Form 4 Business Studies Paper 2 Term 2: Mock 2016 Question Paper

Form 4 Business Studies Paper 2 Term 2: Mock 2016

Course:Business Studies

Exam Year:2016

BUSINESS STUDIES
PAPER II
JUNE/JULY 2016
TIME: 21/( 2) HOURS

Answer any five questions

1. a) Identify Five parties interested in the financial statements of a given firm and explain the reasons why they need them. (10 marks)

b) Explain Five benefits that accrue to a country as a result of economic integration.
(10 marks)

2.a) Explain any FIVE tools of monetary policy used by the central bank to reduce credit creation by the commercial banks. (10 marks)

b) Explain FIVE emerging issue in office management. (10 marks)

3. a) Of late there has been a lot of queries on how the government uses resources. Explain five guidelines that would lead to effective use of government resource.
(10 marks)
b) One of the key pillars of development is an enabling environment which can support the growth of business and foreign direct investments. Explain FIVE ways which the Kenyan government employ to create such an environment. (10 marks)

4. a) Outline FIVE differences between Insurance and Assurance. (10 marks)

b) Explain the limitation of using per capita income as a measure of standards of living of citizens in a given country. (10 marks)

5. a) The following Trial Balance was extracted from the books of Gikomba Traders on 31st December 2015.

Closing stock was sh. 55, 300

REQUIRED
Prepare Gikomba Trader’s Trading, profit and loss account for the period ended 31st December 2015, and a Balance Sheet as at that date. (15 marks)

b) Describe FIVE channels of distribution for imported manufactured goods. (5 marks)

6. a) Juma has a comprehensive insurance cover for his car with British American Insurance Company. He got involved in a road accident and his vehicle was written off. Describe the steps of claiming for compensation. (8 marks)

b) The following balance sheet was extracted from the books of Uchumi enterprises on 1st December, 2015.

During the month of December, Uchumi Enterprises carried out the following transactions
December 2:- The proprietor sold her personal equipment for sh.60, 000. She received payment in cash and invested it in her business.

“ 11:- Purchase goods for Sh. 58, 000 on credit from Alpha distributors.
“ 19:- Returned goods worth Sh.6, 000 to Alpha Distributors after they were found defective.
“ 24:- Sold goods for cash Sh. 24, 000
“ 30:- She took away goods costing Sh. 16, 000 for her domestic consumption.

Required:
i. Record the above transaction in ledger accounts and balance off the accounts.
ii) Extract a trial balance as at 31st December, 2015
(12 marks)

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