NAME: ………………………………………………… ADM NO: ………

SCHOOL: ……………………………………SIGN: ……………………………

DATE: …………………………….
565/2
BUSINESS STUDIES
Paper 2
FORM THREE
July 2023
2 ½ hours

MIGORI COUNTY BUSINESS STUDIES ASSOCIATION

(MICOBUSSA)
BUSINESS STUDIES
PAPER 2

INSTRUCTIONS TO CANDIDATES
a) Write your name and Admission number in the spaces provided above.
b) Sign and write the date of the examination in the spaces provided above.
c) All answers should be written in the materials provided.
d) The paper consists of 3 printed pages
e) Kindly check the question paper to ascertain that all the pages are printed as indicated and
no question is missing.
f) All questions carry equal marks.

For Examiner’s use only

Question Max. Score Candidate’s
score
1 20
2 20
3 20
4 20
5 20
6 20
Total Score

PAPER 2
1a) Explain Any Five measures the Kenya Kwanza government should put in place to solve
unemployment in Kenya (10 Marks)
b) Explain Any Five reasons that would make a trader adopt a particular means of communication.
(10 Marks)

2.a. The following information was extracted from the books of Juma Traders as at April 2022.
April 1: Juma started a business with Kshs. 80,000 in cash.
April 2: Bought stationary for Kshs.400 and paid in cash.
April 3: Opened a bank account and deposited Kshs. 50,000 from the cash till.
April 4: Bought a motor vehicle worth Kshs. 250,000 from Weru Traders on credit.
April 5: Bought postage stamps for Kshs.600 in cash.
Required:
Record the above transactions in the relevant ledger accounts, balance them off and extract a trial
balance. (10mks)
b) Explain any five challenges that face small-scale retailers in Kenya today (10 Marks)

3a) Describe the procedure of getting an Insurance policy (10 Marks)

b) Explain any five factors that can lead to an increase in demand for bread in Kisii town.
(10 Marks)
4a) Explain any five channels that Toyota can use to distribute vehicle spare parts from Japan
to Kenyan Markets (10 Marks)
b)Explain five characteristics that qualify building stones as economic resources. (10 Marks)

5a) Explain Any five sources of capital to an already established partnership Business.(10 Marks)
b)Explain five duties of commercial attaches’ in external trade promotion.(10 marks)
6a)The following Balance sheet was wrongly prepared by Nyamimo Trades, Re-draft it clearly
showing Total fixed Assets, current Assets, Liabilities and capital.

NyamimoTraders, Balance Sheet

as at 30/06/2022

Assets Capital +Liabilities

Bank overdraft 1,800 Debtors 5,800
Cash 4,000 Drawings 1,200
Unpaid Postage 5,500 Profit 4,500
Unpaid electricity 1,200 Stationery 15,500
Premises 3,000 Furniture 3,000
Creditors 4,000 Typewriter 2,500
Short term loan 1,500 long term loan 11,500 Capital
14,000
Bicycle 4,500
Stock 4500
----------------- --------------
 44,000 44 ,000
========== =========
b).Explain Any five Differences between Private limited company and Public limited company (10
Marks)