons.

Bud 003Theories Of Commerce Question Paper

Bud 003Theories Of Commerce

Course:Diploma In Business Management

Institution: Kca University question papers

Exam Year:2014

UNIVERSITY EXAMINATIONS: 2013/2014
STAGE II/I ORDINARY EXAMINATION FOR THE
CERTIFICATE/DIPLOMA IN BUSINESS MANAGEMENT
BUD 003THEORIES OF COMMERCE
DATE: AUGUST 2014
TIME: 1 1/2 Hours
INSTRUCTION: Answer any THREE questions
QUESTION ONE: (20 MARKS)
a)
Discuss the role of the following trade facilitators as used in commerce and trade
(i) (2 Marks)
(ii)
b)
Warehousing Transport (2 Marks)
Distinguish between wholesale and retail traders on the basis of:
(i) varieties of products, and
(ii)
(4 Marks)
Relationship with consumers.
c) Explain briefly any three primary functions of a commercial bank.
(6 Marks)
d) You want to set up a grocery shop in your locality for which your father is prepared to
give you Ksh 10,000 as capital. State which form of organization will you prefer for the
business and why.
(6 Marks)
QUESTION TWO: (20 MARKS)
a)
Outline the difference between Bill of exchange & promissory note? What are the various
parties to promissory note?
b)
(6 Marks)
You are required to open bank account in connection with the transaction of your
manufacturing business. State with reason the type of bank account you will open.
(6 Marks)
1
c)
Explain the following principles of insurance.
(i) Indemnity
(ii) Insurable interest
(iii) Subrogation
(iv)
(8 Marks)
Average clause
QUESTION THREE: (20 MARKS)
a)
State the importance of foreign trade. What are the various difficulties faced in foreign
trade? (10 Marks)
b) Differentiate between balance of payments and balance of trade. (2 Marks)
c) Explain the importance of balanced payments in an economy (6 Marks)
d) What are the non-Banking finance companies? (2 Marks)
QUESTION FOUR: (20 MARKS)
a) Explain 5 differences between fixed deposit account and savings account.
(10 Marks)
b) Why is current account popular with business men over savings or fixed deposit
accounts?
c)
(6 Marks)
Discuss itinerant retailers. What is meant by multiple shops? (4 Marks)
QUESTION FIVE: (20 MARKS)
a)
Explain each of the following economic conditions
(i) Deflation
(iii)
b)
Inflation
(ii) Depression.
Explain the following operations to a bill of exchange
(i) Endorsing the bill
(iii)
(6 Marks)
Discounting the bill
(ii)
c)
(6 Marks)
Noting the bill
Why is important to restrict imports and exports in a country? Discuss the various
methods that can be used by a government to restrict the international trade. (8 Marks)
2

Bud 003Theories Of Commerce Question Paper

More Question Papers

Popular Exams