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Borabu Masaba District Mock-Bussiness Studies Paper 1 Question Paper
Borabu Masaba District Mock-Bussiness Studies Paper 1
Course:Secondary Level
Institution: Mock question papers
Exam Year:2012
NAME:……………………………………………………… INDEX NO:…………………………
SCHOOL:………………………………………………….. DATE:……………………………….
SIGN:………………………………..
565/1
BUSINESS STUDIES
PAPER 1
JULY/AUGUST - 2012
TIME: 2 HOURS
BORABU-MASABA DISTRICTS JOINT EVALUATION TEST– 2012
Kenya Certificate of Secondary Education (K.C.S.E)
565/1
BUSINESS STUDIES
PAPER 1
JULY/AUGUST - 2012
TIME: 2 HOURS
INSTRUCTIONS TO CANDIDATES
1. Write your name and index number in the spaces provided above.
2. Sign and write the date of examination in the spaces provided above.
3. Answer ALL the questions.
4. ALL answers must be written in the spaces provided in this booklet.
5. Do not remove any pages from this booklet.
6. This paper consists 8 printed pages.
1.Below are some factors that influence the operations of a business .By use of a tick indicate in the
appropriate column the business environment associated with each of the factors . (4mks)
Factor Micro Macro
a) Political factors
b) Economic recession
c) Business structures
d) Human resources
2. A business opportunity exists where there are gaps in the needs of the market. Outline four such gaps. (4mks)
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3. Outline four advantages of warehousing to a consumer. (4mks)
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4. State four features of partnership (4mks)
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5. Outline four sources of oligopoly power. (4mks)
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6. POA a serious entrepreneur has identified a business opportunity in one of the towns in Kenya
and wants to borrow money from Faulu bank. State four factors he has to take into consideration before he borrows the money. (4mks)
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7. Give four reasons why agriculture is the leading economic activity of Kenya. (4mks)
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8. Outline four measures a country may take to reduce imports. (4mks)
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9. Outline three ways in which credit note is useful to a supplier. (3mks)
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10. State the term given to each of the following disciplines . (4mks)
(a) Study of how man strives to satisfy his unlimited wants using the limited resources
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(b) Study of the process of identifying a business opportunity and acquiring resources to start
and operate a business
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(c) Study of trade and aids to trade
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(d) Refers to a systematic way of recording business activities which are used for decision
making
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11. State five circumstances under which photocopying may be used to reproduce documents in a
school. (5mks)
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12. Outline four functions of Kenya Bureau of standards. (4mks)
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13. Illustrate with a diagram the effect of a decrease in supply on equilibrium price and quantiy in a normal situation. (4mks)
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14. Identify four factors that may lead to an increase in the level of national income of a country.
(4mks)
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15. In the spaces provided, write decrease, increase or No effect to show the effects of each one of the
following transactions on the assets, liabilities or capital. (4mks)
Transaction Assets Liabilities Capital
a) Bought furniture on credit
b)Paid creditors by cash
c)Withdrew goods for personal use
d)Converted a personal motorcycle
for business use
16. The following information relates to Sonko traders as on 30th June 2011.
Capital
Debtors
Creditors
Motor vehicles
Cash
Stock Shs
96,600
29,520
24,670
79,000
11,250
1,500
Prepare a trial balance (4mks)
17. The following balances were obtained from the books of Mrembo Traders.
Opening stock
Sales
Gross profit
Closing stock
Shs
25,000
180,000
25% of sales
35,000
Calculate
(a) Cost of good sold (2mks)
(b) Rate of stock turnover (3mks)
18. Outline four advantages a customer enjoys when he buys directly from a manufacturer. (4mks)
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19. Outline four measures that the Kenya government would take to alleviate unemployment with the
Country (4mks)
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20. Highlight four features of effective communication. (4mks)
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21. Name three uses of two – column cash book. (3mks)
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22. Highlight four ways in which the insurance industry promotes growth of business enterprises. (4mks)
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23. State four limitations of after sales service as a method of product promotion. (4mks)
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24. Highlight four measures that the government may take to attract firms to an area. (4mks)
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25. Mosomi tradres had the following information extracted from the books of accounts as at 31st
December, 2010
Capital 1st December, 2010
Additional investment
Drawings for the year
Capital on 31st December 2010 Shs
Kshs 350,000
100,000
45,000
470,000
Determine the profit for the year. (4mks)
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