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Business Studies Paper 1 Question Paper
Business Studies Paper 1
Course:
Business Studies
Institution:
Form 4 question papers
Exam Year:
2008
Business Studies Sample Paper 1
Answer all questions in the spaces provided
1. Highlight four causes of business failure in Kenya (4mks)
2. State four importance of entrepreneurship (4mks)
3. Define "levels of production" and state the three levels of production (4mks)
4. State four factors determining the supply of labour (4mks)
5. State four business practices required to create a healthy business environment (4mks)
6. Outline four characteristics of direct production (4mks)
7. State four rewards of labour as a factor of production (4mks)
8. Highlight four functions of an office (4mks)
9. Outline four factors influencing price elasticity of demand (4mks)
10. 'A perfect competition market is therefore a hypothetical situation which makes certain assumptions'. In relation to this statement, state the assumptions of a perfectly competitive market (4mks)
11. Highlight the role played by intermediaries in the chain of distribution (4mks)
12. State four uses of national income statistics (4mks)
13. State four positive implications of a rapidly growing population (4mks)
14. The following assets and liabilities belonged to Munyasia stores as at 31 March 2005.
Buildings shs. 8,000; creditors shs. 32,000; stock shs. 24,000; cash at bank shs. 120,000; cash in hand shs. 40,000; loan from HFCK shs. 100,000 and capital shs. 260,000
During the month of April 2005 the following transactions took place:
April 1- sold goods worth shs. 2,000 cash
April 2- paid creditors shs. 8,000 in cash
April 10- Received shs. 2,000 from his debtors in cash
April 15- bought a motor van for shs. 35,000 paying by cheque
Prepare a balance sheet as at 15 April 2005 (5mks)
16. Outline four methods through which the government gets involved in business activities (4mks)
17. State four factors contributing to the rapid growth of savings and credit cooperative societies in Kenya (4mks)
18. Outline four reasons why communication may not be effective (4mks)
19. State four characteristics of economic resources (4mks)
20. State the level of production relating to each of the following occupations (4mks)
a. Manufacturing
b. Mining
c. Banking
d. Teaching
e. Fishing
f. Construction
g. Insurance
h. Nursing
21. Define scarcity and choice of economic resources and state the relationship between the two terms as used in business studies (4mks)
22. Outline the four features of private limited companies (4mks)
23. Describe four major functions of money (4mks)
24. Highlight on four difficulties encountered in international trade (4mks)
25. State four types of mobility of factors of production (4mks)
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