Free School Management System
Free School Management System for Kenya

Free School Management System

Learn More


Business Studies Paper 2

Answer any five questions

a) Explain Five ways in which the government of Kenya can encourage entrepreneurial development. (10mks)

b) Explain Five benefits that a trader would get by advertising his products through radio. (10mks)

20 marks


a) Discuss Five effects of eliminating the wholesaler from the chain of Distribution. (10mks)

b) Explain FIVE function of a commercial attaches. (10mks)

20 marks


a) Explain FIVE ways that the government can use to raise funds to finance its programme. (10mks)

b) On November 2012 Solo traders had cash in Hand sh.87,000 and cast at Bank sh 250,000.

During the month, the following transactions took place .

Nov 2: Cash sales sh 50,000

3: Paid salaries and wages sh 101,500

6: Received a cheque for sh 76,800 from Wambui after allowing her discount of 4%.

12: Bought office furniture by cheque sh 85,000.

13: Paid Wanga by cash sh 45,000 having received a discount of 10%.

14: Received cash from the following account Bahati sh 72,000, Wambui sh.180000, Nafula sh 135,000 each had been allowed 10% cash discount. 16: Bought stationery shs. 15,000 in cash.

17: Received a cheque of sh 241,000 from Odongo having allowed him discount of 3%.

23: Deposited all the money into the bank having a balance of sh 100,000.


Prepare three column cash book dully balanced. (10mks)

20 marks


a) Explain FIVE ways in which a government can practice trade Restriction. (10mks)

b) Explain circumstances under which each of the following means of payment can be used. (10mks)

i) Standing order

ii) Credit cards

iii) Credit transfers

iv) Crossed cheque

v) Postal orders

20 marks


a) Outline Five distinctive features between public Limited Company and partnership form of business. (10mks)

b) Recently after the election the demand for bread has drastically change negatively. Explain five possible causes of these Scenarios. (10mks)

20 marks


a) Explain five ways in which Production activities may adversely affects the community.

b) The following Trial Balance was extracted from the books of Mzalendo Traders as at 31st December 2012

Additional information

Stock on 31st December 2012 was sh 408,000

Carriage outwards sh.40, 000

Building was to be depreciated by 10% per annum


Trading, profit and loss on 31st December 2012. (10mks)

20 marks

Back Top