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    FA3QJ15

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    FA3QJ15

    Uploaded by

    isaacmagoya9
    5 views4 pages

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    5 views4 pages

    FA3QJ15

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    isaacmagoya9

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    You are on page 1of 4

    EXAMINATION NO.

    ______________________

    2015 EXAMINATIONS

    CERTIFICATE IN FINANCIAL ACCOUNTING PROGRAMME

    PAPER FA 3 : BUSINESS KNOWLEDGE

    THURSDAY 4 JUNE 2015 TIME ALLOWED: 3 HOURS


    2.00 PM - 5.00 PM

    INSTRUCTIONS: -

    1. You are allowed 15 minutes reading time before the examination begins during
    which you should read the question paper and, if you wish, make annotations on the
    question paper. However, you are not allowed, under any circumstances, to open
    the answer book and start writing or use your calculator during this reading time.

    2. Number of questions on paper - 7.

    3. This paper is divided into two Sections: A and B.

    Answer TWO questions ONLY from Section A.


    Answer THREE questions ONLY from Section B.

    4. Each question carries 20 marks.

    5. Begin each answer on a fresh page.

    6. Support your answers by underlining authorities quoted, citing statutes and/or


    cases where appropriate.

    7. This paper must not be removed from the examination hall.

    8. DO NOT OPEN THIS PAPER UNTIL YOU ARE INSTRUCTED BY THE


    INVIGILATOR.

    This question paper contains 3 pages


    1

    SECTION A

    Ans wer TWO questions ONLY from this Section

    1. (a) What type of utility involves a combination of different forms of utility? 2 Marks

    (b) Mention a statutory corporation in Malawi that is involved in the creation of


    utility of:

    (i) Form 2 Marks


    (ii) Time 2 Marks

    (c) Which government ministry coordinates businesses involved in the creation of


    utility of place? 2 Marks

    (d) Mention three types of direct services and their corresponding public or private
    institution that provides each service. 6 Marks

    (e) State three reasons why most large scale retailers prefer to operate on
    self-service basis. 6 Marks
    (TOTAL : 20 MARKS)

    2. (a) Mention any four types of wholesaling. 8 Marks

    (b) Why is it not possible for a country to produce all that it requires? Give four
    reasons. 8 Marks

    (c) State two roles of transport in commerce. 4 Marks


    (TOTAL : 20 MARKS)

    3. (a) How does an exporter get paid through ‘open account transactions’? 2 Marks

    (b) What is warehousing? 2 Marks

    (c) Mention any one type of warehouse. 2 Marks

    (d) Explain how a partner may enjoy the following benefits in a partnership business:

    (i) Specialization 2 Marks


    (ii) Personal contact 2 Marks
    (iii) Consultation 2 Marks
    (iv) Shared strain 2 Marks

    Continued/……
    2

    (e) Mention one advantage and one disadvantage of a sole proprietorship’s lack of
    legal separation from the owner. 4 Marks

    (f) How is ‘indispensability’ of the owner in sole proprietorship a disadvantage?


    2 Marks
    (TOTAL : 20 MARKS)

    SECTION B

    Ans wer THREE questions ONLY from this Section

    4. (a) List three types of financial institutions whose operations are overseen by the
    Reserve Bank of Malawi. 6 Marks

    (b) How do banks provide the following services to their customers:

    (i) Investment advice, 2 Marks


    (ii) Bankers reference? 2 Marks

    (c) What is a bearer cheque? 2 Marks

    (d) Mention any four major sources of Malawi law which is received law. 8 Marks
    (TOTAL : 20 MARKS)

    5. (a) What is law? 2 Marks

    (b) Mention any one party in a criminal trial. 2 Marks

    (c) Differentiate a sale of goods from barter. 4 Marks

    (d) List three parties in a hire purchase agreement. 6 Marks

    (e) Mention three basic features of a hire purchase agreement. 6 Marks


    (TOTAL : 20 MARKS)

    Continued/……
    3

    6. (a) Mrs Phebe, while waiting for a minibus, hears Bob, a young man, shouting
    “Kagwambuna! K200! Cheap!’ She then takes a look at the product, and puts it
    in her bag. Jean, the owner, asks Mrs Phebe to pay K200, and Mrs Phebe submits
    K500.

    Required:

    Identify the existence of three elements of a contract of sale of goods in the


    scenario to determine whether or not a contract exists between Mrs Phebe and
    Jean, the owner of the product. 6 Marks

    (b) When is an invitation to treat made at a:

    (i) Roadside trader’s place, 2 Marks


    (ii) Mobile shop? 2 Marks

    (c) How is a hire purchase agreement terminated by performance? 2 Marks

    (d) What is an endorsement of a bill of exchange? 2 Marks

    (e) Mention three requirements of a valid endorsement. 6 Marks


    (TOTAL : 20 MARKS)

    7. (a) A relationship between principal and agent may be created by ratification.

    Required:

    Mention three conditions which must be satisfied to create such an agency.


    6 Marks

    (b) List any two sources of authority of an agent. 4 Marks

    (c) Define the following terms as used in contracts:

    (i) Offer 2 Marks


    (ii) Acceptance 2 Marks
    (iii) Counter-offer 2 Marks
    (iv) Executory consideration 2 Marks

    (d) When is an offer said to have been rejected? 2 Marks


    (TOTAL : 20 MARKS)

    END

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