BUSINESS STUDIES PAPER 1 Marking Scheme - 2019 KCSE Prediction Answers Set 2

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BUSINESS STUDIES PAPER 2 - 2019 KCSE Prediction Questions Set 2

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BUSINESS STUDIES PAPER 2 Marking Scheme - 2019 KCSE Prediction Answers Set 2

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- Competitive-when wants compete for attention such that each one of them yearns to be satisfied first
- Repetitive –when a particular want demand to be satisfied over and over again because wants are not fully satiable.
- Habitual- when an individual has developed a taste for a given product they tend to use it over and over again thereby becoming a habitual user
- Complementary- when satisfaction of want create a need , a second want derived from the first.
- It is man-made
- It is a basic factor of production
- It is subject t depreciation eg through wear and rear
- Can be improved through technology
- His ability to manage people
- Proper location /availability of customers
- Availability of stock
- Adequate finance
- Lack of competition
- His commitment to the business
- Proper management of finances
- Good public relation
- Being creative and innovative
- Proper market research
- Simplicity
- Compactness
- Suitability
- Elasticity
- Safety
- Accessibility
- Economical
- Processing
- Manufacturing
- Construction
- Commercial services
- Access to large market
- A fast way of doing business
- Reduces paper work since many work dealings are online
- Saves on cost of sending, receiving and storing information
- One can access important business information which would be used to enhance running of business
- Large and small business can transact business without discrimination
- Owned by the government
- Formed by an act of parliament
- Not necessarily profit motivated
- Initial capital provided by the government
- Directors are appointed by government
- Political interference
- Scaring away of investors
- Loss making corporations are financed through taxpayer’s money
- Corruption and embezzlement of funds
- Government corporations require heavy capital investment
- When goods are urgently needed
- If value of property is high
- When transporting perishable products
- When security is necessary
- If other means are not available
- Network for cellular communication have not yet reached all corners of the country
- Landlines are more convenient for organisations since they can be fitted with extensions
- Not all people can afford mobile phones
- People owning landline phones are reluctant to change to mobile phones
- Ensure steady supply of goods
- Ensure stable prices
- Goods are kept safe
- Stored goods can be prepared for sale
- May improve the quality of goods
- Enables trader to look for market
- Ensures continued production of goods
- Enables company to create a common pool of funds
- Enables the company to indemnify those who suffer a loss
- Enables the company to spread risks
- Company can invest the surplus funds
- Enables the company to meet running costs from the fund
- Earns profits, which are distributed as dividends
- Enables the firm to determine premiums to be paid
- Customer can compare various products before buying
- Sales people can demonstrate and explain features of a product
- Organisation can get immediate feedback
- Enables the organisation to assess the market potential
- Price mechanism
- Haggling/bargaining
- Auction
- Tendering
- Price control
- Reduce risks associated with terrorism, wars, earthquakes e.t.c
- Providing employment opportunities to people within affected areas
- Reducing rural-urban migration
- Encouraging balanced regional development
- Providing market for locally produced raw materials
- Providing finished goods to local communities
- There are many buyers and sellers of product, who act independently
- The product from different producers either vary in quality or a product is a group of products are close substitutes of each other
- No barriers to entry or exit exist
- There is perfect knowledge of market for both sellers and buyers
- Different currencies
- Different types of products
- Disparity in distribution of income
- Different needs and tastes
- Rapid population growth
- Inadequate co-operant factor input
- Inappropriate education system
- Seasonality in production
- Lack of market for the product
- Use of inappropriate technology
=8421
=27920
=121410
=264560
Closing capital=opening capital + profit + investment – drawings
CC=OC+P+I-D
OC= CC-P-I+D
OC=120000=56000-38000-50000
=SHS. 88000
- Account (DR) Account (CR)
  Cash capital
  Bank debtor
  Office equipment bank
  Creditor cash
- Is a ledger because it contains the cash and bank accounts
- It is a book of original entry because it has discount allowed and discount received columns.
- To relieve the ledgers of too many details
- Journals contain details not found in other ledger accounts
- They are maintained by different people from those maintaining ledgers hence minimising chances of fraud and promoting efficiency
- Journals facilitate tracing errors
- They contain information useful when preparing control accounts whose balances can be used to prepare interim final accounts.
- Offer adversary services to their clients in matters such as business opportunities available, how to operate their businesses and record keeping
- Encourage clients to carry out business activities. They give small amount of a loan on condition that loanee would get a bigger amount if she/he invest small loan wisely
- They encourage savings by advancing a loan to an individual member of a certain group depending on amount of money he/she has saved in the group
- They supervise and monitor people to whom they have given loans