0% found this document useful (0 votes)

20 views97 pages

f3 Bus Et3 National Schools Trials-1

Uploaded by

heronlylaureen

We take content rights seriously. If you suspect this is your content, claim it here.

Available Formats

Download as PDF, TXT or read online on Scribd

0% found this document useful (0 votes)

20 views97 pages

f3 Bus Et3 National Schools Trials-1

Uploaded by

heronlylaureen

We take content rights seriously. If you suspect this is your content, claim it here.

Available Formats

Download as PDF, TXT or read online on Scribd

You are on page 1/ 97

TOP SCHOOLS TRIALS

FORM 3 BUSINESS

2024 ACADEMIC YEAR

A Series of Assessment Test Papers Covering

the Whole Syllabus for the whole year
sampled from 8 Top National schools

FOR MARKING SCHEMES:

Contact
0724333200/0795491185/0768321553
Or
Order online at:
www.kenyaeducators.co.ke

KENYA EDUCATORS CONSULTANCY

©Copyright Kenya Educators Consultancy Compilation & Publication
(www.kenyaeducators.co.ke) Contact 0724333200/0768321553 for answers
Table of Contents
1.
ALLIANCE HIGH SCHOOL

KAPSABET BOYS HIGH SCHOOL

3. KENYA HIGH SCHOOL

4. MANGU HIGH SCHOOL

5. MARANDA BOYS HIGH SCHOOL

6. MASENO SCHOOL

7. MOI GIRLS KABARAK

NYAMBARIA BOYS HIGH SCHOOL

©Copyright Kenya Educators Consultancy Compilation & Publication

(www.kenyaeducators.co.ke) Contact 0724333200/0768321553 for answers
END OF YEAR EXAMS 2024
Paving Way For Kenya Certificate of Secondary Education Success

Name ………………………………………………………….. Admission no…………….

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

FORM 3

BUSINESS

PAPER 1

TIME: 2Hours

INSTRUCTIONS TO CANDIDATES:

 Write your name and index numbers in the spaces provided

 All answers should be written in the spaces provided in this booklet.

For Examiner’s Use Only

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

MARKS

QUESTION 15 16 17 18 19 20 21 22 23 24 25

MARKS

Contact 0724333200/0795491185 for marking schemes or order online

at www.kenyaeducators.co.ke
1. State whether each of the following activities would satisfy basic or secondary wants.
(4 marks)
Activities Basic Secondary
(a) Buying clothes for the family.
(b) Transporting milk.
(c) Providing food for school children.
(d) Entertaining the President.

2. Give FOUR reasons why the production in subsistence sector is usually low. (4 Marks)

……………………………………………………………………………………………………………..
……………………………………………………………………………………………………………..
……………………………………………………………………………………………………………..
……………………………………………………………………………………………………………..
………………………………………………………………………………………………….................
3. Equity bank in Nakuru wishes to change their office layout and adopt an open office layout. Advise
them on the advantages of an open office layout. (4 Marks)
……………………………………………………………………………………………………………..
……………………………………………………………………………………………………………..
……………………………………………………………………………………………………………..
……………………………………………………………………………………………………………..
………………………………………………………………………………………………….................
4. Describe four roles of Nairobi stock exchange as a market a for securities. (4 Marks)
……………………………………………………………………………………………………………..
……………………………………………………………………………………………………………..
……………………………………………………………………………………………………………..
……………………………………………………………………………………………………………..
………………………………………………………………………………………………….................

5. Outline four reasons why a new business may fail. (4 marks)

Contact 0724333200/0795491185 for marking schemes or order online

at www.kenyaeducators.co.ke
6. Outline any four measures an organization can take to improve the efficiency of labour in production.
(4 Marks)
……………………………………………………………………………………………………………..
……………………………………………………………………………………………………………..
……………………………………………………………………………………………………………..
……………………………………………………………………………………………………………..
………………………………………………………………………………………………….................
7. Give four reasons for the existence of small firms in the economy despite the advantages experienced
by large scale business (4 marks)
……………………………………………………………………………………………………………..
……………………………………………………………………………………………………………..
……………………………………………………………………………………………………………..
………………………………………………………………………………………………….................

8. Outline FOUR disadvantages of using television in advertising organization’s products. (4 marks)

9. Highlight four advantages of a bonded warehouse to the government. (4 marks)

Contact 0724333200/0795491185 for marking schemes or order online

at www.kenyaeducators.co.ke
10. Outline four implications of a rapid growing population in a country. (4 marks)
……………………………………………………………………………………………………………..
……………………………………………………………………………………………………………..
……………………………………………………………………………………………………………..
……………………………………………………………………………………………………………..
………………………………………………………………………………………………….................
11. State four ways in which the utility of a commodity can be increased. (4 marks)

13. Highlight four causes of unemployment in Kenya. (4 Marks)

Contact 0724333200/0795491185 for marking schemes or order online

at www.kenyaeducators.co.ke
14. The following balances relate to the business of Roba Traders during the period ended 31st March
2014.
Shs.
Cash at bank 680,000
Premises 500,000
Machinery 175,000
Creditors 190,000
Furniture 85,000
Motor van 200,000
Cash in hand 50,000
Capital 1,000,000
Sales 500,000
Extract the trial balance of Roba Traders as at 31st March 2014. (4mks)

15. Outline four factors that may give rise to monopoly power in an economy. (4mks

Contact 0724333200/0795491185 for marking schemes or order online

at www.kenyaeducators.co.ke
16. Outline four requirements for one to start a limited liability company as one of the forms of business
units. (4 mks)
……………………………………………………………………………………………………………..
……………………………………………………………………………………………………………..…
…………………………………………………………………………………………………………..……
………………………………………………………………………………………………………..
………………………………………………………………………………………………….................

17. Below is a demand and supply curve.

Highlight the factors that may have led to the above behavior. (4 mks)
……………………………………………………………………………………………………………..
……………………………………………………………………………………………………………..
……………………………………………………………………………………………………………..
……………………………………………………………………………………………………………..
………………………………………………………………………………………………….................

18. Outline four factors that would lead to increase in national income of a country. (4mrks)
……………………………………………………………………………………………………………..
……………………………………………………………………………………………………………..
……………………………………………………………………………………………………………..
……………………………………………………………………………………………………………..
………………………………………………………………………………………………….................

Contact 0724333200/0795491185 for marking schemes or order online

at www.kenyaeducators.co.ke
19 Define the following terms as used in insurance. (4 Marks)

(i).
Insured…………………………………………………………………………………………………
…………………………………………………………………………………………………………
(ii).
Risk………………………………………………………………………………………………………
…………………………………………………………………………………………………………...
(iii)
Premium…………………………………………………………………………………………………
…………………………………………………………………………………………………………..
(iv).Sum insured
………………………………………………………………………………………………………………
………………………………………………………………………………………………………………
20. Enter each of the following transactions in the relevant ledger accounts. (4 Marks)
(a) Started business in June 15th 2014 with Ksh. 500,000 in bank.
(b) Bought a motor vehicle in June 16th 2014 for KSh. 250,000, payment made by a cheque.

21. State FOUR features of chain stores. (4 Marks)

Contact 0724333200/0795491185 for marking schemes or order online

at www.kenyaeducators.co.ke
22. Identify the machine used to perform the following tasks. (4 Marks)

a) To count coins and notes

b) To trim paper into required sizes and shapes
c) To fold documents, place them in envelope and seal the envelope
d) To print postage impression on envelopes
23. Outline four ways which the government can use to influence the supply of maize in Kenya.
(4 Marks)
……………………………………………………………………………………………………………..
……………………………………………………………………………………………………………..
……………………………………………………………………………………………………………..
……………………………………………………………………………………………………………..
………………………………………………………………………………………………….................

24. Give FOUR reasons why a consumer should satisfy basic wants before secondary wants. (4mks)
……………………………………………………………………………………………………………..
……………………………………………………………………………………………………………..
……………………………………………………………………………………………………………..
……………………………………………………………………………………………………………..
………………………………………………………………………………………………….................

25. State four factors that an entrepreneur would consider before investing in a business opportunity.
(4mks)
……………………………………………………………………………………………………………..
……………………………………………………………………………………………………………..
……………………………………………………………………………………………………………..
……………………………………………………………………………………………………………..
…………………………………………………………………………………………………................

Contact 0724333200/0795491185 for marking schemes or order online

at www.kenyaeducators.co.ke
END OF YEAR EXAMS 2024
Paving Way For Kenya Certificate of Secondary Education Success

Name ………………………………………………………….. Admission no…………….

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

FORM 3

BUSINESS

PAPER 2

TIME: 2Hours

INSTRUCTIONS TO CANDIDATES:

 Write your name and index numbers in the spaces provided

 All answers should be written in the spaces provided in this booklet.
 Answer any five questions.

For Examiner’s Use Only

Qs 1 2 3 4 5 6 Total scores

Mks

1. .a) Explain five reasons why it is important for an entrepreneur to have a business plan.
(10mks)

Contact 0724333200/0795491185 for marking schemes or order online at

www.kenyaeducators.co.ke
b) Explain five ways in which the stock exchange market facilitates the growth of the
country’s economy. (10mks)

2. a) Outline five problems that are likely to be encountered when measuring national income.
(10mks)

b) Explain five factors that a trader should consider before giving credit. (10mks)

3. a) Highlight five circumstances under which a manufacturer would opt to use salesmanship
as a way of promoting his products. (10mks)

b) Explain five sources of business ideas that a potential investor can use when making
investment decision. (10mks)

4. a) Explain five ways in which the government can create an environment that is conducive
for doing business. (10mks)

b) The following balances were extracted from Witu books of accounts on January 2017;
Motor vehicles 250, 000
Furniture 8, 000
Stock 37, 000
Debtors 20, 000
Cash at bank 15, 000
Cash in hand 5, 500
ADC loan 100, 000
Creditors 12, 000
Capital 224, 000
The following transactions took place during the month.
January 1 deposited an additional shs.30, 000 from private sources into the business
bank account.
January 5 issued a cheque for shs. 80, 000 to ADB bank which was honoured by the
bank.
10 sold goods whose cost was shs.3, 500 at shs.7, 000 and received the
proceeds by the cheque.
15 bought a new motor vehicle worth shs.50,000 having borrowed an
additional loan from ADB bank.
17 took goods worth shs. 1, 200 to be used by his family.
20 sold one of the old motorvehicles whose book value was shs.27, 000 at
shs. 22, 000 on credit.

Contact 0724333200/0795491185 for marking schemes or order online at

www.kenyaeducators.co.ke
25 received cash shs.15, 000 from a debtor.
29 paid a creditor by chequeshs.8, 500
30 bought more goods on credit worth shs. 3, 200

Prepare Witu’s balance sheet as at 30th April 2017. (10mks)

5. a) explain any five causes of an increase in supply of a given commodity. (10mks)

b) Describe the procedure followed in seeking compensation from the insurance

company. (10mks)

6. a) Despite the economies of scale enjoyed by large firms, some firms continue to operate on
small scale basis. Explain five reasons. (10mks)

b) Explain five reasons why several competing firms would combine and form one firm.
(10mks)

Contact 0724333200/0795491185 for marking schemes or order online at

www.kenyaeducators.co.ke
END OF YEAR EXAMS 2024
Paving Way For Kenya Certificate of Secondary Education Success

Name ………………………………………………………….. Admission no…………….

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

FORM 3

BUSINESS

PAPER 1

TIME: 2Hours

INSTRUCTIONS TO CANDIDATES

1. Write your name and admission No. in the spaces provided above.
2. Answer all the questions in the spaces provided

FOR EXAMINER’S USE ONLY

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

Marks

[Contact 0724333200/0795491185/ 0768321553 for Marking Schemes or Order

online at www.kenyaeducators.co.ke]
Question 13 14 15 16 17 18 19 20 21 22 23 24 25

Marks

1 a) Outline four reasons why organizations need to safe keep documents in files (4mks)

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

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

2. Give the four components of business studies (4mks)

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

3. List four reasons why a business may fail (4mks)

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

4.Use the table below to outline four differences between basic wants and secondary wants
(4mks)
Basic wants Secondary wants

[Contact 0724333200/0795491185/ 0768321553 for Marking Schemes or Order

online at www.kenyaeducators.co.ke]
5. Identify four activities in the extractive level of production (4mks)

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

6. Outline four ways in which partners may be classified (4mks)

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

7. Highlight four characteristics of mail order store (4mks)

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

8. Outline the meaning of the following terms as used in accounting (4mks)

i)Networth of a business

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

ii)Business transaction

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

iii) Cash transaction ……………………………………………………………………………………..

[Contact 0724333200/0795491185/ 0768321553 for Marking Schemes or Order

online at www.kenyaeducators.co.ke]
………………………………………………………………………………………………………………

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

vi)Credit transaction

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

9. State four main factors that may limit the level of a country’s national income. (4mks)

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

………………………………………………………………………………………………………………
10. Identify four ways in which a business may be of benefit to people in the surrounding area

(4mks)

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

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

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

………………………………………………………………………………………………………………
11. for each of the transaction shown in the table below, state the balance sheet items affected by each
transaction and the manner in which it is affected using (+) for increase and (-) for decrease.
(4mks)
Transaction Balance sheet item(s) Items affected items
increased decreased
a)Start of a business with Ksh.80,000 cash
b)Borrowing of Sh. 30,000 from a bank for
business use
c)Banking of business profit of Ksh 12,000
into the business account

[Contact 0724333200/0795491185/ 0768321553 for Marking Schemes or Order

online at www.kenyaeducators.co.ke]
d)Sale of part of business premise for cash
Sh.25,000.
12. State four ways of increasing efficiency and effectiveness of human porterage (4mks)

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

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

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

13. The following information relates to Makuyu Traders. Determine the missing figures.
(4mks)
Assets Liabilities Capital
a) 50000 70000 A
b) 320000 B 280000
c) C 14360 12000
d) 67,000 D 27,705

14.Post the following transactions in the ledger books of Embakasi traders (4mks)
March 1/2013 commenced business with sh. 150,000 cash at bank
March 5/2013 bought machinery in credit for sh. 9500

[Contact 0724333200/0795491185/ 0768321553 for Marking Schemes or Order

online at www.kenyaeducators.co.ke]
15. Give four reasons that make insurance companies decline to insure acts of nature
(4mks)
………………………………………………………………………………………………………………

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

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

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

16. Name 4 sources of business ideas. (4mks)

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

17. State 4 office etiquette of a business person. (4mks)

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

18. Mention four main types of demand. (4mks)

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

19.State four principle of cooperatives. (4mks)

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

[Contact 0724333200/0795491185/ 0768321553 for Marking Schemes or Order

online at www.kenyaeducators.co.ke]
………………………………………………………………………………………………………………

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

20. Name 4 methods of government involvement in business (4mks)

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

…………………………………………………..;…………………………………………………………

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

21. List four types of unemployment. (4mks)

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

………………………………………………………………………………………………………………
23. Name 4 types of life assurance contracts (4mks)

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

24. Outline 4 benefits of a bonded warehouse to the importer. (4mks)

[Contact 0724333200/0795491185/ 0768321553 for Marking Schemes or Order

online at www.kenyaeducators.co.ke]
………………………………………………………………………………………………………………

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

25. Give 4 characteristics of oligopoly market structure. (4mks)

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

[Contact 0724333200/0795491185/ 0768321553 for Marking Schemes or Order

online at www.kenyaeducators.co.ke]
END OF YEAR EXAMS 2024
Paving Way For Kenya Certificate of Secondary Education Success

Name ………………………………………………………….. Admission no…………….

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

FORM 3

BUSINESS

PAPER 2

TIME: 2Hours

INSTRUCTIONS TO CANDIDATES:

 Write your name and index numbers in the spaces provided

 All answers should be written in the spaces provided in this booklet.
 Answer any five questions.

For Examiner’s Use Only

Qs 1 2 3 4 5 6 Total scores
(a) (b) (a) (b) (a) (b) (a) (b) (a) (b) (a) (b)

Marks

[Contact 0724333200/0795491185/ 0768321553 for Marking Schemes or Order

online at www.kenyaeducators.co.ke]
1.
a) Explain five accounting documents used in home trade. [10 mks]
b) There has been a decline in demand for wooden furniture. Explain five factors that may have
caused this trend. [10 mks]
2.
a) Explain five features that differentiate a public limited company from a partnership.
[10 mks]
b) Describe five common channels of distribution for the locally manufactured goods. [10mks]

3.
a) The following balances were extracted from the books of Mageta traders on 31st Jan 2015.
(Shs)

Land 82 000

Furniture 61 500

Debtors 17 700

Bank 91 000

Stock 18 600

Cash 10 800

10 yrs Bank loan 165 000

Creditors 34 100

Required: [10mks]

i. Determine the business capital

ii. Prepare a Mageta Traders balance sheet as at 31st Jan 2015.
b) Highlight five factors that may promote entrepreneurship in Kenyan. [10mks]
4.
a) Explain five ways in which a warehouse may promote trade. [10mks]
b) Explain five problems that may be faced when measuring national income using the output
approach. [10mks]
5.
a) Outline five differences between open office layouts and enclosed office layouts. [10mks]
b) Explain five reasons for consumer protection. [10mks]
6.
a) Outline four circumstances in which a trader may offer after sales service to the buyer.
[10mks]

[Contact 0724333200/0795491185/ 0768321553 for Marking Schemes or Order

online at www.kenyaeducators.co.ke]
b) The following information was extracted from books of Mamboleo Traders in the month of
September, 2014.
September 1 Had cash in hand shs. 15 500 and a bank overdraft of shs. 9 700.
September 3 Bought goods for sale shs. 12 300
September 5 Sold goods in cash shs. 8 500
September 9 Sold goods on credit shs. 10 000
September 12 Receive a cheque of shs. 9 000 from a debtor
September 15 Paid a creditor shs. 10 000
September 17 Paid wages shs. 2 600 in cash
September 19 Received a cheque shs. 23 400 from Samson for goods sold in January
September 23 Withdrew shs. 7 700 from the bank for office use.
September 24 Paid electricity bills by cheque of shs. 1 200
September 25 Received a cheque of shs. 11 500 from a debtor
September 26 Made cash sales of shs. 12 800
September 27 Purchased goods worth shs. 8 950 in cash
September 28 Paid water bills by cheque shs. 2 800

Required: Prepare a two column cash book. [10mks]

[Contact 0724333200/0795491185/ 0768321553 for Marking Schemes or Order

online at www.kenyaeducators.co.ke]
END OF YEAR EXAMS 2024
Paving Way For Kenya Certificate of Secondary Education Success

Name ………………………………………………………….. Admission no…………….

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

FORM 3

BUSINESS

PAPER 1

TIME: 2Hours
1 a) Outline four reasons why organizations need to safe keep documents in files (4mks)
……………………………………………………………………………………………………………………
……………………………………………………………………………………………………………………
……………………………………………………………………………………………………………………
……………………………………………………………………………………………………………………
……………………………………..…………………………………………………………………………….
2.Give the four components of business studies (4mks)
……………………………………………………………………………………………………………………
……………………………………………………………………………………………………………………
……………………………………………………………………………………………………………………
……………………………………………………………………………………………………………………

[Contact 0724333200/0795491185/ 0768321553 for Marking Schemes or Order online at

www.kenyaeducators.co.ke]
……………………………………………………………………………………………………………………
…………………………………………………………………………………………………………………….
3.A business is expected to be socially responsible to various groups such as customers, employees,
government, public and suppliers. Indicate against each statement the most appropriate group (5mks)

Statement Group
i)Fair remuneration
ii)Timely tax returns
iii)Fairness in tender allocation
iv)Equal job opportunities
Quality products

4.Use the table below to outline four differences between basic wants and secondary wants (4mks)
Basic wants Secondary wants

5.Identify three activities in the extractive level of production (4mks)

……………………………………………………………………………………………………………………
……………………………………………………………………………………………………………………
……………………………………………………………………………………………………………………
…………………………………………………………………………………………………………………….
6.Outlinefour ways in which partners may be classified (4mks)
……………………………………………………………………………………………………………………
……………………………………………………………………………………………………………………

[Contact 0724333200/0795491185/ 0768321553 for Marking Schemes or Order online at

www.kenyaeducators.co.ke]
……………………………………………………………………………………………………………………
…………………………………………………………………………………………………………………….
7.Highlight four characteristics of mail order store (4mks)
……………………………………………………………………………………………………………………
……………………………………………………………………………………………………………………
……………………………………………………………………………………………………………………
…………………………………………………………………………………………………………………….
8.Outline the meaning of the following terms as used in accounting (4mks)
i)Network of a business ……………………………………………………………………………………..
……………………………………………………………………………………………………………………
…………………………………………………………………………………………………………………….
ii)Business transaction ……………………………………………………………………………………..
……………………………………………………………………………………………………………………
…………………………………………………………………………………………………………………….

iii)Cash transaction ……………………………………………………………………………………..

……………………………………………………………………………………………………………………
…………………………………………………………………………………………………………………….
vi)Credit transaction ……………………………………………………………………………………..
……………………………………………………………………………………………………………………
…………………………………………………………………………………………………………………….
9.Statefour main factors that may limit the level of a country’s national income. (4mks)
……………………………………………………………………………………………………………………
……………………………………………………………………………………………………………………
……………………………………………………………………………………………………………………
………………………………………………………………………………………………………………….
……………………………………………………………………………………………………………………

[Contact 0724333200/0795491185/ 0768321553 for Marking Schemes or Order online at

www.kenyaeducators.co.ke]
10.Identify four ways in which a business may be of benefit to people in the surrounding area (4mks)
……………………………………………………………………………………………………………………
………………………………………………..……………………………………………………………………
…………………………………………………………………………………………………………………….
……………………………………………………………………………………………………………………
…………………………………………………………………………………………………………………….
11.State the effect of each of the following transaction on the balance sheet by writing increase or decrease or
no effect in each case
Transaction Effect
a)Bought machinery on credit
b)withdrew cash from the business for personal use
c)Purchased stock in cash
d)Paid outstanding by cheque

12.State four ways of increasing efficiency and effectiveness of human porterage

……………………………………………………………………………………………………………………
……………………………………………………………………………………………………………………
…………………………………………..……………………………………………………………………….
……………………………………………………………………………………………………………………
…………………………………………………………………………………………………………………….
13.The following information relates to Makuyu Traders. Determine the missing figures. (3mks)

Assets Liabilities Capital

a) 50000 70000
b) 320000 280000
c) 14360 12000

[Contact 0724333200/0795491185/ 0768321553 for Marking Schemes or Order online at

www.kenyaeducators.co.ke]
14.Post the following transactions in the ledger books of Embakasi traders (4mks)
March 1/2013 commenced business with sh. 150,000 cash at bank
March 5/2013 bought machinery in credit for sh. 9500
March 7/2013 withdrew sh 5000 from bank for office use
March 8/2013 paid sh 3000 cash to creditor
15.Give four reasons that make insurance companies decline to insure acts of nature (4mks)
……………………………………………………………………………………………………………………
……………………………………………………………………………………………………………………
…………………………….……………………………………………………………………………………….
……………………………………………………………………………………………………………………
…………………………………………………………………………………………………………………….
16.Name 4 sources of business ideas. (4mks)

……………………………………………………………………………………………………………………
……………………………………………………………………………………………………………………
…………………………………………………………………………………………………………………….
……………………………………………………………………………………………………………………
…………………………………………………………………………………………………………………….
17.State 4 office etiquette of a business person. (4mks)

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

18.Mention four main types of demand. (4mks)

……………………………………………………………………………………………………………………
……………………………………………………………………………………………………………………
………………………………….………………………………………………………………………………….
……………………………………………………………………………………………………………………
…………………………………………………………………………………………………………………….
5

[Contact 0724333200/0795491185/ 0768321553 for Marking Schemes or Order online at

www.kenyaeducators.co.ke]
20.Name 4 methods of government involvement in business (4mks)

……………………………………………………………………………………………………………………
……………………………………………..;……………………………………………………………………
…………………………………………………………………………………………………………………….
……………………………………………………………………………………………………………………
…………………………………………………………………………………………………………………….
21.Name 4 types of public utilities. (4mks)

……………………………………………………………………………………………………………………
……………………………………………………………………………………………………………………
…………………………………………………………………………………………………………………….
……………………………………………………………………………………………………………………
…………………………………………………………………………………………………………………….
22.Name 4 barriers of effective communication. (4mks)

……………………………………………………………………………………………………………………
……………………………………………………………………………………………………………………
…………………………….…………………………………………………………………………………….
……………………………………………………………………………………………………………………
…………………………………………………………………………………………………………………….
24.Name 4 characteristic of a good filing system. (4mks)

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

[Contact 0724333200/0795491185/ 0768321553 for Marking Schemes or Order online at

www.kenyaeducators.co.ke]
……………………………………………………………………………………………………………………
…………………………………………………………………………………………………………………….
25.Give 4 characteristics of oligopoly market structure. (4mks)

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

[Contact 0724333200/0795491185/ 0768321553 for Marking Schemes or Order online at

www.kenyaeducators.co.ke]
END OF YEAR EXAMS 2024
Paving Way For Kenya Certificate of Secondary Education Success

Name ………………………………………………………….. Admission no…………….

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

FORM 3

BUSINESS

PAPER 2

TIME: 2Hours

Instructions.
Answer any five questions.

1. a. Explain five features of sole proprietorship form of business. (10mks)

b. Explain five demerits that maybe associated with water transport. (10mks)

2. a. State and explain five measures that maybe taken by the Kenyan government to reduce the
level of unemployment. (10mks)
b. Explain five circumstances which would make an office manager to replace an existing
machine with a modern one. (10mks)

3. a. Give and explain five reasons why an increase in per capita income may not lead to a rise in
standard of living. (10mks)
b. Explain five reasons for the popularity of hypermarkets in Kenya. (10mks)

[Contact 0724333200/0795491185/ 0768321553 for Marking Schemes or Order

online at www.kenyaeducators.co.ke]

1
4. a. There are numbers of circumstances under which business enterprises may choose to
merge. Explain five of them. (10mks)
b. The government of Kenya has decided to sell her poorly performing businesses to private
investors. Explain five reasons for this kind of move. (10mks)

5. a. With the aid of a diagram show the effect of an increase in the supply of a commodity,
while demand remains constant. (10mks)
b. Explain five ways in which commercial attaches promotes a country’s trade with other
countries. (10mks)

6. a. Explain five problems linked to rapid population growth. (10mks)

b. The following balances were extracted from the books of Umoja Traders on 1st October
2020 (10mks)
details shs.
Capital 80,000
Furniture 56,000
Debtors 25,000
Creditors 20,000
Cash 8,000
Bank 11,000

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

i. Took shs. 3000 from bank for family use.
ii. Paid a creditor shs. 4500 in cash.
iii. Purchased land worth shs. 82,000 paying by cheque.
iv. Acquired a ten year bank loan shs. 165,000 which was credited to the business bank
account.
v. Converted a family table worth shs. 5,500 to business use.
vi. Received shs. 7,300 in cash from debtors.

Required:

Prepare Umoja traders balance sheet at the end of October 2020.

[Contact 0724333200/0795491185/ 0768321553 for Marking Schemes or Order

online at www.kenyaeducators.co.ke]

2
END OF YEAR EXAMS 2024
Paving Way For Kenya Certificate of Secondary Education Success

Name ………………………………………………………….. Admission no…………….

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

FORM 3
BUSINESS
PAPER 1
TIME: 2Hours
ANSWER ALL QUESTIONS

1. Identify any four disciplines of business studies.

a) …………………………………………………………………………………………

b) …………………………………………………………………………………………

c) …………………………………………………………………………………………

d) …………………………………………………………………………………………

[Contact 0724333200/0795491185/ 0768321553 for Marking Schemes or Order online

at www.kenyaeducators.co.ke]
2. State four ways in which internal environment of a business may negatively affect its activities.

(4 marks)

3. Outline four benefits that accrue to a society that practice indirect production (4 mks)

4. State difficulties faced by consumers as they strive to satisfy their wants. (4 mks)

5. Tuk-tuks are a common phenomenon in the urban areas. State four disadvantages of using these means

of transport. (4 marks)

[Contact 0724333200/0795491185/ 0768321553 for Marking Schemes or Order online

at www.kenyaeducators.co.ke]
c)

6. Give any four circumstances under which it would be advisable for a manufacturer to sell her products

directly to the consumer. (4 marks)

7. State the type of unemployment relating to each of the following descriptions. (4 marks)

a) Caused by alternating trading patterns occurring at similar times.

b) Arises where workers have more skills and higher qualifications than the job requirements

c) Arises out of a mismatch between the skills possessed by potential employees and the location

of the jobs available

d) Arises when people are unwilling to take up jobs due to low pay

8. Highlight four advantages of government involvement in business activities in Kenya. (4mks)

[Contact 0724333200/0795491185/ 0768321553 for Marking Schemes or Order online

at www.kenyaeducators.co.ke]
c)

9. Highlight four forms of written communication that the minister of education could use to pass on

information. (4 marks)

10. The diagram below shows the current demand for petrol.

Price
Do
Po
Do

O Qo Quantity

a) What is the effect of a fall in the prices of cars on demand for petrol? Give a reason for your answer

(2 marks)

[Contact 0724333200/0795491185/ 0768321553 for Marking Schemes or Order online

at www.kenyaeducators.co.ke]
b) Draw a new demand curve on the diagram above to show the effect of a fall in price of cars.

(2 marks)

11. State four features of a monopolistic market. (4 marks)

[Contact 0724333200/0795491185/ 0768321553 for Marking Schemes or Order online

at www.kenyaeducators.co.ke]
12. Outline four circumstances under which a gap may exist in the market. (4 marks)

13. Highlight the procedure of claiming an insurance claim. (5 marks)

14. State four factors that may be considered when measuring the size of a firm. (4 mks)

[Contact 0724333200/0795491185/ 0768321553 for Marking Schemes or Order online

at www.kenyaeducators.co.ke]
15. The diagram below shows the circular flow of income in a two-sector economy. Indicate what the

letters A, B, C and D represents. (4 marks)

FIRMS

A B
C D

HOUSEHOLDS

A–

B–

C–

D–

16. The following are balances from the books of Gakoigo traders as at 31st December 2015.

Furniture 80,000

Debtors 20,000

Creditors 40,000

5 years KCB loan 300,000

Motor vehicles 400,000

Cash at hand 20,000

Cash at bank 120,000

3 years NBK loan 150,000

[Contact 0724333200/0795491185/ 0768321553 for Marking Schemes or Order online

at www.kenyaeducators.co.ke]
Stock 75,000

Capital 225,000

Prepare Gakoigo traders trial balance as at 31st December,2015. (4 marks)

17. Identify the type of advertisement described by each of the following statements. (4 marks)

Statement Type of advertisement

i) Promotes the name of the manufacturer. .........................................

ii) Creates awareness about a product. …………………………

iii) Uses names of famous persons to promote a product. ………………………….

iv) Portrays a product as better than others ………………………….

18. Highlight three major types of office layouts. (3 mks)

[Contact 0724333200/0795491185/ 0768321553 for Marking Schemes or Order online

at www.kenyaeducators.co.ke]
d)

19. State the effects of the following transactions on the balance sheet totals. whether an increase, decrease

or no effect. (4 marks)

Transaction Effect

i) Owner took cash from the business to buy food for his family.

ii) Received a cheque from a debtor.

iii) Issued a cheque to clear a loan.

iv) Bought goods on credit.

20. Outline four benefits that would make Zainabu to join a savings and credit co-operative society

(SACCO) (4 marks)

[Contact 0724333200/0795491185/ 0768321553 for Marking Schemes or Order online

at www.kenyaeducators.co.ke]
21. On 1st January 2005, Kamau started a furniture shop with capital of Kshs120,000. During the year he

took Kshs12,000 for his son’s birthday party. He also brought into the business private furniture worth

Kshs20,000. At the end of the period, he had made a profit worth Kshs35,000. Determine Kamau’s

capital at the end of the period. (4 marks)

22. Outline four consequences of poor arrangement of goods in a warehouse. (4 mks)

23. Highlight four advantages of paying for transactions using a cheque. (4 mks)

[Contact 0724333200/0795491185/ 0768321553 for Marking Schemes or Order online

at www.kenyaeducators.co.ke]
24. Outline four documents required by the registrar of companies to facilitate registration of Limited

Companies (4 marks)

25. Outline four features of a supermarket ( 4 marks )

[Contact 0724333200/0795491185/ 0768321553 for Marking Schemes or Order online

at www.kenyaeducators.co.ke]
END OF YEAR EXAMS 2024
Paving Way For Kenya Certificate of Secondary Education Success
Name ………………………………………………………….. Admission no…………….
Candidate’s Signature………………… Date……………………….
FORM 3
BUSINESS
PAPER 2
TIME: 2Hours
Instructions to candidates
 This paper consists of six questions.
 Answer any five questions.
 All questions carry equal marks.
 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 Maximum Candidate’s

score Score
20
20
20
20
20
Total
Score

[Contact 0724333200/0795491185/ 0768321553 for Marking Schemes or Order

online at www.kenyaeducators.co.ke]
1. (a). Explain five external factors that an entrepreneur needs to consider when evaluating a
business opportunity. (10 marks)
b). Outline five differences between a partnership and a cooperative forms of business
units. (10 marks)
2. a). Explain five positive implications of overpopulation to a country. (10 marks)
b). The diagram given below shows changes in the supply curve.

S2 S1
Price

S2 S1

0 Quantity

Explain five factors that may have led to the change from S1S1 to S2S2. (10 marks)
3. a). Explain five limitations of using billboards as medium of advertising. (10 marks)

b) Explain five internal economies of scale that a firm can enjoy as its scale of
production increases. (10marks)

4. a) Highlight four documents that are sent to the seller by the buyer in home trade.
(8 marks)

b) On May 1, 2021, Mjanja Shop had cash in hand sh.87,000 and cash at bank
sh.250,000. During the month, the following transactions took place:
2021
May 2: Cash sales sh.60,000
3: Paid salaries sh.101,500 by cheque
7: Received a cheque of sh.76,000 from Henry after allowing him a cash
discount of 5%
13: Bought office furniture by cheque sh.86,000
17: Settled Martha’s account for sh.34,200 in cash, having deducted sh.800 cash
discount.
20: Received a cheque for sh.165,000 in respect of cash sales.

[Contact 0724333200/0795491185/ 0768321553 for Marking Schemes or Order

online at www.kenyaeducators.co.ke]
22: Paid wages sh,25,000 in cash.
24: Withdrew sh.32,000 from the bank for office use.
25: Withdrew sh.4000 cash for personal use
29: Received sh.17,000 cash form Martin in settlement of his account less sh.1000
cash discount.
31: Deposited all the money into the bank except sh.24,000.
Required:
Prepare a three-column cash book duly balanced. (12 marks)

[Contact 0724333200/0795491185/ 0768321553 for Marking Schemes or Order

online at www.kenyaeducators.co.ke]
5 a) Differentiate between life assurance and property insurance (10marks)

b) Explain five circumstances under which personal selling may be most appropriate.
(10 marks)
6. a) Explain five circumstances that would influence a producer to use wholesalers in distributing
his produce. (10 Marks)
b) The following balances were extracted from the ledger accounts of Bidii traders for the year
ended 31st December 2020.
Capital 940, 000.
Bank 100, 000
Accrued expenses 20, 000.
Debtors 60, 000
Creditors 60, 000
Stock 100, 000
10 Years Bank loan 200, 000
3-year ICDC loan 100, 000
Vehicle 300, 000
Plant and machinery 200, 000
Land 500, 000
Drawings 40, 000
Cash 20, 000
Required:
Prepare Bidii traders trial balance for that year ended 31st December 2020. (10 Marks)

[Contact 0724333200/0795491185/ 0768321553 for Marking Schemes or Order

online at www.kenyaeducators.co.ke]
NAME OF SCHOOL: …………………………………………………………………..
NAME………………….................... ADM NO. …………CLASS…………….

END OF TERM 3 EXAMINATION

TIME: 2 HOURS

INSTRUCTIONS TO CANDIDATES

1. Write your name and admission number in the spaces provided above.
2. Answer ALL the questions
3. ALL answers must be written in the spaces provided in this booklet.
4. This paper consists of 8 printed pages.
5. Candidates should check the question paper to ascertain that all the pages are printed as
indicated and no questions are missing.

[Contact 0724333200/0795491185/ 0768321553 for Marking Schemes or Order

online at www.kenyaeducators.co.ke]
1. Highlight four features of basic human wants. (4 marks)

a) ………………………………………………………………………………………………

b) ………………………………………………………………………………………………

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

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

2. List four characteristics of direct production. (4 marks)

a) ………………………………………………………………………………………………

b) ………………………………………………………………………………………………

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

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

3. Mention four benefits of National Transport and Safety Authority (NTSA) to the Kenyan people.
(4 marks)
a) ………………………………………………………………………………………………

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

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

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

4. Outline four factors to consider when deciding on a suitable location of an office (4 marks)
a) ………………………………………………………………………………………………

b) ………………………………………………………………………………………………

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

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

5. Complete the following table by indicating the account to be debited and the one to be credited.
(4 marks)
Transaction Account Dr Account Cr
a) Started a business with sh. 50,000 cash
b) Received a cheque from a debtor

[Contact 0724333200/0795491185/ 0768321553 for Marking Schemes or Order

online at www.kenyaeducators.co.ke]
c) Bought office equipment by cheque
d) Paid creditor in cash

6. Outline four reasons that can make a cheque be dishonored (4 marks)

a) …………………………………………………………………………………………………………

b) …………………………………………………………………………………………………………

c) …………………………………………………………………………………………………………

d) …………………………………………………………………………………………………………

7. Watamu Enterprises had the following assets and liabilities on 1 st May 2014.

Particulars Shs.
Equipment 800,000
Capital 1,200,000
Creditors 100,000
Debtors 200,000
Stock 250,000
Cash at Bank 50,000

The following transactions took place on 2 nd May 2014.

i) Bought goods for resale shs. 150,000 on credit

ii) A debtor paid shs. 100,000 by cheque
iii) Sold the equipment for sh. 900,000 cash

Required: Prepare Watamu Enterprises balance sheet after the above transactions (4 marks)

[Contact 0724333200/0795491185/ 0768321553 for Marking Schemes or Order

online at www.kenyaeducators.co.ke]
8. State four functions of a pro-forma invoice (4 marks)
a) ………………………………………………………………………………………………

b) ………………………………………………………………………………………………

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

d) ………………………………………………………………………………………………

9. Outline four characteristics of economic resources (4 marks)

a) ………………………………………………………………………………………………

b) ………………………………………………………………………………………………

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

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

10. Highlight four disadvantages of carbon copying (4 marks)

a) ………………………………………………………………………………………………

b) ………………………………………………………………………………………………

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

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

11. Outline four reasons that would make an entrepreneur prepare a business plan (4 marks)

a) ………………………………………………………………………………………………

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

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

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

[Contact 0724333200/0795491185/ 0768321553 for Marking Schemes or Order

online at www.kenyaeducators.co.ke]
12. On 2nd November 2006, Oromo received an invoice for sh. 12,000. Terms of payment were trade
discount 5% and cash discount 10%, if payment is made within 30 days. Determine the amount
paid if payment was made on 28th November 2006. (4 marks)

13. Differentiate between a partnership and a co-operative society (4 marks)

Partnership Co-operative society
a) a)

b) b)

c) c)

d) d)

14. Highlight four ways in which an efficient transport system can enhance trade. (4 marks)
a) ………………………………………………………………………………………………

b) ………………………………………………………………………………………………

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

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

15. Outline four factors to be considered when choosing a channel for distribution (4 marks)

a) ………………………………………………………………………………………………

b) ………………………………………………………………………………………………

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

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

16. By use of the book keeping equation, determine the missing values in the table below (4 marks)

[Contact 0724333200/0795491185/ 0768321553 for Marking Schemes or Order

online at www.kenyaeducators.co.ke]
Capital (Ksh.) Current Assets (Ksh.) Liabilities (Ksh.)
900,900 ✓ a)…………… 1,151,600
✓ b)…………… 2,172,100 1,953,750
1,010,000 ✓ c)…………… 664,030
1,260,860 1,450,050 ✓ d)…………..
17. State four advantages of promoting goods using radios (4 marks)
a) ………………………………………………………………………………………………

b) ………………………………………………………………………………………………

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

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

18. Robert Kagoe insured his property whose value was shs. 1,000,000 for shs. 600,000 against the risk
of fire. Later fire broke out and the property was burnt causing a loss of shs. 500,000. Calculate his
compensation. (4 marks)

19. Outline four benefits of bonded warehouse to the government (4 marks)

a) ………………………………………………………………………………………………

b) ………………………………………………………………………………………………

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

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

20. State four types of complaints that a consumer organization may receive from consumers (4 marks)
a) ………………………………………………………………………………………………

b) ………………………………………………………………………………………………

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

[Contact 0724333200/0795491185/ 0768321553 for Marking Schemes or Order

online at www.kenyaeducators.co.ke]
d) ……………………………………………………………………………………………….

21. Name four documents that may be required by the registrar of companies in order to register a
public limited company (4 marks)
a) ………………………………………………………………………………………………

b) ………………………………………………………………………………………………

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

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

22. State the line of communication involved in each of the following: (4 marks)

Statement Line of communication

a) The manager of ABC company Ltd talking to manager
of XYZ company Ltd.
b) A secretary asking for time off from her boss.
c) The production Manager giving instructions to the
secretary of the sales manager.
d) The store keeper giving explanations to the chief
accountant

23. The information given below was extracted from books of Mienco Traders on 31 st December 2014
(4 marks)

Details Amount Shs.

Furniture and Fittings 234,000
Debtors 67,500
Capital 157,900
Commissioned earned 13,200
Creditors 34,750
Drawings 21,800
5 Year Bank Loan 114,450
Discount received 3,000

Required: prepare Birika Traders Trial Balance as at 31 st December 2014 (4 marks)

[Contact 0724333200/0795491185/ 0768321553 for Marking Schemes or Order

online at www.kenyaeducators.co.ke]
24. Highlight four factors that may cause the supply curve to shift to the right. (4 marks)

a) ………………………………………………………………………………………………

b) ………………………………………………………………………………………………

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

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

25. Study the cash book below and answer questions that follow. (4 marks)

Date Details D. All Cash Bank Date Details D. Rec Cash Bank
Shs. Shs. Shs. Shs. Shs. Shs.
2014 2014
Dec. 1 Bal b/d 72,000 Dec. 1 Bal b/d 356,000
Dec. 4 James 600,000 Dec. 12 Dominic 5,000 100,000
Dec. 20 Sales 40,000 Dec. 20 Bal c/d 112,000 144,000
112,000 600,000 5,000 112,000 600,000
Dec. 20 Bal b/d 112,000 144,000

Required:
State the meaning of the transactions that took place on:

a) Dec 1st 2014 (2 marks)

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

b) Dec 4th 2014 (1 mark)

[Contact 0724333200/0795491185/ 0768321553 for Marking Schemes or Order

online at www.kenyaeducators.co.ke]
c) Dec 12th 2014 (1 mark)
………………………………………………………………………………………………
……………………………………………………………………………………………………….

[Contact 0724333200/0795491185/ 0768321553 for Marking Schemes or Order

online at www.kenyaeducators.co.ke]
565/2
BUSINESS STUDIES
Paper 2
FORM 3
2½ hours
NAME:…….………….………………..……ADM NO…………….DATE………
CLASS:………………….…..SIGNATURE………………………..………
Instructions to candidates
1. This paper consists of six questions.
2. Answer any five questions.
3. Write your answers in the answer sheets provided.
4. All questions carry equal marks
FOR EXAMINER’S USE ONLY

QUESTION 1 2 3 4 5 6 TOTAL
MARKS

[Contact 0724333200/0795491185/ 0768321553 for Marking Schemes or

Order online at www.kenyaeducators.co.ke]
1a). Draw a diagram to show the effect of a shift in demand curve to the right on equilibrium
point, price and quantity. (10 marks)
b). Explain five challenges that may be experienced by entrepreneurs in Kenya today.
(10mks)
2a). Outline five circumstances under which personal selling may be appropriate
(10mks)
b). Explain five factors that may contribute to low level of National Income. (10mks)
3a). The following transactions relates to Patu traders in Kakamega in the year 2018.
July 1st : Started a business with kshs. 150,000 in cash.
July 2nd: Opened a bank account and deposited kshs. 30,000.
July 3rd: Bought buildings in cash ksh 60,000.
July 4th : Borrowed a loan in cash kshs. 20,000
July 5th: Bought stationary by cheque worth ksh. 6,000
July 6th: Repaid part of the loan by cheque kshs. 10,000.
Required
Record the above transactions in their various ledgers accounts and balance them off
(10mks)
b). Explain five differences between a public corporation and a private limited company
(10mks)
4a). Explain five benefits that a country would get by encouraging investors to locate businesses in
rural areas (10mks)

b). Explain five circumstances under which cash on delivery will be preferable rather than
the use of cheque in transaction (10mks)
5a). Kamau imported a probox car from Dubai. Illustrate five channels that he could have
used to import the car. (10mks)
b). Explain five positive effects of internal business environment to business organizations
(10mks)
6a). Outline the procedure for claiming compensation by the insured (10mks)
b). On 1st May 2010 Musa Traders had sh. 15, 000 cash in hand and Sh. 160, 450 at bank. During the
month, the following transactions took place.
May 2 Bought goods for Sh. 5, 400 and paid by cheque.

[Contact 0724333200/0795491185/ 0768321553 for Marking Schemes or

Order online at www.kenyaeducators.co.ke]
May 8 Received sh. 7, 200 cash from a debtor
May 15 Paid a creditor Sh. 18, 300 by cheque
May 16 Paid salaries sh 4, 200 in cash
May 18 Sold goods for sh. 9, 200 and was paid by cheque
May 20 Withdrew sh. 30, 000 from bank for office use
May 25 Received sh.8,000 cash from a debtor
May 28 Paid general expenses sh. 4, 000 cash.
May 29 Deposited sh.10,000 cash in bank
May 30 Paid for electricity sh. 2,500 by cheque
Record the above transactions in a two column cash book and balance it off. (10 Marks)

[Contact 0724333200/0795491185/ 0768321553 for Marking Schemes or

Order online at www.kenyaeducators.co.ke]
END OF YEAR EXAMS 2024
Paving Way For Kenya Certificate of Secondary Education Success
Name ………………………………………………………….. Admission no…………….
Candidate’s Signature………………… Date……………………….
FORM 3
BUSINESS STUDIES
PAPER 1
TIME: 2Hours

Instructions to candidates.
● Write your name and admission number in the spaces provided.
● Answer all questions in the spaces provided.
● Answer all questions
● Answers must be written in English.
● Avoid one word answers

Contact 0724333200/0795491185 for marking schemes or order online at

www.kenyaeducators.co.ke
Answer all the questions in the spaces provided.
1. State four external factors that may adversely affect the efficient operations of a business enterprise.
4 mks

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

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

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

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

2. Likoni traders a newly established firm has constructed an office block. Outline four factors that will be
considered when deciding on the type of office layout. 4mks

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

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

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

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

3. State the document used for the following function. 4mks

i. To inform a buyer that his or her account has reduced by a certain amount
………………………………………………………………………………
ii. To request a supplier to provide a particular service to a customer
…………………………………………………………………..……………
iii. To determine the credit worthiness of a customer
…………………………………………………………………………………
iv. To show that transport has been hired to deliver specified goods to a particular buyer
…………………………………………………………………………………..……
4. Classify each of the following accounts in the table below as either real, nominal, or personal 4mks
Account classification
Premises
Rental income
Debtor otieno
Discount allowed

Contact 0724333200/0795491185 for marking schemes or order online at

www.kenyaeducators.co.ke
5. The demand for oranges doubled even if the price of the oranges remained the same over the same
period. State four factors that may account for this. 4mks

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

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

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

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

6. Joshua insured his vehicle against theft, later the vehicle was stolen in a packing bay. Outline the
procedure he would follow when making insurance claim for his vehicle. 5mks

……………………………………………………………………………………………

7. Highlight four benefits of transporting oil from Turkana to Mombasa by pipeline. 4mks

a) ……………………………………………………………………………………………

b) ……………………………………………………………………………………………

c) ……………………………………………………………………………………………

d) ……………………………………………………………………………………………

8. List four drawbacks of verbal communication in an organization. 4mks

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

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

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

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

Contact 0724333200/0795491185 for marking schemes or order online at

www.kenyaeducators.co.ke
9. Identify four ways through which the government encourages establishment of industries throughout the
country. 4 mks

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

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

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

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

10. List four factors that adversely affect the functioning of a warehouse. 4mks

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

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

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

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

Contact 0724333200/0795491185 for marking schemes or order online at

www.kenyaeducators.co.ke
11. Use the diagram below to answer the questions that follow. 3mks

Price a

Quantity
a) Identify the market structure to which the diagram above belongs…………………………………
b) Curve labeled a-a……………………………………………..…. …………………………………
c) Name the part labeled b………………….………………………………………………………………
12. Outline four factors that hinder entrepreneurship in Kenya. 4mks

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

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

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

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

13. Outline four benefits that Kamau would get for being a member of SACCO. 4mks

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

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

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

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

14. Kenya is one of the countries experiencing unemployment problems. Identify four causes of the
problem. 4mks

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

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

Contact 0724333200/0795491185 for marking schemes or order online at

www.kenyaeducators.co.ke
c. ……………………………………………………………………………………………

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

15. Outline four characteristics of direct production 4mks

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

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

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

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

16. Highlight four reasons why a firm may choose to remain small. 4mks

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

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

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

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

17. Outline four reasons why ethical practices are necessary in product promotion. 4mks

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

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

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

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

18. Highlight four factors that may lead to low level of national income. 4mks

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

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

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

Contact 0724333200/0795491185 for marking schemes or order online at

www.kenyaeducators.co.ke
d. ……………………………………………………………………………………………

19. Outline four reasons that make it difficult to satisfy all our wants. 4mks

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

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

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

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

20. The following information has been extracted from the books of Akili as at 30th june 2001
Land and building 235,000
Machinery 142,000
Motor vehicle 198,000
Debtors 25,000
Capital 330,000
Creditors 50,000
Bank overdraft 200,000
Net profit for the year 62,000
From the information above, calculate Akili’s drawings for the year. 4mks

Contact 0724333200/0795491185 for marking schemes or order online at

www.kenyaeducators.co.ke
21. Nyundo had the following assets and liabilities on 1st march 2006.
Capital 120,000
Machinery 80,000
Creditors 10,000
Debtors 20,000
Stock in trade 25,000
Cash at bank 5,000
On 2nd march he had the following transactions;
Purchased goods for 15,000 on credit.
Received a cheque of 10,000 from a debtor.
Sold machinery for 90,000 in cash.
Prepare his balance sheet on 2nd march, 2006. 4mks

22. Mention four purposes of preparing a trial balance. 4mks

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

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

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

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

Contact 0724333200/0795491185 for marking schemes or order online at

www.kenyaeducators.co.ke
23. Outline four factors that may cause the capital of an ongoing business to change. 4mks

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

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

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

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

24. Yogen had the following transactions with a creditor, Sulem, 2017
June 1 Balance from May 14,000
2 Bought stock from Sulem on credit Kshs. 80,000
4 Returned faulty goods to Sulem Kshs. 2,000
7 Paid Sulem the debt by cash less 2% discount.
Prepare Sulem’s account as it would appear in the books of Yogen. 4mks

Contact 0724333200/0795491185 for marking schemes or order online at

www.kenyaeducators.co.ke
25. In the two column cash book given below, enter the missing figures. 4mks

Waria Traders
Two Column Cash Book
For The Month ofJuly, 2008
Date Details Cash Bank Date Details Cash Bank
2018 May 1 Balance b/d M 2018 May 1 Balance b/d 8,200

9 Sales 40,000 7 Purchases 6,000

13 Debtors 10 Creditors 11,400
18 Bank ‘c’ N 18 Cash ‘c’ 9,200

20 equipment 19,200 31 Bal. c/d P Q

38,400 59,800 38,400 59,800

Contact 0724333200/0795491185 for marking schemes or order online at

www.kenyaeducators.co.ke
END OF YEAR EXAMS 2024
Paving Way For Kenya Certificate of Secondary Education Success

Name ………………………………………………………….. Admission no…………….

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

FORM 3

BUSINESS STUDIES

PAPER 2

TIME: 2Hours

Instructions to candidates.
● Write your name and admission number in the spaces provided.
● Answer all questions in the spaces provided.
● Answer any five questions
● Answers must be written in English.
● Avoid one word answers

Contact 0724333200/0795491185 for marking schemes or order online at

www.kenyaeducators.co.ke
1. a) Explain five features that differentiate a public company from a public corporation.
(10marks)
b) Jambo Tena enterprises had the following balances in the cash book on 1st November,
2018. Cash at hand shs. 10,000 and bank shs. 150,000
2. Bought buildings paying by cheque shs. 50,000
3. Drew shs. 4,000 from Bank for office use.
4. Took cash shs. 1,000 for his personal use
5. Credit sales to Jema traders shs. 5,000
6. Took all the cash to the bank leaving a balance of only shs. 100
Required: prepare duly balanced a two column cash book.
2. a) Explain five emerging issues in office management. (10marks)
b) Explain five circumstances under which a partnership may be dissolved (10mks )
3. a) Explain five circumstances under which a manufacturer would prefer to sell his
products direct to consumers instead of selling through middlemen. (10 marks)
b) Explain five factors to consider when choosing a method of promoting products.
(10 marks)
4. (a) In most secondary schools in Kenya, members of staff are accommodated in one
large room. Explain five disadvantages associated with this kind of arrangement.
(10mks)
(b)Explain Five benefits of warehousing to consumers (10 marks)
5. a)Explain five uses of National Income Statistics (10mks
b) i) Explain four insurance policies that the owner of a supermarket may find useful for
the business. 8mks

ii) A farmer’s house valued at Ksh. 1,200,000 was insured against fire for ksh. 900,000.
Fire occurred and damaged the house causing a loss of ksh. 500,000. Determine the
value of compensation due to the farmer. (2mks)

Contact 0724333200/0795491185 for marking schemes or order online at

www.kenyaeducators.co.ke
6. a) The accounts of Maneno Traders showed the following balances as at 31st December
20-2. Required: Balance off the accounts and extract a trial balance (10 Mks).
Land and Buildings Account
Dr Cr

Date Particulars Folio Amount Date Particulars Folio Amount

Shs. Shs.

2018 2018
Jan 1 Bal b/d 150,000

Motor Cars Account

Dr Cr

Date Particulars Folio Amount Date Particulars Folio Amount

Shs. Shs.

2018 2018
Jan 1 Bal b/d 142,000 Jan 6

Cash Account
Dr Cr

Date Particulars Folio Amount Date Particulars Folio Amount

Shs. Shs.

2018 2018
Jan 1 Bal b/d 30,000 Jan 1 Purchases 10,000
Jan 3 Sales 5,000 Jan 2 Creditors 2,500
Jan 6 Debtors 3,000

Contact 0724333200/0795491185 for marking schemes or order online at

www.kenyaeducators.co.ke
Creditors Account
Dr Cr

Date Particulars Folio Amount Date Particulars Folio Amount

Shs. Shs.

2018 2018
Jan 2 Cash 2,500 Jan 1 Bal b/d 4,000

Capital Account
Dr Cr

Date Particulars Folio Amount Date Particulars Folio Amount

Shs. Shs.

2018 2018
Jan 1 Bal b/d 311,000

Sales Account
Dr

Date Particulars Folio Amount Date Particulars Folio Amount

Shs. Shs.

2018 2018
Jan 3 cash 5000

Contact 0724333200/0795491185 for marking schemes or order online at

www.kenyaeducators.co.ke
b) Highlight five factors that may lead to rapid increase in population. (10mks)

Contact 0724333200/0795491185 for marking schemes or order online at

www.kenyaeducators.co.ke
BUSINESS STUDIES (565/1)
FORM THREE (3)
Time: 𝟐 𝑯𝒐𝒖𝒓𝒔

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

School: ……………………………………………………….. Class: …………………..
Signature: …………………………………………………….. Date: …………………...

ANSWER ALL QUESTIONS IN THIS PAPER

1. State the level of production that each of the following activities belong (4mks)
Activity Production level
(a) Harvesting sand -----------------------------------------------------------------------
(b) Marking exams -----------------------------------------------------------------------
(c) Welding work -----------------------------------------------------------------------
(d) Oil Retailing -----------------------------------------------------------------------

2. State four circumstances under which a firm may be located near a raw material source
(4mks)

a) _______________________________________________________________________________
b) _______________________________________________________________________________
c) _______________________________________________________________________________
d) _______________________________________________________________________________

[Contact 0724333200/0795491185/ 0768321553 for Marking Schemes or Order

online at www.kenyaeducators.co.ke]

1|P age
3. For each of the following transactions. State the account to be debited and the account to
be credited (4mks )

Transaction A/c to be debited A/c to be credited

(i) Cash deposited in business Bank account

(ii) Owner withdrew cash for personal use

(iii) Purchase of goods on credit

(iv) Purchase of furniture by cheque

4. Outline four drawbacks that accrue to a society that practice subsistence production (4mks)

5. Give four benefits that are likely to result from the new standard Gauge Railway line in
Kenya (4mks)

6. State four measures that a trader should take to ensure smooth functioning of his private
warehouse (4mks)

[Contact 0724333200/0795491185/ 0768321553 for Marking Schemes or Order

online at www.kenyaeducators.co.ke]

2|P age
7. Describe four channels that can be used to distribute coffee from Kenya to a consumer in
USA (4mks)

8. Highlight four barriers associated with written communication (4mks)

9. Give four reasons why a firm may not realize any benefits from free publicity (4mks)

10. Outline four disciplines incorporated in the business studies course (4mks)

11. List four types of partners in a partnership formed by professionals (4mks)

[Contact 0724333200/0795491185/ 0768321553 for Marking Schemes or Order

online at www.kenyaeducators.co.ke]

3|P age
a) _______________________________________________________________________________
b) _______________________________________________________________________________
c) _______________________________________________________________________________
d) _______________________________________________________________________________

12. Highlight four factors that may cause a shift in supply curve to the left (4mks)

[Contact 0724333200/0795491185/ 0768321553 for Marking Schemes or Order

online at www.kenyaeducators.co.ke]

4|P age
13. State four consequences of poor arrangement of goods in a warehouse (4mks)

14. Complete the following table by filling in the blank spaces (4mks)

PROFIT DRAWINGS INITIAL CAPITAL ENDING CAPITAL

5,000 200,000 250,000

40,000 350,000 380,000

50,000 15,000 400,000

60,000 10,000 500,000

15. Outline four circumstances under which a commodity may be distributed directly to the
consumers (4mks)

16. State four challenges that a country with a young population experience. (4mks)

[Contact 0724333200/0795491185/ 0768321553 for Marking Schemes or Order

online at www.kenyaeducators.co.ke]

5|P age
17. A car and a garage was insured for shs. 1,500,000 instead of shs. 2,000,000. Later the
property was destroyed and a loss of shs. 1,000,000 was suffered. Determine the amount of
claim, giving a reason for your answer. (4mks)

18. Classify the following staff as under: Senior, Junior, or Subordinate (4mks)

STAFF CATEGORY

a) Clerk __________________________

b) Accountant __________________________

c) Personal Secretary __________________________

d) Messenger __________________________

19. Outline four roles of Kenya Bureau of standards in Consumer protection (4mks)

20. Highlight four features of oligopoly market structures. (4mks)

[Contact 0724333200/0795491185/ 0768321553 for Marking Schemes or Order

online at www.kenyaeducators.co.ke]

6|P age
d) _______________________________________________________________________________

21. The following features relate to warehousing. Indicate the most suitable type of

warehousing described. (4mks)

i) Mostly situated entry points and are available at a fee..........................................................

ii) Warehouse designed to suit ones particular needs................................................................

iii) Used to store locally produced goods until excise duty is paid..............................................

iv) Warehouse used to store non dutiable goods originating from within or outside the Country
……………………………………………………………………………….............

22. State whether each of the following transactions will increase, decrease or have no effect on
the business capital. (4mks)

Transaction Effect on capital

i) Bought stock on credit ___________________________

ii) Owner withdrew some goods for personal use ___________________________

iii) Business made profit during the year ___________________________

iv) Paid wages by cheque ___________________________

23. State four factors that determine the size of a country’s national income. (4mks)

24. The information given below was extracted from books of accounts of Vijana Traders as at
30th June 2021.

Sh.

Land and building 450,000

[Contact 0724333200/0795491185/ 0768321553 for Marking Schemes or Order

online at www.kenyaeducators.co.ke]

7|P age
Motor vehicles 640,000
Debtors 30,000
Creditors 80,000
Bank over drafts 400,000
Net profit 104,000
Drawings 104,000

Using the information above, prepare Tenda Traders Balance Sheet as at 30th June 2021. (4 mks)

25. Outline four limitations of consumers association. (4mks)

[Contact 0724333200/0795491185/ 0768321553 for Marking Schemes or Order

online at www.kenyaeducators.co.ke]

8|P age
BUSINESS STUDIES (565/2)
FORM THREE (3)
𝟏
Time: 𝟐
𝟐

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

1. (a) Explain five advantages that may be associated with operating a tied shop.(10 Marks)
(b) Explain five challenges of a young population. (10 Marks)

2. (a) Explain five factors that may have led to the increasing use of boda boda as a means of passenger
transport in Kenya (10 Marks)
(b) With the aid of a diagram, explain the effects of an increase in supply to the equilibrium price and
quantity. (10marks)

3. (a) Explain five benefits of entrepreneurship to the Kenyan economy (10 Marks)

(b) On 1st March, 2021, Faulu Traders had sh. 18,000 in cash and a bank overdraft of sh. 6,700. During
the month, the following transactions took place:

[Contact 0724333200/0795491185/ 0768321553 for Marking Schemes or Order online at

www.kenyaeducators.co.ke]
March 2: Made cash sales sh. 14,500
3: Kimani, a debtor settled his account of sh. 45,000 by cheque less 5% cash
discount
4: Paid salaries sh. 5,000 by cash
6: Sold goods worth sh. 3,000 to Mumo on credit
8: Settled Rehema’s account of sh. 6,000 by cheque less 3% cash discount
12: Bought goods worth sh. 4,000 on credit from Otieno
18: Received a cheque of sh. 8,460 from Achieng after deducting 10% cash discount
22: Withdrew sh. 9,500 from the bank for office use
24: Cash sales paid direct into bank sh. 3,400
28: Withdrew sh. 2,500 from the bank for family use
31: Banked all the money except sh. 3,600
Required: Prepare a duly balanced three column cash book (10marks)

4. (a) Explain five reasons that may make an insurance company refuse to compensate the insured in the
event that a risk occurs. (10Marks)
(b) Explain five circumstances under which a manufacturer would sell his goods directly to a consumer.
(10 Marks)
5. (a) Explain five factors which constitute the external business environment which may negatively affect
the operations of a business (10 Marks)
(b) Explain five differences between a private limited company and a public corporation (10 Marks)

6. (a) Explain 5 advantages of written communication (10 Marks)

(b) The following balances were extracted from the books of Onyonka Traders on 1st January 2021.
Ksh
Capital 600,000
Creditors 180,000
Motor van 200,000
Furniture 200,000
Stock 60,000
Debtors 80,000

[Contact 0724333200/0795491185/ 0768321553 for Marking Schemes or Order online at

www.kenyaeducators.co.ke]
Cash 240,000
The following transactions took place during the year ended 31st December 2021:
Sold furniture worth Ksh 60,000 for which Ksh 20,000 cash was received and the balance was due at the
end of the year.
Brought 35,000 cash from private sources into the business
Purchased goods worth Ksh 200,000 for which cash of Ksh 40,000 was paid and the balance was still
outstanding at the end of the year.
Cash Ksh 10,000 was taken from the business by the proprietor to buy a present for the daughter
Required:
Outline the effect of each transaction on the items of the balance sheet (10 marks)

[Contact 0724333200/0795491185/ 0768321553 for Marking Schemes or Order online at

www.kenyaeducators.co.ke]
NYAMBARIA HIGH SCHOOL
END OF YEAR EXAMS 2024
Paving Way For Kenya Certificate of Secondary Education Success

Name ………………………………………………………….. Admission no…………….

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

FORM 3
BUSINESS
PAPER 1
TIME: 2Hours

INSTRUCTIONS
 Write your NAME, SCHOOL and INDEX NUMBER in the spaces provided.
 Answer ALL questions provided in the spaces provided.

Contact 0724333200/0795491185 for marking schemes or order online at

www.kenyaeducators.co.ke
1. State four importance of teaching Business Studies in secondary schools to the learner (4 marks)

i) ……………………………………………………………………………………………..

ii) ……………………………………………………………………………………………..

iii) ……………………………………………………………………………………………..

iv) ……………………………………………………………………………………………….

2. Name four types of business resources. ( 4 marks)

i) ……………………………………………………………………………………………..

ii) ……………………………………………………………………………………………..

iii) ……………………………………………………………………………………………..

iv) ……………………………………………………………………………………………….

3. Indicate the form of external environmental factor described by the statement below. ( 4 marks)

Description External environmental factor

Introduction of Mutotho law to curb excessive beer taking.

Religions sect that is against medicine

Construction of the superhighway.

Price wars between safaricom and Telkom mobile

companies.
4. State four benefits of indirect production to a country. (4 marks)

i) ……………………………………………………………………………………………..

ii) ……………………………………………………………………………………………..

iii) ……………………………………………………………………………………………..

iv) ……………………………………………………………………………………………….

Contact 0724333200/0795491185 for marking schemes or order online at

www.kenyaeducators.co.ke
5. Highlight four characteristics of economic resources. (4 marks)

i) ……………………………………………………………………………………………..

ii) ……………………………………………………………………………………………..

iii) ……………………………………………………………………………………………..

iv) ……………………………………………………………………………………………….

6. The following information was extracted from Maili Kumi traders for the year ended 31st
December 2020
Machinery 460,000
Cash in hand 80,000
Debtors 130,000
Creditors 60,000
Prepaid salaries 20,000
4 year loan 280,000
Accrued rent 30,000
Required: Prepare a balance sheet of Maili Kumi traders as at 31st December, 2020
………………………………………………………………………………………………………

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

Contact 0724333200/0795491185 for marking schemes or order online at

www.kenyaeducators.co.ke
7. Highlight four features that distinguish co-operative societies from other forms of business units

(4 marks)

i) ……………………………………………………………………………………………..

ii) ……………………………………………………………………………………………..

iii) ……………………………………………………………………………………………..

iv) ……………………………………………………………………………………………….

8. State four factors that may encourage entrepreneurial growth in Kenya (4 Marks)

i) ……………………………………………………………………………………………..

ii) ……………………………………………………………………………………………..

iii) ……………………………………………………………………………………………..

iv) ……………………………………………………………………………………………….

9. QQ Enterprises would like to partition its office. Outline four benefits the firm may get if it uses

the enclosed office plan. (4 marks)

i) ……………………………………………………………………………………………..

ii) ……………………………………………………………………………………………..

iii) ……………………………………………………………………………………………..

iv) ………………………………………………………………………………………………

10. Give four reasons why railway transport is not competitive in Kenya. (4 marks)

i) ……………………………………………………………………………………………..

ii) ……………………………………………………………………………………………..

iii) ……………………………………………………………………………………………..

iv) ………………………………………………………………………………………………

Contact 0724333200/0795491185 for marking schemes or order online at

www.kenyaeducators.co.ke
11. Funny Traders, had the following assets and liabilities as at 1st January, 2020
Furniture + equipment 350,000
Debtors 45,000
Cash 7,000
Creditor 48,000
For the year ended 31st December, 2015 there was:
(i) Additional capital introduced amounting to sh 34,000.
(ii) Drawings made during the year amounting to sh 20,000.
(iii) Net profit amounting to sh 34,000.
Determine the capital of the business as at 31st December, 2020. (4mks)
………………………………………………………………………………………………………

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

12. State four positive implications of a large population in a country (4marks)

i) ……………………………………………………………………………………………..

ii) ……………………………………………………………………………………………..

iii) ……………………………………………………………………………………………..

iv) ……………………………………………………………………………………………….

13. State four factors that may cause the supply curve to shift to the left. (4 Marks)

i) ……………………………………………………………………………………………..

ii) ……………………………………………………………………………………………..

iii) ……………………………………………………………………………………………..

iv) ……………………………………………………………………………………………….

Contact 0724333200/0795491185 for marking schemes or order online at

www.kenyaeducators.co.ke
14. Outline four circumstances under which an Insurance company may re- Insure. (4 marks)

i) ……………………………………………………………………………………………..

ii) ……………………………………………………………………………………………..

iii) ……………………………………………………………………………………………..

iv) ……………………………………………………………………………………………….

15. Using the following transactions, state the name of the account to be debited and the account to be
credited. ( 4 marks)
Transaction A/c debited A/c Credited

Made cash sales of sh 2,000

Purchased machine by cheque

Paid a creditor sh3,000 cash

Withdrew sh10,000 for business Use

16. Highlight four circumstances under which face to face oral communication may not be effective
(4 marks)
i) ……………………………………………………………………………………………..

ii) ……………………………………………………………………………………………..

iii) ……………………………………………………………………………………………..

iv) ……………………………………………………………………………………………….
17. State four measures that Kenya government may take to attract firms to an area. (4 marks)
i) ……………………………………………………………………………………………..

ii) ……………………………………………………………………………………………..

iii) ……………………………………………………………………………………………..

iv) ……………………………………………………………………………………………….

Contact 0724333200/0795491185 for marking schemes or order online at

www.kenyaeducators.co.ke
18. State four services that retailers render to consumers. (4 marks)

i) ……………………………………………………………………………………………..

ii) ……………………………………………………………………………………………..

iii) ……………………………………………………………………………………………..

iv) ……………………………………………………………………………………………….

19. Outline four requirements meant to enable a warehouse operate efficiently. (4 Marks)

i) ……………………………………………………………………………………………..

ii) ……………………………………………………………………………………………..

iii) ……………………………………………………………………………………………..

iv) ……………………………………………………………………………………………….

20. Outline four measures the Kenyan government may take to solve unemployment in the country

(4 Marks)

i) ……………………………………………………………………………………………..

ii) ……………………………………………………………………………………………..

iii) ……………………………………………………………………………………………..

iv) ……………………………………………………………………………………………….

21. State circumstances that may lead to the creation of an oligopoly. (4 Marks)

i) ……………………………………………………………………………………………..

ii) ……………………………………………………………………………………………..

iii) ……………………………………………………………………………………………..

iv) ……………………………………………………………………………………………….

Contact 0724333200/0795491185 for marking schemes or order online at

www.kenyaeducators.co.ke
22. State four leakages in a four sector economy (4 Marks)

i) ……………………………………………………………………………………………..

ii) ……………………………………………………………………………………………..

iii) ……………………………………………………………………………………………..

iv) ……………………………………………………………………………………………….

23. Identify the legislation meant to protect consumers that each of the following description refers to.

(4mks)

(a) Ensures that traders or producers do not cheat consumers by giving false descriptions of

goods. …………………………….……

(b) Prohibits traders and manufacturers from including substance that might harm consumers in a

product. ………………………….………

(d) Ensures that the landlord‘s do not overcharge their tenants. ………………………….………

24. Describe four channels of distribution that may be used for distributing imported goods (4Marks)

i) ……………………………………………………………………………………………..

ii) ……………………………………………………………………………………………..

iii) ……………………………………………………………………………………………..

iv) ……………………………………………………………………………………………….

25. Identify four types of advertising (4 marks)

i) ……………………………………………………………………………………………..

ii) ……………………………………………………………………………………………..

iii) ……………………………………………………………………………………………..

iv) ……………………………………………………………………………………………….

Contact 0724333200/0795491185 for marking schemes or order online at

www.kenyaeducators.co.ke
NYAMBARIA HIGH SCHOOL
END OF YEAR EXAMS 2024
Paving Way For Kenya Certificate of Secondary Education Success

Name ………………………………………………………….. Admission no…………….

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

FORM 3

BUSINESS

PAPER 2

TIME: 2Hours

Instructions to candidates;
a) Write your name and admission number in the spaces provided above.
b) Sign and write the date of examination in the spaces provided above
c) This paper consists of six questions.
d) Answer any five questions in the spaces provided after question six.
e) All questions carry equal marks

Contact 0724333200/0795491185 for marking schemes or order online at

www.kenyaeducators.co.ke
1. a) Explain five principles that is used by Britam Insurance company that is responsible for
their success and efficiency in operations. (10 marks)
(b) Explain five features of a good filing system. (10 marks)

2. (a) Describe five documents required to register a public limited company. (10 marks)

(b) Explain five benefits that could accrue to a customer who buys goods from a departmental
store. (10mks)

3. a) Businesses are currently employing new product promotional strategies as a way

of boosting their sales volumes. Identify and explain four such strategies.
(8marks)
(b) The following information relates to the business of Kazuri Enterprises for the week ended 29th
March 2016.
March 24thStarted business with Kshs 24,000 in the bank.
March 25thBought goods worth Kshs 18,000 by cheque.
March 26thSold goods for cash Kshs 10,000
March 28thSold goods on credit to Mrembo worth Kshs 5,625
March 29thBought Furniture from Seremala Ventures worth Kshs 20,000 paying
Kshs 5,000 by cash and the rest to be paid later.
Required Prepared ledger accounts and balance them off. (12 marks)

4. a) Explain five documents sent by the buyer to the seller in Home trade. (10marks)

b) Using a diagram illustrate the effects of a positive shift of a demand curve on the
equilibrium point, price and quantity (10mks)

Contact 0724333200/0795491185 for marking schemes or order online at

www.kenyaeducators.co.ke
5. a) Describe four channels followed in exporting agricultural product.
(8 mks)

b) On 1st March 2020, Swara Limited had cash in hand shs. 7,800 and a bank overdraft of 23,400.
During the month of the following transaction took place.
March 3: Cash sales sh. 6500 paid directly into the bank.
March 4: Bought goods for sh. 15,000 by cheque.
March 6: cash sales sh. 50,000
March 9: Received a cheque for sh. 18,000 from Amolo in full settlement of his account of sh.
20,000.
March 13: Paid insurance premiums sh. 16,000 in cash.
March 14: Paid Kimotho by cheque sh. 9,700 in full settlement of his debt of sh. 10,000.
March 17: Cash sales sh. 150,000 paid directly into the bank.
March 21: Withdrew shs. 30,000 from bank for office use.
March 23: Received a cheque of sh. 23,750 from Rotich after having deducted 5% cash discount.
March 25: Paid wages shs. 20,000 in cash.
March 30: Banked all cash except sh. 3,000.

Required: Prepare a three column cashbook duly balanced. (12marks)

6. a) Highlight five circumstances under which a consumer may need government

protection. (10 marks)

b) Highlight five factors which an entrepreneur should consider when evaluating a viable
business opportunity (10 marks)

Contact 0724333200/0795491185 for marking schemes or order online at

www.kenyaeducators.co.ke

Bus Kcse 2025 Regional Mocks
No ratings yet
Bus Kcse 2025 Regional Mocks
119 pages
Bus PP1 Kcse 2025 Top Prediction Cycles
No ratings yet
Bus PP1 Kcse 2025 Top Prediction Cycles
93 pages
Busspp1ms Maranda
No ratings yet
Busspp1ms Maranda
13 pages
Bus Kcse 2025 National Schools Mocks
No ratings yet
Bus Kcse 2025 National Schools Mocks
93 pages
Bust Pp1 Top Schools 2025 Trial1
No ratings yet
Bust Pp1 Top Schools 2025 Trial1
65 pages
HBA Interest Calculation
82% (33)
HBA Interest Calculation
3 pages
Business Studies Form 4 Exam
No ratings yet
Business Studies Form 4 Exam
7 pages
Business Studies Paper 1
No ratings yet
Business Studies Paper 1
12 pages
Kcse 2024 Business Final Prediction
No ratings yet
Kcse 2024 Business Final Prediction
80 pages
Business Studies f3 Pp1 Ms-2
No ratings yet
Business Studies f3 Pp1 Ms-2
5 pages
F4 Business P1 Ms
No ratings yet
F4 Business P1 Ms
5 pages
Trial PP1 Exam 4
No ratings yet
Trial PP1 Exam 4
9 pages
Bus Kcse 2025 Regional Premocks
No ratings yet
Bus Kcse 2025 Regional Premocks
125 pages
Financial Accounting
No ratings yet
Financial Accounting
90 pages
f2 Bus Et3 National Schools Trials
No ratings yet
f2 Bus Et3 National Schools Trials
58 pages
Micobussa, P1, F3, T2,2023
No ratings yet
Micobussa, P1, F3, T2,2023
8 pages
Form-4 Term One 2025 Opener Exams
No ratings yet
Form-4 Term One 2025 Opener Exams
183 pages
Business Mocks S1 QS
No ratings yet
Business Mocks S1 QS
65 pages
Business PP1-2 Kcse Prediction 2024
No ratings yet
Business PP1-2 Kcse Prediction 2024
11 pages
Series 4 BSST pp1-2 Combined
No ratings yet
Series 4 BSST pp1-2 Combined
16 pages
Business Studies
No ratings yet
Business Studies
285 pages
BST PP1
No ratings yet
BST PP1
10 pages
Bankinng Quiz
No ratings yet
Bankinng Quiz
14 pages
Busines Studies f3 QP Model 04012021512
No ratings yet
Busines Studies f3 QP Model 04012021512
10 pages
Chapter 2b Bank Reconciliation
No ratings yet
Chapter 2b Bank Reconciliation
17 pages
Business Studies Paper 1 Questions Form 3 Term 3 Exam 2017
No ratings yet
Business Studies Paper 1 Questions Form 3 Term 3 Exam 2017
6 pages
The Analysis of The Impact of Accounting Records Keeping On The Performance of The Small Scale Enterprises
No ratings yet
The Analysis of The Impact of Accounting Records Keeping On The Performance of The Small Scale Enterprises
17 pages
BST F3 QS
No ratings yet
BST F3 QS
8 pages
BST Pp1 s1 Kef 10-Qp
No ratings yet
BST Pp1 s1 Kef 10-Qp
44 pages
Managerial Economics (Chapter 1)
88% (17)
Managerial Economics (Chapter 1)
61 pages
F4 Bus Term 2 Opener Exam
No ratings yet
F4 Bus Term 2 Opener Exam
17 pages
Business 2025 Top Schools Mocks
No ratings yet
Business 2025 Top Schools Mocks
80 pages
2023 Business Studies F3 QS T2 Exam Teacher - Co - .Ke
No ratings yet
2023 Business Studies F3 QS T2 Exam Teacher - Co - .Ke
11 pages
Business Form One ExamQ
No ratings yet
Business Form One ExamQ
6 pages
Business Studies 2023 Top School's Mocks
No ratings yet
Business Studies 2023 Top School's Mocks
80 pages
Business Studies Paper 1 Ms
No ratings yet
Business Studies Paper 1 Ms
4 pages
Business Pp1 Form 3 - Question Paper
No ratings yet
Business Pp1 Form 3 - Question Paper
7 pages
Business Studies Paper 1
No ratings yet
Business Studies Paper 1
12 pages
Business Studies Form 1
No ratings yet
Business Studies Form 1
9 pages
Kcse BST Replica 2022
No ratings yet
Kcse BST Replica 2022
52 pages
Business F3 Exam Term 1 Qs - Teacher - Co - .Ke
No ratings yet
Business F3 Exam Term 1 Qs - Teacher - Co - .Ke
6 pages
Paper 1 MS
No ratings yet
Paper 1 MS
6 pages
Business Studies Paper 1 Qns
No ratings yet
Business Studies Paper 1 Qns
10 pages
Likoni Mixed High School: 565/1 Business Paper 1 Form Four End Term One 2024 Time: 2 Hours
No ratings yet
Likoni Mixed High School: 565/1 Business Paper 1 Form Four End Term One 2024 Time: 2 Hours
10 pages
F4 BST PP1 QS
No ratings yet
F4 BST PP1 QS
8 pages
DD B Studies Form 1, Et 3,2023
No ratings yet
DD B Studies Form 1, Et 3,2023
7 pages
Bust Top Schools Trial Exams
No ratings yet
Bust Top Schools Trial Exams
54 pages
Trial PP1 Exam 3
No ratings yet
Trial PP1 Exam 3
9 pages
2021 Kassu Business Studies P1 Questions
No ratings yet
2021 Kassu Business Studies P1 Questions
10 pages
Bs Paper 1qns
No ratings yet
Bs Paper 1qns
9 pages
Hsbusiness Studies Paper 1 Questions and Answers - Form 3 End Term 3 Exams 2023-8185
No ratings yet
Hsbusiness Studies Paper 1 Questions and Answers - Form 3 End Term 3 Exams 2023-8185
6 pages
Business F3
No ratings yet
Business F3
5 pages
Business Studies - Business - Question Paper
No ratings yet
Business Studies - Business - Question Paper
11 pages
Bs 1
No ratings yet
Bs 1
7 pages
Business P1 Q
No ratings yet
Business P1 Q
9 pages
Bus PP1 F4
No ratings yet
Bus PP1 F4
7 pages
Q-PDF-Form 3 Business Studies Paper 1 Mock Exams 2019
No ratings yet
Q-PDF-Form 3 Business Studies Paper 1 Mock Exams 2019
6 pages
VC Funds For Early Stage List
100% (1)
VC Funds For Early Stage List
50 pages
Public Corporation Private Limited Company: Costs To Manufacturers
No ratings yet
Public Corporation Private Limited Company: Costs To Manufacturers
10 pages
BS PP1 QN F3 2021 Term 3
No ratings yet
BS PP1 QN F3 2021 Term 3
8 pages
B.sties PP1
No ratings yet
B.sties PP1
9 pages
Business f3
No ratings yet
Business f3
4 pages
Itemized Invoice 531000271149
No ratings yet
Itemized Invoice 531000271149
4 pages
565-1 Business Studies Paper 1 Questions
No ratings yet
565-1 Business Studies Paper 1 Questions
7 pages
Bus p1
No ratings yet
Bus p1
8 pages
NOC Format
No ratings yet
NOC Format
2 pages
A Government of West Bengal Enterprise
No ratings yet
A Government of West Bengal Enterprise
1 page
Fundamentals of Accounting Notes Types of Businesses and Uses
No ratings yet
Fundamentals of Accounting Notes Types of Businesses and Uses
4 pages
Financial Management II
No ratings yet
Financial Management II
64 pages
Gcu Lauren
No ratings yet
Gcu Lauren
3 pages
Free Credit Score and Report - Free Monthly Credit Check
No ratings yet
Free Credit Score and Report - Free Monthly Credit Check
3 pages
Introduction of Standard Chartered Bank History
No ratings yet
Introduction of Standard Chartered Bank History
12 pages
16 Fema
No ratings yet
16 Fema
25 pages
Ladder Series MCQ - Ramesh Devarakonda (26) 20191231230312 PDF
No ratings yet
Ladder Series MCQ - Ramesh Devarakonda (26) 20191231230312 PDF
101 pages
A Study On Investor S Perception Towards Online Trading (Srinivalula Reddy)
No ratings yet
A Study On Investor S Perception Towards Online Trading (Srinivalula Reddy)
30 pages
Investment Analysis and Portfolio Management: Lecture Presentation Software
No ratings yet
Investment Analysis and Portfolio Management: Lecture Presentation Software
78 pages
Accounting Policies, Changes in Accounting Estimates - Ipsas 3
No ratings yet
Accounting Policies, Changes in Accounting Estimates - Ipsas 3
6 pages
Remittance Performance of Al Arafah Islami Bank Limited and Bank Asia Limited
No ratings yet
Remittance Performance of Al Arafah Islami Bank Limited and Bank Asia Limited
14 pages
Service Charges On Retail & MSME
No ratings yet
Service Charges On Retail & MSME
6 pages
Assign 6 Chapter 8 Operating and Financial Leverage Cabrera 2019-2020
100% (1)
Assign 6 Chapter 8 Operating and Financial Leverage Cabrera 2019-2020
12 pages
IFS - Module 1 - Part 1
No ratings yet
IFS - Module 1 - Part 1
18 pages
Bba Project On HDFC Bank
No ratings yet
Bba Project On HDFC Bank
25 pages
Solution Chapter 8 PDF
No ratings yet
Solution Chapter 8 PDF
15 pages
XXGP PF Statement 051119
No ratings yet
XXGP PF Statement 051119
1 page
Types of Taxes
No ratings yet
Types of Taxes
3 pages
AU FM12 Midterm
No ratings yet
AU FM12 Midterm
5 pages
Asset Manager Job Description
No ratings yet
Asset Manager Job Description
2 pages
The Future of Learning: Revolutionizing Education Through Generative AI: AI Books, #11
From Everand
The Future of Learning: Revolutionizing Education Through Generative AI: AI Books, #11
Mohammad
No ratings yet
6th Semester Syllabus: Accounting & Finance Group
No ratings yet
6th Semester Syllabus: Accounting & Finance Group
6 pages
Web Video Business
From Everand
Web Video Business
MUHAMMAD NUR WAHID ANUAR
No ratings yet

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.