Pbus 021 Question Paper
Pbus 021
Course:Certificate Of Pre-University Business
Institution: Kabarak University question papers
Exam Year:2008
COURSE CODE: PBUS 021
COURSE TITLE: BUSINESS STUDIES
STREAM: PRE-UNIVERSITY
DAY: WEDNESDAY
TIME: 8.30 - 10.30 A.M.
DATE: 10/12/2008
INSTRUCTIONS:
1. The paper contains FIVE (5) questions
2. Answer any THREE questions
3. All Questions carry EQUAL marks
1 (a) Write short notes on the following
i) Limited liability company (3 marks)
ii) Place utility (3 marks)
iii) Retained profits (3 marks)
iv) Debentures (3 marks)
b) Human beings engage in different types of occupations. Briefly explain
these different occupations giving examples in each case. (11 3
1
marks)
2. a) Giving examples, clearly distinguish between these two business
environments that affect how businesses operate; Macro Environment and
Micro Environment. (8 marks)
b) External Environment includes all those business environments that
present opportunities and threats to the business. List and explain these
different business environments that form the external environment.
(15 3
1 marks)
3. a) Explain the differences between the following forms of businesses
i) A Cooperative and a joint stock company (6 Marks)
ii) A partnership and a private company (6 Marks)
b) What are the disadvantages of sole proprietorship (5 3
1
marks)
c) If a sole proprietor changes his business to a partnership. What benefits
will he get? (6 marks)
4. a) Explain the functions of commercial banks in Kenya (10 marks)
b) Explain how banks create money? (7 3
1 marks)
c) What are the characteristics of money? (6 marks)
5. a) i) State and explain the accounting equation (6 3
1 marks)
ii) Explain which accounts are debited or credited in the following
transactions
1) A photocopying machine purchased on credit for Kshs.
75,000Page 3 of 3
2) The business owners added some additional cash to the
business Kshs. 200,000.
3) An old counting machine was sold and the business
received Kshs. 36,000.
(3 marks)
b) What are the various types of bookkeeping systems in businesses?
(8marks)
c) Explain the importance of the Balance sheet and the Income statement in
businesses (6 marks)
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