565/1 · BUSINESS STUDIES · Paper 1 · Mar. 2022 (KCSE 2021) · 2 hours
Instructions: Answer all the questions in the spaces provided. Non-programmable silent electronic calculators may be used.
1. State four characteristics of a successful entrepreneur. (4 marks)
2. List four types of business activities. (4 marks)
3. Outline four challenges that may be faced in the satisfaction of human wants. (4 marks)
4. Match four factors of production with their corresponding rewards. (4 marks)
5. Highlight four factors that may be considered when choosing a means for transporting cash. (4 marks)
6. State four ways in which the government may be involved in business. (4 marks)
7. Outline four benefits of a partnership. (4 marks)
8. List four mailing services that facilitate communication. (4 marks)
9. On the diagram below, show the effects of increased demand. (4 marks)
10. Outline four factors that may influence a firm's decision on the type of goods to produce. (4 marks)
11. Highlight four benefits of localisation of firms. (4 marks)
12. Write the bookkeeping equation for the business whose transactions are given below: started a business with Ksh 10,000 in cash; acquired a loan of Ksh 50,000 which was directly banked. (4 marks)
13. Outline four channels for distributing locally manufactured products to local consumers. (4 marks)
14. Outline four limitations of barter trade. (4 marks)
15. State four features of an efficient tax system. (4 marks)
16. Identify the book of original entry prepared from each of the following source documents. (4 marks)
| Source document | Book of original entry | |
|---|---|---|
| (a) | Outgoing invoice | |
| (b) | Received receipt | |
| (c) | Copy of credit note | |
| (d) | Original invoice |
17. List four types of capital in a business. (4 marks)
18. Record each of the following transactions in their relevant ledger accounts: 2nd March 2021 — started a business with Ksh 10,000 in cash; 3rd March 2021 — bought goods worth Ksh 12,000 on credit from Mawa Enterprises. (4 marks)
19. Outline four reasons that would make an organisation prefer a landscape office over an enclosed office layout. (4 marks)
20. The following information was extracted from the books of Adow Traders on 31st December 2020.
| Details | Ksh |
|---|---|
| 5-year loan | 256,700 |
| Land | 120,000 |
| Cash | 24,600 |
| Creditors | 37,400 |
| Buildings | 430,500 |
Prepare Adow Traders' balance sheet as at 31st December 2021 [sic]. (4 marks)
21. Jane decided to take an insurance cover for her car against theft from Serufi Insurance Ltd. It was valued at Ksh 600,000 and she was required to make monthly payments of Ksh 6,000. Identify the appropriate insurance term for: (a) Ksh 600,000; (b) Jane; (c) Serufi Insurance Ltd; (e) [sic] theft. (4 marks)
22. Outline four difficulties that a country with a young population may experience. (4 marks)
23. Identify the retailers described in the statements given below. (4 marks)
| Statement | Retailer | |
|---|---|---|
| (a) | Sells goods by displaying them along the streets | |
| (b) | Moves from one place to another on foot selling their goods | |
| (c) | Dispenses goods with the use of coin-operated machines | |
| (d) | Meet on designated days in open grounds to sell their goods |
24. Highlight four benefits of inflation to an economy. (4 marks)
25. Outline four benefits enjoyed by countries that participate in international trade. (4 marks)