2019 Business Studies paper 2
1 (a) Explain five services that may be offered by wholesalers to the retailers. (10 marks)
(b) Explain five differences between a sole proprietorship and a public limited company.(10 marks)
2) Explain five negative implications of a young population. (10 marks)
(b) The Trial Balance below was extracted from the books of Rakwaro Enterprises on 31st December 2015.
Stock on 31st December 2015 was valued at Ksh 280,400.
Required
(i) Prepare Rakwaro Enterprises Trading Profit and Loss Account for the period ending 31st December 2015 (7½ marks)
(ii) Determine Rakwaro Enterprises initial capital.(2½ marks)
3. (a) Explain five demerits of pipeline as a means of transport. (10 marks)
(b) Explain five measures that may be taken to increase the volume of exports. (10 marks)
4.(a) The following information relates to Moyale Retailers for the month of July 2015:
Sales – Ksh 50,000
Cost of sales – Ksh 40.000
Average stock – ksh 20,000
Expenses were – 5% of sales
Calculate:
(i) Mark-up (2 marks)
(ii) Margin (2 marks)
(iii) Total expenses (2 marks)
(iii) Net profit (2 marks)
(iv) Rate of stock turnover (2 marks)
(b) Outline five benefits of a business to the society. (10 marks)
(a) Explain five advantages of locating firms in different parts of the country. (10 marks)
(b) Explain five government initiated methods of consumer protection. (10 marks)
6.(a) Describe the procedure for obtaining an insurance policy. (10 marks)
(b) Outline five assumptions associated with the circular flow of income in a two sector economy (10 marks)
