KNEC KCSE Business Studies Paper 1 – 2014 KCSE COMA Joint Exam
2014 KCSE COMA Joint Exam
Business Studies Paper 1
Answer ALL the questions
1.
List four different ways in which the government creates an enabling business environment.
4 marks
2.
State four factors that may lead to rightward shift of supply curve.
4 marks
3.
Outline four demerits of modern communication technology.
4 marks
4.
State four types of external economies of scale.
4 marks
5.
Give the factors of production relevant to the following rewards.
Reward Factor of production
(i) Profit
(ii) Commission
(iii) Interest
(iv) Loyalties
4 marks
6.
On 1st April, 2012 Katunge received an invoice for Kshs. 30,000. Terms of payment were:
Trade discount 5% and cash discount 10%. If payment is made within 30 days.
Determine the amount paid if payment was made on 26th April 2012.
4 marks
7.
State four factors that may influence the level of National income.
4 marks
8.
State the type of unemployment described by each of the following statements.
(a) A person has absolutely nothing to do
(b) A worker does not have specific skills and loses the job when the contract between
him and the employer ends
(c ) The number of people employed exceeds those that are required.
(d) Caused by seasonal variations such that during peak period, there is high demand for labour
and during off peak period, the demand for labour goes down.
4 marks
9.
Outline four circumstances in which a supplier may require to be paid through cash with order.
4 marks
10.
Describe the procedure for preparing a balance sheet from the Trial Balance.
4 marks
11.
State four recent trends in product promotion.
4 marks
12.
Enter the following transactions in the relevant ledger accounts.
Jan 1, 2012
Balance b/d: Bank sh. 3,000 (CR)
Cash sh. 2,000
Jan 2, 2012
Received Ksh 49,000 from Pete traders after
deducting 2% cash discount.
Jan 5, 2012
Deposited sh. 20,000 from cash box
to the bank account.
Jan 12, 2012
Paid rent Ksh. 2,000 by cheque. Jan 20,000 Paid Kalikali
Ksh. 10,000 5% cash discount.
4 marks
13.
Mutua had taken a policy with an insurance company. State the circumstances that can
make the insurer fail to compensate him after a loss.
4 marks
14.
High light four objectives of taxation other than raising revenue.
4 marks
15.
Outline the roles played by the stock exchange market.
4 marks
16.
State four characteristics of underdevelopment.
4 marks
17.
In the recent past, mobile phone money transfer has become very popular. Give four
reasons that can account for this trend.
4 marks
18.
State the best type of machine one would use to perform the following tasks.
Function Type of machine
(a) To trim papers to the required sizes
(b) To fold documents, put them inenvelope and seal them
(c ) To make exact copies of a certain original document
(d) To arrange papers in a required order
4 marks
19.
Highlight four benefits a country e.g Kenya gets from joining regional economic blocs
like COMESA.
4 marks
20.
Outline four reasons why a business is important.
4 marks
21.
Indicate the effect of each of the following transactions on the balance shett totals by using
( + ) for increase , ( -) for decrease and (NC) for no change.
(a) Cashed a cheque for personal use _______________________________
(b) Bought premises on credit _____________________________________
(c ) Paid a creditor by cash ________________________________________
(d) Converted a personal car into business vehicle _____________________________
4 marks
22.
List four factors one has to consider when evaluating a business opportunity.
4 marks
23.
List four essential features of a market.
4 marks
24.
Boda boda motorcycles have become common in Kenya today. State the disadvantages of
this mode of transport.
4 marks
25.
Highlight four negative implications in the Kenya economy of the continued war in Somali.
