BUSINESS STUDIES PAPER 1 Marking Scheme - 2019 KCSE Prediction Answers Set 1

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HISTORY PAPER 1 - 2019 KCSE Prediction Questions Set 1

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Physical resources
- Buildings
- Motor vehicles
- Machines
- Furnitures
- Equipment
Importance of entrepreneurship in a country
- Creates employment
- Promotes innovation and creativity
- Enhance utilisation of available resources
- Generates personal/national income
- Creation of a varirty of goods
- promote new technology
- Enhances development of enterprising culture in the country
- Enables formation of capital/wealth
Personal attributes of a secretary
- Good personal grooming
- High standards of health
- Should manintain an upright and energetic posture proper walking styles/sitting styles
- Should be orderly in the he/she performs and organises his or her work
Circumstances under which a credit note is issued
- When invoice is overcharged
- When goods are returned due to damage
- When goods not supplied are charged for
- Where goods not ordered for are returned
- Where the buyer returns empty packing containers for which he had charged
- Where a deserving discount is not allowed in the invoice
Challenges facing cooperative societies
- Withdrawal of members causing financial strains to the society
- Smiall contribution by members leading to financial difficulties
- Does not attract high quality staff because of low pay
- Members are not well informed hence do not take part in the affairs of the society
- Manangement committee ar en ot qualified
- Suffer from unnecessary polituical interfererence
- Slow decision making procvess
- They are flexible
- May suffer from mismanagement/embezzlement of funds
Benefits of containeristaion
- Carry large quantities
- Minimal damage to goods
- Goods are safe from theft and pilferage
- Low insurance premiums
- Ease of loading and offloading due to use of handling equipment
- Minimal handling cost due use of modern technology
- Containers are fitted with appropriate handling services
- Possible to transport speciliased goods using specially designed containers
Advantages of E-mail
- Relatively cheap
- Relatively fast
- It is confidential
- Instant feedback
- User can access other information such as advertising
- It is relatively easy to retrieve information
- It is universal
- Detailed information can be sent
- The information can be used for futur reference
Factors that may limit the effectiveness of a warehouse
- Inadequate premises to accommodate goods
- Poor/ionadequate handling equipment/machines
- Incovenient location to users
- Lack of special facilities to cater for special goods
- Unqualified and incompetent staff
- Poor security
- Non competitive with legal requiremnt
- Poor inventory control

Movement along a supply curve and shift of supply curve

movement	shift
Only one supply curve involved	Involves two supply curves
Caused by change in the price of a commodty	Caused by other factors besides the prices
Is the quantity supplies that changes	It is the supply that changes
A different quantity is supplied only at a different price	A differnt quantity is supplied at the same price as before
Can be traced up and dpwn the smae curve	Cause the entire supply curve to move either to the left or to the right

Effects of production activities on the envrionment
- Depletion of productive resources
- Degradation of the environment
- Pollution of air/water
- Rise in crime and anti-social activities
- Diverse effects on the ozone layer
- Disease and poor health caused by hadnling of chemicals
- Psychological diseases e.g. stress
- Noise poluution causing hearing problems

Monopoly vs monopolistic competition

Monopoly	Monopolistic
Exists only one single seller	Exists more than one firm/seller
No close substitutes	Products are differentiated
Exercises full control of the market	No single firm controls a significant proportion of the total market
The firm is the price giver/setter	A firm must exercise some caution before changing the price
Demand curve steeply slopes from left to right	The demand curve slopes gently from left to right

Factors that influences the choice of distribution channels
- Nature of the product
- Location of the market
- Cost of the channel
- Governemet policy
- The size of the market
- Nature of competition
- Need for after ssale service
- Amount of capital/finances
- Volume of goods produced
- Financial ability of the consumers
Limitations of using National income statistics to measure standard of living
- Data being used may not be accurate
- National income figures does not reflect the distribution of income
- Consumption patterns and lifestyles are not constant
- It may not show the proportion of income spent on productive or on productive activities
- A high income could be at the expenes of citizens social welfare
- Figures may not reflect depreciation/appreciation assets
1. Increase
2. Decrease
3. No effect
4. Decrease
Factors of demand for money
- Level of individual income
- Price level/inflation
- Interest rate
- Availability of credit facilities
- Individual's style of life/spending habits
Features of economic resources
- They are scarce/limited
- Have monetary value
- Unevenly distributed
- Can be combined
- Have utility/usefulness
- Can be tranferred form one person to another
Disadvantages of division of labor
- Lead to monotony resulting to boredom
- Hinders creativity
- Makes a worker dependant on one trade
- Encourage the use of machines which may lead to unemployment
- May make a country dependent on other countries
- Bring people together and this lead to social problem
- Lack of pride in the final product
- If a few people stop working the whople production process stops
Advantages of government involvement in business activities
- Provison of essential goos/services
- Provison of large capital invetsment
- Protection of citizens from exploitation
- Stimulation of economic development
- Create employment
- To generate government reveneue
- Stabilistaion of the ecnomy
- Promotre equity in distribution of resources
- Control use of resources
- Maintenance of law and order
- Promotion of best practices
- Reduce foreign dominance
- Promotion of entrepreneural culture
- Promote investment in the country
Re insurance circumstance
- When the value of the property it has insured is high
- When the chance of the risk occuring is very high
- When an insurance company has covered many risks
- Incase there is need for insurance comapny to spread the risk
- When the government policy makes it mandatory
1. Competitive advertising
  - Advertising which is aimed at convincing a customer to prefer a particular product
2. Celebrity Advertising
  - Advertising where a famous person is used to endorse a product by identifying with it e.g Nameless(muscles) yego etc
1. Income per head/per capita income
2. Optimum population
3. Under population
4. Over population
Jan 1: Business started with cash sh. 100000 as capital
2: Deposited cash from cash till o to the business account sh. 50,000
jan 8: Purchased stationery sh 10,000 and paid in cash
10: Purchased stationery worth shs. 4,000 and paid by cheque
1. Cash receipt
2. Outgoing credit note
3. Incoming invoice/purchases invoice
4. Outgoing invoice/sales invoice
2001: ¹⁰⁶⁹/₁₀₀₀× 1000 = 106.9
2002: ¹¹⁶²/₁₀₀₀× 1000 = 116.2
2003: ¹²⁰⁰/₁₀₀₀× 1000 = 120
2004: ¹³²⁵/₁₀₀₀× 1000 = 132.5