(THEORY)
PAPER 1
OCT. /NOV. KCSE 2020
INSTRUCTION TO CANDIDATES
(b) Sign and write the date of examination in the spaces provided above.
(c) Answer all the questions in the spaces provided in the question paper.
(d) Non-programmable silent electronic calculators may be used
(e) This paper consists of 12 printed pages. Candidates should check the question paper to ascertain that all the pages are printed as indicated and that no questions are missing.
( (g) Candidates should answer the questions in English.
Q1. KCSE 2020 BUSINESS STUDIES PAPER 1, 2020
1.List four external environmental factors that may influence the operation of business include;
2. state four characteristics of direct production include;
3. Name the documents described in each of the following statements:
(a) Used to demand payment before goods are delivered
(b) Used as a reply to a specific letter of inquiry
(c) informs the buyer that the goods ordered has been dispatched
(d) Used to correct an overcharge
4.Highlight four reasons for government involvement in business ;
5. Factors four factors that may lead to a shift in demand as shown below. (i.e a negative shift in demand)
6.Outline four circumstances under which a trader would prefer to transport goods by air include:
7.The following information was obtained from the books of Sindo Limited on 31 Dec 2015.
Determine the total liabilities of the business
Total asset= 20,000+1,500+2,000+4,000=27,500
Capital= 24,000
Assets= capital + liabilities
Liabilities= assets – capital
=(27,500-24,000)
=3,500sh
8.Highlight four services that commercial banks offer to their customers
9. Outline four reasons that may make Kenya restrict trade with other countries:
10. Classify the following resources as man-made, natural or human
classification of resources;
11. List four sources of capital for a sole proprietorship.
a) owners saving
b)contribution from friends/relatives
c] borrowing from friends institutions/friends
d] credit buying
e] ploughing back profit
f] inheritance
g] leasing of assets
h] renting of assets
12.Highlight four circumstances under which firms may be located near the source of raw materials include;
A] where it is cheaper to transport finished goods than raw materials
B] where the firm needs to ease handling of bulky raw materials
C] when dealing with highly perishable raw materials to avoid spoilage
D] if the government policy requires the firm to be located near the source of raw materials
E] where the firm wants to control an important raw material
F] where the raw materials are fragile
G] where the raw materials are dangerous to carry over long distances
13. Kombo traders trial balance as of 30th April 2018.
Required: Prepare Kombo Traders trial balance
particulars |
Dr. shs. |
Cr.ss |
Land and building |
150,000 |
|
Motor car |
120,000 |
|
bank |
4,000 |
|
cash |
25,000 |
|
creditor |
|
1,500 |
sales |
|
5,000 |
purchases |
18,000 |
|
capital |
|
311,000 |
TOTALS |
317,500 |
317,500
|
14. Outline four reasons that would make an entrepreneur prepare a business plan;
a] To foresee and avoid mistakes that could be committed in future
b] To identify strengths and devise ways of dealing with weaknesses of the business
c] It’s a requirement by financiers
d] To help determine required resources
e] To enable an entrepreneur to identify potential market
f] To enable the business organization to avoid gaol blindness
g] To allocate resources appropriately
h] To use it as a monitor tool
i] To able to motivate employees
j] To adapt to future change
15. Identify the Office equipment described in each of the following statements;
a] franking machine
b] telephone/radio call
c] safe/cabinet
d] dictaphone/dictating machine/ recorder
16. State four sources of government revenue;
a] Court fines
b] Rent and rates received for use of government property
c] licence
d] Dividends and profit earned from it’s an investment
e] Taxes
e] Internal borrowing
f] External borrowing
g] Proceeds from sales of government property
h] Grants and donations
17. Outline four measures that may be taken by the government to address the problem underdevelopment 4mks;
A] increasing [government] investments to create more job opportunities
B] control population explosion to reduces overdependence and pressure on resources
C] improve infrastructure to ease communication, movement and access to inputs
D] improve the education system to alleviate illiteracy and impart appropriate skills
E] income redistribution
F] encourage good governance to promote self-reliance
G] improve technology for maximum utilisation of natural resources
H] provision of incentives to promote a culture of savings
18.Highlight four benefits of personal selling to a trader ;
A] The trader is able to reach both literate and illiterate customers
B] Able to demonstrate the uses and capabilities of the product
C] The trader is able to get immediate feedback
D] Can tailor the presentation to suit the needs of individual customer
E] Create customers loyalty
F] Enables the traders to focus on a targeted group of a products
G] Seller has the opportunity to get information on competitors from the buyers
H] May promote instant sales
I] It’s more persuasive and convincing to customers
19.outline four channels that can be used to distribute imported goods.
a) |
Foreign producer→ agent→wholesaler→retailer→customer |
b) |
Foreign producer→local wholesaler→retailer→consumer |
c) |
Foreign →local consumer |
d) |
Foreign producer→local wholesaler→consumer
|
e) |
Foreign producer→local retailer→consumer |
20.State four merits of a bonded warehouse to the government;
a) Enables the government to earn revenue
b) Enables enables the government to control the equality of goods imported
c) Helps the government to prevent the importation of harmful commodities
d) Enable the government to curb evasion
e) Help the government to collect statistics on imported goods/goods on transit
f) Enables the government to inspect goods entering the country/types of goods
g) It help the government solve the problem of unemployment
21. The source documents are;
a)Outgoing credit notes
b) Purchase invoice/incoming invoice
c) Copy of cash sales receipt/cash
d) Sales invoice/outgoing invoice
22.State four ways through which leakages of national income may happen in a four sectors
a) Savings by households.
b) Government taxes on citizens and firms
c) Payment for imports
d) Transfer payments by government
e) foreign aid and grant by the government
f) Retained profits by firms
23.State four benefits of computers in an office ;
a)Facilitates easy communication through the internet
b) They are efficient in preparation and reproduction of document/saves time
c) They reduce paperwork
d) They are capable of storing huge volumes of information
e) Facilitates easy access to information(retrieving of information)
f) They facilitate e-commerce
g) It is labour-saving
24. Identify four factors of production that relate to each of the following resources
a) Labour
b) Capital
c) Land
d) Entrepreneurship
25.state four sources of business ideas.
a) Print media e.g newspaper, journals and magazines
b)Electronic media e.g television,computer
c) Vocational training
d) Hobbies/talents
e)Listening to what people say
f)Unutilized waste materials
g) Observing established entrepreneurs/role models
h) Experience
i) Research and development/surveys
j) Shows and exhibitions
k) Suporting agreat gap/inche
l) Brainstorming
m) Business seminar/workshops