Search
Free School Management System
Free School Management System for Kenya

Free School Management System

Learn More

KCSE CLUSTER TESTS 19

Business Studies Paper 1

1.

Name four skills that a student acquires by learning Business Studies.

(i) …………………………………………………………………………………………………

(ii) …………………………………………………………………………………………………

(iii) …………………………………………………………………………………………………

(iv) …………………………………………………………………………………………………

4 marks

2.

Give four reasons why a business may need a business plan.

(i) ………………………………………………………………………………………………… ………………………………………………………………………………………................

(ii) ………………………………………………………………………………………………… ………………………………………………………………………………………………..

(iii) ………………………………………………………………………………………………… …………………………………………………………………………………………………

(iv) ………………………………………………………………………………………………… …………………………………………………………………………………………………

4 marks

3.

Highlight four circumstances under which a manufacturer may not require warehousing services.

(i) …………………………………………………………………………………………………

(ii) …………………………………………………………………………………………………

(iii) …………………………………………………………………………………………………

(iv) …………………………………………………………………………………………………

4 marks

4.

On 1.4.2013 Nusu Traders bought goods on credit quoted at Ksh. 240,000. Terms of sale were 20% trade discount and 10% cash discount if payment was made on 29.4.2013.Calculate the amount paid if payment was made on 26. 4. 2013. ................................................................................................................................................................... ...................................................................................................................................................................

4 marks

5.

The progress of a country depends on the economic resources available.

(a) Outline two types of economic resources.

(i)…………………………………………………………………………………………………… (ii)……………………………………………………………………………………………………

(b) Name two good examples of economic resources of Kenya.

(i)……………………………………………………………………………………………………(ii)……………………………………………………………………………………………………

4 marks

6.

The following details were extracted from the books of Chantal traders as at 30th September 2012.

Debtors - Sh 12,000

Creditors - Sh 30,000

Stock of goods - Sh 25,000

Bank overdraft - Sh 15,000

Premises - Sh 260,000

Cash in hand - Sh 18,000

Motor vehicle - Sh 140,000

Calculate her capital and prepare her balance sheet as at 30th September 2012.

4 marks

7.

Highlight four benefits of the improved road network in Kenya.

(i) …………………………………………………………………………………………………

(ii) …………………………………………………………………………………………………

(iii) …………………………………………………………………………………………………

(iv) …………………………………………………………………………………………………

4 marks

8.

Outline four benefits of a growing youthful population on the economy of a country like Kenya.

(i) …………………………………………………………………………………………………

(ii) …………………………………………………………………………………………………

(iii) …………………………………………………………………………………………………

(iv) …………………………………………………………………………………………………

4 marks

9.

Outline four measures a country like Kenya may take to correct unfavourable balance of payment.

(i) …………………………………………………………………………………………………

(ii) …………………………………………………………………………………………………

(iii) …………………………………………………………………………………………………

(iv) …………………………………………………………………………………………………

4 marks

10.

Give four types of errors not disclosed in a trial balance.

(i) …………………………………………………………………………………………………

(ii) …………………………………………………………………………………………………

(iii) …………………………………………………………………………………………………

(iv) …………………………………………………………………………………………………

4 marks

11.

Highlight four factors which are likely to hinder a country’s development.

(i) …………………………………………………………………………………………………

(ii) …………………………………………………………………………………………………

(iii) …………………………………………………………………………………………………

(iv) …………………………………………………………………………………………………

4 marks

12.

Halima intends to start selling cabbages in a local market. The demand and supply is represented in the diagram below.

State four consequences of selling the cabbages at price P2.

(i) ………………………………………………………………………………………………………

(ii) ………………………………………………………………………………………………………

(iii) ………………………………………………………………………………………………………

(iv) ………………………………………………………………………………………………………

4 marks

13.

Highlight four ways in which consumers may protect themselves against exploitation by traders

(i) …………………………………………………………………………………………………

(ii) …………………………………………………………………………………………………

(iii) …………………………………………………………………………………………………

(iv) …………………………………………………………………………………………………

4 marks

14.

Masanya started a business on 1st Jan 2012 with a capital of 650,000 which he deposited in the business bank account. During the year the following transactions took place.

i. Realized a profit of Sh 120,000

ii. Brought into the business equipment valued at sh. 50,000

iii. Withdrew sh. 80,000 from the business bank account to pay for his son’s university fees.

Determine Masanya’s final capital.

....................................................................................................................................................... .......................................................................................................................................................

5 marks

15.

Outline three circumstances under which downward communication may be used in a firm.

(i) …………………………………………………………………………………………………

(ii) …………………………………………………………………………………………………

(iii) …………………………………………………………………………………………………

(iv) …………………………………………………………………………………………………

3 marks

16.

The following transactions took place in the business of Mutarakwa Traders 2011 August 4: Bought 100 bags of sugar on credit from Mugumo wholesalers @ Sh 3000 less 10% trade discount.

August 7: Bought 90 crates of soda on credit from Kibuku traders @ Sh 500.

August 12: Bought 32 bags of sugar on credit from Mugumo wholesalers @ Sh3000.

August 19: Returned 10 crates of soda to Kibuku traders. Record the transactions in

a. Purchases day book.

....................................................................................................................................................... .......................................................................................................................................................

b. Purchases Return day book.

....................................................................................................................................................... .......................................................................................................................................................

4 marks

17.

Give four advantages of parastatals.

(i) …………………………………………………………………………………………………

(ii) …………………………………………………………………………………………………

(iii) …………………………………………………………………………………………………

(iv) …………………………………………………………………………………………………

4 marks

18.

Identify four causes of demand pull inflation in an economy.

(i) …………………………………………………………………………………………………

(ii) …………………………………………………………………………………………………

(iii) …………………………………………………………………………………………………

(iv) …………………………………………………………………………………………………

4 marks

19.

Mention the principle of insurance involved in the following statements.

(a). One cannot insure the neighbour’s house.

……….....................................................................................................................................

(b) Compensation is paid out by an insurance company only if the loss is a direct result of happening of the event insured against. .........................................................................................................................................

(c). After having been compensated the insured is not allowed to take the scrap. .........................................................................................................................................

(d). The aim of the insurance company is to put back the insured to his/her original material financial position and not to profit him/her. ........................................................................................................................................

4 marks

20.

On 1st Feb 2012 Muthoni had sh. 14,000 at bank. Transactions for the week ending 7th Feb 2012 were as follows.

Feb 3: Received ksh. 38,000 cash form Karendi after allowing 5% cash discount.

Feb 4: Deposited sh. 20,000 into the bank from cash till.

Feb 6: Paid kihenju sh. 16,000 by cheque in full settlement of his account of sh. 16,900.

Record the above information in a three column cash book and balance it off. ………………………………………………………………………………………………………… …………………………………………………………………………………………………………

5 marks

21.

During the 2013 election period, many aspiring politicians campaigned using billboards. Highlight four limitations of using this method.

(i) ……………………………………………………………………………………………………

(ii) ……………………………………………………………………………………………………

(iii) ……………………………………………………………………………………………………

(iv) ……………………………………………………………………………………………………

5 marks

22.

State four differences between perfect competition market and oligopolistic market.

4 marks

23.

Give three advantages of using M-pesa as a means of payment.

(i) …………………………………………………………………………………………………

(ii) …………………………………………………………………………………………………

(iii) …………………………………………………………………………………………………

3 marks

24.

State the term that is used for each of the following statements.

(a). A situation where the government has borrowed internally at high interest rate leaving little for locals to borrow from. …………………………………………………………………………………...............................

(b). Debts incurred by the government to finance activities that do not generate revenue at all at any time. ………………………………………………………………………………………………………

(c). Government expenditure which is incurred all the time on a regular basis. ………………………………………………………………………………………………………
(d). Type of tax paid by companies based on profit.

………………………………………………………………………………....................................

4 marks

25.

The following transactions took place in the business of Gift traders during the first week of March 2013.

March 2: issued an invoice no. 840 to Karen Sh. 80,000.

March 3: Received an invoice no. 940 from Mugeka Traders sh. 50,000.

March 4: Issued a credit note no. 110 to Karen sh. 8,000.

March 5: Received a credit note no. 014 from Mugeka Traders sh. 5,000.

Record the above information in the relevant ledger accounts.

………………………………………………………………………………………………………… …………………………………………………………………………………………………………

4 marks

Back Top