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KCSE CLUSTER TESTS 24

Business Studies Paper 2

1.
  1. a)Explain five benefits that accrues to a consumer who does shopping from hypermarket (10 mks)

b)Explain five a characteristics of a successful entrepreneur (10 mks

20 marks

2.
  1. a)Explain six monetary policies that the government can use to curb inflation (12 mks)

b)Onjiko wholesalers made the following credit sales to the following customers during the month of March 2012.

March 4th Nekesa sh 4000,Kidero sh 6000,Makau 7500

Prepare his sales Journal (8 mks)

20 marks

3.
  1. a)Explain five reasons why Kenya may restrict trade with other countries (10mks)

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

20 marks

4.
  1. a)The diagram below shows population structure pyramid for a developing country
  2. 20 marks

5.

a)Explain six disadvantages of using special feature publicity as a method of product production (12 mks)

b)Prepare a profit and loss account for the year ended 31st December 2012 from the following trial balances (8 mks)

Kshs

Discount allowed sh 9,000

Discount Received sh 8,

Salaries and wages sh 150,000

Rent paid sh 350,000

Insurance sh 21,000

Commission Allowed sh 4,000

Gross profit sh 365,000

Postage ksh 1,200

Electricity Ksh 8,000

Commission received Ksh 10,200

Travels Ksh 5,000

Motor vehicle Maintenance Ksh 7,800

Interest payable Ksh 15,000

20 marks

6.

a)Explain five characteristics of under-developed countries (10 mks)

b)Explain five reasons why the insured may not be compensated despite suffering a loss (10 mks)

20 marks

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