4.6.2 Business Studies Paper 2 (565/2)
1.(a) Explain ﬁve beneﬁts that may accrue to a country with a large proportion of skilled labour force. ( 10 marks)
(b) Outline ﬁve characteristics of an efﬁcient tax system. (10 marks)
2. (a) Explain ﬁve beneﬁts that Kenya may get as a member of C .O .M.E.S .A. (10 marks)
(b) Explain ﬁve factors that may hinder economic development in Kenya. (10 marks)
3. (a) Explain ﬁve beneﬁts that may be realized by a country as a result of government policy to relocate industries to rural areas. (10 marks)
(b)The following balances were extracted from the books of Soilo Traders on 31“ December 2010.
4. (a) Explain ﬁve advantages of advertising to the consumer. (10 marks)
(b) On 1*‘ January 2011 ,Jumo Traders had shs 22,500 in cash and shs 250,000 at bank
During the month, the following transactions took place:
Prepare a duly balanced three column cash book. (10 marks)
5.(a) Outline six circumstances under which a trader may use air transport.
(b) Explain four ways through which a public limited company may be dissolved
6.(a) With the aid of a diagram, explain the effect of an increase in the supply of a commodity while its demand remains constant.
(b) Explain ﬁve features of oligopoly. (10 marks)