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Bomet/Chepalungu Districts’ M-Cat Kenya Certificate Of Secondary Education 2011 Question Paper
Bomet/Chepalungu Districts’ M-Cat Kenya Certificate Of Secondary Education 2011
Course:Secondary Level
Institution: Mock question papers
Exam Year:2011
NAME:…………………………………………………..…INDEX ……………..…..DATE……..…
SCHOOL:…………………………………………………..SIGNATURE……………………………
565/2
BUSINESS STUDIES
PAPER 2
JULY / AUGUST, 2010
2 HOURS
BOMET/CHEPALUNGU DISTRICTS SECONDARY SCHOOLS’ M-CATS
Kenya Certificate of Secondary Education 2010
565/2
BUSINESS STUDIES
PAPER 2
JULY / AUGUST 2010
INSTRUCTIONS TO CANDIDATES
? This paper consists of six questions
? Answer Any five question
? All questions carry equal marks
1. (a) Explain five problems facing small scale businesses in Kenya (10 mks)
(b) Explain five factors that insurance companies consider in determining the amount of premium to charge in a life assurance policy. (10 mks)
2. (a) Explain five reasons for the increasing popularity of producer co-operatives in Kenya (10 mks)
(b) The following information was extracted from the books BBC enterprises for the year ended 31st Dec 2007.
Stock on 1.1.2007 sh.34,430
Net purchases during the year sh.212,290
Expenses for the year sh.45.880
Stock on 31.12.2007 sh.26,720
Gross profit mark up 50%
You are required to calculate the following: - (12 mks)
(i) Average stock
(ii) Rate of stock turn over
(iii) Gross profit
(iv) Net profit for the year
3. (a) Outline five differences between private and bonded warehouses. (10 mks)
(b) The government of Kenya is in the process of selling Telkom Kenya to private investors. Explain five reasons to justify such a step (10 mks)
4. (a) Highlight five circumstances under which a newly established firm may find it necessary to locate itself near where well established firms are located. (10 mks)
(b) Explain five services offered by the central bank to the government. (10 mks)
5. (a) Explain five reasons that make it necessary for pharmaceutical companies to increasingly use salesmanship (10 mks)
(b) Explain five reasons that may lead to a decline in supply of maize in Bomet district (10 mks)
6. (a) Explain four factors that have led to increased use of container services (8 mks)
(b) The following information was extracted from the books; Highway Traders who do not keep a complete set of accounting records on 31st Dec 2005.
1/1/2008 31/12/2008
shs shs
Motor vehicle 560,000 420,000
Furniture 218,000 196,000
Debtors 75,000 95,000
Creditors 66,000 72,000
Stock 60,000 85,000
Rent owing 3,000 4,200
Prepaid insurance 2,400 3,600
Cash summary
for the year 31st Dec, 2008
Balance bld 15,000
Receipts from debtors 260,000
Cash sales 50,000
Bal c/d 800 Rent and rates 40,000
Payment to creditors 160,000
General expenses 22,000
Electricity 3,500
Carriage outwards 4,000
Insurance 28,000
Salaries 64,000
Carriage inwards 4.300
325,800 325,800
The following additional information was available for the year ended 31st Dec2008
(i) Returns inwards amounted to sh.9,600
(ii) Bad debts amounted to sh.8,200
(iii) Discount allowed and discount received were sh.12,000 and sh.24,000 respectively required.
- Highway Traders statement of affairs as at 1st January 2008
- Highway Traders trading profit and loss account for the year ended 31st Dec 2008 (9 mks)
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