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Business Studies Semester 1 2010 Question Paper
Business Studies Semester 1 2010
Course:Certificate Of Pre-University Business
Institution: Kabarak University question papers
Exam Year:2010
COURSE CODE: PBUS 021
COURSE TITLE: BUSINESS STUDIES
STREAM: SEMESTER ONE
DAY: FRIDAY
TIME: 9.00 – 11.00 A.M
DATE: 13/08/2010
INSTRUCTIONS
1. The paper contains FIVE questions
2. Attempt question ONE and any other THREE
3. Question ONE carries 25 Marks and the remaining THREE 15 Marks each.
QUESTION ONE
a) Explain the following terms as used in business:
1. A ledger
2. Business environment
3. Accounting equation
4. Debenture
5. Market environment. (10mks)
b) The following balances were extracted from the books of Mogotio Enterprises.
Stocks of goods – 80,000, Long term loans – 93,000, Land – 300,000, Debtors -
74,000, Creditors – 160,000, Bank account – 25,000, Motor Vehicle – 275,000,
cash at hand – 16,000, Premises – 420,000, Accrued Expenses – 33,000,
Equipment – 124,000.
i. Fit in the entries in the Account Equation
ii. What is the owners equity in the business
iii. Prepare a balance sheet and show the totals. (10mks)
c) Outline the main differences between a public limited company and a private
limited company. (5mks)
QUESTION TWO
a) One of the external sources of finance for businesses is the issue of shares.
i. What is a share? (1mk)
ii. Clearly differentiate between the different types of shares that are issued by
companies to raise capital. (6mks)
b) Explain the problems of the Barter system that led to the development of money.
(8mks)
QUESTION THREE
a) Commercial Banks play important roles in the development of the economy.
Discuss any five of these roles played by these banks. (10mks)
b) Differentiate between ownership sources of finance and Non ownership sources
of finance. (5mks)
QUESTION FOUR
a) What is Money? (1mk)
b) Discuss the functions and role played by money in the development of businesses.
(8mks)
c) Differentiate the following terms as used in business transaction:
i. Assets and Liabilities
ii. A balance sheet and a trial balance
iii. Retained earnings and working capital. (6mks)
QUESTION FIVE
a) Co operatives operate based on set of universal principles. Explain any five of
these principles giving examples. (10mks)
b) Briefly explain any five advantages that are common between a partnership and a
joint stock company. (5mks)
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