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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
KIMILILI
BUSINESS STUDIES
PAPER 1 FORM 4 CAT 1 TERM 1 2007
TIME: 1½ HOURS
• Answer all the questions in the spaces provided
1. State FOUR possible sources of capital for a sole proprietorship form of business. (4 marks)
2. State FOUR ways in which partners may be classified. (4 marks)
3. State FOUR functions of an entrepreneur. (4 marks)
4. Mwamburi has plans to set up a shoe manufacturing firm in Makima town. State FOUR incentives that the government may give to influence him to set up the factory in the rural town.(4 marks)
5. State FOUR factors to be considered in evaluating a business opportunity. (4 marks)
6. Outline FOUR features of specialty goods. (4 marks)
7. Highlight FOUR classifications of business enterprises. (4 marks)
9. Highlight FOUR services offered by the local authorities in Kenya. (4 marks)
10. State FOUR roles of commercial attaches in promoting trade between Kenya and her partners in trade. (4 marks)
11. In the spaces provided, classify each of the following human wants as either secondary or basic. (4 marks)
Human want Classification
(a) Entertaiment
(b) food
(c) Education
(d) Shelter
12. State FOUR measures that a manager can take in order to improve her relationship with workers. (4 marks)
13. Mbunu Enterprises started business with an investment of shs 1200,000. At the end of the year their capital was shs 1,600,000 and their monthly drawings was shs 20,000 . Calculate their profit for the year. (4 marks)
14. State FOUR factors to consider when choosing an appropriate means of transport for goods. (4 marks)
15. Outline FOUR disadvantages of division of labour and specialization. (4 marks)
16. State FOUR effects of environmental pollution. (4 marks)
17. State FOUR duties of a personnel officer. (4 marks)
18. The following account balances were extracted from the books of Kifaru Traders on 31 March 2004.
Shs
Equipment 26000
Stock 44200
Creditors 15000
Debtors 11000
Cash in hand 2200
Bank overdraft 5400
Prepare Kifaru Traders balances sheet. (4 marks)
19. For each of the following account titles indicate whether it is real, personal or nominal. (4 marks)
Account title Types of account
(a) Purchase
(b) bank
(c) Wafula – a creditor
(d) commissions received
20. For each of the following transaction, state the account to be debited and the account to be credited. (4 marks)
Transaction Account to be debited Account to be credited
(a) Took goods worth shs 10,000 at cost from the business for own use
(b) Returned goods worth shs 5200 to the credit suppliers
(c) Drew a cheque for shs 20,000 for office use
(d) Sold an old computer for shs 10,000 cash
21. Outline FOUR sources of oligopoly. (4 marks)
22. Briefly describe each of the following types of demand. (4 marks)
i. Joint demand
ii. Derived demand
iii. Competitive demand
iv. Composite demand
23. With the aid of a diagram briefly describe the process of communication. (4 marks)
24. Outline FOUR factors affecting the circular flow of income. (4 marks)
25. State FOUR methods used to regulate the influence of international trade. (4 marks)
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