Business Studies Paper 1 Question Paper
2016 KASSU JET JOINT EXAMINATION
Business Studies Paper 1
Giving an example in each case, outline the difference between renewable and non-renewable
resources.
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State four reasons why diagonal communication needs to be encouraged in an organization.
a)……………………………………………………………………………………………………
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c)……………………………………………………………………………………………………
d)……………………………………………………………………………………………………
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Mention four benefits enjoyed by a member of a producer cooperative society
a)……………………………………………………………………………………………………
b)…………………………………………………………………………………………………....
c)……………………………………………………………………………………………………
d)……………………………………………………………………………………………………
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State four measures that the government can use to encourage increase in the country’s volume
of exports.
a)……………………………………………………………………………………………………
b)…………………………………………………………………………………………………....
c)……………………………………………………………………………………………………
d)……………………………………………………………………………………………………
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Highlight four positive impacts of the physical environment on the operations of a business.
a)……………………………………………………………………………………………………
b)…………………………………………………………………………………………………....
c)……………………………………………………………………………………………………
d)……………………………………………………………………………………………………
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Highlight four problems associated with monopoly market structure.
a)……………………………………………………………………………………………………
b)…………………………………………………………………………………………………....
c)……………………………………………………………………………………………………
d)……………………………………………………………………………………………………
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Outline four role of the mass media in promoting consumer protection.
a)……………………………………………………………………………………………………
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c)……………………………………………………………………………………………………
d)……………………………………………………………………………………………………
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Outline four services offered in agency banking as a trend in the banking sector.
a)……………………………………………………………………………………………………
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c)……………………………………………………………………………………………………
d)……………………………………………………………………………………………………
4 marks
State the best type of machine one would use to perform the following tasks
| Functions | Name of machine |
| i) Used to trim papers into desired sizes | |
| ii) To post information to ledgers and to prepare payrolls | |
| iii) To transmit printed messages such as letters, maps, diagrams and photographs | |
| iv) To destroy sensitive but unwanted documents | |
4 marks
The following balance sheet belongs to Nyakwar Atiyo during the period ended 30th June 2000.
Nyakwar Atiyo Traders
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The following transactions took place on July 1 2000.
(i) Paid creditors Sh 2000 by cheque.
(ii) Nyakwar Atiyo took stock worth Shs 7500 from the business for his son’s birthday.
(iii) Motor vehicle previously owned by Nyakwar Atiyo values at sh 200,000 was
converted into business vehicles.
Required: Prepare the balance sheet of Nyakwar Atiyo traders as at 2nd July 2000.
4 marks
Highlight four roles of advertising agencies in product promotion
a)……………………………………………………………………………………………………
b)…………………………………………………………………………………………………....
c)……………………………………………………………………………………………………
d)……………………………………………………………………………………………………
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Distinguish between the following categories of government expenditure.
a) Recurrent expenditure
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b) Capital expenditure
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Highlight four differences between hypermarkets and departmental stores.
a)……………………………………………………………………………………………………
b)…………………………………………………………………………………………………....
c)……………………………………………………………………………………………………
d)……………………………………………………………………………………………………
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Distinguish between the following terms as used in National Income (3mks)
a) Gross Domestic Product
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b) Gross National Product
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c) Per capita Income
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Highlight four ways in which the government of Kenya promotes entrepreneurial development
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State four channels of distribution for importation of agricultural produce.
a)……………………………………………………………………………………………………
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d)……………………………………………………………………………………………………
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Outline four trends in transport sector.
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c)……………………………………………………………………………………………………
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Outline four benefits of indirect production.
a)……………………………………………………………………………………………………
b)…………………………………………………………………………………………………....
c)……………………………………………………………………………………………………
d)……………………………………………………………………………………………………
4 marks
Enter the following transactions in the relevant ledger accounts (4mks)
2015
April 1 Janet Cosmetics started a business with Ksh. 150,000 cash
,, 3 Bought stock of goods for Sh. 40,000 and paid in cash
,, 6 Opened a bank account and deposited Sh. 60,000 from the cash till
,, 9 Purchased an office machine for Sh. 25,000 and paid by cheque
4 marks
Give four reasons why a producer may need to have their own warehouse
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b)…………………………………………………………………………………………………....
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d)……………………………………………………………………………………………………
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State the name of the source document used to record the following transactions (4mks)
| Transaction | Source Document |
| a) Received goods returned by a buyer who bought them earlier on credit | |
| b) Making of payment to a casual workers at the end of the week | |
| c) Bought goods for sale from Gilanis Supermarkets on credit | |
| d) A customer, Adhiambo, send a cheque for goods she bought earlier on credit | |
4 marks
Define the following terms as used in business studies
(i) Annuity
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(ii) Proposer
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(iii) Speculative risk
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(iv) Grace period
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In the table below fill in the missing figures S,T,U and V.
| Business | Assets(shs) | Capital(shs) | Liabilities(shs) |
| A | 20,000 | S | 5,000 |
| B | 42,000 | 32,000 | T |
| C | U | 17,000 | 53,000 |
| D | 18000 | V | 6000 |
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V……………………………………………………………………………………………
4 marks
Compute the consumer price index (CPI) from the following data giving explanation of your
outcome.
| Year 2010 2011 | Price 300 375 |
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