565/2 BUSINESS STUDIES PAPER 2 MAY-2018 TIME: 21/2 HOURS
ALLIANCE HIGH SCHOOL PRE-TRIAL EXAMINATION 2018
INSTRUCTIONS TO CANDIDATES:
This paper consists of 6 questions
Answer 5 questions only
Explain five challenges that may be experienced by a new entrepreneur (10 marks)
A leading milk processing fim embarked on a vigorous campaign for their brand of milk. The graph below shows the sales volume in months from the first month of advertising. Explain five reasons for the trend from part marked a to part c. (10 marks)
The following were the balances of Kikastar Traders as at 1st January 2017. Cash Sh.40,000, bank overdraft Sh.17,000. During the month the following transactions took place.
January 2nd: Mutiso a debtor settled his account of Sh.32,000 by cheque of Sh.30,000 4th: Paid salaries amounting to Sh.16,000 by cash. 10th Deposited Sh 12,000 into the business bank account from the cash till. 14th Settled Wayua's account of Sh.40,000 and she was allowed a discount of 1% through a cheque. 16th Deposited Sh.56,000 in the bank from private resources, 17th: Sold goods for cash Sh.24.000. 20th Mutua, a debtor, settled his account by a cheque of Sh.16,000 having been allowed a discount of 2%. 24th: the cheque received from Mutiso on 2nd January was dishonoured. 26th: Received Sh.7.200 cash from Odhiambo. 30th: Banked all the available cash except Sh3200
Describe the procedure of obtaining an insurance claim. (10 marks)
Explain five advantages of using celebrities in product promotion (10 marks)
Describe five money transfer facilities provided by the Commercial Banks (10 marks)
Explain five ways that a country can use to correct a deficit in her balance of payments. (10 marks)
Explain five Importance of warehousing to business. (10 marks)
Explain five services that Kingsweet sugar wholesalers offer to sugar producers.
Explain five benefits to a Country as a result of delocalization (10 marks)
The accounts of Tatua Traders showed the following balances on 1 January 2018.
The following transactions took place during the month of January 2018. Jan 2: Bought stock Worth Sh 50,000 on credit Jan 3: Cash sales Sh. 80.000 Jan 5: Received Sh. 20,000 cash from debtors Jan 10: Paid part of loan Sh. 70,000 cash Jan 12: Paid creditors Sh. 52,000 Jan 16: Bought office furniture Sh. 45,000 cash Jan 20: Paid salaries Sh. 40,000 cash Jan 25: Deposited Sh. 100,000 into the bank
Required: Open ledger accounts and record the above transactions and balance the accounts on 31st January 2018
Explain five ways in which communication enhances trading activities. (10 marks)
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