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SCHEME OF WORK
Business Studies
Form 4 2026
TERM II
School


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WK LSN TOPIC SUB-TOPIC OBJECTIVES T/L ACTIVITIES T/L AIDS REFERENCE REMARKS
2 1
FINANCIAL STATEMENTS
Trading Account Preparation Using Ratios
By the end of the lesson, the learner should be able to:
Use mark-up to prepare trading accounts; Apply margin in account preparation; Handle incomplete records; Solve complex scenarios
Practical preparation using mark-up and margin; Incomplete records scenarios; Advanced problem-solving; Individual and group exercises
Trading account formats, incomplete record examples, complex scenarios
KLB Secondary Business Studies Form 4, Pages 72-74
2 2
FINANCIAL STATEMENTS
Current Ratio and Working Capital Ratio
Rate of Stock Turnover
By the end of the lesson, the learner should be able to:
Define current ratio; Calculate working capital ratio; Interpret ratio results; Understand liquidity implications
Introduction to liquidity ratios; Practical calculations using Busia Traders; Interpretation of results; Discussion on business implications
Ratio calculation sheets, Busia Traders example, interpretation guides
Stock turnover worksheets, Upendo Traders example, practical applications
KLB Secondary Business Studies Form 4, Pages 75-76
2 3
FINANCIAL STATEMENTS
Stock Turnover Applications
Return on Capital
By the end of the lesson, the learner should be able to:
Use stock turnover in trading accounts; Handle incomplete records scenarios; Apply Maendeleo Traders example; Solve complex problems
Advanced applications using Maendeleo Traders; Incomplete records problem-solving; Complex scenario analysis; Individual practice
Advanced application sheets, Maendeleo Traders example, complex scenarios
Return calculation sheets, Mr Odiek's example, comparison materials
KLB Secondary Business Studies Form 4, Pages 76-78
3 1
FINANCIAL STATEMENTS
Acid Test and Quick Ratio
Importance of Financial Ratios
By the end of the lesson, the learner should be able to:
Define acid test ratio; Calculate quick ratio; Distinguish from current ratio; Interpret liquidity position
Explanation of acid test concept; Calculations using Nakura Stores; Comparison with current ratio; Liquidity analysis
Quick ratio worksheets, Nakura Stores example, liquidity analysis materials
Stakeholder analysis sheets, case study materials, presentation guidelines
KLB Secondary Business Studies Form 4, Pages 79-80
3 2
MONEY & BANKING
Introduction, Barter Trade and its Limitations
Money System and Characteristics of Money
Functions of Money
Demand for Money and Supply of Money
By the end of the lesson, the learner should be able to:
Define money and banking. Explain barter trade concept. Outline merits and limitations of barter trade. Explain double coincidence of wants problem.
Brainstorming on money concepts. Role-play of barter trade scenarios. Group discussions on barter trade problems. Case study analysis of failed exchanges. Problem-solving on exchange challenges.
Real exchange items, Problem scenario cards, Case study materials, Charts
Different currencies, Genuine and sample notes, Magnifying glass, Regional currency samples
Goods for trading, Price tags, Recording sheets, Savings scenarios, Property document samples
Budget sheets, Emergency scenarios, Investment charts, Money supply statistics, Central Bank reports
KLB Secondary Business Form 4, Pages 91-93
3 3
MONEY & BANKING
Banking System and Development of Banking
Commercial Banks and Their Services
Commercial Bank Services and Foreign Exchange
Types of Bank Accounts - Current and Savings
By the end of the lesson, the learner should be able to:
Identify elements of Kenya's banking system. Explain hierarchy of banks. Trace history of banking development from goldsmith banking to modern banking. Understand banking evolution.
Mapping exercise of Kenya's banking system. Historical timeline creation of banking development. Story-telling of goldsmith banking origins. Group research on banking categories. Banking evolution discussions.
Banking system charts, Historical timeline materials, Bank category lists, Banking evolution charts
Mock bank materials, Deposit slips, Transfer forms, Safety boxes, Play money, Standing order cards
Exchange rate charts, Advisory scenario cards, Trustee examples, Guarantor forms, Intermediary flow charts
Account opening forms, Cheque books, ATM cards, Interest calculation sheets, Comparison charts
KLB Secondary Business Form 4, Pages 99-101
4 1
MONEY & BANKING
Fixed Deposit Accounts and Account Opening Requirements
Non-Banking Financial Institutions (NBFIs)
By the end of the lesson, the learner should be able to:
Define fixed deposit accounts and their features. Calculate returns on fixed deposits. Identify requirements for opening all types of accounts. Practice account opening procedures.
Fixed deposit investment scenarios. Return calculation exercises. Mock account opening procedures. Document verification exercises. Form filling practice. Certificate examination.
Investment scenarios, Calculation sheets, Account forms, ID documents, Photographs, Certificate samples
NBFI information sheets, SACCO materials, Insurance policies, Housing finance examples, Case study materials
KLB Secondary Business Form 4, Pages 109-111
4 2
MONEY & BANKING
Micro-Finance, Agricultural Finance and Differences with Commercial Banks
Central Bank Functions
Monetary Policy Tools
By the end of the lesson, the learner should be able to:
Explain micro-finance and agricultural finance operations. Compare NBFIs with commercial banks in terms of services, target markets, and operations. Analyze their complementary roles.
Micro-finance loan simulation. Agricultural project financing exercises. Comparison table creation. Case study analysis of differences. Group discussions on operational contrasts.
Loan application forms, Agricultural projects, Comparison charts, Case studies, Analysis sheets
Central Bank charts, Currency samples, Inter-bank forms, Government forms, Supervision checklists, Clearing examples
Policy charts, Interest rate examples, Securities samples, Calculation sheets, Control scenarios, Comparison tables
KLB Secondary Business Form 4, Pages 111-113
4 3
MONEY & BANKING
Modern Banking Trends
By the end of the lesson, the learner should be able to:
Analyze evolution in account types and their features. Explain computer use in banking and its benefits. Detail ATM operations and their impact on banking. Assess technological improvements in banking.
Modern banking technology demonstration. ATM operation simulation. Computer banking examples. Account feature comparison. Technology impact discussions.
ATM cards, Computer demonstrations, Modern banking examples, Technology comparison charts
Mobile phones, E-banking platforms, Digital payment examples, Credit forms, Service scenarios, Mobile bank materials
KLB Secondary Business Form 4, Pages 117-119
5 1
PUBLIC FINANCE
Introduction to Public Finance and its Purpose
Purpose of Public Finance - Provision of Essential Services
Purpose of Public Finance - Economic Control and Development
Sources of Public Finance - Overview and Classification
By the end of the lesson, the learner should be able to:
Define public finance. Explain the concept of public finance. Outline the main purposes of public finance. Analyze the role of government in providing essential services.
Q/A on government services students use daily; Group discussion on why government needs money; Brainstorming on public goods vs private goods; List making of local government projects students have seen.
Chalkboard, textbook, exercise books, pens, local examples from students' experience.
Chalkboard, textbook, exercise books, chalk, students' prior knowledge and experiences.
Chalkboard, textbook, exercise books, examples from students' local knowledge, chalk.
Chalkboard, textbook, exercise books, chalk, students' observations from daily life.
KLB Secondary Business Studies Form 4, Pages 124-125
5 2
PUBLIC FINANCE
Government Borrowing - Internal and External
Types of Debt and Government Expenditure
Principles of Public Expenditure
Introduction to Tax and Taxation
By the end of the lesson, the learner should be able to:
Define government borrowing. Distinguish between internal and external borrowing. Explain bilateral and multilateral borrowing. Analyze the concept of national debt.
Detailed teacher explanation with chalkboard illustrations; Discussion on Kenya borrowing from different countries; Students share what they know about loans; Simple calculations of debt examples.
Chalkboard, textbook, exercise books, chalk, basic calculator (if available), student knowledge.
Chalkboard, textbook, exercise books, chalk, local examples from students' environment.
Chalkboard, textbook, exercise books, chalk, students' general knowledge from radio/conversations.
Chalkboard, textbook, exercise books, chalk, students' shopping experiences and observations.
KLB Secondary Business Studies Form 4, Pages 125-127
5 3
PUBLIC FINANCE
Principles of Taxation
Classification of Taxes - By Structure
By the end of the lesson, the learner should be able to:
Explain the characteristics of a good tax system. Analyze equity in taxation (horizontal and vertical). Examine certainty, convenience and economy in taxation. Evaluate flexibility and simplicity in tax systems.
Detailed teacher exposition using chalkboard; Group discussions on fairness in taxation; Students discuss easy vs difficult ways to pay tax; Examples of how shop prices change with VAT changes.
Chalkboard, textbook, exercise books, chalk, students' market experiences and price observations.
Chalkboard, textbook, exercise books, chalk, basic arithmetic skills, simple calculation examples.
KLB Secondary Business Studies Form 4, Pages 131-132
6 1
PUBLIC FINANCE
INFLATION
Classification of Taxes - Direct vs Indirect
Merits and Demerits of Direct and Indirect Taxes
Introduction to Inflation and Deflation
By the end of the lesson, the learner should be able to:
Distinguish between direct and indirect taxes. Explain impact and incidence of taxation. Identify examples of direct taxes (income tax, corporation tax, etc.). Analyze examples of indirect taxes (VAT, excise duty, etc.).
Teacher exposition with chalkboard examples; Discussion on taxes deducted from salaries vs taxes on goods; Students identify taxes they see in shops; Group work classifying different taxes they know.
Chalkboard, textbook, exercise books, chalk, students' knowledge of prices and salary deductions.
Chalkboard, textbook, exercise books, chalk, student experiences and observations, review questions.
Price comparison charts from different years, Country inflation examples, Purchasing power calculation sheets, Real product price data
KLB Secondary Business Studies Form 4, Pages 135-141
6 2
INFLATION
Consumer Price Index (CPI) Concepts
CPI Calculation - Simple Average Method
CPI Calculation - Weighted Average Method
Types of Inflation and Demand-Pull Inflation
By the end of the lesson, the learner should be able to:
Define Consumer Price Index and its purpose. Explain index numbers and their importance. Identify factors in CPI construction: basket selection, base period, price data. Understand CPI as inflation measurement tool.
Analysis of typical consumer basket of goods. Selection of base year with stable prices. Price data collection simulation. Discussion on representativeness of basket items. Index number concept demonstration.
Sample consumer baskets, Base year price data, Price collection sheets, Index calculation examples, Consumer survey materials
Price data for multiple commodities, Calculation worksheets, Calculators, CPI formula charts, Practice problem sets
Family budget examples, Weight assignment sheets, Weighted calculation templates, Comparison tables, Advanced calculation problems
Market simulation materials, Government spending examples, Money supply charts, Income increase scenarios, Demand-pull diagrams
KLB Secondary Business Form 4, Pages 144-146
6 3
INFLATION
More Causes of Demand-Pull Inflation
Cost-Push Inflation and Its Causes
More Cost-Push Causes and Subsidy Effects
Levels of Inflation
By the end of the lesson, the learner should be able to:
Explain additional causes: general shortages, increased consumer expenditure, population growth effects. Analyze expectation-driven demand increases. Demonstrate how shortages pull prices upward.
Shortage simulation exercises creating artificial scarcity. Analysis of population growth impact on demand. Expectation-driven buying behavior case studies. Consumer expenditure pattern analysis and price impact.
Shortage simulation materials, Population growth data, Expectation scenario cards, Consumer expenditure charts, Supply-demand graphs
Production cost scenarios, Wage-price spiral charts, Tax impact examples, Import price data, Cost-push diagrams
Manufacturing cost examples, Subsidy impact data, Profit margin scenarios, Input cost charts, Comprehensive comparison tables
Historical inflation data, Germany 1923 case study, Country comparison charts, Inflation level classification sheets
KLB Secondary Business Form 4, Pages 149-150
7 1
INFLATION
Positive Effects of Inflation
Negative Effects of Inflation
By the end of the lesson, the learner should be able to:
Analyze benefits for debtors paying less in real terms. Explain how sellers can earn more profits. Demonstrate motivation to work harder. Show increased production and better resource utilization.
Debtor-creditor scenario analysis with inflation impact. Seller profit calculation exercises during inflation. Work motivation case studies during inflationary periods. Resource utilization efficiency examples during inflation.
Debtor-creditor scenarios, Profit calculation sheets, Work motivation examples, Resource utilization cases, Real vs nominal value charts
Sales simulation materials, Time cost analysis sheets, Role-play scenarios, Living standard calculation examples, Wage negotiation materials
KLB Secondary Business Form 4, Pages 153-154
7 2
INFLATION
More Negative Effects and Economic Impact
Controlling Inflation - Monetary Policy Tools
By the end of the lesson, the learner should be able to:
Analyze losses to creditors and retardation of economic growth. Explain adverse effects on balance of payments. Demonstrate loss of confidence in monetary system. Show discouragement of savings.
Creditor loss calculations in real terms. Economic growth impact analysis with case studies. Balance of payments deterioration examples. Monetary system confidence erosion scenarios. Savings discouragement analysis.
Creditor loss examples, Economic growth data, Balance of payments charts, Monetary confidence indicators, Savings impact studies
Central Bank simulation materials, Interest rate impact charts, Securities trading examples, Cash ratio calculation sheets
KLB Secondary Business Form 4, Pages 155-156
7 3
INFLATION
More Monetary Policy Tools and Fiscal Policy
Fiscal Policy Measures and Production Solutions
By the end of the lesson, the learner should be able to:
Explain selective credit controls and directives. Detail moral suasion by Central Bank. Define fiscal policy for inflation control. Analyze government spending reduction and tax policy effects.
Credit control scenario exercises. Central Bank directive simulations. Government spending impact analysis on inflation. Tax policy effects on consumer spending and production costs.
Credit control scenarios, Directive examples, Government spending data, Tax policy impact charts, Fiscal policy simulation materials
Production tax examples, Subsidy calculation sheets, Government production cases, Policy design templates, Impact analysis charts
KLB Secondary Business Form 4, Pages 156-158
8

Midterm

9 1
INFLATION
Paper 1 Revision
Statutory Measures for Inflation Control
Export Controls and Comprehensive Control Strategies
Short Answer & Definition Questions
By the end of the lesson, the learner should be able to:
Explain wage and salary controls to prevent cost-push inflation. Demonstrate price control mechanisms. Detail import restriction methods. Analyze hire purchase and credit term controls.
Wage control policy analysis and effects. Price control implementation exercises. Import restriction case studies and alternatives. Credit term control simulations and consumer impact.
Wage control examples, Price control policies, Import restriction data, Credit control scenarios, Policy implementation cases
Export control examples, Multi-strategy templates, Historical effectiveness data, Strategy design sheets, Presentation materials
Past Paper 1 exams, marking schemes
KLB Secondary Business Form 4, Pages 158-159
9 2
REVISION

Paper 1 Revision
Paper 1 Revision
Paper 2 Revision
Paper 2 Revision
Application & Explanation Questions
Financial Questions
Descriptive Questions
Financial & Accounting Questions
By the end of the lesson, the learner should be able to:
- Apply business knowledge to real business situations
-Develop clear, logical explanations
- Teacher demonstrates how to answer explanation questions
-Students answer questions on factors, reasons, and effects
-Class discussion and corrections
Past Paper 1 exams, topic summaries, marking schemes
Past papers with financial questions, marking schemes
Sample answers, past papers, marking schemes
Past Paper 2 exams, marking schemes, financial statement examples
Business Studies KLB Paper 1, KLB Bk 1-4, Students notes
9 3
Paper 1 Revision
Paper 2 Revision
Short Answer & Definition Questions
Application & Explanation Questions
Financial Questions
Descriptive Questions
By the end of the lesson, the learner should be able to:
- Revise key definitions and facts
-Improve accuracy in short answers
-Practice time management
- Class quiz on common terms
-Group revision as guided by the teacher
-Peer marking using marking schemes
Past Paper 1 exams, marking schemes
Past Paper 1 exams, topic summaries, marking schemes
Past papers with financial questions, marking schemes
Sample answers, past papers, marking schemes
Business Studies Paper 1, KLB Bk 1-4
10 1
Paper 2 Revision
Paper 1 Revision
Paper 1 Revision
Paper 1 Revision
Financial & Accounting Questions
Short Answer & Definition Questions
Application & Explanation Questions
Financial Questions
By the end of the lesson, the learner should be able to:
- Master the rules of recording financial information
-Learn to prepare different financial reports
-Apply financial knowledge to solve problems
- Teacher shows how to prepare various financial reports
-Students work on past paper problems alone and in groups
-Teacher checks the work to ensure it's correct and gives feedback
Past Paper 2 exams, marking schemes, financial statement examples
Past Paper 1 exams, marking schemes
Past Paper 1 exams, topic summaries, marking schemes
Past papers with financial questions, marking schemes
Business Studies KLB Book 1-4
10 2
Paper 2 Revision
Paper 1 Revision
Paper 1 Revision
Paper 1 Revision
Descriptive Questions
Financial & Accounting Questions
Short Answer & Definition Questions
Application & Explanation Questions
Financial Questions
By the end of the lesson, the learner should be able to:
- Develop essay-style answers in a structured format
-Organize points logically under subheadings
-Practice time-bound responses
- Brainstorm key points for common topics as guided by the teacher
-Group discussion
-Peer review and teacher marking
Sample answers, past papers, marking schemes
Past Paper 2 exams, marking schemes, financial statement examples
Past Paper 1 exams, marking schemes
Past Paper 1 exams, topic summaries, marking schemes
Past papers with financial questions, marking schemes
Business Studies Paper 2, KLB Bk 1-4
10 3
Paper 2 Revision
Paper 1 Revision
Paper 1 Revision
Descriptive Questions
Financial & Accounting Questions
Short Answer & Definition Questions
Application & Explanation Questions
By the end of the lesson, the learner should be able to:
- Develop essay-style answers in a structured format
-Organize points logically under subheadings
-Practice time-bound responses
- Brainstorm key points for common topics as guided by the teacher
-Group discussion
-Peer review and teacher marking
Sample answers, past papers, marking schemes
Past Paper 2 exams, marking schemes, financial statement examples
Past Paper 1 exams, marking schemes
Past Paper 1 exams, topic summaries, marking schemes
Business Studies Paper 2, KLB Bk 1-4
11 1
Paper 1 Revision
Paper 2 Revision
Paper 2 Revision
Paper 1 Revision
Financial Questions
Descriptive Questions
Financial & Accounting Questions
Short Answer & Definition Questions
By the end of the lesson, the learner should be able to:
- Master financial calculations and reporting
-Prepare financial
-Interpret and apply financial data to solve problems
- Solve past paper financial questions in groups
-Peer review and teacher marking of solutions
Past papers with financial questions, marking schemes
Sample answers, past papers, marking schemes
Past Paper 2 exams, marking schemes, financial statement examples
Past Paper 1 exams, marking schemes
Business Studies KLB Paper 1, KLB Bk 1-4, Students notes
11 2
Paper 1 Revision
Paper 2 Revision
Paper 2 Revision
Application & Explanation Questions
Financial Questions
Descriptive Questions
Financial & Accounting Questions
By the end of the lesson, the learner should be able to:
- Apply business knowledge to real business situations
-Develop clear, logical explanations
- Teacher demonstrates how to answer explanation questions
-Students answer questions on factors, reasons, and effects
-Class discussion and corrections
Past Paper 1 exams, topic summaries, marking schemes
Past papers with financial questions, marking schemes
Sample answers, past papers, marking schemes
Past Paper 2 exams, marking schemes, financial statement examples
Business Studies KLB Paper 1, KLB Bk 1-4, Students notes
11 3
Paper 1 Revision
Paper 2 Revision
Short Answer & Definition Questions
Application & Explanation Questions
Financial Questions
Descriptive Questions
By the end of the lesson, the learner should be able to:
- Revise key definitions and facts
-Improve accuracy in short answers
-Practice time management
- Class quiz on common terms
-Group revision as guided by the teacher
-Peer marking using marking schemes
Past Paper 1 exams, marking schemes
Past Paper 1 exams, topic summaries, marking schemes
Past papers with financial questions, marking schemes
Sample answers, past papers, marking schemes
Business Studies Paper 1, KLB Bk 1-4
12 1
Paper 2 Revision
Paper 1 Revision
Paper 1 Revision
Paper 1 Revision
Financial & Accounting Questions
Short Answer & Definition Questions
Application & Explanation Questions
Financial Questions
By the end of the lesson, the learner should be able to:
- Master the rules of recording financial information
-Learn to prepare different financial reports
-Apply financial knowledge to solve problems
- Teacher shows how to prepare various financial reports
-Students work on past paper problems alone and in groups
-Teacher checks the work to ensure it's correct and gives feedback
Past Paper 2 exams, marking schemes, financial statement examples
Past Paper 1 exams, marking schemes
Past Paper 1 exams, topic summaries, marking schemes
Past papers with financial questions, marking schemes
Business Studies KLB Book 1-4
12 2
Paper 2 Revision
Paper 1 Revision
Paper 1 Revision
Paper 1 Revision
Paper 2 Revision
Paper 2 Revision
Descriptive Questions
Financial & Accounting Questions
Short Answer & Definition Questions
Application & Explanation Questions
Financial Questions
Descriptive Questions
Financial & Accounting Questions
By the end of the lesson, the learner should be able to:
- Develop essay-style answers in a structured format
-Organize points logically under subheadings
-Practice time-bound responses
- Brainstorm key points for common topics as guided by the teacher
-Group discussion
-Peer review and teacher marking
Sample answers, past papers, marking schemes
Past Paper 2 exams, marking schemes, financial statement examples
Past Paper 1 exams, marking schemes
Past Paper 1 exams, topic summaries, marking schemes
Past papers with financial questions, marking schemes
Business Studies Paper 2, KLB Bk 1-4

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