KCSE Business Studies Paper 1 – Kabarak High School Mock 2015
Mock 2015 – Kabarak High School
Business Studies Paper 1
Define the following terms as used in Business Studies. (4 mks)
- Economics…………………
………………………………………… …………………
…………………………………………
- Entrepreneurship
………………………………………… ……………………………..
…………………………………………
- Opportunity cost………………………………
………………………………………. ..
…………………………………………
- Scale of preference………………
………………………………………… ……………
…………………………………………
4 marks
Highlight four reasons why food is an important basic need.
- …………………………………………
………………………………………… ……. - …………………………………………
………………………………………… …….. - …………………………………………
………………………………………… …….. - …………………………………………
………………………………………… ……..
4 marks
Outline four importance of a warehouse to a consumer.
- …………………………………………
………………………………………… ……. - …………………………………………
………………………………………… …….. - …………………………………………
………………………………………… …….. - …………………………………………
………………………………………… ……..
4 marks
Outline four requirements for one to start a limited liability company as one of the forms of business units.
- …………………………………………
………………………………………… ……. - …………………………………………
………………………………………… …….. - …………………………………………
………………………………………… …….. - …………………………………………
………………………………………… ……..
4 marks
Highlight four factors a firm must take into account when deciding on the product(s) to produce.
- …………………………………………
………………………………………… ……. - …………………………………………
………………………………………… …….. - …………………………………………
………………………………………… …….. - …………………………………………
………………………………………… ……..
4 marks
Highlight four ways in which entrepreneurs can observe ethics in the management of their business.
- …………………………………………
………………………………………… ……. - …………………………………………
………………………………………… …….. - …………………………………………
………………………………………… …….. - …………………………………………
………………………………………… ……..
4 marks
The following information was extracted from the books of Dawida business enterprise for the year ended 30th June 2000.
Capital as at 30th June, 2000 640,000
Capital as at 1st July 1999 420,000
Drawing for the year 180,000
Net profit for the year 140,000
Determine the additional capital during the year.
4 marks
Highlight four ways through which one can convey verbal communication.
- …………………………………………
………………………………………… ……. - …………………………………………
………………………………………… …….. - …………………………………………
………………………………………… …….. - …………………………………………
………………………………………… …….
4 marks
Below is a demand and supply curve.
Highlight the factors that may have led to the above behavior.
- …………………………………………
………………………………………… ……. - …………………………………………
………………………………………… …….. - …………………………………………
………………………………………… …….. - …………………………………………
………………………………………… ……..
4 marks
Outline four circumstances under which a trader can issue a credit note to a customer.
- …………………………………………
………………………………………… ……. - …………………………………………
………………………………………… …….. - …………………………………………
………………………………………… …….. - …………………………………………
………………………………………… ……..
4 marks
Give the difference between:
- Double and co-insurance
…………………………………………
…………………………………………
…………………………………………
- Premiums and surrender value
…………………………………………
…………………………………………
…………………………………………
4 marks
Highlight four advantages of indirect tax.
- …………………………………………
………………………………………… ……. - …………………………………………
………………………………………… …….. - …………………………………………
………………………………………… …….. - …………………………………………
………………………………………… ……..
4 marks
Highlight four ways in which a legal-political environment can impact negatively on entrepreneurs.
- …………………………………………
………………………………………… ……. - …………………………………………
………………………………………… …….. - …………………………………………
………………………………………… …….. - …………………………………………
………………………………………… ……..
4 marks
Highlight four duties of commercial attaches in trade promotion.
- …………………………………………
………………………………………… ……. - …………………………………………
………………………………………… …….. - …………………………………………
………………………………………… …….. - …………………………………………
………………………………………… …….
4 marks
Identify the book of original entry in which the following transactions can be recorded.
4 marks
Outline three leakages in a circular flow of income.
- …………………………………………
………………………………………… ……. - …………………………………………
………………………………………… …….. - …………………………………………
………………………………………… ……..
3 marks
Outline four advantages of using celebrities in product promotion.
- …………………………………………
………………………………………… ……. - …………………………………………
………………………………………… …….. - …………………………………………
………………………………………… …….. - …………………………………………
………………………………………… ……..
4 marks
Distinguish between the following terms of sale as used in international trade.
- Free on rail (FOR)
…………………………………………
…………………………………………
- Free on board (FOB)
…………………………………………
…………………………………………
- In Bond
…………………………………………
…………………………………………
- On nearest offer (ONO)
…………………………………………
…………………………………………
4 marks
Kenya is planning to extend her pipeline transport. State four advantages of pipeline transport to the country.
- …………………………………………
………………………………………… ……. - …………………………………………
………………………………………… …….. - …………………………………………
………………………………………… …….. - …………………………………………
………………………………………… …….
4 marks
Outline four emerging issues in office management.
- …………………………………………
………………………………………… ……. - …………………………………………
………………………………………… …….. - …………………………………………
………………………………………… …….. - …………………………………………
………………………………………… ……..
4 marks
Kiburu carried out the following transactions during the month of February 2015.
February 1: Started business by depositing sh 220,000 in business bank account
7: Bought goods on credit from Miyogo Sh 72,000
8: Paid rent by cheque Sh 20,000
16: Sold goods to Kamula on credit Sh 50,000.
Required: Post the above transaction in the relevant ledge accounts.
4 marks
Highlight four features of perfect competition market.
- …………………………………………
………………………………………… ……. - …………………………………………
………………………………………… …….. - …………………………………………
………………………………………… …….. - …………………………………………
………………………………………… ……..
4 marks
Mention whether the following transactions have an increase, decrease or no effect on the assts, capital and liabilities of a business.
4 marks
The following information relates to Liston traders for the period ended 31st March 2012.
Opening stock Sh 40,000
Sales Sh 100,000
Closing stock 25% on cost of sales
Mark-up 25%
By clearly calculating gross profit and purchases, prepare a trading account
- Gross profit (1 mk)
- Purchases for the year (2 mks)
3 marks
