KCSE 2010 Business Studies Paper 2 Questions with Marking Scheme

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                                                                                                                          KCSE 2010 BUSINESS PAPER 2

    1. Commodities A and B are substitutes. Using two diagrams, explain how an increase in the supply in the supply of commodity A which affect the equilibrium price and the quantity demanded of the commodity B. (10 marks)
    2. Explain five negative effects that inflation may have on the economy of a country. (10 marks)
    1. Explain five principles that distinguish co-operative societies from other forms of business organizations. (10 marks)
    2.  Explain five ways of making face-to-face communication effective. (10 marks)
  1.  
    1. The following balances were extracted were extracted from the books of K100 traders for the year ended 30th June 2008.
      balances kcse 2010
      Additional information:
      1. Stock on 30th June 2008 was valued at shs 120,000.
        Prepare:
        1.  Trading, Profit and Loss accounts for the year ended 30th June 2008. (9 marks)
        2. Balance sheet as at 30th June 2008. (5 marks)
    2.  Explain three factors that should be considered when choosing a means of transport. (6 marks)
    1. Explain five benefits that a member country may get from economic integration. (10 marks)
    2. The information in the table below relates to product ZX whose unit price in the market is Shs 20.0
      .balances kcse 2010
      Required:
      1.  Determine total costs, average costs, and marginal costs at each level of output. (8 marks)
        Determine the units to be produced in order to maximize profits. (2 marks)
    1.  Discuss five problems that a country may face when measuring her national income using the output approach. (10 marks)
    2. Explain five factors that an entrepreneur would consider when evaluating a business. (10 marks)
    1. Discuss five benefits that a customer may get by using Automated Teller Machines (ATMs) for financial transactions (10 marks)
    2.  Amina operates a fleet of Public Service Vehicles (PSVs).
      Explain five positive risks she can insure her business against. (10 marks)

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