Pbus 021 Year 2010 Question Paper
Pbus 021 Year 2010
Course:Certificate Of Pre-University Business
Institution: Kabarak University question papers
Exam Year:2010
KABARAK UNIVERSITY
UNIVERSITY EXAMINATIONS
2009/2010 ACADEMIC YEAR FOR THE CERTIFICATE OF PRE-UNIVERSITY BUSINESS
COURSE CODE: PBUS 021
COURSE TITLE: BUSINESS STUDIES
STREAM: PBUS Y2
DAY: WEDNESDAY
TIME: 9:00 – 11:00 A.M.
DATE: 24/03/2010
INSTRUCTIONS:
1. The paper contains FIVE Questions
2. Attempt question ONE and ANY OTHER THREE questions.
3. Question ONE carries twenty five (25) marks and the remaining THREE 15 marks each.
QUESTION 1
a) Briefly explain the difference between the following terms as used in business.
(i) Value in use and value in exchange.
(ii) Public limited company and private limited Company
(iii) Bookkeeping and Accounting
(iv) Assets and Liabilities
(v) Bank Overdraft and Bank Loan. ( 10 marks)
b) Explain the meaning of sole proprietor-ship and partnerships and discuss the advantages and
disadvantages of each. (8 marks)
c) Explain the two main types of shares used as sources of finance by businesses. (7 marks)
QUESTION 2
Financial statements are prepared by businesses and play a very important role in the process of
Bookkeeping and Accounting. Explain the following financial statements in terms of meaning, purpose
and importance.
a) A balance Sheet.
b) A trial Balance
c) Profit and Loss Account. (15 marks)
QUESTION 3
a) Explain any five differences between shares and debentures. (5 marks)
b) Okello and Ronoh are partners and their business requires more capital for expansions. Explain
different ways in which they can internally raise such capital. (10 marks)
QUESTION 4
a) Highlight the characteristics of joint Stock Companies. (4 marks)
b) John and his three friends have decided to form a private limited Company but they do not know
the procedure to follow. Explain to them the steps they would follow to register
their Company. (6 marks)
c) What would be the disadvantages of forming such a type of business ownership? (5 marks)
QUESTION 5
Explain the following term as used in business
a) Double entry Bookkeeping
b) Trade Credit
c) Financial intermediary
d) Market Environment
e) Credit creation
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