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CREDIT GOVERNANCE AND COMPLIANCE APRIL 2022 PAST PAPER

TUESDAY: 5 April 2022. Afternoon paper.              Time Allowed: 3 hours.

Answer ALL questions. Marks allocated to each question are shown at the end of the question.

QUESTION ONE

1. Discuss seven objectives of Kenya Bankers Association (KBA) in reinforcing a reputable and professional banking sector. (7 marks)

2. Outline five functions of Bank’s Assets and Liabilities Committee (ALCO). (5 marks)

3. State eight functions performed by Financial Institutions Regulatory Agencies. (8 marks)

(Total: 20 marks)

QUESTION TWO

1. Propose four economic advantages of Islamic finance. (8 marks)

2. In relation to consumer protection Act and Regulations:

Describe six unfair practices that the Act considers as “false, misleading or deceptive representations”. (6 marks)

3. In respect of Non-Performing Assets (NPA), analyse four guidelines for treatment of a collateral. (6 marks)

(Total: 20 marks)

QUESTION THREE

1. Discuss four asset provisioning requirements that a Savings and Credit Cooperative (SACCO) is required to conform to. (8 marks)

2. Chief Risk and Policy Specialist at Diana Credit Analytics (PLC) was the Chief Guest of the 15th Credit Analysts Annual Conference. In her paper titled “Developments in Credit Underwriting and Bank Credit policy”, she was quoted saying “Credit policies may be the most important tool for the Board of Directors and Bank Management to define an institution’s underwriting standards and credit risk appetite. However, many credit policies at community banks have been in place for a long time, with only small or ad hoc updates put in place as needed, thus the reason for increase in Non-Performing Assets”.

Required:
Analyse eight steps a Bank’s Risk and Policy Analyst should follow to conduct an adequate and effective credit policy and manual review. (6 marks)

3. With reference to the Central Bank Prudential guidelines, identify three instances that could justify a bank loan to be written off. (6 marks)

(Total: 20 marks)

QUESTION FOUR

1. With reference to Microfinance Act, highlight five kinds of information contained in periodic reports submitted to Central Bank. (5 marks)

2. The following information was extracted from the books of Lyaa Itune Ltd. a Microfinance Institution (MFI).

Required:

Calculate PAR 30. (3 marks)

Calculate PAR 60. (3 marks)

Calculate PAR 90. (3 marks)

3. Identify three techniques that financial institutions could use to promote sound corporate culture. (6 marks)

(Total: 20 marks)

QUESTION FIVE

1. Enumerate four Disclosure Requirements under Basel III for banks. (4 marks)

2. Explain the following areas of financial institutions regulatory matrix:

Prudential regulation. (2 marks)

Systemic regulation. (2 marks)

Consumer protection. (2 marks)

Competition. (2 marks)

3.The Chief Executive Officer shall ensure that the Board of Directors is frequently and adequately appraised of the operations of the Sacco Society through presentation of relevant Board papers. With reference to the above statement, highlight eight contents of such Board paper. (8 marks)

(Total: 20 marks)

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COLLECTIONS MANAGEMENT APRIL 2022 PAST PAPER

TUESDAY: 5 April 2022. Morning paper.              Time Allowed: 3 hours.

Answer ALL questions. Marks allocated to each question are shown at the end of the question. Do NOT write anything on this paper.

QUESTION ONE

  1. Outline five advantages of establishing an Internal Debt Collection Unit. (5 marks)
  2. Analyse four methods of improving debt collection negotiations. (8 marks)
  3. List three goals of a debt collection department. (3 marks)
  4.  Summarise four online debt collection techniques. (4 marks)

(Total: 20 marks)

QUESTION TWO

1. With reference to debt buying companies:

Explain a debt validation notice. (2 marks)

Summarise four contents of a debt validation notice. (4 marks)

2. Discuss four shortcomings of arbitration as an Alternative Dispute Resolutions (ADR) in debt collection. (8 marks)

3. Describe three factors influencing the choice of a debt collection method. (6 marks)

(Total: 20 marks)

QUESTION THREE

1. Outline five characteristics of accounts that should be handed over to a debt collection agency.  (5 marks)

2. The corona virus crisis has seen many credit collections teams dealing with escalating cases of Non Performing Assets (NPA), changing regulatory guidelines, high customer expectations and overstretched resources. With reference to the above statement, suggest four ways by which a credit manager could develop a proactive collection response plan to mitigate the effects of COVID-19 on accounts receivable. (8 marks)

3. Identify four types of credit reports used to improve the process of debt collection. (4 marks)

4. Assess three benefits of loan restructuring. (3 marks)

(Total: 20 marks)

QUESTION FOUR

1. With reference to skiptracing, explain the following terms:

Unintentional skip. (2 marks)

Novice deadbeats. (2 marks)

Hard-core skips. (2 marks)

2. Discuss five aspects of the code of conduct that a credit manager is expected to include in a debt collection manual. (10 marks)

3. Summarise four duties of remitting banks. (4 marks)

(Total: 20 marks)

QUESTION FIVE

1. Analyse the four successive steps in an exchange of documents in a documentary credit procedure. (8 marks)

2. Examine three elements of a negotiations checklist. (6 marks)

3. Describe six features of a customer contact center software. (6 marks)

(Total: 20 marks)

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CORPORATE CREDIT ANALYSIS APRIL 2022 PAST PAPER

MONDAY: 4 April 2022. Afternoon paper.                Time Allowed: 3 hours.

Answer ALL questions. Marks allocated to each question are shown at the end of the question. Do NOT write anything on this paper.

QUESTION ONE

1.  Explain the term “sovereign claim”. (2 marks)

Identify six reasons that would make a sovereign to borrow. (6 marks)

2.Summarise four duties of a loan committee. (6 marks)

3.Assess six roles of the financial strategy of a company. (6 marks)

(Total: 20 marks)

QUESTION TWO

1. Summarise for differences between “working capital loans” and “term loans”. (8 marks)

2. Evaluate four risks that a bondholder is exposed to. (8 marks)

3. Outline four features of a limited liability company. (4 marks)

(Total: 20 marks)

QUESTION THREE

1. Propose four characteristics of a positive lending relationship. (4 marks)

2. Identify eight events that constitute default on credit obligations. (8 marks)

3. Examine four reasons why it is necessary to undertake credit risk analysis. (8 marks)

(Total: 20 marks)

QUESTION FOUR

1. Analyse three principles of sound lending. (6 marks)

2. Discuss three categories of country risk. (6 marks)

3. Describe four drivers of corporate cash flow. (8 marks)

(Total: 20 marks)

QUESTION FIVE

1. Discuss credit analysis, citing four categories of prospective borrowers. (8 marks)

2. Analyse three sources of industry risk. (6 marks)

3. Describe three objectives of a loan agreement. (6 marks)

(Total: 20 marks)

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FINANCIAL STATEMENTS ANALYSIS FOR CREDIT MANAGERS APRIL 2022 PAST PAPER

MONDAY: 4 April 2022. Morning paper.                         Time Allowed: 3 hours.

Answer ALL questions. Marks allocated to each question are shown at the end of the question. Show ALL your
workings. Do NOT write anything on this paper.

QUESTION ONE
1. Outline four purposes of a statement of cash flow.  (4 marks)

2. Imarisha Ltd. is listed at the securities exchange. The following statement were extracted from the books of the company for the year ended 31 December 2021:

Additional Information:

1. During the year 2021, a dividend of Sh.130,000 was declared and paid by the management of Imarisha Ltd.

2. Some plant assets were purchased during the year 2021 and the payment was settled by issuing common  stock amounting to Sh.35,000.

Required:

Cash flow statement for the year ended 31 December 2021 in accordance with International Accounting Standard (IAS) 7 (Statement of Cash Flows). (16 marks)

(Total: 20 marks)

QUESTION TWO

1.  Mfalme Equipment Company estimates its carrying cost at 15% and its ordering cost at Sh.9 per order. The estimated annual requirement is 48,000 units at a price of Sh.4 per unit.
Assumption – 1 year = 360 days

Required:

Calculate the most economical number of units to order. (2 marks)

Explain how many orders should be placed in a year. (2 marks)

Determine how often an order should be placed. (2 marks)

2.  Outline two objectives of preparing financial statements. (2 marks)

3.  Explain the acronym “CAMELS” as a tool used by banks in the analysis of financial statements. (12 marks)

(Total: 20 marks)

QUESTION THREE
The following trial balance as at 31 March 2022 relates to Mawingu Ltd.:

Additional Information:
1. Inventory count was performed on 31 March 2022 which revealed valuation at a cost of Sh.9,300,000.

2. At 31 March 2022, outstanding electricity bills amounted to Sh.340,000 while prepaid rent was Sh.1,100,000.

3. Depreciation on property, plant and equipment is to be provided at the following rates and basis:
Assets Rate per annum Basis

Plant and equipment 12.5% Reducing balance

Motor vehicles 25% Straight line

Fixtures and fittings 10% Straight line

4. Allowance for doubtful debts is to be maintained at 5% of the accounts receivable.

5. The current tax for the year is estimated as a tax refund of Sh.95,000.

6. The 10% bank loan was obtained on 1 July 2021. Interest on the loan is payable half yearly on 31 December and 30 June each year.

Required:
Statement of profit or loss for the year ended 31 March 2022. (8 marks)

Statement of financial position as at 31 March 2022. (8 marks)

As a credit analyst comment on the liquidity position of Mawingu Ltd. by calculating:

Current ratio. (2 marks)

Quick ratio. (2 marks)

(Total: 20 marks)

QUESTION FOUR

1.  Explain the following terms as used in working capital management:

Cash and cash equivalents. (2 marks)

Accrued expenses. (2 marks)

Cash operating cycle. (2 marks)

2. The following information was extracted from the books of Amuzer Ltd.:


Required:
Compute the cash conversion cycle. (8 marks)

3. State what the following credit score means to a lender:

QUESTION FIVE

1.  Analyse four reasons for corporate failures. (4 marks)

2. Outline four contents of a credit analysis report. (4 marks)

3. Protractor Limited, a private limited entity is a manufacturer and a retailer of household products. The company’s summarised financial statements for the years ended 30 June 2021 and 30 June 2020 are set out below:

The directors concluded that the revenue for the year ended 30 June 2020 fell below budget and introduced measures during the year ended 30 June 2021 to improve the situation, which included:

  • Reducing the selling price.
  • Extending credit facilities.
  • Leasing additional machinery in order to increase production.

The directors are now reviewing the results for the year ended 30 June 2021.

Assume a 365-days financial year. Required:

Calculate the following financial ratios for Protractor Limited for the two years ended 30 June 2021 and 2020:

  1. Gross Profit margin. (2 marks)
  2. Operating profit margin. (2 marks)
  3. Return on Capital Employed (ROCE). (2 marks)
  4. Inventory holding period. (2 marks)
  5. Receivables collection period. (2 marks)
  6. Payables payment period. (2 marks)

(Total: 20 marks)

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BUSINESS ENVIRONMENT APRIL 2022 PAST PAPER

WEDNESDAY: 6 April 2022. Afternoon paper.                                                                      Time Allowed: 3 hours.

Answer any FIVE questions. ALL questions carry equal marks. Do NOT write anything on this paper.

QUESTION ONE

1.         List five benefits of customer segmentation.                                                                                                               (5 marks)

2.        Explain the meaning of the term “monetary policy’.                                                                                             (2 marks)

Describe three instruments of monetary policy used to control and regulate money supply by the Central

Bank of your country.                                                                                                                                          (6 marks)

3.         Enumerate three features of a business environment.                                                                                       (3 marks)

4.         Highlight four marketing philosophies that guide organisations in conducting their marketing activities.           (4 marks)

(Total: 20 marks)

 

QUESTION TWO

1.          Describe three characteristics of international trade.                                                                                             (6 marks)

2.          Explain the following types of budgets:

Deficit.                                                                                                                                                                  (2 marks)

Balanced.                                                                                                                                                              (2 marks)

Surplus.                                                                                                                                                                (2 marks)

3.          Identify four reasons why the high levels of public borrowing is an area of concern in any country.              (4 marks)

4.          Summarise four characteristics of a limited liability company.                                                                            (4 marks)

(Total: 20 marks)

 

QUESTION THREE

1.          Enumerate six factors a credit analyst could consider in analysing the political-legal environment of an exporter during credit assessment.                                                                                                                                                      (6 marks)

2.           In the context of international trade, explain the following terms:

Import trade.                                                                                                                                                         (2 marks)

Export trade.                                                                                                                                                         (2 marks)

Entrepot trade.                                                                                                                                                      (2 marks)

3.        In the context of business analysis:

Explain the meaning of the term “culture”.                                                                                                           (2 marks)

Analyse three cultural dimensions that directly affect business.                                                                           (6 marks)

(Total: 20 marks)

 

QUESTION FOUR

1.         Explain the term “optimum firm”.                                                                                                                        (2 marks)

Suggest four conditions necessary for a firm to operate at optimum level.                                                          (4 marks)

2.         Identify four Millennium Development Goals (MDGs).                                                                                                     (4 marks)

3.         Analyse three reasons why it is important for a company to undertake stakeholders’ analysis.                         (6 marks)

4.         List four factors affecting the price elasticity of demand.                                                                                         (4 marks)

(Total: 20 marks)

 

QUESTION FIVE

1.          Explain the term “circular flow of income”.                                                                                                         (2 marks)

Summarise six assumptions of circular flow of income model.                                                                           (6 marks)

2.         Identify six features of underdeveloped economies.                                                                                  (6 marks)

3.          Discuss three roles of marketing to a business.                                                                                        (6 marks)

(Total: 20 marks)

 

QUESTION SIX

1.          Describe the three stages of a product life cycle.                                                                                   (6 marks)

2.         Explain the meaning of the following terms:

Environmental scanning.                                                                                                                                      (2 marks)

Perfectly competitive market.                                                                                                                               (2 marks)

Opportunity cost.                                                                                                                                                 (2 marks)

3.        Identify four roles of government in an economy.                                                                             (4 marks)

4.        Describe four forms of foreign capital that your country could attract for development                  (4 marks)

(Total: 20 marks)

 

QUESTION SEVEN

1.          Differentiate between the following terms:

“Run-away inflation” and “hyper-away inflation”.                                                                                               (4 marks)

“Actual growth’ and “potential growth”.                                                                                                              (4 marks)

2.         Identify five reasons why the concept of price elasticity of demand is important in business decision making. (5 marks)

3.         Assess four types of demographic changes that could affect the economy.                                               (4 marks)

4.         List three trade restrictions commonly imposed by countries to protect their markets.                             (3 marks)

(Total: 20 marks)

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PRINCIPLES OF ACCOUNTING APRIL 2022 PAST PAPER

WEDNESDAY: 6 April 2022. Morning paper.                                                                                       Time Allowed: 3 hours.

Answer ALL questions. Marks allocated to each question are shown at the end of the question. Show ALL your workings. Do NOT write anything on this paper.

QUESTION ONE

Ezekiel Mbogi, a sole trader operates a retail business dealing in school outfits.

A trial balance as at 31 December 2021 extracted from the accounting records of his business was as shown below:

Additional information:

  1. Inventory as at 31 December 2021 was valued at Sh.11,400,000.
  2. On 1 January 2021, Ezekiel Mbogi paid shop rent for 15 months at a monthly rate of Sh.400,000.
  3. On 31 December 2021, outstanding electricity bills amounted to Sh.60,000.
  4. An allowance for doubtful debts is to be maintained at the rate of 5% of the trade receivables.
  5. Depreciation on property, plant and equipment is provided per annum as follows:
  • Building – 2% annually, straight-line basis.
  • Motor vehicles – Straight-line, assuming a useful economic life of five years with no residual value.
  • Fixtures and fittings – 12.5% annually on a reducing balance basis.

Required:

Statement of profit or loss for the year ended 31 December 2021.                                                                     (12 marks)

Statement of financial position as at 31 December 2021.                                                                                     (8 marks)

(Total: 20 marks)

 

QUESTION TWO

1.        Explain the following elements of financial statements:

Asset.                                                                                                                                                   (2 marks)

Liability.                                                                                                                                               (2 marks)

Income.                                                                                                                                                (2 marks)

Expense.                                                                                                                                              (2 marks)

2.        The trial balance of Tausi Limited extracted as at 31 October 2021 failed to balance and the accountant posted the discrepancy to the suspense account.

Upon investigations, the accountant discovered the following errors made in the preparation of the ledger accounts:

  1. Credit sales amounting to Sh.630,000 made during the year ended 31 October 2021 were altogether omitted from the books of accounts.
  2. Purchases returns of Sh.12,000 were recorded on the debit side of the sales returns ledger account. A cash payment of Sh.185,000 to a credit supplier had been correctly recorded in the cashbook, but no corresponding entry was made in the payables’ control account.
  3. Cash purchases of Sh.84,000 had been posted in the relevant ledger accounts as Sh.8,400.
  4. A credit balance of Sh.64,800 in the commission income account had erroneously been extracted on the list of balances as a debit balance.
  5. A debit balance of Sh.56,000 on the electricity expense account had been incorrectly extracted on the list of balances as Sh.65,000.
  6. The book keeper recorded the purchase of a motor vehicle at a cost of Sh.850,000 in the motor expenses account.
  7. A cheque of Sh.160,000 received from a credit customer had been entered correctly in the cash book, but posted to the wrong side of the receivable’s ledger control account.

Required:

Prepare the relevant journal entries to correct the above errors. (Narrations required).                                      (12 marks)

(Total: 20 marks)

 

QUESTION THREE

1.       Highlight four benefits of preparing a cash book.                                                                                                (4 marks)

2.       The cash book of Gotab Sanik Traders as at 31 March 2022 showed a debit balance of Sh.8,200.  The bank statement issued on the same day showed a credit balance of Sh.23,700. The bank statement and cash book are shown below:

Gotab Sanik Traders – Bank Statement for March 2022:

The cheque deposited on 30 March of Sh.2,000 (Cheque number 8102) was dishonoured by the bank.

Required:

Updated cash book for the month of March 2022.                                                                               (9 marks)

Bank reconciliation statement.                                                                                                              (7 marks)

(Total: 20 marks)

 

QUESTION FOUR

The following trial balance relates to Nyota Limited, a public limited entity as at 31 March 2022:

Additional information:

  1. As at 31 March 2022, inventory was valued at Sh.96,000,000.
  2. Accrued rent as at 31 March 2022 amounted to Sh.2,200,000.
  3. Depreciation on non-current assets is provided as follows:

Asset                                           Rate per annum               Basis

Building                                                   2%                        Straight-line

Plant and equipment                              15%                        Reducing balance

Motor vehicles                                      25%                        Straight-line

Fixtures and fittings                               10%                        Straight-line

  1. Current tax for the year to 31 March 2022 is estimated at Sh.5,000,000.
  2. The balance on the suspense account represents the proceeds from the issue of 500,000 ordinary shares at a price of Sh.16 per share.

Required:

Statement of profit or loss for the year ended 31 March 2022.                                                                          (10 marks)

Statement of financial position as at 31 March 2022.                                                                                         (10 marks)

(Total: 20 marks)

 

QUESTION FIVE

1.         Highlight six source documents maintained by entities for the measurement and recording of transactions. (6 marks)

2.         Describe three challenges of using computerised accounting systems.                                                                (6 marks)

3.         List four contents of a partnership agreement.                                                                                                     (4 marks)

4.         Explain the following terms as used in accounting:

Share capital.                                                                                                                                        (2 marks)

Forfeiture of shares.                                                                                                                             (2 marks)

(Total: 20 marks)

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CREDIT RISK MANAGEMENT APRIL 2022 PAST PAPER

TUESDAY: 5 April 2022. Afternoon paper.                                                                                   Time Allowed: 3 hours.

Answer any FIVE questions. ALL questions carry equal marks. Do NOT write anything on this paper.

QUESTION ONE

1.         In the context of credit management, explain the following types of risks:

Potential risks.                       (2 marks)

Economic risks.                       (2 marks)

Currency risks.                       (2 marks)

Enforcement risks.                       (2 marks)

2.         State four principles of an efficient credit governance system.   (4 marks)

3.          Analyse four areas that could be covered by a credit controller’s risk mitigation plan.       (8 marks)

(Total: 20 marks)

 

QUESTION TWO

1.        Outline six risk financing options.  (6 marks)

2.        Describe four assumptions that management might consider when carrying out strategic analysis of the organisation. (8 marks)

3.        Explain three functions of a risk management department in an organisation.                                                           (6 marks)

(Total: 20 marks)

 

QUESTION THREE

1.        Explain the meaning of the term “recovery rate” as used in the management of credit risks.       (2 marks)

Outline three elements that could influence the amount of recovery.                 (6 marks)

2.        Assess four advantages of informing customers of their credit limits.      (8 marks)

3.         Summarise four steps of cybersecurity risk analysis and prioritisation process.   (4 marks)

(Total: 20 marks)

 

QUESTION FOUR

1.          Analyse five parameters which a lender could use to judge the repayment capacity of a borrower. (5 marks)

2.         Describe five factors that could influence a firm’s profitability level.                 (10 marks)

3.        Outline five benefits of understanding the impact of migration risk by a lender.                 (5 marks)

(Total: 20 marks)

 

QUESTION FIVE

1.          Explain the term “risk register”.  (3 marks)

List three reasons of developing a risk register.                    (3 marks)

2.         Outline three objectives of a credit risk management process in a bank.       (6 marks)

3.         Describe four drivers of credit risk.         (8 marks)

(Total: 20 marks)

 

QUESTION SIX

1.         Explain the acronym PESTEL as used in risk classification.           (6 marks)

Outline four disadvantages of using PESTEL as a means of identifying risk.                         (4 marks)

2.        Summarise four steps used to calculate probability of default (PD).       (4 marks)

3.        Explain three classes of suppliers of credit in your country.   (6 marks)

(Total: 20 marks)

 

QUESTION SEVEN

1.          Explain three essential principles that govern setting of a customer’s credit limit.        (6 marks)

2.          Analyse three types of industry risk.         (6 marks)

3.          Describe four steps used to mitigate risk where a collateral is used as a security for a loan product in microfinance institutions (MFIs).                                                                                                                                                                              (8 marks)

(Total: 20 marks)

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INTRODUCTION TO LAW AND GOVERNANCE APRIL 2022 PAST PAPER

TUESDAY: 5 April 2022. Morning paper.                                                                                         Time Allowed: 3 hours.

Answer any FIVE questions. ALL questions carry equal marks. Do NOT write anything on this paper.

QUESTION ONE

1.          With specific reference to the sale of goods law;

Identify three reasons why it is important to determine when property in goods passes.                 (3 marks)

List five remedies available to a buyer in a sale of goods contract.                                                  (5 marks)

2.        Define the meaning of the term “tribunal”.                                                                                       (2 marks)

Describe five types of jurisdiction of Courts in your country.                                                       (10 marks)

(Total: 20 marks)

 

QUESTION TWO

1.         In relation to negotiable instruments, discuss five duties of a collecting bank.                                 (5 marks)

Highlight five circumstances under which a partnership might be dissolved by the Court.               (5 marks)

2.         Identify two types of defamation.                                                                                                    (2 marks)

Explain four ingredients to be proved in the defense of fair comment in an action for defamation. (4 marks)

Explain two defenses other than fair comment that are applicable in the tort of defamation.            (4 marks)

(Total: 20 marks)

 

QUESTION THREE

1.          Define a “code of ethics”.                                                                                                              (2 marks)

Discuss four ways through which a code of ethics can be enforced in a place work.                     (8 marks)

2.        Outline four ways in which a surety might be discharged from a contract of guarantee.                                  (4 marks)

3.          In relation to the law of property, explain the meaning of the following terms:

Fee simple.                                                                                                                                       (2 marks)

Fee tail.                                                                                                                                            (2 marks)

4.         Describe two ways in which absolute proprietorship is created.                                                                     (2 marks)

(Total: 20 marks)

 

QUESTIONS FOUR

1.         Discuss five potential disadvantages of litigation over alternative forms of dispute resolution.                    (10 marks)

2.         Describe five ways in which an offer might be terminated.                                                                           (10 marks)

(Total: 20 marks)

 

QUESTION FIVE

1.         Outline two types of on-site legal audit processes that might be used during data collection.(2 marks)

Highlight two disadvantages of a legal audit.                                                                                  (4 marks)

Outline four attributes required of a legal auditor.                                                                          (4 marks)

2.        Examine four salient features that define the Supremacy of the Constitution of a country.            (8 marks)

Highlight two ways in which a Kadhis Court might apply Islamic law.                                           (2 marks)

(Total: 20 marks)

 

QUESTION SIX

1.        Describe six rights of a principal whose agent makes a secret profit or takes a bribe from a third party with whom he contracts on behalf of the principal.                                                                                                           (6 marks)

2.        Distinguish between “statutory corporations” and “limited companies“.                                                         (6 marks)

3.         With reference to the Law of Insurance:

Outline six basic principles that must be met in insurance.                                                              (6 marks)

Identify two types of marine policies.                                                                                              (2 marks)

(Total: 20 marks)

 

QUESTION SEVEN

1.       With reference to negotiable instruments, explain four parties to a bill of exchange.                                       (8 marks)

2.        With reference to administrative law:

State six principles of natural justice.                                                                                               (6 marks)

Highlight three principles that will guide the Court in determining the presence of bias in the decision of an administrative body.                                                                                                               (6 marks)

(Total: 20 marks)

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COMMUNICATION AND CUSTOMER RELATIONS APRIL 2022 PAST PAPER

MONDAY: 4 April 2022. Afternoon paper.                                                                                     Time Allowed: 3 hours.

Answer any THREE questions in SECTION I and any TWO questions in SECTION II. ALL questions carry equal marks. Do NOT write anything on this paper.

SECTION I

QUESTION ONE

1.          In relation to meetings:

Identify four reasons why it is important to manage time.                                                                          (4 marks)

Highlight four ways in which the chairman could enhance time management.                                             (4 marks)

2.        Outline six advantages of effective internal communication in an organisation.                                                         (6 marks)

3.        List six uses of non-verbal signals in communication.                                                                                               (6 marks)

(Total: 20 marks)

 

QUESTION TWO

1.         Discuss five indicators of ineffective teams.                                                                                                            (10 marks)

2.        Summarise five objectives of using open-ended questions in an interview.                                                               (5 marks)

3.        Enumerate five tactics that a manager could use to improve their listening skills.                                                      (5 marks)

(Total: 20 marks)

 

QUESTION THREE

1.          Discuss four steps that a chairman of a committee could take to make a committee work effectively.                       (8 marks)

2.         Explain the term “advertisement“.                                                                                                              (2 marks)

Examine five elements of effective advertisement.                                                                                   (10 marks)

(Total: 20 marks)

 

QUESTION FOUR

1.         Enumerate five benefits of decision making.                                                                                                              (5 marks)

2.         Highlight five features of an agenda.                                                                                                                          (5 marks)

3.         Summarise five techniques that could be used to enhance group dynamics.                                                            (10 marks)

(Total: 20 marks)

 

SECTION II

QUESTION FIVE

1.         Suggest six situations that could trigger customers complaints.                                                                                  (6 marks)

2.        Distinguish between a “call center” and a “contact center”.                                                                         (4 marks)

Analyse five benefits of establishing a contact center in an organisation.                         (10 marks)

(Total: 20 marks)

 

QUESTION SIX

1.       Propose five customer relationship marketing practices that could enhance customer retention.               (5 marks)

2.       Explain five strategies that could be employed in overcoming ethical dilemmas in customer care.               (5 marks)

3.       Examine five techniques of dealing with opposing views during a negotiation process.              (10 marks)

(Total: 20 marks)

 

QUESTION SEVEN

1.          Highlight six etiquette guidelines for receiving telephone calls.                                                                                 (6 marks)

2.         In the context of customer relations, distinguish between “good service” and “excellent customer service”. (4 marks)

Evaluate five benefits of developing long-term relationships with the customers.          (10 marks)

(Total: 20 marks)

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CREDIT MANAGEMENT APRIL 2022 PAST PAPER

MONDAY: 4 April 2022. Morning paper.                                                                                                         Time Allowed: 3 hours.

Answer any FIVE questions. ALL questions carry equal marks. Do NOT write anything on this paper.

QUESTION ONE

1.          Explain the following terms as used in credit management:

Export credit.                                                                                                                                                 (2 marks)

Trade credit.                                                                                                                                                   (2 marks)

2.        Outline four reasons why the cash operating cycle varies from industry to industry.                                                 (4 marks)

3.         Summarise six features of hire purchase credit agreement.                                                                                            (6 marks)

4.        Discuss three characteristics of borrowers that might be considered when undertaking in credit risk assessment.

(6 marks)

(Total: 20 marks)

 

QUESTION TWO

1.          Explain five ways in which trade credit has contributed in the growth of small and medium sized enterprises (SMEs) in your

country.                                                                                                                                                                        (10 marks)

2.          Differentiate between “amortised loan” and “non-amortised loan”.                                                                            (4 marks)

3.          Assess three advantages of using indirect credit information when appraising a customer’s suitability for a loan product.

(6 marks)

(Total: 20 marks)

 

QUESTION THREE

1.          Identify five parties who are allowed to access customer information from a Credit Reference Bureau (CRB).    (5 marks)

2.         List five advantages of decentralised credit departments.                                                                                               (5 marks)

3.          Analyse five risks associated with lending to a sole proprietorship.                                                                             (10 marks)

(Total: 20 marks)

 

QUESTION FOUR

1.         Differentiate between the following payment methods as used in trade credit:

“Personal cheque” and “bankers cheque”.                                                                                                       (4 marks)

“Direct debit” and “standing order”.                                                                                                                (4 marks)

2.          Discuss four types of certificates as used in export trade.                                                                                              (8 marks)

3.         Outline four mistakes that could be made during debt collection.                                                                                 (4 marks)

(Total: 20 marks)

 

QUESTION FIVE

1.          Enumerate four types of disputes that are recorded in a query register in a credit department.                           (4 marks)

2.         Outline six reports that a good credit management integrated management system (IMS) should generate.      (6 marks)

3.         Discuss the model of credit risk assessment.                                                                                                               (10 marks)

(Total: 20 marks)

 

QUESTION SIX

1.          Explain the following terms as used in insurance:

Principle of indemnity.                                                                                                                                   (2 marks)

Trade credit insurance.                                                                                                                                   (2 marks)

2.        Analyse four advantages of the letters of credit to the buyer.                                                                                         (8 marks)

3.        Describe four functional units of a credit department.                                                                                                    (8 marks)

(Total: 20 marks)

 

QUESTION SEVEN

1.       List four factors that affect accounts receivable.                                                                                             (4 marks)

Explain three hidden costs in accounts receivables.                                                                                        (6 marks)

2.      Outline six ways Pareto’s 80/20 rule assists a credit department in collection.                                                              (6 marks)

3.      Summarise four types of expenses included in the credit department budget.                                                             (4 marks)

(Total: 20 marks)