KNEC KCSE Business Studies Paper 1 Question Paper / 2016 KCSE KAMDARA JET Examination

State FOUR reasons why consumers satisfy basic wants before secondary wants
i. …………………………………………………………………………..
ii. …………………………………………………………………………..
iii. ………………………………………………………………………….
iv. ………………………………………………………………………….

State FOUR factors determining the supply of labour in an economy
i. ……………………………………………………………………………….
ii. ………………………………………………………………………………
iii. ………………………………………………………………………………..
iv. ……………………………………………………………………………….

Jitegemee, a very young entrepreneur would like to start a business in Makadara center.
Outline four factors that would show the existence of a business opportunity within the
center
i) ………………………………………………………………………………
ii) ……………………………………………………………………………….
iii) ……………………………………………………………………………….
iv) ……………………………………………………………………………….

Highlight four monetary policy measures used to regulate circulation of money in an
economy
i. …………………………………………………………………………………
ii. …………………………………………………………………………………
iii. …………………………………………………………………………………
iv. ………………………………………………………………………………..

Highlight four ways in which ethical practices in business ensures that consumers are not
exploited
i. ………………………………………………………………………………
ii. ……………………………………………………………………………….
iii. ………………………………………………………………………………..
iv. …………………………………………………………………………………

Outline four consequences of a poor filing system in an organization
i. ……………………………………………………………………………
ii. …………………………………………………………………………….
iii. …………………………………………………………………………….
iv. ……………………………………………………………………………..

Highlight four features that distinguish co-operative societies from other forms of business
units.
i. …………………………………………………………………………………
ii. …………………………………………………………………………………
iii. …………………………………………………………………………………..
iv. ………………………………………………………………………………….

Highlight four measures to alleviate the balance of payment problems
i.………………………………………………………………………………………
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ii.…………………………………………………………………………………………
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iii.…………………………………………………………………………………………
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iv.…………………………………………………………………………………………
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The following information was extracted from Mawe Mbili traders for the year ended 31st
December, 2015
KSH
Machinery 460,000
Cash in hand 80,000
Debtors 130,000
Creditors 60,000
Prepaid salaries 20,000
4 year loan 280,000
Accrued rent 30,000
Required:

Prepare a balance sheet of Mawe mbili traders as at 31st December, 2015.

Study the diagrams below and answer the question that follows:-

State the factors that may cause the above change from diagram (i) to (ii) (4 marks)
i. …………………………………………………………………………….
ii. …………………………………………………………………………….
iii. …………………………………………………………………………….
iv. …………………………………………………………………………….

Give four reasons why railway transport is not competitive in Kenya.
i. ………………………………………………………………………………..
ii. …………………………………………………………………………………
iii. …………………………………………………………………………………
iv. ………………………………………………………………………………….

The following balances were extracted from the books of Asena Enterprises on 30th June,
2006.

Prepare Asena’s Enterprises profit and loss account for the year ended 30th June,2006.

Indicate the source document and the book of original entry in which each of the
following transactions should be recorded

Atemo is the head of the marketing team at ABC Company that has recorded tremendous
increase in volume of sales over the last four years. Highlight four attributes that she
possess.
i. …………………………………………………………………………………………………………………………….
ii. …………………………………………………………………………………………………………………………….
iii. …………………………………………………………………………………………………………………………….
iv. …………………………………………………………………………………………………………………………….

Outline four features of a monopolistic market
i. ………………………………………………………………………………………………………………………………
ii. ………………………………………………………………………………………………………………………………
iii. ………………………………………………………………………………………………………………………………
iv. ………………………………………………………………………………………………………………………………

state four positive implications of a large population in a country
i. …………………………………………………………………………………………………………………………….
ii. …………………………………………………………………………………………………………………………….
iii. …………………………………………………………………………………………………………………………….
iv. …………………………………………………………………………………………………………………………….

Outline four circumstances under which an Insurance company may re- Insure.
i. ………………………………………………………………………
………………………………………………………………………
ii. ………………………………………………………………………
………………………………………………………………………
iii. ………………………………………………………………………
………………………………………………………………………
iv. ………………………………………………………………………
………………………………………………………………………………………………

State four importance of development planning.
i. ………………………………………………………………………
ii. ………………………………………………………………………
iii. ……………………………………………………………………..
iv. ………………………………………………………………………

Record the following transactions in a two column cash book and balance it off as at
January 12th 2008
January 1 Started business with capital sh. 10,000 cash and sh. 25,000 bank overdraft
2 bought stock in cash sh. 6,000
3 cash sales sh. 2,500
7 bought stock worth sh. 5,000 on credit
12 withdrew cash from bank for office use sh. 4,000

The following are types of internal and external environments Technological, Business
structure, Demographic and physical. In the table below , write the type of environment that suits the description.

Mention four circumstances under which verbal communication would be
used in an organization.
i. ………………………………………………………………………
ii. ………………………………………………………………………
iii. ………………………………………………………………………
iv. …………………………………………………………………

In each of the following cases, state the type of inflation described.
a) The unrest in Libya has resulted to an increase
in the price of oil. ______________________
b) The price of bread has gone up to Shs.60 due to
Increase in the price of Wheat. ______________________

c) A lot of Money in circulation has led to
the general increase of price. ______________________
d) A rise in price due to uneven growth in
Some sectors ofthe economy. _______________________

State FOUR economic effects of taxation to a country’s economy.
i. ……………………………………………………………………………….
ii. ………………………………………………………………………………..
iii. ………………………………………………………………………………..
iv. ……………………………………………………………………………….

State four merits of storing goods in a public warehouse
i. … …………………………………………………………………………….
ii. ………………………………………………………………………………..
iii. ………………………………………………………………………………..
iv. ………………………………………………………………………………….

Highlight FOUR circumstances under which a seller would require a buyer to pay cash
with order. (C.W.O)
i. ………………………………………………………………………………..
ii. …………………………………………………………………………………
iii. …………………………………………………………………………………
iv. …………………………………………………………………………………