KNEC KCSE Business Studies Paper 1 – 2014 Nakuru District Mock
2014 Nakuru District Mock
Business Studies Paper 1
State FOUR economic factors that affect a consumer’s buying ability
i)…………………………………………………………………………………………………………………………………………..
ii)………………………………………………………………………………………………………………………………………….
iii)…………………………………………………………………………………………………………………………………………
iv)…………………………………………………………………………………………………………………………………………
4 marks
State FOUR emotional qualities that are essential for a good office staff
i)…………………………………………………………………………………………………………………………………………..
ii)………………………………………………………………………………………………………………………………………….
iii)…………………………………………………………………………………………………………………………………………
iv)…………………………………………………………………………………………………………………………………………
4 marks
State FOUR ways through which the Government regulates the business activities in the country
i)………………………………………………………………………………………………………………………………………….
ii)………………………………………………………………………………………………………………………………………….
iii)…………………………………………………………………………………………………………………………………………
iv)…………………………………………………………………………………………………………………………………………
4 marks
State FOUR problems that a maize farmer without storage facilities would encounter
i)…………………………………………………………………………………………………………………………………………..
ii)………………………………………………………………………………………………………………………………………….
iii)…………………………………………………………………………………………………………………………………………
iv)…………………………………………………………………………………………………………………………………………
4 marks
State FOUR consequences of a shift in the demand curve
i)…………………………………………………………………………………………………………………………………………..
ii)………………………………………………………………………………………………………………………………………….
iii)…………………………………………………………………………………………………………………………………………
iv)…………………………………………………………………………………………………………………………………………
4 marks
Highlight FOUR factors that influence the level of national income in a country
i)…………………………………………………………………………………………………………………………………………..
ii)………………………………………………………………………………………………………………………………………….
iii)…………………………………………………………………………………………………………………………………………
iv)…………………………………………………………………………………………………………………………………………
4 marks
State FOUR types of ledgers
i)…………………………………………………………………………………………………………………………………………..
ii)………………………………………………………………………………………………………………………………………….
iii)…………………………………………………………………………………………………………………………………………
iv)…………………………………………………………………………………………………………………………………………
4 marks
Outline FOUR sources of income collected by the Government
i)…………………………………………………………………………………………………………………………………………..
ii)………………………………………………………………………………………………………………………………………….
iii)…………………………………………………………………………………………………………………………………………
iv)…………………………………………………………………………………………………………………………………………
4 marks
Outline FOUR characteristics of basic human wants
i)…………………………………………………………………………………………………………………………………………..
ii)………………………………………………………………………………………………………………………………………….
iii)…………………………………………………………………………………………………………………………………………
iv)…………………………………………………………………………………………………………………………………………
4 marks
Define the following terms
(i) Capital goods………………………………………………………………………………………………………………
(ii) Non-economic goods………………………………………………………………………………………………….
(iii) Public goods……………………………………………………………………………………………………………
(iv) Durable goods………………………………………………………………………………………………………….
4 marks
State FOUR ways through which a business opportunity may rise in a country
(i)………………………………………………………………………………………………………………………………………….
(ii)………………………………………………………………………………………………………………………………………..
(iii)……………………………………………………………………………………………………………………………………….
(iv)………………………………………………………………………………………………………………………………………..
4 marks
Outline FOUR advantages of an open air market to a consumer.
(i)………………………………………………………………………………………………………………………………………..
(ii)……………………………………………………………………………………………………………………………………….
(iii)………………………………………………………………………………………………………………………………………
(iv)………………………………………………………………………………………………………………………………………..
4 marks
State FOUR benefits of registering a company with the stock exchange market.
(i)………………………………………………………………………………………………………………………………………..
(ii)……………………………………………………………………………………………………………………………………..
(iii)…………………………………………………………………………………………………………………………………….
(iv)…………………………………………………………………………………………………………………………………….
4 marks
Highlight FOUR causes that led to the government control of the transport industry
(i)………………………………………………………………………………………………………………………………………
(ii)………………………………………………………………………………………………………………………………………
(iii)……………………………………………………………………………………………………………………………………..
(iv)………………………………………………………………………………………………………………………………………
4 marks
State FOUR problems caused by advertising to the society.
(i)………………………………………………………………………………………………………………………………………
(ii)…………………………………………………………………………………………………………………………………….
(iii)……………………………………………………………………………………………………………………………………
(iv)……………………………………………………………………………………………………………………………………
4 marks
Name the term referred to in each of the following statements.
Statement | Term |
i) A business form that takes an insurance policy | ………………………………………………. |
ii) A firm that undertakes to compensate another in case of a risk insured arising | ………………………………………………. |
iii) An event which if it occurs, will result to a financial loss | ………………………………………………. |
iv) The amount of money payable to a firm that decides to terminate an endowment policy | ………………………………………………. |
4 marks
State FOUR adverse effects of a firm’s production activities to the environment
i)…………………………………………………………………………………………………………………………………………..
ii)………………………………………………………………………………………………………………………………………….
iii)…………………………………………………………………………………………………………………………………………
iv)…………………………………………………………………………………………………………………………………………
4 marks
With the help of a diagram, illustrate a demand curve for an oligopolistic producer.
4 marks
The following balances were extracted from the books of Nakuru on 31st Dec. 2008.
. Sales Purchases 2 year Bank Loan Stock Dec. Land Equipment Creditors Debtors |
Shs. Sales 400,000 Purchases 240,000 2 year Bank Loan 300,000 Stock Dec. 70,000 Land 700,000 Equipment 200,000 80,000 250,000 |
Calculate
(i) Margin (2 marks)
(ii) Capital employed (2 marks)
4 marks
State the effect of the following on the balance sheet totals.
Transaction | Effect |
i) Sale of stock with shs.100,000 for cash shs.140,000/=. |
……………………………………………… |
ii) Sale of old equipment worth shs.200,000 for cash shs.150,000 and shs.50,000 on credit |
……………………………………………… |
iii) Exchange of an old motor vehicle worth shs.500,000 for a new one worth shs.650,000 on credit. |
……………………………………………… |
iv) Converted a business tractor into a farm tractor in the name of the son. |
……………………………………………… |
4 marks
The following balances were extracted from the books of Nakuru on 31st Dec. 2008.
Details Sales Purchases 2 year Bank Loan Stock Dec. Land Equipment Creditors Debtors |
Shs. 400,000 240,000 300,000 70,000 700,000 200,000 80,000 250,000 |
Calculate
(i) Margin (2 marks)
(ii) Capital employed (2 marks)
4 marks
State FOUR benefits of using ATM cards in transacting a business deal.
i)………………………………………………………………………………………………………………………………………
(ii)…………………………………………………………………………………………………………………………………….
(iii)……………………………………………………………………………………………………………………………………
(iv)……………………………………………………………………………………………………………………………………
4 marks
State FOUR methods used by the government to restrict international trade
(i)………………………………………………………………………………………………………………………………………
(ii)…………………………………………………………………………………………………………………………………….
(iii)……………………………………………………………………………………………………………………………………
(iv)……………………………………………………………………………………………………………………………………
4 marks
Outline FOUR problems that may arise in a school that has poor communication techniques.
(i)………………………………………………………………………………………………………………………………………
(ii)…………………………………………………………………………………………………………………………………….
(iii)……………………………………………………………………………………………………………………………………
(iv)……………………………………………………………………………………………………………………………………
4 marks
State FOUR benefits of a business to the society
(i)………………………………………………………………………………………………………………………………………
(ii)…………………………………………………………………………………………………………………………………….
(iii)……………………………………………………………………………………………………………………………………
(iv)……………………………………………………………………………………………………………………………………
4 marks