2018 Business Studies paper 1
1. Outline four features of labour as a factor of production. (4 marks)
(a)…………….
(b)…………….
(c)…………….
(d)…………….
2. Outline four ways in which peace within a country may encourage entrepreneurial development.(4 marks)
(a)…………….
(b)…………….
(c)…………….
(d)…………….
3. State four duties of the office clerk. (4 marks)
(a)…………….
(b)…………….
(c)…………….
(d)…………….
4. The document shown below is used in home trade.
(a) Identify the document(1 marks)
(b) Outline three circumstances under which the above document may be used. (3 marks)
(i)…………….
(ii)…………….
(iii)…………….
5. State four measures that may be taken by the government to control inflation. (4 marks)
(a)…………….
(b)…………….
(c)…………….
(d)…………….
6. Outline four measures that may be taken by the government to curb unemployment. (4 marks)
(a)…………….
(b)…………….
(c)…………….
(d)…………….
7. Highlight four benefits of national income statistics to the government.(4 marks)
(a)…………….
(b)…………….
(c)…………….
(d)…………….
8. Fill in the spaces in the table below: (4 marks)
9. State four categories in which the various types of business partners may be classified.(4 marks)
(a)…………….
(b)…………….
(c)…………….
(d)…………….
10. Highlight four ways in which the government creates an enabling environment for the conduct of business in the country. (4 marks)
(a)…………….
(b)…………….
(c)…………….
(d)…………….
11. Outline four roles of transport in the facilitation of trade.(4 marks)
(a)…………….
(b)…………….
(c)…………….
(d)…………….
12. State three circumstances under which firms would form a cartel.(3 marks)
(a)…………….
(b)…………….
(c)…………….
13. Outline four conditions under which a manufacturer would distribute his products through the wholesaler. (4 marks)
(a)…………….
(b)…………….
(c)…………….
(d)…………….
14. State four reasons for maintaining a cash book in a business enterprise. (4 marks)
(a)…………….
(b)…………….
(c)…………….
(d)…………….
15. Apart from the forces of demand and supply, list four other ways in which the price of a product may be set. (4 marks)
(a)…………….
(b)…………….
(c)…………….
(d)…………….
16. Outline four factors that would make two people taking the same type of life assurance policy with the same insurer to pay different amounts of premium. (4 marks)
(a)…………….
(b)…………….
(c)…………….
(d)…………….
17. State the line of communication involved in each of the following: (4 marks)
(a)…………….
(b)…………….
(c)…………….
(d)…………….
(a) The Manager of ABC Company Ltd talking to the Manager of XYZ Company Ltd.
(b) A secretary asking for time off from her boss.
(c) The Production Manager giving instructions to the Secretary of the Sales Manager.
(d) The Store Keeper giving explanations to the Chief Accountant.
18. List four books of original entry that may be used to record transactions affecting stock.(4 marks)(4 marks)
(a)…………….
(b)…………….
(c)…………….
(d)…………….
19. Highlight four external economies of scale that a firm may get when operating on a large scale.(4 marks)
(a)…………….
(b)…………….
(c)…………….
(d)…………….
20. The following information was extracted from the books of Leila Traders on 31st July 2016:
Details Sh
Capital 90,000
FixedAssets 80,000
Cash in hand 20,000
Current liabilities 20,000
Stock 20,000
Net profit 15,000
Drawings 5,000
Calculate:
(a) Capital owned
(b) Acid test ratio
21. Watamu Enterprises had the following assets and liabilities on 1st May 2014:
Particulars Sh
Equipment 800,000
Capital 1,200,000
Creditors 100,000
Debtors 200,000
Stock 250,000
Cash at bank 50,000
The following transactions took place on 2nd May 2014:
(i) Bought goods for re-sale Sh 150,000 on credit
(ii) A debtor paid Sh 100,000 by cheque
(iii) Sold the equipment for Sh900,000 cash
Required: Prepare Watamu Enterprises balance sheet after the above transactions. (5 marks)
22. Outline four merits of indirect taxes.(4 marks)
(a)…………….
(b)…………….
(c)…………….
(d)…………….
23. Highlight four ways in which the technological environment may improve business performance.(4 marks)
(a)…………….
(b)…………….
(c)…………….
(d)…………….
24. Identify the types of ledger in which each of the following accounts would be found: (4 marks)
Account Type of ledger
a Otieno (buyer)
b Carriage outwards
Mueni (supplier)
d Cash at bank
25. Highlight four ways in which the introduction of money helped eliminate problems faced in barter trade. (4 marks)
(a)…………….
(b)…………….
(c)…………….
(d)…………….
