Section “A”

Circle the letter corresponding to the correct answer.

1. In consumers’ cooperative society, profits are shared according to each
member’s………
A. Role in a society
B. Initial contribution to the society
C. Number of shares held
D. Purchases from the society

2. If an increase in the price of a commodity leads to a rise in the demand for

another commodity, the two goods are said to be …………….
A. Substitute goods
B. Complimentary goods
C. Producer goods
D. Consumer goods

3. Which one of the following best explains why government establishes state
enterprises?..
A. Reduce exploitation of the consumers
B. Minimize competition
C. Generate competition
D. Provide unprofitable but desirable service

4. A trader from Bor Trading centre purchased goods worth SSP 550,000. If he
was allowed 5% cash discount and 15% trade discount, how much will the
trader finally pay to the seller?
A. SSP 440,000
B. SSP 467,500
C. SSP 522,500
D. SSP 444, 125
5. The following factors determine the size of a firm except……………..
A. The input factors of production
B. Volume of goods and services produced
C. Value of goods and services produced
D. The floor area occupied

6. The activity aimed at getting goods within the access of consumers is known as
A. Commercial activities
B. Production activities
C. Trade activities
D. Foreign activities

7. The type of warehouse used in the storage of dutiable goods is known as…
A. Producer warehouse
B. Public warehouse
C. Private warehouse
D. Bonded warehouse

8. Land and capital are the two factors of production. Which one of the following
provides the third factor?
A. Premises
B. Staff
C. Building
D. Machinery

9. Which one of the following is the most effective mode of communication in

South Sudan?
A. Face to face
B. Telephone
C. Paging
D. Public speaking
10. Which one of the following media would be most suitable to advertise a cheap
commodity which is for general consumption in South Sudan?
A. Television
B. News papers
C. Radio
D. Posters

11. The ratio of the cost of goods sold in a trading period to the cost of the average
stock held during that period is known as ……….
A. Working capital
B. Rate of turn over
C. Gross profit margin
D. Returns on capital employed

12. The principles of insurance violated when the insured over values his/her
property is………….
A. Subrogation
B. Insurable interest
C. Utmost good faith
D. Proximate cause

13. A tax imposed on goods according to the value of the commodity is known as .
A. Advalorem tax
B. Specific tax
C. Value added tax
D. Sumptuary tax

14. The following services are rendered by the commercial bank except……..
A. Giving loans to clients
B. Accepting deposits for custody
 C. Opening letters of credit to intending importers
D. Replacing old bank notes in circulation

15. Given mark up of 40% and the cost of goods SSP 2,800,000. Calculate the
gross profit of the firm.
A. SSP 1,120,000
B. SSP 1,680,000
C. SSP 3,920,000
D. SSP 800,000

16. Which one of the following is an example of direct tax?

A. Octori tax
B. Graduated tax
C. Social Security tax
D. Sales tax

17. Dumping is…………………………………………………….

A. The buying of goods from abroad at very high prices
B. A disposal of goods that have gone bad or expired
C. The selling of goods to markets abroad at a very low price
D. An extra discount given for bulk buying in foreign trade

18. The excess of selling price over cost price is known as ……….
A. Net profit
B. Gross profit
C. Net loss
D. Gross loss

19. The following are benefits of a sole proprietorship except……

A. High level of flexibility
B. Quick decision making
 C. Enjoyment of limited liability
D. Enjoyment of all profits

20. The insurance principle which requires the insured to surrender the scrap after
full compensation has been made is ……………..
A. Indemnity
B. Utmost good faith
C. Insurable interest
D. Subrogation
SECTION B (80 Marks)
Answer Four questions attempting (Q21) and any other three question from this
section.

Q21 (a). Distinguish between balance sheet and income statement (2mks)
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(b). Study the balance sheet below and answer the questions that follows.
Balance Sheet
Liabilities (SSP) Assets (SSP)
Capital 204,000 Fixtures & Fittings 75,000
Debenture 25,000 Motor van 80,000
Bank loan 75,000 Plant & machinery 95,000
Drawings 10,500 Stock 30,000
Creditors 45,000 Debtors 55,000
Profit for the year 20,500 Prepaid rent 25,000
Bank overdraft 25,000 Bank 45,000
405,000 405,000

You are also provided with the following information.

 Purchases for the year SSP 90,000
 Opening stock was valued at SSP 28,000
 Returns outwards is 10% of total purchase
Calculate;-
i. Net purchases (3mks)

ii. Cost of sales (3mks)

iii. Equity capital (3mks)

iv. Rate of stock turn (3mks)

 v. Working capital employed (3mks)

vi. Capital employed (3mks)

Q22. (a) Define the term chain of distribution (2mks)

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(b). with an aid of a diagram, explain the channels of distribution of goods (18mks)
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Q23. (a) Define the term division of labour (2mks)

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(b). Give and explain any five benefits a teacher may get due to having only one
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(c). What are the four shortcomings a teacher may face due to having only one
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Q24. (a). Distinguish between public warehouse and bonded warehouse (4mks)
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(b) Explain the following forms of warehouse

i. Private warehouse (2mks)
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ii. Excise warehouse (2mks)
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(c). Explain any six reasons why a producer needs a warehouse (12 mks)
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Q25. (a) Define the term partnership deeds (2mks)
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(b) Give any six items found on the partnership deed (6mks)
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(c). Give and explain any six advantages of operating a partnership form of business
over sole proprietorship (12mks)
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Q26 (a). (i) Differentiate between
(i). Endowment policy and insurable interest (2mks)
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(ii). Re-insurance and over insurance (2mks)
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(b) Give and explain any five importance of insurance to the business community in
South Sudan (10mks)
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(c). Explain any three principles of insurance (6mks)
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Q27.(a). Differentiate between Privatization and Nationalization (4mks)
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(b). Give and explain any
(i). Four merits of nationalization (8mks)
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(ii). Four demerits of nationalization (8mks)
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Q28. a). Differentiate between advertising appeal and advertising media (4mks)
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(b). Give and explain any four factors considered when choosing advertising media
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(c). Point out any four challenges faced by advertising companies in South Sudan
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The End.