May 27, 2022

MAASAI MARA UNIVERSITY REGULAR UNIVERSITY EXAMINATIONS 2013/2014 ACADEMIC YEAR FOURTH YEAR SECOND SEMESTER SCHOOL OF BUSINESS AND ECONOMICS BACHELOR OF HOTEL AND HOSPITALITY MANAGEMENT   COURSE CODE: BHM 405 COURSE TITLE: EVENTS AND CONVENTIONS MANAGEMENT DATE:22ND APRIL 2014 TIME: 9.00AM – 12.00PM INSTRUCTIONS TO CANDIDATES SECTION A is compulsory Answer any TWO questions in SECTION B This paper consists of 2 printed pages. Please turn over. Section A:Compulsory 1. In relation to event planning briefly highlight the following elements: a) Goals and Objectives b) Timelines c) Agenda (6marks) 2. Briefly describe the importance of each step in the site selection process (9 marks) 3. Discuss the FIVE key issues related to marketing and how they can be incorporated into the marketing strategy of an event.(10 marks) Section B: Answer any THREE in this section 4.Exhaustively describe the following contracts as used in event management: i) Hotel contracts ii) Convention center contracts iii) Supplier contracts (15 marks) 5.a) Discuss some of the cost saving ideas you would employ when determining food and beverage for an event (9 marks) b) Describe any THREE seating arrangements used during meal service in an event. (6 marks) 6. Elaborate on the factors to consder when selecting a room that will enhance the learning environment for participants in a meeting (15 marks) 7. a) Highlight the impotance of providing hospitality and recreation events in conjunction with a meeting. (5 marks) b) Discuss the advantages and disadvantages of offering advance registration for a meeting (5 marks) c) Briefly describe evaluation as an essential function in meeting management (5 marks)  

  MAASAI MARA UNIVERSITY REGULAR UNIVERSITY EXAMINATIONS 2013/2014 ACADEMIC YEAR SECOND YEAR SECOND SEMESTER SCHOOL OF BUSINESS AND ECONOMICS BACHELOR OF HOTEL AND HOSPITALITY MANAGEMENT   COURSE CODE: BHM 203 COURSE TITLE: FOOD AND BEVERAGE MANAGEMENT DATE: 14TH APRIL, 2014 TIME: 9.00 A.M. – 12.00P.M. INSTRUCTIONS TO CANDIDATES SECTION A is compulsory Answer any TWO questions in SECTION B This paper consists of 2 printed pages. Please turn over. Section A. Attempt all the questions from this section. 30 Marks Question one a) As the food and beverage manager of your establishment, identify the general considerations that you would make in setting up a new outlet for your establishment. (10 Marks) b) Explain the following subsystems of the food and beverage system; i) Purchasing (5 Marks) ii) Storing (5 Marks) iii) Issuing (5 Marks) iv) Menu planning (5 Marks) Section B. Attempt any TWO questions from this section. 40 Marks Question two a) Describe the following types of bars; i) Front bar ii) Service bar iii) Special purpose bar (10 Marks) b) Explain the role of the menu in the management of food and beverage establishment. (10 Marks) Question three You have been appointed as the head of the secretariat formed by your hotel for the purpose of developing a menu to be used in your new outlet in Kigali Rwanda. Identify and explain the factors that would affect the task of developing the menu. (20 Marks) Question four a) Define meal experience (4 Marks) b) Describe the general factors affecting a customer’s choice of a meal experience. (16 Marks)

MAASAI MARA UNIVERSITY REGULAR UNIVERSITY EXAMINATIONS 2013/2014 ACADEMIC YEAR SECOND YEAR SECOND SEMESTER SCHOOL OF BUSINESS AND ECONOMICS BACHELOR OF HOTEL AND HOSPITALITY MANAGEMENT   COURSE CODE: BHM 202 COURSE TITLE: FOOD AND BEVERAGE SERVICE DATE:17TH APRIL 2014 TIME: 2.00PM – 5.00PM INSTRUCTIONS TO CANDIDATES SECTION A is compulsory Answer any TWO questions in SECTION B This paper consists of 2 printed pages. Please turn over. SECTION A 1. a) Distinguish between commercial and non commercial food service operations (8 marks) b) With the aid of an organization chart, describe the responsibilities of various personnel in food and beverage department (12 marks) 2. Elaborate on various tasks and responsibilities of a restaurant manager (10 marks) SECTION B 3. a) Describe the following terms and their service styles: i. Fondue ii. Flambé iii. Gueridon iv. Carving (12 marks) b) Elaborate on at least FOUR factors to be considered when setting up a food service business (8 marks) 4. a) Describe the various categories of equipment used in food and beverage service and their handling techniques (8marks) b) Identify FOUR different service methods and discuss the salient differences among them (12 marks) 5. A restaurant manager will ensure new members of staff are given a list of procedures to follow throughout the service of a meal. Identify procedures that should take place from the moment a server reports to work until departure of the last guest. (20 marks)

    MAASAI MARA UNIVERSITY REGULAR UNIVERSITY EXAMINATIONS 2013/2014 ACADEMIC YEAR SECOND YEAR SECOND SEMESTER SCHOOL OF BUSINESS AND ECONOMICS BACHELOR OF HOTEL AND HOSPITALITY MANAGEMENT   COURSE CODE: BHM 201 COURSE TITLE: FOOD AND BEVERAGE PRODUCTION DATE:15TH APRIL 2014 TIME: 2.00PM – 5.00PM INSTRUCTIONS TO CANDIDATES SECTION A is compulsory Answer any TWO questions in SECTION B This paper consists of 2 printed pages. Please turn over. Section A. Attempt all the questions from this section. 30 Marks. Question one Describe terms as used in the food and beverage production sector. a) Cookery (3 Marks) b) Food Production (3 Marks) c) Cuisine (2 Marks) d) Beverage (2 Marks) Question two Outline the features of the following food production areas a) The Larder (5 Marks) b) The souse section (5 Marks) Question three Outline the functions of the following the functions of the following members of the kitchen brigade. a) Chef de partie’ (5 Marks) b) Chef de saucier (5 Marks) Section B. Attempt any TWO questions from this section. 40 Marks Question four Meat is a major component of food cost accounting for between 40 and 60 percent of the total food cost in any menu. Describe meat. (20 Marks) Question five a) Identify the key points to consider while storing and processing fish (10 Marks) b) Describe the word TEXTURE as used to describe the characteristic of finished food products (10 Marks) Question six a) List and explain the general considerations made in menu planning (10 Marks) b) As a food production professional, why would you recommend food to be cooked by steaming as opposed to any other cooking method? (5 Marks) c) Identify the rules that must be followed while using steaming as a method of cooking (5 Marks)  

MAASAI MARA UNIVERSITY REGULAR UNIVERSITY EXAMINATION 2014/2015 ACADEMIC YEAR SECOND YEAR SECOND SEMESTER SCHOOL OF BUSINESS AND ECONOMICS BACHELOR OF HOTEL AND HOSPITALITY MANAGEMENT   COURSE CODE: BHM 106 COURSE TITLE: FINANCIAL MANAGEMENT DATE:25TH AUGUST,2015 ____________ TIME:2.00P.M-4.00P.M INSTRUCTION TO CANDIDATES Answer question and any other two QUESTION ONE a) You are to enter the following transactions, completing the double entry in the books for the month of May 2002. 2002 May 1 Started business with ksh.2,00,000 in the bank. “ 2 Purchased goods kshs.17500 on credit from M Rooks. “ 3 Bought furniture and fittings kshs.15000 paying by cheque. “ 5 Sold goods for cash ksh.27500. “ 6 Bought goods on credit kshs.114 from P Scot. “ 10 Paid rent by cash kshs.1500. “ 12 Bought stationery kshs.2700, paying in cash. “ 18 Goods returned to M Rooks kshs.2300. “ 21 Let off part of the premises receiving rent by cheque kshs.500. “ 23 Sold goods on credit to U Foot for kshs.7700. “ 24 Bought a motor van paying by cheque kshs.3000. “ 30 Paid the month’s wages by cash kshs.11700. “ 31 The proprietor took cash for himself kshs.4400. b) The following details for the year ended 31 March 2003 are available. Draw up the trading account of R Sings for that year. Stocks: 1 April 2002 16,523 Returns inwards 1,372 Returns outwards 2,896 Purchases 53,397 Carriage inwards 1,122 Sales 94,600 Stocks: 31 March 2003 14323 Question 2. From the following trial balance of P Boones draw up a trading and profit and loss account for the year ended 30 September 2002, and a Statement of Financial Position as at that date. Question 3 A three-column cashbook is to be written up from the following details, balanced off, and the relevant discount accounts in the general ledger shown. Mar 1 Balances brought forward: Cash kshs.230; Bank kshs.4,756. “ 2 The following paid their accounts by cheque, in each case deducting 5 percent discounts: R Burton kshs.140; E Taylor ksh.220; R Harris kshs.800. “ 4 Paid rent by cheque kshs.120. “ 6 J Cotton lent us kshs.1,000 paying by cheque. “ 8 We paid the following accounts by cheque in each case deducting a 2 ½ per cent cash discount: N Black kshs.360; P Towers ksh.480; C Rowse kshs300. “ 10 Paid motor expenses in cash kshs.44. “ 12 H Hankins pays his account of kshs.77, by cheque kshs.74, deducting ksh.3 cash discount. “ 15 Paid wages in cash ksh.160. “ 18 The following paid their accounts by cheque, in each case deducting 5 per cent cash discount: C Winston kshs260; R Wilson & Son kshs340; H Winter kshs460. “ 21 Cash withdrawn from the bank kshs350 for business use. “ 24 Cash Drawings kshs120. “ 25 Paid T Briers his account of kshs140, by cash kshs133, having deducted kshs7 cash discount. “ 29 Bought fixtures paying by cheque kshs650. “ 31 Received commission by cheque kshs88. Question four a) Briefly describe four accounting principles (8marks) b) State the four common types of journals (2marks) c) Explain the term bank reconciliation and state the reasons for its preparations (5marks) Question Five a) The balance in cashbook of Mr. Chuma as at 31/12/03 was sh. 30,000. On the same date the balance as per the bank statement was sh. 50,000 (credit) On examining the bank statement and the cash book the following differences were observed i) Cheque totaling sh. 8,000 had been paid into the bank on 31/12/03 but were not credited by the bank until 1/1/04. ii) Bank charges amounted to sh. 600 iii) A standing order to KPLC of sh. 800 had been paid by the bank but not entered in the cash book iv) Interest income amounting to sh. 13,000 collected by the bank did not appear in the cash book v) Amount paid to supplies but not presented for payment to the bank amounted to sh. 16,400 Required i. Adjusted cash book balance (5 marks) ii. Bank reconciliation statement (10marks) b) Discuss the importance of preparing a bank reconciliation statement (5 marks)  

ECO 1105: Economic Statistics I Page 1 MAASAI MARA UNIVERSITY REGULAR UNIVERSITY EXAMINATIONS 2018/2019 ACADEMIC YEAR FIRST YEAR FIRST SEMESTER SCHOOL OF BUSINESS AND ECONOMICS BACHELOR OF SCIENCE (ECONOMICS) BACHELOR OF SCIENCE (FINANCIAL ECONOMICS) BACHELOR OF SCIENCE (ECONOMICS AND STATISTICS) COURSE CODE: ECO 1105 COURSE TITLE: ECONOMIC STATISTICS I DATE: 5TH DECEMBER 2018 TIME: 11.00 -1.00PM INSTRUCTIONS TO CANDIDATES Answer Question ONE and any other THREE questions This paper consists of 3 printed pages. Please turn over. ECO 1105: Economic Statistics I Page 2 1. QUESTION ONE (25 MARKS) a) Explain the meaning of each of the following; i) Statistics (2 marks) ii) Kurtosis (2 marks) iii) Box and Whisker plot (2marks) b) Differentiate between each of the following as applied to statistics: i. Population and sample (2 marks) ii. Parameter and statistic (2 marks) iii. Descriptive statistics and inferential statistics (2 marks) c) Given the data below 28 35 61 29 48 57 67 69 55 71 48 49 47 42 37 51 72 63 33 62 71 32 35 43 37 66 51 54 56 31 37 76 42 38 59 58 44 39 57 46 38 44 45 45 38 44 47 47 48 22 i) Develop a frequency distribution table of six classes (2 marks) ii) Construct an ogive (2 marks) d) Give three main reasons why the use of sample is more widely applied than that of population in the study of statistics (3 marks) e) Give the four levels of measurement as applied to statistics (2marks) f) Differentiate between the Chebyshevs rule and the Emperical rule as applied to the understanding of The Standard deviation (4 marks) QUESTION TWO (15 MARKS) a) Give three main properties of the arithmetic mean (3 marks) a) A sample of 50 antique dealers in Narok town revealed the following sales figures during the year 2017 Required: Determine : i) The mean sales (3 marks) ECO 1105: Economic Statistics I Page 3 ii) The median sales (3 marks) iii) The modal sales amount (3 marks) b) A hospital in Narok employees a total of 200 nurses. Of these, 25 are nurse’s aides, 75 are practical nurses and 100 are registered nurses. Nurse’s aides receive Ksh. 80 per hour, practical nurses receive Ksh. 100 per hour and registered nurses receive Ksh.140 per hour. Determine the weighted mean hourly wage (3 marks) QUESTION THREE (15 MARKS) a) Clearly explain three main approaches of data collection (6 marks) b) Explain each of the following sampling techniques i) Simple random (3 marks) ii) Stratified (3 marks) iii) Systematic (3 marks) QUESTION FOUR (15 MARKS) a. Below is sample data from a company’s figures for a given operations x 41 13 20 13 26 13 45 82 67 37 38 62 36 35 56 35 54 34 34 34 31 41 27 47 50 47 47 51 53 41 You are required to determine i) The inter quartile range (5 marks) ii) The 67th percentile (2 marks) iii) The 6thdecile (2 marks) b) Given the data below; Required: Determine the i) the variance (3 marks) ii) the standard deviation (1 marks) iii) the coefficient of variation (2 marks) ECO 1105: Economic Statistics I Page 4 QUESTION FIVE (15 MARKS) Below are the prices and quantities of five products during the years 2015 and 2016 Required: a) Use the data above to develop unweighted aggregate price index for 2016 using 2015 as the base year. (3 marks) b) Using 2015 as the base year, compute price index number for 2016 using each of the following methods:- i. Lespeyres (3 marks) ii. Paasche (3 marks) iii. Fisher’s Ideal (3 marks) c)Differentiate between Chain Based and Fixed Base index (3 marks)

MAASAI MARA UNIVERSITY REGULAR UNIVERSITY EXAMINATIONS 2018/2019 ACADEMIC YEAR FOURTH YEAR FIRST SEMESTER SCHOOL OF BUSINESS AND ECONOMICS BACHELOR OF SCIENCE IN ECONOMICS AND STATISTICS COURSE CODE: ECS 4103 COURSE TITLE: APPLIED STATISTICS DATE: 10TH DECEMBER 2018 TIME: 0830 – 1030 HOURS INSTRUCTIONS TO CANDIDATES Answer Question ONE and any other THREE questions This paper consists of TWO printed pages. Please turn over. ECS 4103 – Applied Statistics Question One (a) Explain the significance of statistics in production (6marks) (b) Consider the data below which shows the quantity of sugar in millions of tones (Y) per year and the value of out of dollars per ton, (X) i. Using this data estimate the regression equation of Y on X (7marks) ii. Test the hypothesis that the regression coefficient is significant at 5% level (7marks) iii. What percentage of the variation in Y is explained by variation in X (5marks) Question Two From the sample below: a) Calculate the variance of the estimates (8marks) b) Test the significance of b1 and b2 at 5% level of significance. (7marks) Question Three (a) Given a sample with a mean µ = 100 and variance δ = 81, and a random sample of n = 25 is obtained. What is the probability that the sample mean lies between 98 and 101? (5marks) (b) Given a population with a mean of 400 and a variance of 16. If a sample of 35 is obtained, ECS 4103 – Applied Statistics i. What is the probability that sample mean will be more than 412. (5marks) ii. What is the probability that sample mean will be less than or equal to 389 (5marks) Question Four The table below gives real per capita income in thousands of dollars Y with the percentage of labour force in agriculture X1 and average years of schooling of the population over 25 years of age X2 for 10 developed countries in 2018. n 1 2 3 4 5 6 7 8 9 10 Y 6 8 8 7 7 12 9 8 9 10 X1 9 10 8 7 10 4 5 5 6 8 X2 8 13 11 10 12 16 10 10 12 14 a) Find the partial correlation coefficient between Y and X1 (7marks) b) Find the partial correlation coefficient between Y and X2 (7marks) c) Which of the two exogenous variables contribute more to the explanatory power of the model? (1mark) Question Five (a) A researcher wishes to estimate the mean weekly wage of the several thousands of workers employed in a firm within plus or minus Sh 20 and with a 99% degree of confidence. From past experience, the researcher knows that the weekly wages of these workers are normally distributed with a standard deviation of Sh 40. What is the minimum sample size required. (5marks) (b) Given the following Income 138 152 104 112 114 154 116 110 134 106 114 128 Expenditure 18 24 12 20 18 20 14 16 24 12 22 16 Calculate the income elasticity of expenditure (10marks)

6.1 Definition of aggregate supply (AS) The aggregate supply curve describes; for each given price level, the quantity of output firms are willing to supply. in the shot run the AS curve is horizontal (the Keynesian aggregate supply curve); in the run the AS is vertical (the classical supply curve). 6.2 The Classical Supply Curve The classical supply curve is vertical indicating that the same amount of goods will be supplied whatever the price level. It is based on the assumption that the labour market is in equilibrium with full employment of the labour force. We call the level of output corresponding to full employment of the labour force potential GDP,Y*. It grows over time as the economy accumulates resources and as technology improves, so the position of the classical aggregate supply curve moves to the right over time 6.3 The Keynesian Aggregate Supply Curve It is horizontal; indicating that firm‘s will supply whatever amount of goods is demanded at the existing price level. The idea underlying the Keynesian aggregate supply curve is that because there is unemployment firm‘s can obtain as much labour as they want at the current wage. Their average costs of production therefore are assumed not to change as their output level changes. They are accordingly willing to supply as much as is demanded at the existing price level. This is an existence situation in which all prices are fixed. Our task now is to refine this understanding of short – run aggregate supply. Unfortunately, one fact makes this task more difficult; economists disagree about how best to explain aggregate supply. As a result this section begins by presenting the four prominent models of the short-run aggregate supply curve. Although these models differ in some significant details, they are also related in an important way: they share a common theme about what makes the short-run and long-un aggregate supply curve differ and a common conclusion that the short-run aggregate supply curve is upward sloping. 6.4 Models of Aggregate Supply in the Short Run In all the models, some market imperfection cause the output of the economy to deviate from the classical benchmark. As a result, the short-run aggregate supply curve is upward sloping, rather than vertical, and shifts in the aggregate demand curve cause the level of output to deviate temporarily from the natural rate. These temporary deviations represent the booms and busts of the business cycle. Although each of the four models tasks us down a different theoretical route, each route ends up in the same place. That final destination is a short -run aggregate supply curve equation of the form. Y =Y* +a(P-Pe ) , a>0 Where Y is out put, Y* is the natural rate of output, P is the price level and Pe is the expected price level. This equation states that output deviates from its natural rate when the price level deviates from the expected price level. The parameter K indicates how much of output responds to unexpected changes in the price level. 1/ a id the slope of the aggregate supply curve. The aggregate supply curve shows the relationship between the price level output. While the long run aggregate supply curve is vertical, the short run aggregate supply curve is upward sloping. There are four major models that explain why the short-term aggregate supply curve slopes upward. The first is the sticky-wage model. The second is the worker misperception model. The third is the imperfect – information model. The fourth is the sticky-price model. The following headings explain each of these models in depth. As we move on to explore each of these four models, keep in mind that an upward sloping short run aggregate supply curve means that as the price level rises, output increases. This is the point of each of the following models. 6.5 Sticky -Wage Model The sticky-wage model of the upward sloping run aggregate supply curve is based on the labour market. In many industries, short run wages are set by contracts. that is, workers are paid based on relatively permanent pay schedules that are decided upon by management or unions or both. When the economy changes, the wage the workers receive cannot adjust immediately. Given tat wages are sticky; the chain of events leading from an increase in the price level to an increase in output is fairly straightforward. The price level rises, the normal wage remains fixed because this is solely based on the dollar amount of the wage. The real wage, on the other hand, falls because this is based on the purchasing power of the wage. A higher price level means that a given wage is able to purchase fewer goods and services. When the real wage that firms pay employees falls, labour becomes cheaper. however, since the amount of output produced for each unit of labour is still the same, firms choose to hire more workers and increase revenues and profits. When firms choose to hire labour, output increases. Thus, when the price level rises, output increases because of sticky wages. Let‘s summarize the chain of events that leads from an increase in the price level to an increase in output in the sticky-wage model. When the price level rises, real wages fall. When real wages fall, labour becomes cheaper. When labour becomes cheaper, firms hire more labour. When firms hire more labour, output increases. 6.6 Worker Misperception Model The worker – misperception model of the upward sloping short-run aggregate supply curve is again based on the labour market. This time, unlike in the sticky -wage model, wages are free to move as the economy changes. The amount of work that an employee is willing to supply is based on the expected real wage. That is, workers know how many dollars they are being paid, the nominal wage, but workers can only guess at how much goods and services they can purchase with this wage, the real wage. In general, the higher the real wage the more work the

*** FRAUD ALERT *** Threats and Demands from Callers or E-mailers Impersonating Treasury Officials The U.S. Department of the Treasury, Office of Inspector General (TOIG) issues this fraud alert to warn citizens of a recent and widespread scam. Criminals have been contacting U.S. citizens by electronic mail and by telephone and falsely claiming to be Treasury officials. The criminals then inform the victims of a “tax deficiency” or other made-up offense, and threaten imminent arrest, foreclosure, deportation, or other dire consequence unless the victims make immediate payment using pre-paid debit cards. The electronic mail version of the scam is often accompanied by colorful and elaborate but fraudulent “official government documents,” including a copy of the sender’s “credential” or other identification. The documents are all fake but some are good enough to pass a cursory review. The telephone version of the scam usually involves a male caller whose first language is not English, as evidenced by a heavy accent and trouble with changing tenses in conversation. The caller usually has an unprofessional manner, and many victims have reported that their callers started the conversation by being insulting or abusive, or became so shortly after the conversation began. In addition to the victims’ telephone numbers or electronic mail addresses, the criminals often have pieces of the victims’ other identifying information, such as name or address, which they use to make their attempts appear more authentic. What To Do: Because these criminals are also involved with identity theft, the TOIG recommends that, if you are contacted by one of them, you delete the electronic mail message or hang-up as soon as you recognize that it is a scam attempt. Do not attempt to elicit information that can be used against him; do not “play along” just for fun; do not attempt to get the caller to admit that he is a fraud; and do not threaten to report the caller to the authorities. Terminate contact immediately. Particularly with respect to telephone calls, it is important to be aware of the danger of giving away personal information without meaning to. Just by answering the telephone, you have already given the criminal confirmation of your telephone number, your general location (given away by the area code on your telephone number), your sex, your approximate age, and the fact that you are at home during the day/evening. Some of these criminals have a great deal of experience and are adept at a number of forms of “social engineering” that allow them to obtain information that their victims don’t know is useful to identity thieves. How to Report: It is not necessary to report a fraud attempt of this sort to the TOIG, which investigates these matters broadly, as part of a task force with other law-enforcement agencies. The TOIG does not investigate or respond to individual reports of, or requests regarding, this kind of consumer fraud. Anyone who receives a fraudulent electronic mail contact of this sort should consider filing a complaint with the Internet Crime Control Center (ICCC), at www.ic3.gov. The ICCC is a joint partnership between the Federal Bureau of Investigation and the National White Collar Crime Center. Fraudulent communications purportedly from Internal Revenue Service officials should be reported to the Treasury Inspector General for Tax Administration (TIGTA) at: http://www.treasury.gov/tigta/contact_report_scam.shtml   If the contacts persist, contact your internet or telephone service provider to have the sender blocked. If you have already provided personal or banking information to one of these criminals, then you should contact your banking institution(s) and/or credit card issuer(s) for assistance in protecting yourself against identity theft. If you have already provided money to one of these criminals, then you should report the crime to your local police force.     Other Resources: The Federal Trade Commission has set-up a national resource website that provides detailed information to help citizens deter, detect, and defend against identity theft, as well as learn what actions to take if a citizen’s identity is stolen: http://www.ftc.gov/bcp/edu/microsites/idtheft/. The Financial Fraud Enforcement Task Force offers additional information regarding protecting oneself against various frauds: http://www.stopfraud.gov  

  MAASAI MARA UNIVERSITY REGULAR UNIVERSITY EXAMINATIONS 2013/2014 ACADEMIC YEAR THIRD YEAR FIRST SEMESTER SCHOOL OF BUSINESS AND ECONOMICS BACHELOR OF BUSINESS MANAGEMENT COURSE CODE: BBM 303 COURSE TITLE: TAXATION I DATE:16TH APRIL 2014 TIME: 9.00AM – 12.00PM INSTRUCTIONS TO CANDIDATES Question ONE is compulsory Answer any other THREE questions This paper consists of 4 printed pages. Please turn over. QUESTION ONE. China building and construction co. ltd. provided the following details with respect to its fixed assets for the year of income 2013: 1. Written down values, 1st January 2013 ;- Industrial building Class I Class II Class III Class IV 1,400,000/- 460,000/- 610,000/- 800,000/- 6,200,000/- 2. The industrial building had been constructed sometimes back at a cost of 1,600,000/-. Fixed machines were 2,000,000/-. Due to an oversight no investment deduction was claimed. 3. During the year the following assets were purchased: i. Patents 200,000/- ii. Computers 390,000/- iii. Stamping machine 800,000/- iv. Land 530,000/- 4. A car for use by the directors was involved in an accident and written off. No recoveries were made. 5. In December all computers were sold as one lot for 1,220,000/-. 6. Assume 60% as the rate of investment deductions. Required:- a) Investment deduction allowance. (8mks) b) Industrial building deductions. (4mks) c) Wear and tear deductions. (10mks) d) Summary of events. (3mks) QUESTION TWO. a) Raising of revenue is not the only purpose for which taxes are levied. In that note explain five other purposes of taxes. (5mks) b) Using appropriate examples were necessary, describe tax shifting, tax burden and tax incidence. (10mks) QUESTION THREE. a) Name and discuss five benefits of a value added tax (VAT) in the context of the principles of good tax system. (10mks) b) The following purchases and sales were made by kenol ltd. (VAT No. AX45C) during the first two weeks of June 2000. Prices shown are inclusive of VAT at the standard rate of 18%. Purchases; Sales; -June 1st- 100 units at 1,400/- each. 10 units at 1,800/- each -June 2nd – Nil 20 units at 1,800/- each -June 5th – Nil 50 units at 1,800/- each -June 7th – 75 units at 1,600/- each. Nil -June 10th – Nil 20 units at 1,800/- each -June 12th- Nil 50 units at 2,000/- each There were no opening stocks at the beginning of the month. The physical inventory confirmed that there were 25 units in stock as at 13th June 2000. Required:- Prepare VAT account for Kenol ltd. (5mks) QUESTION FOUR. a) Write short notes on the following: i. Regressive tax (2mks) ii. Indirect tax (2mks) iii. Digressive tax (2mks) iv. Proportional tax (2mks) b) Name seven important principles of an optimal tax system (7mks) QUESTION FIVE. Mr. Kimani a farmer erected a farmhouse in January 2002 for 360,000/- and incurred other expenditures as follows: – -January 2003 Cattle dip—————————90,000/- -June // Labour quarters——————120,000/- -September // Irrigation system—————–150,000/- -October // milling machinery—————–99,000/- He sold the farm on 1st of January 2004 to Mr. Ben another farmer and sale agreement gave the following particulars: – -Farmhouse—————————–540,000/- -Cattle dip——————————–80,000/- -Labour quarters———————–180,000/- -Irrigation systems———————120,000/- -Milking machinery———————75,000/- Required; – Show capital deduction due to Mr. Kimani and Mr. Ben for the year 2002, 2003 and 2004. (15mks) QUESTION SIX. Mr. Mwangi is finalizing his tax affairs for the year of income 2008. He had the following income transactions for the year:- I. He paid sh.52, 000 Value Added Tax on all his purchases for the year. II. He was an employee of sonny sugar co. ltd. and was paid an annual salary of sh. 600,000 (P.A.Y.E.) deducted was sh. 147,500). III. Pension contributions to registered schemes were sh. 100,000 by his employer and sh. 50,000 from his pay. IV. A dividend received was sh. 40,000 gross. (Withholding tax was deducted as appropriate). V. Gross interest received was sh. 18,000 of which sh. 10,000 were from post office savings bank. Mr. Mwangi’s expenses for the year were as follows:- I. Personal accident insurance premium of sh. 9,000 paid to American Life Insurance Company. II. Mortgage interest of sh. 62,000 on his house where they stay with his wife and children. The mortgage is from savings and loan Kenya ltd. The following information is available for tax application:- Graduated rates; Rates; Upto 121,968 10% 121,969 – 236,880 15% 236,881 – 351,792 20% 351,793 – 466,704 25% 466,705 and above 30% Required: b) What is a registered pension scheme? What are its implications? (5mks) c) Compute the income chargeable to tax of Mr. Mwangi for the year end 2008. (5mks) d) Calculate the tax payable (repayable) by him for 2008. (5mks)      

5.1 Mundell- Fleming Model This is an open – economy version of the IS- Lm model. Both the Mundell- Fleming Model And IS-LM model assume that the price level is fixed and then show what cause short – run fluctuation in aggregate income. The key difference is that the IS- LM model assumes a closed economy, whereas the Mundell- Fleming model assumes an open economy. The Key Assumptions of the model The model assumes that the economy being studied is a small open economy with perfect capital mobility. That is, the economy can borrow or lend as much as it wants in the world financial market and, as a result, the economy‗s interest rate is determined by the world interest rate. Mathematically we can write this assumption as r= r* The world interest rate is assumed to be exogenously fixed because the economy is sufficiently small relative to the world economy that it can borrow or led as much as it wants in world financial markets without affecting the world interest rate. Perfect capital mobility implies that if some events were to occur that would normally raise the interest rate such as a decline in domestic saving in a small open economy , the domestic interest rate might rise by a little bit for a short time, but as soon as it did , foreigners would see the higher interest rate and start lending to this country by instance buying the country‘s bonds. The capital inflow would drive the interest rate back toward r*. Similarly if there were any event that were to start driving the domestic interest rate downwards, capital would flow out of the country to earn a higher abroad , and capital outflow, would drive the domestic interest rate back toward , the r= r* equation represents the assumption that the international flow of capital is sufficiently rapid as to keep the domestic interest rate equal to the world interest rate. The model also assumes that price levels at home and abroad are fixed , this means that the real exchange rate appreciate , foreign goods become cheaper compared to domestic goods and this cause export to fall and import to rise. 5.2 The Goods Market and the IS Curve The Mundell- Fleming model is describes the market for goods and services much as the IS- LM model does, but it adds a new term for net export. In particular, the goods market is represented with the following equation. Y= C(Y-T) +Ir* + G+NX (e) This equation states that aggregate income is the sum of consumption C, investment I, government purchase G, and net export NX. Consumption depends positively on disposable income-T. Investment depends negatively on the interest rate, which equals world interest rate r*. Net exports depend negatively on the nominal exchange rate e. As before, we define the exchange rate the amount of foreign currency per unit of domestic currency. For example, e might be Kshs 75 per dollar. From the diagram below, the IS curve slopes downward higher interest rate reduce net export which in turn reduce the aggregate income. Using the diagram below a change in the exchange rate from e1 to e2 lowers net from NX (e) to NX (e2). In panel b the reduction falls from Y2 to Y2. The IS curve summarizes this relationship between the exchange rate and the level of income Y in panels c. The figure above shows the standard way of representing the LM curve, together with a horizontal line representing the world interest rate r* . The intersection of the two curves determines the level of income regardless of the exchange rate. Therefore the LM curve is vertical. A small Economy Short Run Equilibrium According to the model – fleming model, a small open with perfect capital mobility can be described by two equation: Y= C(Y-I) +I(r*) + -G-NX(e)………………………………………….IS MP=L(r*,Y)…………………………………………………………………..LM The first equation describe the goods market ,and the second equation describe the money market . The exogenous valuable are fiscal policy G and T , monetary policies M, the price level P and the world interest rate r* . The endogenous variable are income Y and the exchange rate. These two relationship are illustrated together in the figure below. The intersection of the IS curve and the LM curve shows the exchange rate and the level of income at which both the goods market and the money market are in equilibrium. 5.4 Effects of Fiscal Policies in A Small and Open Economy Before analyzing the impacts of policies in an open economy, it is important to specify the interaction monetary system in which the country has chosen to operate. There are three systems that a country operates: Floating exchange rates Fixed exchange rate Flexible exchange rates The most common is the floating exchange rate, where the exchange rate is allowed to fluctuate freely in response to changing economic conditions. Effects of fiscal policy on the Floating Exchange Rates. Consider an increase as in government purchase or a tax cut. An expansionary fiscal policy increased planned expenditure, & shift the IS curve to the right. As a result, the exchange rate appreciates, while the level of income remains the same. This yields very difference results from those of closed economy. As soon as the interest rate to increase above world interest rate, capital flows in from abroad. This capital inflow increase the demand for domestic currency in the market for foreign currency exchange and , thus bids up the value of the domestic currency . The appreciation of the exchange rate makes domestic goods expensive relative to foreign goods, and this reduces net export. The fall in net export offsets the effects of the expansionary fiscal policy on income. The reasons why the fall in net export is so great to render fiscal policy completely powerless to influence income has to do with the money market . At the world interest rate, there is only one level of income that can satisfy the level

MAASAI MARA UNIVERSITY REGULAR UNIVERSITY EXAMINATIONS 2013/2014 ACADEMIC YEAR THIRD YEAR FIRST SEMESTER SCHOOL OF BUSINESS AND ECONOMICS BACHELOR OF HUMAN RESOURCE MANAGEMENT   COURSE CODE: BHR 205 COURSE TITLE: TAXATION DATE:14TH APRIL 2014 TIME: 9.00AM – 12.00PM INSTRUCTIONS TO CANDIDATES Question ONE is compulsory Answer any other THREE questions This paper consists of 5 printed pages. Please turn over QUESTION ONE. Mr. Matura, a farmer constructed a farmhouse in January 1998 for sh. 6,000,000 and incurred the following additional expenditure: – -2nd January 1998 Cattle dip—————————-1,000,000 -30th June 1998 Irrigation system——————-1,500,000 -30th September 1998 Labour quarters———————2,400,000 -30th October 1998 Milking machinery—————–1,120,000 Matura sold the farm on 2nd January 1999 to his brother Mr. Peter who is also a farmer and sale agreement contained the following particulars: – -Farmhouse——————————6,700,000 -Cattle dip——————————–1,200,000 -Labour quarters————————-2,800,000 -Irrigation systems———————-1,200,000 -Milking machinery———————980,000 Required; – Show capital deduction due to Mr. Matura and Mr. Peter for the year 1999, 2000 and 2001. (25mks) QUESTION TWO. Mr. Kimani, an employee of Kenya breweries co. was provided with the following income in the year 2010; -Salary 60,000£ p.a. -Provided with the house by the company at 15,000/- per month. -He contributed 3% of the basic pay towards the house rent. -He was provided with a car of 2500cc. -Water 800£ –Electricity 1,200£ -Phone 710£ Required; Compute Mr. Kimani’s taxable income. (15mks) QUESTION THREE. Public revenue is the amount received by the government from different sources. Required; Name and explain these main sources of government revenue. (15mks) QUESTION FOUR. Government is expected to carry out some activities as part of its services to the public. These activities are generally of universal application, but where applicable, a Kenyan example is given to drive the point home. Required; In this note discuss any five of these activities (15mks) QUESTION FIVE. Given below were the purchases and sales made by Tough Limited during the month of December 2000. Prices were inclusive of VAT at the standard rate of 18%. December 2000; 1st – Purchased 400 units at sh. 5,600 per unit 1st – Sold 40 units at sh. 7,200 per unit 5th – Sold 80 units at sh. 7,200 per unit 10th- Sold 200 units at sh. 7,200 per unit 20th- Purchased 300 units at sh. 6,400 per unit 25th- Sold 80 units at sh. 7,200 per unit 30th- Sold 200 unit at sh. 8,000 per unit There were no inventory at the beginning of the month but 100 units were in stock at the end of the month. Required:- a) Prepare VAT account for the month of December 2000 (12mks) b) On what dates is VAT due payable on instalment? (3mks) QUESTION SIX. a) Using descriptive examples explain any five incomes exempted from tax (10mks) b) Outline five common causes of tax evasion (5mks)