2017 Business Studies Paper 2
1.(a).Explain five ways in which the intemal environment may contribute to the success of a business enterprise. (10 marks)
(b).Describe five channels of distribution that a Kenyan manufacturer would use to ensure her goods reach consumers in another country. (10 marks)
2.(a).Explain five differences between chain stores and departmental stores. (l0 marks)
(b).The following Trial Balance was extracted from the books of Ojwang Limited on 31 December 2013.
Additional Information: Closing stock was valued at Ksh 80,000.
Required: Prepare a Trading, Profit and Loss account. (10 marks)
3.(a).Explain five benefits that a private limited company would get by converting to a public limited company. (l0 marks)
(b). Explain five disadvantages of using direct taxes to raise government revenue. (10 marks)
4.(a).The following transactions relate to Dagoreti Enterprises for the month of March 2016. March l:Started business with Ksh 15,300 in cash and a bank overdraft of Ksh 8,200
March 3:Made cash purchases of Ksh 10,200 in cash
March 4:Harrison, a debtor settled his account of Ksh 18,000 by issuing a cheque of Ksh 13,400 and the rest by cash
March 5:Paid wages by cheque, Ksh 5,000
March 6:Received a cheque of Ksh 9,310 from Chebet
March 7:Received cash, Ksh 7,720 from Otieno
March 8:Paid Hassan Ksh 5,450 in cash
March 9:Deposited Ksh 6.000 from the ofiice into the business bank account
March 10:Paid insurance Ksh 3,700 by cheque
March l1:Paid Ksh3,90O for repairs in cash
March l2:Received Ksh 8,570 in cash from Mwende
March l3:Received a cheque of Ksh 1 1,200 from Makokha
March l4:Paid water bill Ksh 2,590 by cheque
March l5:Paid rent Ksh6,500 by cheque
March 29:Took all the cash that was in the office and deposited it into the business bank account
Required: Prepare a two column cash book for the month of March 2016. (10 marks)
(b).Explain five factors that one may consider when selecting a means for communicating. (10 marks)
5.(a).Explain five demerits of the output approach in measuring national income. (10 marks)
(b).Explain five circumstances under which a country may realise surplus in its balance of payments. (10 marks)
6.(a).Explain five methods that the government may use to increase supply of goods in the market.( 10 marks)
(b).Explain five factors that may promote the growth of entrepreneurship in Kenya. (10 marks)
