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Trans Nzoia District Business Studies Paper 2 Question Paper

Trans Nzoia District Business Studies Paper 2

Course:Secondary Level

Exam Year:2007

Name……………………………………………….… Index No. …………………….
School ………………………………………………...
565/2
BUSINESS STUDIES
PAPER 2
JULY / AUGUST
2 ½ HOURS
TRANS-NZOIA DISTRICT MOCK EXAMINATION-2007
Kenya Certificate of Secondary Education (K.C.S.E)
565/2
BUSINESS STUDIES
PAPER 2
JULY / AUGUST
2 ½ HOURS
INSTRUCTIONS:
Answer any five questions
Write your answer in the answer sheet provided.
All questions carry equal marks.
This paper consists of 2 printed pages.2
Candidates should check the question paper to ensure that all pages are printed as indicated
and no questions are missing
1. a) Mr. Njoroge is intending to start a business in Kitale town. Explain five factors in the
remote environment that may effect his business ( 10mks)
b) Discuss five differences between a memorandum of association and articles of association.
( 10 mks)
2. a) State and explain the measures that have been taken in the transport sector to make it more
efficient. ( 10 mks)
b) Outline five characteristics of insurable risks. ( 10 mks)
3. a) The table below represents a farmers supply of maize in a local urban centre
Year Quantity of maize (sacks)
2004 40,000
2005 35,000
2006 20,000
Assuming the price remained constant explain five possible reasons for the trend in the supply
of maize. ( 10mks)
b) Highlight five drawbacks that may face a firm that wants to introduce machines in the
business enterprise. ( 10mks)
4. a) The following figures are from the books of Trans- World traders for the month of August
2006.
Sales (90% credit sales) sh 1,000,000
Cost of goods sold 30 % capital invested.
Expenses as a percentage of sales 20 %
Capital invested shs. 2, 500,000
Debtor’s shs. 450,000
Required
i) Mark – up ( 3½ mks)
ii) Margin ( 1½ mks)
iii) Rate of return on capital ( 3mks)
iv) Debtors ratio ( 2mks)
b) List and explain five errors that will not affect the agreement of the trial balance. (10mks)
5. a) Outline six factors that influence decisions on what goods and services to produce.
( 12mks)
b) Kenya intends to be a member of comesa. Identify four hindrances to such an integration.( 8mks)3
6. a) The central bank is a bank to the government. Outline five banking services that it provides
to the commercial banks. (10mks)
b) Explain five principles of government expenditure (10mks)
END

Trans Nzoia District Business Studies Paper 2 Question Paper

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