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Form 4 Business Studies paper 2 questions and answers

Highlight five reasons why the government of Kenya is encouraging the location of industries in all parts of the country

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Explanation/Answer Text:

-To speed up balanced regional development in the country as industries will attract developments
-To create employment opportunities in all parts of the country. where industries are established, people get employed.
-To encourage development of infrastractures such as roads, railways etc
-To attract auxiliary services/ service industry e.g banking,post offices, insurance etc
-To provide market for locally available resources hence source of income to the people
-To enhance exploitation of idle resources throughout the country that would otherwise be wasted

Questions/Lessons List

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

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 ()

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

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

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

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

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

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

9. Explain five principles of government expenditure ()

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

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

12. Explain five causes of unemployment in Kenya ()

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

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

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

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 ()

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

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

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 ()

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

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

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

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

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

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

26. Explain five shortcomings of internet services ()

27. Explain five principles of taxation. ()

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

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 ()

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

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

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

33. Explain four uses of national income statistics ()

34. Explain any five principles of insurance ()

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

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

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

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

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

40. Explain five sources of monopoly power ()

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

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. ()

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

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

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

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

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. ()

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 ()

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

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

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

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

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

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 ()

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. ()

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

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

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

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. ()

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