Business Paper 1 Questions - Maseno Mock Examinations 2022

QUESTIONS

1. Highlight four ways in which Internal Business environment can be improved. (4mks)
2. Outline four internal diseconomies of scale that a larger firm may suffer from. (4mks)
3. Highlight four factors that encourages entrepreneurship development in a Kenya. (4mks)
4. Mention four measures the Kenyan Government can take to improve performance of parastatals. (4mks)
5. In the table below classify the following items as either intermediate, capital, consumer or public goods. (4mks)
   

   ITEMS	CLASSIFICATION OF GOODS
   i) Lorry ii) Television in the House iii) Church iv) Cotton

6. Name the tax described in each of the following cases. (4mks)
   

   DESCRIPTION	TAX
   i) Charged when a property of the dead is transferred to the next person ii) Charged when an asset is being sold at higher value than the original cost iii) Charged on the profits of the Business organizations. iv) Charged on goods and services sold from Kenya to other countries.

7. Outline four benefits the office enjoys from the use of modern office equipment. (4mks)
8. The following assets and liabilities were obtained from Wanjala traders on 27th Feb, 2021. (4mks)
   Capital 120,000
   Land 60,000
   Creditors 35,000
   Debtors 40,000
   Stock 45,000
   Bank 10,000
   On 28th February, the following transactions took place
   Sold stock worth ksh.20,000 on credit
   The piece of land was sold for 75,000 cash.
   Required: Prepare Wanjala’s balance sheet as at 28/12/2021.
9. The trend below shows supply of cabbages in a market during the years indicated
   Outline four factors leading to the trend above. (4mks)
10. Use the following information to prepare trading account of Chebukati Traders for the period ended 31/1/2020. (5mks)
    Opening stock Sh.200,000
    Closing stock Sh.300,000
    Purchases Sh.500,000
    Margin 20%
    Required: Prepare Chebukati’s trading account for the period ended 31/1/2020.
    

    Year	Supplied Quantity
    2015 2016 2017 2018	10,000 8,300 6,230 5,100

11. Highlight four benefits of economic planning in a country (4mks)
12. Highlight the importance of each of the following documents used in foreign trade.. (4mks)
    
    1. Revocation letter of credit 
    2. Closed indent
    3. Consular invoice
    4. Letter of Hypothecation
13. Mention four factors to be considered before location of a public warehouse. (4mks)
14. Highlight four importance of political stability to businesses in the country. (4mks)
15. Outline four conditions that an insurance policy must have for it to be legally valid. (4mks)
16. State four features of effective communication. (4mks)
17. Highlight four statutory measure in controlling of inflation. (4mks)
18. State four ways in which Central Bank act as a Banker to the commercial banks. (4mks)
19. Outline four problems encountered in measuring National Income using Income approach. (4mks)
20. State the type of ledger in which the following accounts are kept. (4mks)
    

    Account	Ledger
    i) Premises Account ii) Profit and loss Account iii) Omollo, (a debtor) iv) Bank Account

21. Mention four accounting documents that are used in Home trade. (4mks)
22. Outline three conditions necessary for price discrimination in the market by monopoly. (3mks)
23. Highlight four importance of transport in the economy. (4mks)
24. Outline four ways in which manufacturers may enhance consumer protection. (4mks)
25. Outline four current trends in product promotion in Kenya . (4mks)