Business Paper 2 Questions - Maseno Mock Examinations 2022

QUESTIONS

1.    
   1. Highlight five functions of Commercial Banks in Kenya. (10 marks)
   2. Explain FIVE types of unemployment in the country. (10 marks)
2.    
   1. Explain FIVE importance of Public Finance to the economy.(10 marks)
   2. Give FIVE differences between public limited company and partnership forms of business units. (10 marks)
3.    
   1. Explain FIVE factors to be considered in evaluating a business opportunity. (10 marks)
   2. Maseno enterprises started business with Ksh 500,000 in cash on 1st December 2019
      Dec 2nd: Deposited Sh.300,000 cash into the bank
      8th: Purchases goods for resale Sh.25,000 in cash.
      11th: Took Sh.30,000 in cash for personal use.
      19th: Paid wages Sh.10,000 by cheque.
      25th: Cash sales Sh.75,000.
      Required:
      Enter the above transactions in Maseno enterprises ledger accounts and balance them off. (10 marks)
4.      
   1. Explain FIVE reasons why country X may have higher national income than Y (10 marks)
   2. Mary owns a supermarket in Kisumu town and wants to take insurance cover.
      Explain FIVE policy contracts that she may sign with insurance companies.(10 marks)
5.      
   1. The following trial balance was extracted from the books of Baite tradersas at 31st August 2015.
      

      Item	Dr (Sh)	Cr (Sh)
      Sales Purchases Cash at bank Return Inwards Carriage Inwards Carriage Outwards Salaries & Wages Debtors Creditors Stock Machinery Rent Discount received Lighting and heating Buildings Advertising Drawings Capital	160,000 290,000 5,000 20,000 14,000 10,000 56,000 35,000 265,000 12,000 240,000 13,000 30,000	350,000 90,000 25,000 18,000 667,000

      Additional information
      
      1. Stock on 31st August 2015 was valued at sh.50, 000
      2. Prepare Trading, Profit and Loss account for the year ended 31st August 2015 and a balance sheet as at 31/8/2015 (12 marks)
   2. Explain FOUR indictors of under development in a country.(8 marks)
6.    
   1. Explain FIVE negative implications of trade restrictions in foreign trade. (10 marks)
   2. Using a well labelled diagram, explain the effects of an increase in demand while supply remains constant on the equilibrium point, price and quantity. (10 marks)