KNEC KCSE Business Studies Paper 2 Question Paper / 2016 Pre KCSE

(a) Discuss five main features of a good money material (10mks)
(b) Explain five roles of the Nairobi stock exchange to the Kenyan economy (10mks)

(a) Explain five importance of a business plan to an upcoming entrepreneur (10mks)
(b) Highlight five benefits that Kenya can get by engaging in international trade (10mks)

(a) Discuss five limitations of using National income statistics to measure standards of living
in your country (10mks)
(b) With appropriate diagram explain excess supply and excess demand (10mks)

(a)Discuss five causes of unemployment in Kenya (10mks)
(b) Explain five mailing services that facilitate communication (10mks)

(a) A petty cashier of Boflos Traders operate a petty cashbook on an interest of Sh.5000. on 1st June
2013, he had cash in hand of Sh.300 and was reimbursed the difference by the main cashier to restore his cash float. The following payment s were made during the month of June;2013
June 1. Sugar for the staff tea sh.360
June 2. Telephone Ksh.510
June 3. Stamps Shs.500
June 5.Correcting fluid Ksh.400
June 10.Travelling Ksh.220
June 15. Postage Ksh.200
June 16. Entertainment Ksh.260
June 18 Fare Ksh.400
June 20 Bread for staff tea Ksh.296
June 26 Onyonka a creditor was paid Sh,1000
June Entertainment Ksh.200
Required:
Prepare Boflos Traders petty cash book with analysis columns of :staff tea, postage, stationery, travel and Miscelleneous (10mks)
(b) Describe the procedure of obtaining an insurance policy (10mks)

(a) The following balances were extracted form the books of Mwamoturi General stores on 31^st
December 2012

Required
(i) Prepare a trading, profit and loss account for the year ended 31st December 2012. (6mks)
(ii) Calculate
Mark up ( 1 ½ mks)
Current ratio ( 1 ½ mks)
Rate of stock turn over (1 ½ mks)
Rate of return on capital ( 1 ½ mks)
(b) Discuss four reasons why a government may impose taxes on commodities (8mks)