Business Studies Paper 1 Question Paper
KCSE CLUSTER TESTS 27
Business Studies Paper 1
Outline four challenges associated with the satisfaction of human wants.
a)_______________________________________________________________________________
________________________________________________________________________________
b) ______________________________________________________________________________
________________________________________________________________________________
c) ______________________________________________________________________________
________________________________________________________________________________
d) ______________________________________________________________________________
________________________________________________________________________________
4 marks
Highlight four ways in which manufacturers can enhance consumer protection.
a)_______________________________________________________________________________
________________________________________________________________________________
b) ______________________________________________________________________________
________________________________________________________________________________
c) ______________________________________________________________________________
________________________________________________________________________________
d) ______________________________________________________________________________
________________________________________________________________________________
4 marks
The balances below relates to Eureka Traders for the year ended 31st December 2010.
Shs.
Capital ?
2 year Bank loan 230,020
Creditors 95,200
Fixed assets 480,000
Current assets 145,220
Determine the following
i.) Working capital (2mks)
ii.)Capital employed (2mks)
4 marks
Classify the following accounts as either real or nominal.
4 marks
Highlight four measures that the government would undertake to provide investors with an enabling business
environment.
a)_______________________________________________________________________________
________________________________________________________________________________
b) ______________________________________________________________________________
________________________________________________________________________________
c) ______________________________________________________________________________
________________________________________________________________________________
d) ______________________________________________________________________________
________________________________________________________________________________
4 marks
Outline four circumstances under which downwards communication would be appropriate in an
organization.
a)_______________________________________________________________________________
________________________________________________________________________________
b) ______________________________________________________________________________
________________________________________________________________________________
c) ______________________________________________________________________________
________________________________________________________________________________
d) ______________________________________________________________________________
4 marks
State four limitations of using national income statistics to compare the standards of living in different
countries.
a)_______________________________________________________________________________
________________________________________________________________________________
b) ______________________________________________________________________________
________________________________________________________________________________
c) ______________________________________________________________________________
________________________________________________________________________________
d) ______________________________________________________________________________
________________________________________________________________________________
4 marks
State four merits of using indirect taxes to raise government revenue.
a)_______________________________________________________________________________
________________________________________________________________________________
b) ______________________________________________________________________________
________________________________________________________________________________
c) ______________________________________________________________________________
________________________________________________________________________________
d) ______________________________________________________________________________
________________________________________________________________________________
4 marks
State four components of a business plan.
a)_______________________________________________________________________________
________________________________________________________________________________
b) ______________________________________________________________________________
________________________________________________________________________________
c) ______________________________________________________________________________
________________________________________________________________________________
d) ______________________________________________________________________________
4 marks
Outline four demerits of using pipeline to transport petroleum products.
a)_______________________________________________________________________________
________________________________________________________________________________
b) ______________________________________________________________________________
________________________________________________________________________________
c) ______________________________________________________________________________
________________________________________________________________________________
d) ______________________________________________________________________________
________________________________________________________________________________
4 marks
Highlight four circumstances which may make personal selling appropriate as a way of product
Promotion.
a)_______________________________________________________________________________
________________________________________________________________________________
b) ______________________________________________________________________________
________________________________________________________________________________
c) ______________________________________________________________________________
________________________________________________________________________________
d) ______________________________________________________________________________
________________________________________________________________________________
4 marks
Maneno traders had the following balances as at 6thJanuary 2012.
Land & building 150,000
Cash in hand 25,500
Creditors 15,000
Bank overdraft 30,000
Purchases 18,000
Sales 30,000
Returns inwards 5,000
Required; A trial balance as at 6thJanuary 2012
4 marks
Outline four monetary methods that the government can use to control inflation.
a)_______________________________________________________________________________
________________________________________________________________________________
b) ______________________________________________________________________________
________________________________________________________________________________
c) ______________________________________________________________________________
________________________________________________________________________________
d) ______________________________________________________________________________
________________________________________________________________________________
4 marks
Name the office machines used to perform the following functions. (4mks)
4 marks
Outline four distinctions between monopolistic competition and oligopoly. (4mks)
4 marks
Highlight four disadvantages of producer co-operative societies. (4mks)
a) ........................................................................................................................................................................................................................................................................
b) ........................................................................................................................................................................................................................................................................
c) ........................................................................................................................................................................................................................................................................
d) ........................................................................................................................................................................................................................................................................
4 marks
State four objectives of export processing zones in Kenya. (4mks)
a) ...................................................................................................................................................................................................
b) .................................................................................................................................................................................................
c).......................................................................................................................................................................................................
d)..........................................................................................................................................................................................................
4 marks
Outline four advantages of overpopulation in Kenya. (4mks)
a) ..........................................................................................................
b) ............................................................................................................
c) ............................................................................................................
d) ............................................................................................................
4 marks
Highlight four benefits of a bonded warehouse to the government. (4mks)
a) ...................................................................................................................................................................................................................................................................
b) ...................................................................................................................................................................................................................................................................
c) ...................................................................................................................................................................................................................................................................
d) ...................................................................................................................................................................................................................................................................
4 marks
State four features of a departmental store. (4mks)
a) .........................................................................................................................................................................................................................................................................
b) .........................................................................................................................................................................................................................................................................
c) .........................................................................................................................................................................................................................................................................
d) .........................................................................................................................................................................................................................................................................
4 marks
Outline four conditions which are necessary for a successful development plan. (4mks)
a) ........................................................................................................................................................................................................................................................................
b)........................................................................................................................................................................................................................................................................
c)........................................................................................................................................................................................................................................................................
d)........................................................................................................................................................................................................................................................................
4 marks
State four purposes of a three column cash book. (4mks)
a) ..............................................................................................................................................................
b) ................................................................................................................................................................
c) ................................................................................................................................................................
d) ...............................................................................................................................................................
4 marks
Highlight four features of general insurance. (4mks)
a) .........................................................................................................................................................................................................................................................
b)...........................................................................................................................................................................................................................................................
c)............................................................................................................................................................................................................................................................
d)...........................................................................................................................................................................................................................................................
4 marks