KNEC KCSE Business Studies Paper 1 Question Paper / 2015 KCSE Kajiado County Joint Examination
2015 KCSE Kajiado County Joint Examination
Business Studies Paper 1
1.
Highlight four factors to consider when choosing a means of transport.
4 marks
2.
Outline four difficulties that consumers may face in the satisfaction of human wants.
4 marks
3.
From the list of activities given in the table below. State the level of production they relate to.
Activity Level of production
i) Dress making
ii) Selling goods in the market
iii) Milking a cow
iv) Cutting down trees
4 marks
4.
Highlight four unethical practices in product promotion.
4 marks
5.
State four uses of an advice note in business transactions.
4 marks
6.
Outline four advantages of a short distribution channel of goods to a buyer.
4 marks
7.
The information given below represents a demand schedule for bread in a week
Price (sh) Quantity demanded(loaves)
20 20
30 15
40 10
50 5
Required to plot the information on a graph.
4 marks
8.
Outline four challenges facing consumer associations in Kenya.
4 marks
9.
Highlight four external business environments that may lead to the success of a business.
4 marks
10.
The following information relates to the business of Nashipae
2011
Feb1st : Cash in hand sh. 23,500 and cash at bank sh. 11,500
Feb 2nd :Bought goods worth sh.8,000 in cash
Feb 4th : Cash sales amounting to sh. 6,900
Feb 5th : Deposited sh. 2,500 into bank from cash till.
Feb 7th :Withdrew sh. 3,000 from bank for family use
Feb 10th : Received a cheque of sh 6,000 from Siokino, a debtor
Required:
Prepare a two column cash book for Nashipae and balance it off.
5 marks
11.
Highlight four features of monopoly market structure.
5 marks
12.
Outline four factors to consider when evaluating a business opportunity.
4 marks
13.
Give four differences between a public warehouse and private warehouse.
4 marks
14.
Highlight four guidelines that govern the affairs of cooperative societies.
4 marks
15.
Identify the insurance terms described below.
Description Term
i) To transfer ownership of life
policy to another person
ii) Insuring same subject for the
same risk with more than one
insurance company
iii) Regular payments for insurance
cover
iv) Refund received on cancellation
of life policy before maturity.
4 marks
16.
The diagram below depicts injections into and leakages from the national income.
State what is represented by the following letters
4 marks
17.
The following information was extracted from the books of Esidai wholesalers on 31st December 2012
Opening stock sh. 640,000
Closing stock sh. 800,000
Rate of stock turnover 3 times
Mark up 20%
Determine the gross profit.
4 marks
18.
Outline four characteristics of money.
4 marks
19.
State the type of unemployment relating to each of the following descriptions. (4 marks)
Description Type
i) Arises when people are physically
challenged
ii) Arises out of mismatch between
the skills possessed by potential
employees and the job
opportunities available
iii) Caused by alternating trade
patterns occurring at similar times
over the years
iv) Arises when there is change in
methods of production
4 marks
20.
Outline four circumstances under which a firm would locate near a pool of labour.
4 marks
21.
Identify the type of error described below.
Description Type
i) Credit purchase of sh.78,000 was recorded as sh.
87,000 in both purchases and creditors accounts.
ii) Sale of goods on credit to Ntari sh. 18,000 was
debited in Ntati’s account
iii) Payment of salary sh.13,500 was debtited in the cash
account and credited in the salary expense account.
iv) Repair of motor vehicle sh. 5000 was recorded in the
motor vehicle account.
4 marks
22.
State four reasons why the government imposes taxes.
4 marks
23.
Highlight four causes of ‘cost push’ inflation.
4 marks
24.
Give four measures that an organization may put in place to improve office etiquette among its employees.
4 marks
25.
State four objectives that the government aims to achieve by carrying out development planning.
4 marks
BUSINESS STUDIES PAPER 1 MARKING SCHEME
2015 KCSE Kajiado County Joint Examination
Business Studies Paper 1
1.
Factors influencing choice of means of transport.
− Cost of means
− Distance to be covered.
− Nature / Type of goods to be transported
− Value of goods to be transported
− Terminals
− Urgency of the goods
− Speed of the means. (1x4pts=4 marks)
4 marks
2.
Difficulties consumers face in the satisfaction of human wants.
− Resources being scarce.
− Human wants are too many/numerous/endless/ unlimited.
− Human wants are unsatiable.
− Human wants keep on changing with time/age/gender.
− Human wants keep on reoccurring.
− Some wants are habit forming.
− Are competitive ( 1markx4 points=4 marks)
4 marks
3.
(1 markx4pts=4 marks)
4 marks
4.
Unethical practices in product promotion
− False pricing
− Not disclosing the side effects of the product
− Giving false/misleading information about products
− Offending consumers
− Exploiting vulnerable group e.g. children.
− Portraying rival business negatively. (1×4=4 marks)
4 marks
5.
Uses of an advice note in business
− Inform buyer (s) that goods have been dispatched.
− To alert the buyer to prepare to receive the goods.
− To alert the buyer to start making arrangements for payment for goods. (1 mark×4 pts=4 marks)
4 marks
6.
Advantages of using a short channel of distribution
− Buyer gets goods at low price(s)
− Gets goods while fresh/good quality.
− Direct/personal contact with the producer.
− Can get goods of his/her choice/specifications.
− Gets immediate feedback/response. (4 points×1 mark=4 marks)
4 marks
7.
Deriving a demand curve from the given demand schedule.
½ ×8 ticks=4 marks
4 marks
8.
Challenges facing consumers association in Kenya
− Inadequate finances/funds.
− Consumers are unaware of existence of such associations.
− Lack of consumer education /are not aware of their rights.
− Consumer apathy/unwilling to join associations.
− Unqualified personnel. 4 points ×1 mark=4 marks
4 marks
9.
External business environments that may lead to business success
− Political instability.
− Use of modern technology.
− Favourable government policy e.g. low taxation/availability of subsidies.
− High population.
− Favorable economic environment e.g. low interest rates/low inflation rates/high income. (1 mark×4=4 marks)
4 marks
10.
5 marks
11.
Features of monopoly market structure
− One/single seller/producer/supplier
− Restrictions /barriers to entry into market.
− No close substitutes for the product
− Buyers have limited knowledge of market conditions. points×1=4 marks
5 marks
12.
Factors to consider when evaluating business opportunity.
− Availability of raw materials.
− Availability of market.
− Level of competition
− Government policy
− cultural values of people/community 4×1 mark=4 marks
4 marks
13.
Differences between public and private warehouse.
Public warehouse
− Are for hire to members of public
− Are large in size
− Located at entry point
− Insurance is mandatory
− Operated as an independent business
Private warehouse
− For exclusive use of owner
− Small in size
− Located near the premises of owner
− Insurance is optional
− Operated as a department of main business
4 marks
14.
Principles (guidelines) that govern the affairs of co-operative societies
− Democratic administration/management
− Open and voluntary membership.
− Education to member
− Dividends/surplus repayment
− Cooperation with other cooperatives
− Service motto. (4x1mark=4 marks)
4 marks
15.
Identify insurance term described.
− Assigning/assignment
− Double insurance
− Premiums
− Surrender value
4 marks
16.
Injections leakages
a) Exports
b) Government expenditure
c) Investments
d) Imports
e) Taxes
f) Savings (6ticksx1/2=3 marks)
4 marks
17.
4 marks
18.
Characteristics of money
− General acceptability
− Scarcity
− Portability
− Divisibility
− Durability (4pts x 1mk=4 marks)
4 marks
19.
Stating type of unemployment described.
− Residual unemployment
− Structural unemployment
− Cyclical unemployment
− Technological unemployment. (4point x1=4 marks)
4 marks
20.
Circumstances under which a firm would locate near a pool of labour.
− Where a firm is labour-intensive
− If a firm desires to save on wage bill.
− If a firm requires (highly) skilled personnel
− Where there is competition/scramble for labour. (4 pointsx1=4 marks)
4 marks
21.
Identifying type of errors being described
− Error of original entry.
− Error of commission
− Complete reversal of entry.
− Error of principle.
4 marks
22.
Reasons for imposition of taxes by the government.
− To raise revenue
− To redistribute incomes
− To discourage consumption of harmful goods.
− To correct a deficit in the balance of payment
− To protect infant industries
− To discourage importation of certain products. (4 pintsx1=4 marks)
4 marks
23.
Causes of cost-push inflation.
− High salaries/wage bills.
− High costs of raw materials/inputs
− Increase in indirect taxes
− Withdrawal of government subsidies
− High cost of importing fuel.
4 marks
24.
Measures that an organization may put in place to improve office etiquette.
− Enhancing team work
− Training them on office etiquette
− Providing conducive working conditions
− Appreciating outstanding/hard work employees.
4 marks
25.
Objectives of carrying out development planning.
− To eradicate illiteracy
− To create employment opportunities.
− To improve on health facilities/eradicate diseases.
− To ensure food security
− To conserve the environment. (4points x1=4 marks)
