Business Studies Paper 1 Questions - Kapsabet Boys Post Mock 2023 Exams

INSTRUCTIONS 

•  Answer ALL the questions.

QUESTIONS

1. State four demographic factors that affect the operation of the business. (4mks)
2.  Corruption is a big problem in Kenya. Highlight four ways in which it affects the economic growth of
   businesses (4mks)
3. State four factors that affect the flow of national income. (4mks)
4. Highlight four circumstances under which a partnership can be dissolved. (4marks)
5. State four goals of development in a country. (4mks)
6. Highlight four ways in which monopoly differs with perfect competition. (4mks)
7. List four stages in their order of occurrence in the historical development of money. (4mks)
8. Omondi wants to communicate to his suppliers. Highlight four reasons that will make him use
   letters instead of telephone. (4 marks)
9. For the year ended 31^st December 2004 (4mks)
   Total assets Shs. 427500, Total liabilities Shs. 4800
   1. Additional capital introduced was Shs. 24000
   2. Drawings made during the year was Shs. 2000
   3. Net profit was Shs. 34500
      Required to:
      Determine the capital as at 31^st December 2004
10.  A lucrative processing firm has been constantly releasing toxic wastes into the neighborhood. Outline four measures you may take to stop the firm from such malpractices. (4 marks)
11. State four benefits that people from your area may benefit from business enterprise. (4mks)
12. Serah Wanjiru provided the following information for the month of January 2018
                                 Sh.
    Opening stock    200,000
    Closing stock     300,000
    Margin               20%
    Purchases       500,000
    Prepare her trading account for the month ending 31^st January 2018. (4marks)
13. Highlight four demerits of newspapers as a means of advertising (4mks)
14. For each of the following transactions, state the accounts to be debited and credited. (4mks)
    Transaction                                             Account to debt                             Account to credit
    1.  Paid creditor from private source _________________________     _______________
    2. Bought goods and paid by cheque ____________________              ____________________
    3. Proprietor brought in cash from private source_________________    ________________
    4. Withdrew cash from bank for office use ____________________       ________________
15. Globalization is a term often used to denote business ownership and trend. Outline four merits of
    globalization of business units. (4mks)
16.  State whether each of the following transactions will increase Decrease or have no effect on the balance
    sheet totals. (4mks)
    Transactions                                                                                        Effects on the balance sheet
    1. Funds from private savings deposited in bank account_______________________________
    2. Paid a creditor in cash ________________________________
    3. Withdrew money from bank for office use ________________________________
    4.  Purchased a motor vehicle paying by cheque ________________________________
17. List four stages of histerical development of money. (4mks)
18. Highlight four advantages of paying for transactions using a cheque. (4mks)
19. Highlight four features of oligopoly market structure. (4mks)
20. The following balances were extracted from the books of Kamau Traders as at 31^st December 2017.
    Buildings 100,000
    Debtors 54,700
    Capital 136,000
    Sales 85,000
    Purchases 49,000
    Stock (Jan.2017) 25,500
    Creditors 37,500
    General expenses 31,800
    Bank overdrafts: 2,500
    Required
    Prepare a trial balance at at 31^st Dec. 2017 (5 marks)
21.  In each of the following statement give the type of utility created. (4mks)
    Statement                                                                                          Type of utility
    1. Student buying a pen from a school canteen        ________________________________
    2. A farmer taking mangoes to the market                ________________________________
    3. Kamau banking money with Equity bank               ________________________________
    4. Making a table                                                      ________________________________
22. Outline four reasons why a business person may prefer written communication to verbal
    communication (4mks)
23.  Identify various types of direct taxes described in the table below.
    

    Description	Type of tax
    a) Tax levied on personal income
    b) Tax levied on profits of a company
    c) Tax levied on inherited property
    d) Tax levied on profit made from sale of assets

24.  Highlight four measures that a government may take to reduce the mortality rate in a country
    (4mks)
25. State four sources of public finance (4mks)