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Business Studies Paper One Question Paper

Business Studies Paper One

Course:Secondary Level

Exam Year:2006

FRIENDS SCHOOL KAMUSINGA
APRIL HOLIDAY TUITION.

ALLIANCE HIGH SCHOOL
TRIAL EXAMINATIONS 2006
BUSINESS STUDIES
PAPER 1
565/1
TIME : 2 HOURS.
• Attempt ALL the questions in the spaces provided.

1. State FOUR advantages of non – verbal communication (4marks)
2. State FOUR significance of a trial balance to a business (4marks)
3. Outline FOUR differences between a public corporation and a private company ( 4marks)
4.Highlight FOUR features of an effective filing system ( 4 marks)

5. Outline FOUR reasons why a multinational company may prefer to set up a production unit in a developing country instead of exporting finished goods to the country. ( 4 marks)

6 The following information was available for Mazrui’s business for the year ended 30th June 2006.

Shs.
Stock ( 1/7/2005 12,600
Sales 19,600
Purchases 7,700
Returns outwards 1,400
Carriage inwards 2,000
Returns inwards 1,600
Stock (30/6/2006 3,500

Prepare a trading account ( 4 marks)

7. Identify FOUR measures the Kenyan may take to promote her exports (4marks)
8. Outline FOUR methods that consumers may use to protect themselves from exploitation by businessmen. ( 4 marks)

9. Highlight FOUR circumstances when a seller may send a credit note to a buyer(4marks

10. State FOUR disadvantages faced by a developing country that relies on imported oil as its source of energy. ( 4 marks)

11. In the table below , identify the information extracted from the source documents given ( 4 marks)

Source document Information
a) Incoming cash sale slips
b) Outgoing receipts
c) Outgoing credit notes
d) Incoming invoices

12. State FOUR reasons why a business studies student should be interested in demographic matters ( 4 marks)

13. Highlight FOUR ways in which Kenyan entrepreneurs are beneficial to their economy.( 4 marks)
14. Identify FOUR activities that are undertaken by the human resource department of an organization. ( 4 marks)

15. Outline FOUR steps that are applied by a sales person when engaging in product promotion. ( 4 marks)
16. State FOUR services that are rendered by the central bank to commercial banks.
( 4 marks)

17. Mwalwa intends to transport goods from the far East to Kenya. Identify FOUR disadvantages he may encounter if he opts to use containers. ( 4 marks)

18.Record the following cash transactions in the three – column cashbook below and balance it off on 10th July 2006 ( 4 marks)
July 1 Opening balances – Cash sh 4,000 (Dr), Bank sh 6,400 (Cr)
3 Received Sh. 4,000 by cheque from Anwar after having deducted a cash discount
of 2 %
4 Paid electricity Sh. 1,200 in cash.
8 Withdrawal sh. 1,000 from the bank for personal use
10 Deposited Sh. 1,000 into the business bank account from the cash box.

Date Details Folio Disc Allowed Cash Bank Date Details Folio Disc Received Cash Bank

19. identify FOUR reasons why consumers face difficulties when satisfying their human wants ( 4 marks)
20. The following information on Wangui’s insurance was available on 30th June 2006
Shs.
Insurance prepaid ( 1/7/05) 3,800
Cash paid during the year 6,400
Insurance prepaid ( 30/6/06 4,200
Determine the insurance expense incurred that year ( 4 marks)

21. Highlight FOUR circumstances when the price elasticity of demand of a product would be high . ( 4 marks)

22. The table below relates to the costs incurred by a certain business . Calculate the values a,b, c and d ( 4 marks)
Output Total fixed cost (TFC) Total variable cost (TVC) Total cost (TC) Average fixed cost (AFC) Average variable cost (AVC) Average cost (AC)
0 200 0 200 (a) 0 O
1 (b) 100 300 200 100 300
2 200 (c) 350 100 75 175
3 200 130 (d) 66.70 43.30 110
(a)
b)
c)
d)
23. State any FOUR indicators of an underdeveloped country ( 4 marks)
24. Identify FOUR factors that influence the level of national income on a country
( 4 marks)
25. Highlight FOUR circumstance when a manufacture would opt to distribute his product using middlemen ( 4 marks)

Business Studies Paper One Question Paper

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