Business Paper 2 Questions - Alliance Boys High School Post Mock KCSE 2020

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Section 1

  1. Give four reasons why having a well laid business structure would lead to the success of a business (4mks)
  2. Name four sources of capital for a partnership (4mks)
  3. List four factors that influence demand of a product (4mks)
  4. Name four source documents used in accounting (4mks)
  5. List four contents included in a catalogue (4mks)
  6. List four advantages of radio calls as a means of communication/4mks)
  7. Use a diagram to illustrate five possible channels of distribution of a locally manufactured good (4mks)
  8. List four functions of a central bank in an economy (4mks)
  9. List four factors to consider when selecting an office equipment (4mks)
  10. List four types of life assurance contracts (4mks)
  11. List five problems associated with output approach as a measure of national income (Smks)
  12. Mention four causes of balance of payment disequilibrium ( 4mks)

Section 2
Instruction: answer ALL the questions in the foolscaps provided.

  1. Outline five features of a departmental store(10mks)
  2. Highlight five importance of a warehouse(10mks)
  3. Outline five effects of a declining population (10mks)
  4. Explain five statutory measures that the government may put in place to regulate inflation (10mks)
  5. The balance sheet below is of Ujenzi

Balance Sheet As at 31/12/2020

Land & Building      770,000 
Motor vehicle          600,000
Furniture                100,000
Stock (goods)          90,000 
Stock (stationery)     12,000
Debtors                    58,000
Cash in hand            16,000
Prepaid insurance       4,000
Capital 900,000
Add: net profit  282,000

Loan ICDC        40,0000
Creditors           47,000
Salaries owing   13,000 
Bank                   8,000

Determine the following (10mks)

  1. Working capital
  2. Return on capital
  3. Current ratio
  4. Capital employed
  5. Borrowed capital
  6. Quick ratio
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