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Form 3 Business Studies Paper 1 Term 3 Question Paper

Form 3 Business Studies Paper 1 Term 3

Course:Business Studies

Exam Year:2016

565/1
BUSINESS STUDIES
FORM THREE PAPER 1
3RD TERM 2016
2 HRS

Kenya Certificate of Secondary Education
BUSINESS STUDIES PP 1
FORM THREE 3RD TERM EXAMINATION 2016

Instructions
• Answer all the questions

1. Highlight four benefits of self employment.

(4 marks)
2. State four ways in which the Kenyan natural resources are beneficial to the country
(4 marks)

3. Outline four factors to consider in selection of a production method
(4 marks)

4. Give four importance of a statement of account to a seller.
(4 marks)

5. Outline four functions of an office.
(4 marks)

6. Highlighting four documents required by the registrar of companies when registering a public limited company
(4 marks)

7. State four circumstances under which the capital of a business may change
(4 marks)

8. Briefly describe the below named types of advertisements
(4 marks)

TYPE OF ADVERTISEMENT	DESCRIPTION
Institutional	-
Celebrity	-
Product	-
Informative	-

9. The following information relates to Mutheu enterprise on 31st December 2010.
Shs
Capital----------500, 000
Buildings--------200, 000
Cash in hand------20, 000
Furniture---------25, 000
Motor vehicle-----400, 000
Creditors---------18, 000
Debtors-----------36, 000
Bank--------------100, 000
Bank loan---------263, 000
Prepare a trial balance
(5 marks)

10. Outline four implications of an ageing population
(4 marks)

11. Highlight four reasons why small scale traders are becoming more popular in Kenya.
(4 marks)

12. State four factors that will lead to increase in supply of goods in the market.
(4 marks)

13. Give four internal weakness that might affect the performance of a business.
(4 marks)

14. Name three parties to a Cheque
(3 marks)

15. Outline four ways in which transport facilitate trade
(4 marks)

16. The following information relates to business A,B,C,D. Determine the figures represented by a, b, c d.

BUSINESS	ASSETS	LIABILITIES	CAPITAL
A	350,615	a	150,900
B	b	160,000	240,000
C	800,000	450,000	c
D	700,000	d	280,000

17. Highlight four factors that would determine the level of national income in a country
(4 marks)

18. State four rules of insurance industry in an economy
(4 marks)

19. Outline four circumstances under which sign language is appropriate.
(4 marks)

20. For each of the following transactions, indicate with a tick(right) in the spaces provided whether the following business transactions will increase, decrease or have no effect on the balance sheet totals

21. Highlight four features of oligopoly market structure
(4 marks)

22. State four reasons why a distributor would prefer to locate his warehouse near the consumer
(4 marks)

23. Give four factors that determine the size of a firm.
(4 marks)

24. Highlight four factors that inhibit entrepreneurial development.
(4 marks)

25. Give the reward of the following factors of production
(4 marks)

FACTORS OF PRODUCTION	REWARD
Land	-
Labour	-
Entrepreneur	-
Capital	-

Form 3 Business Studies Paper 1 Term 3 Question Paper

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