2026 Form 4 Business Studies Mid Term 2 Exam with Marking Scheme

This paper  covers the following topics:

• Warehousing — improving efficiency
• Direct vs. indirect production
• Characteristics of a good tax system
• Importance of entrepreneurship to the economy
• Financial accounting — balance sheet preparation, borrowed capital, current ratio, capital owned
• Personal selling as a promotional method
• Factors influencing national income
• Principles of insurance
• Government consumer protection methods
• Trade documents used by the buyer in home trade
• Government measures to reduce unemployment in Kenya
• Ledger accounts, trial balance preparation

• Total Marks: 100 Marks
• Number of Questions: 6 questions; answer any 5
• Structure: Each question is divided into two parts (a and b), each carrying 10 marks