Close Menu
    Facebook X (Twitter) Instagram
    Citizen News
    • TSC News Portal
    • KMTC News Portal
    • HELB News Portal
    • MONEY & FINANCING
    • Advertise with Us
    • KNEC News Portal
    • Knec Schools Portal
    • KUCCPS News Portal
    • Teachers’ Resources
    Facebook X (Twitter) Instagram
    Citizen News
    Teachers' Resources

    Business Studies KCSE Mock Exams and Answers {Latest Best Collections}

    By Maverick JohnMay 31, 2025No Comments14 Mins Read

    565/1

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

    SIGNATURE…………………………………………..……DATE……………………………..

    KENYA CERTIFICATE OF SECONDARY EDUCATION

     

    MOCKS 1 2023

     

    BUSINESS STUDIES

    Paper 1

    TIME: 2 HOURS

     

     

    Instructions to Candidates

    • Write your name and index number in the spaces provided above.
    • Sign and write the date of the examination in the spaces provided above.
    • This paper consists of 25
    • Answer ALL questions in the spaces provided
    • This paper consists of 9printed pages. Candidates should check the question paper to ascertain that all the pages are printed as indicated and that no questions are missing
    • Candidates should 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
    Marks                              

     

    Questions 16 17 18 19 20 21 22 23 24 25
    Marks                    

     

     

    TOTAL MARKS

     

    1. State four benefits of learning business studies to a Kenyan student             (4mks)
    2. ………………………………………………………………………………………
    3. ………………………………………………………………………………………
    • ………………………………………………………………………………………
    1. ………………………………………………………………………………………
    2. Highlight four measures a business may take to ensure that its environment is conducive to its business activities             (4mks)
    3. ………………………………………………………………………………………
    4. ………………………………………………………………………………………
    • ………………………………………………………………………………………
    1. ………………………………………………………………………………………
    2. State four factors to consider when evaluating a viable business opportunity (4mks)
    3. ………………………………………………………………………………………
    4. ………………………………………………………………………………………
    • ………………………………………………………………………………………
    1. ………………………………………………………………………………………

     

    1. Most organizations have come up with customer care desks. outlinethree functions that they play .             (3mks)
    2. ………………………………………………………………………………………
    3. ………………………………………………………………………………………

    iii.            ………………………………………………………………………………………

    1. ……………………………………………………………………………………

     

     

     

    1. Identify the documents that each of the following descriptions refer to             (4mks)
    Description Document
    i.                 Used to inform buyer that seller has received the order  
    ii.               Used to ask about the availability of goods.  
    iii.             Used to organize for transportation of goods between seller and buyer  
    iv.             Used to show goods sold on credit  
    1. State four factors affecting the circular flow of income                              (4mks
    2. ………………………………………………………………………………
    3. ………………………………………………………………………………
    • ………………………………………………………………………………
    1. ………………………………………………………………………………
    2. The following balances were extracted from the books of WINNICO Limited on 31stDecember 2020.
    Item Ksh.
    Capital 150,000
    Furniture 110,000
    Purchases 285,000
    Hawi (supplier) 180,000
    Sales 230,000
    Wages paid 41,000
    Return inwards 5,000
    Return outwards 15,000
    Cash 139,000
    Rent received 5,000

    Prepare the trial balance of the business as of 31st December 2020             (5mks)

     

     

     

     

     

     

     

     

     

     

     

     

    1. The information given below relates to Jomo Traders for the year ended 31stAugust 2021

    Rate of stock turn over              3 times

    Mark -up                                     20%

    Opening stock                         ksh. 90,000

    Closing stock                          ksh. 150,000

    Required

    1. Gross profit             (2mks)

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

    1. Sales             (2mks)

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

    1. Highlight four features of services . (4mks)
    2. ………………………………………………………………………………
    3. ………………………………………………………………………………
    • ………………………………………………………………………………
    1. ………………………………………………………………………………
    2. State four causes of seasonal unemployment in Kenya             (4mks)
    3. ………………………………………………………………………………
    4. ………………………………………………………………………………
    • ………………………………………………………………………………
    1. ………………………………………………………………………………
    2. Highlight four circumstances under which the capital of a business may change (4mks)
    3. ………………………………………………………………………………
    4. ………………………………………………………………………………
    • ………………………………………………………………………………
    1. ………………………………………………………………………………

     

     

    1. On 1 January 2006, Romano Traders started sh. 180,000 in cash and sh. 170,000 at bank. During the month, the following transactions took place:

    2006

    January 10 paid ABM Traders sh. 25,000 by cheque less sh. 1000 cash discount

    16 sold goods for sh. 14,000 cash.

    31 Banked all the cash except sh. 5,200

    Enter the above transactions in the relevant cash book  and balance it off. (4mks)

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

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

    1. List four clauses of memorandum of association for joint stock companies (4mks)
    2. ………………………………………………………………………………
    3. ………………………………………………………………………………
    • ………………………………………………………………………………
    1. ………………………………………………………………………………
    2. State four causes of demand- pull inflation             (4mks)
    3. ………………………………………………………………………………
    4. ………………………………………………………………………………
    • ………………………………………………………………………………
    1. ………………………………………………………………………………
    2. State four activities carried out in the process of distribution             (4mks)
    3. ………………………………………………………………………………
    4. ………………………………………………………………………………
    • ………………………………………………………………………………
    1. ………………………………………………………………………………
    2. Outline four structural changes that may take place when a country is experiencing economic development (4mks)
    3. ………………………………………………………………………………
    4. ………………………………………………………………………………
    • ………………………………………………………………………………
    1. ………………………………………………………………………………
    2. State four reasons why it is suitable to locate a bonded warehouse at the point of entry of a country             (4mks)
    3. ………………………………………………………………………………
    4. ………………………………………………………………………………
    • ………………………………………………………………………………
    1. ………………………………………………………………………………
    2. Highlight four reasons why business still use radios to promote their products despite other highly advanced media                         (4mks)
    3. ………………………………………………………………………………
    4. ………………………………………………………………………………
    • ………………………………………………………………………………
    1. ………………………………………………………………………………
    2. State four factors that may lead to an increase in market supply of a product (4mks)
    3. ………………………………………………………………………………
    4. ………………………………………………………………………………
    • ………………………………………………………………………………
    1. ………………………………………………………………………………

     

     

    1. State reward of each factor of production (4mks)
    2. ………………………………………………………………………………
    3. ………………………………………………………………………………
    • ………………………………………………………………………………
    1. ………………………………………………………………………………
    2. Highlight four methods used by a monopolistic firm to differentiate its products (4mks)
    3. ………………………………………………………………………………
    4. ………………………………………………………………………………
    • ………………………………………………………………………………
    1. ………………………………………………………………………………
    2. Juma wholesalers owned a motor vehicle at ksh. 2,000,000 which they comprehensively insured for ksh. 1,600,000. The vehicle was involved in an accident and written off. determine the amount of money Jumawholesalers should expect to get from their insurer

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

    1. State four ways in which the government is involved in business activities. (4marks)
    2. ………………………………………………………………………………
    3. ………………………………………………………………………………
    • ………………………………………………………………………………
    1. ………………………………………………………………………………

     

     

    1. State four ways in which the nature of goods would influence the choice of transport

    (4mks)

    1. ………………………………………………………………………………
    2. ………………………………………………………………………………
    • ………………………………………………………………………………
    1. ………………………………………………………………………………

     

    1. State four advantages of locating a firm near the source of raw materials             (4mks)
    2. ………………………………………………………………………………
    3. ………………………………………………………………………………
    • ………………………………………………………………………………
    1. ………………………………………………………………………………

     

    565/2

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

    SIGNATURE…………………………………………..……….DATE………………….………….

    .

    KENYA CERTIFICATE OF SECONDARY EDUCATION

     

    MOCKS 1 2023

     

    BUSINESS STUDIES

    Paper 2

    TIME: 21/2 hours

     

    Instructions to Candidates

    • Write your name and index number in the spaces provided above.
    • Sign and write the date of the examination in the spaces provided above.
    • This paper consists of 6
    • Answer ANY FIVE questions in the spaces provided
    • This paper consists of 3printed pages. Candidates should check the question paper to ascertain that all the pages are printed as indicated and that no questions are missing
    • Candidates should answer the questions in English
     

    Question

    Maximum

    score

    Candidates

    score

      20  
      20  
      20  
      20  
      20  
       

     

     

     

     

     

     

     

     

    1. (a) ExplainfivemeasuresthatKenyamaytaketocontrolunemploymentproblem (10 marks)

    (b) Highlightfivedifferencesbetweendirecttaxandindirecttax .                            (10 marks)

     

    1. (a) Explain the meaning and significance in each of the following terms as used in foreign trade.

    (10 marks)

    1. Terms of trade.
    2. Balance of payment.
    • Exchange rate.
    1. Balance trade.
    2. Common market.

    (b)Explainfivefunctionsofthenationalbudgetasatoolofplanning.                          (10 marks)

     

    1. (a)Discuss five factors that have led to survival of small-scale retailers despite competition from

    Supermarkets.                                                                                                       (10 marks)

    (b)ThefollowingbalanceswereextractedfromthebooksofMuteitraderson31stDecember,2017.

    Shs

    Gross profit                    800,000

    General expenses           180,000

    Buildings                        1,250,000

    Equipment                      380,000

    Capital                            1,400,000

    Furniture                         117,000

    Insurance                        48,000

    Stock                               25,000

    Commission income      125,800

    Discount allowed           55,000

    Discount received          56,200

    Bank Overdraft               79,000

    Salaries and wages         320,000

    Creditors                         90,000

    Carriage outwards           60,000

    Debtors                            65,500

    Carriage inwards             34,500

    Cash                                 51,000

     

    Prepare:

    • Profitandlossaccountfortheperiodended31st
    • Balance sheet as at 31stDecember,2017. (10marks)

     

     

    1. (a) Highlightfivebenefitsaccruingtoasellerwhousesthepersonalsellingmethod

    to promote herproducts.                                                    (10marks)

    (b)The following transactions relate to Furaha traders for the month of July,2008

    July 1  : Balance brought down cash sh.16,250 and Bank Shs.19,847

    July2   : Sold goods worth Shs.1,348 to Patel and received a calculator in exchange

    July 5  : Paid transport by cheque Shs.2,000

    July 6  : Issued a cheque to Kerio Traders setting an invoice for Shs.10,000 deducting 2%

    cash discount

    July 10: Transfer Shs.15 000 from cash till to bank

    July 12: Sold goods for cash Shs.12,000 less 2% cash discount

    July 13: Sold goods to Onyango on credit worth Shs.15, 000

    July 14: The owner of the business withdrew Shs.3000 in cash to buy a present for his

    daughter

    July 16 : Received a cheque from Kuria Shs.2,500 less 5 % cash discount

    July 22 : Bought furniture from Babu Traders on credit worth Shs.16,500 and cash

    discount of 10% if payment is made within 2 weeks

    July 24: Withdrew cash from bank for office use Shs8,000

    July 26: The owner brought into the business Shs.9,000 cash

    July 27: Issued a cheque to Babu Traders for amount due

    July 28: Sold goods to Kuria worth Shs.5,000 for Shs.3,800 and received payment by

    cheque

    July 30: Banked all cash and remained with Shs.100 in the cash till

    Required;   Prepare Furaha Traders three column cash book for the month of July 2008.

    (10 marks)

     

    1. a)Explainfivemeansofwrittencommunication. (10marks)
    2. b) Explainfivemeasuresthatareadoptedbythegovernmenttoprotectconsumers

    againstexploitation.                                                                          (10marks)

     

    • (a) Explainfive(10marks)

    ( b) Commodity A and B are subtitute products. Using well label diagrams explain

    how increase in supply of commodity A would affect the equilibrium price and quantity

    demanded of commodity B.               (10mks)

     

     

     

     

     

     

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

     

    MOCKS 1 2023

     

    BUSINESS PP1 MS

     

      • Torelateknowledge,skills,andattitudestodaytoday.
      • Self-
    1. Highlight four measuresa bustoensurethatitsenvironmentisconduciveto its businessactivities.
      • Ensuringthebusinessoperatesinsurroundingthatarecleanandattractiveto
      • e.,relevant permitsandlicenseshavebeenobtained.
      • Thatallgovernmenttaxesarepaidpromptly
    2. Statefourfactors to
      • Potentialprofits
      • Availability ofmarket
      • Availability of rawmaterials
      • Amount of capitalrequired
      • Level ofcompetition
      • Security
      • Governmentpolicy
      • Futuregrowth
      • Acceptance by thecommunity
      • Cost ofcapital
      • Ability tomanage

     

     

     

     

     

     

    1. Mostorganizations havecomeupwithcustomercareOutline functions that theyplay.
      • Advisemanagementonissuesandcomplaints
      • Attend to anyenquiry
      • Buildconfidenceinclients (efficientservice)
      • Attend tocomplaints
      • Ensurethatclientsareattendedtofastenough

     

     

     

     

    1. (
    Description Document
    i)Used to inform buyer that seller has

    received the order

    Acknowledgements note
    i)    Usedtoaskabouttheavailabilityof

    goods

    Letter of inquiry
    ii)Usedtoorganizefortransportation

    of goods between seller and buyer

    Consignment notes
    iii) Used to show goods sold on credit Invoice

     

    1. Namefour factorsaffectingthecircularflowofincome
    • Savings-leakages
    • Taxes-leakages
    • Governmentexpenditure
    • Investments
    • Foreigntrade

     

    1. WINNICO Limited

    Trial Balance

    As at 31st December 2020.

    Item Dr.

    Ksh.

    Cr.

    Ksh.

    Capital   150,000
    Furniture 110,000  
    Purchases 285,000  
    Hawi (supplier)   180,000
    Sales   230,000
    Wages paid 41,000  
    Return inwards 5,000  
    Return outwards   15,000
    Cash 139,000  
    Rent received   5,000
      580,000 580,000

     

    Cost of sales =KSH. 360,000

    20=

    =KSH.72,000

    1. G.P =72,000 + 360,000

                               =KSH. 432,000

    1. Characteristics of services
      • They are intangible and invisible as they are not in material form.
      • They can’t be stored for future use-perishable.
      • Quality can’t be standardized.
      • They are inseparable from the provider.

     

    1. Statefour causesofseasonalunemploymentinKenya
      • Declineinthesupplyofcertainrawmaterials
      • Temporary employment/contractworkers
      • Economicdepression/declineineconomicactivities
      • Voluntaryresignationduetogreenerpastures
      • e.temporarystoppageorterminationofemployment

     

    1. Highlight four circumstances under which the capital of a business may change

    (4marks)

    • Profit increases capital
    • Losses reduces capital
    • Additional investment increases capital
    • Drawings reduces capital

     

    1. Romano Traders

    Two column cash Book

     

     

     

     

     

     

     

     

     

     

    1. List four clauses of memorandum of association for joint stock companies
      • Nameclause
      • Objectiveclause
      • Liabilityclause
      • Capitalclause
      • Declarationclause

     

    1. State four causes of demand-pull inflation
    • Increase in government expenditure
    • Effects of credit creation by the commercial banks
    • Increase in money incomes
    • General shortage of goods and services
    • Increase in consumer’s expenditure

     

    1. Statefouractivitiescarried o  u   t         intheprocessofdistribution (4mks)
      • Handling
      • Storage
      • Packing/packaging
      • Transportation
      • Grading
      • Blending
      • Sorting
      • Breaking thebulk

     

     

     

     

     

    1. Outlinefourstructuralchangesthatmaytakeplacewhenacountryisexperiencing economicdevelopment
      • Shiftfromagriculturetomanufacture
      • Reduction in illiteracylevels
      • Increase in skilledmanpower
      • Improvement in healthfacilities
      • Improvement intechnology
      • Improvedinfrastructure
      • Improved balance ofpayment

     

     

    1. Statefourreasonswhyitissuitabletolocateabondedwarehouseatthepointof entry of acountry
      • For easyre-exporting.
      • Topreventtheentryofharmfulgoods /dangerousgoods.
    2. Highlightfourreasonswhybusinessesstilluseradiostopromotetheirproducts despite other highly advancedmedia
      • Wider geographicalcover
      • Differentradiochannelscancastindifferentlanguages
      • Blindcangetthemessage
      • Abletoreachmanypeopleatthesametime
      • Radioisaccessibleevenintheremoteareas
      • Allows repetition ofmessage
      • Affordable /cheaper toadvertise.
    3. Statefourfactorsthatmayleadtoanincreaseinmarketsupplyofaproduct.

    (4 marks)

     

    • Increaseinthepriceoftheproduct
    • Failinthecostofproduction
    • Availability of cheapcredit
    • Decrease inprices
    • Whenthedemandishigh
    • Futureexpectedfallinprice

     

    1. State reward for each factor of production. (4marks)
    • Capital -interest
    • Land-rent /rates/royalties/lease fees
    • Entrepreneurship -profit
    • Labour-wages/salaries /professional fees/commission
    1. Highlight4methodsusedbyamonopolisticfirmtodifferentiateitsproducts
      • Branding
      • Packaging in differentsizes
      • Pricing
      • Blending into differentcolours
      • Persuasiveadvertising
      • Trademarks

     

     

     

    1. Juma wholesalers owned a motor vehicle valued at 2,000,000 which they comprehensively insured for Kshs. 1,600,000. The vehicle was involved in an accidentandwrittenoff.DeterminetheamountofmoneyJumawholesalersshould expect to get from theirinsurer

     

    Compensation = sum assured/insured premium x loss

    Actual value

     

    1,600,000 x 1,600,000 = 1,600,00

    2,000,00

     

    1. State four ways in which the government is involved in business activities
    • Regulation
    • Training
    • Internal tradepromotion
    • Eternal tradepromotion
    • Serviceprovisions
    • Creation of enablingenvironment
    • Consumerprotection
      • Ifgoodsareperishableafastandappropriatemeansisrequired
      • Ifgoodsarefragile,asmoothmeansoftransportisrequired
      • Ifgoodsarehighlyvalued,asafeandsecuremeansisrequired
      • Ifgoodsareurgentlyrequired,afastermeansisused
      • Ifgoodsarebulkyanappropriatemeanswillbeused
    1. (4marks)
      • Reduce transportcost
      • Get quality rawmaterials
      • Enhance continuousproduction
      • Avoidwastageofrawmaterials

     

     

     

    ELDORET DIOCESE EXAM 2021

     

    MOCKS 1 2023

     

    Marking Scheme

    Business Studies Paper Two

    1. (a) ExplainfivemeasuresthatKenyamaytaketocontrolunemploymentproblem
      • Populationcontrolegfamilyplanning
      • Increasedgovernmentexpenditurethushavingmanyprojectssetup
      • Encouragingexploitationofnaturalresourcestoincreaseproductionactivities
      • Exportinglabortocountrieswithlabordeficiency
      • Diversificationoftheeconomytoreduceseasonalunemployment
      • Ruraldevelopment
      • Encourageforeigninvestmentinthecountry
      • Encourageuseoflabor-intensive methodinproduction
      • Improvementoftheinfrastructuretostimulateeconomicactivities
      • Improvementofeducationsystemstomakeitmoreappropriatetotheemploymentneeds of theeconomy.

     

     

    (b) Highlightfivedifferencesbetweendirecttaxandindirecttax

     

    Direct tax Indirect tax
    (i)Tax revenue is certain (i)Uncertainty in tax collected
    (ii) Does not affect prices of goods and services (ii)Affectspricesofgoodsandservices
    (iii) The society or taxpayers are conscious (iii)thetaxpayermaynotbeawareof tax beingpaid.
    (iv) Economical in collection (iv) Expensive in collection
    (v) Cannot be avoided (v) Can be avoided
    (vi)Can discourage work (vi)Encourages people to work hard to maintain their standards of living.

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    2.(a) . Explain the meaning and significance in each of the following terms as used in foreign trade.                                    

    Termsoftrade:therateatwhichexportsononecountryexchangeswith

    imports.Tot=Priceindexofexportsdetermineswhetherthetradebetweenonecountryandanotherisfavorable.

    • Balanceofpayment:thedifferencebetweenbothcapitalandcurrentexportsandimportsofa Ifthevalueofexportsishigher,thecountryexperiencesasurplusandviceversa.It determineswhetheracountryisexperiencingsurplusinI
    • Exchangerate:rateatwhichacountry’scurrencyexchangeswithanother.Thisratedeterminesthevalueofexportsandimports/showsitsindicationofacountry’seconomicstrength.
    • Balancetrade:thedifferencebetweenthevalueofacountry’svisibletangibleimportsandits Determineswhetheracountryisexperiencingsurplus/deficittrade

     

    Commonmarket:anagreementbetweencountriesthatallowfreemovement

    ofgoodsand factorsofproduction.Thisallowsmobilizationofresources/

    tradewithoutrestriction

    (b). Explainfivefunctionsofthenationalbudgetasatoolofplanning.

    • Outlininggovernmentexpenditure–Itdetailsthevariousexpenditureprogrammedthe governmentplanstoundertakeoveragivenperiod
    • Outlininggovernmentrevenue–Itgivesdetailsofthevarioussourcesofrevenuefor thegovernmenttofinanceitsactivities
    • Enablinggovernmentplanning–Thegovernmentusesthebudgettoplanforvarious activitiesandprogrammedthatleadtoeconomicgrowthanddevelopment
    • Introducingchangesintaxation–Thevarioustaxestobeapplied,thetaxrateandthe modeofapplicationofthetaxesareoutlinedinthebudget
    • Regulatingmoneysupply–Itoutlinesthemonetarysystemstobeinstitutedbythe governmenttoregulatemoneysupplyintheeconomy
    • Stimulatingeconomicactivities–Itisusedtoincreasegovernmentexpenditureinthe economywhichwillspureconomicactivitiesinthecountry

     

     

    1. (a) Discussthefactorsthathaveledtothesurvivalofsmall-scaleretailersdespitecompetitionfrom supermarkets(10marks)
      • Personalizedservices:smallscaleretailersprovidepersonalizedservicesandarethereforeab
      • accessibilityofsmall-scaleretailers/convenienceoflocatingsmallscaleretailersare conveniently in urbancenters.
      • Creditfacilitiessmallscaleretailersoffercreditfacilitiestosome oftheircustomerswhichare notavailabletospecificcustomerneeds.
      • Runningcostsofsmall-scaleretailersarelittleandthismakesiteasierforthemtosurvive unlikesmallmarketswhichrequirehugecapitaltooperate.
      • Management:Smallscalebusinessestherisksinvolvedarelowwhileinsupermarketsaregrew
      • Starting/initialcapitalstartingsmallscaleretailersasuitableforpeopleformoflowincome.
      • Flexibility-itiseasierforsmallscaleretailerstochangefromoneformofbusinesstoanother locationthanitisforsupermarkets.

     

         (b)

    Mutei traders

    ProfitandLoss

    For the year ended 31/12/2017√

    Shs                                                      Shs

    Generalexpenses180,000 √  Grossprofit b/d  800,000√

    Insurance48,000     √    Commission income  125,800     √ Discountallowed55,000   √    Discount received    56,200√

     Salariesandwages320,000√

    Carriageoutwards60,000√

    NetProfit319,000√

    982,000                                                                                                                                       982,000

    Marking10√*½=5marks Muteitraders

    Balancesheet

                                                                                                    Asat31/12/2017                                                 FixedAssets                                                Shs                                                     Shs

    Buildings1,250,000√             Capital            1,400,000√

    Equipment380,000√                AddNetProfit                                   319,000√

    Furniture117,000√                1,719,000

    1,747,000

    Currentassets                                                              Currentliabilities

    Stock              25,000√                                  Creditors        90,000√

    Debtors65,000√BankOverdraft79,000√169,000

    Cash               51,000√          141,000

    1,888,000                                                            1,888,000

     

     

     

     

     

     

     

    1. (a)Highlightfivebenefitsaccruingtoasellerwhousesthepersonalsellingmethod to promote herproducts

     

    • Personalsellinggivestheselleranopportunitytodemonstratetheproducts that they areselling.
    • Salespersons
    • Sellerhasanopportunitytoobservethereactionofcustomertotheproduct

    Enablesthesellertotargetthespecificgroupsinquestion.

     (b)                                Faraha Traders

    DATE PARTICULARS D.A CASH BANK DATE PARTICULARS D.R CASH BANK
    2008

    July 1

    10

    12

    16

    24

    26

    28

    30

     

    Balance b/d

     

    Cash

    Sales

    Kuria

    Bank

    Capital

    Sales

    Cash ©

     

    Balance b/d

     

     

     

     

    240

    125

     

     

    1200

     

    1565

     

    16520

     

     

     

     

    8000

    9000

    3800

     

    37320

    1000

     

    19847

     

    15000

    11760

    2375

     

     

     

    18320

    67302

    32652

    2008

    July 5

    6

    10

    14

    24

    27

    30

     

    Transport

    Kerio traders

     

    Bank

    Drawing

     

    Cash

    Babu traders

    Bank ©

    Balance c/d

     

     

     

    200

     

     

     

     

     

    1650

     

     

    1850

     

     

     

     

    15000

    3000

     

     

     

    18320

    1000

    37320

     

    2000

    9800

     

     

     

     

    8000

    14850

     

    32652

    67302

     

     

     

     

     

     

     

     

     

     

     

     

     

    1. a)Explainfivemeansofwrittencommunication. (10marks)
    • Letters–aformofwrittencommunication;business,official/formal,non–formaletc
    • Telegrams-isameansofcommunicationprovidedbythepostoffice,thesender obtainsthetelegramformfromthepostofficeandfillsthemessageonitincapital lettersandhanditovertothepostofficeemployeesatthecounter.
    • Telex-isameansofcommunicationusedtosendshortordetailedmessagesquickly byuseofTheserviceisprovidedbythepostofficeonapplication.
    • Facsimile(Fax)-involvestransmissionofinformationthroughafaxmachine.Both thesenderandthereceivermusthaveafaxmachine.
    • Memorandum (Memo) – is printed information for internal messages within an organization.Itisnormallyusedtopassinformationbetweendepartmentsoroffices in anorganization.
    • Notice-isusedtoinformagrouporthepublicaboutpastcurrentorfutureevents.It isusuallybriefandtothepoint.Itcanbeplacedonwalls,inpublicplaces,ontrees,

    newspapers or on notice boards.

    • Reports-arestatements/withinrecordsoffindingsrecommendationsandconclusion ofaninvestigation/research.Areportisusuallysenttosomeonewhohasaskedforit for a specificpurpose.
    • Circulars-aremanycopiesofasingleletteraddressedtoverymanypeoplewhenthe
    • Agenda-isanoutlineoftheitemstobediscussedinameeting.Itisusuallycontained inanoticetoameetingsentinadvancetoalltheparticipantsofthemeeting.

                          Minutes-arerecordsoftheproceedingsofameeting

     

     

    • (b) Explainfivemeasuresthatareadoptedbythegovernmenttoprotectconsumers againstexploitation
    • Settingupstandards-ThegovernmentthroughtheKEBSsetsstandardswhichmust

    be maintained by producers and traders.

    • WeightsandMeasuresAct-Thegovernmentensuresthattheequipmentusedfor weighingandmeasuringarecorrectandaccuratebyregularcheckingandadjustingof
    • Licenses-Thegovernmentrequiresmanufacturersandbusinesspeopletoget licensesbeforecommencingtheirbusinessoperationsthisensuresthatthereis
    • FoodandDrugsAct-Thegovernmentensuresthatproducersandtradersdonot includeanysubstancethattheyselltocustomerswhichmayhaveharmfuleffectsto the customershealth.
    • TradedescriptionAct-Ensuresthataproducersortradersdoesnotcheatthe
    • Pricecontrol-Thegovernmentmaysetapricebeyondwhichacommodityshouldnot
    • RentandTribunalAct-

     

     

     

     

    6 (a)  Explainfivecharacteristicsofperfectcompetitionmarketstructure

    • Largenumberofbuyers/sellerssuchthatactionofsinglebuyer/sellercannotaffectthe market
    • Homogeneity/uniformityoftheproduct-productsfromdifferentproducersareidentical in allaspects
    • Wideknowledgeofthemarket-thereforenosingleseller/’buyercanaffectthebusiness atanypriceotherthantheequilibriumprice
    • Freedomofentry/exit-therearenobarrierstoentryorexittoorfromthemarket
    • Uniformityofbuyersandsellers-thereforenobenefitofsellingorbuyingfromaparticular buyer orseller
    • Nogovernmentinterference-informoftaxes,subsidies,quotas,pricecontrol/price prevailinginthemarketisdeterminedstrictlybyinterplayofdemandandsupply
    • Noexcessdemand/supply-buyerscanbuyalltheywant/sellersareabletosell alltheysupplytothemarket
    • Notransportcostsasbuyersandsellersareinonearea

     

     

     

    • b) Commodity A and B are complementary Using  well label diagrams explain how increase in supply of commodity A would affect the equilibrium price and quantity demanded of commodity B.               (10mks)

     

     

     

     

    Maverick John

    Related Posts

    Grade 7 Term 3 Schemes of Work

    August 29, 2025

    Grade 9 Term 3 Schemes of Work

    August 29, 2025

    Grade 6 Term 3 Schemes of Work

    August 29, 2025

    Grade 8 Term 3 Schemes of Work

    August 29, 2025

    Form 3 Term 3 Schemes of Work

    August 29, 2025

    Form 2 Term 3 Schemes of Work

    August 29, 2025

    GRADE 8 AGRICULTURE & NUTRITION NOTES

    August 29, 2025

    GRADE 9 KISWAHILI LESSON NOTES

    August 29, 2025

    GRADE 9 ENGLISH LESSON NOTES

    August 29, 2025

    TRENDING NOW

    • Grade 7 Term 3 Schemes of Work
    • Grade 9 Term 3 Schemes of Work
    • Grade 6 Term 3 Schemes of Work
    • Grade 8 Term 3 Schemes of Work
    • Form 3 Term 3 Schemes of Work
    • Form 2 Term 3 Schemes of Work
    • GRADE 8 AGRICULTURE & NUTRITION NOTES
    • GRADE 9 KISWAHILI LESSON NOTES
    • GRADE 9 ENGLISH LESSON NOTES
    • Free Grade 8 Integrated Science Notes
    • Free Grade 8 Creative Arts and Sports Notes
    • FREE GRADE 9 SOCIAL STUDIES NOTES
    • FREE GRADE 9 SOCIAL STUDIES NOTES
    • FREE GRADE 8 PRETECHNICAL NOTES
    • FREE GRADE 8 CRE NOTES
    • Form 3 Agriculture Schemes of Work Term 3
    • FORM 2 BIOLOGY SCHEME OF WORK TERM 3
    • FORM 2 AGRICULTURE SCHEME OF WORK TERM 3
    • GRADE 1 CREATIVE ARTS SCHEMES OF WORK 
    • FORM 3 BIOLOGY SCHEME OF WORK TERM 3
    • Grade 9 Term 3 Rationalized Schemes of Work.
    • Grade 8 Term 3 Rationalized Schemes of Work.
    • Grade 7 Term 3 Rationalized Schemes of Work.
    • Maseno School 2025 Pre-mock Exams
    • KCSE 2025 Revision Exams {Full Papers}
    • Grade 7 Free Exams and Marking Schemes
    • Grade 8 Targeter Exams {All Subjects and Answers}
    • Grade 9 Targeter Exams {All Subjects and Answers}
    • Grade 9 Targeter Exams {Plus Answers}
    • Grade 4 Targeter Exams {Plus Answers}
    • Grade 6 Targeter Exams {Plus Answers}
    • Grade 5 Targeter Exams {Plus Answers}
    • Grade 2 Term 2 Exams {Plus Answers}
    • Grade 7 Term 2 Exams {Plus Answers}
    • Grade 9 Term 2 Latest Exams {All Subjects}
    • Grade 7 Term 2 Latest Exams {All Subjects}
    • Grade 6 Term 2 Latest Exams {All Subjects}
    • Agriculture Form One Schemes of Work {As per new School Calendar)
    • CBC TOOLS FOR ASSESSING CORE COMPETENCIES, ALL AREAS – PDF DOWNLOAD
    • Mathematics syllabus pdf Free
    • Free Grade 2 Rationalized CBC Notes
    • Latest Guides For Secondary School Set Books 2022-2026
    • KCSE Mokasa Biology Paper 2 Joint Exams and Marking Schemes Free Access
    • CHEMISTRY FORM 2 NOTES- EDITABLE
    • COMPUTER STUDIES FORM 2 SCHEMES OF WORK TERM 1-3 FREE
    • FORM 1-4 FREE EXAMS DOWNLOADS AND MARKING SCHEMES
    • BIOLOGY PAST KCSE QUESTIONS & ANSWERS PER TOPIC- GENETICS IN PDF
    • Free Biology Form 4 KCSE Exams
    • HOME SCIENCE TEACHING UPDATED NOTES PDF
    • Free Grade 2 CBC Notes, Exams & Schemes of Work Downloads
    • Breaking Education News
    • Breaking News
    • Featured
    • General News
    • HELB News Portal
    • IEBC LATEST NEWS
    • KMTC News Portal
    • KNEC News Portal
    • Knec Schools Portal
    • KUCCPS News Portal
    • Latest Jobs
    • MONEY & FINANCING
    • NHIF and Medical Schemes
    • TEACHERS' NEWS PORTAL
    • Teachers' Resources
    • TSC News Portal
    • Universities and Colleges Portal
    • Breaking Education News
    • Breaking News
    • Featured
    • General News
    • HELB News Portal
    • IEBC LATEST NEWS
    • KMTC News Portal
    • KNEC News Portal
    • Knec Schools Portal
    • KUCCPS News Portal
    • Latest Jobs
    • MONEY & FINANCING
    • NHIF and Medical Schemes
    • TEACHERS' NEWS PORTAL
    • Teachers' Resources
    • TSC News Portal
    • Universities and Colleges Portal
    Archives
    • September 2025
    • August 2025
    • July 2025
    • June 2025
    • May 2025
    Facebook X (Twitter) Instagram Pinterest
    • TSC News Portal
    • KMTC News Portal
    • HELB News Portal
    • MONEY & FINANCING
    • Advertise with Us
    • KNEC News Portal
    • Knec Schools Portal
    • KUCCPS News Portal
    • Teachers’ Resources
    © 2025 ThemeSphere. Designed by ThemeSphere.

    Type above and press Enter to search. Press Esc to cancel.