BUSINESS STUDIES PAPER 2 - 2019 KCSE Prediction Questions Set 1

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

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1. Explain five importance of trade within a country (10 marks)
2. With five features differenmtiate between a cooperative society and a public Limited Company (10 marks)
1. On 1st December 2015, Mumbi traders had shs. 125,000 in hand and a a bank overdraft of shs 97,000
  During the month, the following transactions took place
  Dec 2: Cash sale banked shs. 335,260
  3: Bought goods in cash shs. 10,500
  9: Paid Njeru a creditor shs. 190,000 by cheque in full settlement of his account after deducting 5% cash discount
  13: Received a cheque for sh. 158,400 from Maro after allowing her a cash discount of shs. 1,600
  16: Paid salaries shs. 36,000 in cash
  24: Withdrew shs. 100,000 from bank for office use
  29: Nyangau, a debtor paid her account of 175,000 by cheque less 10% cash discount
  31: Deposited all the cash into bank except shs. 33,490
  Required: Prepare a three column cash book and balance it off (10 marks)
2. Explain five purpose of public finance
1. Explain four reasons why entrepreneurs observe ethics in their business (10 marks)
2. Explain five factors that contribute to income disparity in Kenya (10 marks)
1. Explain five circumstance under which a manufacturer wpould prefet to sell his products direct to consumers instead of selling through middlemen
2. Explain five importances of development planning
1. Explain five advantages of free trade (10 marks)
2. Explain five reasons why the government protect consumers (10 marks)
1. The following information ws extracted from the books of Sahara traders fro the year ended 30th April, 2013
  
  Shs.
  
  Sales 480000
  
  Opening stock 1/5/2012 80,000
  
  Closing stock 30/4/2012 120,000
  
  Gross profit margin 25%
  
  Prepare
  1. Trading account for the period ended 30th April 2013 (6 marks)
  2. Calculate rate of stock turnover (4 marks)
2. The size of population of a country A has been declining. Explain five possible causes that may have contributed to the decline (10 marks)