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Business Studies Question Paper

Business Studies

Course:Secondary Level

Exam Year:2012

NAME:………………………………………………………..…………INDEX ………………………..…..…..

SCHOOL:………………………………………………SIGNATURE…………….……… DATE…….…..…

565/1
BUSINESS STUDIES
PAPER 1
JULY / AUGUST, 2012
2 HOURS

KISUMU EAST AND NORTH DISTRICT JOINT EXAMINATION
Kenya certificate of secondary education 2010

565/1
BUSINESS STUDIES
PAPER 1
JULY / AUGUST 2012

INSTRUCTIONS TO CANDIDATES
? Answer all questions in the spaces provided in the question paper
? All your workings to be shown
For Examiners Use Only
1 2 3 4 5 6 7 8 9 10 11 12 13

14 15 16 17 18 19 20 21 22 23 24 25 TOTAL MARKS

1. Outline four challenges associated with the satisfaction of human wants. (4mks)
a) ...............................................................................................................................................
b) ...............................................................................................................................................
c) ...............................................................................................................................................
d) ..............................................................................................................................................................................................................................................................................................
2. Highlight four ways in which manufacturers can enhance consumer protection. (4mks)
a) ...............................................................................................................................................
b) ...............................................................................................................................................
c) ...............................................................................................................................................
d) ..............................................................................................................................................................................................................................................................................................
3. State four ways in which the government may influence the price of a commodity. (4mks)
a) ...............................................................................................................................................
b) ...............................................................................................................................................
c) ...............................................................................................................................................
d) ..............................................................................................................................................................................................................................................................................................
4. Outline four features of demand deposit account. (4mks)
a) ...............................................................................................................................................
b) ...............................................................................................................................................
c) ...............................................................................................................................................
d) ..............................................................................................................................................................................................................................................................................................
5. The balances below relates to Eureka Traders for the year ended 31st December 2010.
Shs.
Capital ?
2 year Bank loan 230,020
Creditors 95,200
Fixed assets 480,000
Current assets 145,220
Determine the following
i.) Working capital. (2mks)

ii.)Capital employed. (2mks)

6. Classify the following accounts as either real or nominal. (4mks)
Account Class
a) Delivery van
b) Purchases
c) Insurance premium
d) Commission income
7. Highlight four measures that the government would undertake to provide investors with an enabling business environment. (4mks)
a) ...............................................................................................................................................
b) ...............................................................................................................................................
c) ...............................................................................................................................................
d) ..............................................................................................................................................................................................................................................................................................
8. Outline four circumstances under which downwards communication would be appropriate in an organization. (4mks)
a) ...............................................................................................................................................
b) ...............................................................................................................................................
c) ...............................................................................................................................................
d) ..............................................................................................................................................................................................................................................................................................
9. State four limitations of using national income statistics to compare the standards of living in different countries. (4mks)
a) ...............................................................................................................................................
b) ...............................................................................................................................................
c) ...............................................................................................................................................
d) ..............................................................................................................................................................................................................................................................................................

10. State four merits of using indirect taxes to raise government revenue. (4mks)
a) ...............................................................................................................................................
b) ...............................................................................................................................................
c) ...............................................................................................................................................
d) ..............................................................................................................................................................................................................................................................................................

11. State four components of a business plan. (4mks)
a) ...............................................................................................................................................
b) ...............................................................................................................................................
c) ...............................................................................................................................................
d) ..............................................................................................................................................................................................................................................................................................

12. Outline four demerits of using pipeline to transport petroleum products. (4mks)
a) ...............................................................................................................................................
b) ...............................................................................................................................................
c) ...............................................................................................................................................
d) ..............................................................................................................................................................................................................................................................................................

13. Highlight four circumstances which may make personal selling appropriate as a way of product Promotion. (4mks)
a) ...............................................................................................................................................
b) ...............................................................................................................................................
c) ...............................................................................................................................................
d) ..............................................................................................................................................................................................................................................................................................
14. Maneno traders had the following balances as at 6thJanuary 2012. (4mks)
Land & building 150,000
Cash in hand 25,500
Creditors 15,000
Bank overdraft 30,000
Purchases 18,000
Sales 30,000
Returns inwards 5,000
Required;
A trial balance as at 6thJanuary 2012

15. Outline four monetary methods that the government can use to control inflation. (4mks)
a) ...............................................................................................................................................
b) ...............................................................................................................................................
c) ...............................................................................................................................................
d) ..............................................................................................................................................................................................................................................................................................

16. Name the office machines used to perform the following functions. (4mks)
Function Machine
a) To fold documents, place them in the envelope and seal.
b) Used to transmit printed messages such as Letters ,maps diagrams and photographs
c) Reproducing documents from a master copy(stencil)
d) Printing postage impressions on the envelopes

17. Outline four distinctions between monopolistic competition and oligopoly. (4mks)
Monopolistic competition Oligopoly
(a)

(b)

(c)

(d)

18. Highlight four disadvantages of producer co-operative societies. (4mks)
a) ...............................................................................................................................................
b) ...............................................................................................................................................
c) ...............................................................................................................................................
d) ..............................................................................................................................................................................................................................................................................................
19. State four objectives of export processing zones in Kenya. (4mks)
a) ...............................................................................................................................................
b) ...............................................................................................................................................
c) ...............................................................................................................................................
d) ..............................................................................................................................................................................................................................................................................................
20. Outline four advantages of overpopulation in Kenya. (4mks)
a) ...............................................................................................................................................
b) ...............................................................................................................................................
c) ...............................................................................................................................................
d) ..............................................................................................................................................................................................................................................................................................
21. Highlight four benefits of a bonded warehouse to the government. (4mks)
a) ...............................................................................................................................................
b) ...............................................................................................................................................
c) ...............................................................................................................................................
d) ..............................................................................................................................................................................................................................................................................................
22. State four features of a departmental store. (4mks)
a) ...............................................................................................................................................
b) ...............................................................................................................................................
c) ...............................................................................................................................................
d) ..............................................................................................................................................................................................................................................................................................

23. Outline four conditions which are necessary for a successful development plan. (4mks)
a) ...............................................................................................................................................
b) ...............................................................................................................................................
c) ...............................................................................................................................................
d) ..............................................................................................................................................................................................................................................................................................

24. State four purposes of a three column cash book. (4mks)
a) ...............................................................................................................................................
b) ...............................................................................................................................................
c) ...............................................................................................................................................
d) ..............................................................................................................................................................................................................................................................................................

25. Highlight four features of general insurance. (4mks)
a) ...............................................................................................................................................
b) ...............................................................................................................................................
c) ...............................................................................................................................................
d) ..............................................................................................................................................................................................................................................................................................

Business Studies Question Paper

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