BUSINESS STUDIES PAPER 1 - 2019 KCSE Prediction Questions Set 1

Answer all questions in the spaces provided

1. List four physical resources that a business can use to ehnace its operations (4 marks)
2. Outline four reasons that justify entrepreneurship in a country (4 marks)
3. Outline four attributes of an office secretary (4 marks)
4. Outline four circumstances under which a credit note can be issued (4 marks)
5. Highlight four challenges facing co-operative societes in Kenya (4 marks)
6. State four benefits a business may get by adopting containerisation (4 marks)
7. Outline four advantages of E-mail as means of communication (4 marks)
8. Outline four factors which may limit the effectivenes of a warehouse (4 marks)
9. Differentiate between a movement along a supply curve and shift of a supply curve
10. State four ways in which production in Kenya effects the environment (4 marks)
11. Distinguish between monopoly and monopolistic competition markets (4 marks)
12. Highlight four factors that may influence a producer in choosing a channel of distribution (4 marks)
13. Outline four limitations of using National income statistics to measure standards of living in acountry (4 marks)
14. State the efecct of each of the follwoing transactions on a balance sheet total. Use increase, decrease and No effect (4 marks)
    

    Transaction	Effect
    a. Brought in the business a personal car
    b. Took home some goods for family use
    c. Sold some old furniture for cash
    d. Paid a creditor by cheque

15. The following information was extracted from Kariuki Enterprise for the month ended 31st Augsut 2015
    Gross profits 24000
    Total expenses 80000
    Total revenue income 10% of sales
    Mark up percentage 25%
    Prepare a profit and loss Account for the months (4 marks)
16. Outline four factors that influence the amount held in liquid form (4 marks)
17. Outline four features of economic resources (4 marks)
18. Outline four disadvantages of division of labor (4 marks)
19. Ouline four advantages of government involvement in business activities (4 marks)
20. State four circumsatnces that may influence an Insurance company to re-insure itself (4 marks)
21. Explain the following terms as used in product promotion 
    1. Competitive advertising (2marks)
    2. Celebrity advertising (2 marks)
22. The diagram below shows the relationship between population trend and income per head
    
    Name the labelled parts (4 marks)
23. Give in statement from the business transactions in the accounts below (4 marks)
    
24. In the spaces provided state the source document for each of the books of original entry (4 marks)
    

    Book of original entry	Source document
    i. Cash receipt Journal
    ii. Return inwards Journal
    ii. Purchases Journal
    iv. Sales Journal

25. The cost of consumer goods and services for a representative basket of an average family is given below
    
    Determine the consumer price indices using 2000 as base year (4 marks)