KNEC KCSE Business Studies Paper 1 – 2014 Gatundu Mock
2014 Gatundu Mock
Business Studies Paper 1
Answer all questions
1.
Identify four main types of business activities carried out in the society.
4 marks
2.
Highlight any four problems faced by human beings in the process of satisfaction of human want.
4 marks
3.
Identify the type of utility created in the following circumstances.
Activity Utility
a) Carpentry
b) Selling bread to students
c) Ware housing of goods imported
d) Carriage of cargo to the market
4 marks
4.
Outline four disadvantages of maintaining an enclosed office layout.
4 marks
5.
Highlight four features of hypermarkets found in Kenya.
4 marks
6.
Outline four circumstances under which a sole proprietorship form of business may be dissolved.
4 marks
7.
Identify four co-operatives principles that are followed world wide.
4 marks
8.
Abel produces horticultural crops and transports them from Eldoret to Nairobi. Outline four reasons
why he should not use rail to transport the produce.
4 marks
9.
Highlight four barriers to effective communication.
4 marks
10.
Outline the meaning of the following terms as used in insurance.
(i) Cover note
(ii) Policy
(iii) Premium
(iv) Proposal form
4 marks
11.
Outline four steps involved in personal selling.
4 marks
12.
Highlight four factors that may cause a demand curve to shift to the left.
4 marks
13.
Outline four diseconomies of scale that a firm may experience by expanding its operations.
4 marks
14.
Highlight four features of monopolistic competition.
4 marks
15.
List four channels that can be used to import cars from Japan.
4 marks
16.
State four factors that affect the circular flow of income in an economy.
4 marks
17.
Highlight four causes that may lead to unemployment in Kenya.
4 marks
18.
Omosh Traders had the following information extracted from his books of accounts as at 31st Dec
2009.
Details
Kshs
Capital (1/1/09)
6,800,000
Additional capital
1,221,560
Drawing for the year
50,440
Capital (31/12/09)
9,800,000
Determine the profit for the year.
4 marks
19.
The information given below was extracted from books of accounts of Mwebesa Traders as at 30th
June 2006.
DETAILS
Land and building
Motol vehicles
Debtors
Creditors
Bank over drafts
Net profit
Drawings
Capital
Using the information above, prepare Mwebesa Traders Balance Sheet as at 30th June 2006.
4 marks
20.
Outline four limitations of a Trial balances.
4 marks
21.
The following transactions relate to JUMA Traders from the month of March 2013.
2013
March 1:
“ 2:
“ 15:
“ 30:
Details
Started a business with sh 200,000 bank
Withdrew sh 50,000 from the bank for office use.
Paid sh 12,000 by cheque for office equipment repairs
Withdrew sh 10,000 to pay for his son’s hospital bill
Post the above transaction into the relevant ledger accounts.
4 marks
22.
Outline the meaning of the following terms as used in International trade.
(i) F.A.S
(ii) C. I. F
(iii) In bond
(iv) Franco
4 marks
23.
Identify three categories of government expenditure.
3 marks
24.
Differentiate between economic growth and economic development.
4 marks
25.
25. On 1st Janaury 2012 Langat Traders had sh 40,000 in cash and sh 16,000 at bank (Cr)
During the month the following transaction took place.
January 2:
“ 4:
“ 5:
“ 12:
Cash sales sh 11,000
Paid rent in cash sh 4,000
Bought goods on credit from Achieng worth sh 14,000
Sold goods worth sh 60,000 and amount was paid by cheque
Using the information above prepare a two column cash book
