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KNEC KCSE Business Studies Paper 1 Question Paper / 2016 Pre KCSE

KNEC KCSE Business Studies Paper 1 Question Paper / 2016 Pre KCSE

2016 Pre KCSE

Business Studies Paper 1

1.

State FOUR economic factors that affect a consumer’s buying ability
i)…………………………………………………………………………………………………………………………………………..
ii)………………………………………………………………………………………………………………………………………….
iii)…………………………………………………………………………………………………………………………………………
iv)…………………………………………………………………………………………………………………………………………

 4 marks

2.

State FOUR emotional qualities that are essential for a good office staff
i)…………………………………………………………………………………………………………………………………………..
ii)………………………………………………………………………………………………………………………………………….
iii)…………………………………………………………………………………………………………………………………………
iv)…………………………………………………………………………………………………………………………………………

 4 marks

3.

State FOUR ways through which the Government regulates the business activities in the country
i)………………………………………………………………………………………………………………………………………….
ii)………………………………………………………………………………………………………………………………………….
iii)…………………………………………………………………………………………………………………………………………
iv)…………………………………………………………………………………………………………………………………………

 4 marks

4.

State FOUR problems that a maize farmer without storage facilities would encounter
i)…………………………………………………………………………………………………………………………………………..
ii)………………………………………………………………………………………………………………………………………….
iii)…………………………………………………………………………………………………………………………………………
iv)…………………………………………………………………………………………………………………………………………

 4 marks

5.

State FOUR consequences of a shift in the demand curve
i)…………………………………………………………………………………………………………………………………………..
ii)………………………………………………………………………………………………………………………………………….
iii)…………………………………………………………………………………………………………………………………………

 4 marks

6.

Highlight FOUR factors that influence the level of national income in a country
i)…………………………………………………………………………………………………………………………………………..
ii)………………………………………………………………………………………………………………………………………….
iii)…………………………………………………………………………………………………………………………………………
iv)…………………………………………………………………………………………………………………………………………

 4 marks

7.

State FOUR types of ledgers
i)…………………………………………………………………………………………………………………………………………..
ii)………………………………………………………………………………………………………………………………………….
iii)…………………………………………………………………………………………………………………………………………
iv)…………………………………………………………………………………………………………………………………………

 4 marks

8.

Outline FOUR sources of income collected by the Government
i)…………………………………………………………………………………………………………………………………………..
ii)………………………………………………………………………………………………………………………………………….
iii)…………………………………………………………………………………………………………………………………………
iv)…………………………………………………………………………………………………………………………………………

 4 marks

9.

Outline FOUR characteristics of basic human wants
i)…………………………………………………………………………………………………………………………………………..
ii)………………………………………………………………………………………………………………………………………….
iii)…………………………………………………………………………………………………………………………………………
iv)…………………………………………………………………………………………………………………………………………

 4 marks

10.

Define the following terms
(i) Capital goods………………………………………………………………………………………………………………
(ii) Non-economic goods………………………………………………………………………………………………….
(iii) Public goods……………………………………………………………………………………………………………

(iv) Durable goods………………………………………………………………………………………………………….

 4 marks

11.

State FOUR ways through which a business opportunity may rise in a country
(i)………………………………………………………………………………………………………………………………………….
(ii)………………………………………………………………………………………………………………………………………..
(iii)……………………………………………………………………………………………………………………………………….
(iv)………………………………………………………………………………………………………………………………………..

 4 marks

12.

Outline FOUR advantages of an open air market to a consumer.
(i)………………………………………………………………………………………………………………………………………..
(ii)……………………………………………………………………………………………………………………………………….
(iii)………………………………………………………………………………………………………………………………………
(iv)………………………………………………………………………………………………………………………………………..

 4 marks

13.

State FOUR benefits of registering a company with the stock exchange market.
(i)………………………………………………………………………………………………………………………………………..
(ii)……………………………………………………………………………………………………………………………………..
(iii)…………………………………………………………………………………………………………………………………….
(iv)…………………………………………………………………………………………………………………………………….

 4 marks

14.

Highlight FOUR causes that led to the government control of the transport industry
(i)………………………………………………………………………………………………………………………………………
(ii)………………………………………………………………………………………………………………………………………
(iii)……………………………………………………………………………………………………………………………………..
(iv)………………………………………………………………………………………………………………………………………

 4 marks

15.

State FOUR problems caused by advertising to the society.
(i)………………………………………………………………………………………………………………………………………
(ii)…………………………………………………………………………………………………………………………………….
(iii)……………………………………………………………………………………………………………………………………
(iv)……………………………………………………………………………………………………………………………………

 4 marks

16.

Name the term referred to in each of the following statements.

Statement Term
i) A business form that takes an insurance policy
ii) A firm that undertakes to compensate another in case of a risk insured
arising
iii) An event which if it occurs, will result to a financial loss
iv) The amount of money payable to a firm that decides to terminate an
endowment policy

 4 marks

17.

State FOUR adverse effects of a firm’s production activities to the environment
i)…………………………………………………………………………………………………………………………………………..
ii)………………………………………………………………………………………………………………………………………….
iii)…………………………………………………………………………………………………………………………………………
iv)…………………………………………………………………………………………………………………………………………

 4 marks

18.

With the help of a diagram, illustrate a demand curve for an oligopolistic producer

 4 marks

21.

The following balances were extracted from the books of Nakuru on 31st Dec. 2008.

.
Sales
Purchases
2 year Bank Loan
Stock Dec.
Land
Equipment
Creditors
Debtors
Shs.
Sales 400,000
Purchases 240,000
2 year Bank Loan 300,000
Stock Dec. 70,000
Land 700,000
Equipment 200,000
80,000
250,000

Calculate
(i) Margin (2 marks)
(ii) Capital employed (2 marks)

 4 marks

22.

State FOUR benefits of using ATM cards in transacting a business deal.
i)………………………………………………………………………………………………………………………………………
(ii)…………………………………………………………………………………………………………………………………….
(iii)……………………………………………………………………………………………………………………………………
(iv)……………………………………………………………………………………………………………………………………

 4 marks

23.

State FOUR methods used by the government to restrict international trade
i)………………………………………………………………………………………………………………………………………
(ii)…………………………………………………………………………………………………………………………………….
(iii)……………………………………………………………………………………………………………………………………
(iv)……………………………………………………………………………………………………………………………………

 4 marks

24.

Outline FOUR problems that may arise in a school that has poor communication techniques.
i)………………………………………………………………………………………………………………………………………
(ii)…………………………………………………………………………………………………………………………………….
(iii)……………………………………………………………………………………………………………………………………
(iv)……………………………………………………………………………………………………………………………………

 4 marks

25.

State FOUR benefits of a business to the society
i)………………………………………………………………………………………………………………………………………
(ii)…………………………………………………………………………………………………………………………………….
(iii)……………………………………………………………………………………………………………………………………
(iv)……………………………………………………………………………………………………………………………………

 4 marks

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