Business Studies Paper 1 Questions with No Answers - Maseno Mock Exams 2020/2021

Share via Whatsapp

Instructions to Candidates:

  • Answer ALL questions


  1. State the type of business described in each of the following activities.(4marks)
    1. Obtaining items from their natural state
    2. Combining wheat flour, sugar yeast and oil to come up with a loaf of bread
    3. Conversion of sugarcane into sugar
    4. Selling insurance policy to a bus company
  2. Highlight four disadvantages of long chain of distribution of products in local market (4marks) 
  3. Outline four problems faced by a country that doesn’t undertake Development Planning 4marks)
  4. Mention four components of expenditure used in computation of national income through expenditure approach (4marks)
  5. The following are documents used in foreign trade, highlight one way in which each facilitates foreign trade. (4marks)
  6. Highlight four benefits of Standard Gauge Railway (SGR) to the Kenyan economy. (4marks)
    1. Define the term Double Entry Concept (1mk)
    2. The following assets and liabilities were obtained from the books of
      Mwita traders on 25th Jan 2020.
      Capital 120,000
      Machinery 80,000
      Creditors 10,000
      Debtors 20,000
      Stock 25,000
      Bank 5,000
      On 30th Jan, 2020, the following transactions took place;
      Purchased goods worth kshs.15,000 on credit
      Machinery was sold kshs 75,000 on credit
      Required: Prepare Mwita’s Balance sheet as at 31/01/20202.(5marks)
  8. Outline four factors to be considered in planning office layout (4marks)
  9. The diagram below shows relationship between population and per capita income
    PopulationPerCapitaIncome busP1 maseno2021
    Highlight four reasons why a country would prefer it’s population size to be at point P (4marks)
  10. Highlight four reasons for locating bonded warehouses at the entry points of a country (4marks)
  11. Give the terms described in the following statements as used in public finance (4marks)
    I) Tax system where the poor
    bear more burden than the rich
    II) Funds borrowed by the
    country to undertake activities
    which do not generate further
    III) Government borrowing
    heavily from local financial
    institutions denying local
    investors funds to borrow
    IV) When tax is passed from seller
    to the buyer through sale of
  12. Outline four ways through which products are differentiated in monopolistic competition market. (4marks)
  13. Highlight four advantages to a business organization which operates a chain store. (4marks)
  14. Outline four Business considerations before investing in an opportunity (4marks)
  15. Highlight four importance of Kenya bureau of standards (KEBS) to the Kenyan Economy (4marks)
  16. The table below shows quantities demanded and quantity supplied of tomatoes in Kenya in the month of January 2020 at the prices shown.
    Price in kshs  Quantity demanded
    in tonnes 
    Quantity supplied in
     20  800  200
     40  600  300
     60  550  380
     70  400  400
     80  300  500
     90  250  600
     110  100  700
    1. From the schedule above, prepare price mechanism (4marks)
    2. State the law of Demand (1mk)
  17. The following information was extracted from the books of Devante traders on 31/12/2019
    Mark up 20%
    Opening stock 90,000
    Closing stock 150,000
    R.O.S.T         3 times
    1. Gross profit (2marks)
    2. Purchases (2marks)
  18. Outline four criteria used in classifying partners in partnership form of Business unit
  19. Give four current trends in money and banking in Kenya (4marks)
  20. Mention three reasons why businesses involve celebrities in advertising their products. (3marks)
  21. Highlight four disadvantages of division of labour in a production process (4marks)
  22. Outline four diseconomies of scale that a large firm may suffer from(4marks)
  23. Highlight the importance of the following insurance terms; (3marks)
    1. Surrender Value
    2. Annuity
    3. Consequential Loss
  24. Outline four ways through which central bank of Kenya may control deflation in the Kenyan economy. (4marks)
  25. The following relates to Kipkorir Merchants Ltd in January 2020.
    4th Jan 2020 Purchased computers on credit from BML Ltd for Ksh.200, 000
    17th Jan 2020 Sold an old tractor on credit to farm Ltd for Ksh.550, 000, the tractor costed ksh. 750,000 two years earlier
    Enter the above transactions into General journal (4marks)
Join our whatsapp group for latest updates

Download Business Studies Paper 1 Questions with No Answers - Maseno Mock Exams 2020/2021.

Tap Here to Download for 50/-

Why download?

  • ✔ To read offline at any time.
  • ✔ To Print at your convenience
  • ✔ Share Easily with Friends / Students

Get on WhatsApp Download as PDF
Subscribe now

access all the content at an affordable rate
Buy any individual paper or notes as a pdf via MPESA
and get it sent to you via WhatsApp


What does our community say about us?

Join our community on:

  • easyelimu app
  • Telegram
  • facebook page
  • twitter page
  • Pinterest