RSS

BS Rev P2-003 MS


SEO software by Web CEO

2010 KCSE Business Studies Revision P2-003 marking scheme

565/2

BUSINESS STUDIES PAPER 2

MARKING SCHEME

1.  (a) Problems likely to be experienced if intermediaries are eliminated from                           the chain of distribution.

  1. Manufactures will be forced to setup their own outlets which are an                      additional cost to them. Increased cost of distribution/transportation                    results in high prices for goods.
  2. Manufacturers would be forced to break the bulk.
  3. Producers would market/advertise their products which is an                       additional cost.
  4. Producers will have their own storage facilities which are an additional                  cost.
  5. Prices may fluctuate due to unsteady flow of goods.
  6. Reduces specialization in production due to additional function.
  7. The producer bears all the risk alone.

[Mention 1mk explanation 1 mk = @ 2 marks]

(b)  Roles of commercial attachee

  1. To seek markets for new products
  2. Evaluate performance of their countries in foreign markets.
  3. Research on how to improve home products.
  4. Advice manufacturers on changes to make on their products.
  5. Facilitates trade transaction between manufactures/traders and agents in foreign markets.
  6. Organises trade fairs/exhibitions.
  7. Prepare reports for the government on performance of the country’s products.

2.  (a)  Reasons as to why oligopoly markets arise.

  1. Barriers to entry of other firms due to huge initial capital outlay.
  2. Where few firms control source of raw material for a particular commodity.
  3. Where a few firms hold potent right relating to technology of production.
  4. Aggression by some firms with measures that force other firms out          of       the industry.
  5. Where few firms enjoy large economies of scale hence producing at         very low cost.
  6. Where collusion among few firms restrict entry of others in the industry.
  7. Shortage of entrepreneurs to set up firms to compete with already           existing firms.
  8. Where there is government protection for already existing firms.

BS Revision P2-003 MS

3.  (a) Problems associated with the output approach.

  1. Inaccuracy of output figures especially in the private sector
  2. Problem of deciding on the goods and services to include e.g. housewife’s output.
  3. Problem of valuing output in the subsistence sector.
  4. Problem of valuing government output since many of its services are not sold in the market.
  5. The problem of price fluctuation.
  6. Problem of differentiating primary inputs from intermediate inputs.
  7. Problem of valuing illegal activities.

Mention 1 mark otherwise 2 marks

3.  (b)                  MR. ALI

THREE COLUMN CASHBOOK

Date Details Discount allowed Cash Bank Date Details Discount received Cash Bank
2009 

June 1

June 4

4

25

26

29

 

Bal. b/d

Jane

Willison

Sales

Cash

Wanyonyi

Shs 

20

40

 

Shs 

10000

2000

3000

Shs 

25000

980

1960

1000

2009 

June 2

3

8

8

13

20

26

30

 

Purchases

Rent

Wangari

Mati

Computer

Drawings

Bank

Bal c/d

Shs 

150

60

Shs 

 

1000

6000

1000

1000

6000

Shs 

2850

1140

10000

14950

60 15000 28940 210 15000 28940

20 x ½ = [10 marks]

4.  (a) Factors determining the size of a firm.

  1. Number of employees
  2. Volume of output
  3. Floor area covered by premises/size of land occupied.
  4. Capital invested.
  5. Production methods/techniques/technology.
  6. Market served/size of market
  7. Sales volume/profit earned.

[mention 1 mark otherwise 2 mks]

4.  (b)

BS Revision P2-003 MS4b

5.  (a) Changes in economic development.

1. Shift from agricultural to manufacturing sector.

2. Reduction in illiteracy.

3. Increase in skilled man power.

4. Improvement in health facilities

5. Increase in technology.

6. Improvement in entrepreneurial ability

7. Good housing facilities

8. Improved infrastructure

(Award 2 marks each for 5 explained points)

(b) Factors that may lead to a deficit in balance of payment.

  1. Unfavorable terms of trade
  2. Increased demand for imports
  3. Reduced demand for the country’s export
  4. Repayment of foreign loans
  5. Devaluation of currencies of trading partners.
  6. Reduced capital inflow
  7. Restriction by trading system.

[Mention any five x 1 mk explain x 1 mk @ 2 mks x 5 = 10 mks]

6.  (a) Factors that have hindered the creation of 500,000 jobs in Kenya.

  1. Lack of political will
  2. Shortage of economic resources
  3. Political instability/wrangles etc
  4. Poor government planning/priorities
  5. In adequate co-operant factors (inputs)
  6. Corruption
  7. Natural disasters

[Mention x1mk explain x 1mk @ 2mks x 5 = 10 mks]

(b)  Importance of filling documents in an organization.

  1. Easy retrieval of documents
  2. Keeps office very tidy
  3. Safety of documents
  4. Documents are kept neat
  5. Documents are kept away from unauthorized persons
  6. Space is well utilized.
  7. Information for future reference is kept.
  8. Filed documents are used as evidence in case of disputes.

[Mention x 1mk explaining x1mk @ 2mks x 5 = 10 mks]

 


 

 

 

Comments are closed.

 
%d bloggers like this: