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2016 KCSE MOKASA Joint Examination

Business Studies Paper 2


(a) Explain five circumstances that can cause a business to succeed in their activities. (10marks)
(b) Explain five problems facing the savings and credit cooperative societies in Kenya. (10marks)

20 marks


(a) A prudent tax system must meet certain essential qualities. Explain five indicators of a good
tax system . (10marks)
(b) Describe the procedure an insured must take when making an insurance claim. (10marks)

20 marks


(a) Ondari intends to promote his products. Explain five factors that he must take into account
when deciding on which method to use. (10marks)
(b) Explain five weaknesses of using national income statistics as a measure of social welfare.

20 marks


(a) Explain five factors that justify the existence of small scale firms in an economy. (10marks)
(b) Bartenge Enterprises started business on 1st May 2014 with Shs. 250,000 consisting of:
Cash at bank Shs.200,000, Cash in Hand Shs. 30,000 and Furniture Shs. 20,000.
The following transactions took place during the month of May.
3rd May 2014, Motor Van worth Shs. 85,000 and stock of Shs. 25,000 were bought on credit
6th May 2014, more stock worth shs.10,000 was bought by cash
9th May 2014, withdrew money from bank sh 50,000 for office use
15th May 2014, Sold stock at cost to a customer on credit for shs. 18,500
19th May 2014, received a cheque for the full settlement of a debt owed from the transaction
of 15th may 2014
23rd May 2014, paid Shs. 65,000 by cheque for the motor van bought earlier on credit
31st May 2014, paid Shs. 20,000 cash for the stock bought on credit
Prepare the balance sheet of Bartenge Holdings as at 31st May 2014. (10marks)

20 marks


(a) Explain five problems that are faced by a country with a big population of ageing persons.
(b) Explain fivedifference between banking and non-banking financial institutions . (10marks)

20 marks


(a) Explain four reasons why upward communication should be encouraged in an organization.

(b) The following trial balance was extracted from the books of Lule Traders on 30th April 2015

a) Trading, profit and Loss account for the year ended 30th April 2015 (8mks)
b) Balance sheet as at 30th April 2015 (4mks)

20 marks

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