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Business Studies Paper 2 Question Paper

Business Studies Paper 2

Course:Secondary Level

Exam Year:2009

BUSINESS STUDIES
Paper 2
2½ hours

KANSBAG PROJECTIONS FORM FOUR TERM 1 EXAMINATION 2009
Kenya Certificate of Secondary Education
BUSINESS STUDIES
Paper 2
2½ hours

Instructions
- Answer any five questions.
- Write your answers in the answer booklet provided.
- All questions carry equal marks.

1. (a). Explain five factors that have led to survival of small scale retailers despite stiff competition from large scale business enterprises (10marks)
(b). Explain five ways in which an efficient transport system can promote trade in a country (10marks)

2. (a). Mambo is an entrepreneur whose business has been running for the facing a problem in setting prices for his products. Explain five factors that Mambo should consider when determining the selling prices for his commodities
(10marks)
(b). Highlight the circumstances under which a local salt manufacturer would prefer to construct his own warehouse rather than rely on a hired one (10marks)

3. (a). Outline five benefits of an insurance policy to business person (10marks)
(b). The following details relate to Sigalagala Traders for the period ending 30th September
Sh.
Creditors 23,700
Cash in hand 15,000
Debtors 39,600
Premises 150,000
Bank overdraft 26,000
3 years bank loan 160,000
Furniture 40,000
Machinery 24,500
Capital 109,600
Stock 56,200
Drawings 2,000
2 years SACCO loan 48,000
Cash at Bank 40,000
Prepare a balance sheet as at

4. (a). Explain six factors that may have hindered the growth of small and medium business enterprises in Kenya (12marks)
(b). Highlight four reasons for privatizing public corporations (8marks)

5. (a). Discuss five factors that may influence the supply of sugar in the market
(10marks)
(b). Using a diagram, explain briefly how a firm in monopolistic competition may determine the equilibrium price and quantity (10marks)

6. (a). Explain five services that wholesalers provide to retailers (10marks)
(b). Explain five benefits that a trader would get by advertising his goods through the radio.

Business Studies Paper 2 Question Paper

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