Business Studies Paper 2 Marking Scheme
KCSE CLUSTER TESTS 24
Business Studies Paper 2
1a Benefits that accrues to a consumer who does shopping from hypermarket (10 mks
- Able parking space
- Customers can do all their shaping in one building
- Usually open for long hours
- Shopper can access variety of services e.g. banking
- Accept credit cards (Points well explained) 2x5=10 mks
b) Characteristics of a successful entrepreneur
- Desire to achieve
- Ability to solve problems
- Desire for feedback
- Committed to work
- Seek for information
- Concern of high quality goods
- Concern of customers satisfaction
- Self confidence
- Independence
- Patience
- Risk taker
- Ability to solve problems
- Time conscious
- Creative and innovative
- Initiative (Students to quality the points) (2x5=10 mks)
20 marks
2a) Monetary policies that the government can use to curb inflation (12 mks)
- Increase the rate of interest on lending to commercial banks
- Selling govt securities in O.M.O
- Increase commercial banks cash(liquid ratio)
- Institute selective credit control measures
- Increase commercial banks compulsory deposit with the control banks
- Directives to commercial banks
- Requesting for more suasion from the commercial banks.
(Any four points well explained) (2x6=12 mks)
B)
20 marks
3a) reasons why Kenya may restrict trade with other countries (10mks)
- Protection of local infant industries
- Protection of strategic industries
- Creation and protection of employment
- Prevention of dumping
- Preservation of Bopince of trade
- Protection of cultural and social values
- Expanding market for local product
- Promoting self Reliance
(Any 5 points well explained) (2x5=10 mks)
b) benefits of sending letters and parcels by courier services (10 mks)
- Door- to-door delivery
- Quick or fast
- Safety of goods from theft/Damage/service
- Reliability
- Evidence of delivery
- Documents are insured and compensated from loss
- Used to send varieties of item
(Any 5 points well explained)
20 marks
4a) Positive implications of a youthful population.
- Increase in market demand for goods and services
- Enough labour supply
- Encourage facing logical advertisements
- Existence of diverse forex
- Large pool of able-bodied people for defence force recruitment
- Expansion of infrastructural facilities
- Surplus labour for export
- Full exploitation or resources
(Any 5 points well explained) (2x5=10 mks)
b) Principles of public expenditure (10 mks)
- Sanctions
- Making social benefit
- Flexibility
- Economy
- Proper financial management
(Points to be well explained) (2x5=10 mks)
20 marks
- 5a) D monetary policies that the government can use to curb inflation (12 mks)
is advantages of using special feature publicity as a method of product production
(12 mks)
- Firm has no control over free publicity in time ,content of the message and space.
- Can be costly to the firm.
- Its not a permanent promotional method
- The media can give negative information a bout the firm which may adversely effect the firm
- The media may not cover the firm at its own conveniency, especially when introduced a new product
- Only a portion of the information released by the firm may appear in the media
(6 x2= 12 mks)
20 marks
6a)
- High level of poverty
- Disparity in income distribution
- Low level of savings and investments
- High population growth rate
- Dominance of subsistence sector
- Problem of employment
- Under utilization of natural resources
- Dependance on the developed countries
6b)
- When the insured has deliberately caused the loss
- Failure to comply with the principle of utmost good faith
- When the insured has no the insurable intrest in the property being insured
- When the cause of the loss is different from the pay premium
- Failure to pay premium
(Any other relevant point) Any 5x2=10 mks
20 marks