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Business Studies Paper 1 Question Paper

Business Studies Paper 1

Course:Secondary Level

Exam Year:2009

565/1
BUSINESS STUDIES
Paper 1
2 hours

KANSBAG PROJECTIONS FORM FOUR TERM 1 EXAMINATION 2009
Kenya Certificate of Secondary Education
BUSINESS STUDIES
Paper 1
2 hours

Write your name and index number in the spaces provided above.
Answer all the questions in the spaces provided.

For Examiner’s Use Only
Question 1 2 3 4 5 6 7 8 9 10 11 12
Marks

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

TOTAL MARKS

1. State four factors that may hinder the choice of a suitable means of communication in a business organization (4marks)
(a).
(b).
(c).
(d).

2. Outline our factors that may limit the growth of small scale business in Kenya
(4marks)
(a).
(b).
(c).
(d).

3. Give three advantages of selling goods on hire purchase (3marks)
(a).
(b).
(c).
(d)

4. Highlight four difference between a public ltd company and a co-operative society (4marks)

Public ltd company co-operative society
(a).
(b).
(c).
(d).

5. Outline our reasons why supermarkets are becoming popular with customers
(4marks)
(a).
(b).
(c).
(d).

6. State four features of monopolistic competition (4marks)
(a).
(b).
(c).
(d).
7. Outline 4 circumstances under which a local manufacturer would prefer to distribute his products directly to consumers (4marks)
(a).
(b).
(c).
(d).

8. State whether each of the following factors would lead to a ‘shift’ or movement along the demand curve (4marks)

factors effect
(a). change in consumers real income
(b). increase in sales tax
(c). change in price of a product
(d). Decrease in population

9. Outline four consequences of a young population to Kenya’s economy (4marks)
(a).
(b).
(c).
(d).

10. Determine the missing figures in the table below (4marks)

Assets Liabilities Capital
(a). 220,000 190,000
(b). 150,520 75,250
(c). 60,600 560,000
(d). 600,500 589,800

11. Highlight four ways in which a country may benefit from national income statistics (4marks)
(a).
(b).
(c).
(d).

12. Outline the risks covered under each of the following insurance policies
(4marks)
(a). Consequences loss
(b). Fidelity guarantee
(c). Comprehensive motor vehicle policy
(d). Personal accident policy

13. State four factors that an enterprise should consider when deciding which goods to produce (4marks)
(a).
(b).
(c).
(d).

14. Give four circumstances under which an importer would prefer to transport goods using container (4marks)
(a).
(b).
(c).
(d).

15. The following details relate to Abdi Traders as at 31st August 2007
SHS.
Debtors 32,000
Bank overdraft 68,000
Machinery 200,000
Cash in hand 55,000
Creditors 46,500
Bank loan (2years) 165,000
Stock of goods 80,000
Prepare a balance sheet as at 31st August 2007 (5marks)

16. Outline four factors that may affect the price elasticity of demand of a commodity (4marks)
(a).
(b).
(c).
(d).

17. Other the price mechanism briefly explain 4 methods of determining commodity prices (4marks)
(a).
(b).
(c).
(d).

18. Highlight four implications of large scale production activities on environment and community health (4marks)
(a).
(b).
(c).
(d).

19. State four reasons why sales promotion is important to a consumer (4marks)
(a).
(b).
(c).
(d).

20. The following items relate to the measurement of national income. Name the approach used to measure income in each case (4marks)

Case Approach
(a). Receipt for insurance service
(b). Grinding wheat in flour
(c). Government investments
(d). Net foreign trade balance

21. The following diagram represents a firm in the short run.
(a). Identify the equilibrium output on the graph
(b). Give a reason for ‘a’ above (1mark)

(c). Name the market structure represents by the graph (1mark)

22. State four disadvantages of transacting business through e-commerce
(4marks)
(a).
(b).
(c).
(d).

23. Give four reasons why a new business may fail (4marks)
(a).
(b).
(c).
(d).

24. State four advantages of an open office layout to an organization
(a).
(b).
(c).
(d).

25. Outline 5 benefits to a firm that uses its own warehouse (5marks)
(a).
(b).
(c).
(d).

Business Studies Paper 1 Question Paper

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