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2010 KCSE Business Studies Revision P1-002

2010 KCSE Business Studies Revision P1-002

565/1

BUSINESS STUDIES PAPER 1

Time: 2 Hours

INSTRUCTIONS TO CANDIDATES

  • Attempt ALL the questions in the spaces provided.

1.         State four ways in which the government can influence an increase in the demand for a product

(4mks)

a)……………………………………………………………………………………………………..

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

b)…………………………………………………………………………………………………….

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

c)…………………………………………………………………………………………………….

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

d)……………………………………………………………………………………………………..

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

2.         List FOUR monetary tools the Central Bank uses to control credit.                                     (4mks)

a)……………………………………………………………………………………………………..

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

b)…………………………………………………………………………………………………….

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

c)…………………………………………………………………………………………………….

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

d)……………………………………………………………………………………………………..

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

3.         Outline FOUR roles of an entrepreneur in an organization.                                                  (4mks)

a)……………………………………………………………………………………………………..

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

b)…………………………………………………………………………………………………….

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

c)…………………………………………………………………………………………………….

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

d)……………………………………………………………………………………………………..

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

4.         Complete the following sentences by filling in the blank spaces.                                          (4mks)

(i)         Exchange of goods without use of money __________________________

(ii)        A state owned company is called a  __________________________

(iii)       The person who issues a cheque is called the ______________________ of the cheque

(iv)       A wholesaler who does not sell on credit and does not provide transport to the buyer is a                          _____________________________ wholesales.

5.         Under what circumstances will the manager of an organization communicate to the subordinate staff.                                                                                                                                          ( 4 mks)

a)……………………………………………………………………………………………………..

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

b)…………………………………………………………………………………………………….

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

c)…………………………………………………………………………………………………….

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

d)……………………………………………………………………………………………………..

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

6.         State FOUR factors that could hasten the economic development of a country.                  (4mks)

a)……………………………………………………………………………………………………..

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

b)…………………………………………………………………………………………………….

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

c)…………………………………………………………………………………………………….

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

d)……………………………………………………………………………………………………..

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

7.         The following information was available in the books of accounts of Eshitoyi Enterprises as 30th June 2008.

Sales 540, 000

Purchases 330.000

Stock 1st July 2007 60,000

Sales were marked up 50 % on the cost price

You are required to prepare Eshitoyi Enterprises trading Account for the year ended 30th June 2008 showing clearly.

(i)         Gross profit                                                                                                                 (2mks)

(ii)        Closing stock                                                                                                              (2mks)

8.         For each of the following transaction, state the account to be debited and the account to be credited

Date Transaction Account to be debited Account to be credited
i) Bought goods for sale and paid by cheque
ii) Donated personal savings to the business
iii) Cash sales banked
iv) Rent accrued

9.         Under what circumstances would insurance companies in Kenya opt to reinsure themselves

(4mks)

a)……………………………………………………………………………………………………..

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

b)…………………………………………………………………………………………………….

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

c)…………………………………………………………………………………………………….

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

d)……………………………………………………………………………………………………..

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

10.       Highlight FOUR ways in which the government can use to control inflation.                      (4mks)

a)……………………………………………………………………………………………………..

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

b)…………………………………………………………………………………………………….

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

c)…………………………………………………………………………………………………….

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

d)……………………………………………………………………………………………………..

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

11.       The book keeper of Alpha Traders extracted the following information from the accounting records

1.7.2006 30.6.2007
Debtors 525.000 600,000
Discount Allowed 15,000
Sales Returns 30,000
Dishonoured cheques 10,000

During the year ended 30.6.2007, Alpha traders received 800,000 from debtors while cash sales were 150,000

Determine the sales for the year.                                                                                            (5mks)

12.       Give FOUR assumptions associated with monopolistic competition market structure.         (4mks)

a)……………………………………………………………………………………………………..

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

b)…………………………………………………………………………………………………….

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

c)…………………………………………………………………………………………………….

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

d)……………………………………………………………………………………………………..

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

13.       State FOUR reasons for starting a business.                                                                          (4mks)

a)……………………………………………………………………………………………………..

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

b)…………………………………………………………………………………………………….

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

c)…………………………………………………………………………………………………….

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

d)……………………………………………………………………………………………………..

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

14.       Outline the various activities that facilitate the following forms of utility.                           (4mks)

(i)         Place utility

………………………………………………………………………………………………………………………………………………………………………………………………………………

(ii)        Possession utility

………………………………………………………………………………………………………………………………………………………………………………………………………………

(iii)       Time utility

………………………………………………………………………………………………………………………………………………………………………………………………………………

(iv)       Form Utility

………………………………………………………………………………………………………………………………………………………………………………………………………………

15.       What FOUR factors determine the size of a firm?                                                                 (4mks)

a)……………………………………………………………………………………………………..

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

b)…………………………………………………………………………………………………….

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

c)…………………………………………………………………………………………………….

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

d)……………………………………………………………………………………………………..

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

16.       Onsogo Traders sell goods on the following terms of sale: 10 % cash discount , 12 % trade discount if goods are paid for in 5 days , 8 % if paid for in 10 days and 5 % if paid for in 15 days

Makau bought goods worth Ksh. 200,000 on 2nd of March 2008 and paid for them on 10th March 2008. Calculate how much Makau paid for the goods.                                                        (3mks)

17.       Kenya is fast embracing East Africa Community what benefits is Kenya likely to experience from this arrangement.                                                                                                               (4mks)

a)……………………………………………………………………………………………………..

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

b)…………………………………………………………………………………………………….

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

c)…………………………………………………………………………………………………….

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

d)……………………………………………………………………………………………………..

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

18.       How can effective management of a business lead to its success.                                         (4mks)

a)……………………………………………………………………………………………………..

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

b)…………………………………………………………………………………………………….

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

c)…………………………………………………………………………………………………….

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

d)……………………………………………………………………………………………………..

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

19.       Complete the following table.                                                                                                            (4mks)

Fixed Assets 

Sh.

Currents Assets 

Sh.

Long term Liabilities  

Sh.

Current Liabilities  

Sh.

Owner Equity 

Sh.

Working capital  

Sh.

100,000 20,000 60,000 10,000
50,000 40,000 150,000 15,000
200,000 150,000 80,000 20,000
350,000 50,000 20,000

20.       Despite air transport being expensive, it is the preferred mode of transport over long distance.

Outline FOUR reasons for this preference.                                                                            (4mks)

a)……………………………………………………………………………………………………..

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

b)…………………………………………………………………………………………………….

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

c)…………………………………………………………………………………………………….

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

d)……………………………………………………………………………………………………..

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

21.       The government raises most of its revenue through taxes. Highlight  FOUR reasons for taxation.

a)……………………………………………………………………………………………………..

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

b)…………………………………………………………………………………………………….

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

c)…………………………………………………………………………………………………….

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

d)……………………………………………………………………………………………………..

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

22.       Name the source document and source books to which each of the following descriptions relate.

( 4mks)

a) DESCRIPTION SOURCE DOCUMENT SOURCE BOOK
Issued by a seller to a buyer for cash paid
b) Issued by the seller to a credit buyer to demand payment
c) Used to correct in overcharge for goods returned
d) Show summary of transactions between a buyer and a sellers

23.       State FOUR ways in which office documents can be reproduced.                                       (4mks)

a)……………………………………………………………………………………………………..

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

b)…………………………………………………………………………………………………….

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

c)…………………………………………………………………………………………………….

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

d)……………………………………………………………………………………………………..

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

24.       Why would a business choose to use bill boards to promote its products.                             (4mks)

a)……………………………………………………………………………………………………..

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

b)…………………………………………………………………………………………………….

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

c)…………………………………………………………………………………………………….

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

d)……………………………………………………………………………………………………..

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

25.       Factors leading to a decline in birth rates

a)……………………………………………………………………………………………………..

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

b)…………………………………………………………………………………………………….

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

c)…………………………………………………………………………………………………….

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

d)……………………………………………………………………………………………………..

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

—————–

End

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Posted by on November 9, 2010 in Business Studies, Paper 1

 

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2010 KCSE Business Studies Revision P2-003

2010 KCSE Business Studies Revision P2-003

565/2

BUSINESS STUDIES PAPER 2

Time: 2 ½ Hours

INSTRUCTIONS TO CANDITATES:

  • Answer any five questions.
  • Write your answers in the answer booklet provided.
  • All questions carry equal marks

1.   (a)  Explain five problems that are likely to be experienced if intermediaries                              are eliminated from the chain of distribution.                                                                                    [10 marks]

(b)  Explain five roles of a commercial attachee in promoting international                                trade.                                  [10 marks]

2.   (a)  Explain five reasons as to why oligopoly markets arise.                                 [10 marks]

(b)  The following balances were extracted from the books of Juja Traders                                            on 31st December 2009.

ksh

Opening stock

30,000

Equipment at cost

63,000

Purchases

85,500

Sales

104,000

Discount received

3,750

Returns outwards

12,500

Returns inwards

2,500

Salaries

1,050

Telephone charges

7,550

Water bills

10,500

Creditors

1,000

Debtors

9,750

Electricity expenses

500

Drawings

13,500

Insurance paid

11,000

Additional information:

i)        Closing stock was valued at sh. 15,000.

ii)      Telephone charges prepaid sh. 550

iii)    Outstanding water bills sh. 650

iv)    Depreciation on equipment 10% p.a. on cost.

v)      Carriage inwards and carriage outwards sh. 5,500 and 5,000 respectively.

Prepare:

Juja Traders profit and loss account for the year ended 31st December 2009.                                                                        [10 marks]

3.   (a)  Explain five problems associated with the output approach in the                                        computation of national income of a country.          [10 marks]

(b)  The following are transactions that took place during the month of                               June 2009 for Mr. Ali.

June 1  Balance of cash at bank was sh. 25,000 and cash in hand                                                                      was sh. 10,000.

June 2  Bought goods in cash sh. 1000

June 3  Paid rent by cash shs. 6000

June 4  Received cheques from the following debtors after allowing a                                                        2% discount in each case Jane sh. 980, Willison sh. 1960.

June 8  Paid the following accounts by cheque in each case deducting                                                        a 5% discount.  Wangari sh. 3,000 Mati shs. 1,200.

June 13       Bought a computer by cheque sh. 10,000.

June 20       Withdrew cash sh.1,000 for private use.

June 25       Cash saves sh. 2,000.

June 26       Banked cash amounting to sh. 1,000.

June 29       Received sh. 3,000 cash from Wanyonyi who is a credit                                                                  customer.

Prepare:    A three column cashbook duly balanced.    [10 marks]

4.   (a)  Explain any FOUR factors that may be used in determining the size of a                            firm.                                         [8 marks]

(b)  The following information relates to Kagendo Trader as per the dates                                             shown.

01-01-06

31-12-06

Premises

80,000

145,000

Office machine & equipments

25,000

28,000

Stock

18,000

20,000

Rent received in advance

6,000

8,000

Outstanding standing

10,000

4,000

Creditors

35,000

31,000

Debtors

6,000

8,000

Motor vehicles

150,000

150,000

Kagendo had prepared a summary of cash transaction for the year 2006 as shown below.

Cash book summary
Cash in hand b/d

5,000

Salaries

101,000

Cash at bank b/d

46,000

Drawings

12,000

Debtors

90,000

Creditors

50,000

Cash sales

102,000

Cash purchases

70,000

Rent

116,000

Motor vehicle

85,000

Insurance & rates

15,000

Cash in hand c/d

8,000

18,000

359,000

359,000

Required: Prepare Kagendo’s trading profit and loss a/c for the year ended 31st Dec. 2006 and a balance sheet as at 31st Dec. 2006. [12 marks]

5.   (a)  Outline five changes that may take place when a country is                                                 experiencing economic development.                                  [10 marks]

(b)  Explain five factors that may lead to a deficit in balance of payment in a                            country.                              [10 marks]

6.   (a)  It has been the will of the government of Kenya to create 500,000 jobs per year.  Explain five reasons which have hindered the achievement of                                                            this goal.                                                   [10 marks]

(b)  Explain five importance of filing documents in an organization.

[10 marks]

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END

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Posted by on November 7, 2010 in Business Studies, Paper 2

 

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2010 KCSE Business Studies Revision P2-002

2010 KCSE Business Studies Revision P2-002

565/2

Time: 2 ½ Hours

BUSINESS STUDIES PAPER 2

INSTRUCTIONS TO CANDITATES:

  1. Answer any FIVE questions.
  2. All questions carry equal marks.

1. a) Discuss five tools used by the  Central bank to control the monetary  policy in a country.                                                                                                                                                              (10mks)

b) The world has been experiencing global economic recessions. Explain five effects of this economic recession in Kenya.                                                                                                        (10mks)

2. a) The following trial balance relate to  Gatundia Traders as at  31st Dec 2009.

Gatundia Traders

Trial balance

As at 31st Dec 2009.

Dr.                                     Cr.

Fixed assetsStock 1/1/2009

Purchases & sales

Bad debts

Debtors & Creditors

Salaries

Cash

Bank

Return in & outwards

General expenses

Capital

Shs.

82,000

12,500

70,000

4,000

10,500

14,000

2,500

 

1,500

5,200

202,200

Shs.

 

 

95,000

 

8,500

 

 

7,500

2,400

 

88,800

202,200

 

Additional information

i)                    Closing stock valued at shs. 6,500.

ii)                  Salary outstanding    2,800.

Required

i)                    Profit and loss account as at 31st Dec 2009.

ii)                  Balance sheet as at that date.                                                                                     (10mks)

b) Explain five benefits that will accrue to a trader who sell goods on cash basis only             (10mks)

3. a) Explain five reasons why the Government imposes tax on its Citizens.                              (10mks)

b) The following information was obtained from Kathure’s Business for the year ended 30th June 2009.

Creditors opening balance            shs. 165,000

Debtors opening balance              shs. 263,000

Payment to creditors’                    shs. 296,000

Receipts from debtors’                 shs. 309,000

Discount allowed                           shs. 34,000

Discount received                         shs. 29,500

Purchases return                            shs. 44,600

Sales return                                   shs.36, 400

Debtors closing balance                shs. 189,500

Creditors closing balance              shs. 143,400

Required

i)                    determine credit sales

ii)                  Determine credit purchases                                                                                        (10mks).

4. a) Explain five benefits that will accrue to Kenya from joining the East African Community.                                                                                                                                                           (10mks).

b) Discuss five negative effects of inflation in the Kenyan economy.                                     (10mks).

5. a) Discuss five reasons for disequilibrium in Balance of payment in Developing countries.                                                                                                                                                              (10mks).

b) Explain five factors that limit the size of the firm.                                                             (10mks).

6. a) Hussein Traders had the following balances as at June 1st 2009.

Cash shs 10,000

Bank shs  4300.

During the month of June, the following transactions took place.

June 3.  Fatuma a debtor settled her account of shs 8.000 by cheque of shs 7,500

6. Paid rent in cash shs 4,000.

10. Deposited shs3000 into the business Bank account from the cash box.

15. Settled Obama’s account of shs 10,000and allowed him a discount of 1% .

18. Deposited shs 14,000 in the Business Bank account from private sources.

21. Cash sales shs 6,000.

24. Wanjiku a debtor settled her account of shs 4,000 having been allowed a discount of 20%.

26. Purchased furniture shs 2,600 by cheque.

28. Received shs 1,800 cash from Mohammed.

30. Bank all the cash in the cash box except shs 800.

Required

i) Prepare a three column cash book and balance it off.                                                         (10mks).

b) Explain three reasons why its better for Kenya to borrow internally rather than from external sources.                                                                                                                                (6mks).

c) Use a diagram to explain the incidence of tax under perfectly inelastic demand.                   (4mks).

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Posted by on November 6, 2010 in Business Studies, Paper 2

 

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2010 KCSE Business Trial P2-001

2010 KCSE Business Trial P2-001 Name…………………………………………………                      Index No. ……………………. School ………………………………………………… 565/2

BUSINESS STUDIES

Paper 2

JULY/ AUGUST 2010 Time: 2 ½ Hours 2010 KCSE Business Trial P2-001 RARIEDA DISTRICT JOINT EVALUATION TEST- 2010 Kenya Certificate of Secondary Education (K.C.S.E) 565/2

BUSINESS STUDIES

Paper 2

JULY/ AUGUST 2010 Time: 2 ½ Hours

INSTRUCTIONS TO CANDIDATES.

  1. This paper consists of six questions.
  2. Answer any five questions.
  3. Write your answers in the answer booklet provided.
  4. All questions carry equal marks.

This paper consists of 3 printed pages. Candidates should check the question paper to ensure that all pages are printed as indicated and no questions are missing 1.         (a)       Explain five circumstance under which a partnership may be dissolved.       (10 marks) (b)        Explain five policies found under general accident ,Insurance                      (10 marks 2.         (a)        Draw a labeled diagram to illustrate the determination of price and output under Monopoly.                                                                                                       (10 marks) (b)        Highlight five purposes of taxation.                                                               (10 marks) 3.         (a)        Highlight five differences between Commercial banks and non-bank financial Institutions.                                                                                                     (10 marks) (b)        A business enterprise had the following transactions in September 2008. September 1: Bought goods at Shs. 10,000 from Baraza. September 3: Sold goods at Shs. 3,000 on credit to Kosgey. September 8: Returned goods worth Shs. 2,000 to Owino September 12: Bought goods worth Shs. 5,000 on credit from Patel Required: (i)        Record the above transactions in the required journals.                                 (7 marks) (ii)        Shows the posting from journals to ledger accounts                                      (3 marks) 4.         (a)        Explain five uses of National Income statistics                                              (10 marks) (b)        Describe five factors that determine price elasticity of demand.                               (10mks) 5.         (a)        Most firms have introduced customer care services as part of their promotion techniques. Highlight five benefits of this method to a firm. (10 marks) (b)        The table below shows the total cost of a certain produce of the given out-put levels

Out – put level Total cost
0 300
10 380
20 470
30 550
40 620
50 680
60 730
70 770
80 860
90 1080

Add columns to show the following at each level of out – put.                                 (10mks) i.          Fixed cost. ii.         Variable cost. iii.        Average variable cost. iv.        Marginal cost. 6.         (a)        Explain the roles played by Kenya Ports Authority in ensuring that sea transport.   (10mks) operate efficiently. (b)        Below is a Trial balance belonging to Mumias Traders. Mumias Traders Trial Balance as at 31/12/2004

Dr Cr
Capital 125,000
Purchases 45,000
Carriage outwards 2,000
Stock 25,000
Sales 120,000
Carriage inwards 1,200
Insurance 5,900
Salaries 12,450
Discount allowed 3,400
Debtor 25,000
Creditors 15,500
Discount received 1,950
Bank 14,500
Machinery 128,000
262,450 262,450

Additional information. v.         Closing stock Kshs. 25,000 vi.        Outstanding salaries Kshs. 450 vii.       Insurance Kshs. 900 has been paid in advance viii.      Depreciate machinery by 10% on cost – Required: – c)         Prepare Trading Profit and loss account for the period ended 31/12/2004. d)         Balance sheet as at 31/12/2004.                                                          (10 marks) Download MS versions of :

This Question paper->2010 KCSE Business Trial P2-001

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Posted by on October 14, 2010 in Business Studies, Paper 2

 

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2010 KCSE Business Trial P1-001

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

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

 
 
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