565/1 · BUSINESS STUDIES · Paper 1 · Nov. 2024 · 2 hours
Instructions: Answer all the questions in the spaces provided.
Printed pages 4, 10 and 12 are missing from the source copy. Questions 7, 8, 20, 21, 22 and 25 below are reconstructed from the marking scheme and marked [reconstructed]; their exact wording may differ from the printed paper.
1. Outline four factors that may determine the fertility rate of a population. (4 marks)
2. State the unit of carriage for each of the following modes of transport. (4 marks)
| Mode of transport | Unit of carriage | |
|---|---|---|
| a. | Porterage | |
| b. | Road | |
| c. | Sea | |
| d. | Air |
3. A dairy farmer sold milk to the cooperative society at Sh. 370. The cooperative society processed and sold the milk to ABC wholesalers at Sh. 400. ABC wholesalers sold to Kamau retailers at Sh. 440, who then sold to the consumer at Sh. 510. Calculate the total value added to the product. (3 marks)
4. XBC company has been listed at the Nairobi Securities Exchange (NSE). Outline four advantages of XBC company being listed on the NSE. (4 marks)
5. Outline four factors that can lead to business success. (4 marks)
6. Identify four reasons that may influence a consumer to satisfy basic wants before secondary wants. (4 marks)
7. [reconstructed] Jane is the personal secretary to the CEO of a company. Outline four responsibilities of Jane in this position. (4 marks)
8. [reconstructed] Outline four trends in the transport sector in Kenya. (4 marks)
9. The following is the supply curve for product X in a week.
Using the supply curve provided, derive the supply schedule for product X. (4 marks)
10. Outline four demerits of government involvement in business in the country. (4 marks)
11. Sole traders prepared a balance sheet as at 31st December 2023. Highlight four uses of this financial report to the business. (4 marks)
12. Outline four factors that may lead to a favourable balance of payment for a country. (4 marks)
13. Highlight four features of a bonded warehouse. (4 marks)
14. Identify the business units that match the description given in the following table. (4 marks)
| Description | Business unit | |
|---|---|---|
| (a) | In the event of a member's death business has to be dissolved | |
| (b) | Can only start operating once it receives a certificate of incorporation | |
| (c) | Managed by a committee of nine members who are elected in an annual general meeting | |
| (d) | Formed by a minimum of seven members with no maximum membership |
15. Ubora Traders is operating an electrical shop and has introduced a new product in the market. Highlight four reasons why it may need to promote the new product. (4 marks)
16. State four internal sources of public finance. (4 marks)
17. Highlight four factors that may facilitate a high rate of economic development. (4 marks)
18. The following are types of taxes: corporate tax, customs duty, estate duty and excise duty. Identify which type of tax matches each of the following statements. (4 marks)
| Statement | Tax | |
|---|---|---|
| a) | Tax levied on manufactured goods | |
| b) | Tax levied on wealth of a person after death | |
| c) | Tax levied on entry of goods into a country | |
| d) | Tax levied on profits of business enterprises |
19. Post the following information of a sales journal to the relevant ledger accounts. (4 marks)
| Date | Details | Invoice No. | Folio | Amount (Sh.) |
|---|---|---|---|---|
| 2023 Sept 1 | Opondo | 415 | SL1 | 9,000 |
| 5 | Hassan | 416 | SL2 | 6,500 |
| 10 | Wanjiru | 417 | SL3 | 5,000 |
| 15 | Opondo | 418 | SL1 | 2,000 |
20. [reconstructed] Outline four benefits of trade to the economy of Kenya. (4 marks)
21. [reconstructed] A school principal wishes to communicate with parents/guardians. Outline four factors the principal should consider when choosing the means of communication to use. (4 marks)
22. [reconstructed] Outline four external economies of scale that a firm may enjoy when operating on a large scale. (4 marks)
23. A business involves itself in multiple transactions that affect accounting in its daily activities. Identify four examples of such business transactions. (4 marks)
24. Classify each of the following production activities as either primary, secondary or tertiary. (4 marks)
| Activity | Level of production | |
|---|---|---|
| a) | Quarrying | |
| b) | Plaiting someone's hair | |
| c) | Growing crops | |
| d) | Constructing a house | |
| e) | Transportation of raw materials | |
| f) | Grinding maize | |
| g) | Baking bread | |
| h) | Teaching in a classroom |
25. [reconstructed] From the balances of Malisafi Traders as at 30th April 2022 (purchases Sh. 260,000; creditors 80,000; motor vehicle 240,000; sales 330,000; debtors 90,000; capital 300,000; cash at bank 20,000; stock 100,000), prepare a trial balance. (5 marks)