Farm Business Management and Extension June-July 2013 Past Question Paper

Farm Business Management and Extension June-July 2013 Past Question Paper – KNEC Diploma

This Past Paper examination was examined by the Kenya National Examination Council (KNEC) and it applies to the following courses

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Name………………………………………………………….Index No………………………………………………./……………
2425/303 Candidate’s signature……………………….
FARM BUSINESS MANAGEMENT AND EXTENSION
June/July 2013 Date…………………………………….
Time:3 hours

THE KENYA NATIONAL EXAMINATIONS COUNCIL

DIPLOMA IN AGRICULTURE

MODULE III

FARM BUSINESS MANAGEMENT AND EXTENSION

3 HOURS

INSTRUCTIONS TO CANDIDATES
Write your name and index number in the space provided above.
Sign and write the date of examination in the space provided above.
You should have the following for this examination
• Mathematical table
• Non –programmable calculator.
This paper consists of two sections A and B
Answer any THREE question from section A and any TWO question from section B in the space provided.
All questions carry equal marks.
Maximum marks for a question are as shown.

CANDIDATES SHOULD ANSWER THE QUESTION IN ENGLISH
This paper consists of 16 printed pages.
Candidates should check the question paper to ascertain that all the papers are printed as indicated and no questions are missing.

SECTION A
Answer any THREE questions from this section in the space provided.

1. (a) List the five private enterprise businesses. (5marks)
(b)Describe any eight disadvantages of a sole proprietorship. (8marks)
(c)Describe any seven advantages of partnership organizations. (7marks)

2. (a)Table 1 below shows the information that appeared in the books of Tegemeo farm for the year 31 st December 2010.

Table
Item—————–Amount(kshs)
Permanent buildings——600,000
Equipment—————-100,000
Tractor—————–500,000
Stock——————-500,000
Debtors(short)———-300,000
Cash in bank————80,000
Cash in hand————40,000
Long term loan———300,000
Creditor(short)——-40,000
Bank overdraft——–100,000
Cash debts———–10,000
Insurance——-100,000
Mortages——–300,000
Lorry———–100,000
Farmers own capital——–150,000
Short term loan 100,000
i. Using the information given prepare a balance sheet
ii. Determine the net capital owned.
iii. Calculate the percentage of the net worth.
iv. State whether the farm business is solvent or insolvent (15 marks)
(b) Highlight the measures that may be taken to adjust to agribusiness uncertainties. (5 marks)

3. (a) Describe the uses of single enterprises budget. (8 marks)
(b) Table II below shows a farmers information from his farm records.

Table II
———-Cofee——Tea
Total revenue 60,000——–80,000
Total cost 40,000——–60,000
Lobour 10,000————-20,000
Fertilizer 5,000——10,000
Weeding 10,000—–5,000
Other expenses 10,000——10,000

The farmer would like to replace his coffee with tea.
i. Prepare a partial budget for the farmer.
ii. F ind out whether the proposed change is worthwhile (12 marks)

4. (a) Describe the function of farm management. (10 marks)
(b)Explain any five factors considered in acquisition of agricultural credit (10 marks)

5. (a)Discuss the factors considered when making a farm plan (10 marks)
(b)Explain the purpose of keeping farm records (10 marks)

SECTION B
ANSWER ANY TWO QUESTIONS FROM THIS SECTION IN THE SPACE PROVIDED.

6. (A) Describe any three forms of programme evaluation. (6 marks)
(b) Explain factors considered in extension evaluation (14 marks)

7. (a) Differentiate between formal and informal reports (10 marks)
(b) Describe categories of audience that a reporter should consider when compiling a report. (10 marks)

8. (a)Using a sketch illustrate the planning phases of agricultural extension programme. (10marks)
(b) Explain the factors that may hinder data collection for programme planning. (10 marks)



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