THE SUCCESS PATH MOCK EXAMINATIONS COUNCIL
Paving the Way to Kenya Certificate of Secondary Education Success
565/2 - BUSINESS STUDIES - Paper 2
March 2024 - 2½ hours
PRE-MOCK FORM 4
Name …………………………………………….……… Admission Number……………………
School ………………….…...………………………… Candidate’s signature…………...…
Date ……………………………………………………. Stream ………………………………….
Instructions to Candidates
(a) Write your name and admission number in the spaces provided above.
(b) Write the name of your school and sign in the spaces provided above.
(c) This paper consists of six questions.
(d) Answer any five questions in the spaces provided at the end of question 6.
(e) Each question carries equal marks.
(f) Non-programmable silent electronic calculators may be used.
(g) This paper consists of 12 printed pages.
(h) Candidates should check the question paper to ascertain that all pages are
printed as indicated and that no questions are missing.
(i) Candidates should answer the questions in English.
FOR EXAMINER’S USE ONLY
Question Maximum Candidate’s
Score Score
20
20
20
20
20
Total Score 100
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1. (a) Abdi runs a factory and has employed fifty workers. Explain five reasons why it
would be beneficial to assign each worker a specific job in production. (10 marks)
(b) Explain five factors that a trader may consider when determining the
appropriate channel for distributing goods. (10 marks)
2. (a) The diagram below shows a shift of the supply curve of a commodity from S 1S1 to
S2S2. Explain five factors that would have caused the shift. (10 marks)
(b) Explain any five challenges that an under populated country may experience.
(10 marks)
3. (a) Explain five benefits that a wholesaler may get if he operates own warehouse.
(10 marks)
(b) Describe any five channels that can be used to distribute locally manufactured
goods. (10 marks)
4. (a) Explain five challenges that may be experienced by a new entrepreneur who is
intending to start a business in Kenya. (10 marks)
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(b) Ali had the following assets and liabilities as at 1.2.2024.
Feb 2024 Kshs.
Cash at bank 50,000
Debtors 30,000
Creditors 50,000
Stock 20,000
Furniture 35,000
Additional information
2nd Purchased stock worth Sh.16,000 on
credit.
6th Sold some furniture for Sh.4,000 by
cheque.
9th Received Sh.11,000 cash from debtors.
13th Sold stock Sh.10,000 paid by cheque.
Required: Prepare the relevant ledger accounts. (10 marks)
5. (a) Explain five problems that can be encountered in an office as a result of
computerization of operations. (10 marks)
(b) Describe five services rendered by retailers to consumers. (10 marks)
6. (a) Explain four effects of production activities on the environment and community
health. (8 marks)
(b) The following information was extracted from the books of Brian Traders as at
31st December, 2023.
Kshs.
Sales 800,000
Purchases 500,000
Returns inwards 90,000
Returns outwards 26,000
Creditors 150,000
Rent 60,000
Delivery van 160,000
Carriage outwards 3,000
Debtors 120,000
Carriage inwards 40,000
Bank 60,000
Stock (Jan 2023) 100,000
Interest expenses 10,000
General expenses 7,000
Stock (31st Dec 2023) 120,000
Bank overdraft 4,000
Capital 170,000
(i) Prepare a Trading, Profit and loss account for the year ended 31st
December, 2023. (8 marks)
(ii) Prepare a balance sheet as at 31st December 2023. (4 marks)
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