KCSE Business Studies Paper 2 – 2014 EKSIKA Joint Evaluation Test
2014 EKSIKA Joint Evaluation Test
Business Studies Paper 2
Answer any five questions
1.
(a) Using a table explain five differences between cooperatives and companies. (10mks)
(b) High dependency ratio on the few employed is a problem affecting most countries in the world. Explain five measures that each country can use to solve the problem.(10mks)
20 marks
2.
(a) Explain five factors that can lead to a monopoly market structure. (10mks)
(b) Explain five ways how the manufacturers enhance consumer protection. (10mks)
20 marks
3.
(a) Explain the measures the central bank can use to regulate money supply. (10mks)
(b) The government of Kenya has found it beneficial to reduce its participation in business activities. Explain five benefits of this . (10mks)
20 marks
4.
(a) The trial balance below was extracted from books of Dosho stores on 30th April,2009
Additional information;
Stock on 30th April, 2009 was valued at Ksh. 6500.
Required; Prepare, a trading profit and loss account for the year ended
30th April, 2009. (12mks)
(b) Explain four differences between general property insurance and life insurance. (8mks)
20 marks
5.
(a) Explain five merits of direct tax. (10mks)
(b) Explain five ways how division of labour and specialization enhances business performance. (10mks)
20 marks
6.
(a) The following transactions relate to Makindu bookshop for the month of April 2008
April 1.Makindu bookshop had cash in hand of Ksh. 15,000 and cash at bank Ksh. 40,000.
2. Abdul settled his debt of Ksh.10,000 less 20% discount.
9. Makindu paid house rent of Ksh. 4,000 by cash.
12.Cash sales of Ksh. 14,000
14. Brought into the business a personal computer worth Ksh. 20,000
17. Purchased furniture worth Ksh. 3,000 by cheque
18. Withdrew Ksh. 2,000 from bank for business use.
19. Settled Asenath’s debt of Ksh. 4,000 by cheque after being allowed 5% cash discount
20. Received Ksh. 6,000 cash from Njeri, a debtor.
21. Kambu paid Ksh. 4,000 by cheque after being allowed a discount of 20%
25. Deposited Ksh. 1,700 in the bank from Private sources.
26. Paid Ksh. 4000 to Ali and Ksh. 3000 to Amos after receiving a cash discount of 2%
and 3% respectively.
30. Banked all the cash except Ksh.1000.
Required: Prepare a three column cash book duly balanced for the month of April 2008.
(b) Explain any four business macro- environment factors showing how factor affects business operations. (8mks)
