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BAC2318 CRIMINAL LAW. KCA Past Paper

UNIVERSITY EXAMINATIONS: 2016/2017
EXAMINATION FOR THE DEGREE OF BACHELOR OF APPLIED
COMPUTING
BAC2318 CRIMINAL LAW
FULL TIME/PART TIME
DATE: AUGUST, 2017 TIME: 2 HOURS
INSTRUCTIONS: Answer Question One & ANY OTHER TWO questions.

QUESTION ONE
The “ Nullum Crimen Sine Lege, Nulla Poene Sine Lege” is a crucial principle in criminal law.
In light of the above statement and other facts;
(i) Explain the general rule of the principle
(ii) Discuss the historical background of this principle
(iii) Using case law, briefly discuss what are its main features or issues
(iv) Discuss the Kenyan position regarding the principle (30 Marks)
QUESTION TWO
a) Actus non facit reum and nisi mens sit rea deals with criminal liability. Analyze the main
rules that govern this principle (6 Marks)
b) Explain the various conditions governing Actus reus (6 Marks)
c) Explain the four (4) state of mind which separately or together can constitute the
necessary mens rea for the commission or omission of an offence. (8 Marks)
QUESTION THREE
a) The consequence of criminal liability is punishment. While defining punishment analyze
the various forms of punishment in Kenya (12 Marks)
b) What are the main justification of punishment (8 Marks)
QUESTION FOUR
There are enumerable reasons why an accused person should avoid liability; these are the
incapacitating conditions and justification or excuses. Having this in mind;
(i) Explain at least five incapacitating conditions of criminal liability. (10 Marks)
(ii) Explain at least five justification or excuses of criminal liability. (10 Marks)
QUESTION FIVE
a) Define the term crime using different scholars (4 Marks)
b) Differentiate between strict and vicarious liability (6 Marks)
c) Outline the arguments for and against strict liability (6 Marks)
d) Highlight two types of offences under the doctrine of strict liability (4 Marks)

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BAC2310 COMPUTER GAME DESIGN. KCA Past Paper

UNIVERSITY EXAMINATIONS: 2016/2017
EXAMINATION FOR THE DEGREE OF BACHELOR OF APPLIED
COMPUTING
BAC2310 COMPUTER GAME DESIGN
FULL TIME/PART TIME
DATE: AUGUST, 2017 TIME: 2 HOURS
INSTRUCTIONS: Answer Question One & ANY OTHER TWO questions.

QUESTION ONE (30 MARKS)
a) Define the following terms as used in game design and architecture:
i. Game [2 Marks]
ii. Game engine [2 Marks]
iii. Game code [2 Marks]
b) Explain why game development generally uses an iterative process.[6 Marks]
c) Briefly describe the difference between a vector and a scalar. [2 Marks]
d) Given vectors A and B as shown, draw the following:

e) Explain using examples, the purpose of a collisons and physics subsystem in a game
engine. [4 Marks]
f) Suppose you are adding a new kind of entity (e.g. a 3D cube/sphere/polygon) to a
game using an entity system, such as the one provided in Unity. Explain roughly the
major steps that you would follow to place your entity within the 3D system.
[6 Marks]
QUESTION TWO (20 MARKS)
a) Describe why a scripting system is important in game design
[2 Marks]
b) State any three game engines available in the market. [3 Marks]
A B
c) Describe why it is possible to use a single game engine for many different games.
[4 Marks]
d) Define the term unit vector [2 Marks]
e) Draw A · U using the diagram in question one (d), given that |U| = 1. Hint: U is a unit vector
[3 Marks]
f) Explain the following subsystems in a game runtime engine:
i. Human Interface Devices [2 Marks]
ii. Resources manager [2 Marks]
iii. Gameplay foundation system [2 Marks]
QUESTION THREE (20 MARKS)
a) Game studios are usually composed of five basic disciplines which the game
development team will fall under. Explain the basic disciplines. [10 Marks]
b) Explain the grid method for collision detection. In what situations is this method
likely to work well? [4 Marks]
c) Using diagrams describe the two types of coordinate system used in game design.
[4 Marks]
d) Define the following terms as used in Unity game studio [2 Marks]
i. Prefab
ii. Rigidbody
QUESTION FOUR (20 MARKS)
a) Version control is crucial whenever software (including games) is developed by a
team of multiple engineers. Describe four reasons why version control is an important
tool of trade in game design and development. [4 Marks]
b) Give two main kinds of calculations that are likely to be performed by a physics
engine, and explain how each is likely to be used in a game. [4 Marks]
c) Define the term scene as used in game design. [2 Marks]
d) Describe the shutdown and start methods used in a rendering manager.
[4 Marks]
e) The most common local lighting model employed by game rendering engines is the
Phong reflection model. It models the light reflected from a surface as a sum of three
distinct terms. Name and describe the three terms. [6 Marks]
QUESTION FIVE (20 MARKS)
a) Explain any five most common game genres in game design [10 Marks]
b) Imagine a game character representing a miner, who has the following main activities,
go to the gold mine and dig for nuggets until his pockets are full; then he will go to the
bank to deposit the gold. The activities can be interrupted if he gets thirsty or tired. If
he is thirsty, he will go to the milkbar for a drink to quench his thirst; if he is tired, he
will go home and get rested.
i. What is a Finite State Machine? [2 Mark]
ii. Identify the states of the miner and draw a state diagram indicating the state
transitions. [8 Marks]

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BAC1107 DIGITAL PHOTOGRAPHY AND VIDEO EDITINGa. KCA Past Paper

UNIVERSITY EXAMINATIONS: 2016/2017
EXAMINATION FOR THE DEGREE OF BACHELOR OF APPLIED
COMPUTING
BAC 2310: COMPUTER GAME DESIGN
FULL TIME/PART TIME
DATE: AUGUST, 2017 TIME: 2 HOURS
INSTRUCTIONS: Answer Question One & ANY OTHER TWO questions.

QUESTION ONE (30 MARKS)
a) Define the following terms as used in game design and architecture:
i. Game [2 Marks]
ii. Game engine [2 Marks]
iii. Game code [2 Marks]
b) Explain why game development generally uses an iterative process.[6 Marks]
c) Briefly describe the difference between a vector and a scalar. [2 Marks]
d) Given vectors A and B as shown, draw the following:

e) Explain using examples, the purpose of a collisons and physics subsystem in a game
engine. [4 Marks]
f) Suppose you are adding a new kind of entity (e.g. a 3D cube/sphere/polygon) to a
game using an entity system, such as the one provided in Unity. Explain roughly the
major steps that you would follow to place your entity within the 3D system.
[6 Marks]
QUESTION TWO (20 MARKS)
a) Describe why a scripting system is important in game design
[2 Marks]
b) State any three game engines available in the market. [3 Marks]
A B
c) Describe why it is possible to use a single game engine for many different games.
[4 Marks]
d) Define the term unit vector [2 Marks]
e) Draw A · U using the diagram in question one (d), given that |U| = 1. Hint: U is a unit vector
[3 Marks]
f) Explain the following subsystems in a game runtime engine:
i. Human Interface Devices [2 Marks]
ii. Resources manager [2 Marks]
iii. Gameplay foundation system [2 Marks]
QUESTION THREE (20 MARKS)
a) Game studios are usually composed of five basic disciplines which the game
development team will fall under. Explain the basic disciplines. [10 Marks]
b) Explain the grid method for collision detection. In what situations is this method
likely to work well? [4 Marks]
c) Using diagrams describe the two types of coordinate system used in game design.
[4 Marks]
d) Define the following terms as used in Unity game studio [2 Marks]
i. Prefab
ii. Rigidbody
QUESTION FOUR (20 MARKS)
a) Version control is crucial whenever software (including games) is developed by a
team of multiple engineers. Describe four reasons why version control is an important
tool of trade in game design and development. [4 Marks]
b) Give two main kinds of calculations that are likely to be performed by a physics
engine, and explain how each is likely to be used in a game. [4 Marks]
c) Define the term scene as used in game design. [2 Marks]
d) Describe the shutdown and start methods used in a rendering manager.
[4 Marks]
e) The most common local lighting model employed by game rendering engines is the
Phong reflection model. It models the light reflected from a surface as a sum of three
distinct terms. Name and describe the three terms. [6 Marks]
QUESTION FIVE (20 MARKS)
a) Explain any five most common game genres in game design [10 Marks]
b) Imagine a game character representing a miner, who has the following main activities,
go to the gold mine and dig for nuggets until his pockets are full; then he will go to the
bank to deposit the gold. The activities can be interrupted if he gets thirsty or tired. If
he is thirsty, he will go to the milkbar for a drink to quench his thirst; if he is tired, he
will go home and get rested.
i. What is a Finite State Machine? [2 Mark]
ii. Identify the states of the miner and draw a state diagram indicating the state
transitions. [8 Marks]

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BAC1107 DIGITAL PHOTOGRAPHY AND VIDEO EDITING. KCA Past Paper

UNIVERSITY EXAMINATIONS: 2016/2017
EXAMINATION FOR THE DEGREE OF BACHELOR OF SCIENCE IN
APPLIED COMPUTING
BAC1107 DIGITAL PHOTOGRAPHY AND VIDEO EDITING
FULL TIME/PART TIME
DATE: AUGUST, 2017 TIME: 2 HOURS
INSTRUCTIONS: Answer Question One & ANY OTHER TWO questions.

QUESTION ONE
a) Define the term audio editing (2 Marks)
b) Give four differences between analog photography and desktop photography.
(8 Marks)
c) How does a pin-hole camera work (4 Marks)
d) A digital camera has an aspect ratio of 16:9, capacity of 16GB, colour depth of 4 bits. If
the camera can take 800 still photos, calculate its resolution. (8 Marks)
e) You have been contracted to do a documentary for a new dairy company, what essentials
will you have (8 Marks)
QUESTION TWO
a) Explain photo editing (4 Marks)
b) What are the critical success factors in photo editing (6 Marks)
c) For outdoor photo shooting, what the precautions necessary for excellent results
(5 Marks)
d) Discuss how a digital camera has revolutionalised photography in the 21st century
(5 Marks)
QUESTION THREE
a) State reasons why data compression is important in multimedia applications such as
video editing (4 Marks)
b) Demonstrate how Lempel Ziv algorithm works, using a suitable example (6 Marks)
c) Why should you crediting be done in photography and video productions (4 Marks)
d) What are the activities in scripting (6 Marks)
QUESTION FOUR
a) Explain digital watermarking (2 Marks)
b) Distinguish between
i) Firewire and USB cable (4 Marks)
ii) SDTV and HDTV (4 Marks)
iii) Video production and Animation production (4 Marks)
c) Define the following roles
i) Producer (2 Marks)
ii) scriptwriter (2 Marks)
d) An audio file has 16bit stereo, 96khz, 6min duration. Calculate its size in megabytes
(4 Marks)
QUESTION FIVE
a) How much memory is required for an 1200 by 1080 display resolution with thousands of
colors per pixel (16 bit)? [3 Marks]
b) State four factors that are essential in digital recording [ 4 Marks]
c) What is the size of uncompressed sound with CD quality for 1 minute of audio:
[4 Marks]
d) Using Huffman encoding algorithm for a data file that has the following characters
Character A B C D E
Frequency 10 16 19 7 17
i) Give the Huffman tree and code (6 Marks)
ii) Using (i) encode AAEBDEDC (3 Marks)

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BAC 2511 CYBER SECURITY . KCA Past Paper

UNIVERSITY EXAMINATIONS: 2016/2017
EXAMINATION FOR THE DEGREE OF BACHELOR OF APPLIED
COMPUTING
BAC 2511 CYBER SECURITY
FULL TIME/PART TIME
DATE: AUGUST, 2017 TIME: 2 HOURS
INSTRUCTIONS: Answer Question One & ANY OTHER TWO questions.

QUESTION ONE [30 MARKS]
a) (i) Explain briefly why ethical hacking is necessary. 3 Marks
(ii) Outline the technical and non-technical skills of an ethical hacker 5 Marks
b) Differentiate between:
(i) Passive reconnaissance and active reconnaissance 2 Marks
(ii) Authenticity and Integrity 2 Marks
(iii) Suicide hackerand cyber terrorist 2 Marks
c) As a security professional, it may help you to defend against hackers and other
information security criminals if you recognize that they often consider their motivations
to be neither illicit nor unethical. Discuss any four ethics fallacies and their motivating
factors. 4 Marks
d) Discuss briefly any three major characteristics exhibited by most cyber criminals.
6 Marks
e) Explain briefly the three people involved in a cybercrime. 3 Marks
f) Explain any three common motives for committing cyber crimes 3 Marks
QUESTION TWO [20 MARKS]
a) With the aid of a diagram explain the procedure used by hackers in a typical botnet setup
10 Marks
b) With the aid of a diagram, outline the organized cyber crime organizational chart.
5 Marks
c) Explain the steps followed in creating a trojan to infect systems. 5 Marks
QUESTION THREE [20 MARKS]
a) Profilers draw inferences on about the criminal’s personality and other characteristics
based on what? 4 Marks
b) Explain any five responsibilities of an incident response team 5 Marks
c) Explain briefly the any five reasons why penetration testing is conducted 5 Marks
d) (i) What is a crimeware toolkit? 1 Mark
(ii) With the aid of a diagram, explain how the crimeware toolkit is used.
5 Marks
QUESTION FOUR [20 MARKS]
a) State any four myths about cybercriminals 4 Marks
b) Discuss briefly the activities in each of the phases of penetration testing. 6 Marks
c) What security issues arise from mobile App Stores? 4 Marks
d) (i) Discuss briefly what constitutes a computer crime. 2 Marks
(ii) Each type of evidence is important in a criminal investigation, because any piece
of evidence may have a enormous impact on the outcome of the case. Describe briefly
any four types of evidence. 4 Marks
QUESTION FIVE [20 MARKS]
a) (i) Briefly describe how a sniffer works. 3 Marks
(ii) With the aid of a diagram, describe the network components used for lawful
intercept. 4 Marks
b) With the aid of a diagram, describe the hacking cycle. 5 Marks
c) (i) What is computer fraud? 1 Mark
(ii) What are the four major categories of computer fraud? 4 Marks
(iii) What recent developments are contributing to increasing risk of computer fraud?
3 Marks

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BAC 2508  SOCIOLOGY . KCA Past Paper

UNIVERSITY EXAMINATIONS: 2016/2017
EXAMINATION FOR THE DEGREE OF BACHELOR OF APPLIED
COMPUTING
BAC 2508 SOCIOLOGY
FULL TIME/PART TIME
DATE: AUGUST, 2017 TIME: 2 HOURS
INSTRUCTIONS: Answer Question One & ANY OTHER TWO questions.

QUESTION ONE
a) In your own words define the term sociology. (2Marks)
b) Describe how the following agents of socialization have influenced your life and identify the
most important one. (12Marks)
i) Family
ii) Peers
iii) Media
iv) Schools
c) Describe the role of sociologists in society. (8Marks)
d) What is the most striking thing that you have learnt in this class? (2Marks)
e) Describe briefly three types of social problems in our society. (6Marks)
QUESTION TWO
a) All cultures are characterized by some degree of social inequality. Discuss. (10Marks)
b) Define the term collective behaviour. (2Marks)
c) Select one social movement that is currently working for change in your town or university.
Discuss the implication of the movement in relation ot social change. (8Marks)
QUESTION THREE
a) Explain the stages of development of self-identity using Cooly Looking – Glass self.
(6Marks)
b) Using examples, explain the social functions of schools/education. (10Marks)
c) State four types crime. (4Marks)
QUESTION FOUR
a) What role does religion play in your university community? To what extent do students, faculty
members and administrators reveal or promote their religious preferences and affiliations.
(10Marks)
b) Explain the key principles of self- awareness. (6Marks)
c) Briefly describe the relationship between feelings and behaviour. (4Marks)
QUESTION FIVE
a) Examine how you relate with your peers. How can you improve your relationships in different
situations? (10Marks)
b) Analyse the challenges faced by the youth and suggest possible solutions. (10Marks)

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DRAWING AND PAINTING. KCA Past Paper

KCA UNIVERSITY
University Examinations
EXAMINATION FOR BAC A&G
DRAWING AND PAINTING
AUGUST 2017 TIME: 2HR
INSTRUCTIONS: 1. Read the instructions on the Answer booklet carefully.

2. Answer QUESTION ONE and any other TWO questions
Q1
a) Define the following terms as used in drawing and painting. [8 marks]
i. pencil
ii. line
iii. texture
iv. color
v. value
vi. medium
b) Give the difference between shape and form. Sketch two basic shapes and their corresponding
forms [6 marks]
c) Differentiate between the cross-hatch and scumbling types of shading. Make sketches
[4
marks]
d) Name and define the types of shadow shown in fig 1 below [4 marks]
e) Give two uses of erasers in pencil art [2 marks]
f) Name two types of pencils [1 marks]
g) Give the entire range of pencil (both hard and soft) and give the uses of both groups of pencils


[3 marks]
Q2
Use smooth shading to bring form to the pre-prepared face. Use one colored pencil and 2B pencil
Q3
Draw the composition in the front. Keep proper proportions. Use the cross-hatch or scumbling for
form
Q4
Divide the A4 paper as shown below. In each section draw two or three shapes (The shapes can
overlap or inside each other, or any other arrangement. Shapes and lines can transverse sections. Using
contrast use dark colors for shape and Light colors for background, then change to light colors for
shapes and dark colors for the background.


Q5
Make a caricature (cartoon) of the picture provided. Colors and shading are to be used

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BUSS305  STATISTICAL DECISION MAKING. KCA Past Paper

UNIVERSITY EXAMINATIONS: 2016/2017
EXAMINATION FOR THE DEGREE OF BACHELOR OF BUSINESS IN
INFORMATION TECHNOLOGY
BUSS305 STATISTICAL DECISION MAKING
SPECIAL /SUPPLEMENTARY EXAMINATION
DATE: JULY, 2017 TIME: 2 HOURS
INSTRUCTIONS: Answer Question One & ANY OTHER TWO questions.

QUESTION ONE – Compulsory (Total Marks: 30)
a) Give three reasons why researchers prefer using samples instead of the population when
collecting data. (3 Marks)
b) State and briefly discuss three properties of a good estimator. (3 Marks)
c) State two basic reasons for the need for forecast in any field. (2 Marks)
d) State the characteristics of a binomial distribution. (2 Marks)
e) Differentiate the following terms
i) Estimate and estimator (2 Marks)
ii) Point estimation and interval estimation (2 Marks)
f) A bank receives 30 applicants for a loan. The research team has established that 25% of the
businesses will file for bankruptcy in 5 years. What is the probability that 4 of the applicants
file for bankruptcy in this period? (3 Marks)
g) Let X be a normal random variable with


h) A construction zone on a highway has a posted speed limit of 40 miles per hour. The speeds
of vehicles passing through this construction zone are normally distributed with a mean of 46
miles per hour and a standard deviation of 4 miles per hour. Find the percentage of vehicles
passing through this construction zone that are travelling at speeds between 50 and 55 miles
per hour. (5 Marks)
QUESTION TWO (20 MARKS)
a. A publishing company has just published a new college textbook. Before the company
decides the price at which to sell the book, it wants to know the average price of all such
textbooks in the market. The research department at the company took a sample of 36
comparable textbooks and collected information on their prices. The information produced a
mean price of $ 70.50 for this sample. It is known that the standard deviation of all such
textbooks is $ 4.50.
i. What is the point estimation of the mean price of all such college textbooks.
(1 Mark)
ii. What is the margin of error for this estimate? (3 Marks)
iii. Construct a 90% confidence interval for the mean price of all such college
textbooks. (4 Marks)
b. A sample of seven households from a low income neighbourhood was selected and data on
their income and expenditure collected. The information obtained (in hundreds of dollars) is
given in the table below.

i. Find the least square regression line for the data. (9 Marks)
ii. Using this estimated regression model, find the predicted value of food expenditure
for a family whose monthly income is $ 3500. (2 Marks)
iii. Find the estimation error in your regression model. (1 Mark)
QUESTION THREE (20 MARKS)
a. Forecasts are vital to every business organization and for every significant management
decision. Briefly discuss five areas in which forecasting is widely used. (10 Marks)
b. You work in the Quality Control Department for Philips. A light bulb life has a normal
distribution with mean,
2000
hours and standard deviation
200
hours. What is the
probability that a bulb will last
i. less than 1470 hours? (4 Marks)
ii. between 1800 hours and 2200 hours (3 Marks)
iii. between 2130 hours and 2500 hours (3 Marks)
QUESTION FOUR (20 MARKS)
a. Among people in the managerial or professional occupations in Kenya, about 48% are
female. For three people selected at random from these occupations, find the probability that:
i. All three are female (3 Marks)
ii. Atleast one is female (4 Marks)
iii. None is female (3 Marks)
b. The Governor of Nairobi claims that the average net worth of families living in the city is
at least $ 300,000. A random sample of 100 families selected from this city produced a mean
net worth of $ 288,000 with a standard deviation of $ 80,000. Using a 2.5% significance
level, can you conclude that the Governor’s claim is false?
(10 Marks)
QUESTION FIVE (20 MARKS)
a. On average, a secretary makes two typing errors per page. Find the probability that she
makes
i. No errors (2 Marks)
ii. Fewer than two errors on the next pages she types. (4 Marks)
b. Lots of 40 components each are called acceptable if they contain no more than three
defectives. The procedure for sampling the lot is to select 5 components at random and
reject the lot if a defective item is found. What is the probability that exactly one defective
item will be found in the sample if there are three defective items in the entire lot?
(4 Marks)
c. Define the term “Decision Making”, hence state and briefly discuss the managerial decision
making process. (10 Marks)

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BUSS 307 ENTERPRISE RESOURCE PLANNING. KCA Past Paper

UNIVERSITY EXAMINATIONS: 2016/2017
EXAMINATION FOR THE DEGREE OF BACHELOR OF BUSINESS IN
INFORMATION TECHNOLOGY
BUSS 307 ENTERPRISE RESOURCE PLANNING
FULL TIME/PART TIME/DISTANCE LEARNING
DATE: AUGUST, 2017 TIME: 2 HOURS
INSTRUCTIONS: Answer Question One & ANY OTHER TWO questions.

QUESTION ONE (20 MARKS)
a) Describe five function modules of an ERP. (5 Marks)
b) Should every business invest in an ERP package? Justify your answer. (2 Marks)
c) How has the need for SOX compliance impacted ERP systems? (5 Marks)
d) List the major differences between ERP life cycle and SDLC. (4 Marks)
e) Identify four factors considered when costing an ERP system (4 Marks)
f) Identify four popular ERP software available in the market. (2 Marks)
g) Describe the steps involved in OPM3. (6 Marks)
h) Identify four popular ERP software available in the market (2 Marks)
QUESTION TWO (20 MARKS)
a) Many ERP vendors offer virtualization options for implementation.
i) Describe two common models used for ERP virtualisation implementation.
(8 Marks)
ii) Discuss the benefits and drawbacks of using ERP virtualisation implementation.
(8 Marks)
iii) Describe the virtualisation solutions offered by Microsoft and Oracle for their ERP
systems. (4 Marks)
QUESTION THREE (20 MARKS)
a) Identify the differences between a transactional and reporting database? (4 Marks)
b) Briefly describe the ethical considerations associated with ERP systems? (6 Marks)
c) In relation to ERP discuss what are third-party products and why are they needed.
(10 Marks)
QUESTION FOUR (20 MARKS)
a) ERP system architecture is organized in layers or tiers .Three-layer architecture is the
most prevalent today.
i. Identify the layers included (3 Marks)
ii. Describe the role of each layer identified in (a) (9 Marks)
iii. Describe the advantages of having a layer systems architecture (6 Marks)

QUESTION FIVE (20 MARKS)
a) Differentiate between service-oriented architecture and Web services architecture for
ERP systems (8 Marks)
b) Discuss how an organization with an ERP system should plan for a disaster
(8 Marks)
c) List the major differences between ERP life cycle and SDLC (4 Marks)

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BUSS 306 EVALUATION OF BUSINESS INVESTMENTSa. KCA Past Paper

UNIVERSITY EXAMINATIONS: 2016/2017
EXAMINATION FOR THE DEGREE IN BACHELOR OF BUSINESS
INFORMATION TECHNOLOGY
BUSS 306 EVALUATION OF BUSINESS INVESTMENTS
MODE: FULL TIME/PART TIME/DISTANCE LEARNING
ORDINARY EXAMINATIONS
DATE: AUGUST, 2017 DURATION: 2 HOURS
INSTRUCTIONS: Answer question ONE and any other TWO questions

QUESTION ONE
a) Explain the benefits of merger and acquisition. (10 Marks)
b) Explain the main defensive tactics that a company defends itself from hostile takeover.
(10 Marks)
c) Mr. Kanthonzweni has a capital of sh 1,000,000 which he wishes to invest in three sectors of the
economy agriculture, service and manufacturing. The funds will be allocated as follows;
Sector Amount invested
Agriculture 400,000
Service 200,000
Manufacturing 400,000
Details on the possible future economic states, their probabilities of occurrence and the expected return
for each of the sectors is as shown below;
Possible future probability of expected return of each sector
Economic state occurrence


Required;
i) Determine the risk associated with the investment in each of the three sectors above (8 Marks)
ii) Determine the expected portfolio return (2 Marks)
QUESTION TWO
An investor is evaluating six portfolios with the following characteristics;

The expected return on the market portfolio is 12% with an accompanying standard deviation of 4%. The
risk free rate of interest is 5%.
Required:
a) Using the capital market line, advice the investor on which of the above portfolios are efficient and
which are inefficient.
(8 Marks)
b) Illustrate using a well labeled diagram how these portfolios appear on the capital market line (CML)
(8 Marks)
b) In the case of an inefficient portfolio on (a) above state what the standard deviation should be for
efficiency to be achieved with the given expected return.
(4 Marks)
QUESTION THREE
a) Explain the following terms as applicable in merger and acquisitions:
Corporate Restructuring
i. Merger (2 Marks)
ii. Acquisition (2 Marks)
iii. Consolidation (2 Marks)
iv. Absorption (2 Marks)
b) Explain the three types of mergers (6 Marks)
c) Discuss THREE strategies that a company can explore to avoid a hostile takeover
(6 Marks)
QUESTION FOUR
The directors of Jarida limited, wish to use an alternative estimate of cost of capital. They prefer to use
the capital asset pricing model. The following details have been provided;
Portfolio / Return % variance of returns% covariance of returns

Required;
i. Determine the beta coefficient of each portfolio / security and interpret the results of each.
( 14 Marks)
ii. Predict the cost of capital of Jarida limited using the capital asset pricing model.
(6 Marks)
QUESTION FIVE
a) Highlight FOUR uses of capital asset pricing model (CAPM) (4 Marks)
a) Differentiate between portfolio theory and capital asset pricing model (CAPM) (10 Marks)
b) Discuss THREE assumptions of Arbitrage Pricing Theory (APT) (6 Marks)