Form 4 Business Studies paper 2 questions and answers

Questions/Lessons List

1. Describe five circumstances under which an insurance company may not compensate the insured in the event of loss ( free lesson)

2. Addullah , a manufacturer, exhibited his goods in a local trade show, but his sales did not increase significantly thereafter. Outline five reasons that may have led to lack of significant sales increase ( free lesson)

3. Explain five merits that accrue to a customer who prefers to shop from a supermarket rather than from a chain store ( free lesson)

4. Explain five factors that are used as criteria for determining the size of a firm. ( free lesson)

5. Discuss five circumstances under which monopolies are created ( free lesson)

6. Higher national income may not necessarily mean better welfare for citizens of a country.Discuss ( free lesson)

7. Explain five types of unemployment experienced in Kenya ( free lesson)

8. Explain five measures that can be taken by central bank to control hyperinflation ( free lesson)

9. Explain five principles of government expenditure ( free lesson)

10. Hightlight five functions of the international monetary fund ( free lesson)

11. Explain four circumstances that would influence a business firm to use courier services in distributing products. ( free lesson)

12. Explain five causes of unemployment in Kenya ( free lesson)

13. Explain five benefits that could be enjoyed by a person who decides to take out an endowment policy ( free lesson)

14. Explain five challenges that may be experienced by a new entrepreneur who is intending to establish a business in Kenya. ( free lesson)

15. Discuss five factors that may encourage the use of pipeline as a means of transporting petroleum products in a country ( free lesson)

16. Below shows the trends in inflation rates in a country 2013 12% 2014 18% 2015 24% Explain five causes that would triggered the increasing inflation trends in the country ( free lesson)

17. Highlight five reasons why the government of Kenya is encouraging the location of industries in all parts of the country ( free lesson)

18. Explain five differences between direct tax and indirect tax ( free lesson)

19. Explain the meaning and significance of the following terms used in international trade. a)Depreciation of the currency of a country b)Deterioration of terms of trade of a country c)Balance of payment on current account d)Bill of lading ( free lesson)

20. Explain four problems encountered when measuring national income using output approach ( free lesson)

21. Explain five circumstances under which the government may find it necessary to privatize some state coporations. ( free lesson)

22. Explain five reasons why there is need for a healthy business environment ( free lesson)

23. Explain five factors that may influence a firm’s decision on what products to produce ( free lesson)

24. Kenya is towards implementation of vision 2030. Explain five challenges that may be faced towards realization of the dream ( free lesson)

25. Discuss five factors that may influence the choice of distribution channel. ( free lesson)

26. Explain five shortcomings of internet services ( free lesson)

27. Explain five principles of taxation. ( free lesson)

28. Explain five emerging issues in insurance industry. ( free lesson)

29. The following information relates to kipture traders for the year 2016 Turn over sh 270,000 Margin 40% Rate of turnover 6 times Expenses sh 40,000 From the information above, calculate; i)Gross profit ii) cost of goods sold iii)Net profit iv)Average stock ( free lesson)

30. Explain five tools that the central bank may use to control credit ( free lesson)

31. Highlight five features of a monopolistic market structure ( free lesson)

32. Explain five services offered by wholesalers to retailers ( free lesson)

33. Explain four uses of national income statistics ( free lesson)

34. Explain any five principles of insurance ( free lesson)

35. Outline five differences between commercial banks and non-financial institutions ( free lesson)

36. Describe five measures being put in place by the Kenya government to solve the unemployment problems ( free lesson)

37. Explain five arguments againist protectionism in international trade ( free lesson)

38. Discuss five reasons why the Kenyan government encourages the development micro-business enterprises ( free lesson)

39. Outline five circumstances under which an organization would prefer to use letters for its official communication. ( free lesson)

40. Explain five sources of monopoly power ( free lesson)

41. Highlight four reasons that may account for the continued use of handcarts as a mode of transport in Kenya. ( free lesson)

42. Inspite of the benefits that accrue from privatizing public coporations, the government of Kenya has not fully done it and is still retaining some of its corporations. Explain five reasons the justify that retention. ( free lesson)

43. Describe five services offered by the commercial banks to theie clients ( free lesson)

44. Discuss five ways in which the insurance industry enhances the growth of business enterprises in the country. ( free lesson)

45. Explain five characteristics of under development as witnessed in under developed countries. ( free lesson)

46. Explain five methods that can be used by a country to solve the problem of deficit balance of payment. ( free lesson)

47. XYZ limited intends to commit some of its funds in conducting market research. Outline four benefits it is likely to get from such venture. ( free lesson)

48. One of the major objectives of the Kenyan government is to solve unemployment. Problem in the country.Explain five possible ways it can use to achieve this ( free lesson)

49. Explain five factors an entrepreneur should consider when evaluating a business opportunity. ( free lesson)

50. Explain five circumstances under which firms may acquire oligopoly power ( free lesson)

51. Explain five ways in which external business environment may negatively affect business operations. ( free lesson)

52. Explain five differences between a parastatal and a co-operative society ( free lesson)

53. Outline five features that characterizes a perfectly competitive product market and explain the significance of each feature. ( free lesson)

54. Fatuma holdings participated in Abu Dhabi international trade fair eight months ago. Over the last five months she realized that her sales volume have increased by 120%. Explain five reasons behind this trend ( free lesson)

55. Country Z’s population has been growing at 4% per annum while her economy has growing at less than 3% per annum. Explain five economic consequences ot the above trend to country Z. ( free lesson)

56. Explain five reasons why mobile banking services are becoming increasingly popular in Kenya. ( free lesson)

57. Explain five merits of globalization to the Kenyan economy. ( free lesson)

58. Explain five reasons why indirect taxes are preferred to direct taxes as a source of revenue in developing countries. ( free lesson)

59. The government has been encouraging the use of local appropriate technology in the country.Outline five ways this policy may help to reduce unemployment problem in Kenya. ( free lesson)