Chavakali Pre-Registration Examination Question Paper

Chavakali Pre-Registration Examination

Course:Secondary Level

Exam Year:2008

Business Studies Paper 2.

Answer any FIVE questions.

1. (a) Explain six reasons why a new business may fail. (12mks)

(b) Explain four sources of Government revenue for development. (8mks)

2. (a) Explain five ways in which the Agriculture Finance Corporation (AFC) contributes to economic development in Kenya (10mks)

(b) Explain five factors that could affect the quantity of cabbages supplied in a market. (10mks)

3. (a) Explain five factors that may influence the level of National income in a country. (10mks)

(b) Over the years, Southern star has grown into a large business Enterprise. Explain five diseconomies of scale which it may experience. (10mks)

4. (a) Explain four ways that a government can use to finance a budget deficit. (8mks)

(b) Musi Enterprises are considering to market their imported products direct to consumers. Outline six reasons that may be influencing them to make this decision. (12mks)

5. (a) Outline five factors that may limit the use nf containers as a method of transporting goods in a developing country. (10mks)

(b) Explain five functions of money. (10mks)

6. (a) Explain five benefits of maintaining a current account by a business (10mks)

(b) Explain five negative effects of inflation in an economy (10mks)

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