RSS

2010 KCSE Business Trial P1-001

21 Sep

2010 KCSE Business Trial P1-001

Name…………………………………………………                      Index No. …………………….

School …………………………………………………                     Date……. …………………….

Sign……. …………………….

565/1

BUSINESS STUDIES

PAPER 1

JULY / AUGUST 2010

Time: 2 Hours

RARIEDA DISTRICT JOINT EVALUATION TEST – 2010

Kenya Certificate of Secondary Education (K.C.S.E)

565/1

BUSINESS STUDIES

PAPER 1

JULY / AUGUST 2010

Time: 2 Hours

INSTRUCTIONS TO CANDIDATES

  • Attempt ALL the questions in the spaces provided.

FOR EXAMINERS USE ONLY: FILL THE GRIDS BELLOW

QUESTION NO. 1 2 3 4 5 6 7 8 9 10 11 12 13
SCORE
QUESTION NO. 14 15 16 17 18 19 20 21 22 23 24 25
SCORE
TOTAL MARKS

This paper consists of 12 printed pages.

Candidates should check the question paper to ensure that all pages are printed as indicated

and no questions are missing.

1.         State four reasons why people engage in business.                                        (4 marks)

a)……………………………………………………………………………………………

………………………………………………………………………………………………

b)……………………………………………………………………………………………

………………………………………………………………………………………………

c)……………………………………………………………………………………………

………………………………………………………………………………………………

d)……………………………………………………………………………………………

………………………………………………………………………………………………

2.         State four disadvantages of division of labour.                                             (4 marks)

a)……………………………………………………………………………………………

………………………………………………………………………………………………

b)……………………………………………………………………………………………

………………………………………………………………………………………………

c)……………………………………………………………………………………………

………………………………………………………………………………………………

d)……………………………………………………………………………………………

………………………………………………………………………………………………

3.         Outline four roles of management in the success of a business                     (4 marks)

a)……………………………………………………………………………………………

………………………………………………………………………………………………

b)……………………………………………………………………………………………

………………………………………………………………………………………………

c)……………………………………………………………………………………………

………………………………………………………………………………………………

d)……………………………………………………………………………………………

………………………………………………………………………………………………

4.         State four features of Hire Purchase.                                                                                    (4 marks)

a)……………………………………………………………………………………………

………………………………………………………………………………………………

b)……………………………………………………………………………………………

………………………………………………………………………………………………

c)……………………………………………………………………………………………

………………………………………………………………………………………………

d)……………………………………………………………………………………………

………………………………………………………………………………………………

5.         State the major use of each of these documents

a.         Certificate of trading                                                                                      (1mark)

……………………………………………………………………………………………

………………………………………………………………………………………………

b.         Certificate of Incorporation                                                                            (1mark)

……………………………………………………………………………………………

………………………………………………………………………………………………

c.         Memorandum of association.                                                                          (1mark)

……………………………………………………………………………………………

………………………………………………………………………………………………

d.         Articles of association.                                                                                    (1mark)

……………………………………………………………………………………………

………………………………………………………………………………………………

6.         Outline four circumstances under which verbal communication may be used.         (4marks)

a)……………………………………………………………………………………………

………………………………………………………………………………………………

b)……………………………………………………………………………………………

………………………………………………………………………………………………

c)……………………………………………………………………………………………

………………………………………………………………………………………………

d)……………………………………………………………………………………………

………………………………………………………………………………………………

7.         State four essentials for a warehouse.                                                                        (4 marks)

a)……………………………………………………………………………………………

………………………………………………………………………………………………

b)……………………………………………………………………………………………

………………………………………………………………………………………………

c)……………………………………………………………………………………………

………………………………………………………………………………………………

d)……………………………………………………………………………………………

………………………………………………………………………………………………

8.         State four types of economies of scale to a firm.                                           (4 marks)

a)……………………………………………………………………………………………

………………………………………………………………………………………………

b)……………………………………………………………………………………………

………………………………………………………………………………………………

c)……………………………………………………………………………………………

………………………………………………………………………………………………

d)……………………………………………………………………………………………

………………………………………………………………………………………………

9.         Highlight four factors that determine the level of National Income.                        (4 marks)

a)……………………………………………………………………………………………

………………………………………………………………………………………………

b)……………………………………………………………………………………………

………………………………………………………………………………………………

c)……………………………………………………………………………………………

………………………………………………………………………………………………

d)……………………………………………………………………………………………

………………………………………………………………………………………………

10.       Tazama Traders Had the following list of Balance as at On 31 December 2009.

Capital 100,000
Prepaid rent 4,000
Debtors 67,000
Accrued Wages 26,000
Furniture 70,000
Commission in advance 15,000

Prepare the balance sheet as at 31st December 2009.                                                 (4 marks)

11.       The following entries were found to have been entered incorrectly in the ledger accounts.

Sales A/C

Dr.                                                                                                    Cr.

Shs.

June 16                Debtors                    15,000

Shs.
Debtors A/C

Dr.                                                                                                                   Cr.

Shs. Shs.

June 26                            Sales                  15,000

Creditors A/C

Dr. Cr.

Shs.

June 14                Cash at Bank                    5,000

Shs.
Cash at Bank A/C

Dr. Cr.

Shs.

June 14                    Creditors                    5,000

Shs.

(a)        State the correct transaction that took place on:                                             (2marks)

i)          June 14 …………………………………………………………………………………………

………………………………………………………………………………………………

ii)         June 26

……………………………………………………………………………………………

………………………………………………………………………………………………

(c)        State the name for error committed in recording transaction on:                   (2marks)

i)          June 14 ……………………………………………………………………………………………..

………………………………………………………………………………………………

ii)         June 26

……………………………………………………………………………………………

………………………………………………………………………………………………

12.       Mito Traders had the following about their business as on the given dates.

1/1/2009 31/12/2009
Debtors 60,000 80,000
Discount allowed – 10,000
Return inwards – 30,000
Bad debts – 20,000

In the year 2009, customers paid shs. 120,000 while cash sales was shs. 260,000

Calculate the value of credit sales for the year.                                                          (4marks)

13.       Highlight four factors that need to be managed when controlling cost — push inflation

(4marks)

a)……………………………………………………………………………………………

………………………………………………………………………………………………

b)……………………………………………………………………………………………

………………………………………………………………………………………………

c)……………………………………………………………………………………………

………………………………………………………………………………………………

d)……………………………………………………………………………………………

………………………………………………………………………………………………

14.       Outline four goals of development.                                                               (4marks)

a)……………………………………………………………………………………………

………………………………………………………………………………………………

b)……………………………………………………………………………………………

………………………………………………………………………………………………

c)……………………………………………………………………………………………

………………………………………………………………………………………………

d)……………………………………………………………………………………………

………………………………………………………………………………………………

15.       Outline four difficulties faced in the satisfaction of human wants.                          (4marks)

a)……………………………………………………………………………………………

………………………………………………………………………………………………

b)……………………………………………………………………………………………

………………………………………………………………………………………………

c)……………………………………………………………………………………………

………………………………………………………………………………………………

d)……………………………………………………………………………………………

………………………………………………………………………………………………

16.       State four ways that the government can use to service its public debts.                  (4marks)

a)……………………………………………………………………………………………

………………………………………………………………………………………………

b)……………………………………………………………………………………………

………………………………………………………………………………………………

c)……………………………………………………………………………………………

………………………………………………………………………………………………

d)……………………………………………………………………………………………

………………………………………………………………………………………………

17.       Apart from the use of computers in offices, outline other four current trends in office

management.                                                                                                               (4marks)

a)……………………………………………………………………………………………

………………………………………………………………………………………………

b)……………………………………………………………………………………………

………………………………………………………………………………………………

c)……………………………………………………………………………………………

………………………………………………………………………………………………

d)……………………………………………………………………………………………

………………………………………………………………………………………………

18.       Highlight four causes of balance of payment disequilibrium.                                    (4marks)

a)……………………………………………………………………………………………

………………………………………………………………………………………………

b)……………………………………………………………………………………………

………………………………………………………………………………………………

c)……………………………………………………………………………………………

………………………………………………………………………………………………

d)……………………………………………………………………………………………

………………………………………………………………………………………………

19.       The following information was extracted from the books of accounts of Jumba Traders for the year ended 31st December, 2009

Shs
Opening stock 25,000
Carriage on sales 13,000
Purchases 490,000
Sales 552,000
Closing Stock 60,000
Other expenses 10% on gross profit

Determine Net profit for the year ended 31st December, 2009.                                (4marks)

20.       Advance four reasons why it’s necessary for the government to carry out population

census.                                                                                                                         (4marks)

a)……………………………………………………………………………………………

………………………………………………………………………………………………

b)……………………………………………………………………………………………

………………………………………………………………………………………………

c)……………………………………………………………………………………………

………………………………………………………………………………………………

d)……………………………………………………………………………………………

………………………………………………………………………………………………

21.       Most Parastatals in Kenya Have underperformed. Advance four measures that can be

taken to improve their efficiency.                                                                               (4marks)

a)……………………………………………………………………………………………

………………………………………………………………………………………………

b)……………………………………………………………………………………………

………………………………………………………………………………………………

c)……………………………………………………………………………………………

………………………………………………………………………………………………

d)……………………………………………………………………………………………

………………………………………………………………………………………………

22.       On 1st January, 2010 Twiga traders had Kshs. 85, 000 cash in hand and a bank credit

balance of Kshs. 88,000. During the month, the following transactions took place.

January 2nd : Cash sales Kshs. 209,400

Jan. 6th: a debtor settled his account of Kshs 500, 000 by cheque less 5% cash discount..

January 16th : Paid salaries Kshs 30,000 in cash.

Jan. 21st : settled a creditor account of Kshs. 20,000 by cheque less 2% cash discount.

January 31st Banked all the cash except Kshs 25, 000

Enter the above transactions in the three column cash book below.                                      (4mks)

DR                  TWIGA TRADERS THREE- COLUMNS CASH BOOK          CR

Date Particulars Disc All. Cash Bank Date Particulars Disc Rec. Cash Bank

23.       Indicate the account to be debited and credited in the following transactions.        (4marks)

Transaction Debit Credit
a) Bought beans on credit
b) Converted a personal car into business use
c) Paid creditor by cheque
d) Took goods for personal use.

24.       Outline four measures to be taken by a businessman to improve internal business environment.                                                                                                                                         (4 marks)

a)……………………………………………………………………………………………

………………………………………………………………………………………………

b)……………………………………………………………………………………………

………………………………………………………………………………………………

c)……………………………………………………………………………………………

………………………………………………………………………………………………

d)……………………………………………………………………………………………

………………………………………………………………………………………………

25.       The diagram below shows the current demand for a certain product.

2010 KCSE Business Trial P1-001

a)         Name two category of products whose demand curve is illustrated above giving an

example.                                                                                                                      (2mks)

(i)

………………………………………………………………………………………………

………………………………………………………………………………………………

(ii)

………………………………………………………………………………………………

………………………………………………………………………………………………

b)         What is the effect of increase in price of the above commodity on its demand?       (2mks)

………………………………………………………………………………………………

………………………………………………………………………………………………

END

Download MS Word version-Question paper->2010 KCSE Business Trial P1-001Q

Download MS Word version-Marking Scheme->2010 KCSE Business Trial P1-001M



 
Leave a comment

Posted by on September 21, 2010 in Business Studies, Paper 1

 

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

 
%d bloggers like this: