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Trans Nzoia West Districtbusiness Studies Paper 2 Question Paper
Trans Nzoia West Districtbusiness Studies Paper 2
Course:Secondary Level
Institution: Mock question papers
Exam Year:2008
1
565/2
BUSINESS STUDIES
Paper 2
July / August 2008
2 ½ hours
TRANS-NZOIA WEST DISTRICT MOCK EXAMINATION - 2008
Kenya Certificate of Secondary Education (K.C.S.E)
565/2
BUSINESS STUDIES
Paper 2
July / August 2008
2 ½ hours
INSTRUCTIONS TO CANDIDATES:
Answer any FIVE questions.
Write your answers in the answer sheet provided
?All questions carry equal marks
This paper consists of 4 printed pages
Candidates should check the question paper to ensure that all the printed pages are printed as indicated and no
questions are missing.
1. a) Discuss six possible effects of inflation in an economy. (12mks)
b) Setting of objectives is very important in management. Highlight four characteristics of
good objectives. (8mks)
2. a) Njoroge as a teacher, wants students to understand his subject much better. Outline five
reasons that would encourage him to employ non-verbal communication when communicating.
(10mks)
b) The following information relates to international trade transactions of a particular country
for the year 2000.
Transaction K£m
Commodity exports 200
Earnings from tourism 10
International debt payment 15
Profits repatriated abroad 40
Commodity imports 250
Services provided by foreigners 10
Loans and grants received 80
Finance from IMF reserves 25
Enter the above transactions in appropriate columns of balance of payment accounts and
interpret your accounts.. (10mks)
3. a) Explain five reasons why Kenyans find it hard to purchase houses through building
societies. (10mks)
b) Outline five shortcomings of using indirect taxes as a means of raising government revenue.
(10mks)
4. a) Currently the government of Kenya is involved in selling its shares in public corporations.
Explain five reasons that could make the government retain some of the corporations.
(10mks)
b) Explain five assumptions of monopolistic competition. (10mks)
5. a) Outline five reasons for the move by the ministry of local government, in the recently,
controlling passenger service vehicle, in Nairobi city. (10mks)
b) Explain five new trends in office managements. (10mks)
3
6. a) Describe four factors that should be considered when drawing up a development plan for a
developing country. (8mks)
b) The following balances were obtained from the books of Wafula Traders on 31st December,
2005.
Shs
Opening stock 60,000
Equipment 96,300
Purchases 161,000
Sales 208,000
Land and building 100,000
Discount received 7,500
Return outwards 25,000
Return inwards 27,000
Salaries 22,000
Telephone charges 5,000
Water bills 2,100
Creditors 15,000
Debtors 21,000
Electricity bill 2,000
Bank balances 68,000
Cash in hand 12,000
Drawings 19,500
Insurance paid 1,500
Additional information
(i) Closing stock was valued at shs. 72,000
(ii) Depreciation on equipment is 10% p.a. on cost
(iii) Telephone charges prepaid shs. 1,100
(iv) Outstanding water bill shs. 1,300
(v) Carriage inwards shs. 11,000 carriage outwards shs. 10,000
Required
Prepare Wafula Traders profit and loss account for the year ended 31st December, 2005.
(12mks)
4
END
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