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Business Studies Paper 1 K.C.S.E Trial Examination-2011 Question Paper

Business Studies Paper 1 K.C.S.E Trial Examination-2011

Course:Business Studies

Exam Year:2013

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

Candidates Signature…………… Date…………………………….

565/1
BUSINESS STUDIES
Paper 1
July/August 2011
2 ½ Hours

NAKURU DAY SEC SCHOOL K.C.S.E TRIAL EXAMINATION-2011
Kenya Certificate of Secondary Education (K.C.S.E)

565/1
BUSINESS STUDIES
Paper 1
July/August 2011
2 ½ Hours

INSTRUCTIONS TO CANDIDATES

Answer all the questions

1. State FOUR reasons why basic wants must be satisfied first before secondary wants (4mks)

a)……………………………………………
b)……………………………………………
c)……………………………………………
2. Outline FOUR roles of the stock exchange market (4mks)
a)……………………………………………………
b)……………………………………………………
c)……………………………………………………
3. State FOUR reasons why local people are preferring to use motor cycles as a means of transport
(4mks)
a)……………………………………………………………………………………………………..……………………………………………………………………………………………………….
b)……………………………………………………………………………………………………..……………………………………………………………………………………………………….c)……………………………………………………………………………………………………..……………………………………………………………………………………………………….
4. The following diagram represents the demand and supply of a commodity (4mks)
D
Price S

Po

P1

D

Qo quantity
State FOUR effects of fixing maximum price at P1
a)………………………………………………
b)………………………………………………
c)……………………………………………
d)………………………………………………
5. Ole Lempasio a trader had the following assets and liabilities on 1st march 2009 (4mks)
Capital 120,000
Machinery 80,000
Trade creditors 10,000
Stock in trade 20,000
Cash at Bank 5,000
On 2nd march, he had the following transactions
i) Purchased goods for shs.15,000 on credit
ii) Received a cheque for shs.10,000 from a debtor
iii) Sold the machinery for 90,000 in cash
Required: -
Prepare Olee Lempasio’s Balance Sheet after the above transactions
6. Analyse the following document issued by Sitaya Traders

State FOUR circumstances under which the above document is issued (4mks)
a)…………………………………………………………………………………………
b)……………………………………………………………………………………………
c)……………………………………………………………………………………………
d)……………………………………………………………………………………………
7. Stat FOUR benefits of micro-finance to small scale business (4mks)
a)……………………………………………………………………………………………………
b)…………………………………………………………………………………………………….
c)……………………………………………………………………………………………………
d)…………………………………………………………………………………………………….
8. The following are some documents used in international trade. You are required to match the description with the correct document

Indent, letter of credit, freight note and letter of hy pothecation (4mks)

Statement Document
The shipping company forwards it to the exporter who on
payment of the charge get a receipt
Contains details of the goods required
It is an assurance that the amount due would be paid
The exporter authorizes his bank to resell the goods being exported

9. Mrs Tsuma wishes to start a supermarket. As a business student advise her on four contents of a good business structure (4mks)

a)………………………………………………………………………………
b)………………………………………………………………………………
c)………………………………………………………………………………
d)………………………………………………………………………………
10. Outline FOUR basic requirements for a warehouse to operate efficiently (4mks)
a)…………………………………………………………………………………………………….
b)……………………………………………………………………………………………………..
c)……………………………………………………………………………………………………
d)……………………………………………………………………………………………………
11. State FOUR disadvantages to a business that uses Email as a means of communication (4mks)
a)…………………………………………………………………………………………………
b)…………………………………………………………………………………………………
c)…………………………………………………………………………………………………
d)…………………………………………………………………………………………………
12. State FOUR factors that determine the size of a firm (4mks)
a)……………………………………………………………………………………………………
b)…………………………………………………………………………………………………
c)……………………………………………………………………………………………………
d)……………………………………………………………………………………………………

13. The following balances were extracted from the books of Upendo Traders (4mks)
Debtors 20 000
Salary owing 20 000
Motor vehicle 500,000
Insurance paid in advance 10 000
Loan from ICDC 200 000
Cash 30 000
Creditors 30 000

Required
Calculate
(i) Capital owned
(ii) Capital employed
14. State FOUR reasons why it is not right to use the national income figures to compare the standards of living of different countries (4mks)

a)……………………………………………………………………………………………………
b)…………………………………………………………………………………………………….
c)……………………………………………………………………………………………………....
d)……………………………………………………………………………………………………..
15. Mr. Atuya earns a salary of shs.20 000 per month. Calculate the tax he will pay if the rate is 10% for a person earning shs.10,000, 15% for a person earning between 10 000 and 15 000 and 20% for amounts above 15 000 (4mks)

16 In each of the following cases, state the type of inflation described (4mks)
Description Type of inflation
a) The price of bread has gone upto shs.40 due to an increase
in the price of wheat
b) A lot of money in circulation has led to the general increase
of prices
c) The unrest in Libya has resulted to an increase in price of
oil
d) A rise in price due to uneven growth in some sectors of
the economy

17. State FOUR problems encountered by roadside sellers (4mks)
a)……………………………………………………………………………………………………
b)…………………………………………………………………………………………………….
c)……………………………………………………………………………………………………..
d)……………………………………………………………………………………………………..

18 State FOUR factors that affect the productivity of an office worker (4mks)
a)…………………………………………………………………………………………………….
b)…………………………………………………………………………………………………….
c)……………………………………………………………………………………………………..
d)……………………………………………………………………………………………………..
19 Outline FOUR causes of unemployment (4mks)
a)…………………………………………………………………………………………………….
b)…………………………………………………………………………………………………….
c)……………………………………………………………………………………………………..
d)……………………………………………………………………………………………………..
20 State FOUR challenges faced by an entrepreneur in running his business (4mks)
a)………………………………………………………………………………………………….
b)…………………………………………………………………………………………………….
c)……………………………………………………………………………………………………..
d)……………………………………………………………………………………………………..
21 Highlight FOUR characteristics of free resources (4mks)
a)…………………………………………………………………………………………………….
b)…………………………………………………………………………………………………….
c)……………………………………………………………………………………………………..
d)……………………………………………………………………………………………………..
22 Outline FOUR reasons why the government of Kenya may opt to train the local businessmen
(4mks)
a)…………………………………………………………………………………………………….
b)…………………………………………………………………………………………………….
c)……………………………………………………………………………………………………..
d)……………………………………………………………………………………………………..

23 State FOUR principles of planning (4mks)
a)……………………………………………………………………………………………………
b)…………………………………………………………………………………………………….
c)……………………………………………………………………………………………………..
d)……………………………………………………………………………………………………..
24 Outline FOUR benefits of pooling of risks (4mks)
a)……………………………………………………………………………………………………
b)…………………………………………………………………………………………………….
c)……………………………………………………………………………………………………..
d)……………………………………………………………………………………………………..
25 State FOUR channels a farmer can use to sell his produce (4mks)
a)……………………………………………………………………………………………………
b)……………………………………………………………………………………………………
c)……………………………………………………………………………………………………
d)……………………………………………………………………………………………………

Business Studies Paper 1 K.C.S.E Trial Examination-2011 Question Paper

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