KNEC KCSE Business Studies Paper 1 Question Paper 2015 – Machakos County Trial
2015 KCSE Machakos County Trial
Business Studies Paper 1
1.
Outline FOUR features that constitute a market.
4 marks
2.
The following diagram represents demand and supply of a product.
State what is represented by curves
(a)ap
(b)bq
(c)letter c
On the diagram, indicate equilibrium price (PE) and equilibrium quantity (QE)
4 marks
3.
Outline FOUR advantages of after sales services as a method of sales promotion to a customer.
4 marks
4.
Give FOUR reasons why a consumer should satisfy basic wants before secondary wants.
4 marks
5.
Outline FOUR reasons why a multinational company may prefer setting up a production unit in developing country instead of exporting finished goods to the country.
4 marks
6.
State the factor of production that each of the following resources relate to:-
Resource
Factor of production
Manager
_
Quarry
_
Vehicle
_
Water
_
Owner
_
4 marks
7.
In the spaces provided below, indicate with a tick (✓) whether each of the following statements relates to preference or ordinary shares.
Statement
Preference
Ordinary
Represents real owners of company
_
_
Rate of dividends is fixed
_
_
Has voting rights
_
_
Redeemable
_
_
May be cumulative
_
_
Considered last in liquidation
_
_
3 marks
8.
Outline FOUR features of trade credit as a source of finance for business units.
4 marks
9.
(a)State the term that best fit each of the following description. (4 Marks)
Money brought into the business by owner
(b)Goods bought for resale
(c)Money withdrawn by owner of business for personal use
(d)Money borrowed from outsiders by owner of the business for business use
4 marks
10.
The following balances were obtained from the books of Jomba Traders as at 30th July 2014
Shs.
Opening stock 50,000
Sales 360,000
Gross profit 25% of sales
Closing stock 70,000
Calculate
(a)Cost of goods sold (2Marks)
(b)Rate of stock turnover (2 Marks)
4 marks
11.
Enter each of the following transactions in the relevant ledger accounts
(a)Started business in June 15th 2014 with Ksh. 500,000 in bank.
(b)Bought a motor vehicle in June 16th 2014 for KSh. 250,000, payment made by a cheque.
(c)Withdrew Ksh. 50,000 in June 20th 2014 from the business bank a/c to be used in the office.
(d)June 24th, 2014, paid salaries Ksh. 18,000 cash.
4 marks
12.
On June 1st 2015, Kelly had KSh. 6000 cash in hand and a bank overdraft of Sh. 2000; during the month the following transactions took.
(a)Received cheques from debtors totaling to KSh. 80,000 on June 2nd
(b)June 5th, paid telephone bills Sh. 1200 cash
(c)June 8th, withdrew Sh. 16000 from bank for office use.
Enter the above information in the two – column cash book given below and balance it off.
Kelly Traders
Two – Column Cashbook
for the month of June 2015
Date
Particulars
Bank
Cash
Date
Particulars
Bank
Cash
_
_
_
_
_
_
_
_
4 marks
13.
Outline FOUR ways of curbing cost push inflation.
4 marks
14.
Outline FOUR circumstances under which the per capita income statistics would be a good indicator of the welfare of the citizens of country.
4 marks
15.
Outline FOUR challenges associated with a high ageing population in a country.
4 marks
16.
Outline FOUR purposes of taxation.
4 marks
17.
State FOUR basis of international trade
4 marks
18.
Outline FOUR methods that a country may use to restrict international trade.
4 marks
19.
State FOUR reasons why an invoice received is important in accounting.
4 marks
20.
Outline FOUR items that are included when computing national income using the expenditure approach.
4 marks
21.
Outline FOUR features of insurable risks
4 marks
22.
State FOUR features of chain stores.
4 marks
23.
Outline FOUR factors that constitute an efficient transport system.
4 marks
24.
State FOUR goals of development.
4 marks
25.
Outline FOUR disadvantages of use of Automatic Teller Machines (ATMs) in banking.
