BUSINESS STUDIES PAPER 1 - KCSE 2019 JOINT PRE MOCK EXAMINATION NAMBALE

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  1. Outline four benefits that will accrue from four leaver who establishes a business. (4marks)
  2. Outline four circumstances under which goods may be transported by air. (4marks)
  3. Juma traders had the following information
    Opening stock                   40,000
    Closing stock                    55,000
    1 purchases                        200,000
    Margin                               25%
    Required
    1. Calculate Jumas Rate of stock turn over. (3marks)
    2. State the importance of having a low rate of stock turnover. (1mark)
  1. Highlight four goals of development. (4marks)
  2. ABC trader is a small scale shop in a town. Highlight four reasons why it continues to exist despite the high competition from supermarkets in the neighbourhood. (4marks)
  3. Outline four strategies though ways in which a business may be expanded. (4marks)
  4. Identify the nature of the following production activities. (4marks)

    Activity

    Nature

    (a)    Banking

     

    (b)   Lumbering

     

    (c)    Oil refining

     

    (d)   Building roads

     
  1. State the significance of the following insurance policies. (4marks)
    1. Indemnity
    2. Subrogation
  1. The diagram below shows an illustrationofcircular flow of income in a two sector economy.
    Identify the parts labeled a,b,c and d.
  1. The table below shows the consumer price index over a period of five years. Using 2011 as the base year determine the prices for the years 2012, 2013, 2014 and 2015. (4marks)

    Year

    Price 

    C.P.I

    2011

    90

     

    2012

     

    112

    2013

     

    115

    2014

     

    117

    2015

     

    120

  1. Identify the types of document in home trade that best fits the description below. (4marks)

    Description

    Document 

    Evidence that cash payment has been made.

     

    Sent to the buyer when hired transport.

     

    Informs the buyer that goods are on transit

     

    Corrects on undercharge

     
  1. Outline fourstrategies that can be used to make verbal communication effective. (4marks)
  2. The following information relates to Maili Tisa traders.
    7/1/19        Sold goods on credit to matunda worthShs. 25,000/=
    9/1/19        Matunda paid by cheque part of his debt valued at Kshs. 15,000/=
    8/1/19        Matunda returned to the business goods worthKshs. 500
    Required
    Prepare Mailitisa, traders, debtors matunda account.                               (4marks)
  1. Identify four ways in which the central bank controls the currency in a country. (4marks)
  2. Outline four circumstances that may lead to an increase in the supply of maize in the market.                                                                   (4marks)
  3. Outline four ways in which the balance of payments of a country may be improved. (4marks)
  4. Identify the source documents into which the information given in the table would be recorded.

    Information

    Source documents

    Payment made to creditors

     

    Sales made on credit

     

    reducing payment due from a creditor

     

    Validating payments by cashier

     
  1. Highlight four benefits of using personal selling in product promotion. (4marks)
  2. Outline four advantages of office machines.             (4marks)
  3. Highlight four circumstances through which a firm may acquire monopoly status. (4marks)
  4. Outline four challenges faced by a country with a young population. (4marks)
  5. Outline four benefits a person will get by joining a consumer cooperative society. (4marks)
  6. Give four reasons that may make a government to prefer indirect taxes. (4marks)
  7. Highlight fouradvantages of using credit cards for payment. (4marks)
  8. Identify four characteristics of chain stores. (4marks)

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