KNEC KCSE Business Studies Paper 1 Question Paper / 2015 KCSE Starehe Boys Centre Mock
BUSINESS STUDIES PAPER 1 QUESTION PAPER
2015 KCSE Starehe Boys Centre Mock
Business Studies Paper 1
ALL answers must be written in the spaces provided in this booklet.
1.
Highlight four reasons for which business should observe ethical practice.
4 marks
2.
Outline four positive implications of a youthful population to an economy.
4 marks
3.
Highlight four circumstances in which a cheque may be used as a means of payment.
4 marks
4.
Outline four features of liners is sea transport.
4 marks
5.
Mango Traders had the following ledger account balances as at 31st December 2014.
Ksh.
Sales 100,000
Purchases 170,000
Returns inwards 10,000
Returns outwards 20,000
Salaries 30,000
Capital 40,000
Bank loan 50,000
Prepare the business trial balance as at 31 December 2014.
5 marks
6.
Of late the government has privatized many public corporations. Outline any four reasons that may have led to this.
4 marks
7.
Outline four functions of the International Bank for Reconstruction and Development.
4 marks
8.
The following balances were extracted from the books of Ayuma Enterprises on 31/12/2014.
Sh.
Gross profit 120,000
Rent income 100,000
Dividend received 200,000
Salaries 300,000
Carriage outwards 10,300
Discount allowed 21,000
Prepare Ayuma Enterprises profit and loss account for the year ended 31/12/2014.
4 marks
9.
The diagram below represents the demand of a commodity X in the market.
Highlight factors that may cause a change from D0 D0 to D1 D1
4 marks
10.
Highlight four reasons why a small scale business may succeed despite competition it faces from
large firms.
4 marks
11.
State four advantages of using credit cards as a means of payment.
4 marks
12.
Highlight four circumstances under which a seller would require a buyer to pay cash with order.
(C.W.O)
4 marks
13.
Identify four ways through which businesses give after sales services to their customers.
4 marks
14.
Outline four differences between a cheque and Bills of exchange.
4 marks
15.
List four levels of inflation.
4 marks
16.
Outline four benefits of export processing zones to a country.
4 marks
17.
Highlight four monetary policy measures used by the central bank to decrease money supply in
the economy.
4 marks
18.
Highlight four demerits of letters as a means of communication.
4 marks
19.
Outline four features of a public limited company.
4 marks
20.
On 1st January 2015 the cash book of Moja Traders showed cash and bank balances of Sh. 10,000 and sh. 20,000 (cr) respectively. Transactions that took place during the month were:-
January 2 Cash sales sh. 12,000.
January 10 Paid sh. 2,000 cash in respect of wages.
January 15 Received a cheque for sh. 35,000 from a debtor.
January 25 Withdrew sh. 5,000 from bank for office use.
January 29 Paid sh. 3,000 cash to a creditor.
Prepare a two column cash book for the month.
5 marks
21.
An organization wants to increase the productivity of its workers. Highlight any four cause of action it can take in order to achieve this.
4 marks
22.
Outline any four sources of monopoly power for a firm.
4 marks
23.
Differentiate between ordinary shares and preference shares of a company.
4 marks
24.
Highlight any four characteristics of an under developed country.
4 marks
25.
Outline the meaning of the following as used in International Trade.
