KNEC KCSE Business Studies Paper 2 Question Paper / 2016 KCSE KAMDARA JET Examination

(a) Explain five factors that may contribute to low level of National
Income. (10 mks)
(b) Explain five reasons for trade restriction (10 mks)

(a) Explain five advantages that may be associated with operating a tied
shop. (10 mks)
(b) Explain five challenges of a young population. (10 mks)

(a) Explain five circumstances under which a pro-forma invoice may be
used (10 mks)
(b) Kisii Traders had the following balances as at 31st December 2014.

Prepare:
(i) Profit and loss account for the year ended 31st December 2014.
(ii) Balance sheet as at 31st/12/2014. (10 Marks)

(a) Explain five reasons that may make an insurance company refuse to
compensate the insured in the event that a risk occurs. (10Marks)
(b)Explain five circumstances under which a manufacturer would sell his
goods directly to a consumer. (10 Marks)

(a) Explain five differences between direct tax and indirect tax. (10 Marks)
(b) Explain five ways in which advertising agencies assist in sales promotion. (10Marks)

(a)The use of motor cycle transport is becoming very popular in both rural and urban areas of Kenya. Explain the limitations a business that relies
on its use is likely to encounter. (10Marks)
(b) The following information relates to Malindi Traders for the year ended
31st December 2015.

Calculate:
(i) Working capital (2 mks)
(ii) Current ratio (2 mks)
(iii) Mark-up percentage (2 mks)
(iv) Rate of stock turnover (2 mks)
(v) Return on capital (2 mks)