April 9, 2024

INSTRUCTIONS TO CANDIDATE 1. You have THREE (3) hours to answer all the questions. 2. Marks for each question are as indicated in the brackets. 3. The paper consists of THREE sections: A, B and C. 4. Do not write on the question paper. This paper consists of 8 printed pages. Candidates should check the question paper to ascertain that. All pages are printed as indicated and that no questions are missing. SECTION A (20 MARKS) Answer all questions in this section in the answer booklet provided. Each question carries one (1) mark. 1. Which of the following include the risk management steps? A. Identifying, analyzing and acting B. Researching, reviewing and responding C. Reviewing monitoring and managing D. Analyzing changing and suppressing 2. Which of the following is NOT a major method of managing risk? A. Loss control. B. Loss diversification. C. Loss financing. D. Internal risk reduction. 3. Which one of the following is a benefit of routine inspection on machines and equipment of a company? A. Frequent wear and tear of machines. B. Regular breakdowns. C. High cost of maintenance. D. Reduced frequency on breakdowns. 4. Which one of the following is an example of indirect loss to the business? A. Employee health problem due to usage of insecticide B. Loss of profits due to poor publicity C. Loss of farm produce due to hailstorms D. Cost of replacing farm equipment after fire 5. Which of the following is a method of transferring risk? A. adding more controls B. insurance C. avoiding D. outsourcing 6. _______________is not a risk management strategy. A. Risk transfer. B. Risk mitigation. C. Risk avoidance. D. Risk Assurance. 7. Which of the following is not part of the external environment risk? A. Political risk. B. Legal risk. C. Financial risk. D. Socio-cultural risk. 8. Which one of the following is NOT a positive risk response method? A. Mitigate B. Transfer C. Exploit D. Share 9. Risk exploitation may be on one of the following. A. Adopting a new technology B. Investing in a new project C. diversifying the market D. winning a new contract 10. A peril is………? A. moral hazard B. serious and immediate danger that is catastrophic C. a condition that increases chances of loss D. probability of loss to occur 11. As a manager of a company how can you deal with a risk that has high probability of occurrence? A. acceptance B. transfer C. avoidance D. ignore 12. Risk management policies are not common in many business organizations. What could be the reason behind this? A. Lack of knowledge about them. B. Very hard to get them. C. Not necessary. D. No clarity of purpose. 13. Financial risks in business could include all the following except? A. Price risk B. Diversification risk C. Profits margin risk D. Credit risk 14. What do you understand by the term risk? A. A situation in which the probability of loss is one. B. A situation in which the probability of loss is zero. C. Uncertain about the occurrence of a loss. D. Low levels of loss occurring. 15. The following factors contribute to risk occurrence. Except? A. Uncertainty. B. Complexity. C. Education. D. Inadequate risk culture. 16. Which ONE of the following cannot be considered when taking risk mitigation measures? A. Terrorism B. Poor health of the manager C. Breakdown of machines D. Physical injury of the workers 17. Define the term risk insurance in business. A. Avoiding of risks B. Payment of intentional losses C. Centering itself with losses to occur D. Pooling resources together to cater for misfortunes 18. ___________is the meaning of pure risk. A. Beyond human control. B. No financial gain. C. Major losses to an organization. D. Where there are only two possible outcomes: loss or no loss. 19. Acceptance of risks is allowed in one of the risks below. Which one? A. Human resource turnover. B. Legal liability. C. Technology. D. Business competition. 20. Which of the following is the first step in risk management? A. Assessing the risk B. Mitigating the risk C. Identifying the risk D. Monitoring and controlling the risk. SECTION B (40 MARKS) Answer all the questions from this section. 21. Risk control is a crucial part of the risk management process. State THREE benefits of risk control to a business. (3 marks) 22. Businesses don’t operate in a vacuum. Several factors influence their operations. Identify TWO internal factors that affect their operations. (2 marks) 23. Business risks are inevitable and are of different types. Highlight THREE reasons why financial risks are often uninsurable. (3 marks) 24. State THREE opportunities an organization may enjoy after doing SWOT analysis. (3 marks) 25. Highlight TWO ways of risk reduction that the government may employ in business. (3 marks) 26. Failure to identify business risks may subject a business to unexpected losses. Outline TWO reasons why a company needs to identify business risk. (2 marks) 27. State TWO importance of strategic plan to the business in risk management. (2marks) 28. Outline TWO limitations of having huge business liabilities during risk assessment. (2 marks) 29. Highlight THREE reasons that necessitate the need to consider legal and regulatory requirements when undertaking risk mitigation plan in a company. (3 marks) 30. State FOUR reasons of training employees on risk mitigation. (4 marks) 31. Outline THREE competencies that an effective Risk Manager should possess. (3 marks) 32. After analyzing business risk report it was found out that several areas posed as risks to the company. One of them was employee injury. As a member of risk management team give three recommendations that can mitigate this risk. (3 marks) 33. State TWO reasons why it is important to monitor and evaluate risk in risk management process. (2 marks) 34. Company Z has been having more assets which are not functioning for the last one year. The risk management team saw this one as a serious business risk. Highlight TWOreasons that could have led to this. (2 marks) 35.

INSTRUCTIONS TO CANDIDATES 1. This paper has three sections A, B and C. 2. You are provided with a separate answer booklet. 3. Marks for each question are as indicated. 4. Do not write on the question paper. This paper consists of 7 printed pages Candidates should check the question paper to ascertain that all pages are printed as indicated and that no questions are missing SECTION A (20 MARKS) Answer all questions in this section in the answer booklet provided. Each question carries one (1) mark. 1. The difference between assets and liabilities is known as _______________. A. Debtors B. Creditors C. Equity D. Profits 2. The following are financial statements of a business except _______________? A. Balance sheet B. Income statement C. Cash flow statement D. Cash book 3. Which one of the following is not a current liability? A. Bonds payable B. Accounts payable C. Accrued expenses D. Unearned revenue 4. Bad debts are treated as _________________ in accounting. A. Liabilities B. assets C. expenses D. capital 5. Capital allowances are a way of obtaining _______________ hence are very crucial in a business to enhance its profitability. A. Overdraft B. Tax relief C. Interest D. Equity 6. Which one of the following is not an inventory? A. Raw materials B. Work in progress C. Finished goods D. sales 7. Which of the following is an appropriate system for monitoring the location of assets of a business? A. Geographical positioning satellite (GPS) B. Enterprise resource planning (ERP) C. Material requirement planning (MRP) D. Manufacturing resource planning (MRPII) 8. _______________ are policies and procedures designed to prevent or detect accounting errors. A. Financial controls B. Budgeting C. Queuing D. Tendering 9. Which of the following is not included in the preparation of a balance sheet? A. Assets B. Capital C. Revenues D. liabilities 10. Equity is also known as________________________? A. Bank B. Cash C. Stock D. capital 11. Which of the following is not classified as assets? A. Equipment B. Inventory C. Debtors D. Creditors 12. Which of the following explains the meaning of ‘asset disposal value’? A. The remaining value an asset possesses B. Cost of disposing an asset C. Buying cost of disposable asset D. Transport cost of disposable asset 13. It is important to keep debtors as low as possible compared to turnover. What is turnover? A. stock B. Total sales C. Total purchases D. Total assets 14. The following are all current assets except _____________? A. Accounts receivable B. Inventory C. Prepaid expenses D. Bank overdraft 15. Organizations need to establish and maintain an effective system of internal controls of their assets. Which one of the following is not a principle of control activities? A. Establishment of responsibility B. Promotion of long serving employees. C. Segregation of duties. D. Physical controls. 16. ________________ is the most liquid asset among the following. A. Cash B. Bank C. Rent receivable D. Stock 17. Which of the following does not lead to depreciation of an asset? A. Normal wear and tear B. Expiration of legal right C. Increase in prices D. Obsolescence 18. Resource mobilization is a process that involves the following three integrated concepts except? A. Organizational management and development B. Communicating and prospecting C. Relationship building D. Preparing financial statements 19. Carriage inwards are treated as what in the income statement? A. Expenses B. Purchases C. Incomes D. liabilities 20. When is the appropriate time to do stocktaking in a business? A. End of an accounting period B. When business makes a loss C. At the beginning of the year D. Any time SECTION B (40 MARKS) Answer all the questions from this section 21. State FOUR importance of stocktaking in enhancing the performance of a business. (4marks) 22. Identify FOUR transactions of an organization that fall under inventory. (4 marks) 23. Depreciation refers to the decrease in value of non-current assets over time. State FIVE causes of depreciation. (5 marks) 24. Highlight FIVE purpose of formulating an assets and liabilities policy according to finance policy and procedure. (5 marks) 25. State FIVE types of assets than an organization can own. (5 marks) 26. Outline FIVE benefits that accrue an organization by maintaining asset register. (5 marks) 27. Highlight FOUR inventory transactions (4 marks) 28. Outline THREE components of an inventory (3 marks) 29. Highlight FIVE importance of debtor management (5 marks) SECTION C (40 MARKS) Answer Question 30 and any other one Question from this section. 30. a) A certain company was continually making losses to an extent of having difficulties to pay its workers. Explain SIX reasons why the company should embrace financial controls (12 marks) b) Explain FOUR importance of both financial and non-financial controls. (8 marks) 31. a) Internal controls have become a key business function for every company that wants to succeed. Explain FIVE importance of having internal controls. (10 marks) b) Discuss FIVE principles of asset management (10 marks) 32. a) Being an expert, you have been tasked by the company you work for to make a presentation to the concerned managers on how to prepare a balance sheet. Describe how it should be done making sure you focus on the important aspects (12 marks) b) Explain FOUR methods of recording changes in the balance sheet. (8 marks)

INSTRUCTIONS TO CANDIDATES   The paper consists of TWO sections: A and B. Answer ALL questions in sections A and B. Marks for each question are indicated in brackets. Do not write on this question paper. Write your answers in the answer booklet provided. Answer the questions in English.   This paper consists of FOUR (4) printed pages. Candidates should check the question paper to ascertain that all the pages are printed as indicated and that no questions are missing.   SECTION A: (10 MARKS) In this section, each question carries one mark. Attempt all questions in this section. Choose the correct answer and write it in the answer booklet provide Which one of the following is a type of an entrepreneur? A. Traders B. opportunists C. businessman D. skimmers Entrepreneurs have several roles to perform in an enterprise. Which one of these is a role? A. Financer B. Marketer C. Innovator D. All of above Below are the stages in the creativity process. Expect? A. Preparation B. Selection C. Evaluation D. Incubation Identify from the responses below an internal factor that motivates an individual to become an entrepreneur? A. Need for achievement B. Government policy C. Ready market D. Cost of living   5. Goods or services reach the market place through? A. Marketing channels B. Multi-levels C. Monopolies D. Multiplication   Which one of the following is a secret to grow your business? A. Tax evasion B. Increase the price C. Flexibility D. Being rigid   The following are steps to grow your customer base. expect? A. Offer discounts to customer B. Expend customers networking C. Encourage cash sales only D. Look for partnerships with other businesses   Growth of micro- small enterprises requires entrepreneurial competence. From the response below choose an entrepreneurial competence A. Workforce B. Employees C. Risk -taking D. Taxation Family businesses are always interested to handover their business to? A. Administration officer B. Professional managers C. Next generation D. Community The following are steps for starting a small business, except? A. Define your vision B. Write a simple action C. Define your workload D. Write an executive summary                                                     SECTION B: (40 MARKS)                         Attempt all questions in this section. List FOUR factors affecting entrepreneurial development.                       (4 Marks) State THREE qualities of an entrepreneur                                         (3 Marks) Highlight FOUR types of entrepreneurs        (4 Marks) State FOUR theories of entrepreneurship                                         (4 Marks) Outline FIVE ways to manage barriers to creativity and innovation (5 Marks) List THREE factors that promote an entrepreneurial culture                 (3 Marks) Highlight FOUR ways of generating business ideas. (4 Marks) State THREE methods of evaluating business opportunities.                 (3Marks) List THREE theories of motivation. (3 Marks) Highlight FOUR entreprenuerial competences.                    (4 Marks) List THREE components of an executive summary in a business plan     (3 Marks)