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Business Studies Paper 1 - Bomet District Mock 2008 Question Paper

Business Studies Paper 1 - Bomet District Mock 2008

Course:Business Studies

Exam Year:2008

This is a full paper containing 25 questions. The paper was administered in Bomet District in 2008 as mock exam.
The paper contains about four accounting questions testing such concepts as preparation of trading account, determination of purchase given other relevant information, preparation of a two column cash book and also effects of different transactions on ledger accounts.
You may consider picking this paper for your students or even for your own revision. Take a look.

565/1
BUSINESS STUDIES
PAPER 1
July/August 2008
2 HOURS

Kenya Certificate of Secondary Education 2008

565 / 1
BUSINESS STUDIES
PAPER 1

INSTRUCTIONS TO CANDIDATES
? Answer all questions in the spaces provided

For official use.

QUESTIONS 1 2 3 4 5 6 7 8 9 10 11 12
MARKS

13 14 15 16 17 18 19 20 21 22 23 24 25

This paper consists of 10 printed pages. Candidates should check the question paper to ensure that all pages are printed as indicated and no questions are missing.

1. Outline four benefits of entrepreneurship to the government. (4mks)

(i) …………………………………………………………………………………………………………………………………………………………………………………………
(ii) …………………………………………………………………………………………………………………………………………………………………………………………
(iii) …………………………………………………………………………………………………………………………………………………………………………………………
(iv) …………………………………………………………………………………………………………………………………………………………………………………………

2. State four tools of monetary policy which can be employed by the central bank to regulate the circulation of money in an economy. (4mks)
(i) …………………………………………………………………………………………………………………………………………………………………………………………
(ii) …………………………………………………………………………………………………………………………………………………………………………………………
(iii) …………………………………………………………………………………………………………………………………………………………………………………………
(iv) …………………………………………………………………………………………………………………………………………………………………………………………

3. Highlight four benefits that accrue to a firm as a result of its expansion. (4mks)
(i) …………………………………………………………………………………………………………………………………………………………………………………………
(ii) …………………………………………………………………………………………………………………………………………………………………………………………
(iii) …………………………………………………………………………………………………………………………………………………………………………………………
(iv) …………………………………………………………………………………………………………………………………………………………………………………………

4. Explain four reasons which have curbed the population growth in developing countries.
(4mks)

(i) …………………………………………………………………………………………………………………………………………………………………………………………
(ii) …………………………………………………………………………………………………………………………………………………………………………………………
(iii) …………………………………………………………………………………………………………………………………………………………………………………………
(iv) …………………………………………………………………………………………………………………………………………………………………………………………

5. Highlight four shortcoming of using income method to compute a country’s national income. (4mks)
(i) …………………………………………………………………………………………………………………………………………………………………………………………
(ii) …………………………………………………………………………………………………………………………………………………………………………………………
(iii) …………………………………………………………………………………………………………………………………………………………………………………………
(iv) …………………………………………………………………………………………………………………………………………………………………………………………

6. State four benefits of export processing zones. (4mks)

(i) …………………………………………………………………………………………………………………………………………………………………………………………
(ii) …………………………………………………………………………………………………………………………………………………………………………………………
(iii) …………………………………………………………………………………………………………………………………………………………………………………………
(iv) …………………………………………………………………………………………………………………………………………………………………………………………

7. Give four reasons for the widespread cost push inflation. (4mks)
(i) …………………………………………………………………………………………………………………………………………………………………………………………
(ii) …………………………………………………………………………………………………………………………………………………………………………………………
(iii) …………………………………………………………………………………………………………………………………………………………………………………………
(iv) …………………………………………………………………………………………………………………………………………………………………………………………

8. State four reasons why letters may not be an effective means of communication. (4mks)

(i) …………………………………………………………………………………………………………………………………………………………………………………………
(ii) …………………………………………………………………………………………………………………………………………………………………………………………
(iii) …………………………………………………………………………………………………………………………………………………………………………………………
(v) …………………………………………………………………………………………………………………………………………………………………………………………

9. State four ways in which the government can create an enabling environment. (4mks)
(i) …………………………………………………………………………………………………………………………………………………………………………………………
(ii) …………………………………………………………………………………………………………………………………………………………………………………………
(iii) …………………………………………………………………………………………………………………………………………………………………………………………
(iv) …………………………………………………………………………………………………………………………………………………………………………………………

10. Classify the following as either real, nominal or personal accounts. (4mks)

Account Real, nominal or personal
(i) Kugo (a creditor)
(ii) Sales
(iii) Additional capital
(iv) Motor vehicles

11. The following information was extracted from the records of chepkulo investments for
the year ending 30th June 2007
shs

Stock of goods 1st July 2006 ------------------------------150,000
Stock of goods 30th June 2007-------------------------------140,000
Purchases--------------------------------------------720,000
Returns outwards-----------------------30,000
Returns inwards------------------20,000
Sales-------------------------------950,000

Required:

Prepare the trading account for the period ending 30th June 2007. (4mks)

12. The following details were extracted from the books of Chunga Mali stores on 31st
December 2007.
shs

Creditors -----------------------1:1:07----------------52,000
Creditors--------------------31:12:07-----------------48,000
Cash paid to creditors during the year--------------160; 000
Cash purchases----------------------------------120,000
Discount received-------------------------------3,000
Returns outwards---------------------------------7,000

Required:

Determine the purchases for the period. (4mks)

13. The following terms are used in relation to a limited liability company, memorandum of Association, debenture, intra vires and articles of association. Match the appropriate document with the description given. (4mks)

Description Appropriate document
(i) A document which contain information about the company which is useful to outsiders.
(ii) Company performing business activities authorized by registration.
(iii) Document issued to creditors of the company.
(iv) Document which contain information about the company which is relevant to internal affairs of the company.
14. Highlight four reasons why railway transport in Kenya is not competitive as other means of
transport. (4mks)

(i) …………………………………………………………………………………………………………………………………………………………………………………………
(ii) …………………………………………………………………………………………………………………………………………………………………………………………
(iii) …………………………………………………………………………………………………………………………………………………………………………………………
(iv) …………………………………………………………………………………………………………………………………………………………………………………………

15. For each of the following transactions state the account to be debited and the account to be credited in respect to the following transactions.
Trans action A/C to be debited A/C to be credited
(i) Bought goods and paid by cheque.
(ii) Donated personal savings to business.
(iii) Deposited business cash in the bank.
(iv) A debtor paid cash for credit sales.

16. State the type of a partner in partnership which is described below.

(i) A partner who give out his name to be used in the business.
………………………………………………………………………………………………

(ii) A partner who is less than 18 years in age.
………………………………………………………………………………………………

(iii) a partner who take an active part in the conduct of the business
………………………………………………………………………………………………

(iv) A partner who may be called upon to meet a firm’s debt beyond his capital contribution.
………………………………………………………………………………………………

17. The following information relate to Bomet traders for the month of July 2007 July 1st
balance brought forward cash shs. 20,000 bank sh. 50,000
July 4th bought furniture worth sh. 8,000 by cheque.
July 10th sold goods worth sh. 6,000 by cash.
July 15th paid creditor for goods worth. sh. 3,000 by cheque and sh. 2,000 by cash.

Required:

Enter the above transactions in the two column cash book and balance it off. (4mks)

18. State any four methods of improving human resource. (4mks)

(i) …………………………………………………………………………………………………………………………………………………………………………………………
(ii) …………………………………………………………………………………………………………………………………………………………………………………………
(iii) …………………………………………………………………………………………………………………………………………………………………………………………
(iv) …………………………………………………………………………………………………………………………………………………………………………………………

19. State four reasons why indirect production is gaining popularity. (4mks)
(i) …………………………………………………………………………………………………………………………………………………………………………………………
(ii) …………………………………………………………………………………………………………………………………………………………………………………………
(iii) …………………………………………………………………………………………………………………………………………………………………………………………
(iv) …………………………………………………………………………………………………………………………………………………………………………………………

20. Outline four contents of a statement of accounts. (4mks)
(i) …………………………………………………………………………………………………………………………………………………………………………………………
(ii) …………………………………………………………………………………………………………………………………………………………………………………………
(iii) …………………………………………………………………………………………………………………………………………………………………………………………
(iv) …………………………………………………………………………………………………………………………………………………………………………………………

21. List four circumstances when personal selling is appropriate. (4mks)
(i) ……………………………………………………………………………………………
(ii) ……………………………………………………………………………………………
(iii) ……………………………………………………………………………………………
(iv) ……………………………………………………………………………………………

22. State four methods of improving exports in the international trade. (4mks)
(i) …………………………………………………………………………………………………………………………………………………………………………………………
(ii) …………………………………………………………………………………………………………………………………………………………………………………………
(iii) …………………………………………………………………………………………………………………………………………………………………………………………
(iv) …………………………………………………………………………………………………………………………………………………………………………………………

23. List four problems that the Kenya government may experience in implementing a
Development plan. (4mks)

(i) …………………………………………………………………………………………………………………………………………………………………………………………
(ii) …………………………………………………………………………………………………………………………………………………………………………………………
(iii) …………………………………………………………………………………………………………………………………………………………………………………………
(iv) …………………………………………………………………………………………………………………………………………………………………………………………

24. Give four reasons why the money system came into being. (4mks)
(i) …………………………………………………………………………………………………………………………………………………………………………………………
(ii) …………………………………………………………………………………………………………………………………………………………………………………………
(iii) …………………………………………………………………………………………………………………………………………………………………………………………
(iv) …………………………………………………………………………………………………………………………………………………………………………………………

25. State four causes of changes in capital for a business. (4mks)

(i) …………………………………………………………………………………………………………………………………………………………………………………………
(ii) …………………………………………………………………………………………………………………………………………………………………………………………
(iii) …………………………………………………………………………………………………………………………………………………………………………………………
(iv) …………………………………………………………………………………………………………………………………………………………………………………………

Business Studies Paper 1 - Bomet District Mock 2008 Question Paper

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