SCHOOL BASED FORM FOUR EXAMS JULY AUGUST 2017
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1 BUSINESS STUDIES PAPER ONE 565/1 TIME 2 HOURS SCHOOL BASED FORM FOUR EXAMS JULY AUGUST 2017 INSTRUCTIONS TO ALL CANDIDATES (i) Answer all questions in the space provided in English Visit: for educational resources Page 1
2 Answer All Questions In The Spaces Provided 1. State the level of production that each of the following activities belong Activity Production level (a) Harvesting sand (b) Marking exams (c) Welding work (d) Oil Retailing 2. Outline four government activities aimed at attracting foreign investment (i)... (ii)... (ii)... (iv) State four circumstances under which a firm may be located near a raw material source (i)... (ii)... (ii)... (iv) Highlight fourmeasures which government may use to control demand pull inflation (i)... (ii)... (ii)... (iv)... Visit: for educational resources Page 2
3 5. For each of the following transactions. State the account to be debited and the account to be credited (4mks ) Transaction A/c to be debited A/c to be credited (i)cash deposited in business Bank account (ii) Owner withdrew cash for personal use (iii) Purchase of goods on credit (iv) Purchase of furniture by cheque 6. Outline four drawbacks that accrue to a society that practice subsistence production (4mks ). (ii)... (iv) Differentiate between a partnership and a co-operative society. (ii)... (iv) The diagram below shows a population pyramid for a certain country Population in Millions Age in years Visit: for educational resources Page 3
4 Give four challenges facing this country 9 The following relates to Joy Traders for the year ended 31 st December 2008 Cost of goods sold Shs. 225,000 Mark up 25% Drawings Shs 25,000 Expenses Shs 13,000 Capital as at 31 st December Shs. 520, Additional Investment Shs. 80,000 Determine Capital as at 1 st January Give four benefits that are likely to result from the new standard Gauge Railway line in Kenya 11. Highlight four characteristics that are unique to basic human wants Visit: for educational resources Page 4
5 12. List four characteristics of money 13. Outline fourreasons for maintaining a trial balance 14. State four measures that a trader should take to ensure smooth functioning of his private warehouse 15. The following balances of assets and liabilities were provided by Tana Traders as on 31 st December 2008 Bank overdraft 80,000 Land 200,000 Accrued Electricity 50,000 Stock 10,000 Debtors 20,000 The business had drawings amounting to shs. 20,000 during the year. Prepare a balance sheet to determine the networth of the business at the start of the trading year Visit: for educational resources Page 5
6 16. Outlinefour benefits of sharing office machines 17. Using a diagram, Illustrate how a decrease in supply occurs due to change in price 18. Givefour reasons why taxation is desirable in a country 19. Describe three channels that can be used to distribute coffee from Kenya to a consumer in USA Visit: for educational resources Page 6
7 20. Highlight four reasons that have prompted Kenya to be an active member of regional trade bloc s such as ( Comesa ) (iv) Highlight four ways in which the county government has contributed to economic development in the country 22. The following transactions relate to Robbin Traders for the month of October Oct 2: Sold goods for shs. 25,000 cash Oct 3: Received a cheque for shs. 39,000 from Kiplangat, a debtor after allowing a cash discount of shs. 2,000 Oct 10: Received shs. 19,600 cash from Kariuki a debtor after allowing him a 2% cash discount Oct 12: Deposited shs. 9,000 cash to Bank Enter the above transactions in the cash receipt Journal of Robbin Traders Visit: for educational resources Page 7
8 23 Highlight fourbarriers associated with written communication 24. Outline four circumstances under which deferred payment may be appropriate to the seller 25. Give four reasons why a firm may not realize any benefits from free publicity i)... Visit: for educational resources Page 8
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