KNEC KCSE Business Studies Paper 1 Question Paper / 2015 KCSE Meru South Form 4 Joint Examination
2015 KCSE Meru South Form 4 Joint Examination
Business Studies Paper 1
1.
State four benefits of public corporations in Kenya.
4 marks
2.
State four advantages of entrepreneurship in an economy.
4 marks
3.
Highlight four factors that can make a company to re-insure.
4 marks
4.
State four economicfactors that determine a consumer’s buying ability.
4 marks
5.
State four ways in which a good filling system may facilitate the operations on office.
4 marks
6.
Highlight four benefits of a free warehouse.
4 marks
7.
State four circumstances where a firm would be located near a source of raw materials.
4 marks
8.
Show the accounts to be debited or credited for the following transactions.
4 marks
9.
Highlight four factors that determine precautionary motive for holding money.
4 marks
10.
State four functions of an entrepreneur as a factor of production.
4 marks
11.
The following information was extracted from the books of Juma Traders as at 31st December 2009,
Shs
Opening stock 2,500
Purchases 46,000
Closing stock 1,500
Mark-up 20%
Required:
Prepare Juma Trader’s Trading Account.
4 marks
12.
Outline four changes in the economy associated with economic development.
4 marks
13.
The diagram below shows a population pyramid for a certain country.
Give four challenges facing this country.
4 marks
14.
Highlight four ways in which individuals consumers can protect themselves.
4 marks
15.
State the source documents for each of the following subsidiary day Books
Subsidiary Books Source Documents
A Sales Journal
B Purchase Sales Journal
C Returns Inwards Journal
D Returns Outward Journal
4 marks
16.
State four problems that are experienced by consumers when firms become monopolies.
4 marks
17.
State four causes of demand pull inflation.
4 marks
18.
Highlight four reasons why the use of rail transport is not well developed in Kenya.
4 marks
19.
Outline four things a business need to know about their competitors.
4 marks
20.
The following balances of assets and liabilities were provided by Pati Traders as at 31st December 2012
Items Shs
Bank overdraft 80,000
Land 200,000
Accrued electricity 50,000
Stock 10,000
Debtors 20,000
The business had drawings amounting to sh 20,000, during the year.
Required:
Prepare balance sheet for Pati Traders.
4 marks
21.
List four factors that may limit the growth of a country’s national income.
4 marks
22.
State four current trends in sales promotion.
4 marks
23.
Outline four factors to be considered when choosing a channel of distribution.
(i) ………………………………………………………………………………………………
(ii) ………………………………………………………………………………………………
(iii) ………………………………………………………………………………………………
(iv) ………………………………………………………………………………………………
4 marks
24.
State whether the tax described below is direct or indirect
a) Stamp duty
b) Wealth tax
c) Excise duty
d) Value Added tax
4 marks
25.
A business enterprise had a cash balance of 50,000 and overdraft of sh 15,000 on 1st June 2007.
The following transactions were conducted.
June 2, A debtor paid sh 40,000 by cheques
June 10, The business bought stock sh 10,000 in cash
June 15, Sold goods sh 30,000 cash.
Required:
Prepare a two column cash book.
4 marks
BUSINESS STUDIES PAPER 1 MARKING SCHEME
2015 KCSE Meru South Form 4 Joint Examination
Business Studies Paper 1
1.
Four benefits of public corporations
• Initial capital provided readily by government
• Enjoys benefits of a monopoly
• avails goods and services at low prices
• operates on economic of scale
• bailed by government in case of financial problems 4 x 1= 4 mks
4 marks
2.
four advantages of entrepreneurship
• creation of employment
• formation of capital
• reduces rural urban migration
• improving infrastructure
• raises standard of living 4 x 1= 4 mks
4 marks
3.
four factors for reinsurance
• where value of property is high
• where risks covered to spread risks
• where is need to spread risks
• where it is the government policy
• where chances of loss are high 4 x 1= 4 mks
4 marks
4.
Four determinants of buying ability
• Level of incomes
• Level of prices
• Level of savings
• Debt patterns
• Loan repayment
• Credit availability 4 x 1= 4 mks
4 marks
6.
Four benefits of a free warehouse
• Good free from tax payment
• Cheap as a custom duty
• Clearance of goods is simple
• Located closer/ convenient to users 4 x 1= 4 mks
4 marks
7.
Four circumstances for locating a firm near source of raw materials
• Where raw materials are perishable
• Where raw materials are bulky
• Where raw materials are fragile
• Where it want to control the source of raw materials
• Where it want to be assured of continuous supply 4 x 1= 4 mks
4 marks
8.
Accounts Debited credited
a) Wages cash
b) drawings cash
c) Furniture ritho/ creditors
d) Electricity bank
4 marks
9.
Four factors for precautionary motive for holding money
• Level of income
• Family status
• Age
• Number of dependents
• Individuals temperament 4 x 1= 4 mks
4 marks
10.
Four functions of an entrepreneur
• Control business
• Owns business
• Starts business
• Makes decision
• Pays all expenses 4 x 1= 4 mks
4 marks
11.
4 marks
12.
Four changes in economy associated with economic development
• Improvement of technology
• Improvement in infrastructure
• Increased use of skilled labour
• Shift from agriculture to industry
4 marks
13.
Four challenges facing the country
• High dependency ratio
• Low labour supply
• Reduced savings and investments
• High unemployment 4 x 1= 4 mks
4 marks
14.
Four ways in which individual consumers protect themselves
• Inspecting goods before buying
• Joining consumer groups
• Shunning exploitative traders
• Reporting cases of exploitation by traders 4 x 1= 4 mks
Four problems associated with monopolies
• High prices of goods and services
• Low quality goods
• Shortages of goods/ hoarding
• Limited variety of goods
• Insensitive to consumer complaints 4 x 1= 4 mks
4 marks
17.
Four causes of demand pull inflation
• Increased govt expenditure
• Credit creation by commercial banks
• Increase in money incomes
• General shortage of goods and services
• Increase in consumer expenditure 4 x 1= 4 mks
4 marks
18.
Four reasons why railway transport is not well developed
• Expensive to construct rail
• Not flexible
• Expensive to buy trains
• Unsuitable for short distances
• Slow 4 x 1= 4 mks
4 marks
19.
Four things a business needs to know about their competitors
• Strengths and weakness
• Prices they charge
• Goods or services planned for future
• Sources of raw materials 4 x 1= 4 mks
4 marks
20.
4 marks
21.
Four factors that limits growth of a country’s national income
• Lack of natural resources
• Low quality of human resources
• Inadequate capital
• Political instability
• Low investment 4 x 1= 4 mks
4 marks
22.
Four current trends in sales promotion
• Use of internet
• Use of promotion convoy
• Use of celebrities
• Use of SMS
• Increased use of personal selling 4 x 1= 4 mks
4 marks
23.
Four factors that determines channel of distribution
• Nature of product
• Nature of market
• Govt policy
• Resources of firm
• Competition 4 x 1= 4 mks
4 marks
24.
Direct or indirect tax
• Direct
• Direct
• Indirect
• Indirect
