KNEC KCSE Business Studies Paper 1 – 2014 Nakuru District Mock
2014 Nakuru District Mock
Business Studies Paper 1
Answer all questions
1.
State FOUR economic factors that affect a consumer’s buying ability
i)…………………………………………………………………………………………………………………………………………..
ii)………………………………………………………………………………………………………………………………………….
iii)…………………………………………………………………………………………………………………………………………
iv)…………………………………………………………………………………………………………………………………………
4 marks
2.
State FOUR emotional qualities that are essential for a good office staff
i)…………………………………………………………………………………………………………………………………………..
ii)………………………………………………………………………………………………………………………………………….
iii)…………………………………………………………………………………………………………………………………………
iv)…………………………………………………………………………………………………………………………………………
4 marks
3.
State FOUR ways through which the Government regulates the business activities in the country
i)………………………………………………………………………………………………………………………………………….
ii)………………………………………………………………………………………………………………………………………….
iii)…………………………………………………………………………………………………………………………………………
iv)…………………………………………………………………………………………………………………………………………
4 marks
4.
State FOUR problems that a maize farmer without storage facilities would encounter
i)…………………………………………………………………………………………………………………………………………..
ii)………………………………………………………………………………………………………………………………………….
iii)…………………………………………………………………………………………………………………………………………
iv)…………………………………………………………………………………………………………………………………………
4 marks
5.
State FOUR consequences of a shift in the demand curve
i)…………………………………………………………………………………………………………………………………………..
ii)………………………………………………………………………………………………………………………………………….
iii)…………………………………………………………………………………………………………………………………………
iv)…………………………………………………………………………………………………………………………………………
4 marks
6.
Highlight FOUR factors that influence the level of national income in a country
i)…………………………………………………………………………………………………………………………………………..
ii)………………………………………………………………………………………………………………………………………….
iii)…………………………………………………………………………………………………………………………………………
iv)…………………………………………………………………………………………………………………………………………
4 marks
7.
State FOUR types of ledgers
i)…………………………………………………………………………………………………………………………………………..
ii)………………………………………………………………………………………………………………………………………….
iii)…………………………………………………………………………………………………………………………………………
iv)…………………………………………………………………………………………………………………………………………
4 marks
8.
Outline FOUR sources of income collected by the Government
i)…………………………………………………………………………………………………………………………………………..
ii)………………………………………………………………………………………………………………………………………….
iii)…………………………………………………………………………………………………………………………………………
iv)…………………………………………………………………………………………………………………………………………
4 marks
9.
Outline FOUR characteristics of basic human wants
i)…………………………………………………………………………………………………………………………………………..
ii)………………………………………………………………………………………………………………………………………….
iii)…………………………………………………………………………………………………………………………………………
iv)…………………………………………………………………………………………………………………………………………
4 marks
10.
Define the following terms
(i) Capital goods………………………………………………………………………………………………………………
(ii) Non-economic goods………………………………………………………………………………………………….
(iii) Public goods……………………………………………………………………………………………………………
(iv) Durable goods………………………………………………………………………………………………………….
4 marks
11.
State FOUR ways through which a business opportunity may rise in a country
(i)………………………………………………………………………………………………………………………………………….
(ii)………………………………………………………………………………………………………………………………………..
(iii)……………………………………………………………………………………………………………………………………….
(iv)………………………………………………………………………………………………………………………………………..
4 marks
12.
Outline FOUR advantages of an open air market to a consumer.
(i)………………………………………………………………………………………………………………………………………..
(ii)……………………………………………………………………………………………………………………………………….
(iii)………………………………………………………………………………………………………………………………………
(iv)………………………………………………………………………………………………………………………………………..
4 marks
13.
State FOUR benefits of registering a company with the stock exchange market.
(i)………………………………………………………………………………………………………………………………………..
(ii)……………………………………………………………………………………………………………………………………..
(iii)…………………………………………………………………………………………………………………………………….
(iv)…………………………………………………………………………………………………………………………………….
4 marks
14.
Highlight FOUR causes that led to the government control of the transport industry
(i)………………………………………………………………………………………………………………………………………
(ii)………………………………………………………………………………………………………………………………………
(iii)……………………………………………………………………………………………………………………………………..
(iv)………………………………………………………………………………………………………………………………………
4 marks
15.
State FOUR problems caused by advertising to the society.
(i)………………………………………………………………………………………………………………………………………
(ii)…………………………………………………………………………………………………………………………………….
(iii)……………………………………………………………………………………………………………………………………
(iv)……………………………………………………………………………………………………………………………………
4 marks
16.
Name the term referred to in each of the following statements.
Statement
Term
i) A business form that takes an insurance policy
……………………………………………….
ii) A firm that undertakes to compensate another in case of a risk insured arising
……………………………………………….
iii) An event which if it occurs, will result to a financial loss
……………………………………………….
iv) The amount of money payable to a firm that decides to terminate an endowment policy
……………………………………………….
4 marks
17.
State FOUR adverse effects of a firm’s production activities to the environment
i)…………………………………………………………………………………………………………………………………………..
ii)………………………………………………………………………………………………………………………………………….
iii)…………………………………………………………………………………………………………………………………………
iv)…………………………………………………………………………………………………………………………………………
4 marks
18.
With the help of a diagram, illustrate a demand curve for an oligopolistic producer.
4 marks
19.
The following balances were extracted from the books of Nakuru on 31st Dec. 2008.
.
Sales
Purchases
2 year Bank Loan
Stock Dec.
Land
Equipment
Creditors
Debtors
Shs.
Sales 400,000
Purchases 240,000
2 year Bank Loan 300,000
Stock Dec. 70,000
Land 700,000
Equipment 200,000
80,000
250,000
Calculate
(i) Margin (2 marks)
(ii) Capital employed (2 marks)
4 marks
20.
State the effect of the following on the balance sheet totals.
Transaction
Effect
i) Sale of stock with shs.100,000 for cash
shs.140,000/=.
………………………………………………
ii) Sale of old equipment worth shs.200,000
for cash shs.150,000 and shs.50,000 on credit
………………………………………………
iii) Exchange of an old motor vehicle worth
shs.500,000 for a new one worth shs.650,000
on credit.
………………………………………………
iv) Converted a business tractor into a farm
tractor in the name of the son.
………………………………………………
4 marks
21.
The following balances were extracted from the books of Nakuru on 31st Dec. 2008.
Details
Sales
Purchases
2 year Bank Loan
Stock Dec.
Land
Equipment
Creditors
Debtors
State FOUR benefits of using ATM cards in transacting a business deal.
i)………………………………………………………………………………………………………………………………………
(ii)…………………………………………………………………………………………………………………………………….
(iii)……………………………………………………………………………………………………………………………………
(iv)……………………………………………………………………………………………………………………………………
4 marks
23.
State FOUR methods used by the government to restrict international trade
(i)………………………………………………………………………………………………………………………………………
(ii)…………………………………………………………………………………………………………………………………….
(iii)……………………………………………………………………………………………………………………………………
(iv)……………………………………………………………………………………………………………………………………
4 marks
24.
Outline FOUR problems that may arise in a school that has poor communication techniques.
(i)………………………………………………………………………………………………………………………………………
(ii)…………………………………………………………………………………………………………………………………….
(iii)……………………………………………………………………………………………………………………………………
(iv)……………………………………………………………………………………………………………………………………
4 marks
25.
State FOUR benefits of a business to the society
(i)………………………………………………………………………………………………………………………………………
(ii)…………………………………………………………………………………………………………………………………….
(iii)……………………………………………………………………………………………………………………………………
(iv)……………………………………………………………………………………………………………………………………
