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Kcse 2011 Business Studies Paper 1 Question Paper

Kcse 2011 Business Studies Paper 1

Course:Business Studies

Exam Year:2011

1 Identify the types of wholesalers described in the statements given below: (4 marks)
(a) A wholesaler who trades in maize grain only.
(b) A wholesaler who supplies goods to most of the traders in Kitui, Mbooni and Machakos districts in the Eastern part of Kenya.

(c) A wholesaler who buys tomatoes from farmers in rural areas and sells the same to other wholesalers in urban areas.

(d) A wholesaler who trades in a wide variety of human medicine.
2 Outline four factors that should be considered before buying office equipment. (4 marks)
(a) ....................................................
(b) ...............................................
(c) ..............................
(d) .............................
3 Outline four malpractices by traders against which consumers may need protection by the
government. (4 marks)
(a) ........................
(b) ...............................
(c) ............................................
(d) ...........................
4 State three features of an insurable interest. (3 marks)
(a) ...................................................
(b) .........................................
(c) .........................................................
10.Indicate the reward associated with each of the factors of production in the table below.
(4 marks)

Factor of Production
Reward

a
Land

b
Labour

c
Capital

d
Entrepreneurship

11 . Outline four circumstances under which a co-operative society may be dissolved. (4 marks)
(a) .......................
(b) .........................................
(c) ..........................
(d) .................................,................
12 Highlight four features of a bonded warehouse. (4 marks)
(a) ..........................
(b) .....................
(c) ...............................
(d) ........................
13 Outline four factors that may be considered when measuring the size of a firm.
(4 marks)
(a) .....................
(b) ......................
(c) ..............................................................................
(d) .....................................

14. The following transactions were extracted from the books of Sarah Traders for the month of March 2006.
March 10: Purchased goods on credit worth Ksh 200,000 from Salim Traders
March 25: Sold goods on credit worth Ksh 420,000 to Shah Traders
Record the above transactions in the ledger accounts below: (4 marks)

15. On 2nd November 2006, Oromo received an invoice for Ksh 12,000. Terms of payment were
trade discount 5% and cash discount 10%, if payment is made within 30 days.
Determine the amount paid if payment was made on 28th November 2006. (4 marks)

16 The following balances were extracted from the books of Nafula Traders as at 31st December 2005.
Ksh
Current Liabilities 150,000
Net profit 50,000
Total assets 500,000
2 years Bank loan 100,000
Calculate the rate of return on capital. (4 marks)

17 The information given below was extracted from the books of Amina Traders on 31st December 2006.
Ksh
Purchases 260,000
Opening stock 75,000
Carriage on purchases 12,500
Closing stock 27,500
Goods were sold at a mark-up of 25%.
Using the information given above, prepare Amina Traders' Trading Account. (4 marks)

18 State four benefits that a farmer may get by transporting produce to the market by road.
(4 marks)
(a) .................................................................................................
(b) .............................. .................................................................
(c) .............................. .................................................................
(d) .............................. ..................................................................

19 . The table given below represents the supply schedule of sukuma wiki (kales) for eight weeks in the months of January and February 2009.
WEEK
1
2
3
4
5
6
7
8

QUANTITY (METRIC
TONNES)
505
485
430
375
340
290
215
195

(4 marks)

Outline four causes of the trend in the table.

(a) .............................
(b) ............................
(c) .......................
(d) ...........................................
20 Outline four ways in which households contribute to national income of a country.
(4 marks)
(a) .............................................................................................
(b) .....................................
(c) .........................
(d) .......................
21 Outline four circumstances in which a trader may use oral communication. (4 marks)
(a) ..........................
(b) ..........................................
(c) ........................
(d) .......................................
22 Outline four reasons why a firm may remain small. (4 marks)
(a) ...........................
(b) ...........................
(c) ................................................................................................
(d) ..................................................,.....................................................

23 On 1st January 2007, Muthoni Traders Cash Book showed a credit balance of Ksh 150,000 at the bank and a debit balance of Ksh 25,250 in hand. During the month, the following transactions took place:
January 5: Made cash sales for Ksh 21,500
January 16: Received a cheque for Ksh 360,000 from a debtor.
January 28: Paid a creditor Ksh.100,000; partly by a cheque of Ksh 80,000 and the
balance in cash.

Prepare a Two-column Cash Book for the month. (5 marks)

MUTHONI TRADERS CASH BOOK

CR
DR
Date
Details
Cash
(Kshs)
Bank
(Kshs)
Date
Details
Cash
(Kshs)
Bank
(Kshs)

Date
Details
Cash
(Kshs)
Bank
(Kshs)
Date
Details
Cash
(Kshs)
Bank
(Kshs)

24 State four benefits that a trader may get by advertising products in a newspaper. (4 marks)
(a) ................................ ...........................................................................
(b) ....................... ....................................................................................
(c) .............................................................................................................
(d) ...............................................................................................................

25 The cost of consumer goods and services for a representative basket of an average family is given below.
Year 2006 2007
Prices Ksh 1200 Ksh 1600
Determine the increase in Consumer Price Index using 2006 as the base year. (4 marks)

Kcse 2011 Business Studies Paper 1 Question Paper

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