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KCSE CLUSTER TESTS 26

Business Studies Paper 1

1.

State four limitation of direct production

a) _______________________________________________________________ b_____________________________________________________________________________

c) _________________________________________________________________ d_____________________________________________________________________________

4 marks

2.

Highlight four roles of an entrepreneur to the economy of a country

a) _________________________________________________________________

b) _________________________________________________________________

c)___________________________________________________________________________

d) ________________________________________________________________

4 marks

3.

A modern office requires a computer to carry out multiple functions. Highlight any four

a) ________________________________________________________________

b) ________________________________________________________________

c) ________________________________________________________________

d) ________________________________________________________________

4 marks

4.

Highlight four reasons why the Mau escarpment is an important Natural resource
a) _______________________________________________________________

b) ________________________________________________________________

c) ________________________________________________________________

d) ________________________________________________________________

4 marks

5.

State four reasons why it is important for a business to keep financial Records:

a) ________________________________________________________________

b) ________________________________________________________________

c) ________________________________________________________________

d) ________________________________________________________________

4 marks

6.

Highlight the purpose of each of the following documents

4 marks

7.

Juma a newly employed teacher has joined Mwalimu Sacco in Bungoma. Outline four benefits of membership to the society

4 marks

8.

Redraft the following balance sheet correcting any mistakes

4 marks

9.

Highlight four measures taken by producers to ensure consumers are protected when using their products {4mks}
a) ________________________________________________________________________
b) __________________________________________________________________________
c) __________________________________________________________________________
d) __________________________________________________________________________

4 marks

10.

State four benefits of a public warehouse to a consumer
a) __________________________________________________________________________
b) __________________________________________________________________________
c) __________________________________________________________________________
d) __________________________________________________________________________

4 marks

11.

State four advantages of using E-mail for communication by a given enterprise
a) ________________________________________________________________________
b) _________________________________________________________________________
c) _________________________________________________________________________
d) __________________________________________________________________________

4 marks

12.

State four advantages of using E-mail for communication by a given enterprise {4mks}
a) ________________________________________________________________________
b) _________________________________________________________________________
c) _________________________________________________________________________
d) __________________________________________________________________________

4 marks

13.

The following information relates to MUSIKO traders for the year ended 31/12/2011

Calculate
i) Mark-up percentage (2mks)

Net profit for the year ended 31/12/2011 (2mks)

4 marks

14.

State four importance of computing national income statistics in a country such as Kenya
a) __________________________________________________________________________
b) ___________________________________________________________________________
c) ___________________________________________________________________________
d) ___________________________________________________________________________

4 marks

15.

The following table shows the demand for sugar in a certain town between the years 2006 and 2010

State four factors that contributed to the trend in demand for sugar between 2008 and 2010 (4mks)
a) _______________________________________________________________________

b) ________________________________________________________________________

.c) ________________________________________________________________________

d) ________________________________________________________________________

4 marks

16.

State four reasons why it may be necessary for the Government to encourage new firms to be located in the rural areas
a) ___________________________________________________________________________
b) ___________________________________________________________________________
c) ___________________________________________________________________________
d) __________________________________________________________________________

4 marks

17.

You are to enter up the purchases journal and the returns outwards journal from the following details

4 marks

18.

Recent data indicates that a large proportion of Kenya’s population comprises of the youth the ages of 10 to 20 years. State four benefits of this to the country

4 marks

19.

State four reasons why a country may find it necessary to control its imports
a) ___________________________________________________________________________
b) ___________________________________________________________________________
c) ___________________________________________________________________________
d) ___________________________________________________________________________

4 marks

20.

Highlight four characteristics of money
a) ___________________________________________________________________________
b) ___________________________________________________________________________
c) ___________________________________________________________________________
d) ___________________________________________________________________________

4 marks

21.

State four challenges being faced by Kenya in achieving its stated goal of vision 2030
a) __________________________________________________________________________
b) __________________________________________________________________________
c) ___________________________________________________________________________
d) __________________________________________________________________________

4 marks

22.

Indicate whether the following types of taxes are direct or indirect

4 marks

23.

State four recent trends adopted by many firms in product promotion
a) ___________________________________________________________________________
b) ___________________________________________________________________________
c) ___________________________________________________________________________
d) ___________________________________________________________________________

4 marks

24.

State four classification of goods and services
a) _________________________________________________________________________
b) _________________________________________________________________________
c) ___________________________________________________________________________
d) __________________________________________________________________________

4 marks

25.

State four challenges that a business without a plan will encounter in its operations
a) ___________________________________________________________________________
b) ___________________________________________________________________________
c) ___________________________________________________________________________
d) ___________________________________________________________________________

4 marks

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