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KNEC KCSE Business Studies Paper 1 Question Paper / 2016 KASSU JET JOINT EXAMINATION

KNEC KCSE Business Studies Paper 1 Question Paper / 2016 KASSU JET JOINT EXAMINATION

2016 KASSU JET JOINT EXAMINATION

Business Studies Paper 1

1.

Giving an example in each case, outline the difference between renewable and non-renewable
resources.
………………………………………………………………………………………………………
………………………………………………………………………………………………………
………………………………………………………………………………………………………
………………………………………………………………………………………………………
………………………………………………………………………………………………………
………………………………………………………………………………………………………

 4 marks

2.

State four reasons why diagonal communication needs to be encouraged in an organization.
a)……………………………………………………………………………………………………
b)…………………………………………………………………………………………………….
c)……………………………………………………………………………………………………
d)……………………………………………………………………………………………………

 4 marks

3.

Mention four benefits enjoyed by a member of a producer cooperative society
a)……………………………………………………………………………………………………
b)…………………………………………………………………………………………………….
c)……………………………………………………………………………………………………
d)……………………………………………………………………………………………………

 4 marks

4.

State four measures that the government can use to encourage increase in the country’s volume
of exports.
a)……………………………………………………………………………………………………
b)…………………………………………………………………………………………………….
c)……………………………………………………………………………………………………
d)……………………………………………………………………………………………………

 4 marks

5.

Highlight four positive impacts of the physical environment on the operations of a business.
a)……………………………………………………………………………………………………
b)…………………………………………………………………………………………………….
c)……………………………………………………………………………………………………
d)……………………………………………………………………………………………………

 4 marks

6.

Highlight four problems associated with monopoly market structure.
a)……………………………………………………………………………………………………
b)…………………………………………………………………………………………………….
c)……………………………………………………………………………………………………
d)……………………………………………………………………………………………………

 4 marks

7.

Outline four role of the mass media in promoting consumer protection.
a)……………………………………………………………………………………………………
b)…………………………………………………………………………………………………….
c)……………………………………………………………………………………………………
d)……………………………………………………………………………………………………

 4 marks

8.

Outline four services offered in agency banking as a trend in the banking sector.
a)……………………………………………………………………………………………………
b)…………………………………………………………………………………………………….
c)……………………………………………………………………………………………………
d)……………………………………………………………………………………………………

 4 marks

9.

State the best type of machine one would use to perform the following tasks

Functions Name of machine
i) Used to trim papers into desired sizes
ii) To post information to ledgers and to prepare payrolls
iii) To transmit printed messages such as letters, maps, diagrams and photographs
iv) To destroy sensitive but unwanted documents

 4 marks

10.

The following balance sheet belongs to Nyakwar Atiyo during the period ended 30th June 2000.

Nyakwar Atiyo Traders
Balance sheet
As at 30.06.2000
Assets
Machinery
Current assets
Stock
Debtors
Bank
Kshs
45,000

7,750
1,375
25,375
79,500
Capital + Liabilities
Capital
Creditors
Short term liability
Bank loan

Ksh
65,000
45,000
.
10,000

79,500

The following transactions took place on July 1 2000.
(i) Paid creditors Sh 2000 by cheque.
(ii) Nyakwar Atiyo took stock worth Shs 7500 from the business for his son’s birthday.
(iii) Motor vehicle previously owned by Nyakwar Atiyo values at sh 200,000 was
converted into business vehicles.
Required: Prepare the balance sheet of Nyakwar Atiyo traders as at 2nd July 2000.

 4 marks

11.

Highlight four roles of advertising agencies in product promotion
a)……………………………………………………………………………………………………
b)…………………………………………………………………………………………………….
c)……………………………………………………………………………………………………
d)……………………………………………………………………………………………………

 4 marks

12.

Distinguish between the following categories of government expenditure.
a) Recurrent expenditure
…………………………………………………………………………………………………
…………………………………………………………………………………………………
…………………………………………………………………………………………………
b) Capital expenditure
…………………………………………………………………………………………………
…………………………………………………………………………………………………
…………………………………………………………………………………………………

 4 marks

13.

Highlight four differences between hypermarkets and departmental stores.
a)……………………………………………………………………………………………………
b)…………………………………………………………………………………………………….
c)……………………………………………………………………………………………………
d)……………………………………………………………………………………………………

 4 marks

15.

Distinguish between the following terms as used in National Income (3mks)
a) Gross Domestic Product
…………………………………………………………………………………………………
…………………………………………………………………………………………………
…………………………………………………………………………………………………
b) Gross National Product
…………………………………………………………………………………………………
…………………………………………………………………………………………………
………………………………………………………………………………………………..
c) Per capita Income
…………………………………………………………………………………………………
…………………………………………………………………………………………………
………………………………………………………………………………………………….

 3 marks

16.

Highlight four ways in which the government of Kenya promotes entrepreneurial development

a)……………………………………………………………………………………………………
b)…………………………………………………………………………………………………….
c)……………………………………………………………………………………………………
d)……………………………………………………………………………………………………

 4 marks

17.

State four channels of distribution for importation of agricultural produce.
a)……………………………………………………………………………………………………
b)…………………………………………………………………………………………………….
c)……………………………………………………………………………………………………
d)……………………………………………………………………………………………………

 4 marks

18.

Outline four trends in transport sector.
a)……………………………………………………………………………………………………
b)…………………………………………………………………………………………………….
c)……………………………………………………………………………………………………
d)……………………………………………………………………………………………………

 4 marks

19.

Outline four benefits of indirect production.
a)……………………………………………………………………………………………………
b)…………………………………………………………………………………………………….
c)……………………………………………………………………………………………………
d)……………………………………………………………………………………………………

 4 marks

20.

Enter the following transactions in the relevant ledger accounts (4mks)
2015
April 1 Janet Cosmetics started a business with Ksh. 150,000 cash
,, 3 Bought stock of goods for Sh. 40,000 and paid in cash
,, 6 Opened a bank account and deposited Sh. 60,000 from the cash till
,, 9 Purchased an office machine for Sh. 25,000 and paid by cheque

 4 marks

21.

Give four reasons why a producer may need to have their own warehouse
a)……………………………………………………………………………………………………
b)…………………………………………………………………………………………………….
c)……………………………………………………………………………………………………
d)……………………………………………………………………………………………………

 4 marks

22.

State the name of the source document used to record the following transactions (4mks)

Transaction Source Document
a) Received goods returned by a buyer who
bought them earlier on credit
b) Making of payment to a casual workers at
the end of the week
c) Bought goods for sale from Gilanis
Supermarkets on credit
d) A customer, Adhiambo, send a cheque for
goods she bought earlier on credit

 

 4 marks

23.

Define the following terms as used in business studies
(i) Annuity
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
(ii) Proposer
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
(iii) Speculative risk
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………

(iv) Grace period
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………

 4 marks

24.

In the table below fill in the missing figures S,T,U and V.

Business Assets(shs) Capital(shs) Liabilities(shs)
A 20,000 S 5,000
B 42,000 32,000 T
C U 17,000 53,000
D 18000 V 6000

S……………………………………………………………………………………………
T……………………………………………………………………………………………
U……………………………………………………………………………………………
V……………………………………………………………………………………………

 4 marks

25.

Compute the consumer price index (CPI) from the following data giving explanation of your
outcome.

Year
2010
2011
Price
300
375

………………………………………………………………………………………………………
………………………………………………………………………………………………………
………………………………………………………………………………………………………
………………………………………………………………………………………………………
………………………………………………………………………………………………………
………………………………………………………………………………………………………

 4 marks

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