Calculate the margin and rate of stock turnover for Bizna Distributor Company using the provided financial data.

$$\text{Margin} = 0.25 \times 100\% = 25\%$$

The margin is $\boxed{\text{25\%}}$.

ii) Rate of stock turnover

The formula for the rate of stock turnover is:

$$\text{Rate of stock turnover} = \frac{\text{Cost of Goods Sold}}{\text{Average Stock}}$$

First, calculate the Cost of Goods Sold (COGS):

$$\text{COGS} = \text{Opening Stock} + \text{Purchases} - \text{Closing Stock}$$

Given:
Opening stock = Shs 285,000
Purchases = Shs 1,830,000
Closing stock = Shs 315,000

$$\text{COGS} = 285,000 + 1,830,000 - 315,000 = 1,800,000 \text{ Shs}$$

Next, calculate the Average Stock:

$$\text{Average Stock} = \frac{\text{Opening Stock} + \text{Closing Stock}}{2}$$

$$\text{Rate of stock turnover} = \frac{1,800,000}{300,000} = 6 \text{ times}$$

The rate of stock turnover is $\boxed{\text{6 times}}$.

iii) Return on capital employed

The formula for Return on Capital Employed (ROCE) is:

$$\text{ROCE} = \frac{\text{Net Profit}}{\text{Capital Employed}} \times 100\%$$

First, calculate Net Profit.

$$\text{Net Profit} = \text{Gross Profit} - \text{Expenses}$$

Given:
Gross profit = Shs 600,000
Expenses = Shs 360,000

$$\text{Net Profit} = 600,000 - 360,000 = 240,000 \text{ Shs}$$

Next, calculate Capital Employed.

$$\text{Capital Employed} = \text{Fixed Assets} + \text{Working Capital}$$

Where Working Capital = Current Assets - Current Liabilities.

Current Assets include:
Debtors = Shs 900,000
Bank = Shs 35,000
Closing stock = Shs 315,000

$$\text{Current Assets} = 900,000 + 35,000 + 315,000 = 1,250,000 \text{ Shs}$$

Given:
Current liabilities = Shs 438,000

$$\text{Working Capital} = 1,250,000 - 438,000 = 812,000 \text{ Shs}$$

Given:
Fixed assets = Shs 400,000

$$\text{ROCE} = \frac{240,000}{1,212,000} \times 100\%$$ $$\text{ROCE} \approx 0.1980198 \times 100\% \approx 19.80\%$$

The return on capital employed is $\boxed{\text{19.80\%}}$.

iv) Current ratio

The formula for Current Ratio is:

$$\text{Current Ratio} = \frac{\text{Current Assets}}{\text{Current Liabilities}}$$

From previous calculations:
Current Assets = Shs 1,250,000
Current liabilities = Shs 438,000

$$\text{Current Ratio} \approx 2.85:1$$

The current ratio is $\boxed{\text{2.85:1}}$.

b) Explain five ways in which the Entrepreneur contributes to the production of goods.

• An entrepreneur initiates and organizes the factors of production (land, labor, capital) to start a business.
• They bear the risks associated with the business, such as potential losses or failure.
• Entrepreneurs innovate by introducing new products, services, or production methods.
• They make key decisions regarding resource allocation, production processes, and marketing strategies.
• Entrepreneurs create employment opportunities by establishing and expanding businesses, which contributes to economic growth.

a) Describe five means of payment that a trader may use to settle business debts.

• Cash: Physical currency (notes and coins) used for immediate payment.
• Cheque: A written order to a bank to pay a stated sum of money from the drawer's account to the payee.
• Bank transfer (EFT/RTGS): Electronic movement of funds from one bank account to another.
• Debit/Credit card: Plastic cards linked to a bank account or credit line, allowing electronic payments at point-of-sale terminals or online.
• Mobile money: Payment services operated via mobile phones, allowing users to send and receive money, pay bills, and make purchases.

b) Explain five indicators of under development in Kenya.

• Low per capita income: A low average income per person indicates limited economic productivity and widespread poverty.
• High levels of poverty: A significant portion of the population living below the poverty line, struggling to meet basic needs like food, shelter, and healthcare.
• High unemployment rates: A large number of people who are willing and able to work but cannot find jobs, leading to underutilization of human resources.
• Reliance on primary sector: A heavy dependence on agriculture and raw material extraction, with limited industrialization and value addition.
• Poor infrastructure: Inadequate development of essential facilities like roads, electricity, water supply, and communication networks, hindering economic activity and quality of life.