December 21, 2022

TUESDAY: 6 December 2022. Morning Paper. Time Allowed: 2 hours. Answer ALL questions by indicating the letter (A, B, C or D) that represents the correct answer. This paper is made up of fifty (50) Multiple Choice Questions. Each question is allocated two (2) marks. 1. Which of the following statement defines e-business? A. The use of technology to work and empower business people B. The use of information technology to work and empower business processes C. The use of information technology to work and empower business processes, electronic commerce, and enterprise collaboration D. The use of technology to empower people 2. As a prospective manager, business professional, and knowledge worker, you will be challenged by many responsibilities generated by the use of information technology. Which of the following represents using business analytics, data mining, data visualization, and data tools to help organisations make better data-driven decisions? A. Collusion B. Incentives C. Business intelligence D. Human resource management 3. Which of the following would be considered as a combination of software and hardware resources? A. Microcomputer systems and midrange computer systems B. Keyboards and electronic mice C. Data media such as sheets of paper D. Firmware in a computing device 4. System software resources would include all of the following EXCEPT: A. Device drivers B. Operating system program C. Spreadsheets D. Utilities 5. Choose the choice with the FIVE basic resources of information systems? A. Hardware, software, networks, the internet, and knowledge bases B. Hardware, software, data, networks, and the internet C. Hardware, software, data, networks, and people D. Hardware, software, data, networks and security 6. The person who focuses on planning, policies, and procedures regarding the use of corporate data and information is known as: A. Chief Information Officer B. Systems analyst C. Database administrator D. System operator 7. Which of the following best describes internet of things (IoT)? A. Network of physical objects embedded with sensors B. Network of virtual objects C. Network of objects in the ring structure D. Network of sensors 8. Two or more participants may conspire to defraud another participant in a digital business transaction. This is known as________________________________. A. Technology diffusion B. Technology infusion C. Technology collusion D. Technology fusion 9. Which one of the following is NOT one of the FIVE basic competitive forces that shape the structure of competition in its industry? A. Bargaining power of customers B. Threat of new entrants C. Threat of substitutes D. Strategic dominance 10. Which of the following is one of the competitive strategies a company can use to counter competitive forces? A. Rivalry of competition B. Innovation C. Bargaining power of customers D. Bargaining power of suppliers 11. The value chain concept was developed by Michael Porter, where a firm is viewed as a series, or chain, or network of basic activities that add value to its products and services and thus add a margin of value to the firm. One of the primary activities in a firm’s “value chain” typically includes: A. Administrative services B. Technology development C. Human resource management D. Marketing and sales 12. One of the most important implementations of competitive strategies is business process reengineering (BPR). Which of the following statements BEST describes BPR: A. A customer’s perception of a customer-focused business that offers the best value B. A fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in cost, quality, speed, and service C. Organisational operations and development D. A customer’s perception that uses the Internet 13. When a company can make a profit in markets with broad production ranges and short model lifetimes and can produce orders individually in an arbitrary lot size, can be described as a(n): A. Virtual company B. Differentiated company C. Agile company D. Cost leader 14. When a company makes investments in IT to improve its operations or promote innovation, what can it erect so that it would discourage or delay competitors from entering a market. A. Switching costs B. Differentiation C. Barriers to entry D. Price control 15. In business ethics, the theory that states companies have ethical responsibilities to all members of society is known as: A. Social contract theory B. Stakeholder theory C. Shareholder theory D. No free lunch theory 16. The benefits and burdens of the technology should be distributed fairly. Which of the following term best describes this principles? A. Informed consent B. Justice C. Minimised risk D. Proportionality 17. According to the definition by the Association of Information Technology Professionals, computer crime includes the following EXCEPT: A. Unauthorised release of information B. Unauthorised copying of software C. Using or conspiring to use computer or network resources to illegally obtain information or tangible property D. Keeping confidential data safely 18. Which of the following statements best describes companies that have been faced with cyber theft: A. Discover that a majority of the cases are inside jobs by current employees B. Discover that a majority of the cases are outside jobs by external hackers and thieves C. Readily report full details about the thefts to authorities to deter additional thefts from occurring D. Recognise that customers and shareholders want to know full details and readily report them 19. Sniffer software can be used by hackers to assault companies through the Internet. This is accomplished by: A. Faking an e-mail address or Web page to trick a company into passing along critical information B. Searching individual packets of data as they pass through the Internet, capturing passwords or the entire contents C. Dialing thousands of telephone numbers in search of a way in through a modem connection D. Talking to unsuspecting company employees to get valuable information such as passwords 20. Unauthorised use of computer systems at work often involves the Internet. Which of the following is NOT an example of such Internet abuses? A. Non-work-related download/upload B. Pornography C. General e-mail abuses D. Charting with a friend 21. Which of the following refers to a prominent attribute of management information procured through MIS of

WEDNESDAY: 7 December 2022. Morning Paper. Time Allowed: 2 hours. Answer ALL questions by indicating the letter (A, B, C or D) that represents the correct answer. This paper is made of fifty (50) Multiple Choice Questions. Each question is allocated two (2) marks. 1. What does the harvesting stage of the entrepreneurial process involve? A. Writing business analysis report B. Consulting an entrepreneur C. Choosing an exit strategy D. Getting return on investment (2 marks) 2. Which statement explains how organisations promote intrapreneurship? A. Establishing rigid management organisation structures B. Applying a long and complex organisation structure C. Providing an environment where freedom is valued D. Penalising project and product development failures (2 marks) 3. Choose the statement that describes the purpose of social entrepreneurship. A. Focuses on community and social environments B. Encourages individuals to make incremental profits C. Supplies goods and services to the very needy people D. Solve community challenges in an innovative way (2 marks) 4. Which statement describes how entrepreneurship contributes to economic growth? A. Discussions and reports about the economy                                                                                                                                        B. Widening the economic gap in the country C. Creating high growth ventures in the country D. Working on the country’s economic policies (2 marks) 5. Which statement explains a step in corporate entrepreneurship strategy making process? A. External environment conditions B. Innovative strategic vision C. Competitive business capability D. Strategic business repositioning (2 marks) 6. Choose one principle applied by successful innovative companies. A. Implementation of operational organisation plan B. Application of a single management approach C. Flat organisational structure with project teams D. Implementation of complex market approaches (2 marks) 7. Select a common source of entrepreneurial stress. A. Environmental stress B. Business life cycles C. Political environment D. High need to achieve (2 marks) 8. Choose the most appropriate definition of an entrepreneur. A. Young, brilliant and energetic person B. Gamblers who take big risk in business C. Innovator contributing to economic growth D. Genetically predisposed to be successful (2 marks) 9. Identify one characteristic associated with an entrepreneurial ego. A. Sense of trust and mistrust B. Desire for business success C. Overbearing need for control D. Unrealistic view of business (2 marks) 10. Select a personal characteristic that may hinder an entrepreneur from recognising a business opportunity. A. Prior business experience B. Business social networks C. Entrepreneurial awareness D. Inability to solve problems (2 marks) 11. Identify one content found in the harvest strategy section of a business plan. A. Organisational obstacles and risks B. Organisational budgeting plans C. Organisation’s continuity strategy D. Organisation’s management team (2 marks) 12. Choose one guideline considered when writing a business plan. A. Avoid highlighting the critical risks B. Writing to capture the reader’s interest. C. Excess revenue potential of the business D. Focus on multiple markets and over diversify (2 marks) 13. Choose the major similarity between sole proprietorship and partnership businesses. A. Perpetual continuity B. Unlimited liability C. Full control of owners D. High cost of setting up (2 marks) 14. Choose the importance of having passion when running a successful business. A. To be able to gather the necessary business information. B. To persevere and persist when faced with challenges C. To find an appropriate partner with necessary resources D. To establish a good relationship with potential customers (2 marks) 15. Which of the following statements describe the concept of bootstrapping? A. Using raw materials produced using high technology B. Using human capital that is highly specialised C. Reducing expenses to minimise cost of doing business D. Using technology to produce goods for a new market (2 marks) 16. Choose the statement which gives the description of succession in business. A. The process of transfer of property to founders B. The process of intergenerational transfer of business C. Process of transfer of business documents to the founder D. The process of establishing new business owners (2 marks) 17. Choose the factor driving the growth of corporate entrepreneurship. A. The growth of new markets in developing countries B. The growth of micro, small and medium enterprise. C. Growth of new competitors locally and internationally D. Growth of communication technology locally (2 marks) 18. Choose the factor that contributes to successful corporate entrepreneurship. A. Having a tall organisation structure and lines of authority B. Having a team within organisation’s lines of authority C. Having a vision and support for innovative atmosphere D. Having a single approach that encourages limited projects (2 marks) 19. Which of the following is a technique for improving the creative process? A. Illumination B. Mind mapping C. Incubation D. Transformation (2 marks) 20. Which statement describes the concept of rapid prototyping? A. Technique for evaluating the forces that support change B. Technique for unstructured team produces a novel idea C. Technique that allows discovery of flaws in the idea D. Technique for evaluating the forces that oppose change (2 marks) 21. Select a statement that describes the term patent. A. A design used by a company to identify the origin of a product B. A Symbol used by the company to distinguish a product C. A grant from the government to the inventor of a product D. A grant from associations to the inventor of a product (2 marks) 22. Choose the most distinctive quality of an imitative entrepreneur. A. Pursue opportunities and focus on growth B. Adapt successful innovations and duplicate them C. They go into business based on their expertise D. They are aggressive in experimentation of ideas (2 marks) 23. Which statement describes the force behind small business innovation? A. Agility and adaptability B. Excessive market resources

TUESDAY: 6 December 2022. Afternoon Paper. Time Allowed: 3 hours. Answer ALL questions. This paper has three sections. SECTION I has thirty (30) multiple choice questions. Each question is allocated one (1) mark. SECTION II has twenty (20) short response questions. Each question is allocated two (2) marks. SECTION III has TWO practical questions of thirty (30) marks. Marks allocated to each question are shown at the end of the question(s). SECTION 1 1. What is the location on a server used to store a computer username, password and other information known as? A. User account B. User profile C. Service profile D. Default account (1 mark) 2. Which one of the following refers to the access point of programs displayed on the desktop where users can view the open primary and secondary window with the ability to quickly switch between them? A. Internet explorer B. Finder C. Toolbar D. Taskbar (1 mark) 3. Which of the following refers to a hierarchical database that contains data critical for the operation, applications and services that run on Windows? A. Configuration files B. Group policy C. Registry D. Access (1 mark) 4. Which one of the following key combination is used to make a cursor go to the next section or chunk? A. Crtl + Home B. Ctrl +End C. Ctrl +PgDn D. Ctrl +PgUp (1 mark) 5. Which one of the following keyboard shortcut keys are used in Microsoft word to open insert file menu? A. Ctrl+I B. Ctrl+M C. Alt+I D. Ctrl + F8 (1 mark) 6. Which of the following is a software feature used in word processing programs that corrects common typographical and spellings errors in a document? A. AutoFormat B. AutoCorrect C. AutoChange D. SmartTags (1 mark) 7. What is the name given to blank spaces that line the top, bottom, and left and right sides of a document to make it look neat and professional? A. Margin B. Padding C. Ruler D. Alignment (1 mark) 8. Which one of the following is an excel feature that allows a user to quickly copy formulas and apply them to cells of choice? A. Archiving B. Absolute C. Active D. Anchoring (1 mark) 9. Which of the following function count cells containing any type of information, including error values and empty text (“”)? A. SUMIF B. COUNTIF C. AND D. COUNTA (1 mark) 10. Which of the following function keys is used to print the file in the active window? A. F12 B. F1 C. F8 D. F9 (1 mark) 11. Ms Lyn an intern in the accounting department of an organization wanted to quickly fill suppliers transaction details using excel. Which of the following tools could be appropriate to be used? A. Freeze pane tool B. Format Painter tool C. Vscode D. Autofill Tool (1 mark) 12. Which of the following is a tool used in excel to illustrate small visual representation of the chart’s data series directly linked to a chart data range? A. Legend B. Clipart area C. Plot area D. Chart area (1 mark) 13. Which of the following key combination in word document is used to open the find and replace tool in order to enable a user search for a character, word, or phrase and replace it with something else? A. Ctrl+A B. Ctrl+P C. Ctrl+V D. Ctrl+H (1 mark) 14. Which of the following slides is used to outline main business objectives for purposes of marketing and orientation presentations? A. Quantitative charts. B. Title slide C. Text slides D. Conceptual slides (1 mark) 15. A group of cells on a worksheet, where you set the rules for filtering the data with a specific setup is referred to as? A. Hlookup B. Criteria Range C. Average Range D. Sum Range (1 mark) 16. Which one of the following is an excel function used to calculate accrued interest for a security that pays interest on a periodic basis? A. ACCRINT B. COUNTBlank C. COUNTIF* D. ACOS (1 mark) 17. Which one of the following view slides in PowerPoint makes it easy for one to sort and organize the sequence of your slides as you prepare to print the slides? A. Outline view B. Notes page view C. Slide sorter D. Slide show (1 mark) 18. Which one of the following key combinations is used to underline the selected text? A. Ctrl+ C B. Ctrl+ O C. Ctrl+ E D. Ctrl+ U (1 mark) 19. Which of the following are animation-like effects that happen when you move from one slide to the next during a presentation? A. Slide view B. Slide show C. Slide Sorter D. Slide transitions (1 mark) 20. Which of the following key combination is used to highlight all text from the current position to the end of the text or page? A. Ctrl + Shift + End B. Ctrl+Shift+C C. Ctrl+Shift+Drag D. Ctrl+Shift + > (1 mark) 21. Which of the following refers to a combination of two or more columns in a table that can be used to uniquely identify each row in the table as used in database package? A. Foreign key B. Candidate key C. Primary Key D. Composite key (1 mark) 22. Which of the following tools gives you a more detailed outlook of the structure of the form as used in access? A. Ole Object B. Datasheet view C. Design View D. Lookup Wizard (1 mark) 23. Which one of the following gives you an answer to a simple question, perform calculations, combine data from different tables, add, change, or delete data from a database? A. Filter B. Form C. Query D. Macro (1 mark) 24. In a database package, what is a simple view of data arranged in rows and columns called? A. Datasheet B. Table C. Form D. Specsheet (1 mark) 25. Which one of the following key combinations is used to insert a duplicate of the selected slide in PowerPoint? A. Crtl+I B. Ctrl+T C. Ctrl+W D. Ctrl+D (1 mark) 26. Which

TUESDAY: 6 December 2022. Morning Paper. Time Allowed: 2 hours. Answer ALL questions by indicating the letter (A, B, C or D) that represents the correct answer. The paper is made up of fifty (50) multiple choice questions. Each question is allocated two (2) marks. 1. Which of the following could hinder horizontal communication? A. Flat organisation structure B. Levels of management C. Empire building D. Lack of eye-contact (2 marks) 2. Identify a way that a sender could ensure proper encoding of a message. A. Use active constructions B. Avoid concrete expressions C. Solicit for suitable feedback D. Choose an appropriate channel (2 marks) 3. Which of the following is a benefit of effective communication? A. Information overload                                                                                                                                                                                B. Improvement in technology C. Enhance computer networking D. Stronger business relationships (2 marks) 4. Which of the following is a measure that management could institute to control grapevine in an organisation? A. Allowing access to confidential information B. Not involving employees in decision-making C. Maintaining open channels of communication D. Limit the volume of upward communication (2 marks) 5. Which of the following statement explains the meaning of ethnocentrism as a barrier to communication? A. Assumptions made about people of a certain cultural group B. Belief that one’s own culture is superior to other cultures C. Difference in behavior between people of different cultures D. Different translations because of use of different languages (2 marks) 6. Which of the following statement describes the meaning of the term ‘decoding’? A. Receiving the message sent by the sender B. Translating and interpreting the message received C. Putting the message in a language that is acceptable D. Transferring the message through the selected channel (2 marks) 7. Identify a way in which courtesy could be achieved in communication. A. Ensuring accuracy of information B. Using specific facts and figures C. Sending polite and sincere messages D. Ensuring adequacy of information (2 marks) 8. What term is given to the type of communication that occurs within oneself? A. Intrapersonal communication B. Interpersonal communication C. Personal communication D. Incoherent communication (2 marks) 9. Which of the following is a challenge of using questionnaires to collect data? A. Not possible to administer to a large audience B. Difference in interpretation of the questions C. Cannot be used to collect quantitative data D. No flexibility in terms of time to complete them (2 marks) 10. Which of the following is a quality of a good publicity material? A. Lengthy B. Partial C. Actionable D. Newsworthy (2 marks) 11. The following represents the procedure of designing forms: (i) Preparation of draft (ii) Establishing the purpose (iii) Production of copies (iv) Designing the layout (v) Approval (vi) Determine the content Which of the following set represents the correct procedure of designing a form? A. (i), (ii), (iv), (vi), (iii), (v) B. (ii), (vi), (iv), (i), (v), (iii) C. (v), (iv), (ii), (vi), (i), (iii) D. (iv), (ii), (vi), (i), (iii), (v) (2 marks) 12. Which of the following is a characteristic of a good sentence? A. Should contain one idea B. Should have an introduction C. Should use passive voice D. Should contain all tenses (2 marks) 13. Identify a situation when use of email communication could be preferable. A. When there is need to persuade the reader B. When conveying a composite message C. When sending a message to multiple recipients D. When there is a request for more information (2 marks) 14. When would the use of pie charts be most appropriate in communication? A. Showing comparisons B. Showing trends C. Showing sequence D. For dramatic effect (2 marks) 15. Which of the following non-verbal signal could show active listening? A. Pitch B. Posture C. Touch D. Time (2 marks) 16. Which of the following could determine space maintained between communicators? A. Speed B. Channel C. Medium D. Status (2 marks) 17. Which of the following is an effective use of non-verbal signals? A. Use of simple words that are easy to understand B. Using the same tone throughout a presentation C. Use of facial expressions that match the words D. Use of gestures that contradict the speech (2 marks) 18. Which of the following is a purpose of gestures in speech delivery? A. Introducing B. Supporting C. Concluding D. Evaluating (2 marks) 19. Identify an objective of critical listening? A. Evaluate logic of arguments B. Criticise the message sent C. Helps in gaining trust of others D. Ignore complex information (2 marks) 20. What term refers to an attempt to convince recipients to change their responses or opinions? A. Assertive communication B. Persuasive communication C. Aggressive communication D. Active communication (2 marks) 21. What technique could a receiver use to indicate understanding of a telephone conversation? A. Giving suitable verbal signals B. Use of non-verbal signals C. Recording the conversation D. Making notes of the conversation (2 marks) 22. Which of the following is an advantage of oral communication? A. Suitable for lengthy messages B. Appropriate for controversial matters C. Easy to get the recipient’s attention D. Well thought feedback is given (2 marks) 23. Identify a technique that a speaker could use to manage stage flight. A. Conclude appropriately B. Use appropriate humour C. Rehearse the speech D. Stand near the audience (2 marks) 24. Identify a benefit of using an outline to deliver a public speech. A. Enhances quick presentation B. Makes it easy to read the speech C. Facilitates choice of a good topic D.

MONDAY: 5 December 2022. Afternoon Paper. Time Allowed: 2 hours. Answer ALL questions by indicating the letter (A, B, C or D) that represents the correct answer. This paper is made up of fifty (50) Multiple Choice Questions. Each question is allocated two (2) marks. 1. The component of the central processing unit that fetches data from the main memory and executes the data is referred to as? A. Input unit B. Control unit C. Main memory unit D. Arithmetic and logic unit 2. The device that converts the AC power to DC power is referred to as? A. Rectifier B. Transformer C. Transistor D. Resistor 3. Which of the following logic gates will give a high output when either or all the inputs are high? A. AND B. OR C. NOT D. NAND 4. Which of the following is NOT a safety precaution to be observed when using a computer laptop? A. Periodically check the laptop battery for its performance B. Keep the laptop in a well ventilated area C. Use the laptop in DC with battery removed D. Keep all liquids away from the laptop 5. Which of the following is NOT a type of electronic waste? A. Fridges B. Computer monitor C. Solar panel D. Window panel 6. All of the following are tools needed for assembling a computer EXCEPT? A. Screwdriver B. Cable ties C. Static kit D. Heat sink compound 7. Which of the following is a standard interface for IBM computers that was first developed by Western Digital and Compaq in 1986 for compatible hard drives and CD or DVD drives? A. ATA Ribbon B. SCSI C. SATA D. IDE 8. Which is the computer generation whose circuit design is based on the large-scale integration (LSI) and very large- scale integration (VLSI) of IC circuitry and its microprocessor combined all the circuitry of the control unit and Arithmetic and logic unit (ALU) on a single chip? A. Second generation B. First generation C. Fourth generation D. Fifth generation 9. Printers that provide relatively poor-quality printouts by their printing head element coming into contact with the stationery against an inked ribbon are referred to as: A. Non-impact printers B. Poor quality printers C. Impact printers D. Line printers 10. Which of the following is a permanent memory that stores instructions and data required for booting the computer system? A. Read only memory B. Registers C. Random Access Memory D. Cache Memory 11. Which type of motherboard includes advanced control facilities, where the BIOS program continually checks the CPU temperature and voltages, the cooling fans RPM, among others? A. Mini-ITX B. ATX C. Micro-ATX D. STX 12. The software that provides basic machine instructions to allow the hardware to function and communicate with other software running on a device is known as? A. Assembly language programs B. Firmware C. Liveware D. Flowchart instructions 13. The process of joining software and hardware modules into one cohesive infrastructure, enabling all pieces to work as a whole is called? A. Software architecture B. Enterprise integration C. System architecture D. System integration 14. The process of starting a computer that is off by pressing the on-off switch is known as? A. White booting B. Black booting C. Cold booting D. Warm booting 15. The moral rules or code of behavior applied to the online environment is referred to as? A. Normative ethics B. Cyber ethics C. Cyber security D. Summative ethics 16. Which of the following computer memories can be classified as volatile? A. Hard disk B. Flash disk C. RAM D. ROM 17. Which of the following is NOT a cause of hard disk errors? A. Power outages B. Software failures C. Poor system maintenance D. Computer virus 18. Which of the following terms BEST describes the systematic approach to problem solving that is often used to find and correct issues with complex machines, electronics and computers? A. Diagnostics B. Troubleshooting C. Fault analysis D. Problem solving 19. A malfunction that occurs when data is being accessed from memory for use by a program is known as? A. Memory write B. Memory read C. Hard disk write D. Hard disk read 20. Which of the following is the utility that allows computer users to edit, delete, zip, upload, download and copy files? A. Disk manager B. File editor C. File manager D. Disk editor 21. Which of the following cannot be classified as a monthly disk maintenance activity? A. Check for and install any operating system updates. B. Empty the Recycle Bin. C. Backup any data or important files. D. Delete all temporary files 22. Which of the following is a Power- on Self-Test (POST) message? A. Off screen text messages. B. Audio codes. C. Octal numeric codes. D. Data codes 23. Which of the following is the process that communicates with different services, gathers data and proceeds with further steps based on the desired action? A. Electronic data interchange B. Data integration C. Enterprise application integration. D. Electronic application integration. 24. Which of the following is the correct binary equivalent of the octal code 7623? A. 111110010011 B. 110111010011 C. 101011110111 D. 011010110111 25. The process of removing errors in a software code is called? A. Testing B. Debugging C. Loading D. Compiling 26. A group of 8 binary digits operated as a unit is referred to as: A. A byte B. A block C. A bit D. A nibble 27. Which of the following is the extension of a file created using Adobe reader A. .txt B. .xls C. .pdf D. .bmp 28. Which of the following is NOT a security goal that organisations must endeavour to achieve in order to retain a competitive advantage? A. Confidentiality B. Integrity C. Accessibility D. Availability 29 _______________________ devises plans for the restoration of computing and communications services after they have been disrupted by an event such as an earthquake, flood, or terrorist attack. A. Business continuity planning B. Disaster recovery planning C. Data continuity planning D. Troubleshooting 30.

MONDAY: 5 December 2022. Morning Paper. Time Allowed: 2 hours. Answer ALL questions by indicating the letter (A, B, C or D) that represents the correct answer. The paper is made up of fifty (50) multiple choice questions. Each question is allocated two (2) marks. 1. The computer memory used for temporary storage of data and program is known as? A. RAM B. ROM C. EROM D. EPROM (2 marks) 2. Which of the following statement is TRUE about impact printers? Impact printers: A. Are more expensive than laser printers B. Use optical technology C. Include ink jet and thermal devices D. Strike a ribbon against the paper to produce character images (2 marks) 3. Which of the following is used by a typical modern computer? A. More than 1000 vacuum tubes B. Magnetic tapes C. LSI chips D. Magnetic cores (2 marks) 4. Which one of the following BEST describes Microsoft Word? A. An operating system B. A processing device C. Application software D. A database system (2 marks) 5. A computer cannot “boot” if it does not have one of the following. Which ONE? A. Compiler B. Loader C. Operating system D. Assembler (2 marks) 6. Select the term that represents attempts by individuals to obtain confidential information from a computer by falsifying their identity. A. Phishing trips B. Computer viruses C. Phishing scams D. Spyware scams (2 marks) 7. Which of the following software applications would be the MOST appropriate for performing numerical and statistical calculations? A. Database B. Document Processor C. Graphic Package D. Spreadsheet (2 marks) 8. A CD-ROM is a semiconductor memory. A. TRUE B. FALSE (2 marks) 9. A type of computer storage which stores or retains data after power goes off is known as? A. Volatile storage B. Non-volatile storage C. Sequential storage D. Direct storage (2 marks) 10. Which of the following refers to a small, single-site network? A. LAN B. WAN C. PAN D. MAN (2 marks) 11. What characteristic of read-only memory (ROM) makes it useful? A. ROM information can be easily updated B. Data in ROM is nonvolatile, that is, it remains there even without electrical power C. ROM provides very large amounts of inexpensive data storage D. ROM chips are easily swapped between different brands of computers (2 marks) 12. Select from the list below the three basic physical equipment categories of microcomputer hardware. A. Keyboard, monitor, hard drive B. System unit, input/output, memory C. System unit, input/output, secondary storage D. System unit, primary storage, secondary storage (2 marks) 13. Suggest the type of outsourcing MOST commonly used for IT equipment. A. Onshore B. Offshore C. Up shore D. Down Shore (2 marks) 14. Identify the first step in system development lifecycle (SDLC) framework? A. Feasibility Study B. Requirement Gathering C. Monitoring D. System Analysis (2 marks) 15. Which of the following is NOT correct model in Software Development Paradigm? A. Waterfall Model B. P model C. Spiral Model D. V model (2 marks) 16. Which system development model is NOT suitable for accommodating changes? A. Prototyping B. Spiral Model C. Waterfall Model D. Agile (2 marks) 17. The _______________________________ can help you choose a product. A. Office Automation System B. Management Information System C. Transaction Processing System D. Decision support system (2 marks) 18. What is the major drawback of using RAD Model? A. Highly specialised and skilled developers/designers are required B. Increases reusability of components C. Encourages customer/client feedback D. Increases reusability of components, highly specialised and skilled developers/designers are required (2 marks) 19. Name the form of transaction processing in which all transactions are collected into a group and processed together. A. Accumulation processing B. Batch processing C. Data collection D. Data collection (2 marks) 20. Select from the list below the name of Internet service that enables a user to log on to another computer and access its public files. A. Telnet B. FTP C. Content streaming D. Instant messaging (2 marks) 21. Which of the following represents the application of information concepts and technology to routine, repetitive, and usually ordinary business transactions. A. E-commerce B. Transaction processing systems C. Management information systems D. Decision support systems (2 marks) 22. Which of the following statement is correct? A. Modem is a software B. Modem is the operating system C. Modem helps in stabilizing the voltage D. Modem converts the analog signal into digital signal and vice-versa (2 marks) 23. Which of the following can help you choose a product? A. Office automation system B. Management information system C. Transaction Processing System D. Decision Support System (2 marks) 24. Which of the following is a graphic representation of the modules in the system and the interconnection between them? A. System chart B. Structural chart C. Flow chart D. Pie chart (2 marks) 25. Which of the following is NOT one of the main components in a decision support system? A. Model B. Communication C. Data D. Dialogue (2 marks) 26. Select from the list below the statement that BEST describes Buy-side e-commerce. A. The use of electronic communications for all business processes. B. Any electronically mediated communication between an organisation and its stakeholders. C. An organisation using electronic media to sell direct to its customers. D. An organisation using electronic media to purchase from its suppliers. (2 marks) 27. Which of the following software development approach is NOT applicable to projects that demand continuous maintenance? A. Agile development methodology. B. DevOps deployment methodology C. Waterfall development methodology D. Rapid application development methodology (2 marks) 28. Select the type of information system that provide critical information for top management. A. Expert B. Executive C. Decision D. Managerial (2 marks) 29. How many arrows should come out of a decision symbol in a flowchart? A. 0 B. 1 C. 2 D. 3 (2 marks) 30. Which of the following methods processes data immediately after a transaction occurs? A. Batch B. Parallel C. Sequence D. Real time (2 marks) 31. Which information system use the information

COMPUTING SYSTEMS DECEMBER 2022 PAST PAPERS – Click to view INFORMATION SYSTEMS SUPPORT AND INTEGRATION DECEMBER 2022 PAST PAPER – Click to view COMMUNICATION SKILLS AND ETHICS IN INFORMATION SYSTEMS DECEMBER 2022 PAST PAPER – Click to view COMPUTER INFORMATION SYSTEMS APPLICATIONS DECEMBER 2022 PAST PAPER – Click to view ENTREPRENEURSHIP AND INNOVATION DECEMBER 2022 PAST PAPER – Click to view INFORMATION SYSTEMS STRATEGY, GOVERNANCE AND ETHICS DECEMBER 2022 PAST PAPER – Click to view DATA MANAGEMENT INFORMATION SYSTEMS DECEMBER 2022 PAST PAPER – Click to view RESEARCH AND PROJECT MANAGEMENT DECEMBER 2022 PAST PAPER – Click to view NETWORKING AND DATA COMMUNICATION DECEMBER 2022 PAST PAPER – Click to view PROGRAMMING AND SYSTEMS ANALYSIS AND DESIGN DECEMBER 2022 PAST PAPER – Click to view BIG DATA MANAGEMENT DECEMBER 2022 PAST PAPER – Click to view BIG DATA ANALYTICS DECEMBER 2022 PAST PAPER – Click to view NETWORKING AND TELECOMMUNICATIONS DECEMBER 2022 PAST PAPER – Click to view INFORMATION SYSTEMS SECURITY DECEMBER 2022 PAST PAPER – Click to view

WEDNESDAY: 7 December 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 differences between a cash market and a derivative market. (4 marks) 2. Explain THREE types of forward commitment contracts. (6 marks) 3. Joan Akoth believes she has identified an arbitrage opportunity for a commodity as indicated by the information provided below: Required: Describe THREE transactions necessary to take advantage of this specific arbitrage opportunity. (3 marks) Calculate the arbitrage profit. (3 marks) Describe FOUR market imperfections that could limit Joan’s ability to implement this arbitrage strategy. (4 marks) (Total: 20 marks) QUESTION TWO 1. Describe THREE types of risks involved in forward contract. (6 marks) 2. Babito Fund manager is evaluating various investment holdings in their portfolio and they have gathered the following information: 1. They are exposed to a four month forward to buy a zero coupon bond that will mature in one year. The current price of the bond is Sh.930 and the continuously compounded risk free rate of return is 6% per annum. 2. A three month all share index (currently at 400) futures contract with a continuously compounded dividend yield of 1% per annum and 6% interest rate (risk free rate). 3. A one year futures contract on gold costs Sh.20 per 10 gm to store it with payment made at the end of the year. Spot rate is observed at Sh.900 with a risk free rate of 7% per annum compounded continuously. Required: Using the cost-of-carry model, calculate: The appropriate forward price on the zero coupon bond. (2 marks) The arbitrage free future price of the index. (2 marks) The theoretical price of the futures price on gold. (2 marks) 3. Zipro Limited is considering a swap in which they will pay the floating rate and receive the return on equity. The equity swap is for one year involving floating quarterly payments on 90 day, 180 day, 270 day and 360 day whose underlying is a 90-day London interbank offered rate (LIBOR) and receiving return on equity. Annualised LIBOR rates are as follows: Required: Calculate the swap fixed rate. (4 marks) 60 days into the swap, the stock index is at 1436.59 while at the swap initiation the index was at 1405.72. The present value factors are 0.9965, 0.9858, 0.9751 and 0.9643 respectively, 60 days into the swap. Calculate the swap market value with a Sh.1 notional principal. (4 marks) (Total: 20 marks) QUESTION THREE 1. Assess THREE functions of a clearing house in relation to contract. (6 marks) 2. A British company intends to issue a five-year bond with £100 million at 4.5% but actually needs an equivalent amount in dollars, $1.50 million (current $/£ exchange rate is $1.50/£) to finance operations in the United States (US). A US company intends to issue $150 million bonds at 6% maturing in 5 years and needs £100 million to invest in London. To meet each other’s needs, both parties enter into a swap. Required: Explain the structure of the swap agreement. (2 marks) Determine the amount that the British and US companies would spend on interest. (2 marks) Evaluate the transactions that would take place at maturity of the swap. (2 marks) 3. Fanaka Investments are considering a share worth Sh.49 at the securities exchange. They establish that a call option with an exercise price of Sh.50 costs Sh.6.25 and a put with an exercise price of Sh.50 cost Sh.5.875. Suppose Fanaka Investments goes ahead and buys a straddle. Required: Differentiate between a “straddle” and a “strangle” as used in option derivative. (2 marks) Determine the value and profit at expiration from the straddle if price of the share at expiration is Sh.61. (2 marks) The maximum loss from the straddle. (2 marks) The breakeven price at expiration from the straddle. (2 marks) (Total: 20 marks) QUESTION FOUR 1. Describe TWO ways of settling a forward contract. (4 marks) 2. Discuss THREE challenges of artificial intelligence (AI) in derivatives market. (6 marks) 3. European put and call options with an exercise price of Sh.90 expire in 115 days. The underlying is priced at Sh.96 and makes no cash payments during the life of the options. The applicable risk free rate for these instruments is 4.5%. The put recently has sold for Sh.7.50 and the call Sh.16.00. Assume a 365-day year. Required: Determine whether there is any mispricing present in the option markets by comparing the price of the actual call with the price of the synthetic call. (4 marks) 4. Salim Karisa is a derivatives analyst and is interested in the valuation of a call option on Beta Company using a one period binomial option pricing model. The underlying stock is a non dividend paying stock. Salim gathers the following data: 1. The current share price is Sh.50 and the call option exercise price is Sh.50. 2. In one period, the share price will either rise to Sh.56 or decline to Sh.46. 3. The risk free rate of return is 5%. Required: Calculate the following: The optimal hedge ratio for the call option. (2 marks) The risk-neutral probability of the up move for the Beta stock. (2 marks) The value of the call option using the binomial model. (2 marks) (Total: 20 marks) QUESTION FIVE 1. Discuss THREE weaknesses of delta hedging as a risk management strategy in derivatives contracts. (6 marks) 2. Eliud Dande is a portfolio manager and oversees a balanced fund. The balanced fund has a current market value of Sh.700 million and a current allocation of 65% equity with an equity beta of 1.12 and 35% fixed income with a modified duration of 6.55. Eliud Dande believes that reported earnings will be better than those anticipated by the market and based on this short-term market view, he decides to use futures contract to adjust the allocation of the balanced

TUESDAY: 6 December 2022. Afternoon 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. Describe how the following factors could affect an individual investor’s risk tolerance: Source of wealth. (1 mark) Measure of wealth. (1 mark) Stage of life. (1 mark) 2. Capital market expectations are the essential inputs to deciding on a strategic asset allocation. In relation to the above statement, identify the SEVEN steps involved in the process of capital markets expectations setting. (7 marks) 3. XYZ is an investments practitioner and is analysing Elimu Msingi endowment fund with Sh.20 million in assets. The fund has a targeted spending rate of 4.5%. The fund has been incurring 0.75% as management costs. The trustees would like to preserve the purchasing power of the fund and curtail the risk in terms of standard deviation to no more than 10%. Inflation expectation for the coming year is 2%. Additional information: 1. XYZ is considering the following domestic investments to recommend to Elimu Msingi Board of trustees for incorporation into their investment portfolio: The risk free rate applicable for these investments is 3% and XYZ estimates Elimu Msingi to be moderately risk averse with a numerical ranking of 5. 2. XYZ identifies further foreign investment opportunities presented by various portfolios listed below: Required: Determine Elimu Msingi’s endowment fund required rate of return. (1 mark) Advise XYZ on the most appropriate domestic investment to recommend to the Board of trustees of Elimu Msingi using the utility adjusted rate of return. (5 marks) Given that portfolio H is composed of 35% of portfolio E and 65% of portfolio F, determine the optimal asset class weights in portfolio H. (4 marks) (Total: 20 marks) QUESTION TWO 1. Describe THREE primary portfolio rebalancing strategies. (6 marks) 2. Daniel Menzo who is 35 years old has recently retired from playing football. He is meeting with his portfolio manager to update his investment policy statement (IPS): Income He will receive an annual pension of Sh.1,000,000 before tax in the coming year. In future years, this amount will be indexed for inflation which is expected to be 5% per year. The pension is taxed at 30%. Expenses His living expenses over the previous twelve months were Sh.1,200,000. He expects these expenses will grow at the expected rate of inflation this year and in each future year. Assets In addition to his pension payments, his investment portfolio is currently valued at Sh.15 million. Next month, he wants to make a direct equity real estate investment of Sh.1,000,000 in a junior school sports training facility. He also anticipates that he will receive a performance cash bonus of Sh.3,500,000 which will be immediately invested in his portfolio. This bonus and all investment returns are taxed at 30%. Goals Daniel wants his portfolio to fund any expenses not covered by his pension, while maintaining its real value over time. He is eager to consider investments in more risky asset classes. He is not concerned about volatility in the value of his portfolio as long as it continues to support his living expenses. He does not intend to seek further employment in retirement. Required: Calculate Daniel’s nominal after tax required rate of return for the coming year. (8 marks) Identify FOUR factors that indicate Daniel has a high ability to take risk. (4 marks) Formulate the time horizon and unique circumstances constraints section of Daniel’s IPS. (2 marks) (Total: 20 marks) QUESTION THREE 1. Describe TWO spread duration measures used for fixed rate bond. (4 marks) 2. An investor gathers the following information relating to Kimbo shares listed at the securities exchange: • On Wednesday, the shares closed the day at Sh.40 per share. • On Thursday morning before market open, the investor decides to buy Kimbo Ltd.’s shares and transfers a limit order for Sh.39.95 per share for 1,000 shares. The price never falls to Sh.39.95 during the day and the order expires unfilled. The shares closes the day at Sh.40.04 per share. • On Friday, the order is revised to limit of Sh.40.05. The order is partially filled that day as 700 shares are bought at Sh.40.05. The commission is Sh.17. The share closes at Sh.40.08 and the order is cancelled. Required: Calculate the following: Explicit cost of trade. (1 mark) Realised profit or loss. (1 mark) Delay cost. (1 mark) Missed trade opportunity costs. (1 mark) Implementation shortfall. (2 marks) 3. Silvester Onyango, a high net worth (HNW) investor has approached Antony Makau, an independent financial consultant to review the performance of his investment account over the past four years. The account is managed by an external portfolio manager, but Silvester Onyango has full control over the timing and the size of the cash flows being invested into and withdrawn from the account. Required: The annualised time weighted rate of return (TWRR). (4 marks) The annualised money weighted rate of return (MWRR). (4 marks) Advise on the most appropriate return measure for use in evaluating the external portfolio manager’s investment performance. (2 marks) (Total: 20 marks) QUESTION FOUR 1. Assess THREE potential sources of excess return for an international bond portfolio. (6 marks) 2. Explain THREE guiding principles that firms should consider while applying the global investment performance standards (GIPS) to wrap fee portfolios. (6 marks) 3. Caroline Wesula is evaluating several alternatives for the Ugandan equity portfolio of her company’s pension plan involving the following managers: Additional information: 1. Active versus misfit risk is 7.13%. 2. Active returns are uncorrelated. 3. Overall equity portfolio benchmark is Dumax 3000. 4. Caroline Wesula has taken information in the table above and used mean-variance optimizer to create an implementation efficient frontier. The highest risk point on the efficient frontier is 100% allocation to the long-short manager with a 100% Dumax 1000 overlay. 5. The active risk of this portfolio with the adjustments in point (4) above

TUESDAY: 6 December 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 characteristics that distinguish separately managed accounts from investment funds. (4 marks) 2. Explain THREE types of alternative investment structures. (6 marks) 3. The following information relates to a real estate property owned by Hamza Holding Ltd.: Required: Using the cost approach, determine the value of Hamza Holding Ltd.’s property. (4 marks) 4. A single-tenant office building was leased six years ago at a cost of Sh.12,000,000 per year. The next rent review occurs in two years. The estimated rental value (ERV) in two years based on current market conditions is Sh.15,000,000 per year. The all risks yield (cap rate) for comparable fully let properties is 10%. Because of lower risk, the appropriate rate to discount the term rent is 8%. Required: The value of the office building using term reversion method. (6 marks) (Total: 20 marks) QUESTION TWO 1.  Highlight FOUR areas of regulation of hedge funds. (4 marks) 2.  Explain THREE classification of participants in the alternative investments environment. (6 marks) 3. A company’s founders believe that their company can be sold for Sh.60 million in four years. The company needs Sh.6 million in capital now and Sh.3 million in three years. The entrepreneurs want to hold one million shares. The venture capital firm uses a discount rate of 20% over all four years. Required: The post-money valuation at the time of second round financing. (1 mark) The post-money valuation at the time of first round financing. (2 marks) The required fractional ownership for the second round investors. (1 mark) The fractional ownership for the first round investors after dilution by the second round investors. (2 marks) The share price after the first round of financing. (2 marks) The share price after the second round of financing. (2 marks) (Total: 20 marks) QUESTION THREE 1. Outline THREE differentiating characteristics of commodity indexes from other indices. (3 marks) 2. Enumerate FOUR requirements that must be met by a special purpose vehicle (SPV) in order to give assurance that its assets are free from bankruptcy risk. (4 marks) 3. Consider a nine month forward contract on a commodity that trades at a spot price of Sh.100. The commodity has market wide convenience yields of 3%, storage costs of 2% and financing costs of 7%. Required: The price of a ten-month forward contact. (3 marks) 4. An issuer is considering the following two collateralised mortgage obligation (CMO) structures: Tranche A – E are a sequence of planned amortisation class (PAC) interest only (IO), tranche F is a PAC II and tranche G is a support tranche without schedule. Required: In structure II, tranche G is created from tranche F in structure I, calculate the coupon rate for tranche G assuming that the combined coupon rate for tranches F and G in structure II should be 8.5%. (6 marks) Explain the effect on the value and average life of tranche A to tranche E by including the PAC II in structure II. (2 marks) Explain the difference in the average life variability of tranche G in structure II and tranche F in structure I. (2 marks) (Total: 20 marks) QUESTION FOUR 1. In relation to equity crowdfunding, outline THREE benefits of equity crowdfunding as a form of alternative investment. (3 marks) Summarise FOUR risks associated with equity crowdfunding. (4 marks) 2. An analysis of an agency CMO structure using Monte Carlo simulation model based on 12% volatility found the following: Required: The option cost for PAC 1A, PAC IIA and support S1. (3 marks) The PAC tranches that is expensive in the deal on a relative value basis. (2 marks) The support tranche which is expensive on a relative value basis. [Hint: Support tranches are PAC IIA, PAC 11B, support S1 and support S2]. (2 marks) 3. An investor is considering a Sh.100 million collateralised debt obligation (CDO) structure with the coupon rate to be offered at the time of issuance is shown below: The collateral consist of bonds that all mature in 10 years and the coupon rate for every bond is the 10 year treasury rate plus 400 basis points. The investor enters into an interest rate swap agreement with another party with a notional amount of Sh.80 million in which he agrees to do the following: 1. Pay a fixed rate each year equal to the 10 year treasury rate plus 100 basis points. 2. Receive secured overnight financing rate (SOFR). The 10 year treasury rate at the time the CDO is issued is 7%. The asset management fee paid is Sh.634,000. Required: Calculate the annual return available to the subordinate/equity tranche. (6 marks) (Total: 20 marks) QUESTION FIVE 1. Highlight FOUR disadvantages of direct investing in an alternative investment. (4 marks) 2. Assess TWO biases in hedge fund databases that appear to increase the return or decrease the risk of investing in hedge funds. (4 marks) 3. The following collaterised mortgage obligation (CMO) structure is backed by 8% collateral: A client wants a notional interest only (IO) with a coupon rate of 8%. Required: Calculate the notional amount for this notional interest only CMO. (6 marks) 4. The limited partners in a private equity fund make a Sh.200 million contribution in the first year to fund an investment. The terms of agreement provides for a 6% hurdle rate, a 100% catch-up and an 80/20 carry split. The investment is sold by the fund in the second year for Sh.300 million. Required: Determine the amount that is received by the following at the end of second year: Limited partners. (3 marks) General partner. (3 marks) (Total: 20 marks)

MONDAY: 5 December 2022. Afternoon 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. Explain the following terms in relation to term structure of interest rates: Non-parallel shift. (2 marks) Yield curve twists. (2 marks) Butterfly shifts. (2 marks) 2.  The current 6-month rate is 3.5% and the 6-month forward rates (all on semi-annual basis) are shown below: A bond has 1.5 years to maturity and has an annual coupon of 4%. The bond has a par value of Sh.100. Required: Derive the spot rates from the forward rates. (4 marks) Determine the value of the bond based on the spot rate in (b) (i) above. (2 marks) 3. A bond investor holds a three-year bond with an annual coupon rate of 12% and a yield to maturity of 9%. The bond has a face value of Sh.1,000. Required: Calculate the bond’s convexity. (5 marks) 4. The flat price on a fixed rate corporate bond falls one day from 92.25 to 91.25 per Sh.100 of par value. This is due to poor earnings and unexpected rating downgrade of the issuer. The annual modified duration for the bond is 7.24. Assume that the benchmark yields remain unchanged. Required: Calculate the percentage price change. (1 mark) Determine the estimated change in the credit spread. (2 marks) (Total: 20 marks) QUESTION TWO 1. Explain THREE factors that might affect the spread on corporate bonds. (6 marks) 2.  Outline THREE classifications of global bond markets. (3 marks) 3. A 3-year 4.25% coupon bond is puttable at par one year and two years from today. Coupon is payable annually. Additional information: 1. One year forward rates are as follows: 0 year from now 2.5% 1 year from now 3.518% 2 years from now 4.564% 2. The par value is Sh.100. 3. Assume that there is zero volatility. Required: Calculate the value of the investor put option. (5 marks) 4. The following information is provided about four comparable bonds: The bonds have a par value of Sh.100 Required: Determine the price of a 4-year, 6% semiannual coupon rate bond. (6 marks) (Total: 20 marks) QUESTION THREE 1. Describe TWO methods used to estimate interest rate volatility. (4 marks) 2. Explain THREE characteristics of equilibrium term structure models. (6 marks) 3. Juma Ali decides to buy a four year zero coupon corporate bond and then sell it after two years. The bond’s par value is Sh.100. The swap rate is used as a proxy for corporate yields. He gathers the following information on spot rate for on the run annual coupon government securities and swap spreads. Required: Determine Juma Ali’s return. (3 marks) 4. James Bondoku purchased a bond between coupon periods. The period between the settlement date and the next coupon payment date is 120 days. There are 182 days in the coupon period. The bond has a coupon rate of 14% per annum and a discount rate of 12%. The bond has a face value of Sh.10,000 with five semiannual coupon payments remaining. Required: The accrued interest of the bond. (2 marks) The full price of the bond. (4 marks) The clean price of the bond. (1 mark) (Total: 20 marks) QUESTION FOUR 1. Explain the following types of bonds: Samurai bonds. (2 marks) Junk bonds. (2 marks) Serial bonds. (2 marks) 2. A two-year floating rate note pays 6 month LIBOR plus 80 basis point. The floater is priced at Sh.97 per 100 of par value. Current 6 month LIBOR is 1%. Assume a 30/360-day count convention and evenly spaced periods. Required: Calculate the discount margin for the floater in basis point. (5 marks) 3. Bancy Ruri is valuing a floater issued by Biashara Bank. The floater has a par value of Sh.100, three-year life and pay based on annual LIBOR. Bancy has generated the following binomial tree for LIBOR: 1 year forward rates starting in year: Required: Calculate the value of a capped floater with a cap of 4%. (3 marks) Determine the value of the cap in a capped floater with a cap of 4% (2 marks) 4. The following spot rates are available: 3-year spot rate 4.752% 5-year spot rate 5.2772% Required: Determine the 2-year forward rate three years from now on a bond equivalent basis. (4 marks) (Total: 20 marks) QUESTION FIVE 1. In relation to bonds with embedded options: Citing two suitable examples, explain the term “lattice”. (4 marks) Describe the concept of backward induction valuation. (2 marks) 2. The yield to maturity (YTM) for a benchmark one-year annual pay bond is 2% for a benchmark two-year annual pay bond is 3% and for a benchmark three-year annual pay is 4%. A three year 5% coupon, annual pay bond with the same risk and liquidity as the benchmark is selling for Sh.102.7751 today to yield 4%. Required: Determine whether the value is correct for the bond given the current term structure. (5 marks) 3. Lucy Biba, an investor buys the 10-year, 8% annual coupon payment bond at Sh.85.5031 per 100 of par value and sells it in four years. After the bond is purchased, interest rates go up to 11.40%. Required: Calculate Lucy Biba’s realised return four-year horizon yield. (5 marks) 4. A 90-day Treasury bill currently has a price of Sh.9,800 and a face value of Sh.10,000. There are 365 days in a year. Required: Calculate the yield on discount basis. (2 marks) Calculate the yield on a money-market basis. (2 marks) (Total: 20 marks)

MONDAY: 5 December 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 FATUMA APIO Fatuma Apio has such a strong leadership presence that it would be difficult to talk about Bora Association of Manufacturers (BAM) without mentioning her name. For close to a decade now, press conferences, newspaper commentaries, trade and investment talks associated with BAM always had a permanent fixture that was its Chief Executive Officer (CEO), Fatuma Apio. As she exits BAM due to end of her term of service, her charisma as a superstar CEO may become a difficult feat for the incoming CEO, Musa Mapito, to emulate. Fatuma Apio is well known in the manufacturing industry due to her signature look. She dresses in Ankara coats, which are quite uncommon in this part of the world. Fatuma rose through the ranks having joined BAM as the head of policy, research and advocacy in the year 2005. She took over the leadership mantle of BAM in the year 2012 after the Board of BAM pushed out its then CEO, Bakari Mapelu due to lackluster performance. BAM had always been a high performing organisation and the Board felt that Bakari Mapelu lacked the right skill set, decision style and values to steer BAM forward. In Fatuma Apio, the Board saw a leader with the “right  package” of skills, values and abilities and a person who could build a strong leadership team in the organisation. To them, Fatuma Apio was an idealist who had an unquenchable thirst for learning and growing. They knew that she would influence the other leaders and employees of BAM to follow suit. This would then result in a healthy organisational culture necessary for the success of BAM. Fatuma Apio believed in and implemented Elton Mayo’s Human Relations Movement Theory at BAM. Without a doubt, Fatuma was a transformational leader. Fatuma Apio’s farewell party was quite emotional since members of staff felt like one big united family, and her separation with BAM was unimaginable. Fatuma had a knack for recruiting the right staff and developing them to their highest potential. She had what it took when it came to staffing. No wonder BAM became so successful during her tenure to the envy of many organisations. She ensured that BAM had a progressive staffing policy. The policy encouraged employees to have a work life balance. In her final speech, she narrated her experience as a newly appointed CEO where most of her time was spent at the workplace. “I used to work late into the night and during weekends at the expense of my young family. This can be challenging to many of us and requires a lot of discipline and a solid support system. Luckily, I had great support from my husband. I highly discourage such a work ethic. You should always create time for your families. I know of situations where, such a work ethic has led to conflicts at the family level and the repercussions experienced at the workplace,” she told the employees. As one of the few women CEOs, and just in her 40s, her advice to young women aspiring to be top executives is simply to acquire knowledge and competence, saying it is the best investment one can make. “Knowledge will aid you in making great strides in all the areas you are passionate about. Most importantly, self-discipline and responsibility shall steer you to the right path,” she says. What she likes most about the industry now is that more women are taking up leadership positions than ever before. “Unfortunately, the game is already rigged, particularly on what is expected of women in leadership and their ability to hold such positions,” she added. Fatuma encouraged women employees of BAM not to be bound by defined spaces. They should shine in their talent and skills to make a difference. “This concept continues to be demonstrated everyday as more women take up C-suite roles, more so in traditionally, male-dominated sectors, such as manufacturing,” she said. Fatuma added that, “BAM started the Women in Manufacturing Programme to provide a space for women to venture into the manufacturing space. We aspire to see more women participate in the sector in senior leadership roles, as owners and founders, and for young girls to see themselves as future industrialists”. According to her, there were times when the issues she wanted to change took too long to materialise, but she remained steadfast. This taught her to be patient and resilient. “I have learnt that challenges fuel you to become more innovative,” she concluded. Required: 1.  Fatuma Apio believed in and implemented Elton Mayo’s, Human Relations Movement theory at BAM. With reference to the above statement, describe FIVE actions that Fatuma Apio may have taken, to implement the theory in her organisation. (10 marks) 2.  Bernard M. Bass developed the transformational leadership theory in 1985 as a way to describe the psychological mechanisms that are used by leaders. With reference to the above statement: Explain SIX personal traits that Fatuma Apio possesses that enable her to be regarded as a successful transformational leader. (6 marks) Examine FOUR elements that make up a transformational leader, which came to be known as the 4 Is. (8 marks) 3. Enumerate SIX principles that BAM might have taken into consideration while developing a staffing policy. (6 marks) 4. Fatuma Apio encouraged BAM employees to always create time for their families to avoid conflicts. Conflicts in organisations also occur between line and staff management. With reference to the above statements, assess FIVE possible sources of conflict between line and staff management of BAM. (10 marks) (Total: 40 marks) QUESTION TWO 1. Identify FIVE reasons why a business organisation should write a business plan. (5 marks) 2. Organisational success is dependent on the interaction and interdependence of internal and external system components. With reference to the above statement, describe FIVE components