Business Paper 1 Questions - Alliance Boys High School Post Mock KCSE 2020

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Section 1

  1. Define
    1. Generic competition (Imk)
    2. Enterprise competition (Imk)
  2. Name four activities involved in managing people (4mks)
  3. List four services rendered by a retailer to a wholesaler (4mks)
  4. List three characteristics of an itinerant trader (3mks)
  5. Highlight four disadvantages of a website (4mks)
  6. List four functions of a department manager (4mks)
  7. List four reasons for need for ethical issues in business (4mks)
  8. List two categories of tertiary level of production (2mks)
  9. List three disadvantages of a private limited company (3mks)
  10. Outline four demerits of government involvement in business activities (4mks)
  11. List four government-initiated methods of consumer protection (4mks)
  12. List 3 disadvantages of containerization (3mks)
  13. List three lines of communication (4mks)
  14. List three types of private warehouses (4mks)
  15. List four benefits of pooling of risks (4mks)
  16. List four factors that may necessitate re-insurance (4mks)
  17. List three advantages of public relations (3mks)

Section 2

  1. The following transactions took place in the Kagina's Kiosk in January 2019
    1. 1st started the business with sh. 150,000 capital, ksh. 100,000 cash and ksh. 50,000 in bank
    2. 2nd Bought furniture worth ksh. 75,000 paid through bank where the balance was treated as an overdraft
    3. 3rd Made purchases worth sh. 30,000 paid by cash 
    4. 4th Made purchases from Coca-cola worth ksh. 120,000
    5. 5th Repaid the bank overdraft by cash
      Required: record the transactions in their respective ledger accounts and balance them off
  2. After high school, Ali wants to start a business in a city in Kenya. Highlight five reasons that he should consider hefore deciding the location of his business.
  3. Explain 5 terms of sale in international trade
  4. The following transactions took place in the Mali Safi Enterprises in the first week of February 2020 
    1. 1st "started business with sh. 95000 cash, sh. 77000 at bank, and a building worth sh. 76000 
    2. 2nd took a loan from ICDC sh. 1,000,000, which was processed through his bank 
    3. 3rd Made sales to Njuguna worth sh. 60,000 where terins of sale was 10% discount if payment is made within 30 days. 
    4. 4th cash sales sh. 5000 paid through bank 
    5. 5th cash purchases sh. 6000 paid by cheque 
    6. 6 Njuguna paid all his debt by cash 
    7. 7th Gave cheques to the following Ondego sh. 20,000, Gathagu sh. 5000, and Kanini sh. 4000 after being allowed 10% discount, Paid water bill sh. 3500 and lighting sh. 1700 by cheque
      Additional information. On daily basis, the business was paying sh. 500 as wages by cash
      Required prepare: record the transactions in a three-column cash book and balance it off at the end of the week.
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