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KCSE CLUSTER TESTS 25

Business Studies Paper 1

1.

Outline any four circumstances under which sellers/exporters may use proforma invoice.

a)...........................................................................................................................................................

b)............................................................................................................................................................

c).............................................................................................................................................................

d).............................................................................................................................................................

4 marks

2.

State four features of a public corporation.

i) …………………………………………………………………………………………

ii) …………………………………………………………………………………………

iii) …………………………………………………………………………………………

iv) …………………………………………………………………………………………

4 marks

3.

Highlight four modern trends that have been witnessed in commercial banking in this country.

i) ………………………………………………………………………………………… ………………………………

ii) ………………………………………………………………………………………… ………………………………

iii) ………………………………………………………………………………………… ………………………………

iv) ………………………………………………………………………………………… ………………………………

4 marks

4.

Outline four problems of using a long chain of distribution in the market.

i) …………………………………………………………………………………………

ii) …………………………………………………………………………………………

iii) …………………………………………………………………………………………

v) …………………………………………………………………………………………

4 marks

5.

Mumias sugar Co. Ltd is set up in Kakamega county. State four ways in which the surrounding community may benefit from this industry.

i) ………………………………………………………………………………………… ………………………………

ii) ………………………………………………………………………………………… ………………………………

iii) ………………………………………………………………………………………… ………………………………

iv) ………………………………………………………………………………………… ………………………………

4 marks

6.

Its the duty of the government to protect its citizens in the country. Outline four such malpractices that consumers may be protected against by the Government.

i) …………………………………………………………………………………………

ii) …………………………………………………………………………………………

iii) …………………………………………………………………………………………

iv) …………………………………………………………………………………………

4 marks

7.

From the table, draw a supply curve and label it.

4 marks

8.

Before an entrepreneur sets up a business unit, there are several considerations he has to make. Highlight four considerations that an entrepreneur should take into account, when evaluating a business idea.

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

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

iii) ………………………………………………………………………………………… ………………………………..

iv) ………………………………………………………………………………………… ………………………………..

4 marks

9.

Outline four differences between Liners and Tramps in water transport.

4 marks

10.

The following balances were extracted from the books of Jakoya Retailers for the year ended 31 of December, 2011.

Sh.

Creditors 100,000

Debtors 160,000

Opening stock 80,000

Closing stock 40,000

Purchases 350,000

Sales 600,000

Calculate:

a) Margin

………………………………………………………………………………………………

………………………………………………………………………………………………

b) Current ratio

………………………………………………………………………………………………

………………………………………………………………………………………………

c) Rate of stock Turnover

……………………………………………………………………………………………

………………………………………………………………………………………………

5 marks

11.

Shimenga Tabitha started business with Sh.20,000 in cash on 1st Jan, 2010.

Jan 1, bought stock worth sh.10,000 in cash.

Jan 2: Sold goods worth S h.15,000 receiving payment by cheque

Jan 3, Took cash worth Sh.11,000 for personal use.

4 marks

12.

The balance sheet prepared by Elephant Traders as at 1st Jan,2011, showed capital of Sh.350,000. The following pertains to the year ending 31st Dec,2011.

Total Drawings as Sh.40,000

Additional investments Sh.80,000

Capital on 31.Dec,2011 Sh.700,000

Calculate the profit or loss for the year ended 31 Dec, 2011

4 marks

13.

The following descriptions relate to business transactions. State the term that suits the descriptions in each case.

4 marks

14.

Below is a diagram showing the cyclical unemployment

Identify the parts labeled (a), (b), (c) and (d) above.

4 marks

15.

Highlight four ways consumers are likely to suffer in a situation where there is no warehousing services.

a) ………………………………………………………………………………………… …………………………………

b) ………………………………………………………………………………………… …………………………………

c) ………………………………………………………………………………………… …………………………………

d) ………………………………………………………………………………………… …………………………………

4 marks

16.

Give four positive effects that inflation may have on the economy of Kenya.

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

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

iii) ………………………………………………………………………………………… …………………………………..

iv) ………………………………………………………………………………………… …………………………………..

4 marks

17.

Highlight four challenges in the modern of using cell-phones.

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

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

iii) ………………………………………………………………………………………… …………………………………..

iv) ………………………………………………………………………………………… …………………………………..

4 marks

18.

Outline four features of under- development in a country like Kenya.

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

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

iii) ………………………………………………………………………………………… ………………………………….

iv) ………………………………………………………………………………………… ………………………………….

4 marks

19.

Highlight four factors necessitating an insurance company to re-insure.

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

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

iii) ………………………………………………………………………………………… ………………………………..

iv) ………………………………………………………………………………………… ………………………………..

4 marks

20.

The following are some of the occupations in production. Match each level of production under the various occupations.

4 marks

21.

State four advantages of advertising as a method of product promotion.

i) ………………………………………………………………………………………… …………………………

ii) ………………………………………………………………………………………… …………………………

iii) ………………………………………………………………………………………… …………………………

iv) ………………………………………………………………………………………… …………………………

4 marks

22.

Highlight four features of a good tax system.

i) …………………………………………………………………………………………

ii) …………………………………………………………………………………………

iii) …………………………………………………………………………………………

iv) …………………………………………………………………………………………

4 marks

23.

Outline four factors to consider when selecting office equipment.

i) …………………………………………………………………………………………

ii) …………………………………………………………………………………………

iii) …………………………………………………………………………………………

iv) …………………………………………………………………………………………

4 marks

24.

State four qualities of effective communication.

i) …………………………………………………………………………………………

ii) …………………………………………………………………………………………

iii) …………………………………………………………………………………………

iv) …………………………………………………………………………………………

4 marks

25.

Outline three features of monopolistic competition market.

i) …………………………………………………………………………………………

ii) …………………………………………………………………………………………

iii) …………………………………………………………………………………………

iv) …………………………………………………………………………………………

3 marks

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