SECTION A: (20 marks)

1. Activities at getting goods within the access of a consumer are referred to as

A) Production activities.

B) Trade activities.

C) International activities.

D) Commercial activities.

2. "sales psychology is scientifically applied." This is one of the chief features of:

A) Multiple shops.

B) Retail co-operatives.

C) Super markets.

D) Departmental stores.

3. The arguments for protectionism in international trade excludes

A) Infant industry argument.

B) Revenue argument.

C) Dumping argument.

D) Mobility of factors of production argument.

4. Nominal capital is

A) The amount that the shares have been asked to pay.

B) The amount that actually been received from shareholders.

C) The maximum amount a company may raise by selling shares.

D) The total face value of the shares that have been issued.

5. Which of the following is not an example of public enterprise:

A) Public corpprations.

B) Departmental stores.

C) Municipal Enterprises.

D) Marketing Board.

6. Legal tender is a term used to mean

A) Currency.

B) Money.

C) A country's bank notes and coins.

D) A country's earnings from her exports.

7. Three companies: Kibimo Co. Ltd which grows pineapples and oranges, Ngetta Co. Ltd, which deals in fruit canning and Bukulu Co. Ltd who are exporters of fresh and canned fruits wish to operate in one name and hence have a combined business. What type of intergration would be most appropriate for them?

A) A cartel.

B) A consortium.

C) A vertical combination.

D) A horizontal combination.

8. ......................are owned privately for renting to the public as ware-houses.

A) Bonded ware houses.

B) Public ware houses.

C) Silos.

D) Wholesalers' ware houses.

9. Kaza Imelda bought 40metres of cloth from Mukwano Entreprises. The gross price is shs.1000 per metre. Trade discount allowed is 20%. If he settles the debt within 30 days he will be allowed a cash discount of 2%. He intends to pay immediately. How much does he pay?

A) Shs.31,360.

B) Shs40,000.

C) Shs32,000.

D) Shs32,360.

10. A loss arising from irrecoverable debt is called

A) Gross loss.

B) Net loss.

C) Bad debt.

D) Mark up.

SECTION B: (80 marks)

11. I) Define the terms" production" and the phrase"factors of production".

ii) Describe the factors of production giving the reward for reward for each factor.

12. a) Briefly describe the various forms in which business firms may combine.

b) What are the benefits of large-scale enterprises?

13. Retailer A from Arua would like to buy goods from wholesaler B in Kampala. Describe the various documents that will be involved in that transaction up to the stage of payment.

14. a) Barter trade as promoted by the government has not been successful. Explain the problem associated with this type of trade.

b) Give reasons to support the idea of not allowing goods to flow freely across the borders.

15. Describe any five ways in which government controls the private sector.

16. a) What is the significance of a bill of lading to the following:

i. an exporter,

ii. an importer,

iii. a shipping company,

iv. customs officials.

b) Of what benefits is air transport to country?

17. a) What factors would be considered when choosing a medium for advertising new commodity?

b) What is the significance of protecting consumers against certain forms of advertising?

18. Study the following trading account and answer the questions below:


Shs shs

Opening stock 750,000 sales 1,200,000

Purchases 250,000

Gross profit 400,000 closing stock 200,000

1,400,000 1,400,000

a) Determine i) the average stock.

ii) The sales at cost.

iii) The rate of turn over.

b) Expenses the gross profit as a percent of

i) The selling price,

ii) Cost price.