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

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

2016 KCSE KAMDARA JET Examination

Business Studies Paper 1

1.

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

 4 marks

2.

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

 4 marks

3.

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) ……………………………………………………………………………….

 4 marks

4.

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

 4 marks

5.

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

 4 marks

6.

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

 4 marks

7.

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

 4 marks

8.

Highlight four measures to alleviate the balance of payment problems
i.………………………………………………………………………………………
——————————————————————————————————–
ii.…………………………………………………………………………………………
—————————————————————————————————
iii.…………………………………………………………………………………………
————————————————————————————————-
iv.…………………………………………………………………………………………
—————————————————————————————————

 4 marks

9.

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.

 4 marks

10.

Study the diagrams below and answer the question that follows:-
Business Studies Paper 1 Question Paper - 2016 KCSE KAMDARA JET Examination
State the factors that may cause the above change from diagram (i) to (ii) (4 marks)
i. …………………………………………………………………………….
ii. …………………………………………………………………………….
iii. …………………………………………………………………………….
iv. …………………………………………………………………………….

 4 marks

11.

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

 4 marks

12.

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

Detail
Gross profit
Rent Income
Dividends received
Salaries
Carriage outwards
Discount allowed
Shs
120,000
100,000
200,000
300,000
10,300
21,000

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

 4 marks

13.

Indicate the source document and the book of original entry in which each of the
following transactions should be recorded
Business Studies Paper 1 Question Paper - 2016 KCSE KAMDARA JET Examination

 4 marks

14.

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. …………………………………………………………………………………………………………………………….

 4 marks

15.

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

 4 marks

16.

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

 4 marks

17.

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

 4 marks

18.

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

 4 marks

19.

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

 4 marks

20.

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.
Business Studies Paper 1 Question Paper - 2016 KCSE KAMDARA JET Examination

 4 marks

21.

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

 4 marks

22.

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. _______________________

 4 marks

23.

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

 4 marks

24.

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

 4 marks

25.

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

 4 marks

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