KCSE 2025 REGIONAL PREMOCKS

BUSINESS STUDIES

KCSE 2025 COMPLIANT

A COMPILATION OF TOP SCHOOLS’ JOINT REGIONAL MOCKS

ACROSS THE 47 COUNTIES IN THE COUNTRY COMPILED AND

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 TABLE OF CONTENTS
1. CENTRAL REGION SCHOOLS’ JOINT PREMOCKS
2. COASTAL REGION SCHOOLS’ JOINT PREMOCKS
3. EASTERN REGION SCHOOLS’ JOINT PREMOCKS
4. NAIROBI REGION SCHOOLS’ JOINT PREMOCKS
5. NORTH EASTERN REGION SCHOOLS’ JOINT PREMOCKS
6. NYANZA REGION SCHOOLS’ JOINT PREMOCKS
7. RIFT VALLEY REGION SCHOOLS’ JOINT PREMOCKS
8. WESTERN REGION SCHOOLS’ JOINT PREMOCKS

ELIMU BORA MAISHA BORA

KENYA EDUCATORS CONSULTANCY
0724 333 200
kenyaeducators@gmail.com
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 CENTRAL REGION

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Name…………………………………………………………………. Index No………………………..Adm no…….
Date………………………… Signature……………………..

CENTRAL REGION SCHOOLS’

JOINT PREMOCKS
KENYA CERTIFICATE OF SECONDARY EDUCATION (K.C.S.E)
565/1 BUSINESS STUDIES
PAPER 1
FORM FOUR
2 HOURS

Instructions to candidates
a). This paper consists of 25 questions
b). Answer ALL questions in the spaces provided
c). Candidates should answer questions in English

for examiners Use only

Questions

Marks

Questions

Marks

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1.State any four means of payment used in home trade 4mks
i)…………………………………………………………………………………………………………………………………………………
ii)…………………………………………………………………………………………………………………………………………………
iii)………………………………………………………………………………………………………………………………………………..
iv)…………………………………………………………………………………………………………………………………………….......
2. Name the factor that each of the following resources relate to 4mks

Resources Factor of production

a. Manager
b. Vehicle
c. Cotton
d. Water
3. Apart from selling shares give four sources of capital to a public limited company 4mks
i)…………………………………………………………………………………………………………………………………………………
ii)…………………………………………………………………………………………………………………………………………………
iii)………………………………………………………………………………………………………………………………………………..
iv)…………………………………………………………………………………………………………………………………………….......
4. Highlight four ways of making face to face communication effective 4mks
i)…………………………………………………………………………………………………………………………………………………
ii)…………………………………………………………………………………………………………………………………………………
iii)………………………………………………………………………………………………………………………………………………...
iv)…………………………………………………………………………………………………………………………………………….......
5 . Outline four methods that the government may use to increase supply of a commodity 4mks
i)…………………………………………………………………………………………………………………………………………………
ii)…………………………………………………………………………………………………………………………………………………
iii)………………………………………………………………………………………………………………………………………………..
iv)…………………………………………………………………………………………………………………………………………….......
6. State four basic features of a market 4mks
i)…………………………………………………………………………………………………………………………………………………
ii)…………………………………………………………………………………………………………………………………………………
iii)………………………………………………………………………………………………………………………………………………...
iv)…………………………………………………………………………………………………………………………………………….......

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7.Highlight four benefits that accrue to a customer who buys directly from a manufacture
4mks.i)…………………………………………………………………………………………………………………………………………
ii)…………………………………………………………………………………………………………………………………………………
iii)………………………………………………………………………………………………………………………………………………..
iv)…………………………………………………………………………………………………………………………………………….......
8.State four factors that may lead to an increase in national income of a country 4mks
i)…………………………………………………………………………………………………………………………………………………
ii)…………………………………………………………………………………………………………………………………………………
iii)………………………………………………………………………………………………………………………………………………..
iv)…………………………………………………………………………………………………………………………………………….......
9. Fill in the missing figures in the table below 4mks

FA CA C L
a 275,500 ………………. 315,000 115,500
b 182,000 108,700 ………………… 217,100
c ……………. 76,400 123,100 91,900
d 313,450 211,340 189,170 ………………..
10. State four ways that may be used to control amount of money in circulation by the central bank
of kenya 4mks
i)…………………………………………………………………………………………………………………………………………………
ii)…………………………………………………………………………………………………………………………………………………
iii)………………………………………………………………………………………………………………………………………………...
iv)…………………………………………………………………………………………………………………………………………….......
11. Outline four benefits of direct taxation to the government 4mks
i)…………………………………………………………………………………………………………………………………………………
ii)…………………………………………………………………………………………………………………………………………………
iii)………………………………………………………………………………………………………………………………………………...
iv)…………………………………………………………………………………………………………………………………………….......

12. Outline four features of basic wants 4mks

i)…………………………………………………………………………………………………………………………………………………
ii)…………………………………………………………………………………………………………………………………………………
iii)……………………………………………………………………………………………………………………………………………

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iv)…………………………………………………………………………………………………………………………………………….......
13 .Give four malpractices that consumers need to be protected against by the government 4mks
i)…………………………………………………………………………………………………………………………………………………
ii)…………………………………………………………………………………………………………………………………………………
iii)………………………………………………………………………………………………………………………………………………...
iv)…………………………………………………………………………………………………………………………………………….......
14. The table below represents the demand schedule of carrots for eight weeks in the months of
January and February 2022

week 1 2 3 4 5 6 7 8
Quantity 505 485 430 375 340 290 215 195
kg
Outline four causes of the trend in the table above 4mks
i)…………………………………………………………………………………………………………………………………………………
ii)…………………………………………………………………………………………………………………………………………………
iii)………………………………………………………………………………………………………………………………………………..
iv)…………………………………………………………………………………………………………………………………………….......
15.Highlight four reasons why a firm may remain small 4mks
i)…………………………………………………………………………………………………………………………………………………
ii)…………………………………………………………………………………………………………………………………………………
iii)………………………………………………………………………………………………………………………………………………..
iv)…………………………………………………………………………………………………………………………………………….......
16 . Identify the type of large scale retailers described bellow
i)Businesses where customers make their orders through the post office
……………………………………………………………………………………………………………………………………………………
ii).Shops operated by one company and located in different areas where they sell specialized
products……………………………………………………………………………………………………………………………………..
iii) .Many shops under one roof and one management each selling particular line of products
……………………………………………………………………………………………………………………………………………………
iv). Big shopping complexes with many shops under one roof each under a different management
……………………………………………………………………………………………………………………………………………………..

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17 . Kiambu traders had the following assets and liabilities on 3 October 2022
Items Sh
Machine 700,000
Capital 1,100,000
Creditors 100,000
Debtors 200,000
Stock 250,000
Cash at bank 50,000
The following transactions took place on 5th October 2022
i. Bought stock for resale Ksh 150,000
ii. A tieno a debtor paid 50,000 by cheque
iii. Sold the machine for Ksh600,000
Required : Prepare a balance sheet

18.State four reasons why economic development is desirable to the economy 4mks
i)…………………………………………………………………………………………………………………………………………………
ii)…………………………………………………………………………………………………………………………………………………
iii)………………………………………………………………………………………………………………………………………………..

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iv)…………………………………………………………………………………………………………………………………………….......
19.Outline four benefits that a farmer may get by transporting produce to the market by road 4mks
i)…………………………………………………………………………………………………………………………………………………
ii)………………………………………………………………………………………………………………………………………………..
iii)………………………………………………………………………………………………………………………………………………...
iv)…………………………………………………………………………………………………………………………………………….......
20. The following information relates to Omwami traders for the year ending 31 December 2022
i)…………………………………………………………………………………………………………………………………………….
ii)…………………………………………………………………………………………………………………………………………………
iii)………………………………………………………………………………………………………………………………………………...
iv)…………………………………………………………………………………………………………………………………………….......
Stock on1/1/2022 130,000
Sales 640,000
Margin 15%
Purchases 480,000
Closing stock ?
Required : Trading account of Omwami traders for the year ending on 31st December 2022
5mks

21.James started a business two years ago. She has realized that is growing at a fast rate .
State four probable causes of her business success 4mks

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 i)…………………………………………………………………………………………………………………………………………………
ii)…………………………………………………………………………………………………………………………………………………
iii)………………………………………………………………………………………………………………………………………………...
iv)…………………………………………………………………………………………………………………………………………….......
22.Identify the information recorded in the following columns of a two column cash book 4mks
a) Date ………………………………………………………………………………………………………………………………………
b) Detail……………………………………………………………………………………………………………………………………..
c) Cash……………………………………………………………………………………………………………………………………….
d)Bank…………………………………………………………………………………………………………………………………………
23.State four disadvantages of free trade area to a country 4mks
i)…………………………………………………………………………………………………………………………………………………
ii)………………………………………………………………………………………………………………………………………………
iii)………………………………………………………………………………………………………………………………………………
iv)…………………………………………………………………………………………………………………………………………….....
24.Give four reasons for privatizing public corporations 4mks
i)…………………………………………………………………………………………………………………………………………………
ii)…………………………………………………………………………………………………………………………………………………
iii)………………………………………………………………………………………………………………………………………………..
iv)…………………………………………………………………………………………………………………………………………….......
25. State three characteristics of direct production 3mks
i)………………………………………………………………………………………………………………………………………………….
ii)………………………………………………………………………………………………………………………………………………..
iii)………………………………………………………………………………………………………………………………………………...

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NAME……………………………………………………………………………………………………………………

INDEX NUMBER…....…….........………..

CANDIDATE SIGNATURE…………….

DATE………………………………………..

CENTRAL REGION SCHOOLS’ JOINT

PREMOCKS
(KENYA CERTIFICATE OF SECONDARY EDUCATION K.C.SE)
BUSINESS STUDIES

PAPER 2

2 1/2 HOURS

INSTRUCTIONS TO CANDIDATE
a) Write your name and index number in the spaces provided below
b) sign and write the date of the examination in the spaces provided below
c) This paper consists of six questions
d) Answer any five questions
e) All questions carry equal marks
f) Candidates should answer the questions in English

FOR EXERMINERS USE ONLY TOTAL SCORE

QUESTION MAXIMUM SCORE CANDIDATE SCORE
20
20
20
20
20

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 1. (a) Explain five current trends in communication today (10marks)
(b) Explain five advantages that accrue to a customer who buys goods from a supermarket (10marks)
2. (a)Explain five functions of the central bank (10marks)
(b) On January 2011, Akoto traders had shs. 180,000 cash in cash and a bank overdraft of Shs.
57520.During the month, the following transactions took place

1/1/2011 cash sales shs.21800 were made

4/1/2011 A debtor settled his account of shs. 90,000 by cheque

10/1/2011 paid salaries shs. 40,000 in cash

12/1/2011 Took cash shs.3500 to settle a personal debt

23/1/2011 Received a cheque shs.8460 from Nganda wholesalers after allowing a 6% cash
discount

24/1/2011Deposited shs. 10,000 in the bank from office cash

25/1/2011purchased stock worth shs.8950 on credit from Ngumo wholesalers

26/1/2011 cash sales banked directly shs. 38,000

27/1/2011 A cheque received on 4th from a debtor was dishonored

29/1/2011 Settled creditors account of shs.6000 by cheque less 3% cash discount

31/1/2011Banked all cash except shs.40000

Required: Prepare a three column cashbook dully balanced (10marks)

3. a) Explain five characteristics of land as a factor of production (10marks)
b) The following trial balance was extracted from the books of opwora traders

OPWORA TRADERS
TRIAL BALANCE
AS AT 31/12/2124
DETAILS DR CR
Premises 800,000
Debtors 600000
Creditors 820,000
Motor vehicle 850,000
Equipment 500,000
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Gross profit 1,900,000
Furniture 350,000
Stock 70,000
Bank 200,000
Cash in hand 150,000
General expenses 117,000
Discount received 66,000
Commission allowed 12,000
Insurance 7,000
Lighting 4,500
Salaries 78,000
Rent 52500
Capital 900,000
3738500 3738500

Required: Prepare a) A profit and loss account

b) A balance sheet (10marks)

4. a) Explain five factors that influence the choice of a channel of distribution for products (10marks)
b) Explain five advantages of overpopulation to a country (10marks)
5. a) Differentiate between a public limited company and a private limited company (10marks)
b) The table below show demand and supply schedules for product A in a week (10marks)

PRICE(SHS.) QUANTITY DEMANDED QUANTITY SUPPLIED

35 5 80
30 10 65
25 20 55
20 25 40
15 30 35
10 40 20
5 55 5
Using the information in the table above, draw the demand and supply curves showing the market
equilibrium for the produce. Clearly indicate the equilibrium point (e0) on the graph, state the
equilibrium price and equilibrium quantity (10marks)

6. a) Explain five roles of African Development Bank (10marks)

b) i) Explain the procedure of taking an insurance policy (5marks)

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ii) A car valued at kshs.2000,000 was insured for kshs. 1,200,000 against accident. Accident occurred
and the car was damaged to the tune of 10% of its value. Determine the value of compensation given
to the owner of the car (5marks)

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 COASTAL REGION

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NAME………………………………………….……………… INDEX NO…………CLASS……….

ADM……………………….DATE…………................................................SIGN………….……….

565/1

BUSINESS STUDIES

PAPER 1

TIME 2 HOURS

COASTAL REGION SCHOOLS’ JOINT

PREMOCKS
Kenya Certificate of Secondary Education (K.C.S.E)

INSTRUCTIONS TO CANDIDATES

1. Write your name and index number in the spaces provided above
2. Write the date of examination and sign in the spaces provided above
3. Answer all the questions
4. All answers should be written in the spaces provided
5. Candidates should ensure that no questions are missing
6. Candidates should answer the questions in English.

For examiners use only

Question 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22

Marks

Question 23 24 25 TOTAL

MARKS
Marks

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1. Outline four causes of business failure (4 marks)

a.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

b.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

c.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

d.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

2. Outline four circumstances under which goods can be transported using containers (4marks)

a.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

b.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

c.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

d.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

3. Highlight four characteristics of money (4marks)

a.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

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b.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

c.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

d.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

4. State the type of product market described below (4 marks)

a. Buyers and sellers have perfect knowledge of the market ………………………………………………………….

b. Only one seller in the industry ………………………………………………………………………………………..

c. Many sellers dealing with differentiated products which are close substitutes ……………………………………..

d. Few sellers and many buyers …………………………………………………………………………………………..

5. Mention four characteristics of a good filing system (4 marks)

a.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

b.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

c.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

d.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

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6. Highlight three uses of ledger accounts (3 marks)

a.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

b.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

c.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

7. State the term given to each of the following statements as used in business studies (4marks)

Statement. Term
a. Movement of goods and services from the producer to consumer………………………………………………….

b. Creation of goods and services.……………………………………………………………………………………….

c. Using a good or service .………………………………………………………………………………………………

d. Satisfaction derived from using a good or service .…………………………………………………………………

8. Highlight four circumstances under which a partnership may be dissolved. (4 marks)

a.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

b.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

c.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

d.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

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9. Taxation is the main source of public revenue. Highlight four demerits of taxation (4 marks)

a.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

b.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

c.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

d.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

10 .The following information was extracted from the books of Wembe traders (5 marks)

Capital Ksh. 1,119,300

Long term liabilities Ksh. 1,807,000

Current Liabilities. Ksh 978,700

Determine Wembe traders rate of return on capital employed if the business made a net profit of Ksh. 438,945

11. Outline four channels of distribution of imported sugar (4marks}

a.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

b.
…………………………………………………………………………………………………………………………………

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…………………………………………………………………………………………………………………………………

c.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

d.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

12. Miundo Academy's bus was involved in an accident. Highlight five steps the school should take while claiming for
compensation (5marks)

…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

13. State four characteristics of capital as a factor of production. (4marks)

a.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

b.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

c.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

d.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

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14. Highlight four types of demand of a commodity. (4 marks)

a.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

b.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

c.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

d.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

15. Sacco's have become very popular in Kenya today. Outline four reasons behind their popularity (4 marks)

a.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

b.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

c.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

d.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

16. Outline four advantages of open office layout. (4 marks)

a.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

b.
…………………………………………………………………………………………………………………………………

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…………………………………………………………………………………………………………………………………

c.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

d.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

17. The following information relates to Nyandarua stores as at 31/12/2023

Cash sh. 70,000

Creditors sh. 22,000

Bank overdraft sh. 5000

Furniture and fittings sh. 105,000

Premises sh. 50,000

Cash at bank sh. 33 000

AFC loan Sh. 120,000

Prepare a balance sheet as at 31/12/2023 (5 marks)

18. State the level of production that matches the following occupations

Occupation Level of production

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a. Carpentry ..………………………………………………………

b. Lumbering …………………………………………………………

c. Fishing …………………………………………………………

d. Banking ……………………………………………………………

19. Outline four methods of government involvement in business. (4 marks)

a.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

b.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

c.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

d.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

20. Outline three causes of unemployment in Kenya (3marks)

a.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

b.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

c.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

21. State four classification of goods produced in an economy (4 marks)

a.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

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b.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

c.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

d.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

22. State three motives that would make a person retain part of his wealth in cash (3marks)

a.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

b.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

c.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

23. State four sources of a business idea. (4 marks )

a.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

b.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

c.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

d.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

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24. State the account to be debited and credited from the following transactions (4 marks)

Transaction. Debit. Credit

a. Bought a motor van in cash sh. 700,000 …………………. ……………………………..

b. Paid Maina by cheque sh. 6,000 …………………… ……………………………..

c. Converted his house to a business premises ……………………. ……………………………..

d. Took sh. 7,000 from the bank for business use ……………………… ………………………………..

25. Highlight four internal diseconomies of scale to a firm as a result of expansion. (4 marks)
a.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

b.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

c.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

d.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

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NAME………………………………………….……………....INDEX NO……..……………..…………….
ADM……………………………….DATE…………................................................SIGN………….……….

565/2
BUSINESS STUDIES
PAPER 2
TIME: 2½ HOURS

COASTAL REGION SCHOOLS’ JOINT

PREMOCKS
Kenya Certificate of Secondary Education (K.C.S.E)

INSTRUCTIONS TO CANDIDATES
a) Write your name and index number in the spaces provided above.
b) Write the date of examination and sign in the spaces provided above.
c) This paper consists of 6 questions.
d) Answer any five questions.
e) All questions carry equal marks.
f) Candidates should check to ensure that all pages are printed as indicated and no questions are missing.

FOR EXAMINER’S USE ONLY

Question Maximum score Candidate’s score
20

20

20

20

20

20

Total score

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1. a) Explain five factors that may promote entrepreneurship in Kenya. (10 Marks)
b) There has been a decline in demand for leather jackets, explain five factors that may have caused
this. (10 Marks)

2. a) Explain five positive effects of inflation to the economy. (10 Marks)

b) Explain five causes of balance of payments disequilibrium. (10 Marks)

3. a) Explain five benefits that a private limited company may enjoy by changing to a public limited
company. (10 Marks)
b) Explain the functions of the following documents as used in home trade (10 Marks)
i). Invoice
ii). Debit note
iii). Credit note
iv). Receipt
v). Statement of account

4. a) The following trial balance relates to XYZ ltd.

XYZ limited
Trial Balance
As at 31st Dec. 2013.

Details Dr CR
Kshs Kshs
Capital 800,000

Opening stock 200,000

Purchases 680,000
Returns 50,000 80,000
Discount 80,000 45,000
Carriage inwards 42,000
Debtors and creditors 200,000 105,000
Sales 1,200,000
Motor vehicles 750,000
Furniture and fittings 250,000
Rent 50,000 60,000
Bank overdraft 42,000
Carriage outwards 30,000
Additional information:
Closing stock was valued at shs. 80,000

Required:
Prepare XYZ limited Trading, profit and loss account (10 Marks)

b) Explain any five sources of public finance (10 Marks)

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5. a) Describe five types of advertising techniques used in product promotion. (10 Marks)
b) Explain five advantages of a bonded warehouse to the importer. (10 Marks)

6. a) Describe five government-initiated methods that help in the protection of consumers from
exploitation by dishonest traders (10 Marks)

b) The following opening balances were extracted from the books of Masinga Traders on 1st May
2023
Details sh
Furniture 56,000
Capital 80,000
Creditors 20,000
Debtors 25,000
Bank 11,000
Cash 8,000

The following transactions took place in the course of the month:

- Paid a creditor sh 4,500 in cash
- Took sh 3,000 from the bank for family use
- Bought stock sh 18,600 on credit
- Acquired a 10 year bank loan sh 165,000 which was credited to the business bank account
- Purchased land worth sh 82,000 paying by cheque
- Converted a family table worth sh 55000 to business use
- Received sh 7,300 in cash from debtor.
Required: Prepare Masinga Traders Balance sheet at the end May 2023. (10 Marks)

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 EASTERN REGION

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NAME…………………………………………………………... ADM NO……………….…

SCHOOL………………………………………………………CANDIDATE’S SIGN…………

FORM………………………………………………………… DATE…………………………

565/1
BUSINESS STUDIES
PAPER 1
TIME: 2 HOURS

EASTERN REGION SCHOOLS’

JOINT PREMOCKS
FORM FOUR EXAM
Kenya Certificate of Secondary Education (K.C.S.E)
INSTRUCTIONS TO CANDIDATES
1. This question paper consists of 25 questions
2. Answer all the questions
3. All answers must be written in the spaces provided in the booklet
4. Do not remove any pages from the booklet
5. This paper consists of 9 printed pages
6. Candidates should check the question paper to ascertain that all the pages are printed as
indicated and no questions are missing
FOR EXAMINERS USE ONLY

TOTAL MARKS

1. Outline four ways in which a good business structure is of benefit to a business structure
(4mks)
i)……………………………………………………………………………………………

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 ii)……………………………………………………………………………………………
iii)…………………………………………………………………………………………...
iv)…………………………………………………………………………………………...
2. Outline four characteristics of secondary wants
i)……………………………………………………………………………………………
ii)……………………………………………………………………………………………
iii)…………………………………………………………………………………………...
iv)…………………………………………………………………………………………...
3. Outline four measures the government of Kenya has taken to reduce road carnage (4mks)
i)……………………………………………………………………………………………
ii)……………………………………………………………………………………………
iii)…………………………………………………………………………………………...
iv)…………………………………………………………………………………………...
4. Outline four sources of a monopoly power to a business firm (4mks)
i)……………………………………………………………………………………………
ii)……………………………………………………………………………………………
iii)…………………………………………………………………………………………...
iv)…………………………………………………………………………………………...
5. State four uses of journal in a business (4mks)
i)……………………………………………………………………………………………
ii)……………………………………………………………………………………………
iii)…………………………………………………………………………………………...
iv)…………………………………………………………………………………………...
6. Highlight four factors that may make an insurer to charge high premium (4mks)
i)……………………………………………………………………………………………
ii)……………………………………………………………………………………………
iii)…………………………………………………………………………………………...
iv)…………………………………………………………………………………………...

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7. Using a diagram illustrate how a decrease in quantity demanded occurs while holding all
factors constant apart from price (4mks)

8. Outline four factors that determine the amount of money that an individual may hold in
order to meet unexpected expenses (4mks)
i)……………………………………………………………………………………………
ii)……………………………………………………………………………………………
iii)…………………………………………………………………………………………...
iv)…………………………………………………………………………………………...
9. The following information was extracted from Kiaga Business Enterprise on 31/12/2024
i) Total assets sh. 427,500, Total liabilities sh. 48,000
ii) Additional capital introduced was sh. 24,000
iii) Drawings made during the year was sh. 2,000
iv) Net profit was sh. 34,500
Required: Determine the net worth of the business at the beginning of the year
(4mks)

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10. Outline four benefits of inflation to an economy (4mks)
i)……………………………………………………………………………………………
ii)……………………………………………………………………………………………
iii)…………………………………………………………………………………………...
iv)…………………………………………………………………………………………...
11. List four components of business plan (4mks)
i)……………………………………………………………………………………………
ii)……………………………………………………………………………………………
iii)…………………………………………………………………………………………...
iv)…………………………………………………………………………………………...
12. State four classifications of partners (4mks)
i)……………………………………………………………………………………………
ii)……………………………………………………………………………………………
iii)…………………………………………………………………………………………...
iv)…………………………………………………………………………………………...
13. Highlight four limitations posed by the use of National income statistics as a way of
comparing the living standards of people for different countries (4mks)
i)……………………………………………………………………………………………
ii)……………………………………………………………………………………………
iii)…………………………………………………………………………………………...
iv)…………………………………………………………………………………………...
14. Indicate the effects of the following transactions on balance sheet total using decrease,
increase or no effect (4mks)
Transaction Effect
a) Bought machinery on credit …………………….
b) Withdrew cash from the bank for office use …………………….
c) Paid creditor Juma by cash …………………….
d) Bought an additional furniture into the business …………………….
15. Outline four positive effects of high population in a country (4mks)
i)……………………………………………………………………………………………
ii)……………………………………………………………………………………………
iii)…………………………………………………………………………………………...
iv)…………………………………………………………………………………………...

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16. Highlight four reasons for training business people (4mks)
i)……………………………………………………………………………………………
ii)……………………………………………………………………………………………
iii)…………………………………………………………………………………………...
iv)…………………………………………………………………………………………...

17. The office should ensure that the organization’s property are protected and controlled.
Mention four ways that can be used (4mks)
i)……………………………………………………………………………………………
ii)……………………………………………………………………………………………
iii)…………………………………………………………………………………………...
iv)…………………………………………………………………………………………...
18. Identify the type of production activity associated (4mks)
Utility Production activities
i) Time
ii) Place
iii) Form
iv) Possession

19. Identify the documents described below as used in international trade (4mks)
Description Type of document
a) Enables the importer to get goods on credit
b) Shows that the prices charges on imported
goods are fair
c) Show the shipping charge of goods
d) Written by the exporter to his bank authorizing
resale of goods being exported after failure by the
importer to honour a bill of exchange

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20. Outline four ways in which Kenya is likely to benefit from a properly prepared
development plan (4mks)
i)……………………………………………………………………………………………
ii)……………………………………………………………………………………………
iii)…………………………………………………………………………………………...
iv)…………………………………………………………………………………………...
21. List four sources of open trade credit (4mks)
i)……………………………………………………………………………………………
ii)……………………………………………………………………………………………
iii)…………………………………………………………………………………………...
iv)…………………………………………………………………………………………...
22. State four circumstances under which an accountant communicates to the accounts clerks
(4mks)
i)……………………………………………………………………………………………
ii)……………………………………………………………………………………………
iii)…………………………………………………………………………………………...
iv)…………………………………………………………………………………………...
23. Outline four guidelines that should be followed by the government in its expenditure
(4mks)
i)……………………………………………………………………………………………
ii)……………………………………………………………………………………………
iii)…………………………………………………………………………………………...
iv)…………………………………………………………………………………………...
24. Highlight four factors that may influence a firm’s decision on type of goods to produce
(4mks)
i)……………………………………………………………………………………………
ii)……………………………………………………………………………………………
iii)…………………………………………………………………………………………...
iv)…………………………………………………………………………………………...

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25. The following balances were extracted from the books of Terah for the year ended 31st
December 2023
Opening stock 60,000
Cash in hand 120,000
Bank overdraft 50,000
Debtors 150,000
Creditors 130,000
Closing stock 90,000

Calculate;
i) Working capital (2mks)

ii) Current ratio (1mk)

(iii) Quick ratio (1mk)

THIS IS THE LAST PRINTED PAGE.

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NAME…………………………………………………………... ADM NO……………….…

SCHOOL………………………………………………………CANDIDATE’S SIGN…………

FORM………………………………………………………… DATE…………………………
565/2
BUSINESS STUDIES
PAPER 2
TIME: 2 ½ HOURS

EASTERN REGION SCHOOLS’

JOINT PREMOCKS
FORM FOUR EXAM
Kenya Certificate of Secondary Education (K.C.S.E)
INSTRUCTIONS TO CANDIDATES
1. Write your name and admission number in the spaces provided above
2. Write the name of your school and sign in the spaces provided above
3. This paper consists of six questions
4. Answer any five questions in the spaces provided at the end of question 6
5. Each question carries equal marks
6. Non-programmable silent electronic calculators may be used
7. This paper consists of 2 printed pages
8. Candidates should check the question paper to ascertain that all the pages are printed as indicated
and no questions are missing
9. Candidates should answer the questions in English
FOR EXAMINERS USE ONLY
Question Maximum Candidates
Score score
20
20
20
20
20
Total score 100

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1. a) Explain five circumstances that may lead to the existence of a business
opportunity to be exploited by the entrepreneur (10marks)

b) Explain five reasons why an effective filing system is important in a business

(10marks)
2. a) Explain five differences between chain stores and departmental stores (10marks)
b) Explain five elements of effective communication (10marks)
3. a) The following information was extracted from the books of Queenter Traders as
at 31st Dec 2023
Kshs
Sales x
Purchases 500,000
Return inwards 90,000
Return 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 (1ST Jan 2023) 100,000
Interest expenses 10,000
Bad debts 7,000
Stock (31st Dec 2023) 188,000
Bank overdraft 4,000
Discount received 4,000
Capital 170,000

Additional information:
Gross profit margin is stated at 40%

Required :
i) Prepare a trading, profit and loss account for the year ended 31st Dec,2023
(10marks)

ii) Compute the rate of stock turnover (2marks)

b) Explain four methods of determining the price of a product other than government
interaction measures (8marks)
4. a) Explain five benefits a wholesaler may get if he operates his own warehouse
(10marks)
b) Outline five demerits of direct taxes (10marks)
5. a) Discuss five causes of unfavourable balance of payment for developing countries
(10marks)
b) Describe five channels of distribution that a Kenyan manufacture would use to
ensure her goods reach consumers in another country (10marks)

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6. a) Explain four factors that may hinder the development of a country (8marks)
st
b) The following balances relate to Karonji stores as at 31 November 2023
Land and buildings 1,200,000
Motor vehicle 600,000
Stock 120,000
Trade debtors 50,000
During the week ending 7th Dec 2023 the following transactions took place December 2nd
bought stock on credit 80,000
3rd – sold stock on credit 62,000
6th – received 100,000 cash from debtors
Required: Open the relevant ledger entries, balance them and extract a trial balance as at
7th December 2023 (12marks)
………………………………………………………………………………………………………
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THIS IS THE LAST PRINTED PAGE.

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 NAIROBI REGION

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NAIROBI REGION SCHOOLS’ JOINT
PREMOCKS
Kenya Certificate of Secondary Education.

565/1 BUSINESS STUDIES Paper 1

2 hours

Name: …………………………………………………… Adm No.: ……………… Class …………..

Candidate’s Signature: ………………………………... Date: ………………………………………

Instructions to Candidates

(a) Write your name and index number in the spaces provided above.
(b) Sign and write the date of the examination in the spaces provided.
(c) Answer all the questions.
(d) All answers must be written in the spaces provided in this booklet.
(e) Do not remove any pages from this booklet.
(f) This paper consists of 10 printed pages.
(g) Candidates should check the question paper to ascertain that all the pages are
printed as indicated and that no questions are missing.

For Teacher’s Use Only

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

16 17 18 19 20 21 22 23 24 25
TOTAL
MARKS

M
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 1. Classify the following resources as either natural, man-made or human (4mks)

Resources Classification
a) Carpenters
b) Chapati
c) Climate
d) Tractor

2. State four reasons for the privatization of state corporations. (4mks)

………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………

3. The table below shows the price, quantities demanded and quantities supplied of a product
in a market.

Month July August September October November December

Price 3,000 3,000 3,000 3,000 3,000 3,000
Quantity 18,500 21,030 24,200 26,600 29,020 32,300
Demanded
Quantity 21,700 23,000 27,100 31,500 34,800 38,710
supplied

Give four reasons for the change in quantities supplied from July to December. (4mks)

………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………

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 4. Outline four uses of a General journal. (4mks)

………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
5. In the spaces below, indicate the type of utility created by each of the following commercial
activities. (4mks)

Commercial activity Type of utility

a). Buying bread from the canteen
b). Distributing milk to customers
c). Warehousing
d). Grinding maize to flour

6. Outline four ways in which mass media can protect consumers from exploitation. (4mks)

………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………

7. Highlight three ways in which the producers may conserve the environment as they carry
out their activities. (3mks)

………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………

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 8. The following information relates to Koimur stores.
Ksh.
Fixed assets 681,500
Current Liabilities 99,700
Current Assets 286,650
Capital 468,450
Sales 920,000
Long term liabilities 400,000
Gross profit 120,000
Calculate:
a). Working capital (1mk)
b). Capital employed (1mk)
c). Mark up (2mks)
d). Margin (1mk)

………………………………………………………………………………………………
………………………………………………………………………………………………
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………………………………………………………………………………………………

9. Outline four advantages of hire purchase terms of sale to a buyer. (4mks)

………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………

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 10. Highlight four benefits of transport to a trader. (4mks)

………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………

11. Outline four sources of monopoly power. (4mks)

………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………

12. Give four features that a commodity must have to perform as money. (4mks)

………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………

13. Outline four benefits to a producer who owns his own warehouse. (4mks)

………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………

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 14. State four reasons why a producer would sell her products directly to consumers. (4mks)

………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………

15. State four non tax sources of public finance. (4mks)

………………………………………………………………………………………………
………………………………………………………………………………………………
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………………………………………………………………………………………………
………………………………………………………………………………………………

16. Describe the meaning of the following insurance policies. (4mks)

a) Endowment policy

………………………………………………………………………………………………
………………………………………………………………………………………………

b). Comprehensive motor policy

………………………………………………………………………………………………
………………………………………………………………………………………………

c). Constructive total loss policy

………………………………………………………………………………………………
………………………………………………………………………………………………

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 d). Public liability policy

………………………………………………………………………………………………
………………………………………………………………………………………………
17. Identify the injections and withdrawals in the circular flow of income diagram below.
(4mks)

A B

HOUSEHOLD FIRMS

C D
A) ………………………………………………………………………………………
B) ………………………………………………………………………………………
C) ………………………………………………………………………………………
D) …………………………………………………………………………………………

18. The average consumer price of a loaf of bread for various years is shown below.

Year Consumer price (Ksh) Consumer price index

2020 40 100
2021 50
2022 55
2023 60
2024 65

If the consumer price index for the year 2020 is 100%. Calculate the consumer price
index for using 2020 as the base year. (4mks)

19. Outline four reasons why producers need to observe ethics in product promotion. (4mks)

………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………

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 ………………………………………………………………………………………………
………………………………………………………………………………………………

20. Describe the following types of unemployment in an economy. (4mks)

a). Seasonal unemployment

………………………………………………………………………………………………
………………………………………………………………………………………………
b). Involuntary unemployment
………………………………………………………………………………………………
………………………………………………………………………………………………
c). Frictional unemployment
………………………………………………………………………………………………
………………………………………………………………………………………………
d). Voluntary unemployment
…………………………………………………………………………………………….
………………………………………………………………………………………………

21. From the table below, identify the term of sale described as used in international trade.
(4mks)

Description Term of sale

a). The price quoted includes all expenses incurred until
the goods are delivered in the bonded warehouse.
b). The exporter is willing to accept the quoted price or
any other nearest to the quoted one.
c). Price quoted includes transport expenses up to the
docks as well as dock charges, loading onto the ship
and any other expense are paid by the importer.
d). Price quoted includes all expenses up to the port of
destination as well as unloading charges.

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 22. State the effect of the following transactions on the balance sheet totals by writing increase,
decrease, or no effect in each case. (4mks)

Transactions Effect
a). Purchased stock on credit sh. 10,000
b). Withdrew stock worth sh. 2,000 for family use.
c). Paid a creditor sh. 7,000 by cheque
d). Took a cooperative loan sh. 30,000 and deposited in
bank account.

23. Outline four benefits to a country that prepares development plans. (4mks)

………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………

24. Outline four ways in which the technological environment may positively influence a
business. (4mks)

………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………

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 25. The following transactions took place in the business of Highlands’s retail shop in the
month of June 2023.
June 1: Commenced business with Ksh. 120,000 in cash.
June 4: Transferred Ksh. 66,000 from business till to the bank.
June 13: Brought his private furniture worth Ksh. 15,000 in the business.
June 28: Borrowed a loan from ABC bank in cash Ksh. 40,000
Required: Open ledger accounts to record the above transactions. (4mks)

………………………………………………………………………………………………
………………………………………………………………………………………………
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………………………………………………………………………………………………
………………………………………………………………………………………………

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565/2
BUSINESS STUDIES
PAPER 2
TIME: 2 ½ HOURS

NAIROBI REGION SCHOOLS’

JOINT PREMOCKS

Kenya Certificate of Secondary Education (K.C.S.E.)

565/2
Business Studies
Paper 2

Instructions for candidates:

- This paper consists of six questions
- Answer any five questions.
- Write your answers in the answer booklet provided.
- All questions carry equal marks.
- Candidates should check the questions paper to ascertain that all pages are
printed as indicated and that no questions are missing.

For Examiners Use Only

1 2 3 4 5 6

a)

b)

TOTAL SCORE

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1. (a) Explain five documents used in home trade that are sent by the seller to the buyer
(10 marks)
(b) Wamae enterprise runs a general merchandise business. The transactions during the
month of august 2023 were as follows:

2023

August 1: The business bought goods worth sh. 80,000 on credit from silver stores.
August 4: Sold goods on credit to Nandi traders sh. 60,000.
August 8: Sent Nandi traders a credit note for goods returned. Which was valued at
sh.27,000.
August 10: Sold goods on credit to Otieno sh. 60,000.
August 12: Purchased goods from Nandwa Ltd for sh. 120,000 on credit.
August 15: Purchased goods on credit from Njeri for sh. 30,000.
August 16: Sent Otieno a credit note for goods returned worth sh. 6,000.
August 18: Nandwa ltd sent us a credit note for sh. 30,000.
August 19: received a credit note from silver store worth sh. 20,000
Required:
Prepare the relevant journals to record the above transactions (10 marks)

2. (a) Explain five factors that a school Principal would consider when choosing a means of
communication to invite parents for an academic day. (10marks)

(b) Outline five uses of national income statistics in an economy. (10 marks)

3. (a) Other than the forces of demand and supply explain other five ways in which prices
of products can be determined in a market. (10 marks)
(b) Explain five benefits of economic integration to a country (10 marks)

4. (a) Explain five factors to consider when determining the location of a firm (10marks)
(b) Outline five differences between a commercial bank and non-bank financial
institutions. (10 marks)
5. (a) Explain Five Factors that can lead to the success of a Business. (10 Marks)
(b) Explain five measures that can be used to control demand pull inflation . (10 marks)

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6. (a) Explain four circumstances that may lead to dissolution of a public limited company.
(8 marks)
(b) The following balances were extracted from the books of Koilegen Traders on 1st
October 2022. (12 marks)

Sh.
Capital 4,200,000
Creditors 1,330,000
Motor Van 1, 800,000
Furniture 1,500,000
Stock 500,000
Debtors 780,000
Cash 40,000
Bank 2,000,000
ABSA bank loan 1,090,000

The following transactions took place in the month of October 2022.

a) Sold some furniture Sh. 710,000 for which Sh. 440,000 cash was received and the
balance was to be paid later.
b) Bought goods Sh. 950,000 and paid Sh. 620,000 by cheque and the balance was to be
paid later.
c) The proprietor took Sh. 120,000 cash to pay his child school fees.
d) Sold goods worth Sh. 1,100,000 for Sh. 1,900,000 by cheque.

Required:
Draw Koilegen Traders balance sheet as at 31st October 2022 and show the items in the
relevant classes.

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 NORTH EASTERN
REGION

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 Page 1 of 10

NORTH EASTERN REGION

SCHOOLS’ JOINT PREMOCKS
Kenya Certificate of Secondary Education
565/1 BUSINESS STUDIES PAPER 1
TIME: 2 Hours
Name: ……………………………… Admission No: ……… School: ………………

Stream: ……………………….. Signature: ………......... 565/1 – BUSINESS STUDIES

Afternoon
2.00-4.00pm

Instructions to candidates
a) Write your Name, Admission number, Name of School and Stream in the spaces provided
above.
b) Sign in the space provided above.
c) Answer ALL the questions in the spaces provided.
d) This paper consists of 9 printed pages.
e) Candidates should check the question paper to ascertain that all the pages are printed as
indicated and that no questions are missing.
f) Candidates should answer the questions in English.

For Examiners’ Use Only

Question 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Marks

Question 16 17 18 19 20 21 22 23 24 25 Total

Marks

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 Page 2 of 10

1. Define the following disciplines as used in business studies. (4 marks)

a) Accounting

…………………………………………………………………………………………..…………

………………………………………………………………………………………………..……

b) Commerce

…………………………………………………………………………………………….…….…

…………………………………………………………………………………………………….

c) Economics

…………………………………………………………………………………………….………

…………………………………………………………………………………………………….

d) Entrepreneurship

……………………………………………………………………………………………..………

……………………………………………………………………………………………………..

2. State whether each of the following falls under manufacturing or constructive production.

(3 marks)

Activity Manufacturing or constructive production

a) Food processing

b) House building

c) Cloth making

3. State four factors that limits use of credit cards. (4 marks)

a) ……………………………………………………………………………………………..………

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 Page 3 of 10

b) ……………………………………………………………………………………………..………

c) ……………………………………………………………………………………………..………

d) ……………………………………………………………………………………………………..

4. State four ways in which economic environment may lead to business success. (4 marks)

a) ………………………………………………………………………………………..……………

b) ………………………………………………………………………………………..……………

c) ……………………………………………………………………………………..………………

d) ……………………………………………………………………………………………………..

5. Outline four circumstances under which a trader would use containers to transport goods.

(4 marks)

a) …………………………………………………………………………………..…………………

b) ……………………………………………………………………………..………………………

c) ……………………………………………………………………………..………………………

d) ……………………………………………………………………………………………………..

6. Outline four statistics that are associated with the measurement of national income using the

income approach. (4 marks)

a) …………………………………………………………………..…………………………………

b) …………………………………………………………………..…………………………………

c) ……………………………………………………………..………………………………………

d) ……………………………………………………………………………………………………..

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 Page 4 of 10

7. The diagram below shows the current supply of hides. (4 marks)

Price S

Pe

O Qe Quantity

a) What is the effect of a decrease in the price of beef on the supply for hides? (1 mark)

…………………………………………………………………………………………………

b) Draw a new supply curve on the diagram above to show the effect of a decrease in price of

beef on the supply for hides. (3 marks)

8. Highlight four ways through which the government may protect consumers from exploitation

by unscrupulous traders. (4 marks)

a) …………………………………………………………………………………………..…………

b) ……………………………………………………………………………………………..………

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 Page 5 of 10

c) ………………………………………………………………………………………..……………

d) ……………………………………………………………………………………………………..

9. The following information was extracted from the books of Mawindo Traders for the month of

September 2015.

Credit notes received Kshs

September 2015; 3 Nithi 4,000

4 Grace 190,000

a) Give the transactions that took place on; (2 marks)

3rd……………………………………………………………………………………….…...…

…………………………………………………………………………………………………

4th…………………………………………………………………………………………....…

…………………………………………………………………………………………………

b) Record the above transactions in the relevant ledger accounts. (2 marks)

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 Page 6 of 10

10. Outline four circumstances under which a manufacturer would not require a lot of warehousing

facilities. (4 marks)

a) ……………………………………………………………………………………………..………

b) ………………………………………………………………………………………..……………

c) ………………………………………………………………………………………..……………

d) ……………………………………………………………………………………………………..

11. Highlight four ways through which entrepreneurs contribute to growth of an economy.

(4 marks)

a) …………………………………………………………………………………………..…………

b) …………………………………………………………………………………………..…………

c) …………………………………………………………………………………………..…………

d) ……………………………………………………………………………………………………..

12. In the table below, name the type of error made in each of the given transactions. (4 marks)

Transaction Type of error

a) A debtor for sh.25,000 settled her account by cheque less

5% cash discount. The only records that were made was in
respect of cheque received
b) An invoice for sh.750,000 received from Kasim was
recorded in the affected accounts as sh.570,000
c) Sale of old office furniture was recorded in sales account

c) Payment of sh.4,000 to Muinamo was recorded in Munene’s

account

13. Give four disadvantages of along chain of distribution of goods to a customer. (4 marks)

a) …………………………………………………………………………………………..…………

b) …………………………………………………………………………………………..…………

c) …………………………………………………………………………………………..…………

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 Page 7 of 10

d) …………………………………………………………………………………….……………….

14. Name four ways of reproducing documents in an office. (4 marks)

a) …………………………………………………………………………………………..…………

b) …………………………………………………………………………………………..…………

c) …………………………………………………………………………………………..…………

d) ……………………………………………………………………………………………………..

15. Identify the type of advertisement given by the following descriptions. (4 marks)

Description Type of advertisement

a) Creates awareness of the product

b) Promotes the name of the manufacturer

c) Famous sperson is used in advertisement

d) Promotes a particular brand of a product

16. Highlight four measures to control demand pull inflation. (4 marks)

a) ………………………………………………………………………………………..……………

b) ……………………………………………………………………………………..………………

c) ……………………………………………………………………………………..………………

d) ……………………………………………………………………………………………………..

17. Give four reasons why Less Developed Countries are reluctant in implementing Free Trade

Agreements. (4 marks)

a) ……………………………………………………………………………………..………………

b) ……………………………………………………………………………………..………………

c) ……………………………………………………………………………………..………………

d) ……………………………………………………………………………………………………..

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 Page 8 of 10

18. Outline four negative effects that may be associated with unemployment. (4 marks)

a) ……………………………………………………………………………………………..………

b) ………………………………………………………………………………………………..……

c) ……………………………………………………………………………………………..………

d) ……………………………………………………………………………………………………..

19. Outline four services that the Central Bank of Kenya may offer to commercial banks.

(4 marks)

a) ……………………………………………………………………………………………..………

b) ……………………………………………………………………………………………..………

c) …………………………………………………………………………………………..…………

d) ……………………………………………………………………………………………………..

20. A car worth sh. 2,000,000 was insured against an accident for sh. 1,500,000. The car was

involved in an accident and the remains were worth sh. 600,000. Calculate the amount of

compensation. (4 marks)

21. Outline four advantages of using courier services in sending mail and parcels. (4 marks)

a) ……………………………………………………………………………………………..………

b) ………………………………………………………………………………………..……………

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 Page 9 of 10

c) ……………………………………………………………………………………………..………

d) ……………………………………………………………………………………………………..

22. The following information relates to Kanga Traders for the period ended 1/11/202.

Shs

Stock 31/12/2022 23,000

Turnover 65,000
Stock 1/11/2023 35,000
Gross profit 20,000
Expenses 10,000
Prepare Trading, Profit and Loss account. (5 marks)

23. State four ways in which the running of public corporations may be improved. (4 marks)

a) ………………………………………………………………………………………………..……

b) ……………………………………………………………………………………….…….………

c) ……………………………………………………………………………………………..………

d) ……………………………………………………………………………………………………..

24. Give four types of external diseconomies of scale. (4 marks)

a) …………………………………………………………………………………….…….…………

b) ……………………………………………………………………………………….….…………

c) ……………………………………………………………………………………….….…………

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 Page 10 of 10

d) …………………………………………………………………………………………..……..…..

25. The following balances were extracted from the books of Atieno Enterprises as at 30th June

2023.

Item Kshs.
Furniture 80,000
Salaries advance 25,000
Debtors 45,000
Creditors 65,400
Prepaid rent 3,000
Cash 190,000

Prepare a balance sheet showing total fixed assets, total current assets, total current

liabilities. (4 marks)

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 Page 1 of 15

NORTH EASTERN REGION SCHOOLS’

JOINT PREMOCKS
Kenya Certificate of Secondary Education
565/2 BUSINESS STUDIES PAPER 2
TIME: 2½ Hours
Name: ………………………………… Admission No: ……… School: …………….

Stream: ……………………….. Signature: ………......... 565/2 – BUSINESS STUDIES

Afternoon
2.00-4.30pm

INSTRUCTIONS TO CANDIDATES.

a) Write your Name, Admission number, Name of the School, and Stream in the spaces provided.
b) Sign in the space provided.
c) This paper consists of six questions.
d) Answer any five questions.
e) All answers must be in English.
f) This paper consists of 14 printed pages.
g) Candidates should check the question paper to ensure that all pages are printed as indicated and that
no questions are missing.

For examiner’s use only.

Question Maximum score Candidates score

1 20

2 20

3 20

4 20

5 20

6 20

Total score. 100

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 Page 2 of 15

Answer any five questions.

1. a) Highlight five differences between Direct Production and Indirect Production. (10 marks)

b) Explain five reasons why the use of carts is not popular within your area. (10 marks)

2. a) Explain five benefits of locating similar firms in one particular area. (10 marks)

b) Explain five reasons for imposing trade restrictions. (10 marks)

3. a) On 1st July 2023, Kaluma General Stores had Sh. 20,000 cash and a bank overdraft of Sh.45,000.

During the month the following transactions took place.

2023:

July 2 : Cash sales banked directly Sh. 40,360.

“ 4 : Bought furniture worth Sh. 5,600 cash.

“ 6 : Received a cheque of Sh. 17,300 from Omundu after allowing him a cash discount of

Sh.3,700.

“ 9 : Paid Matayo, a creditor Sh. 65,800 by cheque after deducting 6% cash discount.

“ 14 : Paid salaries Sh. 8,000 in cash.

“ 17 : Omondi, a debtor settled his account of Sh. 105,000 by cheque less 10% cash discount.

“ 24 : Withdrew Sh.50,000 from bank for office use.

“ 28 : Purchased goods worth Sh. 20,000 cash.

“ 30 : Banked all cash except Sh. 3,000.

Required.

Prepare a three-column cashbook of Kaluma General Stores for the period ending 31st July 2023.

(12 marks)

b) Explain four circumstances under which a buyer may return goods to the seller. (8 marks)

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 Page 3 of 15

4. a) Explain five roles of money in the economy of Kenya. (10 marks)

b) The diagram below shows changes in the supply curve.

Price.

SO

SI
SO

SI
Quantity.

Explain five factors that may have caused the shift from SoSo to S1S1. (10 marks)

5. a) Explain five circumstances under which a partnership may be dissolved. (10 marks)

b) The following transactions relate to Oletipis and sons Limited for the month of October 2023.

2023:

Oct. 5 : Sold goods on credit to Odongo at Sh. 70,000 and Achieng at Sh. 20,100.

“ 6 : Credit purchases from Muhindi Mweusi Stores worth Sh. 40,000.

“ 8 : Odongo returned goods worth Sh. 19,000.

“ 13 : Purchased goods on credit from Abdul Sh. 43,300 and Ojwang’ stores Sh. 50,050.

“ 15 : Goods were returned to Muhindi Mweusi Stores Sh.8,000 and Abdul Sh.3,450.

“ 26 : Credit sales to Omoyo Sh. 5,500, Nyamu sh.15,000 and Wanyama Sh. 13,000.

“ 31 : Goods worth Sh. 3,000 were returned by Achieng.

Required.

Prepare the relevant journals. (10 marks)

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 Page 4 of 15

6. a) Mwafaka construction limited wishes to purchase new office equipment. Explain five factors they

should consider when choosing an office equipment. (10 marks)

b) Explain five circumstances under which one would use personal selling to promote his/her

products. (10 marks)

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 NYANZA REGION

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NAME………………………………………….……………… INDEX NO…………CLASS……….

ADM……………………….DATE…………................................................SIGN………….……….

565/1

BUSINESS STUDIES

PAPER 1

TIME 2 HOURS

NYANZA REGION SCHOOLS’ JOINT

PREMOCKS
Kenya Certificate of Secondary Education (K.C.S.E)

INSTRUCTIONS TO CANDIDATES

1. Write your name and index number in the spaces provided above
2. Write the date of examination and sign in the spaces provided above
3. Answer all the questions
4. All answers should be written in the spaces provided
5. Candidates should ensure that no questions are missing
6. Candidates should answer the questions in English.

For examiners use only

Question 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22

Marks

Question 23 24 25 TOTAL

MARKS
Marks

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1. Outline four causes of business failure (4 marks)

a.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

b.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

c.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

d.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

2. Outline four circumstances under which goods can be transported using containers (4marks)

a.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

b.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

c.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

d.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

3. Highlight four characteristics of money (4marks)

a.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

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b.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

c.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

d.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

4. State the type of product market described below (4 marks)

a. Buyers and sellers have perfect knowledge of the market ………………………………………………………….

b. Only one seller in the industry ………………………………………………………………………………………..

c. Many sellers dealing with differentiated products which are close substitutes ……………………………………..

d. Few sellers and many buyers …………………………………………………………………………………………..

5. Mention four characteristics of a good filing system (4 marks)

a.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

b.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

c.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

d.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

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6. Highlight three uses of ledger accounts (3 marks)

a.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

b.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

c.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

7. State the term given to each of the following statements as used in business studies (4marks)

Statement. Term
a. Movement of goods and services from the producer to consumer………………………………………………….

b. Creation of goods and services.……………………………………………………………………………………….

c. Using a good or service .………………………………………………………………………………………………

d. Satisfaction derived from using a good or service .…………………………………………………………………

8. Highlight four circumstances under which a partnership may be dissolved. (4 marks)

a.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

b.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

c.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

d.
…………………………………………………………………………………………………………………………………

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…………………………………………………………………………………………………………………………………

9. Taxation is the main source of public revenue. Highlight four demerits of taxation (4 marks)

a.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

b.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

c.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

d.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

10 .The following information was extracted from the books of Wembe traders (5 marks)

Capital Ksh. 1,119,300

Long term liabilities Ksh. 1,807,000

Current Liabilities. Ksh 978,700

Determine Wembe traders rate of return on capital employed if the business made a net profit of Ksh. 438,945

11. Outline four channels of distribution of imported sugar (4marks}

a.
…………………………………………………………………………………………………………………………………

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…………………………………………………………………………………………………………………………………

b.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

c.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

d.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

12. Miundo Academy's bus was involved in an accident. Highlight five steps the school should take while claiming for
compensation (5marks)

…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

13. State four characteristics of capital as a factor of production. (4marks)

a.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

b.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

c.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

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d.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

14. Highlight four types of demand of a commodity. (4 marks)

a.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

b.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

c.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

d.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

15. Sacco's have become very popular in Kenya today. Outline four reasons behind their popularity (4 marks)

a.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

b.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

c.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

d.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

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16. Outline four advantages of open office layout. (4 marks)

a.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

b.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

c.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

d.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

17. The following information relates to Nyandarua stores as at 31/12/2023

Cash sh. 70,000

Creditors sh. 22,000

Bank overdraft sh. 5000

Furniture and fittings sh. 105,000

Premises sh. 50,000

Cash at bank sh. 33 000

AFC loan Sh. 120,000

Prepare a balance sheet as at 31/12/2023 (5 marks)

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18. State the level of production that matches the following occupations

Occupation Level of production

a. Carpentry ..………………………………………………………

b. Lumbering …………………………………………………………

c. Fishing …………………………………………………………

d. Banking ……………………………………………………………

19. Outline four methods of government involvement in business. (4 marks)

a.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

b.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

c.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

d.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

20. Outline three causes of unemployment in Kenya (3marks)

a.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

b.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

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c.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

21. State four classification of goods produced in an economy (4 marks)

a.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

b.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

c.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

d.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

22. State three motives that would make a person retain part of his wealth in cash (3marks)

a.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

b.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

c.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

23. State four sources of a business idea. (4 marks )

a.
…………………………………………………………………………………………………………………………………

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…………………………………………………………………………………………………………………………………

b.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

c.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

d.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

24. State the account to be debited and credited from the following transactions (4 marks)

Transaction. Debit. Credit

a. Bought a motor van in cash sh. 700,000 …………………. ……………………………..

b. Paid Maina by cheque sh. 6,000 …………………… ……………………………..

c. Converted his house to a business premises ……………………. ……………………………..

d. Took sh. 7,000 from the bank for business use ……………………… ………………………………..

25. Highlight four internal diseconomies of scale to a firm as a result of expansion. (4 marks)
a.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

b.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

c.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

d.
…………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………

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NAME………………………………………….……………....INDEX NO……..……………..…………….
ADM……………………………….DATE…………................................................SIGN………….……….

565/2
BUSINESS STUDIES
PAPER 2
TIME: 2½ HOURS

NYANZA REGION SCHOOLS’ JOINT

PREMOCKS
Kenya Certificate of Secondary Education (K.C.S.E)

INSTRUCTIONS TO CANDIDATES
a) Write your name and index number in the spaces provided above.
b) Write the date of examination and sign in the spaces provided above.
c) This paper consists of 6 questions.
d) Answer any five questions.
e) All questions carry equal marks.
f) Candidates should check to ensure that all pages are printed as indicated and no questions are missing.

FOR EXAMINER’S USE ONLY

Question Maximum score Candidate’s score
20

20

20

20

20

20

Total score

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1. a) Explain five factors that may promote entrepreneurship in Kenya. (10 Marks)
b) There has been a decline in demand for leather jackets, explain five factors that may have caused
this. (10 Marks)

2. a) Explain five positive effects of inflation to the economy. (10 Marks)

b) Explain five causes of balance of payments disequilibrium. (10 Marks)

3. a) Explain five benefits that a private limited company may enjoy by changing to a public limited
company. (10 Marks)
b) Explain the functions of the following documents as used in home trade (10 Marks)
i). Invoice
ii). Debit note
iii). Credit note
iv). Receipt
v). Statement of account

4. a) The following trial balance relates to XYZ ltd.

XYZ limited
Trial Balance
As at 31st Dec. 2013.

Details Dr CR
Kshs Kshs
Capital 800,000

Opening stock 200,000

Purchases 680,000
Returns 50,000 80,000
Discount 80,000 45,000
Carriage inwards 42,000
Debtors and creditors 200,000 105,000
Sales 1,200,000
Motor vehicles 750,000
Furniture and fittings 250,000
Rent 50,000 60,000
Bank overdraft 42,000
Carriage outwards 30,000
Additional information:
Closing stock was valued at shs. 80,000

Required:
Prepare XYZ limited Trading, profit and loss account (10 Marks)

b) Explain any five sources of public finance (10 Marks)

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5. a) Describe five types of advertising techniques used in product promotion. (10 Marks)
b) Explain five advantages of a bonded warehouse to the importer. (10 Marks)

6. a) Describe five government-initiated methods that help in the protection of consumers from
exploitation by dishonest traders (10 Marks)

b) The following opening balances were extracted from the books of Masinga Traders on 1st May
2023
Details sh
Furniture 56,000
Capital 80,000
Creditors 20,000
Debtors 25,000
Bank 11,000
Cash 8,000

The following transactions took place in the course of the month:

- Paid a creditor sh 4,500 in cash
- Took sh 3,000 from the bank for family use
- Bought stock sh 18,600 on credit
- Acquired a 10 year bank loan sh 165,000 which was credited to the business bank account
- Purchased land worth sh 82,000 paying by cheque
- Converted a family table worth sh 55000 to business use
- Received sh 7,300 in cash from debtor.
Required: Prepare Masinga Traders Balance sheet at the end May 2023. (10 Marks)

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 RIFT VALLEY REGION

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NAME………………………………………………………INDEX NO………………………………..…….
SCHOOL……………………………………………...…….CANDIDATE’SSIGNATURE………………..…
DATE……………………………………..

565 / 1
BUSINESS STUDIES
PAPER 1
TIME: 2 HOURS

RIFT VALLEY REGION SCHOOLS’

JOINT PREMOCKS
Kenya Certificate of Secondary Education (K. C.S.E.)
565 / 1
BUSINESS STUDIES
PAPER 1
TIME: 2 HOURS

INTRODUCTION TO CANDIDATES
i) Write your name and index no in the spaces provided above.
ii) Answer all the questions in the spaces provided below each question.
iii) Write your answers in English

For examiner’s use only

Question 1 2 3 4 5 6 7 8 9 10 11 12

Marks

Question 13 14 15 16 17 18 19 20 21 22 23 24

Marks

This paper consists of 8 printed pages. Candidates should check the question paper to ensure that all pages are printed as
indicated and no questions are missing

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 1. Give four disadvantages of a long chain of distribution of goods to a buyer (4 marks)

a) …………………………………………………………………………..
b) …………………………………………………………………………..
c) …………………………………………………………………………..
d) …………………………………………………………………………..

2. The following balances were extracted from Mwangaza traders books of accounts.
Shs.
Opening stock 25,000
Closing stock 35,000
Purchases 190,000
Mark - up 20%

Calculate:

i)Cost of sales (1mark)

ii)Gross profit (1 mark)

iii)Sales (1 mark)

iv)Rate of stock turnover (ROSTO) (1 mark)

3. For each of the following statements, give the type of unemployment described (4 marks)

Statements / Description Type of unemployment

a) Arise due to mismatch of skills and labour, market demands.
b) A person has absolutely nothing to do
c) Arises when there is a change in methods of production
d)Arises when the number of people exceeds those that are required

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4. List four documents prepared by the buyer in home trade. (4 marks)

a)…………………………………………………………………………..
b)…………………………………………………………………………..
c)…………………………………………………………………………..
d) …………………………………………………………………………..

5. Highlight four merits of direct tax as a source of revenue to the government (4 marks)

a) ………………………………………………………………………......
b) …………………………………………………………………………..
c) …………………………………………………………………………..
d) …………………………………………………………………………..

6. Outline four ways the economic environment influence business activities (4 marks)

a) ………………………………………………………………………………………….
b) ………………………………………………………………………………………….
c) ………………………………………………………………………………………….
d) …………………………………………………………………………………………..

7. Highlight four roles of advertising agencies in product promotion (4 marks)

a) …………………………………………………………………………….
b) ……………………………………………………………………………..
c) ……………………………………………………………………………..
d) ……………………………………………………………………………..

8. Highlight four ways in which the government of Kenya promotes entrepreneurial development
(4mks)
a) …………………………………………………………………………………
b) ………………………………………………………………………………….
c) …………………………………………………………………………………..
d) …………………………………………………………………………………..

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 9. State the name of the source document used to record the following transactions (4mks)

Transaction Source Document

a) Received goods returned by a buyer who bought them earlier on credit
b) Making of payment to a casual workers at the end of the week
c) Bought goods for sale from Gilanis Supermarkets on credit
d) A customer, Adhiambo, send a cheque for goods she bought earlier on
credit

10. Kivuli Youth Group wants to start a warehouse service business in their ward. State any four
essential factors they should consider for their warehouse to function effectively.(4mks)
a) ………………………………………………………………………………….
b) ……………………………………………………………………………………
c) …………………………………………………………………………………..
d) ………………………………………………………………………………….

11. National income from expenditure approach is calculated as follows:

NI = C + I + G + (X-M)
State the meaning of the following: (4mks)
(i) C………………………………………………………………………………
(ii) I: ………………………………………………………………………………
(iii) G …………………………………………………………………..………….
(iv) X-M: …………………………..………………………..………………………

12. With suitable examples, explain the meaning of the following terms as used in demand.
(a) Joint demand (2 marks)

(b) Derived demand. (2 marks)

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13. Nyeri county has lately been experiencing a decline in the birth rate, State four reasons for this
decline. (4 marks)
a) …………………………………………………………………………………………………………….
b) ……………………………………………………………………………………………………………..
c) ……………………………………………………………………………………………………………..
d) ……………………………………………………………………………………………………………..

14. Give four basic characteristics of a business idea. (4mks )

a) …………………………………………………………………………………………….
b) ……………………………………………………………………………………………..
c) ……………………………………………………………………………………………..
d) …………………………………………………………………………………………......
15. Outline four documents needed to start a company. ( 4mks)
a) ……………………………………………………………………………………………
b) ……………………………………………………………………………………………
c) …………………………………………………………………………………………….
d) ……………………………………………………………………………………………

16. Identify four barriers to international trade that are imposed by governments. (4mks)
a) ………………………………………………………………………………………………………………
b) ………………………………………………………………………………………………………………
c) ………………………………………………………………………………………………………………
d) ………………………………………………………………………………………………………………

17. In the table below classify the accounts as personal, nominal, real or private. (4mks )

Account Account type

Machinery ………………………….
Kamau( creditor) ………………………….
Electricity bill ………………………….
Rent income ………………………….
18. Outline four reasons why shopping malls have become popular in Kenya. (4 marks)
a) ……………………………………………………………………………………….
b) ………………………………………………………………………………………..
c) ………………………………………………………………………………………...
d) ………………………………………………………………………………………...

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19. On 1st July 2012, Meru traders had the following balances:
shs.
Computer 45,000
Capital 136,000
Creditors 20,000
Furniture 80,000
Bank 26,000
Cash 5,000

The following transactions took place on 2nd July 2012:

a. purchased a motor van for sh.400,000 on credit from Shah motors
b. paid a creditor sh. 13,000 by cheque
c. bought furniture for sh.8000 by cheque
Prepare a balance sheet as at 2nd July 2012 after the above transactions had taken place. (4 marks)

20. State four factors that hinder economic development in most African countries. (4marks)
a) ……………………………………………………………………………………..
b) ……………………………………………………………………………………..
c) ………………………………………………………………………………………
d) ……………………………………………………………………………………...

21. Highlight four reasons that may necessitate insurance companies to re-insurance. (4mks)

a) …………………………………………………………………………………
b) …………………………………………………………………………………
c) …………………………………………………………………………………
d) …………………………………………………………………………………

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22. The following table shows the price of 2kg of maize flour 1 loaf of bread, and 1 packet of milk in
2013 and 2014 with their weights.

Items Prices Weights

2013 2014
Flour 80 85 2
Bread 50 60 1
Milk 40 60 3

Required:
Calculate Consumer Price Index (C.P.I) for the year 2014 for the basket of goods composed of the
three items using the
Weighted Average Method and determine level of inflation. (4 Marks)

23. State four conditions that must be met for an insurance contract to be valid. (4 marks)
a) ………………………………………………………………………………………..
b) ………………………………………………………………………………………..
c) ………………………………………………………………………………………..
d) ………………………………………………………………………………………..
24. The following balances were extracted from the books Lion Traders as at 30th June 2012.
Shs.
Sales 14,000
Carriage out 6,000
Discount allowed 11,000
Discount received 5,000
Returns in 12,000
Rent income 3,000
Purchases 2,000
Bank 150,000
Capital 159,000

From the above information, prepare a trial balance. (4 marks)

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25. State four characteristics of basic human wants. (4 marks)

a) …………………………………………………………………………………………..
b) …………………………………………………………………………………………..
c) …………………………………………………………………………………………..
d) …………………………………………………………………………………………..

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Name………………………………..………… Index No:……………………..……….
Date: ……………………………………….. Candidate’s Signature ………...…..……

565/2
BUSINESS STUDIES
PAPER 2
TIME: 2 ½ HOURS

RIFT VALLEY REGION SCHOOLS’

JOINT PREMOCKS
Kenya Certificate of Secondary Education (K.C.S.E.)
565/2
Business Studies
Paper 2
TIME: 2 ½ Hours

INSTRUCTIONS TO CANDIDATES
• Write your name and index number on the answer booklet
provided.
• This paper consists of six questions.
• Answer any five questions.
• All questions carry equal marks.

For Examiners Use Only

QUESTION 1 2 3 4 5 6 TOTAL
MARKS

This paper consists of 3 printed pages. Candidates should check to ascertain that all pages are printed as indicated and that
no questions are missing.

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1. a) Discuss any five economic importance of the recently discovered oil to the Kenya
Economy. (10marks)
b) Describe five monetary tools used by the government to control inflation. (10mks

2 a) Explain four reasons why Boda Boda transport has become a popular means of
transport in Kenya. (8 marks)

b) The following trial balance relates to HM Traders Ltd as at 31st December 2011.

HM Traders Ltd
Trial Balance
As 31st December 2011
Particulars Dr Cr
shs shs
Capital 283,200
Drawings 8000
Cash at Bank 30,000
Machinery 360,000
Debtors 42 700
Creditors 20 000
Stock (1.1.2011) 40000
Sales 570 000
Purchases 325 000
Returns 10000 15000
Carriage inwards 4000
Carriage outwards 5000
Rent 18000
Salaries and wages 40000
Discounts Received 9000
General expenses. 14,500

897 200 897 200

Stock as at 31/12/2011 was valued at shs. 35,000

Required:
i) Prepare a trading, profit and loss account for the year ended 31st December, 2011
(8 marks)
st
ii) Draw a balance sheet as at 31 December, 2011. (4 marks

3(a) Explain five guidelines to proper use of county funds. (10 marks)

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 (b) The following table represents the supply of potatoes for 3 months.

Year 2010 Price Per Kg Quantity Supplied (Kgs)

January 100 100,000
February 100 90,000
March 100 80,000
Explain five reasons to account for the change in quantity supplied of potatoes in the
market. (10 marks)

4 a) Mr. Yego, a tea farmer in Kericho, wants to join Kiptigis farmers’ co-operative society.
Explain five benefits that would accrue to him as a result of being a member of the
society. (10marks)

b) On 1st September 2006,Mau Enterprises had the following balance.

Cash shs. 55,000
Bank shs. 250,000 (CR)

During the month, the following transaction took place

September 2nd: Cash Sales Banked shs. 535,260

3rd: Bought Ribbons in cash shs.4, 500
th
8 : Paid Wangila ,a creditor shs. 94,000 by cheque in full settlement of
his Account after deducting 6% cash discount
12th: Received a cheque for shs.58, 800 from Wetu after allowing her
cashdiscount of shs.1, 200
15th: Paid salaries shs.34, 000 in cash
25th: Withdrew shs. 50,000 from bank for office use
28th: Anyango a debtor, paid her account of shs.75.000 by cheque less
10% cash discount.
30th: Deposits all the cash into Bank except shs. 13,700

Required: Prepare a three column cash Book as at 30th September 2006 (10mrks)

5) a) Explain five measures that Kenya can take to solve the problem of
unemployment. (10 marks)

b) Kenya is looking forward to the realization of vision 2030, explain five obstacles
that may hinder its implementation (10marks)

6 (a) Draw five differences between perfect competition and monopolistic competition
(10mks
(b) Explain five negative implications of production activities on the environment
(10mks)

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 WESTERN REGION

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 WESTERN REGION SCHOOLS’
JOINT PREMOCKS
FORM FOUR
565/1 - BUSINESS STUDIES - Paper 1
Time: 2 hours

-----------------------------------------------------------

Name ………………………………………………….................Index No. …………..

Adm no.................................... Class.........................
Date………………………….. Signature………………

Instructions to candidates
a) Write your name and index number in the spaces provided above.
b) Sign and write the date of the examination in the spaces provided above.
c) This paper consists of 25 questions.
d) Answer all the questions in this paper.
e) All your answer must be written in the spaces provided in the question paper
f) This paper consists of 8 printed pages
g) Non –programmable silent electronic calculator may be used.
h) Candidates should check the question paper to ascertain that all pages are printed as
indicated and that no questions are missing.
i) Candidates must answer the questions in English.

-------------------------------------------------------------------------------
For Examiner’s Use Only
Question 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
Candidate’s
score

17 18 19 20 21 22 23 24 25 TOTAL
MARK
1. Give four features of Basic human wants. (4 marks)

a) ……………………………………………………………………………………...

b) ……………………………………………………………………………………...

c) ……………………………………………………………………………………...

d) ……………………………………………………………………………………...

2. State four essential elements of effective communication. (4 marks)

a) ……………………………………………………………………………………...

b) ……………………………………………………………………………………...

c) ……………………………………………………………………………………...

d) ……………………………………………………………………………………...

3. Outline four sources of government revenue. (4 marks)

a) ……………………………………………………………………………………...

b) ……………………………………………………………………………………...

c) ……………………………………………………………………………………...

d) ……………………………………………………………………………………...

4. State four ways in which a good filing system may facilitate the operation of an

office. (4 marks)

a) ……………………………………………………………………………………...

b) ……………………………………………………………………………………...

c) ……………………………………………………………………………………...

d) ……………………………………………………………………………………...

5. Outline four circumstances in which the government may be involved in businesses.

(4 marks)
a) ……………………………………………………………………………………...

b) ……………………………………………………………………………………...

c) ……………………………………………………………………………………...
 d) ……………………………………………………………………………………...

6. Outline four reasons that may make a producer to by-pass the wholesaler when

distributing goods. (4 marks)

a) ……………………………………………………………………………………...

b) ……………………………………………………………………………………...

c) ……………………………………………………………………………………...

d) ……………………………………………………………………………………...

7. Highlight four ways in which inflation is beneficial to a country. (4 marks)

a) ……………………………………………………………………………………...

b) ……………………………………………………………………………………...

c) ……………………………………………………………………………………...

d) ……………………………………………………………………………………...

8. Highlight four types of demand. (4 marks)

a) ……………………………………………………………………………………...

b) ……………………………………………………………………………………...

c) ……………………………………………………………………………………...

d) ……………………………………………………………………………………...

9. Classify the following resources as natural, man-made or human. (4 marks)

RESOURCES CLASSIFICATION

a) Engineer

b) Boat

c) Soda ash

d) Driver
10. The following trial balance was wrongly prepared by Shida Shida traders.
Shida Shida Traders
Trial Balance
For the year ended 31/12/2021
ITEMS CREDIT DEBIT
Building 400, 000
Return inward 5,400
Carriage inward 4,000
Carriage outward 6,800
Rent received 1,200
Creditor 10,100
Debtor 17,900
Return outward 800
Stock 8,000
Bank overdraft 19,500
Prepaid insurance 9,000
Motor vehicle 200,000
Capital 619,500

Prepare the correct trial balance of Shida Shida Traders. (5 marks)

…………………………………………………………………………………………

…………………………………………………………………………………………

…………………………………………………………………………………………

…………………………………………………………………………………………

…………………………………………………………………………………………

…………………………………………………………………………………………

…………………………………………………………………………………………

…………………………………………………………………………………………

…………………………………………………………………………………………

…………………………………………………………………………………………

…………………………………………………………………………………………

…………………………………………………………………………………………
 …………………………………………………………………………………………

…………………………………………………………………………………………..

11. Outline four differences between ordinary shares and preference shares. (4 marks)

Ordinary shares Preference shares

a) a)

b) b)

c) c)

d) d)

12. State the financial ratio described by each of the statement below. (4 marks)

Statement Ratio

a) Determine the rate at which goods move in and

out of the Business.
b) Determine whether it was worth investing in the
Business.
c) Compare current assets with current liabilities

d) Gross profit expressed as percentage of net sales.

13. Highlight four causes of unemployment. (4 marks)

a) ……………………………………………………………………………………...

b) ……………………………………………………………………………………...

c) ……………………………………………………………………………………...

d) ……………………………………………………………………………………...

14. Outline four characteristics of an open air market. (4 marks)

a) ……………………………………………………………………………………...

b) ……………………………………………………………………………………...
 c) ……………………………………………………………………………………...

d) ……………………………………………………………………………………...

15. Indicate the effect of each of the following transactions on assets, liabilities and

capital by using increase, decrease or no effect. (4 marks)

Transaction Assets Liabilities Capital

a) Cashed a cheque for

personal use.
b) Bought premises on
credit.
c) Paid a creditor by cash.

d) Converted a personal car

into business use.

16. Outline four functions of an entrepreneur. (4 marks)

a) ……………………………………………………………………………………...

b) ……………………………………………………………………………………...

c) ……………………………………………………………………………………...

d) ……………………………………………………………………………………...

17. State four reasons why flower exporter would transport their produce by Air rather

than by sea. (4 marks)

a) ……………………………………………………………………………………...

b) ……………………………………………………………………………………...

c) ……………………………………………………………………………………...

d) ……………………………………………………………………………………...

18. State four types of advertising. (4 marks)

a) ……………………………………………………………………………………...

b) ……………………………………………………………………………………...

c) ……………………………………………………………………………………...

d) ……………………………………………………………………………………...
19. Give four basic features of a market. (4 marks)

a) ……………………………………………………………………………………...

b) ……………………………………………………………………………………...

c) ……………………………………………………………………………………...

d) ……………………………………………………………………………………...

20. Highlight four factors that limit the growth of a country’s National income.(4 marks)

a) ……………………………………………………………………………………...

b) ……………………………………………………………………………………...

c) ……………………………………………………………………………………...

d) ……………………………………………………………………………………...

21. List four books of original entry that may be used to record transactions affecting

stock. (4 marks)

a) ……………………………………………………………………………………...

b) ……………………………………………………………………………………...

c) ……………………………………………………………………………………...

d) ……………………………………………………………………………………...

22. Outline four services offered by commercial banks to their customers. (4 marks)

a) ……………………………………………………………………………………...

b) ……………………………………………………………………………………...

c) ……………………………………………………………………………………...

d) ……………………………………………………………………………………...

23. Outline four goals of development in Kenya. (4 marks)

a) ……………………………………………………………………………………...

b) ……………………………………………………………………………………...
 c) ……………………………………………………………………………………...

d) ……………………………………………………………………………………...

24. Highlight four ways in which the balance of payment of a country may be improved.

(4 marks)

a) ……………………………………………………………………………………...

b) ……………………………………………………………………………………...

c) ……………………………………………………………………………………...

d) ……………………………………………………………………………………...

25. The following balances were extracted from the books of Twain Traders on 30th April

2023.

Premises 202,000 Debtors 18,800

Creditors 60,500 Bank overdraft 52,200

Bank 5,200

Determine the net worth of the business as at 30th April 2023. (3 marks)

…………………………………………………………………………………………

…………………………………………………………………………………………

…………………………………………………………………………………………

…………………………………………………………………………………………

…………………………………………………………………………………………

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 WESTERN REGION SCHOOLS’
JOINT PREMOCKS
565/2 - BUSINESS STUDIES - Paper 2
July/August
𝟏
Time: 2𝟐 hours

----------------------------------------------------------

Name …………………………………………………Index No. …………..

Adm no.................................... Class...........................
Date………………………….. Signature………………………

Instructions to candidates

a) Write your name and index number in the spaces provided above.
b) Sign and write the date of the examination in the spaces provided above.
c) This paper consists of 6 questions.
d) Answer any five questions in the spaces provided.
e) All questions carry equal marks
f) This paper consists of 3 printed pages
g) Non –programmable silent electronic calculator may be used.
-------------------------------------------------------------------------------

For Examiner’s Use Only

Question Maximum score Candidate’s score

20

20

20

20

20

TOTAL

1. (a) Highlight five ways in which micro environment can lead to success of a business.

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 (10 marks)
(b) Explain five advantages of locating firms to different parts of the country.
(10 marks)

2. (a) Outline five circumstance a firm may find it necessary to advertise its products.
(10 marks)
(b) Explain five areas in which government expenditure can be channelled to stabilize
the economy of a country. (10 marks)

3. (a) Explain five ways in which consumers may benefit from warehousing. (10 marks)

(b) Highlight five reasons why some African countries are reluctant in implementing free
trade agreement. (10 marks)

4. (a) Explain five benefits that a firm may enjoy by preparing a business plan.(10 marks)

(b) The following balances were extracted from the books of Tango Traders on 31st
December 2020.
Item Shs.
Building 208, 000
Bank overdraft 125, 000
Debtors 43, 000
Creditors 118, 000
Motor vehicle 660, 000
Closing stock 80,000
Lighting 10, 000
Discount allowed 10, 800
Rent income 40, 800
Repairs on buildings 4, 600
Interest on loans 8, 900
Capital 711, 500

Additional information
Gross profit margin is stated at 20%.
Cost of goods sold Sh. 120, 000.

Prepare:
i) Profit & loss account for the year ended 31st December 2020. (5 marks)

ii) Balance sheet as at 31st December 2020. (5 marks)

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5. (a) Explain five features of oligopoly market structure. (10 marks)

(b) Explain five problems faced by public corporations in Kenya. (10 marks)

6. (a) Explain five types of small scale retail shops with a fixed premise. (10 marks)

(b) Use the following transactions to prepare Tikoi Traders Two Column Cash Book for
the month of June 2022. (10 marks)
1st June: Had Sh. 10, 500 in cash and Sh. 6, 500 at the bank.
2nd June: Received a cheque of Sh. 50, 000 from Tosh.
4th June: Paid wages Sh. 2, 500 cash.
6th June: Sold goods worth Sh. 9, 250 cash.
7th June: Withdrew Sh. 5, 500 from the bank for family use.
9th June: Purchased goods worth Sh. 15, 800 by cheque.
12th June: Paid Gael, a creditor by Cheque Sh. 5, 000.
15th June: Brought into the business additional cash of Sh. 15, 000 from private
sources.
20th June: Deposited Sh. 8, 500 from the office into the business bank account.
28th June: Used all the cash in hand to purchase equipments leaving no balance.

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Subscribe to our website www.kenyaeducators.co.ke for similar resources