KNEC Business Studies Paper 1 Question Paper / 2016 KCSE MOKASA Joint Examination

Outline four ways the economic environment influence business activities
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List four personal attributes of an office staff
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Highlight four limitations of the methods used by the consumer to protect themselves against
exploitation
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Outline four benefits of bonded warehouses to the government
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Distinguish between
a) Derived demand and joint demand
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b) Shift and movement along demand curve
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Highlight four ways that may be used by a monopoly to differentiate a product market
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Outline four ways in which the Central Bank may use to reduce the amount of money in
circulation
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For each of the following transactions, indicate the effect of each transaction on the balance
sheet items as either increase, decrease or no change.

The following transactions relate to the books of Amina traders as at 31^st December 2015.
Gross profit ………………………………………………………………………………… 20,000
Commission allowed …………………………………………………………………… 200
Carriage on sales ………………………………………………………………………… 4,000
Discount received ……………………………………………………………………….. 8,000
Salaries …………………………………………………………………………………….. 6,000
Rent ………………………………………………………………………………………….. 2,000
Discount revived ………………………………………………………………………… 400
Commission received ………………………………………………………………….. 1,500
Interest on bank loan …………………………………………………………………… 500
Prepare Amina’s profit and loss account for the period ended 31^st December, 2015.

Outline the relationship between scarcity, choice and opportunity cost with respect to
satisfaction of human wants.
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List four documents prepared by the buyer in home trade
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The National Transport Safety Authority (NTSA) is a department within the transport sector
in Kenya. Highlight four benefits Kenyans enjoy due to the establishment of NTSA
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Outline four reasons why a firm would prefer to locate near the market of its products
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List three withdrawals in the circular flow of income
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Other than serving as a medium of exchange. Mention four other functions of money
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The following transactions relate to the books of kilimo holdings. Record them in the
relevant ledger accounts.
(i) 1st January 2015, took a loan with ICDC of kshs. 50,000 receiving by cheque.
(ii) 5th January 2015, kelunyo, a debtor paid his account of kshs. 40,000 in cash.
(iii) 10th January 2015, took money from bank, kshs. 50,000 for office use
(iv) 12th January 2015, bought furniture kshs. 35,500 in cash

Give the name of the insurance policy described in the following table.

Currently the government is selling state owned businesses to private investors. Highlight
four benefits of such decisions.
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State four essentials of effective communication
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Outline four advantages of free gifts in product promotion
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List four costs incurred in the distributions of goods
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Highlight four merits of direct tax as a source of revenue to the government (4 marks)
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Identify the level of occupation described by each of the following information

The following information relate to Kamau traders for the month of December 2015.
Dec. 1- sold goods for kshs. 45,000 less 10% cash discount
Dec 5 – Bought goods worth kshs. 4,000 in cash and was allowed a discount of 5%
Dec 7 – a debtor paid kshs. 20,000 in full settlement of a debt of kshs 23,000 by cheque
Dec 15 – Sold goods kshs. 70,000 on credit to jambo traders
Dec 26 – Paid rent kshs. 16,000 by cheque
Required:
Post the above transactions to relevant journals

Unemployment solving has been an agenda to most developing economies. Identify the type
of unemployment being solved below.
(i) Government initiating irrigation projects to ensure continuous production of food
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(ii) Retraining teachers to embrace use of technology in teaching and learning
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(iii) Government and private sectors inventing job advertisement sites for easy access by
job seekers
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(iv) Parliament passing legislation that accommodate the disabled people to acquire jobs
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