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Business Studies Form Four Question Paper
Business Studies Form Four
Course:Secondary Level
Institution: Kcse question papers
Exam Year:2007
FRIENDS SCHOOL KAMUSINGA
BUSINESS STUDIES
FORM 4 T1 2007
TIME: 2HOURS
DATE: 2/4/2007
INSTRUCTIONS.
Answer all questions in the spaces provided.
1. Outline four rights of a partner as outlined in the partnership Act in the laws of Kenya. (4 marks).
2. Highlight any four contents of Articles Association of a Limited Liability Company.(4mks)
3. Why would you encourage people to employ non-verbal communication when communicating? (4marks)
4. State four essentials of a good warehouse. (4marks)
5. Differentiate between the following terms as used in insurance. (4marks)
a) Wark man’s compensation.
b) Fidelity guarantee.
6. Which of the determinants of do demand producers aim at influencing through advertising and why? (4marks)
7. Following an increase in the price of maize from ksh. 100 to 200, the quantity demanded of maize by a maize milling firm decreased from 1,000 bags to 300 bags. Using this information? (4marks)
a) Calculate the elasticity of demand of maize.
b) State the significance of the co-efficient of elasticity . Calculate in (a) above.
8. Mention four strategies that a firm may use to make the sale people more effective. (4mks)
9. State four factors that may cause a decrease in the level of demand of a product. (4marks)
10. Indicate with a tick ( v ) in the relevant columns whether each of the following transactions will increase or decrease the capital account balance. (4marks)
Transaction increase Decrease
(a) Withdrawal of business cash for personal use.
(b) Cash donations deposited into the bank account.
© Personal vehicle converted for business use.
(d) Profit earned by the business.
11. Hussein bought goods from Shah Lit, whose list price was kshs20,000. He allowed a trade discount of 10% and a cash discount of 5% if the debt is settled in one month. How much would Hussein pay if he settled the debt in six weeks?
12. State with reasons, the means of transport that you would use to transport the following. (4marks)
a) Flowers from Nairobi to Germany.
b) Cement from Mombasa to Kisumu.
c) Eggs from Nairobi to Mombasa.
d) Common salt from Mombasa to Nairobi
13. Musau started business on 1st Feb.2004. He made the following transactions in the 1st week of the month.
February:
1: Started business with shs.200,000 in the bank.
2: Withdrew shs.12,000 for office use.
3: Bought goods for shs30,000 from tajiri on Credit.
4: Paid Tajiri shs.30,000 by cheque.
Open the relevant ledger accounts and record the transactions. (4marks)
14. Indicate for the following features, whether they make up the internal or external environment of a business. (4 marks)
Features Internal/External environment
i) Good safety procedure installed in the place of work.
ii)Financial management of the firm.
iii) Financing community development projects.
iv) Aggressive advertisement by another business organization.
15. State four factors that influence price elasticity of demand. (4marks)
16. ART is an established hire purchase firm. State four benefits of selling goods on hire purchase terms. (4marks)
17. The diagram below represents a demand curve for a product.
Price D
D
Quantity
List four factors that would account for the nature of the demand curve represented above.(4marks)
18. Outline four circumstances under which a government may find it necessary to privatize public corporations. (4marks)
19. Highlight the effect on the demand of a product due to a positive change in price when ?
i) EP>1
ii)EP<1
iii)EP=0
IV)EP=
20. For each of the following documents, indicate the origin and one purpose that it serves. (4marks)
Document Source Purpose
(i) Invoice
(ii) Advice note
(iii) Purchase order To request the to supply the specified goods under the condition
(iv) Credit note
21. Enumerate different methods that may be used to transfer money through commercial banks. (4marks)
22. Outline four advantages of the enclosed office.
23. Mention four small-scale retailers without shops. (4mark)
24. Outline four current trends and emerging issues in product promotion. (4marks)
25. List the four categories of demand. (4marks)
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