KCSE 2024 Business Studies Paper 2 Questions and Answers
KCSE 2024 Business Studies Paper 2 Questions and Answers
This page contains the official Kenya National Examinations Council (KNEC) Business Studies question paper and marking scheme from the 2024 KCSE examination. Below, you will find the complete set of questions as they appeared to candidates in the exam hall, followed by the official marking scheme used by examiners. Use these authentic KCSE resources to practice under real conditions and effectively revise for KCSE exams.
Question 1/6
(a) Guru, an entrepreneur, wants his new products to reach the consumers. Explain five factors he would consider in choosing a distribution channel to use. (10 marks)
(b) Discuss five demerits of free trade to a country. (10 marks)
Question 2/6
(a) Manji bought a car for business use. Describe five steps he will follow to obtain an insurance policy for the car. (10 marks)
(b) Kimali started a transport business with one matatu. Over the years, the number of matatus has increased to 40. Explain five factors that could have made his business to thrive. (10 marks)
Question 3/6
(a)Explain five factors in the external environment that may positively influence the operations of a business. (10 marks)
(b) The following transactions relate to Mzabuni Traders for the month of November 2022.
Nov.1: Started business with Sh. 20,000 in cash and a bank overdraft of Sh. 10,000
2: Purchases of Sh. 15,000 in cash
5: Ngonde, a debtor, settled his account of Sh. 15,000 by issuing a cheque of Sh. 12,000, and the rest by cash
7: Paid wages by cheque Sh. 4,000
8: Received cash from Oloo, a debtor of Sh. 3,500
9: Paid Warui, a creditor Sh. 5,000 in cash
12: Received a cheque of Sh. 7,250 from Maweu
15: Paid insurance Sh. 2,000 by cheque
16: Deposited Sh. 6,000 from the office till into the bank account
18: Purchased stock worth Sh. 9,500 by cheque
20: Received a cheque of Sh. 10,000 from Mawea
21: Paid Sh. 3,200 water bill in cash
24: Received Sh. 8,600 from Ngonde in cash
28: Paid rent Sh. 5,000 by cheque
30: Took all the cash and deposited it into the bank account
Required:
Prepare a two-column cash book for the month of November 2022. (10 marks)
Question 4/6
(a) Discuss five causes of unemployment in Kenya. (10 marks)
(b) Explain five reasons why people earning the same income may hold different amounts of money for the transactions motive. (10 marks)
Question 5/6
(a) Explain four types of capital in a business. (8 marks)
(b)
(i) With the aid of a diagram, describe the effect of a shift in the supply curve to the right while the demand curve remains constant. (6 marks)
(ii) Explain three factors that can lead to the shift in the supply curve to the right. (6 marks)
Question 6/6
(a) The Government of Kenya intends to privatize some public corporations. Discuss five reasons that may have led to this decision. (10 marks)
(b) The following balances were extracted from the books of Jabali Enterprises on 1st January 2021.
Capital: Sh. 1,000,000
Motor vehicle: Sh. 400,000
Creditors: Sh. 360,000
Loan: Sh. 200,000
Debtors: Sh. 160,000
Stock: Sh. 120,000
Cash in hand: Sh. 200,000
Cash at bank: Sh. 280,000
Machinery: Sh. 400,000
The following transactions took place during the year ending 31st December 2021.
(i) Sold machinery worth Sh. 120,000, received Sh. 80,000 in cash and balance to be settled at a later date.
(ii) Purchased goods worth Sh. 200,000 and paid Sh. 140,000 cash, the remaining amount remained unpaid.
(iii) Took Sh. 20,000 cash from the business kitty for personal use.
Required: Prepare Jabali Enterprises’ balance sheet as at 31st December 2021
Access KCSE 2024 Business Studies Paper 1 and 2 Answers