KCSE 2024 Business Studies Paper 1

1. Factors that may determine the fertility rate of a population include:

(a) Literacy levels among the population.

(b) The marriage rate among people in the productive age bracket.

(c) Cost of bringing up children.

(d) Economic significance of a large family, e.g. children seen as a source of cheap labour.

(e) Cultural beliefs e.g. many children were a source of prestige.

(f) Religious factors where some religions prohibit the use of family planning.

(g) Availability of social amenities such as medical facilities.

(h) Government policies regarding family size.

Unit of Carriage:

a) Human beings.

b) Vehicles/cars.

c) Ships.

d) Aircrafts/Airplanes

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4. Advantages of XBC company being listed on the Nairobi Security Exchange (NSE) include:

a) NSE will facilitate buying of shares for XBC Company.

b) NSE will facilitate selling of shares for XBC Company.

c) NSE provides useful information which is timely, accurately and reliable to the company.

d) NSE can assist XBC Company to raise capital.

e) NSE is a form of publicity for the company.

f) NSE ensure better management of XBC Company

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5. Causes of business success includes:

a) Availability of capital.

b) Proper planning, management

c) Application of appropriate technology.

d) Good customer relations.

e) Availability of ready market.

f) Good infrastructure

g) Favourable government policy.

h) Availability of raw materials/stock

i) Fair competition

j) Owners commitment to the business

k) Proper distribution management

6. Reasons that may influence a consumer to satisfy basic wants before secondary wants include:

a) They are essential for survival.

b) The consumer has limited resources.

c) They cannot be postponed.

d) They are felt needs.

7. Responsibilities of Jane as the personal secretary to CEO includes:

a) Receiving and filling information.

b) Booking appointments for the CEO.

c) Taking and writing minutes during meetings.

d) Maintaining small amounts of money for petty cash purchases in the office.

e) Receives and makes calls for the CEO. f) Ushering in visitors to the CEO’s office.

g) Supervising junior secretarial staff

h) Taking dictation from the CEO

i) Making travel arrangements for the CEO

c) Taking and writing minutes during meetings.

d) Maintaining small amounts of money for petty cash purchases in the office

e) Receives and makes calls for the CEO.

f) Ushering in visitors to the CEO's office.

g) Supervising junior secretarial staff

h) Taking dictation from the CEO

8. Trends in the transport sector in Kenya include:

a) Electric vehicles.

b) Dual carriage roads are being developed.

c) Use of technology such as google maps.

d) Use of boda boda/motor cycle for convenient purpose.

e) Private personal vehicles with less carrying capacity referred to as taxis with mobile applications for requesting a ride.

f) Electric motor cycles are being introduced in the sector.

g) Introduction of standard gauge railway system.

h) Use of tri-cycles e.g tuktuk.

i) Express way

10. Demerits of government involvement in business in the country include:

a) Political interference.

b) Discourage private investments/existing business becoming insolvent.

c) Poor quality of goods and services.

d) Limited choices for consumers when the government business is a monopoly.

e) Unstable management as it may keep on changing depending on the current government.

f) Lack of accountability thus corruption.

g) Burden to the tax payers in bailing them out

h) Bureaucracy leads to delays in service delivery

11. Uses of a balance sheet to the business include:

a) Used to determine if the company can sustain future operations/financial position.

b) Can be used to borrow money.

c) Can be used to determine if working capital is enough.

d) Used for decision making and planning purpose.

e) Used to compare the business performance with that of other similar businesses.

f) Used as one of the documents required by the government for taxation purpose.

g) indicates networth of the business/financial position of the business

12. Factors that may lead to favourable balance of payment for a country includes:

a) Increased volumes of a country's exports.

b) Decreased volumes of imports.

c) Devaluation of a country's currency.

d) Improved terms of trade making exports fetch better prices as compared to imports.

e) Formation of trading blocs allowing for more exports.

f) Reduced foreign expenditure to limit capital outflow.

g) Increased capital inflows

13. Features of a bonded warehouse include:

a) Storage charges are made on all goods stored in the warehouse.

b) Goods can be sold while still under bond.

c) Goods can be bonded till custom duty is paid.

d) They are used to store imported goods/dutiable goods

e) Goods can be re-exported while still in the bonded warehouse.

f) Goods can be released only on production of a release warrant.

g) Located at the entry points of a country for inspection

h) Controlled by customs officers/customs department

14. Forms of business units described include:

a) Partnership.

b) Private limited company.

c) Co-operative society.

d) Public limited company.

16. Internal sources of public finance include:

a) Fines imposed on offenders

b) License Fee.

c) Taxes.

d) Profit from government parastatals/dividends

e) Proceeds from sale of government properties./Lease/Renting income

f) Rent and rate paid for use government properties./Leasing income

g) Domestic borrowing (Sales of Treasury bills and bonds).

17. Factors that may facilitate a high rate of economic development include:

a) Focus on industrial growth/industrialization.

b) Development in infrastructure / social amenities.

c) Enhance research on development planning.

d) Education and training which is skill oriented.

e) Increased use of technology.

f) Endowed with resources. g) Political stability.

h) Development of social amenities/infrastructure

i) Elimination of outdated culture/corruption

j) Good governance e.g absence of corruption

k) Positive attitude towards work

l) Increase investment and savings

m) Favorable climate/environment

18. Types of taxes:

a) Excise duty.

b) Estate duty.

c) Custom duty.

d) Corporate duty/tax

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20. Benefits of trade to the economy of Kenya include:

a) Helps people to acquire what they cannot produce.

b) Avails a variety of goods and services thereby improving the living standards of people.

c) Creates employment opportunities.

d) Encourages specialization and division of labour.

e) Ensures steady supply of goods and services.

f) Economic growth and development through collection of revenue by the government.

g) Exploitation and utilization of locally available resources.

h) creates market for surplus products

i) creates good relations among trading parties

21. Factors to be considered by the Principal on the means of communication to use include:

a) The cost involved of the means of communication.

b) Availability of the means of communication.

c) Reliability that the message will reach the parents/guardians.

d) The literacy level of the parents/guardians.

e) The urgency of the message.

f) The confidential nature of the information being sent.

g) The need for evidence / geographical coverage

h) Distance involved / geographical coverage

i) Accuracy of the message.

22. External economies of scale that a firm may enjoy when operating on a large scale include:

a) Ready market from the surrounding industries.

b) Access to skilled labour force.

c) Improved infrastructure.

d) Easy disposal of waste.

e) Ready available complementary services like banking, insurance. etc

f) Government support.

g) Improved security.

h) Joint research.

i) Readily available raw materials

j) Access to improved technology

23. Business transactions that affect accounting in the business include:

a) Borrowing money from the bank.

b) Purchasing of goods.

c) Paying rent-and-other utilities bills e.g rent

d) Sale of goods. e) Paying interest.

f) Paying wages and salaries to employees.

g) Selling shares to investors.

h) Purchasing insurance.

i) Repayment of a loan.

j) Paying taxes.

k) Purchasing of fixed assets.

l) Receipts from debtors

m) Payment to creditors

n) Depositing cash to the bank

o) Withdrawing cash from the bank

NB/ Any other relevant transaction.

24. Classification of production activities as either primary, secondary or tertiary:

a) Primary.

b) Tertiary.

c) Primary.

d) Secondary.

e) Tertiary.

f) Secondary.

g) Secondary.

h) Tertiary.