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KNEC KCSE Business Studies Paper 1 Question Paper / 2015 KCSE Starehe Boys Centre Mock

KNEC KCSE Business Studies Paper 1 Question Paper / 2015 KCSE Starehe Boys Centre Mock

2015 KCSE Starehe Boys Centre Mock

Business Studies Paper 1

ALL answers must be written in the spaces provided in this booklet.

Highlight four reasons for which business should observe ethical practice.

 4 marks


Outline four positive implications of a youthful population to an economy.

 4 marks


Highlight four circumstances in which a cheque may be used as a means of payment.

 4 marks


Outline four features of liners is sea transport.

 4 marks


Mango Traders had the following ledger account balances as at 31st December 2014.
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


Of late the government has privatized many public corporations. Outline any four reasons that may have led to this.

 4 marks


Outline four functions of the International Bank for Reconstruction and Development.

 4 marks


The following balances were extracted from the books of Ayuma Enterprises on 31/12/2014.
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


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


Highlight four reasons why a small scale business may succeed despite competition it faces from
large firms.

 4 marks


State four advantages of using credit cards as a means of payment.

 4 marks


Highlight four circumstances under which a seller would require a buyer to pay cash with order.

 4 marks


Identify four ways through which businesses give after sales services to their customers.

 4 marks


Outline four differences between a cheque and Bills of exchange.

 4 marks


List four levels of inflation.

 4 marks


Outline four benefits of export processing zones to a country.

 4 marks


Highlight four monetary policy measures used by the central bank to decrease money supply in
the economy.

 4 marks


Highlight four demerits of letters as a means of communication.

 4 marks


Outline four features of a public limited company.

 4 marks


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


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


Outline any four sources of monopoly power for a firm.

 4 marks


Differentiate between ordinary shares and preference shares of a company.

 4 marks


Highlight any four characteristics of an under developed country.

 4 marks


Outline the meaning of the following as used in International Trade.

 2 marks

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