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KCSE CLUSTER TESTS 24

Business Studies Paper 2

1.

1a Benefits that accrues to a consumer who does shopping from hypermarket (10 mks

  1. Able parking space
  2. Customers can do all their shaping in one building
  3. Usually open for long hours
  4. Shopper can access variety of services e.g. banking
  5. Accept credit cards (Points well explained) 2x5=10 mks

b) Characteristics of a successful entrepreneur

  1. Desire to achieve
  2. Ability to solve problems
  3. Desire for feedback
  4. Committed to work
  5. Seek for information
  6. Concern of high quality goods
  7. Concern of customers satisfaction
  8. Self confidence
  9. Independence
  10. Patience
  11. Risk taker
  12. Ability to solve problems
  13. Time conscious
  14. Creative and innovative
  15. Initiative (Students to quality the points) (2x5=10 mks)

20 marks

2.

2a) Monetary policies that the government can use to curb inflation (12 mks)

  1. Increase the rate of interest on lending to commercial banks
  2. Selling govt securities in O.M.O
  3. Increase commercial banks cash(liquid ratio)
  4. Institute selective credit control measures
  5. Increase commercial banks compulsory deposit with the control banks
  6. Directives to commercial banks
  7. Requesting for more suasion from the commercial banks.

(Any four points well explained) (2x6=12 mks)

B)

20 marks

3.

3a) reasons why Kenya may restrict trade with other countries (10mks)

  1. Protection of local infant industries
  2. Protection of strategic industries
  3. Creation and protection of employment
  4. Prevention of dumping
  5. Preservation of Bopince of trade
  6. Protection of cultural and social values
  7. Expanding market for local product
  8. Promoting self Reliance

(Any 5 points well explained) (2x5=10 mks)

b) benefits of sending letters and parcels by courier services (10 mks)

  1. Door- to-door delivery
  2. Quick or fast
  3. Safety of goods from theft/Damage/service
  4. Reliability
  5. Evidence of delivery
  6. Documents are insured and compensated from loss
  7. Used to send varieties of item

(Any 5 points well explained)

20 marks

4.

4a) Positive implications of a youthful population.

  1. Increase in market demand for goods and services
  2. Enough labour supply
  3. Encourage facing logical advertisements
  4. Existence of diverse forex
  5. Large pool of able-bodied people for defence force recruitment
  6. Expansion of infrastructural facilities
  7. Surplus labour for export
  8. Full exploitation or resources

(Any 5 points well explained) (2x5=10 mks)

b) Principles of public expenditure (10 mks)

  1. Sanctions
  2. Making social benefit
  3. Flexibility
  4. Economy
  5. Proper financial management

(Points to be well explained) (2x5=10 mks)

20 marks

5.
  1. 5a) D monetary policies that the government can use to curb inflation (12 mks)

is advantages of using special feature publicity as a method of product production

(12 mks)

  1. Firm has no control over free publicity in time ,content of the message and space.
  2. Can be costly to the firm.
  3. Its not a permanent promotional method
  4. The media can give negative information a bout the firm which may adversely effect the firm
  5. The media may not cover the firm at its own conveniency, especially when introduced a new product
  6. Only a portion of the information released by the firm may appear in the media

(6 x2= 12 mks)

20 marks

6.

6a)

  1. High level of poverty
  2. Disparity in income distribution
  3. Low level of savings and investments
  4. High population growth rate
  5. Dominance of subsistence sector
  6. Problem of employment
  7. Under utilization of natural resources
  8. Dependance on the developed countries

6b)

  1. When the insured has deliberately caused the loss
  2. Failure to comply with the principle of utmost good faith
  3. When the insured has no the insurable intrest in the property being insured
  4. When the cause of the loss is different from the pay premium
  5. Failure to pay premium

(Any other relevant point) Any 5x2=10 mks

20 marks

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