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KCSE CLUSTER TESTS 20

Business Studies Paper 1

1.

Identify four classes of business activities that one may engage in. (4mks)

a)………………………………………………………………………………………

……………………………………………………………………………………….

b)………………………………………………………………………………………

……………………………………………………………………………………….

c)………………………………………………………………………………………

……………………………………………………………………………………….

d)………………………………………………………………………………………

……………………………………………………………………………………….

4 marks

2.

Outline four circumstances when cheque payment would be preferred to cash payment. (4mks)

a) …………………………………………………………………………………….

…………………………………………………………………………………….

b) …………………………………………………………………………………….

…………………………………………………………………………………….

c) …………………………………………………………………………………….

…………………………………………………………………………………….

d) …………………………………………………………………………………….

…………………………………………………………………………………….

4 marks

3.

Highlight four benefits of public corporations to the citizen of a country.

a) ……………………………………………………………………………………

……………………………………………………………………………………

b) ……………………………………………………………………………………

……………………………………………………………………………………

c) ……………………………………………………………………………………

……………………………………………………………………………………

d) ……………………………………………………………………………………

……………………………………………………………………………………

4 marks

4.

Identify four services that facilitate communication in Kenya.

a) ……………………………………………………………………………………

……………………………………………………………………………………

b) ……………………………………………………………………………………

……………………………………………………………………………………

c) ……………………………………………………………………………………

……………………………………………………………………………………


d) ……………………………………………………………………………………

……………………………………………………………………………………

4 marks

5.

State four ways in which land may influence the location of firms

a) …………………………………………………………………………………..

…………………………………………………………………………………..

b) …………………………………………………………………………………..

…………………………………………………………………………………..

c) …………………………………………………………………………………..

…………………………………………………………………………………..

d) …………………………………………………………………………………..

…………………………………………………………………………………..

4 marks

6.

State four essential features of any market.

a) ………………………………………………………………………………….

………………………………………………………………………………….

b) ………………………………………………………………………………….

………………………………………………………………………………….

c) ………………………………………………………………………………….

………………………………………………………………………………….

d) ………………………………………………………………………………….

………………………………………………………………………………….

4 marks

7.

State four factors that limit the success of trade agreements among African countries.

a) ……………………………………………………………………………….

b) ………………………………………………………………………………….

c) ………………………………………………………………………………….

d) ………………………………………………………………………………….

4 marks

8.

The following information relates to Bonga Retail Shop as at 31st December 2012

Opening stock - 80,000

Closing stock -100,000

Sales - 325,000

Rates of stock Turn Over is 3 times .

Calculate

a) The cost of goods sold


b) The gross profit

4 marks

9.

Identify four sources of business ideas.

a) ………………………………………………………………………………….

b) ………………………………………………………………………………….

c) ………………………………………………………………………………….

d) ………………………………………………………………………………….

4 marks

10.

Match the following statements with the relevant document used in home trade.

4 marks

11.

Highlight four ways that can be used by the government to regulate business activities.

a) ………………………………………………………………………………………

………………………………………………………………………………………....

b) ………………………………………………………………………………………

………………………………………………………………………………………....

c) ………………………………………………………………………………………

………………………………………………………………………………………....

d) ………………………………………………………………………………………

………………………………………………………………………………………....

4 marks

12.

Highlight four advantages of rail transport.

a) ………………………………………………………………………………………

b) ………………………………………………………………………………………

c) ………………………………………………………………………………………

d) ………………………………………………………………………………………

4 marks

13.

Outline four differences between a movement along a supply curve and a shift of a supply curve.

4 marks

14.

Identify four limitations of using national income statistics to measure standards of living in a country.

a) ………………………………………………………………………………………
………………………………………………………………………………………....

b) ………………………………………………………………………………………

………………………………………………………………………………………....

c) ……………………………………………………………………………………….

……………………………………………………………………………………….....

d) ………………………………………………………………………………………

……………………………………………………………………………………….....

4 marks

15.

Indicate the subsidiary ledger in which each of the following should be recorded.

Account . Subsidiary Ledger.

a) Return inwards …………………………………………….......

b) Discount Received ……………………………………………..

c) Drawings …………………………………………….................

d) Bank …………………………………………….........................

4 marks

16.

Outline four advantages of barter trade to the society.

a) ……………………………………………………………………………………..

……………………………………………………………………………………......

b) ……………………………………………………………………………………..

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c) ……………………………………………………………………………………..

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d) ……………………………………………………………………………………..

……………………………………………………………………………………......

4 marks

17.

State four ways of protecting an organization’s properties.

a) ………………………………………………………………………………………

………………………………………………………………………………………....

b) ………………………………………………………………………………………

………………………………………………………………………………………....

c) ………………………………………………………………………………………

………………………………………………………………………………………....

d) ………………………………………………………………………………………

………………………………………………………………………………………....

4 marks

18.

Outline four ways by which business resources may cause business success.

a) ……………………………………………………………………………………..

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b) ……………………………………………………………………………………..

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c) ……………………………………………………………………………………..

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d) ……………………………………………………………………………………..

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4 marks

19.


State four features of a bonded warehouse.

a) …………………………………………………………………………………….

……………………………………………………………………………………......

b) …………………………………………………………………………………….

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c) …………………………………………………………………………………….

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d) …………………………………………………………………………………….

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4 marks

20.

Give the meaning of the following terms as used in insurance. (4mks)

a) Surrender value…………………………………………………………………

………………………………………………………………………………….........

b) Proposer………………………………………………………………………...

………………………………………………………………………………….........

c) Re –insurance…………………………………………………………………..

………………………………………………………………………………….........

d) Binder………………………………………………………………………….....

…………………………………………………………………………………..........

4 marks

21.

Prepare a balance sheet from the following balances of Tumaini Traders as at 30th June 2012.

Fittings & furniture 80,000

Bank loan 30,000

Prepaid rent 10,000

Insurance due 20,000

Buildings 100,000 Creditors 15,000

4 marks

22.

Outline four characteristics of an optimum population.

a) ……………………………………………………………………………………..

…………………………………………………………………………………….......

b) ……………………………………………………………………………………..

…………………………………………………………………………………….......

c) ……………………………………………………………………………………..

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d) ……………………………………………………………………………………..

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4 marks

23.

List four examples of indirect tax.

a) ……………………………………………………………………………………

……………………………………………………………………………………....

b) ……………………………………………………………………………………

……………………………………………………………………………………....

c) ……………………………………………………………………………………

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d) ……………………………………………………………………………………

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4 marks

24.

Outline four causes of inflation in an economy. (4mks)

a) …………………………………………………………………………………….

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b) …………………………………………………………………………………….

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c) …………………………………………………………………………………….

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d) ……………………………………………………………………………………....

……………………………………………………………………………………........

4 marks

25.

The following is a cash book that was extracted from Koile business for the month of April 2013.

Required:

Indicate the transactions that took place on the dates given below.

a) April 1................................................................................................................................

b) April 5.................................................................................................................................

c) April 25...............................................................................................................................

d) April 30...............................................................................................................................

4 marks

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