Business Studies Paper 1 Question Paper
KCSE CLUSTER TEST 14
Business Studies Paper 1
Give four ways in which commerce satisfy human wants. (4 marks)
i. ……………………………………………………………………………………….........................
ii. ……………………………………………………………………………………………………….
iii. ……………………………………………………………………………………………………….
iv. ……………………………………………………………………………………………………….
4 marks
State the term given to each of the following disciplines. (4marks)
a. Study of trade and aids trade.
……………………………………………………………………………………………………….
b. Study of the activities that are carried out in an office.
……………………………………………………………………………………….........................
c. Study of how man/woman strives to satisfy his/her unlimited wants using limited resources. ……………………………………………………………………………………….........................
d. Study of a systematic way of recording business activities which are used in decision making. ……………………………………………………………………………………………………….
4 marks
State four circumstances under which sea transport would be preferred to other forms of transport. (4 marks)
i. ……………………………………………………………………………………………………….
ii. ……………………………………………………………………………………………………….
iii. ……………………………………………………………………………………………………….
iv. ……………………………………………………………………………………………………….
4 marks
Outline four ways in which political stability is of benefit to business. (4 marks)
i. ……………………………………………………………………………………………………….
ii. ……………………………………………………………………………………………………….
iii. ……………………………………………………………………………………………………….
iv. ……………………………………………………………………………………………………….
4 marks
On 1st April 2013, Marangi had a capital balance of sh. 900,000. During the year ending 31st March 2014, he had introduced sh. 230,000 cash into the business from private sources. Monthly drawings were sh. 4,000. On 31st March 2014 he found the capital balance was sh. 1040,000. Determine profit or loss for the year. (4 marks)
4 marks
Outline four negative effects of an ageing population. (4 marks)
i. ……………………………………………………………………………………………………….
ii. ……………………………………………………………………………………………………….
iii. ……………………………………………………………………………………………………….
iv. ………………………………………………………………………………………………………
4 marks
Give four reasons why the government requires that businesses acquire licences before commencing trade. (4 marks)
i. ……………………………………………………………………………………………………….
ii. ……………………………………………………………………………………………………….
iii. ……………………………………………………………………………………………………….
iv. ……………………………………………………………………………………………………….
4 marks
Outline four characteristics of assets. (4 marks)
i. ………………………………………………………………………………………………………
ii. ……………………………………………………………………………………………………….
iii. ……………………………………………………………………………………………………….
iv. ……………………………………………………………………………………………………….
4 marks
State four reasons why a credit note is issued. (4 marks)
i. ……………………………………………………………………………………………………….
ii. ……………………………………………………………………………………………………….
iii. ……………………………………………………………………………………………………….
iv. ……………………………………………………………………………………………………….
4 marks
The following is an extract of a cash book.
Calculate the figures for A,B,C, and D. (4marks)
4 marks
. Outline four emerging trends in chain of distribution. (4 marks)
i. …………………………………………………………………………………………………
ii. …………………………………………………………………………………………………
iii. …………………………………………………………………………………………………
iv. …………………………………………………………………………………………………
4 marks
. The table below shows estimated values for a certain country in billions of shillings.
Wages and salaries 450,000
Income from rent 30,000
Profit of corporation 40,000
Net interest 80,000
Indirect taxes 70,000
Subsidies 200,000
Depreciation 80,000
Net income from abroad 50,000
Required
From the table above compute the following.
(a) Gross Domestic Product. (4 marks)
4 marks
State four reasons why ethical practices are necessary in product promotion.(4 marks)
i. ………………………………………………………………………………………………………
ii. ……………………………………………………………………………………………………….
iii. ……………………………………………………………………………………………………….
iv. ……………………………………………………………………………………………………….
4 marks
14. Highlight four roles of stock exchange market. (4 marks)
i. ………………………………………………………………………………………………………
ii. ……………………………………………………………………………………………………….
iii. ……………………………………………………………………………………………………….
iv. ……………………………………………………………………………………………………….
4 marks
The following credit sales were made by
Kijana Traders for the month of February 2010.
Feb 1: credit sales to
Rakel, invoice number 001/2 for sh. 2,000
Nyakio, invoice number 002/2 for sh. 5,000
Feb 3 : Credit sales to
Onyango, invoice number 003/2 for sh. 3,000
Wasako invoice number 004/2 for sh. 4,000
Fe14 : Credit sales to
Nyakio, invoice number 005/2 for sh. 5,000
Wasako invoice number 006/2 for sh. 6,000
Feb 27: Credit sales to
Rakel invoice number 007/2 for sh. 8,000
Onyango invoice number 008/2 for Shs. 6,000
Required:
Prepare a sales journal for Kijana traders. (4 marks)
4 marks
Give four reasons why an entrepreneur needs to prepare a business plan. (4 marks)
i. ………………………………………………………………………………………………………
ii. ……………………………………………………………………………………………………….
iii. ……………………………………………………………………………………………………….
iv. ……………………………………………………………………………………………………….
4 marks
. Give four differences between commercial banks and non banking financial institutions. (4marks)
4 marks
Give four disadvantages of monopoly to the consumer. (4 marks)
i. ………………………………………………………………………………………………………
ii. ………………………………………………………………………………………………………
iii. ……………………………………………………………………………………………………….
iv. ……………………………………………………………………………………………………….
4 marks
List four ways in which the government promote export processing zone. (4 marks)
i. ………………………………………………………………………………………………………
ii. ………………………………………………………………………………………………………
iii. ……………………………………………………………………………………………………….
iv. ……………………………………………………………………………………………………….
4 marks
State four advantages of a systematic arrangement of goods in a warehouse. (4 marks)
i. ………………………………………………………………………………………………………
ii. ………………………………………………………………………………………………………
iii. ……………………………………………………………………………………………………….
iv. ……………………………………………………………………………………………………….
4 marks
State four negative effects of a high taxation in the economy. (4 marks)
i. ………………………………………………………………………………………………………
ii. ………………………………………………………………………………………………………
iii. ……………………………………………………………………………………………………….
iv. ……………………………………………………………………………………………………….
4 marks
. Give four benefits that may accrue to a business person who uses e-mail to communicate.(4 marks)
i. ………………………………………………………………………………………………………
ii. ………………………………………………………………………………………………………
iii. ……………………………………………………………………………………………………….
iv. ……………………………………………………………………………………………………….
4 marks
The following balances were extracted from the books of central traders on 30th April 2013.
Discount received 7,200
Purchases 89,000
Sales 100,000
Opening Stock 80, 000
Capital 160,000
Carriage on sales 30,000
General expenses 68,200
Prepare a trial balance as at 30th April 2013. (4 marks)
4 marks
Outline four indicators of underdevelopment in a country. (4 marks)
i. ………………………………………………………………………………………………………
ii. ………………………………………………………………………………………………………
iii. ……………………………………………………………………………………………………….
iv. ……………………………………………………………………………………………………….
4 marks
State four circumstances under which a fall in price of a commodity would not lead to a fall in quantity demanded of the same commodity. (4 marks)
i. ………………………………………………………………………………………………………
ii. ………………………………………………………………………………………………………
iii. ……………………………………………………………………………………………………….
iv. ……………………………………………………………………………………………………….
4 marks