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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
Current Ratio and Working Capital Ratio
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
Ratio calculation sheets, Busia Traders example, interpretation guides
KLB Secondary Business Studies Form 4, Pages 72-74
2 2
FINANCIAL STATEMENTS
Rate of Stock Turnover
Stock Turnover Applications
By the end of the lesson, the learner should be able to:
Define stock turnover; Calculate rate of stock turnover; Interpret turnover results; Apply in trading account preparation
Explanation of stock turnover concept; Calculations using Upendo Traders; Practical applications; Using turnover for incomplete records
Stock turnover worksheets, Upendo Traders example, practical applications
Advanced application sheets, Maendeleo Traders example, complex scenarios
KLB Secondary Business Studies Form 4, Pages 76-78
2 3
FINANCIAL STATEMENTS
Return on Capital
Acid Test and Quick Ratio
By the end of the lesson, the learner should be able to:
Define return on capital; Calculate return on capital; Interpret results for decision making; Compare business performance
Introduction to profitability ratios; Calculations using Mr Odiek's example; Performance comparison methods; Investment decision applications
Return calculation sheets, Mr Odiek's example, comparison materials
Quick ratio worksheets, Nakura Stores example, liquidity analysis materials
KLB Secondary Business Studies Form 4, Pages 78-79
3 1
FINANCIAL STATEMENTS
MONEY & BANKING
MONEY & BANKING
MONEY & BANKING
Importance of Financial Ratios
Introduction, Barter Trade and its Limitations
Money System and Characteristics of Money
Functions of Money
By the end of the lesson, the learner should be able to:
Explain importance of each ratio type; Identify stakeholder uses; Understand decision-making applications; Analyze business implications
Comprehensive discussion on ratio importance; Stakeholder analysis; Case studies on ratio applications; Group presentations
Stakeholder analysis sheets, case study materials, presentation guidelines
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
KLB Secondary Business Studies Form 4, Page 80
3 2
MONEY & BANKING
Demand for Money and Supply of Money
Banking System and Development of Banking
Commercial Banks and Their Services
Commercial Bank Services and Foreign Exchange
By the end of the lesson, the learner should be able to:
Define liquidity preference. Explain transaction, precautionary and speculative motives for holding money. Define supply of money and identify its components. Analyze factors affecting money demand and supply.
Analysis of personal spending patterns. Case studies on emergency savings and speculation. Discussion on Central Bank role in money supply. Money circulation data analysis. Income and spending relationship exercises.
Budget sheets, Emergency scenarios, Investment charts, Money supply statistics, Central Bank reports
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
KLB Secondary Business Form 4, Pages 96-99
3 3
MONEY & BANKING
Types of Bank Accounts - Current and Savings
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 and compare current and savings accounts. Explain characteristics, advantages and disadvantages of each. Demonstrate account operations and requirements.
Current account opening simulation. Savings account operation practice. Cheque writing exercises. Interest calculation for savings. ATM usage demonstrations. Account comparison activities.
Account opening forms, Cheque books, ATM cards, Interest calculation sheets, Comparison charts
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 104-109
4 1
MONEY & BANKING
Micro-Finance, Agricultural Finance and Differences with Commercial Banks
Central Bank Functions
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
KLB Secondary Business Form 4, Pages 111-113
4 2
MONEY & BANKING
Monetary Policy Tools
Modern Banking Trends
By the end of the lesson, the learner should be able to:
Define monetary policy and its objectives. Explain bank rate, open market operations, cash/liquidity ratio, compulsory deposits, selective credit controls, directives and moral suasion. Demonstrate how these tools control money supply.
Monetary policy simulation exercises. Interest rate effect analysis. Securities trading demonstrations. Cash ratio calculations. Credit control scenarios. Policy tool comparison activities.
Policy charts, Interest rate examples, Securities samples, Calculation sheets, Control scenarios, Comparison tables
ATM cards, Computer demonstrations, Modern banking examples, Technology comparison charts
KLB Secondary Business Form 4, Pages 115-117
4 3
MONEY & BANKING
PUBLIC FINANCE
PUBLIC FINANCE
Modern Banking Trends
Introduction to Public Finance and its Purpose
Purpose of Public Finance - Provision of Essential Services
By the end of the lesson, the learner should be able to:
Explain mobile banking, e-banking, and M-pesa services. Detail credit facilities evolution and customer care improvements. Analyze mobile banks and Pesa Point services. Assess banking accessibility improvements.
Mobile money demonstrations. E-banking simulations. Digital payment exercises. Credit application processes. Customer service role-plays. Mobile bank simulation.
Mobile phones, E-banking platforms, Digital payment examples, Credit forms, Service scenarios, Mobile bank materials
Chalkboard, textbook, exercise books, pens, local examples from students' experience.
Chalkboard, textbook, exercise books, chalk, students' prior knowledge and experiences.
KLB Secondary Business Form 4, Pages 119-121
5 1
PUBLIC FINANCE
Purpose of Public Finance - Economic Control and Development
Sources of Public Finance - Overview and Classification
Government Borrowing - Internal and External
Types of Debt and Government Expenditure
By the end of the lesson, the learner should be able to:
Explain how public finance controls consumption of certain products. Describe how government encourages/discourages certain economic activities. Analyze balanced regional development through public finance. Examine wealth redistribution through public finance.
Discussion on high prices of cigarettes and alcohol; Teacher explains government subsidies using fertilizer example; Students give examples of development projects in different counties; Q/A on how taxes help the poor.
Chalkboard, textbook, exercise books, examples from students' local knowledge, chalk.
Chalkboard, textbook, exercise books, chalk, students' observations from daily life.
Chalkboard, textbook, exercise books, chalk, basic calculator (if available), student knowledge.
Chalkboard, textbook, exercise books, chalk, local examples from students' environment.
KLB Secondary Business Studies Form 4, Pages 124-125
5 2
PUBLIC FINANCE
Principles of Public Expenditure
Introduction to Tax and Taxation
Principles of Taxation
By the end of the lesson, the learner should be able to:
Outline principles governing public expenditure. Explain the concept of sanctions in public spending. Analyze the principle of maximum social benefit. Examine flexibility and economy in public expenditure.
Teacher exposition on government spending rules; Discussion on why parliament must approve spending; Students give examples of wasteful government spending they have heard about; Q/A on benefits of government projects.
Chalkboard, textbook, exercise books, chalk, students' general knowledge from radio/conversations.
Chalkboard, textbook, exercise books, chalk, students' shopping experiences and observations.
Chalkboard, textbook, exercise books, chalk, students' market experiences and price observations.
KLB Secondary Business Studies Form 4, Pages 128-129
5 3
PUBLIC FINANCE
Classification of Taxes - By Structure
Classification of Taxes - Direct vs Indirect
By the end of the lesson, the learner should be able to:
Define and distinguish regressive, proportional and progressive taxes. Calculate tax under different tax structures. Analyze the impact of each tax structure on different income groups. Evaluate merits and demerits of progressive taxation.
Teacher works through mathematical examples on chalkboard; Students practice calculations in exercise books; Group work comparing effects on different income earners; Supervised practice with simple numbers.
Chalkboard, textbook, exercise books, chalk, basic arithmetic skills, simple calculation examples.
Chalkboard, textbook, exercise books, chalk, students' knowledge of prices and salary deductions.
KLB Secondary Business Studies Form 4, Pages 132-135
6 1
PUBLIC FINANCE
INFLATION
INFLATION
INFLATION
Merits and Demerits of Direct and Indirect Taxes
Introduction to Inflation and Deflation
Consumer Price Index (CPI) Concepts
CPI Calculation - Simple Average Method
By the end of the lesson, the learner should be able to:
Analyze advantages and disadvantages of direct taxation. Evaluate merits and demerits of indirect taxation. Compare effectiveness of direct vs indirect taxes. Assess the role of both types in government revenue.
Comparative discussion using chalkboard summary; Group debates on which tax system is better; Students discuss tax avoidance they have observed; Comprehensive review and written exercise; Topic summary preparation.
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
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
KLB Secondary Business Studies Form 4, Pages 135-141
6 2
INFLATION
CPI Calculation - Weighted Average Method
Types of Inflation and Demand-Pull Inflation
More Causes of Demand-Pull Inflation
Cost-Push Inflation and Its Causes
By the end of the lesson, the learner should be able to:
Understand importance of weighting in CPI calculation. Assign weights to different commodities based on consumption patterns. Calculate weighted average CPI. Compare simple vs weighted average results.
Weight assignment exercises based on family budgets. Weighted CPI calculation practice with real data. Comparison between simple and weighted average methods. Analysis of why weighting gives more accurate results.
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
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
KLB Secondary Business Form 4, Pages 147-148
6 3
INFLATION
More Cost-Push Causes and Subsidy Effects
Levels of Inflation
Positive Effects of Inflation
By the end of the lesson, the learner should be able to:
Analyze input cost increases other than labor. Explain reduction in subsidies impact. Demonstrate profit-push and tax-push inflation. Compare various cost-push mechanisms.
Input cost increase simulations using manufacturing examples. Subsidy removal impact analysis on prices. Profit margin increase exercises and price effects. Comprehensive comparison of all cost-push factors.
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
Debtor-creditor scenarios, Profit calculation sheets, Work motivation examples, Resource utilization cases, Real vs nominal value charts
KLB Secondary Business Form 4, Pages 151-152
7 1
INFLATION
Negative Effects of Inflation
More Negative Effects and Economic Impact
By the end of the lesson, the learner should be able to:
Explain reduction in profits due to decreased sales volume. Analyze time wastage in price shopping. Demonstrate conflicts between employers and employees. Show decline in living standards.
Sales volume decline simulation during price increases. Time cost analysis of shopping around for prices. Employer-employee wage negotiation role-plays. Living standard decline calculations with fixed incomes.
Sales simulation materials, Time cost analysis sheets, Role-play scenarios, Living standard calculation examples, Wage negotiation materials
Creditor loss examples, Economic growth data, Balance of payments charts, Monetary confidence indicators, Savings impact studies
KLB Secondary Business Form 4, Pages 154-155
7 2
INFLATION
Controlling Inflation - Monetary Policy Tools
More Monetary Policy Tools and Fiscal Policy
By the end of the lesson, the learner should be able to:
Define monetary policy for inflation control. Explain Central Bank tools: bank rate increases, open market operations. Demonstrate cash ratio and compulsory deposits effects.
Monetary policy simulation with Central Bank role-play. Interest rate impact exercises on borrowing and spending. Open market operations demonstrations. Cash ratio calculation and credit impact analysis.
Central Bank simulation materials, Interest rate impact charts, Securities trading examples, Cash ratio calculation sheets
Credit control scenarios, Directive examples, Government spending data, Tax policy impact charts, Fiscal policy simulation materials
KLB Secondary Business Form 4, Pages 156-157
7 3
INFLATION
Fiscal Policy Measures and Production Solutions
Statutory Measures for Inflation Control
By the end of the lesson, the learner should be able to:
Explain reducing taxes on production to control cost-push inflation. Demonstrate subsidizing production effects. Show government production of scarce commodities. Analyze comprehensive fiscal policy approaches.
Production tax reduction impact analysis. Subsidy effect calculations on final prices. Government production case studies. Comprehensive fiscal policy design exercises for inflation control.
Production tax examples, Subsidy calculation sheets, Government production cases, Policy design templates, Impact analysis charts
Wage control examples, Price control policies, Import restriction data, Credit control scenarios, Policy implementation cases
KLB Secondary Business Form 4, Pages 157-158
8

Midterm

9 1
INFLATION
Paper 1 Revision
Paper 1 Revision
Export Controls and Comprehensive Control Strategies
Short Answer & Definition Questions
Application & Explanation Questions
By the end of the lesson, the learner should be able to:
Explain export controls to prevent domestic shortages. Analyze combination of multiple control measures. Evaluate effectiveness of different approaches. Design comprehensive anti-inflation strategy.
Export control case studies and domestic market effects. Multi-pronged control strategy design exercises. Effectiveness evaluation of historical control measures. Comprehensive strategy presentations by groups.
Export control examples, Multi-strategy templates, Historical effectiveness data, Strategy design sheets, Presentation materials
Past Paper 1 exams, marking schemes
Past Paper 1 exams, topic summaries, marking schemes
KLB Secondary Business Form 4, Pages 158-159
9 2
REVISION

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
9 3
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
10 1
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 2
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 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
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
12 3
Paper 1 Revision
Paper 2 Revision
Paper 2 Revision
Financial Questions
Descriptive Questions
Financial & Accounting 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
Business Studies KLB Paper 1, KLB Bk 1-4, Students notes

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