Theories Of Commerce Question Paper
Theories Of Commerce
Course:Diploma In Business Administration
Institution: Kca University question papers
Exam Year:2010
1
UNIVERSITY EXAMINATIONS: 2009/2010
STAGE I EXAMINATION FOR DIPLOMA IN BUSINESS MANAGEMENT
BUD 003: THEORIES OF COMMERCE
DATE: APRIL 2010 TIME: 1½ HOURS
INSTRUCTIONS: Answer any THREE questions
Question One
a) Discuss the factors that that determine the growth of commerce. (10 Marks)
b) Discuss both advantages and disadvantages of a free market (10 Marks)
Question Two
a) Explain the following insurance terms
(i) Policy
(ii) Premium
(iii) Subrogation
(iv) Contribution (8 Marks)
b) State the differences between life assurance and insurance of property. (4 Marks)
c) Identify and discuss any four aids to trade (8 Marks)
Question Three
a) Explain the following operations in regard to a bill of exchange.
(i) discounting the bill
(ii) Endorsing the bill
(iii) Dishonoring the bill
(iv) Noting the bill (16 Marks)
b) Distinguish between IOU and a promissory note (4 Marks)
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c) Discuss the advantages of bills of exchange and promissory notes (4 Marks)
Question Four
a) Differentiate between a bank loan and a bank overdraft. ( 4 Marks)
b) Explain the methods the central bank uses to control inflation and deflation in the economy
(16 Marks)
Question Five
a) Explain the main characteristics of international trade. (5 Marks)
b) Describe the following documents used in international trade.
i. Indent
ii. Bill of lading
iii. Consular invoice
iv. Letter of origin
v.Letter of credit (15 Marks)
c) Discuss five reasons for going international (10 Marks)
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