BUSINESS STUDIES PAPER 2 - KCSE 2019 JOINT PRE MOCK EXAMINATION NAMBALE

Instructions to candidates

• This paper consists of six questions
• Answer any five questions
• All questions carry equal marks
• Write your answers in the answer booklet provided.

1.  
   1. Explain five factors that may enhance operations of a warehouse.         (10marks)
   2. Explain five benefits of Government participation in business activities to a country.        (10marks)

2.  
   1. Explain five personal characteristics of a successful entrepreneur.         (10marks)
   2. Explain five negative effects of inflation on an economy.                             (10marks)

3.  
   1. Explain five benefits Kenya gets from being a member of East African community.                                                                                                       (10marks)
   2. on 1^st January 2019, Ojukwo traders had shs. 40,000 cash in hand and a bank overdraft of Ksh.50,000
      During the month, the following transactions took place
      January 2:  Cash sales Ksh. 55,000
      January 6:  A debtor settled his account of ksh. 70,000 by cheque less 5% cash discount.
      January 16:            Paid salaries ksh. 23,000 in cash.
      January 21 settled a creditors account of ksh.17,000. Cheque less 2%
      Cash discount
      January 31 banked all the cash except ksh. 20,000.
      Prepare Ojukwo traders three column cash book

4.  
   1. Explain five challenges encountered in in development planning. (10marks)
   2. Explain five differences between a public limited company and a public Cooperation.   (10marks)

5.  
   1. Describe five channels of distribution a foreign producer would use to ensure, her goods reach consumers in another county (10mks)
   2. Explain five features of a good tax system. (10mks)

6.  
   1. Explain five reasons why ethical issues are important in Business operation.      (10mks)
   2. The following balance sheet relates to Chemise trading
      
      The following transaction took place during the month of January
      January 2:  paid creditors sh. 10,000
      January 3:  Received cash 38,000 from debtors
      January 4:  Bought office equipment sh. 32,000 in cash
      January 5: Took goods worth sh. 10,000 from business for personal use. At the end of January, Chemasereleased a net profit ofShs.84, 000 and the bank loan reduced to sh. 206,000.
      
      Required
      Balance sheet as at 31.1.09.    (10mks)