Business Studies Paper 1 Questions - KCSE 2021 Past Papers

QUESTIONS

1. State four characteristics of a successful entrepreneur. (4 marks)
2. List four types of business activities. (4 marks)
3. Outline four challenges that may be faced in the satisfaction of human wants. (4 marks)
4. Match four factors of production with their corresponding rewards. (4 marks)
5. Highlight four factors that may be considered when choosing a means for transporting cash.(4 marks)
6. State four ways in which the government may be involved in business. (4 marks)
7. Outline four benefits of a partnership. (4 marks)
8. List four mailing services that facilitate communication. (4 marks)
9. On the diagram below, show the effects of increased demand. (4 marks)
   
10. Outline four factors that may influence a firm's decision on the type of goods to produce. (4 marks)
11. Highlight four benefits of localisation of firms. (4 marks)
12. Write the bookkeeping equation for the business whose transactions are given below. (4 marks)
    
    • Started a business with Ksh 10,000 in cash.
    • Acquired a loan of Ksh 50,000 which was directly banked.
13. Outline four channels for distributing locally manufactured products to local consumers. (4 marks)
14. Outline four limitations of barter trade. (4 marks)
15. State four features of an efficient tax system. (4 marks)
16. Identify the book of original entry prepared from each of the following source documents: (4 marks)
    

    	Source Document	Book of original entry
    a)	Outgoing invoice.
    b)	Received receipt.
    c)	Copy of credit note.
    d)	Original invoice.

17. List four types of capital in a business. (4 marks)
18. Record each of the following transactions into their relevant ledger accounts. (4 marks)
    
    • 2nd March 2021; started a business with Ksh 10,000 in cash.
    • 3rd March 2021; Bought goods worth Ksh 12,000 on credit from Mawa Enterprises.
19. Outline four reasons that would make an organisation prefer a landscape office over enclosed office layout. (4 marks)
20. The following information was extracted from the books of Adow Traders on 31st December, 2020. (4 marks)
    Details
    5 year loan - Ksh256,700
    land - Ksh120,000
    cash - Ksh24,600
    Creditors - Ksh37,400
    buildings - Ksh430,500
    Prepare Adow Traders Balance Sheet as at 31st December, 2021.
21. Jane decided to take an insurance cover for her car against theft from Serufi Insurance Ltd. It was valued at Ksh 600,000 and she was required to make monthly payments of Ksh 6,000. Identify the appropriate insurance term for: (4 marks)
    
    1. Ksh 600,000
    2. Jane
    3. Serufi Insurance Ltd
    4. Theft
22. Outline four difficulties that a country with a young population may experience. (4 marks)
23. Identify the retailers described in the statements given below. (4 marks)
    

    STATEMENTS	RETAILERS
    Sells goods by displaying them along the streets
    Moves from one place to another on foot selling their goods
    Dispenses goods with the use of coin operated machines
    Meet on designated days in open grounds to sell their goods

24. Highlight four benefits of inflation to an economy. (4 marks)
25. Outline four benefits enjoyed by countries that participate in international trade. (4 marks)