KNEC KCSE Business Studies Paper 1 Question Paper / 2016 KCSE 4MCK Joint Exam
2016 KCSE 4MCK Joint Exam
Business Studies Paper 1
Outline four skills and benefits that Okoth, a student would get from studying business.
a)…………………………………………………………………………………………………….
b) ……………………………………………………………………………………………………
c) ……………………………………………………………………………………………………
d) ……………………………………………………………………………………………………
4 marks
Identify the type of business environment represented by each of the following factors
Factor | Business environment |
a)A value added tax collected by KRA | ______________________________________________ |
b)Personal and academic skills required | ______________________________________________ |
c)Political climate in the country | ______________________________________________ |
d)Information and communication systems of a firm | ______________________________________________ |
e)Organizational structures of a business | ______________________________________________ |
f)Substitutes brand introduced in the market | ______________________________________________ |
3 marks
Highlight three reasons why human beings should make choices between competing needs.
a)…………………………………………………………………………………………………….
b) ……………………………………………………………………………………………………
c) ……………………………………………………………………………………………………
d) ……………………………………………………………………………………………………
3 marks
For each of the following occupations, mention the level of production that relates to each.
3 marks
State four roles played by entrepreneurs to the economy of a country
a)…………………………………………………………………………………………………….
b) ……………………………………………………………………………………………………
c) ……………………………………………………………………………………………………
d) ……………………………………………………………………………………………………
4 marks
Mention five ways in which the government participates in the operations of a state
corporation.
a)…………………………………………………………………………………………………….
b) ……………………………………………………………………………………………………
c) ……………………………………………………………………………………………………
d) ……………………………………………………………………………………………………
e)……………………………………………………………………………………………………
5 marks
Outline four advantages of a sole proprietorship form of business ownership.
a)…………………………………………………………………………………………………….
b) ……………………………………………………………………………………………………
c) ……………………………………………………………………………………………………
d) ……………………………………………………………………………………………………
4 marks
Name four laws enacted by the government to protect consumers.
a)…………………………………………………………………………………………………….
b) ……………………………………………………………………………………………………
c) ……………………………………………………………………………………………………
d) ……………………………………………………………………………………………………
4 marks
State four reasons why the short message service (SMS) is replacing letters as a way of
communication.
a)…………………………………………………………………………………………………….
b) ……………………………………………………………………………………………………
c) ……………………………………………………………………………………………………
d) ……………………………………………………………………………………………………
4 marks
For each of the following means of transport show the unit of carriage used.
4 marks
Give four reasons why warehousing is very important in a country’s economy.
a)…………………………………………………………………………………………………….
b) ……………………………………………………………………………………………………
c) ……………………………………………………………………………………………………
d) ……………………………………………………………………………………………………
4 marks
State four factors that determine the amount of premium in life assurance.
a)…………………………………………………………………………………………………….
b) ……………………………………………………………………………………………………
c) ……………………………………………………………………………………………………
4 marks
Give four factors that may cause decrease of goods in the market. (4 marks)
a)…………………………………………………………………………………………………….
b) ……………………………………………………………………………………………………
c) ……………………………………………………………………………………………………
d) ……………………………………………………………………………………………………
4 marks
List four sources of internal economies of seale.
a)…………………………………………………………………………………………………….
b) ……………………………………………………………………………………………………
c) ……………………………………………………………………………………………………
d) ……………………………………………………………………………………………………
4 marks
State four reasons that makes government to create monopolies.
a)…………………………………………………………………………………………………….
b) ……………………………………………………………………………………………………
c) ……………………………………………………………………………………………………
d) ……………………………………………………………………………………………………
4 marks
a) State the shortest channel of distribution of imported goods. (1 mark)
………………………………………………………………………………………………………
b) Give three circumstances under which this channel may be preferred. (3 marks)
i)…………………………………………………………………………………………………….
ii) ……………………………………………………………………………………………………
iii) …………………………………………………………………………………………………..
4 marks
Outline four factors that may cause change in capital in an ongoing business.
a)…………………………………………………………………………………………………….
b) ……………………………………………………………………………………………………
c) ……………………………………………………………………………………………………
d) ……………………………………………………………………………………………………
4 marks
Enter the following transactions into a two column cash book for Jaribu traders and balance it
off.
1st April 2008 – Cash balance Kshs 2,500
-Cash at bank Kshs 12,450
4th April 2008 – Paid Musau a creditor Kshs 1800 cash
7th April 2008 – Sold goods on credit worth Kshs 10,000 to maimam
traders
11th April 2008 – Paid salaries by cheque sh 6500
12th April 2008 -Withdrew Kshs 9,540 from the bank for office use.
5 marks
Outline four factors that have contributed to the failure of measures being taken by
the government to control rapid population growth rate.
a)…………………………………………………………………………………………………….
b) ……………………………………………………………………………………………………
c) ……………………………………………………………………………………………………
d) ……………………………………………………………………………………………………
4 marks
The following information was extracted from books of Kithae traders on 30th June
2010.
Opening stocks Purchases Sales Mark up |
Kshs 75,000 Ksh 475,200 Kshs 620,000 25% |
Prepare a trading account to determine
a) Closing stock
b) Cost of goods sold
c) Gross profit.
5 marks
Highlight four reasons why small scale traders prefer borrowing from micro finance.
a)…………………………………………………………………………………………………….
b) ……………………………………………………………………………………………………
c) ……………………………………………………………………………………………………
d) ……………………………………………………………………………………………………
4 marks
The Kenya shilling has been depreciating against major international currencies. Highlight
four disadvantages of this depreciation of the currency.
a)…………………………………………………………………………………………………….
b) ……………………………………………………………………………………………………
c) ……………………………………………………………………………………………………
d) ……………………………………………………………………………………………………
4 marks
Give three reasons for taxation.
a)…………………………………………………………………………………………………….
b) ……………………………………………………………………………………………………
c) ……………………………………………………………………………………………………
3 marks
Explain briefly the significance of the following terms of sale.
i) LOCO…………………………………………………………………………………………….
ii) ONO……………………………………………………………………………………………
iii) FRANCO………………………………………………………………………………………
iv)FOB………………………………………………………………………………………………
4 marks
The following data was extracted from the books of Racheal’s boutique as at 31st September
Faulu 3 yr loan Creditors Premises General expenses Cash Bank Stock Capital Debtors Drawings |
Kshs 300,000 Kshs 160,000 Ksh 145,000 Ksh 50, 000 Ksh 75,000 Ksh 215,000 Kshs 250,000 Kshs 420,000 Kshs 115,000 Kshs 30,000 |
Required:
Prepare Racheal’s trial balances as at the end of September. (5 marks)
4 marks