March 13, 2022

W1-2-60-1-6 JOMO KENYATTA UNIVERSITY OF AGRICULTURE AND TECHNOLOGY University Examinations 2014/2015 STAGE III END OF SEMESTER EXAMINATION FOR THE DIPLOMA IN BUSINESS INFORMATION TECHNOLOGY HCT 0201: OBJECT ORIENTED PROGRAMMING TECHNIQUES DATE: AUGUST 2014 TIME: 1½ HOURS INSTRUCTIONS: ANSWER THREE QUESTIONS. Question One (20 Marks) a) Explain the following characteristics of C++ programming as a language: (i) Object – oriented (2 Marks) (ii) Portable (2 Marks) (iii) Modular (2 Marks) (iv) Speed (2 Marks) b) Explain the following parts of a C++ program: (i) # include < iostream> (2 Marks) (ii) using namespace std (2 Marks) (iii) int main ( ) (2 Marks) (iv) return O (2 Marks) c) Write a program in C + + that reads three integers input by user via keyboard and outputs the greatest among them. (4 Marks) Question Two (20 Marks) a) Explain the following concepts of OOP. (i) Inheritance (2 Marks) (ii) Polymorphism (2 Marks) (iii) Encapsulation (2 Marks) (iv) Abstraction (2 Marks) b) Write a program of your choice that implements polymorphism as a concept of OOP. (6 Marks) c) Giving an example or scenario, discuss the following programming errors: (6 Marks) (i) Syntax (ii) Logic (iii) Semantic Question Three (20 Marks) a) Define the following terms: (i) Object (1 Mark) (ii) Class (1 Mark) (iii) Method (1 Mark) (iv) Function (1 Mark) b) Explain the following programming methodologies as used in OOP. (i) Top down (2 Marks) (ii) Bottom up (2 Marks) c) Write a program the name of a day in a week: upon number which is entered by via keyboard using switch statement. (Take 1 to start by outputting Monday). (4 Marks) d) Explain the main difference between the WHILE statement and DO WHILE looping statements. (2 Marks) e) Explain the following statements as used when using functions: (i) Call by Reference (2 Marks) (ii) Call by value (2 Marks) (iii) Inline function (2 Marks) Question Four (20 Marks) a) Highlight three things you should consider when declaring an array. (3 Marks) b) Explain four advantages of using pointers in OOP. (4 Marks) c) Explain what the following terms mean as used in a structure of a class: (i) Private (2 Marks) (ii) Public (2 Marks) (iii) Protected (2 Marks) d) People argue that C++ is same as Java; only their syntax is different. To some extend it’s true since both are OOP languages. What are some of the similarities between the two languages? (4 Marks) e) List and explain three datatypes used in C++ programming. (3 Marks)

W1-2-60-1-6 JOMO KENYATTA UNIVERSITY OF AGRICULTURE AND TECHNOLOGY University Examinations 2014/2015 STAGE II END OF SEMESTER EXAMINATION FOR THE DIPLOMA IN BUSINESS INFORMATION TECHNOLOGY HCT 0103: INTRODUCTION TO COMPUTER PROGRAMMING DATE: AUGUST 2014 TIME: 1½ HOURS INSTRUCTIONS: ANSWER THREE QUESTIONS. Question One (20 Marks) a) Differentiate between the following: (i) Assembler and compiler (2 Marks) (ii) Procedural language and object oriented language (2 Marks) (iii) Source code and object code (2 Marks) b) Define four rules that are used while developing identifiers in programming. (4 Marks) c) Write a program that reads three integers input by user via keyboard and outputs the greatest among them. (4 Marks) d) In a certain company, if an employee earns 20,000 or more he/she is given a house allowance of 20% and transport allowance of 15% of the basic salary. Otherwise an employee gets 12% house allowance and 10% transport allowance of the basic salary. Write a program that accepts basic salary and computer and displays the following on the screen: (6 Marks) (i) Gross salary (ii) House allowance (iii) Transport allowance (iv) Net salary Question Two (20 Marks) a) Explain four datatypes in C programming language. (4 Marks) b) Explain the following parts of a C program: (i) # include (2 Marks) (ii) Main ( ) (2 Marks) (iii) return O (2 Marks) c) Differentiate between a pseudocode and flowchart giving an advantage of each. (4 Marks) d) A number is said to be evenly divisible by 9 if it’s even at the same time divisible by 9 e.g. 36 is evenly divisible by 9 and 27. Write a program that allows you to enter a number and check the above conditions. (6 Marks) Question Three (20 Marks) a) Discuss three errors encountered in a program. In each case give a scenario which can lead to the occurrence. (6 Marks) b) Discuss control structures under the following categories: (i) Decision/Branching (3 Marks) (ii) Looping/Alteration (3 Marks) c) A program is required that grades a student using marks attained in four subjects using the grading system below: MARKS       GRADE 80 –             100 A 70 –              79 B 60 –              69 C 50 –              59 D 40 –              49 E 0 –                39 F Write a program that accepts marks a student attained in four subjects compute its average and use the grading system above to award the overall grade. The system should output in the following order: (8 Marks) (i) Name of student (ii) Registration number (iii) Grade Question Four (20 Marks) a) Define the following terms: (i) Linker (2 Marks) (ii) Interpreter (2 Marks) b) Rehema Limited requires a program to compute income tax and net salaries for its employees. The company offers tax relief of Kshs. 650 for single employee and Kshs. 1,110 tax relief for employees earning > = 5,000. The relief will be deducted from the gross salary to give the taxable income. This will then be computed at the following rates: TAXABLE INCOME RATES (%) < 5, 000 0 5,000 – 10,000 6 10,001 – 19,999 9 20,000 – 29,999 12 30,000 – 36,999 14 37,000 and above 16 The tax charged is then deducted from gross income to give net salary. Write a program that will input employee’s Name, PF. Number, martial status and gross income. The program will then compute the tax and net salary then printout the employee payslip. The payslip should contain Income tax, Net salary, Gross income, Employee Name, PF. Number, Marital Status and Gross income. (10 Marks) c) Describe the steps a program has to follow in program development life cycle. (6 Marks)

W1-2-60-1-6 JOMO KENYATTA UNIVERSITY OF AGRICULTURE AND TECHNOLOGY University Examinations 2014/2015 SECOND YEAR FIRST SEMESTER EXAMINATION FOR THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION HCBA 3213: GLOBAL STRATEGIC MANAGEMENT DATE: AUGUST 2014 TIME: 3 HOURS INSTRUCTIONS: ANSWER QUESTION ONE (COMPULSORY) AND ANY OTHER TWO QUESTIONS Question One (25 Marks) a) Global organizations have generic global strategy options at their disposal. Discuss any five of them. (10 Marks) b) Explain five factors determining a country’s comparative advantage. (10 Marks) c) Identify five reasons for strategic alliances. (5 Marks) Question Two (15 Marks) a) Discuss guidelines for successfully formulating and implementing global strategy. (8 Marks) b) “Competition spurs the pace of globalization by bringing in different rivals, products and services, and sources of competitive advantage”. Examine any five competitive globalization drivers. (5 Marks) c) What criteria is used in selecting a global strategy? (2 Marks) Question Three (15 Marks) With the help of suitable examples of strategic differentiators, show how differentiation contributes to competitive advantage. (15 Marks) Question Four (15 Marks) a) Explain six necessary competencies for a global market. (12 Marks) b) Identify three types of global sourcing. (3 Marks) Question Five (15 Marks) Describe the global strategic management process, key issues and managerial concerns. (15 Marks)

W1-2-60-1-6 JOMO KENYATTA UNIVERSITY OF AGRICULTURE AND TECHNOLOGY University Examinations 2014/2015 FIRST YEAR SECOND SEMESTER EXAMINATION FOR THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION HCBA 3110: STRATEGIC MANAGEMENT DATE: AUGUST 2014 TIME: 3 HOURS INSTRUCTIONS: ANSWER QUESTION ONE (COMPULSORY) AND ANY OTHER TWO QUESTIONS Question One (30 Marks) XYZ Company Ltd actively started its business operations seven years ago. The company wants to open a local detergent manufacturing plant in Kenya by mid 2015. You have been appointed as a consultant to help the company conduct an internal environment analysis as well as industry and competition analysis. a) Discuss the main activities of the industry analysis process that could guide you in understanding the detergent industry. (10 Marks) b) Discuss the competition levels with the help of Michael Porter’s five force industry analysis. (10 Marks) c) (i) Describe SWOT analysis as a way to guide the analysis of the firm. Provide examples. (ii) Highlight the merits and demerits of SWOT as an analytical tool. (10 Marks) Question Two (15 Marks) a) Strategic management is a process with a beginning yet without an end. Discuss the critical tasks of strategic management and outline the dimensions of strategic decisions in today’s organizations. (10 Marks) b) Write short notes on the following: (5 Marks) (i) Strategic Thinking (ii) Value Chain analysis Question Three (15 Marks) a) Long – term strategy should be derived from a firm’s attempt to seek a competitive advantage based on one of three generic strategies. Explain with examples the core generic strategies. (10 Marks) b) Benchmarking is a continuous process of measuring products, services and processes against those of industry leaders or toughest competitors. Outline the reasons for benchmarking. (5 Marks) Question Four (15 Marks) a) The Boston Consulting Group (BCG) tool matrix is one of the tools used in the product portfolio analysis. Clearly illustrate and explain the analogy of the BCG matrix. (10 Marks) b) Discuss the purpose of strategy evaluation and control. (5 Marks)

W1-2-60-1-6 JOMO KENYATTA UNIVERSITY OF AGRICULTURE AND TECHNOLOGY University Examinations 2014/2015 STAGE II END OF SEMESTER EXAMINATION FOR DIPLOMA IN BUSINESS INFORMATION TECHNOLOGY HCB 0103: PRINCIPLES OF MANAGEMENT DATE: AUGUST 2014 TIME: 1½ HOURS INSTRUCTIONS: ANSWER QUESTION ONE AND ANY OTHER TWO QUESTIONS Question One (20 Marks) a) Discuss the types of business environment and their components. (10 Marks) b) List and describe five management functions. (5 Marks) c) Explain management theory X and Y and give criticisms. (5 Marks) Question Two (20 Marks) a) Discuss three levels of management and skills required. (10 Marks) b) Describe two types of plans and briefly outline the steps involved in planning. (10 Marks) Question Three (20 Marks) a) Define the following terms: (4 Marks) (i) Span of management (ii) Empowerment (iii) Power (iv) Authority b) Name and discuss four bases of power. (8 Marks) c) State and explain four principles of management. (8 Marks) Question Four (20 Marks) a) State and explain five sources of manpower. (10 Marks) b) Describe briefly what the process of delegation involved. (10 Marks)

W1-2-60-1-6 JOMO KENYATTA UNIVERSITY OF AGRICULTURE AND TECHNOLOGY University Examinations 2014/2015 FIRST YEAR FIRST SEMESTER EXAMINATION FOR THE CERTIFICATE/DIPLOMA IN BUSINESS ADMINISTRATION HCB 0102: INTRODUCTION TO ACCOUNTING I DATE: AUGUST 2014 TIME: 1½ HOURS INSTRUCTIONS: ANSWER QUESTION ONE (COMPULSORY) AND ANY OTHER TWO QUESTIONS Question One (20 Marks) State and explain any five users of accounting information.                          (5 Marks) Write up the following transactions in the books of S. Pink and extract a trial balance:                                                                                                             (15 Marks)   March 1: Started business with cash £1,000 March 2: Bought goods on credit from A. Clicks £296 March 3: Paid rent by cash £28 March 4: Paid £1,000 of the cash of the firm into Bank account March 5: Sold goods on credit to J. Simpson £54 March 7: Bought stationery £15 paying by cheque March 8: Cash sales £49 March 14: Goods returned by us to A. Clicks £17 March 17: Sold goods on credit to P. Lutz £29 March 20: Paid for repairs to the building by cash £18 March 22: J. Simpson returned goods to us £14 March 27: Paid A. Clicks by cheque £279 March 28: Cash purchases £125 March 29: Bought a motor vehicle paying by cheque £395 March 30: Paid motor vehicle expenses in cash £15 March 31: Bought fixtures £120 on credit from R. Wasl   Question Two (20 Marks)  Explain the term “Bank reconciliation” and state reasons for its preparation.(4 Marks) b) Ssematola, a sole trader received his bank statement fro the month of June 2001. At that date, the bank balance was Kshs. 706,500 whereas his cashbook balance was Kshs. 2,366,500.  His accountant investigated the matter and discovered the following discrepancies: 1)         Bank charges of Kshs. 3,000 had not been entered in the cash book.   2)         Cheques drawn by Ssematola totaling Kshs. 22,500 had not yet been presented to the bank.   3)         He had not entered receipts of Kshs. 26,500 in his cashbook.   4)         The bank had not credited Mr. Ssematola with receipts of Kshs. 98,500 paid into the bank on 30th June 2001.   5)         Standing order payments amounting to Kshs. 62,000 had not been entered into the cashbook.   6)         In the cashbook Ssematola had entered a payment of Kshs. 74,900 as Kshs. 79,400.   7)         A cheque for Kshs. 15,800 from a debtor had been returned by the bank marked “refer to drawer” but had not been written back into the cashbook.   8)         Sssematola had brought forward to opening cash balance of Kshs. 329,250 as a debit balance instead of credit balance.   9)         An old cheque payment amounting to Kshs. 44,000 has been written back in the cashbook but the bank had already honored it.   10)       Some of Ssematola customers had agreed to settle their debts by paying directly into his bank account.  Unfortunately, the bank had credited some deposits amounting to Kshs. 832,500 to another customers account.  However, acting on information from his customers Ssematola had actually entered the expected receipts from the debtors in his cashbook. Required: (i)         A statement showing Ssematola adjusted cashbook balance as at 30th June 2001.                                                                                                                                       (10 Marks) (ii)        A bank reconciliation statement as at 30th June 2001.                       (6 Marks) Question Three (20 Marks) From the following trial balance of P. Boones draw up a trading and profit and loss account for the year ended 30th September 2002 and a statement of financial position as at that date.                                                                                                                                                   (20 Marks)   Dr. Cr. Stock 1st October 1998 23,680   Carriage outwards 2,000   Carriage inwards 3,100   Returns inwards 2,050   Returns outwards   3,220 Purchaser 118,740   Sales   186,000 Salaries and wages 38,620   Rent 3,040   Insurance 780   Motor expenses 6,640   Office expenses 2,160   Lighting and heating expenses 1,660   General expenses 3,140   Premises 50,000   Motor vehicles 18,000   Furniture and fittings 3,500   Debtors 38,960   Creditors   17,310 Cash at bank 4,820   Drawings 12,000   Capital   126,360   332,890 332,890 Stock as at 30th September 2002 was 29,460 Question Four (20 Marks) State and explain any six errors not disclosed by a trial balance. (12 Marks)   The Chief Accountant of Jitegemee Ltd has encountered difficulties while accounting for fixed assets and the related depreciation in the company’s draft accounts for the year ended 30th April 2000. He has decided to seek your professional advice and presented the following balances of fixed assets as at 1st May 1999:     Acquisition cost Kshs. Accumulated deprecation Kshs. Depreciation rate % Furniture 900,000 300,000 12.5 Trucks 3,525,000 1,470,000 25 Plant and machinery 7,387,500 4,462,500 10 Land 2,775,000 – Nil Buildings 2,925,000 292,500 2.5   The following additional information was also available: 1)         It is the company’s policy to write off cost of the assets using the above percentages on cost. 2)         Depreciation is fully charged in the year of acquisition and none in the years of disposal. 3)         A three year old machine acquired for Kshs. 187,500 was sold for Kshs. 15,750. 4)         It has been decided to adjusted and charge depreciation on buildings at 4%. 5)         A used delivery truck purchased three years ago for Kshs. 248,250 was traded in during the year at a value of Kshs. 157,500 in part exchange of the new delivery truck costing Kshs. 450,000. 6)         Land, buildings and machinery were acquired for Kshs. 1,350,000 from a company that went out of business.  At the time of acquisition Kshs. 90,000 was paid to have the assets revalued by a professionally qualified valuer.  The revaluation indicated the following market values:   Land Kshs. 900,000 Building Kshs. 600,000 Machinery Kshs. 300,000   Required: A schedule of movement of fixed assets as requested by the Chief Accountant for inclusion in the company’s accounts for the year ended 30th April 2000.       (8 Marks)

W1-2-60-1-6 JOMO KENYATTA UNIVERSITY OF AGRICULTURE AND TECHNOLOGY University Examinations 2014/2015 FOURTH YEAR SECOND SEMESTER EXAMINATION FOR THE DEGREE OF BACHELOR OF COMMERCE HBF 2403: FINANCIAL RISK MANAGEMENT DATE: AUGUST 2014 TIME: 2 HOURS INSTRUCTIONS: ANSWER QUESTION ONE (COMPULSORY) AND ANY OTHER TWO QUESTIONS Question One (30 Marks) a) Define financial risk management. b) Briefly explain five benefits of financial risk management to an organization. c) Outline clearly the risk management process and explain each step. (30 Marks) Question Two (20 Marks) Explain the meaning of market risk and briefly discuss four types of market risks. (20 Marks) Question Three (20 Marks) Briefly explain the five principles of corporate governance. Good corporate governance avoids the risk of collapsing of organizations. (20 Marks) Question Four (20 Marks) Define credit risk and explain briefly the impact it has on the investor (lending) (20 Marks) Question Five (20 Marks) Explain briefly the meaning of liquidity risk and point out its importance in financial transactions. (20 Marks)

W1-2-60-1-6 JOMO KENYATTA UNIVERSITY OF AGRICULTURE AND TECHNOLOGY University Examinations 2014/2015 END OF SEMESTER EXAMINATION FOR THE DEGREE OF BACHELOR OF COMMERCE HBF 2305: FINANCIAL MANAGEMENT IN PUBLIC SECTOR DATE: AUGUST 2014 TIME: 2 HOURS INSTRUCTIONS: ANSWER QUESTION ONE (COMPULSORY) AND ANY OTHER TWO QUESTIONS Question One (30 Marks) Zedland Ltd is considering the launch of a new product, Quago, for which an investment of Kshs. 6,000, 000 in plant and machinery will be required. The production of Quago is expected to last 5 years after which the plant and machinery would be sold for Kshs. 1,500,000. Additional information: 1) Quago would be sold at Kshs. 600 per unit with a variable cost of Kshs. 240 per unit. 2) Fixed production costs (excluding depreciation) would amount to Kshs. 600,000 per annum. 3) The company applies the straight line method of depreciation. 4) The cost of capital is 10% per annum. 5) The units of Quago expected to be sold per annum for the next 5 years are shown below: Year      Units expected to be sold 1                      8,000 2                     7,000 3                     7,000 4                     5,000 5                    3,000 6) The corporation tax is 30%. Required: a) Calculate the net present value of the project and advise the management on the appropriate course of action. (10 Marks) b) Calculate the internal rate of return (IRR) of the project and advise the management on the appropriate course of action. (10 Marks) c) What cashflows are considered as relevant in capital budgeting? (10 Marks) Question Two (20 Marks) a) Financial management is government departments is different from financial management is an industrial or commercial company for some obvious reasons. Highlight and explain these reasons. (10 Marks) b) Highlight the benefits of capital budgeting in the public sector. (10 Marks) Question Three (20 Marks) a) What is the role and function of the National Treasury according to the (PFMA 2012) Public Finance Management Act 2012? (12 Marks) b) What is the role of the Auditor General in public finance management? (8 Marks) Question Four (20 Marks) Explain three different budget setting styles in public finance management. Highlight the advantages of disadvantages of the three. (20 Marks) Question Five (20 Marks) a) What are the rules of the Capital Market Authorities? (5 Marks) b) Explain the following terms used in the trading of shares and stocks in public finance management: (i) Bull and bear markets. (2 Marks) (ii) Short selling (2 Marks) (iii) Brokers and market dealers (2 Marks) (iv) Underwriters (2 Marks) (v) Stock market index (2 Marks) c) Explain over the counter markets in public finance management when dealing with capital markets. (5 Marks)  

W1-2-60-1-6 JOMO KENYATTA UNIVERSITY OF AGRICULTURE AND TECHNOLOGY University Examinations 2014/2015 END OF SEMESTER EXAMINATION FOR THE DEGREE OF BACHELOR OF COMMERCE HBC 2303:  FINANCIAL STATEMENT ANALYSIS DATE:  AUGUST 2014                                                                                     TIME: 2 HOURS INSTRUCTIONS:   ANSWER QUESTION ONE (COMPULSORY) AND ANY OTHER TWO QUESTIONS   Question One (30 Marks)   a) Discuss any four sources of financial statement analysis information, indicating which type of information is got from each of them. (8 Marks) b) Discuss five users of financial statement analysis information and indicate the specific type of information they need. (10 Marks) c) Discuss four limitations of using ratio analysis as a tool of financial statement analysis.                                                                                                             (8 Marks) d) Discuss the steps in formulating a financial plan. (4 Marks) Question Two (20 Marks) a) The following are the comparative financial statement of MK Ltd: Income Statement: Details 2009 2008 Net sales 5,200,000 4,800,000 Cost of sales (3,600,000) (3,150,000) Gross profit 1,600,000 1,650,000 Expenses (operating) (1,280,600) (1,260,000) Income before interest expense 319,400 390,000 Interest (64,000) (70,000) Income before tax 255,400 320,000 Tax (30%) (76,620) (96,000) Income after tax 178,780 224,000     Balance sheet 2009 2008 Non current assets     Land 40,000 40,000 Buildings 120,000 85,000 Currents assets     Stock 80,000 100,000 Debtors 60,000 40,000 Cash 12,000 23,500 Prepaid expenses 3,000 1,200 Total assets 315,000 289,700       Capital liabilities:     Capital 90,000 90,000 Retained earnings 80,000 69,700 8% bonds 75,000 80,000       Current liabilities:     Creditors 67,000 44,000 Notes payable 3,000 6,000 Total capital and liabilities 315,000 289,700   Required: Analyze the above financial statements horizontally giving a detailed explanation of your results.                                                                                                             (20 Marks) Question Three (20 Marks) The balance sheet of Grand Limited, a wholesaler at 31/12/2005 and 2006 were as follows:     2005 2006   ‘000’ ‘000’ ‘000’ ‘000’ Fixed assets 126,300   162,400   Depreciation (50,000) 76,300 (64,000) 98,400           Current assets         Stock 12,000   15,000   Debtors 10,500   14,000   Cash 1,400   2,000     23,900   31,000             Current liabilities         Creditors 6,800   9,400   Corporation tax 3,400   5,000  

W1-2-60-1-6 JOMO KENYATTA UNIVERSITY OF AGRICULTURE AND TECHNOLOGY University Examinations 2014/2015 THIRD YEAR FIRST SEMESTER EXAMINATION FOR THE DEGREE OF BACHELOR OF COMMERCE AND FOURTH YEAR FIRST SEMESTER EXAMINATION FOR THE DEGREE OF BACHELOR OF PURCHASING AND SUPPLIES MANAGEMENT HBC 2206/HPS 2304: FINANCIAL MANAGEMENT DATE: AUGUST 2014 TIME: 2 HOURS INSTRUCTIONS: ANSWER QUESTION ONE (COMPULSORY) AND ANY OTHER TWO QUESTIONS Question One (30 Marks) a) Discuss the scope of financial management. (6 Marks) b) Outline any three types of investments. (6 Marks) c) Consider a four year project which promises the following cashflows: Year 1 2 3 4 Cashflows ‘000’ 120 80 60 80 The initial outlay is Kshs. 300,000 with a salvage value of Kshs. 50,000. Required: (i) Calculate IRR of the project. (6 Marks) d) Explain any six limitations of ratio analysis. (6 Marks) e) Explain any six reasons why individuals prefer current incomes rather than future income. (6 Marks) Question Two (20 Marks) a) Using suitable example, discuss any five classes of ratios. (10 Marks) b) Describe any five objectives of an organization and how they relate with the normative goal. (10 Marks) Question Three (20 Marks) a) The following figures relate to an electrical appliance wholesaler. The stock at the beginning and at the end of the year are same: (10 Marks) Kshs. Current assets Kshs. Sales 1,500 Stock 125 Cost of sales 1,000 Debtors 250 Gross profit 500 Cash 225 Current liabilities Trade creditors 200 Required: (i) Calculate (I) Current ratio (II) Quick ratio (III) Average debt collection period (IV) Average creditor’s payment period b) Outline the advantages of using financial ratios as an analysis tool. (10 Marks) Question Four (20 Marks) a) Discuss any five methods used in capital budgeting. Citing their advantages and disadvantages. (10 Marks) b) Outline any five factors that affect the cost of capital of an entity. (10 Marks) Question Five (20 Marks) a) Describe the concept of the time value of money. (10 Marks) b) Explain why you think investment decisions are important to an organization. (10 Marks)

W1-2-60-1-6 JOMO KENYATTA UNIVERSITY OF AGRICULTURE AND TECHNOLOGY University Examinations 2014/2015 SECOND YEAR FIRST SEMESTER EXAMINATION FOR THE DEGREE OF BACHELOR OF COMMERCE HBC 2205: INTERMEDIATE MICROECONOMIC THEORY DATE: AUGUST 2014 TIME: 2 HOURS INSTRUCTIONS: ANSWER QUESTION ONE (COMPULSORY) AND ANY OTHER TWO QUESTIONS Question One (30 Marks) a) Explain the following terms as used in economics, microeconomics in particular: (i) Normal Good (2 Marks) (ii) Economic efficiency (2 Marks) (iii) Revealed preference (2 Marks) (iv) The Budget Line (2 Marks) (v) Consumer surplus (2 Marks) (vi) Sunk cost (2 Marks) (vii) Cross elasticity (2 Marks) (viii) Economies of scale (2 Marks) (ix) Monopolistic competition (2 Marks) (x) Moral Hazard and Adverse Selection (2 Marks) b) What is Pareto Efficient Allocation? Is it possible to have a Pareto Efficient Allocation where someone is worse off than he, or she, is at an Allocation that is not Pareto Efficient? (10 Marks) Question Two (20 Marks) What is a budget line? And what is a budget set? How can we be sure that the consumer will be on the Budget Line and not anywhere else? (20 Marks) Question Three (20 Marks) Please explain what is meant by the concept of the market in economics. How would the existence of Asymmetry in Information affect the market? (20 Marks) Question Four (20 Marks) a) The following are heights of players in a certain game. The heights are given in inches: 82 78 77 84 79 Please calculate the variance and the Standard Deviation of the data, explaining what the variance and the standard deviation mean? Why is this particular deviation referred to the “Standard Deviation”? b) The Standard Deviation as a Measure of Dispersion is said to satisfy a critical condition, that of CHEBYSHEV’S THEOREM. Please explain. (20 Marks) Question Five (20 Marks) a) Per Capital Income in all countries is defined as Gross Domestic Product (GDP), divided by the country’s’ population and GDP is the value of all goods and services produced in the economy during a given time period, one year in almost all cases. Thus PCI is a straight forward average, the Arithmetic Mean. And so what could be the main weaknesses of PCI and do you think the Kenyan situation may actually be a clear case of the main weakness of the normal average, the Mean, the Arithmetic Mean? b) What factors determine the shape of the Long – Run supply curve of an industry? (20 Marks)

W1-2-60-1-6 JOMO KENYATTA UNIVERSITY OF AGRICULTURE AND TECHNOLOGY University Examinations 2014/2015 FIRST YEAR FIRST SEMESTER EXAMINATION FOR THE DEGREE OF BACHELOR OF COMMERCE HBC 2102: INTRODUCTION TO BUSINESS DATE: AUGUST 2014 TIME: 2 HOURS INSTRUCTIONS: ANSWER QUESTION ONE (COMPULSORY) AND ANY OTHER TWO QUESTIONS Question One (30 Marks) Audiotech Electronics, founded in 1959 by a father and son, currently operates a 35,000 square – foot factory with 75 employees. The company produces control consoles for television and radio stations and recording studios. It is involved in every facet of production – designing the systems, installing the circuits in its computer boards and even manufacturing and painting the metal cases housing the consoles. The company’s products are used by all major broadcast and cable networks. The firms newest products allow television correspondents to simultaneously hear and communicate with their counterparts in different geographic locations. Audiotech has been very successful meeting its customers’ needs efficiently. Audiotech sales have historically been strong in the United States, but recently growth is stagnating. Even though Audiotech is a small family-owned firm, it believes it should evaluate and consider global expansion. Required: a) What are the key issues that need to be considered in determining global expansion? (12 Marks) b) What are some of the unique problems that a small business might face in global expansion that larger firms would not? (11 Marks) c) What options are there for Audiotech in its desire to go global? (7 Marks) Question Two (20 Marks) a) Discuss what it means to practice good business ethics and highlight three factors that influence ethical behaviour. (16 Marks) b) Analyze the kind of operations that are conducted in businesses that are classified according to their level of activity. (4 Marks) Question Three (20 Marks) a) You have received a bank loan you applied for 2 months ago. Your intention is to start a business. After evaluating all other options, you decide to be a sole proprietor. What advantages and disadvantages are you going to face in this kind of business? (10 Marks) b) With the help of a diagram, illustrate how the forces of supply and demand operate to determine the price of commodities. (10 Marks) Question Four (20 Marks) a) Evaluate the social and legal concerns in e – commerce. (10 Marks) b) Pricing decisions are very critical to any business. Critically analyze these decisions. (10 Marks) Question Five (20 Marks) a) Discuss the various types of distribution channels in business. (10 Marks) b) As a marketing manager, what strategy would you apply in differentiating products of your company using the marketing mix? (10 Marks)