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Business Form 4 Past Paper 2 Questions with Marking Scheme

1.   (a) Explain five benefits that could accrue to a customer who buys goods from a departmental

      store.                                                                                                                                (10mks)

(b) Explain five roles played by licensing as a government regulatory tool.             (10mks)

2.   (a) Explain five services that the central bank of Kenya offers to commercial banks.                                                                                                                                                                      (10mks)

(b) The following information relates to the business of Kipisigs Traders for the week ended

       29th Feb 2016.

                        Feb 24th         Started business with shs 24,000 in thebank.      

                        Feb 25 th        Bought goods worth shs 18,000 by cheque.

                        Feb 26 th        Sold goods for cash shs 18,900      

                        Feb 28 th        Cash sales worth Kshs 5,625                                 

                        Feb 29 th        Paid commission Kshs 900 in cash.          


                        Prepared ledger accounts and balance them off.                                                (10mks)

3.   (a) Describe five channels followed in exporting agricultural product.                     (10mks)


The following trial balance was extracted from Milka traders on 31st Dec 2020.

Prepare Milka traders Trading, profit and loss account for the year ending 31/12/2020.

4.   (a) Explain five reasons why a country imposes taxes on her citizens.                       (10mks)

(b)Outline five differences between a public limited company and a cooperative society.


                            Public                Co-operative society

5.   (a) Using a diagram illustrate the effects of a positive shift of a demand curve on the

      equilibrium point, price and quantity                                                                        (10mks)

(b) Explain five features of land as a factor of production.                                           (10mks)

6.   (a) Mmanyi Enterprises have decided to construct their own warehouse. Explain five

      benefits they are likely to derive.                                                                                (10mks)

(b) Explain five importance of filing documents in an organization                           (10mks)