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KNEC KCSE Past Papers 2019 Business Studies Paper 1 (565/1)

KNEC KCSE Past Papers 2019 Business Studies Paper 1 (565/1)

KCSE Past Papers 2019 Business Studies Paper 1

Paper 1

1. State whether the commodity or service given in the table below would satisfy a basic human want or a secondary human want.(4 marks)


2. Outline four factors that make office managers to communicate in writing to their staff.(4 marks)

3. The information given below was extracted from the books of Birika Traders on 31 December 2014: (4 marks)


DetailsFurniture and fittings Debtors Capital Commission earned Creditors Drawings 5 year Bank Loan Discount received
Amount (Ksh)234,000 67,500 157,900 13,200 34,750 21,800 114,450 3,000


Required: Prepare Birika Traders Trial Balance as at 31 December 2014.

4. Highlight four functions of an office in an organisation.(4 marks)

5. Outline four roles played by the Nairobi Securities Exchange in the Kenyan economy.(4 marks)

6. Name the basic concept in population described in the statements given below: (4 marks)

(a) Population size that is adequate for the full utilisation of available resources in country

(b) The average number of births per one thousand women in a year.

(e) When a country is experiencing higher death rates than birth rates.

(d) Where a bigger proportion of the population is comprised of people who are above 55 years old.

7. State the circumstance under which each of the following terms of trade would be applied in foreign trade. (4 marks)

(a) Franco ………………………………….

(c) In Bond …………………………….

(d) Free Alongside Ship …………………… …..

8. Complete the diagram below to illustrate the classification of trade. (3 marks)


9. Highlight four iricrits of using sales people to promote the Sales of a particular product. (4 marks)

10. By use of the book keeping equation, determine the missing values in the table below: (4 marks)


11. Outline four features that may indicate a country’s state of underdevelopment. (4 marks)

12. List four types of small-scale retail business that one can run without a shop. (4 marks)

13. Highlight four functions of the Department of External Trade in the Ministry of Industry, Trade and Cooperatives. (4 marks)

14. Outline four factors that Chemichemi Dairies would consider when selecting a channel to distribute their fresh milk.(4 marks)

15. State the relevant books of original entry into which information is extracted from the source documents given below would be recorded:


16. Outline four features of co-operative societies.(4 marks)

17. Highlight four factors which may lead to an increase in a country’s national income. (4 marks)

18.The following information was extracted from the books of Jabali Traders on 31 December 2015.

Details Ksh

Purchases – 84,375

Carriage out – 7,400

Stock on 1/1/2015 – 67,900

Carriage in – 9,170

Stock on 31/1/2015 – 17,970

Returns out – 15,520

(a) Determine net purchases.(3 marks)

(b) State two reasons for preparing the trading account.(2 marks)

19. Identify the level of production into which the following workers belong:

20. Outline four characteristics of a good tax system.(4 marks)

21. Highlight four contributions of entrepreneurs to the growth of an economy.(4 marks)

22. Highlight four factors that may influence an individual’s demand for money in order to fulfil the transaction motive (4 marks)

23. Determine the excess demand or excess supply from the combined demand and supply schedules of oranges given below:(4 marks)


24.Outline four benefits for a bonded warehouse to the importer (4 marks)

25.Apart from trains and motor vehicles, state four other means of transporting goods and people on land. (4 marks)

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