This document contains instructions and questions for a Form Four Business Examination in Puntland, Somalia. It is divided into three parts. Part I contains 20 multiple choice questions worth 20 marks. Part II contains structured questions worth 80 marks, including matching, short answer, and fill-in-the-blank questions. Part III contains longer answer questions worth a total of 100 marks, requiring students to discuss topics like partnerships and complete transactions in T-accounts. Students are instructed to answer all questions and show their work in the spaces provided over 12 printed pages within the allotted 2 hours and 10 minutes.

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PUNTLAND STATE OF SOMALIA
MINISTRY OF EDUCATION
NATIONAL EXAMINATIONS BOARD
NAME OF THE STUDENT
NAME OF THE SCHOOL
ROLL NUMBER
FORM FOUR BUSINESS EXAMINATION MAY 2013
TIME 2:10 HOURS
TOTAL TIME: 2 hours 10 minutes beforethe exam for reading through the paper
INSTRUCTIONS TO CANDIDATES
This paper consists of 12 printed pages.
Count them now. Inform the invigilator if there are any missing.
PART ONE: (20Multiple choice questions): (20 marks)
PART TWO: (Structured questions): (80marks)
TOTAL (100 marks)
 Answer ALL questions in section 1 and 2.
 Answer three questions only in section 3.
 All answers must be written on this paper in the spaces provided immediately
after each question.
 Rough work can be done on page 2. This will not be marked
 No extra paper is allowed

2. 2
Part I: Multiple Choice Questions (20 marks)
Circle the Correct Answer
1- The processof planning, coordinating, and controllinga business
organization in order to achieve the sat objectives is known as:
a) Planning
b) Supervising
c) Management
d) Staffing
2- Change in demand iscaused by ____________ but change in quantity
demanded isthe resultof ____________
a) Price, other factors
b) Other factors, price
c) Tastes, preferenceand fashion, price
d) Governmentpolicies, price
3- When the absolute valueof price elasticity of demand of acommodity is
greater than one, then this commodity is
a) Relatively inelastic
b) Unitary elastic
c) Relatively elastic
d) Perfectly inelastic
4- The main parts of a two-sector closed economy are:
a) Household and banks
b) Household and government
c) Household and businessfirms
d) Household and other financial institutions
5- If total assets is 45, 700 So. Sh. and total liabilities is 28, 200 So. Sh. then
the total capital is:
a) 17,000 So. Sh.
b) 18,000 So. Sh.
c) 17,500 So. Sh.
d) 18,500 So. Sh.
6- An activity that involvesthe production, provision and saleof goods and
services with the aim of makingprofit is called::
a) Entrepreneurship
b) Private Limited Company
c) Manufacturingindustry
d) Business
7- When the demand curveshifts outward to the right, with the same
price, the quantity demanded of acommodity :
a) Remainsthe same
b) Decreases
c) Increases
d) Changes

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8- The sum of money payable to the insured by the insured in return for
insurancecover is called:
a) Premium
b) Money
c) Granted
d) Sum insured
9- The documentthat lays down the rulesand regulations for the internal
organization of the company is:
a) Memorandumof Association
b) Articles of Association
c) Prospectus
d) Certificate of Trading
10-The processof identifyingbusinessopportunitiesand turningthem
into a successfulbusiness unitis called:
a) Public Company
b) Entrepreneurship
c) Business
d) Certificate of Incorporation
11-Public Limited Companiesmusthavea minimum of _________ members
but there is _________ maximum number.
a) Five, no
b) Five, twenty
c) Seven, no
d) Eight, no
12- Transfer of ownership and controlof an enterprise through the
sale of assets from publicto the privatesector is:
a) Registration
b) Amalgamation
c) Privatization
d) Nationalization
13-IMFstands for:
a) InternationalMoney Funding
b) InternalMonetary Fund
c) InternalMonetary Funding
d) InternationalMonetary Fund
14-The money valueof the goodsand services produced in a country in a
given year is known as:
a) National wealth
b) National income
c) National capital
d) National budget

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15-The higher the fertility rate, the __________ will the_________ rate
a) Higher, birth
b) Less, birth
c) Less, mortality rate
d) More, immigration
16-Which one of the followingis likely to shift demand curveinwardsto
the left:
a) Increase in income
b) Fall in price
c) Fall in taste and
preference
d) Well distribution of wealth
17-The levyingof compulsory financialcontribution by the governmenton
income, property, profitsand pricesof goods and services is:
a) Gift
b) Tax
c) Charity
d) Income
18-One of the followingis not the functionsof money:
a) Medium of exchange
b) Wealth storage
c) Decoration
d) Measureof value or unit of
account
19-Supposephoneworkersreceive substantial wage increase, other things
being equal, the price of phones will increase because of:
a) An increase in the demand for phones
b) A left shift of the supply curvefor phones
c) A right shift of the supply curvefor phones
d) A reduction in the demand for phones
20-The process of identifying, classifying, arranging and storing
documents so that they can be easily accessed and obtained when
needed is called:
a) Storing
b) Filling
c) Documenting
d) Managing

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Part II: STRUCTUREDQUESTIONS (80marks)
A) Match the wordin column A with its meaning in column B (10
marks)
ColumnA ColumnB
1 Parastatal A ‫واألصول‬ ‫المبادئ‬ ‫مجموعة‬‫االقتصادية‬‫تحكم‬ ‫التي‬‫اقتصاد‬ ‫نشاط‬‫لل‬‫دولة‬
‫اإلسالمية‬‫نصوص‬ ‫في‬ ‫وردت‬ ‫التي‬‫القرآن‬‫النبوية‬ ‫والسنة‬‫ي‬ ‫والتي‬ ،‫مكن‬
‫وا‬ ‫الزمان‬ ‫ظروف‬ ‫مع‬ ‫يتالءم‬ ‫بما‬ ‫تطبيقها‬.‫لمكان‬
2 Prospectus B The summary of alltransactions that take place
between the residentsof a country and the rest of
world duringagiven period of time
3 Bank
overdraft
C All other things are equal
4 Public
finance
D An organization purely owned by the government
5 Publicity E A buildingwhere goodsare received and stored
before dispatching
6 ‫االقتصاد‬
‫اإلسالمي‬
F Occurs when the bank allows the customer to
withdraw moremoney than the customer has in his
or her account with the bank.
7 Balance of
payment
G The amountof money required by the governmentto
carry out its programmesfor economicdevelopment.
It also referred as governmentrevenue.
8 Creditnote H A documentthat advertises and invites the company
the publicto subscribe to shares of the company
9 Ceteris
Paribus
I An indirect form of a non-personalselling aimed at
creating awareness of a product.
10 Warehousing J Documentsentto the buyer by the seller informing
the buyer of a reduction in the amountquoted in an
invoice sent to the buyer earlier

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B) Short Questions
Question 1: State four functionsof management (4 marks)
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Question 2: State four differencesbetween goodsand service (4 marks)
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Question 3: State four waysin which a businessmay benefit the people
in the community whichis located ( 4 marks)
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Question 4: Differentiatebetween the law of demand and thelaw of
supply (2 marks)
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Question 5: Explain briefly two functionsof a central bank (2 marks)
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Question 6: Explain the three formsof economic resources (3 marks)
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Question 7: Fill the cells of the followingtable with word: increase or
decrease (6 marks)
AccountType Debit Credit
Assets
Drawings
Liabilities
Expenses
Capital

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Question 8: Highlight four principlesof insurance (4
marks)
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Question 9: From the followingsupply schedule, draw asupply curve
and namethe axes.
(3 marks)
Price per unit (So. Sh.) Quantity Supplied
60 30
50 25
40 20
30 15
20 10
10 5
Question 10 Fill the blank spaces of the followingWaberi Tradersas at
31st January 2013(6 marks)

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Question 11: Whats an opportunity cost? And give oneexample of it(3
marks)
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Question 12: Differentiate between demand pullinflation and cost push
inflation (2 marks)
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Question 13: Whatare the disadvantagesof personalselling? (2 marks)
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C) Long Questions
Question 1: Discussthe four advantagesand three disadvantagesof a
partnership business(7 marks)
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Question 2: Record the followingbusinesstransactions in T accounts and
preparea trial balance (8 marks)
a) Shukri invested 80,000So. Sh. in a new business, Ladan Traders, in
January 8, 2012
b) Purchased suppliesfor cash, 9,000 So. Sh.
c) Paid rent for the month, 400 So. Sh.
d) Purchased equipmenton credit, 5,300 So. Sh.
e) Sold goodsand received cash, 12,000 So. Sh.
f) Sold goodson credit, 34,000So. Sh.
g) Broughta big table worth 4,800 So. Sh. from her house to the business
h) Paid for advertisingin local newspaper, 1,000So. Sh.
i) Paid electric and gas bills 2,500 So. Sh.
j) Paid salary of assistant 15,000 So. Sh.

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Question 3: The table below shows the demand and supply schedulesfor a
particular commodity (10 marks)
Price
(So. Sh.)
Quantity
demanded per
week
Quantity
supplied
per week
10 20 80
9 25 70
8 30 60
7 35 50
6 40 40
5 45 30
4 50 20
a) Plot the supply and demand curves (2 marks)
b) Find the pointof intersection of the curves(1 marks)
c) What is the equilibrium price? (1 marks)
d) What is the equilibrium quantity demanded and supplied? (1marks)
e) What is the total revenueat the equilibrium price? (1 marks)
f) Assumingsupply reducesin half at all prices, with the demand
remainingunchanged, plotthe new supply curve(2 marks)
g) What is the new equilibrium price? (1 marks)
h) What is the quantity demanded and supplied atthis price?(1 marks)

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