Business Studies Paper 2 Questions and Answers - Moi Kabarak High School Mock 2020/2021

INSTRUCTIONS TO STUDENTS

• Answer ALL the questions in the spaces provided.

SECTION A

1. 
   
   1. Explain five reasons that may cause a business to continuously fail in all its business endeavors.       (10 marks)
   2. Explain the uses of the following documents in home trade.        (10 marks)
      
      1. Cash sale receipt
      2. Catalogue
      3. Consignment note
      4. Statement of account
      5. Invoice
2.  
   1. Explain five reasons for effective filling systems.     (10 marks)
   2. Given below is the balance of Ochieng traders as at 1^st June 2019.
                        Ochieng Traders
                          Balance sheet
                      As At 1st June 2019
      
      During the first week of June, 2019, the following transactions took place in the business.
      2019
      June 2nd:   Ochieng introduced additional funds into the business of shs.50,000 into the                          business bank account.
      June 3rd.    Purchased a motor vehicle from Marshalls traders worth 200,000 on credit.
      June 5th:    Sold goods on credit to Anita shs.25,000.
      June 6th:    Bought equipment worth shs. 50,000 on credit.
      June 7th:    Took cash worth Ksh.5,000 for the son's birthday.
      June 9th:    Sold office furniture of book value Ksh. 60,000 for Kshs.70,000 in cash.
      
      Required:
      Prepare the balance sheet of Ochieng Traders as at 10^th June 2019 to record the transactions above.           (10 marks)
3.  
   1. Tanzania has witnessed a consistent rise in its level of national income for the last five years. Outline five factors that may account for this trend. (10 marks)
   2. Using a graph describe the effect of increase in supply on equilibrium price and quantity
      (10 marks)
4.  
   1. Highlight five methods that a country can use to restrict trades.      (10 marks)
   2. Draw the distinction between assurance and insurance as classes of insurance.    (10 marks)
5.  
   1. Explain five features of a public limited company.        (10 marks)
   2. Explain five principles of taxation in any economy bearing in mind the Kenyan economy.
      (10 marks)
6.  
   1. Draw five channels of distributing imported agricultural products.          (10 marks)
   2. The following information relates to Kianyaja stores for the year ended 31^st December 2013.
      Opening stock           150,000
      Closing stock             230,000
      Bank                          30,000
      Cash                          40,000
      Current liabilities       500,000
      Sales                        920,000
      Margin                         25%
      Expenses                     15% of sales
       Determine:
      1. Cross profit.          (2 marks)
      2. Cost of sales        (2 marks)
      3. Mark-up                (2 marks)
      4. Purchases for the year.           (2 marks)
      5. Net profit.             (2 marks)