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| 1. |
Distinguish between any four of the following:-
| (a) | Savings and Investment; |
| (b) | Cyclical Unemployment and Technological Unemployment; |
| (c) | Direct tax and Indirect Tax; |
| (d) | Perfect Competition and Imperfect Competition; |
| (e) | Liquidity and Profitability. |
|
5x4=20 |
| 2. |
Distinguish between GDP and GNP. Discuss briefly the various methods of measuring national income of a country. |
5+10=15 |
| 3. |
Why do people prefer to hold cash balance? Discuss the liquidity preference theory of interest. |
5+10=15 |
| 4. |
Discuss briefly the principal functions and activities of the Asian Development Bank. |
15 |
| 5. |
Discuss the steps involved in the process of capital formation. |
15 |
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| Section II (50 marks) |
| Answer Question No. 6 which is compulsory and any two from the rest. |
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| 6. |
Answer any four of the following:
| (a) | State whether the following can become members of a public company limited by shares:- |
| | (i) A foreign resident, and | (ii) A partnership firm. |
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| (b) | What are public utility services? |
| (c) | What is a 'bank transfer'? When is it used? |
| (d) | What is 'statutory meeting'? When is it held? |
| (e) | What is a 'call of shares'? What is the consequence that may follow if calls on shares are not paid? |
|
5x4=20 |
| 7. |
Distinguish between:-
| (a) | Shares and Debentures; |
| (b) | Bulls and Bears. |
|
5x4=20 |
| 8. |
(a) |
Discuss the steps involved in the process of communication. |
8 |
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(b) |
Under what circumstances a company needs to pass a special resolution? |
7 |
| 9. |
State briefly the main functions and services of a stock exchange. |
15 |
| 10. |
What is business environment? How does it affect business? Explain giving examples. |
15 |
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