KCSE Past Papers 2014 Business Studies Paper 1 (565/2)

KCSE Past Papers Business Studies 2014

3.29.1 Business Studies Paper 1 (565/1)

1 The following are descriptions of features of human Wants. Identify the features that relate to the descriptions in the spaces provided

3 Outline four tasks that may be carried out by a receptionist in an office. (4 marks)

4.Highlight four circumstances in which a cheque may be used as a means of payment.(4 marks)

5 Highlight four activities that may be carried out in a stock exchange market.(4 marks)

6 Outline four features of liners in sea transport.(4 marks)

7 State five types of information that a manager may communicate to the juniors.(5 marks)

8 Explain the meaning of the following terms: (4 marks)

(a) Insured ………………………………………… ..

(b) Insurance …………………… ..

9 In the spaces provided below, indicate whether the following factors cause movement along the demand curve or a shift of the demand curve. (3 marks)

10 Highlight four roles played by the broker in the chain of distribution. (4 marks)

11 The following diagram represents the circular flow of income in a two sector closed economy.

Identify two factors represented by each of the arrows labelled a and b. (4 marks)

12 Fill in the missing figures in the table below:

13 Mheshimiwa Ltd. had the following ledger account balances as at 31*‘ May 2010:

Required: Prepare Mheshimiwa’s trial balance as at 31*‘ May 2010. (5 marks)

14 The following is a format of the debit side of a three-column cash-book:

Name the columns labelled V, W, X and Y. (4 marks)

15 Outline four functions of the International Bank for Reconstruction and Development. (4 marks)

16 State four disadvantages of barter trade. (4 marks)

17 The following transactions relate to Jelimo Stores:

(a) 10″‘ October 2010, sold unused stationery for Sh 3,000 on credit to K. Likia.

(b) 23“ October 2010, bought a motor vehicle on credit from Onjwaria Motors for Sh 700,000.

Required: Record the above transactions in the general Journal given below: (4 marks) Date Particulars Folio .

18 List four levels of inflation. (4 marks)

19 Many countries in Africa, Latin America and Asia are considered to be under-developed.

Outline four characteristics they have in common. (4 marks)

20 Madam Emoro operates a matatu business. State four factors in the internal environment that may influence the business. (4 marks)

21 Highlight four reasons for which businesses should observe ethical practices. (4 marks)

22 State four merits of promoting products through personal selling. (4 marks)

23 The following information relates to Kiboko Traders as at 31*‘ December 2010.

Details Shs

Total drawings 400,000

Added investments 800,000

Capital on 3 1“ Dec 2010 7,000,000

Profit 3,100,000

Calculate Kiboko’s initial capital. (3 marks)

24 Outline four positive implications of a youthful population to an economy. (4 marks) 25 PQ Ltd had the following balances as at 31“ December 2012.


Sales 23 498 000

Stock 1/l/2012 57 140

Returns Inwards 27 200

Purchases 16 290 000

Stock 31/l2/2012 86 340

Prepare PQ’s Trading Account for the year ended 31“ December, 2012. (5 marks)

3.29.2 Business Studies Paper 2 (565/2)

1 (a) Explain five benefits that a firm may enjoy by preparing a business plan. ( l0 marks)

(b)Explain five demerits that a country may suffer when the government becomes a major investor in business. (10 marks)

2 (a) On first January 2012, Ndovu Traders had shs 30,000 in cash and shs 75,000 at the bank. During the month, the following transactions took place:

January 2nd:Bought goods in cash Worth shs 15,500

5th: Received cash from Chui shs 23,750 after allowing 5% cash discount.

8th: Withdrew shs 8,900 from the bank for personal use.

11th: Maro, a debtor settled her account of shs 16,800 by a cheque of shs 16,000.

15th: Sales amounted to shs 24,250 in cash.

17th: Paid Furaha traders shs 29,100 in cash in full settlement of their account less 3% cash discount.

20th: Withdrew shs l5,000 from the bank for business use.

22nd: Koko a debtor, settled her account of shs 40,000 by cheque less 2.5% cash discount.

25th: Paid Wages shs 21,000 in cash.


Prepare a duly balanced three column cash book. (12 marks)

(b) Explain four reasons for which traders observe ethical practices in product promotion. (8 marks)

3 (a)Explain five objectives that may be achieved by establishing firms in different parts of the country (10 marks)

(b) Describe five accounting documents that are used in home trade. (10 marks)

4 (a) The following information relates to Bahati enterprises:

Details Shs

Stock 1*‘ January 2012 430 .000

Purchases 930,000

Sales 1,155,000

Carriage outwards 25 .000

Carriage inwards 10,000

Returns outward 20 .000

Returns inwards 30,000

General expenses 100.000

Insurance 25 .000

Stock 31st December 2012 470,000


(i) Turnover(1 marks)

(ii) Rate of Stock Turnover(3 marks)

(iii) Mark up(2 marks)

(iv) Margin(2 marks)

(v) Net profit(2 marks)

(b) Explain five guidelines that should be followed by the government in its expenditure. (10 marks)

5. (a) Explain five disadvantages that a developing country may suffer by liberalizing foreign trade. (10 marks)

(b) Explain five features of monopolistic competition. (10 marks)

6. (a) Apart from selling shares, explain five sources of finance for a public limited company. (10 marks)

There has been a decline in the demand for wooden furniture. Explain five factors that may have caused this trend. (10 marks)

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