KCSE Business Studies Paper 1 – 2014 EKSIKA Joint Evaluation Test
2014 EKSIKA Joint Evaluation Test
Business Studies Paper 1
Identify four elements of internal business environment that may positively influence
the performance of business.
4 marks
Highlight four features of oligopoly market structures.
4 marks
Explain the meaning of the following terms as used in insurance.
(a) Speculative risk
(b) Surrender value
4 marks
The following features relate to warehousing. Indicate the most suitable type of
warehousing described.
i. Mostly situated entry points and are available at a fee………………………………………………….
ii. Warehouse designed to suit ones particular needs……………………………………………………….
iii. Used to store locally produced goods until excise duty is paid……………………………………….
iv. Warehouse used to store non dutiable goods originating from within or outside the
Country……………………………………………………………………………………………………………………
4 marks
State any four types of advertising
4 marks
Given below is a table showing the market demand for a commodity from 1996 to 2000
Year | Quantity demanded |
1996 | 100,000 |
1997 | 120,000 |
1998 | 200,000 |
1999 | 250,000 |
2000 | 270,000 |
Outline four factors that have contributed to the trend in the demand from 1996.
4 marks
Give four errors that may cause a trial balance not to balance.
4 marks
State four internal diseconomies of scale in a firm.
4 marks
The following is a table of activities. Name the utility that is created by each activity.
Activity | Utility |
i. Making chairs from timber |
|
ii. Shopkeepers selling sugar to consumers |
|
iii. Pharmacist delivering milk to a hospital |
|
iv. Delivering milk to consumers early in the morning |
|
4 marks
Highlight four ways in which partners may be classified giving an example in each case.
4 marks
For each of the following cases, name the motive for holding money.
Case | Motive |
i. To meet daily transport expenses | _______________________ |
ii. To meet any unforeseen circumstances | _______________________ |
iii. To pay for daily food requirements | _______________________ |
iv. To take advantage of anticipated future fall in prices | _______________________ |
4 marks
State whether each of the following transactions will increase, decrease or have no effect on the business capital.
Transaction | Effect on capital |
i) Bought stock on credit |
|
ii) Owner withdrew some goods for personal use |
|
iii) Business made profit during the year |
|
iv) Paid wages by cheque |
|
4 marks
The following information relates to Mwangi traders for the month of August 2008
Opening stock Sh 40,000
Purchases Sh 46,000
Carriage inwards Sh 2,100
Closing stock Sh 22,500
Goods are usually sold at a mark up of 20%.
Required : Prepare a trading account for the month ended 31st August 2008.
5 marks
Outline four emerging trends in office management.
4 marks
State four circumstances under which lowering prices will not lead to an increase in the quantity demanded of a product.
4 marks
Highlight four principles of co-operative societies.
4 marks
State four ways in which the government may control monopoly power.
4 marks
State four factors that determine the size of a country’s national income.
4 marks
Highlight four circumstances under which cash payment would be preferred to cheque payment.
4 marks
Outline four reasons why a debit note may be sent to a buyer.
4 marks
Outline four ledger accounts used for recording stock.
4 marks
Classify each of the following accounts as real, nominal or personal.
Account | Classification |
i) Dividends |
|
ii) Kariuki a debtor |
|
iii) Motor vehicle |
|
iv) Motor vehicle expenses |
|
v) Provision for depreciation on motor vehicle |
|
vi) Capital |
|
vii) Profit and loss |
|
viii) Premises |
|
4 marks
Highlight four ways in which production activities may negatively impact on community health.
4 marks
Highlight four circumstances under which a proforma invoice may be used.
4 marks
State three means of payment used in home trade.
3 marks
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