Get premium membership and access revision papers, questions with answers as well as video lessons.

Business Studies Paper 1 Question Paper

Business Studies Paper 1

Course:Secondary Level

Exam Year:2011

Business studies
Form four trial examination
February examination
February 2011

Name:
Index no:
Sign:
Instructions:
Answer all questions in the spaces provided.
Time allowed 2 hours.

1. Classify the following goods as either producer or consumer goods. (4 marks)
(i) Industrial sugar __________
(ii) Personal car _____________
(iii) Hoe ____________________
(iv) Medicine ________________
2. Outline four advantages of public limited companies. 4marks
3. The Muthurwa market has been set up to deal with problems of hawkers in the streets of Nairobi. State 4 reasons why there are so many hawkers in Nairobi. 4 marks
4. The diagram below represents a shift in supply curve of a commodity from S0S0 to S1S1.
State four factors that may have accounted for the shift. 4 marks
5. Taxes constitute a very crucial component of any country’s source of revenue. However, before the imposition of a tax goes on, some factors would have to be put into consideration. Name any four factors. 4 marks
6. State the term that best fits the description below. 4 marks.
(i) Money brought into the business by the owner___
(ii) Goods bought for resale__________
(iii) Money withdrawn from the business by the owner for private use_____
(iv) A ledger in which we record cash and bank transactions_____
7. State any four assumptions of a monopolistic competition market structure.4 marks
8. State four tools of monetary policy used by the central bank to control money in supply. 4 marks.
9. Some countries have been having high population growth rate. Highlight 4 advantages of this situation.4 marks.
10. On 1st January 2006, the cash book of Ritah traders showed cash and bank balances of KSH. 3500 and KSH. 157200 respectively. Transactions that took place during the month were:
January, 2006:
2nd Cash sales KSH. 12500
10th paid KSH 1200 cash in respect of wages
15th received a cheque for KSH 25000 from a debtor
25th withdrew KSH 18000 from bank for office use
28th paid KSH 14200 to a creditor by cheque
31st banked all cash except KSH. 2800
Prepare a two column cash book for the month duly balanced. 4marks.
11. The following was extracted from the books of Nyakundi traders as at 31st December, 2009
Capital 320000
Liabilities 120000
Additional investments 80000
Net profit 88000

Additional information:
Drawings amounted to KSH. 5,000 per month during the year. Calculate capital as at 1st January, 2009. 4 marks
12. Complete the table below by indicating the relevant element of transport for the description given. 4 marks.
description Element
Kakamega Mombasa road
Kisumu lake port
Bicycle transporting goods
Steam engine
13. Highlight four factors that may consider when locating a manufacturing firm. 4 marks
14. Highlight two differences between economic goods and non- economic goods. 4 marks
15. Give the name given to the document described below. 4 marks
(i) give the list of items and their prices at the time______________
(ii) Replies to a specific inquiry__________
(iii) gives description of goods, their prices and may even contain some photographs of the goods stocked_____________
(iv) Confirms the receipt of an order______________
16. State four methods a government may employ to control inflation. 4 marks
17. State four characteristics of indirect production. 4 marks
18. Highlight four qualities of a good salesman. 4 marks
19. Highlight four factors that a farmer should consider when choosing a method of distributing his produce. 4 marks
20. On 1st June 2006, ABC traders had cash in hand KSH. 62000 and cash at bank KSH 233000. The following transactions took place during the month:
January 2006:
1st received a cheque for KSH 25000 from a debtor
18th drew a cheque for KSH 47000 in respect of creditors
25th deposited all cash into the bank.
Post the above transactions into the respective ledger accounts and balance them off. 4 marks
21. State the insurance principle represented in each of the cases and give a reason for action taken by the insurance company. 4 marks

Principle Reason for action
An insurance company has refused to accept Mary’s application to insure her brother’s house where her children live against the risk of fire
Sweet loaf bakers insured its bakery against risk of fire arising from bakery activities. The bakery got burnt down from the bakery activities in the adjoining bakery. The insurance has refused to pay compensation.

22. The following balances were extracted from the books of Newton Fashions as at 31st December, 2009
Stock 1/12/2009 15000
Sales 250000
Capital 100000
Motor vehicles 180000
Return inwards 20000
Purchases 130000
Provision for depreciation 25000
Carriage on purchases 30000
Stock 31/12/2009 10000
Prepare Newton’s trial balance as at 31st December, 2009. 4 marks
23. Listed in the table below are various forms of production. For each form of production, indicate using a tick, the correct classification in the appropriate column. 4 marks
Form of production primary secondary Tertiary
Transportation
Farming
Retailing
House building
24. Outline four reasons why cash payment would be preferred to cheque payment. 4 marks
25. Suggest four possible measures which the Kenyan government can take to solve the unemployment problem facing it. 4 marks

Business Studies Paper 1 Question Paper

More Question Papers

Popular Exams