Find KCSE Business Studies Paper 2 2010. Kenya Certificate of Secondary Education Business Studies Paper 2 Past paper

1. (a) Commodities A and B are substitutes. Using two diagrams, explain how an increase in the supply of commodity A will affect the equilibrium price and quantity demanded of commodity B.

(b) Explain five negative effects that inflation may have on the economy of a country.    (10 marks)

2. (a) Describe five principles that distinguish co-operative societies from other forms of business organisations.      (10 marks)

(b) Explain five ways of making face - to-face communication effective.      (10 marks)

3. (a) The following balances were extracted from the books of K100 Traders for the year ended 30th  June 2008.

Item

 

Shs.

 

Stock on 1st July 2007

80,200

Discount received

7,500

Furniture

3,000,000

Motor vehicle

690,000

Returns inwards

5,8000

Returns outwards

20,800

Debtors

316,800

Creditors

510,400

Purchases

1,120,000

Carriage on sales

12,700

Carriage on purchases

40,000

Lighting

15,000

Sales

1,880,000

Insurance

4,000

Repairs

230,000

Water bills

250,000

General expenses

56,700

Cash

80,000

Capital

4,000,000

Bank

520,000

Bank overdraft

2,500

 

Additional information:      Stock on 30th June 2008 was valued at shs. 120,000

Prepare:

      (i) Trading, Profit and Loss accounts for the year ended 30th June 2008.    (9 marks)

      (ii) Balance sheet as at 30th June 2008.      (5 marks)

(b) Explain three factors that should be considered when choosing a means of transport.      (6 marks)

4. (a) Explain five benefits that a member country may get from economic integration.    (10 marks)

5. (a) Discuss five problems that a country may face when measuring her national income using the output approach.    (10 marks)

     (b) Explain five factors that an entrepreneur would consider when evaluating a business idea.    (10 marks)

6. (a) Discuss five benefits that a customer may get by using Automated Teller Machines (ATMs) for financial transactions.     (10 marks)

(b) Amina operates a fleet of Public Service Vehicles (PSVs). Explain five possible risks she can insure her business against.       (10 marks)