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Business Studies Question Paper
Business Studies
Course:
Institution:
Form 4 question papers
Exam Year:
2015
Sample KCSE Business Studies
Paper 2
Time 2Hrs 30Min
Answer any five questions
1.(a)Explain any five benefits of a warehouse to a business.(10marks)
(b)Explain any five benefits that a firm gets when it expands its scale of production from small scale to large scale.(10marks)
2.(a)Outline five differences between a public limited company and a partnership form of business.(10marks)
(b)Highlight five reasons why the government of Kenya has found it necessary to reduce its participation in commercial activities.(10marks)
3(a)Newspapers have become commonly used as a medium of advertisement.Explain five advantages of advertising a product in daily newspaper to a producer.(10marks)
(b)Explain five principles of insuarance.(10marks)
4.(b)Kimbo Traders commenced a business on 1st Jan. 2010 with Ksh.300,000 cash in bank.During the first week ended 8th Jan.2010 the following transactioms took place.
2nd Jan.-Withdrew sh.80,000 cash from bank for office use.
3rd Jan.-Bought stock of goods on credit shs.43,000 from Njeri Traders.
4th Jan.-Sold stock of goods on credit shs.33,000 to James Traders.
5th Jan.-Withdrew shs.8,000 cash from bank for personal use.
6th Jan.-Purchased furniture and fittings worth shs.10,000 by cheque.
7th Jan.-Paid for the goods purchased on credit from Njeri Traders shs.10,000 in cash.
Required
Open all relevant accounts and record the above transactions(10marks)
(b)Highlight five features undertaken by the government of Kenya to create an enabling environment to business people in the country.(10marks)
5.(a)On 1st March 2014 Bidii Traders had cash in hand Ksh.10,000 and cash at bank Ksh.15,000.The following transactions took place during the month.
March 2-Bought goods in cash sh.1500
March 4-Paid salaries in cash sh.7,500
March 5-Received cheques from the following debtors after allowing 2% discount in each case.
Sitiensi sh.980 ,Chumo sh.1,960
March 8-Paid the following accounts by cheque in each case deducting a 5% discount :Kipruto sh.3,000 ,Kemboi sh.1200
March12-Bought machinery by cheque sh.5,000
March 20-Withdrew cash sh.1,000 for personal use
March 25-Cash sales sh.2,000
March 26-Banked cash amounting to sh.1000
Mach 27-Cash sales of sh.3,000
Required
Prepare a three column cash book duly balanced.(10marks)
(b)Expain five problems associated with the measurement of National Income using the output approach.(10marks)
6 (a)Highlight five benefits of effective communication to a firm.(10marks)
(b)Highlight five importance of entrepreneurship to the economy of a country.(10marks)
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