KNEC KCSE Business Studies Paper 1 – 2014 Cross Country Mock
2014 Cross Country Mock
Business Studies Paper 1
Answer all questions.
1.
Outline four duties of an office manager (4 mks)
Highlight four benefits an individual gets from buying shares in a company such as
safaricom (4mks)
8 marks
2.
In the table below classify the accounts given as personal, nominal, real or private
Account
Account type
Machinery
…………………………………..
Kamau (a creditor)
…………………………………..
Electricity bill
…………………………………..
Rent income
…………………………………..
4 marks
3.
Highlight four ways in which commercial attaches promote trade (4 mks)
(a)Highlight four measures the government would undertake to provide investors with
enabling business environment (4 mks)
(b) Identify four documents used in the delivery process in home trade (4 mks)
12 marks
4.
Outline four conditions which favour the use of personal selling as a strategy of product
promotion.
4 marks
5.
The supply schedule for Mr. Cheruiyot is as shown below
Price sh
Quantity
5
50
7
159
(a) Calculate the price elasticity of supply (2 mks)
(b) Interpret the meaning for this elasticity of supply (1 mk)
3 marks
6.
The following information relates to Matui traders for the month of July 2003.
Opening stock
ksh.40, 000
Purchases
ksh 90, 000
Sales
ksh.150, 000
Margin
20%
Required: Prepare a trading account of Matui traders for the month ended 31st July 2003.
4 marks
7.
A farmer in Eldoret North District wishes to hire transport for his tomatoes to the market.
Outline four essential factors that he should consider in choosing the means of transport.
4 marks
8.
Explain four ways in which warehousing facilitates trade.
4 marks
9.
Distinguish between the following insurance policies; Whole life and endowment policy
Whole life
Endowment policy
………………………………………….
………………………………………….
………………………………………….
………………………………………….
………………………………………….
………………………………………….
………………………………………….
………………………………………….
4 marks
10.
State four positive implications of a rapidly growing population.
4 marks
11.
(a) What is a consumer price index? (1 mk)
(b) Outline three factors influencing price elasticity of demand. (3mks)
4 marks
12.
State four characteristics of a goof filing system.
4 marks
13.
(a) Define public debt (1 mk)
(b) Distinguish between debt weight and productive debt (3 mks)
4 marks
14.
On 1st of October 2009 Sambu bought goods on credit quoted at ksh.240, 000. Terms of sales
were 20% trade discount, and 10% cash discount. if payment was made on 29th October 2009,
calculate the amount paid if payment was made on 26th October 2009.
4 marks
15.
The following information was obtained from the books of Kimenju Traders who do not keep
complete records.
Date
11/1/2005
31/12/2005
Stock
sh. 50, 000
sh.40, 000
Trade debtors
sh. 21, 000
sh.48, 000
Bank A/C
8, 400 (CR)
sh.243, 100
Trade creditors
sh. 28, 000
sh.53, 000
Premier
sh. 240, 000
sh.240, 000
cash in hand
sh, 15, 000
sh.38, 000
Required: Prepare a statement of affairs as at 31/12/2005.
4 marks
16.
State four advantages of using credit card.
4 marks
17.
State four differences between monopolistic market and an oligopolistic market.
4 marks
18.
The diagram below represents the circular flow of income in a two – sector economy
State what is represented by the arrows A, B, C, D .
4 marks
19.
Highlight four circumstances under which a firm could be located near the market for its
products.
4 marks
20.
For each of the following source documents name the relevant day book.
Source document
Daybook
Invoice issued
Credit note received
Cheque received
Invoice received
