September 3, 2022

KCSE Past Papers Business Studies 2014 3.29.1 Business Studies Paper 1 (565/1) 1 The following are descriptions of features of human Wants. Identify the features that relate to the descriptions in the spaces provided 3 Outline four tasks that may be carried out by a receptionist in an office. (4 marks) 4.Highlight four circumstances in which a cheque may be used as a means of payment.(4 marks) 5 Highlight four activities that may be carried out in a stock exchange market.(4 marks) 6 Outline four features of liners in sea transport.(4 marks) 7 State five types of information that a manager may communicate to the juniors.(5 marks) 8 Explain the meaning of the following terms: (4 marks) (a) Insured ………………………………………… .. (b) Insurance …………………… .. 9 In the spaces provided below, indicate whether the following factors cause movement along the demand curve or a shift of the demand curve. (3 marks) 10 Highlight four roles played by the broker in the chain of distribution. (4 marks) 11 The following diagram represents the circular flow of income in a two sector closed economy. Identify two factors represented by each of the arrows labelled a and b. (4 marks) 12 Fill in the missing figures in the table below: 13 Mheshimiwa Ltd. had the following ledger account balances as at 31*‘ May 2010: Required: Prepare Mheshimiwa’s trial balance as at 31*‘ May 2010. (5 marks) 14 The following is a format of the debit side of a three-column cash-book: Name the columns labelled V, W, X and Y. (4 marks) 15 Outline four functions of the International Bank for Reconstruction and Development. (4 marks) 16 State four disadvantages of barter trade. (4 marks) 17 The following transactions relate to Jelimo Stores: (a) 10″‘ October 2010, sold unused stationery for Sh 3,000 on credit to K. Likia. (b) 23“ October 2010, bought a motor vehicle on credit from Onjwaria Motors for Sh 700,000. Required: Record the above transactions in the general Journal given below: (4 marks) Date Particulars Folio . 18 List four levels of inflation. (4 marks) 19 Many countries in Africa, Latin America and Asia are considered to be under-developed. Outline four characteristics they have in common. (4 marks) 20 Madam Emoro operates a matatu business. State four factors in the internal environment that may influence the business. (4 marks) 21 Highlight four reasons for which businesses should observe ethical practices. (4 marks) 22 State four merits of promoting products through personal selling. (4 marks) 23 The following information relates to Kiboko Traders as at 31*‘ December 2010. Details Shs Total drawings 400,000 Added investments 800,000 Capital on 3 1“ Dec 2010 7,000,000 Profit 3,100,000 Calculate Kiboko’s initial capital. (3 marks) 24 Outline four positive implications of a youthful population to an economy. (4 marks) 25 PQ Ltd had the following balances as at 31“ December 2012. Shs Sales 23 498 000 Stock 1/l/2012 57 140 Returns Inwards 27 200 Purchases 16 290 000 Stock 31/l2/2012 86 340 Prepare PQ’s Trading Account for the year ended 31“ December, 2012. (5 marks) 3.29.2 Business Studies Paper 2 (565/2) 1 (a) Explain five benefits that a firm may enjoy by preparing a business plan. ( l0 marks) (b)Explain five demerits that a country may suffer when the government becomes a major investor in business. (10 marks) 2 (a) On first January 2012, Ndovu Traders had shs 30,000 in cash and shs 75,000 at the bank. During the month, the following transactions took place: January 2nd:Bought goods in cash Worth shs 15,500 5th: Received cash from Chui shs 23,750 after allowing 5% cash discount. 8th: Withdrew shs 8,900 from the bank for personal use. 11th: Maro, a debtor settled her account of shs 16,800 by a cheque of shs 16,000. 15th: Sales amounted to shs 24,250 in cash. 17th: Paid Furaha traders shs 29,100 in cash in full settlement of their account less 3% cash discount. 20th: Withdrew shs l5,000 from the bank for business use. 22nd: Koko a debtor, settled her account of shs 40,000 by cheque less 2.5% cash discount. 25th: Paid Wages shs 21,000 in cash. Required; Prepare a duly balanced three column cash book. (12 marks) (b) Explain four reasons for which traders observe ethical practices in product promotion. (8 marks) 3 (a)Explain five objectives that may be achieved by establishing firms in different parts of the country (10 marks) (b) Describe five accounting documents that are used in home trade. (10 marks) 4 (a) The following information relates to Bahati enterprises: Details Shs Stock 1*‘ January 2012 430 .000 Purchases 930,000 Sales 1,155,000 Carriage outwards 25 .000 Carriage inwards 10,000 Returns outward 20 .000 Returns inwards 30,000 General expenses 100.000 Insurance 25 .000 Stock 31st December 2012 470,000 Calculate: (i) Turnover(1 marks) (ii) Rate of Stock Turnover(3 marks) (iii) Mark up(2 marks) (iv) Margin(2 marks) (v) Net profit(2 marks) (b) Explain five guidelines that should be followed by the government in its expenditure. (10 marks) 5. (a) Explain five disadvantages that a developing country may suffer by liberalizing foreign trade. (10 marks) (b) Explain five features of monopolistic competition. (10 marks) 6. (a) Apart from selling shares, explain five sources of finance for a public limited company. (10 marks) There has been a decline in the demand for wooden furniture. Explain five factors that may have caused this trend. (10 marks)

KCSE Past Papers Business Studies 2015 1 What are the reasons that Would make an individual engage in business? (4 marks) (a) (b) (c) (d) 2 List four types of utility and the production activity associated with each of them. (4 marks) (a) (b) (c) (d) 3 Outline four Ways in which the office facilitates effective handling of documents.(4 marks) (a) (b) (c) (d) 4 Highlight four factors that may influence a consumer to purchase products from a kiosk rather than a supermarket. (4 marks) (a) (b) (c) (d) 5 State four circumstances under which hire purchase may be used to acquire goods. (4 marks) (a) (b) (c) (d) 6 Give four reasons for the increased use of mobile phones in banking.(4 marks) (a) (b) (c) (d) 7 Outline four methods that the Government of Kenya uses to regulate business activities.(4 marks) (a) (b) (c) (d) 8 State four disadvantages of using internet as a means of communication. (4 marks) (a) (b) (c) (d) 9 State four differences between life assurance and general insurance.(4 marks) 10 Give four reasons for observing ethical practices in product promotion. (4 marks) 11 The graph given below represents the demand and supply curves of milk: State four effects of a shift of the demand curve to the right. (4 marks) (a) (b) (c) (d) 12 Outline four disadvantages that a manufacturer would suffer if Wholesalers were eliminated from the chain of distribution. (4 marks) 13 The following balance sheet was incorrectly prepared: Determine the capital as at 1.01.13. (4 marks) 15 Identify the ledgers in which the following accounts are maintained. (5 marks) 16 List three levels of inflation. (a) (b) (c) 17 Name the documents described by the statements given below as used in International Trade: (4 marks) (a) Requests for payment before goods are delivered (b) Shows ownership or title of goods imported (c) Shows the country of manufacture of goods (d) Shows the transportation charges for goods 18 The following Purchases Returns Journal relates to Farasi Traders: Post the information above to the relevant ledger accounts. (4 marks) 19 Outline four goals of development to a country (4 marks) (a) (b) (c) (d) 20 The following information relates to Kahawa Traders as at 31st December 2012. Prepare a trading account. (5 marks) 21 State four reasons that make it necessary for firms to maintain a healthy environment. (4 marks) (a) (b) (c) (d) 22 Highlight four benefits of a business plan to an entrepreneur. (4 marks) (a) (b) (c) (d) 23 Outline four benefits of sea transport over air transport. (4 marks) (a) (b) (c) (d) 24 In which ways can an investor benefit from the stock exchange? (4 marks) (a) (b) (c) (d) 25 State three clauses found in the Memorandum of Association (3 marks) Business Studies Paper 2 1 (a)Explain five uses. of National Income Statistics to a country.(10 marks) (b) Discuss five principles that would lead to effective use of government resources. (10 marks) 2 (a) Explain five ways in which the consumer may benefit from warehousing.(10 marks) (b)The following information was extracted from the books of Mamboleo Traders in the month of September, 2014. September 1 – Had cash in hand, Shs15,500 and a bank overdraft of Shs 9,700. September 3 – Bought goods for sale Shs 12,300 on credit. September 5 – Sold good in cash Shs 8,500. September 9 – Sold goods on credit Shs 10,000. September 12 – Received a cheque of Shs 9,000 from a debtor. September 15 – Paid a creditor Shs 10,000 in cash. September 17 – Paid wages Shs 2,600 in cash. September 19 – Received a cheque Shs 23,400 from Samson for goods sold in January. September 20 – Received Shs 6,700 from a debtor in cash. September 23 – Withdrew Shs 7,700 from the bank for office use. September 24 – Paid electricity bills by cheque Shsl ,200. September 25 – Received a cheque of Shs1l,50O from a debtor. September 26 – Made cash sales of Shsl2,800 . September 27 – Purchased goods worth Shs 8,950 in cash. September 28 – Deposited personal cash Shs 3,500 into the business account. September 30 – Paid water bills by cheque Shs 2,800. Required: Prepare a two column cash book. (10 marks) 3 (a) Describe five characteristics of a monopolistic competitive market. (10 marks) (b)Explain five features of human wants. (10 marks) 4 (a) The following trail balance relates to Chui Traders as – at 31st December, 2014. Required Prepare Trading, Profit and Loss Account. (10 marks) (b) Explain five methods of determining the price of a product other than price control. (10 marks) 5 (a) Explain five trends in office management. (10 marks) (b) Explain five advantages of government involvement in business. (10 marks) 6 (a) Explain five benefits which may accrue to Kenya by being a member of the African Development Bank (ADB). (10 marks) (b) Explain five features that are common to underdeveloped countries. (10 marks)  

KCSE Past Papers 2016 Business Paper 2 2016 Business Studies Paper 2 Questions and Answers No. la. Explain five factors that may promote entrepreneurship in Kenya. (10 marks) ❖ Government support/ favourable government policies/ funding regulation (of business activities) may encourage the emergence expansion of business venture. ❖ Training/ in education entrepreneurship/ trainees are equipped with skills/ knowledge to undertake entrepreneurial activities to start businesses. ❖ Entrepreneurial culture/ cultural practices that encourage entrepreneurship through early exposure to business activities opportunities/ positive attitude towards business. ❖ Presence of role model interaction with successful business people who may inspire/ create interest in entrepreneurship/ business ownership. ❖ Availability of capital/ loans/ credit facilities for start expanding a business (may facilitate entrepreneurship). ❖ Political stability/ non political interference that creates a confused environment for starting/ running expanding business. ❖ Availability of market/ market information. ❖ Availability of security- that ensure safety of businesses/ property/ business owners. ❖ Healthy/ fair competition that business owners can withstand/be safe with. ❖ Good government that ensures accountability in conducting business activities. ❖ Availability of technology that can lead to the production of desired quality/ quantity of goods/ services. ❖ Employment creation for self/ others. ❖ Independence/ needs to earn an income/ livelihood. No. lb.Explain five circumstances under which a partnership may be dissolved. (10 marks) ❖ Temporary partnership/ (/ expiry of time / accomplishment of purpose /where the partnership was formed for a definite time /for a particular purpose)hence the expiry of time / accomplishment of purpose terminates the partnership ❖ Mutual / voluntary agreement among partners / where the partners agree among themselves(to terminate the partnership), when they may have no alternative for whatever reason. ❖ Bankruptcy/ insanity of a partner where (a court declares) the value of one of the partner’s property insufficient to settle his or her debt. /due to loss of contractual capacity. ❖ Change in law/ government policy that makes the operation of the partnership illegal. ❖ Permanent inability of a partner to perform /fulfill part of the partnership agreement either as a result of diseases / ill health / incapacitation. ❖ Internal dissension /disagreement among partners /disagree irreconcilably then the partnership may be terminated. ❖ Persistent losses in operation / where the business has continued to operate at a loss then it is terminated hence making it difficult to meet its financial obligations. ❖ Court orders (where the partnership was formed under) due to fraud / mistake / misrepresentation / breach of law /partnership agreement court of law may order it dissolution. ❖ Request by one /some partners to dissolve the partnership hence having to abide by their wish /granting their wish. ❖ Withdrawal /admission of a partner which changes the status of the partnership. ❖ Death of a partner which alters the composition of a partnership / which may necessitate a new agreement /arrangement. No.2a-Explain five advantages of government involvement in business. (10 marks) ❖ Provision of essential services / goods for fair / reasonable prices / affordable. ❖ Provision of large capital investment / undertake ventures that require large sums – which private sectors may not be able to raise / without which development would be minimal. ❖ Protection of citizens / to protect citizens from exploitation / malpractices by business. ❖ Stimulation of economic development by developing social amenities / infrastructure / roads / injecting funds into the economy / through development projects. ❖ Creation of employment / to create jobs (for its citizens) to earn a living / improve starndards of liing. ❖ Income generation / to generate government revenue through taxation / activities. ❖ Stabilization of the economy – through regulation / market intervention. ❖ Promote equity / fairness in distribution of resources ❖ Control use of resources – through conservation / legislative measures / ensure their sustainability. ❖ Maintenance of law / order – which allows for smooth operations (of country’s affairs). ❖ Promotion of best practices through encouraging adoption of ICT / good governance / social programmes / inclusivity. ❖ Promoting a country’s identity / image – through cultural programmes / branding initiatives / participation in international competition / fairs. ❖ Reduce foreign dominance / promote a country’s sovereignty by regulating foreign participation / encouraging local participation in the economy. ❖ Promotion of entrepreneurship cultures by encouraging business ownership / training / funding businesses. ❖ Promotes investment in the country by creating enabling environment. No.2b.Traders are required to observe ethical practices when carrying out product promotion. Explain five reasons for observing such ethical practices.(10 mrk) ❖ To ensure fair competition. ❖ To protect consumers/ customers. ❖ To protect the environment. ❖ To protect the rights of employees. ❖ To promote social responsibility. ❖ To maintain a positive image. ❖ To abide by the country’s laws, ❖ To maintain suppliers. ❖ To promote positive cultural practices. No.3a.Explain five methods of determining the price of a product other than price control (10 marks) ❖ Bargaining / Haggling – terms of exchange is negotiated / argued / debated between buyers and sellers. ❖ Demand and supply / price mechanism interactions between forces of demand and supply. ❖ Auction – prices determined by the highest bidder. ❖ Tendering – Prices determined by the (lowest) bidder who meets the required specifications. ❖ Retail price maintenance / recommended retail price / products price fixing / price fixing where producers / manufacturers agree on the price of commodities. ❖ (Price) collusion – where different market players such as buyers / sellers conspire to fix the price. ❖ Taxation / subsidy – which will influence the selling / buying price. ❖ Private treaty – a sale of property at a price agreed on by the seller and buyer without an intervening agency. No.3b .Explain five benefits that may be realised by a country as a result of government policy to relocate industries to rural areas ( 10 marks)   ❖ Increased availability of variety of goods and services as a result of new businesses in the area, ❖ Availability of auxiliary services

KCSE Past Papers 2016 Business Paper 1 2016 Business Studies paper 1 1. State four external factors that may negatively influence the operations of a business. (4 marks) 2. Highlight four benefits of a business plan to an entrepreneur. (4 marks) 3. State four ways in which a good filing system may facilitate the operations of an office. (4 marks) 4. Highlight four activities that may be carried out in a stock exchange market. (4 marks) 5. Outline four circumstances under which a co-operative society may be dissolved. (4 marks) 6. Outline four methods that the government of Kenya uses to regulate business activities. (4 marks) 7. State four ways in which a youthful population may be useful to an economy. (4 marks) 8. Outline one circumstance under which each of the following telecommunication services may be used: (4 marks) (i) Paging (ii) Facsimile (fax) (iii) Radio call (iv) Telex 9. The following transactions relate to Jelimo Stores: (a) 10″‘ October 2015 sold unused stationery for Sh 3.000 on credit to K. Likia. (b) 23`d October 2015, bought a motor vehicle on credit from Onjwaria Motors for Sh 700.000. Required: Record the above transactions in the general Journal given below: (4 marks) 10. State four features of an insurable interest. (4 marks) 11. State four features of a parastatal (4 marks). 13. Outline four functions of the World Bank. (4 marks) 14. Outline four ways of reducing the level of unemployment in Kenya. (4 marks) 15. The following balances were extracted from the books of Highlife General Stores on 31″ December 2015. Required: Prepare the balance sheet of Highlife General Stores as at 31sI December 2015. (4 marks) 16. Outline four circumstances in which the government may be involved in business. (4 marks ) 7. Identify the ledgers in which the following accounts are kept. (4 marks) 17. Identify the ledgers in which the following accounts are kept. (4 marks) 18. The following diagram represents the circular flow of income in a two sector closed economy. Identify two factors represented by each of the arrows labelled a and b. (4 marks) 19. State four reasons for privatising public corporations. (4 marks) 20. State four reasons for the increased use of cell phones in banking. (4 marks) 21. List four sources of public finance. (4 marks) 22. State two situations in which each of the following types of inflation may occur. (i) Creeping inflation (2 marks) (ii) Hyperinflation (2 marks) 23. Outline four factors that may make a producer to by-pass the wholesaler when distributing goods. (4 marks) 24. Outline four goals of development to a country. (4 marks) 25. Outline four characteristics of services. (4 marks)

2017 Business Studies Paper 2 1.(a).Explain five ways in which the intemal environment may contribute to the success of a business enterprise. (10 marks) (b).Describe five channels of distribution that a Kenyan manufacturer would use to ensure her goods reach consumers in another country. (10 marks) 2.(a).Explain five differences between chain stores and departmental stores. (l0 marks) (b).The following Trial Balance was extracted from the books of Ojwang Limited on 31 December 2013. Additional Information: Closing stock was valued at Ksh 80,000. Required: Prepare a Trading, Profit and Loss account. (10 marks) 3.(a).Explain five benefits that a private limited company would get by converting to a public limited company. (l0 marks) (b). Explain five disadvantages of using direct taxes to raise government revenue. (10 marks) 4.(a).The following transactions relate to Dagoreti Enterprises for the month of March 2016. March l:Started business with Ksh 15,300 in cash and a bank overdraft of Ksh 8,200 March 3:Made cash purchases of Ksh 10,200 in cash March 4:Harrison, a debtor settled his account of Ksh 18,000 by issuing a cheque of Ksh 13,400 and the rest by cash March 5:Paid wages by cheque, Ksh 5,000 March 6:Received a cheque of Ksh 9,310 from Chebet March 7:Received cash, Ksh 7,720 from Otieno March 8:Paid Hassan Ksh 5,450 in cash March 9:Deposited Ksh 6.000 from the ofiice into the business bank account March 10:Paid insurance Ksh 3,700 by cheque March l1:Paid Ksh3,90O for repairs in cash March l2:Received Ksh 8,570 in cash from Mwende March l3:Received a cheque of Ksh 1 1,200 from Makokha March l4:Paid water bill Ksh 2,590 by cheque March l5:Paid rent Ksh6,500 by cheque March 29:Took all the cash that was in the office and deposited it into the business bank account Required: Prepare a two column cash book for the month of March 2016. (10 marks) (b).Explain five factors that one may consider when selecting a means for communicating. (10 marks) 5.(a).Explain five demerits of the output approach in measuring national income. (10 marks) (b).Explain five circumstances under which a country may realise surplus in its balance of payments. (10 marks) 6.(a).Explain five methods that the government may use to increase supply of goods in the market.( 10 marks) (b).Explain five factors that may promote the growth of entrepreneurship in Kenya. (10 marks)    

2017 Business Studies paper 1 Kenya Certificate of Secondary Education 1. State four elements of the demographic environment that may influence the operations of a business. (4 marks) 2. Outline four circumstances under which goods may be transported by use of containers. (4 marks) 3. The following information was extracted from the books of Salome Traders: Capital Ksh 1,119,300; Long tenn liabilities Ksh 1,807,000; and current liabilities Ksh 978,700. Required (a) Determine Salome Traders Rate of Return on Capital Employed if the business made a net profit of Ksh 438,945. (4 marks) (b) State the importance of the rate of retum on capital employed. (1 mark) 4. Highlight four indicators of economic growth that may be observed as a country progresses. (4 marks) 5. Chem Chemi Ltd is a new cement manufacturer. Outline four factors that may encourage this company to be established in Athi River town where other cement manufacturers are located despite the obvious competition. (4 marks} 6. Outline three ways through which a partnership may be formed. (3 marks) 7. State four features of land as a factor of production. (4 marks) 8. State the principles of insurance described in the statements given below: (4 marks) (a) Restoring the insured’s financial position afier suffering loss from an insured risk. (b) Existence of a very close relationship between the loss suffered and the insured risk. (c) The insurer taking ownership of the remains of the destroyed property after the insured is duly compensated. (d) Proof that the insured will suffer direct financial loss if property is destroyed. 9. Highlight four items that would be included in the measurement of national income using the income approach. (4 marks) 10. The table below shows general price changes over a period of five years: Using year 2010 as the base year, determine the consumer price index for years 2011, 2012, 2013 and 2014. (4 mark 11. List four forms of retail businesses that a school leaver may engage in. (4 mark) 12. Outline four benefits of using the internet for office communication. (4 marks) 13. The following information relates to Zawadi Traders rental income: 1.1.15 Had Ksh 50,000 in the rent income account at the beginning of the year. 10.6.15 Received Ksh 120,000 from tenants. 12.11.15 Refunded Ksh 20,000 to a tenant who had vacated the premises. Required Prepare Zawadi Traders Rental lncome Account. (4 marks) 14.State four means of payment that may be provided by commercial banks to their customers.(4 marks) 15. The equations given below relate to quantity demanded and quality supplied at the equilibrium point: Qde = 4P + 50 Qsc = 8P + 30 Determine the equilibrium price and quantity. (4 marks) 16. Outline four Ways in which the balance of payments of a country may be improved. (4 marks) 17. Identify the source documents into which the information given in the table below would be recorded. (4 marks) (a)Payments recived from debtors (b)Purchase made from credits (c)Valiating payments made by the cashier Requesting (d)payments from a debtor 18. Highlight four factors that should be considered by a firm when deciding on the method to use for promoting its products. (4 marks) 19. Outline four features of money that enables it to facilitate the exchange of goods and services.(4 marks) 20. Outline four benefits of proper filing to an organisation. (4 marks) 21. Highlight four characteristics of a monopolistic competitive market. (4 marks) 22. The aggressive campaign for citizens to plan their families seems to be causing a decline in the country’s population growth. Outline four possible effects of this. (4 marks) 23. State four functions of commercial attachés. (4 marks) 24. Outline four benefits that may realised when two firms form a merge (4 marks) 25. Shaban started a shop dealing in ladies clothing but failed after two years. Outline four factors that may have caused this failure. (4 marks)  

2018 Business Studies paper 2 1. (a)Explain five circumstances that may lead to the existence of a business opportunity to be exploited by the entrepreneur. (10 marks) (b) Explain five factors that Chuma Steel Manufacturers may consider when choosing a channel for distributing their products. (10 marks) 2. (a)Explain five clauses that must be specified in the Memorandum of Association of a public limited company. (10 marks) (b) The following information was extracted from the books of Kisababu Traders on 31 December 2014:   Details Sh Sales 84,0000 Purchases 58,000 Opening Stock 15,700 Required: i. Prepare Kisababu Traders Trading Account for the period ending 31 December 2014. (5 marks) ii. Work out Kisababu Traders percentage mark up.(2 marks) iii. Calculate Kisababu Traders Rate of Stock Turnover.(3 marks) 3. (a)Explain five demerits of using carts as a means of transport in towns. (10 marks) (b) Explain five types of direct taxes that the government may use to collect revenue from individuals and companies. (10 marks) 4. (a)The demand for soft drinks has been on the increase. Explain five factors that may have contributed to this. (10 marks) (b) Describe five forms of economic integration that countries may join to promote international trade. (10 marks) 5. (a) Explain five differences between an open office and an enclosed office. (10 marks) (b) The following opening balances were extracted from the books of Mageta Traders on 1 July 2016: The following transactions took place in the course of the month: — Paid a creditor Sh4,500 in cash. — Took Sh3,000 from the bank for family use. — Bought stock Sh 18,600 on credit. — Acquired a 10 year bank loan Sh 165,000 which was credited to the business bank account. — Purchased land worth Sh 82,000 paying by cheque. Converted a family table worth Sh5,500 to business use. — Received Sh 7,300 in cash from debtor. Required: Prepare Mageta Traders Balance Sheet at the end of July 2016 (10 marks) 6. (a) Explain five problems of using national income statistics to compare the living standards of citizens of Kenya and Tanzania. (10 marks) (b) Use the transactions given below to prepare Jawabu Traders two column cash book for the month of February 2015. (10 marks) 1st Feb.Had Sh 12,500 cash and a bank overdraft of Sh 5,000 2nd Feb.Used cash to pay for water bill Sh 800, electricity Sh 1,100 and wages Sh4,700. 3rd Feb.Received a cheque of Sh 18,900 from a debtor 5th Feb.Sold goods worth Sh 7,150 in cash. 7th Feb.Paid for goods bought for resale worth Sh 6,400 by cheque. 9th Feb.Received a cheque of Sh 13,000 from the co-operative society as earnings from dividends. 10th Feb.Withdrew Sh 2,500 from the bank for family use. 13th Feb.Received Sh 15,900 in cash from a debtor. 15th Feb.Deposited Sh9,500 from the office into the business bank account. 17th Feb. Paid a creditor by cheque Sh4,390. 27th Feb.Used all the money in the bank to purchase furniture leaving only a balance of Sh2,010.  

2018 Business Studies paper 1 1. Outline four features of labour as a factor of production. (4 marks) (a)……………. (b)……………. (c)……………. (d)……………. 2. Outline four ways in which peace within a country may encourage entrepreneurial development.(4 marks) (a)……………. (b)……………. (c)……………. (d)……………. 3. State four duties of the office clerk. (4 marks) (a)……………. (b)……………. (c)……………. (d)……………. 4. The document shown below is used in home trade. (a) Identify the document(1 marks) (b) Outline three circumstances under which the above document may be used. (3 marks) (i)……………. (ii)……………. (iii)……………. 5. State four measures that may be taken by the government to control inflation. (4 marks) (a)……………. (b)……………. (c)……………. (d)……………. 6. Outline four measures that may be taken by the government to curb unemployment. (4 marks) (a)……………. (b)……………. (c)……………. (d)……………. 7. Highlight four benefits of national income statistics to the government.(4 marks) (a)……………. (b)……………. (c)……………. (d)……………. 8. Fill in the spaces in the table below: (4 marks) 9. State four categories in which the various types of business partners may be classified.(4 marks) (a)……………. (b)……………. (c)……………. (d)……………. 10. Highlight four ways in which the government creates an enabling environment for the conduct of business in the country. (4 marks) (a)……………. (b)……………. (c)……………. (d)……………. 11. Outline four roles of transport in the facilitation of trade.(4 marks) (a)……………. (b)……………. (c)……………. (d)……………. 12. State three circumstances under which firms would form a cartel.(3 marks) (a)……………. (b)……………. (c)……………. 13. Outline four conditions under which a manufacturer would distribute his products through the wholesaler. (4 marks) (a)……………. (b)……………. (c)……………. (d)……………. 14. State four reasons for maintaining a cash book in a business enterprise. (4 marks) (a)……………. (b)……………. (c)……………. (d)……………. 15. Apart from the forces of demand and supply, list four other ways in which the price of a product may be set. (4 marks) (a)……………. (b)……………. (c)……………. (d)……………. 16. Outline four factors that would make two people taking the same type of life assurance policy with the same insurer to pay different amounts of premium. (4 marks) (a)……………. (b)……………. (c)……………. (d)……………. 17. State the line of communication involved in each of the following: (4 marks) (a)……………. (b)……………. (c)……………. (d)……………. (a) The Manager of ABC Company Ltd talking to the Manager of XYZ Company Ltd. (b) A secretary asking for time off from her boss. (c) The Production Manager giving instructions to the Secretary of the Sales Manager. (d) The Store Keeper giving explanations to the Chief Accountant. 18. List four books of original entry that may be used to record transactions affecting stock.(4 marks)(4 marks) (a)……………. (b)……………. (c)……………. (d)……………. 19. Highlight four external economies of scale that a firm may get when operating on a large scale.(4 marks) (a)……………. (b)……………. (c)……………. (d)……………. 20. The following information was extracted from the books of Leila Traders on 31st July 2016: Details Sh Capital 90,000 FixedAssets 80,000 Cash in hand 20,000 Current liabilities 20,000 Stock 20,000 Net profit 15,000 Drawings 5,000 Calculate: (a) Capital owned (b) Acid test ratio 21. Watamu Enterprises had the following assets and liabilities on 1st May 2014: Particulars Sh Equipment 800,000 Capital 1,200,000 Creditors 100,000 Debtors 200,000 Stock 250,000 Cash at bank 50,000 The following transactions took place on 2nd May 2014: (i) Bought goods for re-sale Sh 150,000 on credit (ii) A debtor paid Sh 100,000 by cheque (iii) Sold the equipment for Sh900,000 cash Required: Prepare Watamu Enterprises balance sheet after the above transactions. (5 marks) 22. Outline four merits of indirect taxes.(4 marks) (a)……………. (b)……………. (c)……………. (d)……………. 23. Highlight four ways in which the technological environment may improve business performance.(4 marks) (a)……………. (b)……………. (c)……………. (d)……………. 24. Identify the types of ledger in which each of the following accounts would be found: (4 marks) Account Type of ledger a Otieno (buyer) b Carriage outwards Mueni (supplier) d Cash at bank 25. Highlight four ways in which the introduction of money helped eliminate problems faced in barter trade. (4 marks) (a)……………. (b)……………. (c)……………. (d)…………….  

2019 Business Studies paper 2 1 (a) Explain five services that may be offered by wholesalers to the retailers. (10 marks) (b) Explain five differences between a sole proprietorship and a public limited company.(10 marks) 2) Explain five negative implications of a young population. (10 marks) (b) The Trial Balance below was extracted from the books of Rakwaro Enterprises on 31st December 2015. Stock on 31st December 2015 was valued at Ksh 280,400. Required (i) Prepare Rakwaro Enterprises Trading Profit and Loss Account for the period ending 31st December 2015 (7½ marks) (ii) Determine Rakwaro Enterprises initial capital.(2½ marks) 3. (a) Explain five demerits of pipeline as a means of transport. (10 marks) (b) Explain five measures that may be taken to increase the volume of exports. (10 marks) 4.(a) The following information relates to Moyale Retailers for the month of July 2015: Sales – Ksh 50,000 Cost of sales – Ksh 40.000 Average stock – ksh 20,000 Expenses were – 5% of sales Calculate: (i) Mark-up (2 marks) (ii) Margin (2 marks) (iii) Total expenses (2 marks) (iii) Net profit (2 marks) (iv) Rate of stock turnover (2 marks) (b) Outline five benefits of a business to the society. (10 marks) (a) Explain five advantages of locating firms in different parts of the country. (10 marks) (b) Explain five government initiated methods of consumer protection. (10 marks) 6.(a) Describe the procedure for obtaining an insurance policy. (10 marks) (b) Outline five assumptions associated with the circular flow of income in a two sector economy (10 marks)    

KCSE Past Papers 2019 Business Studies Paper 1 Paper 1 1. State whether the commodity or service given in the table below would satisfy a basic human want or a secondary human want.(4 marks) 2. Outline four factors that make office managers to communicate in writing to their staff.(4 marks) 3. The information given below was extracted from the books of Birika Traders on 31 December 2014: (4 marks)   DetailsFurniture and fittings Debtors Capital Commission earned Creditors Drawings 5 year Bank Loan Discount received Amount (Ksh)234,000 67,500 157,900 13,200 34,750 21,800 114,450 3,000   Required: Prepare Birika Traders Trial Balance as at 31 December 2014. 4. Highlight four functions of an office in an organisation.(4 marks) 5. Outline four roles played by the Nairobi Securities Exchange in the Kenyan economy.(4 marks) 6. Name the basic concept in population described in the statements given below: (4 marks) (a) Population size that is adequate for the full utilisation of available resources in country (b) The average number of births per one thousand women in a year. (e) When a country is experiencing higher death rates than birth rates. (d) Where a bigger proportion of the population is comprised of people who are above 55 years old. 7. State the circumstance under which each of the following terms of trade would be applied in foreign trade. (4 marks) (a) Franco …………………………………. (c) In Bond ……………………………. (d) Free Alongside Ship …………………… ….. 8. Complete the diagram below to illustrate the classification of trade. (3 marks) 9. Highlight four iricrits of using sales people to promote the Sales of a particular product. (4 marks) 10. By use of the book keeping equation, determine the missing values in the table below: (4 marks) 11. Outline four features that may indicate a country’s state of underdevelopment. (4 marks) 12. List four types of small-scale retail business that one can run without a shop. (4 marks) 13. Highlight four functions of the Department of External Trade in the Ministry of Industry, Trade and Cooperatives. (4 marks) 14. Outline four factors that Chemichemi Dairies would consider when selecting a channel to distribute their fresh milk.(4 marks) 15. State the relevant books of original entry into which information is extracted from the source documents given below would be recorded: 16. Outline four features of co-operative societies.(4 marks) 17. Highlight four factors which may lead to an increase in a country’s national income. (4 marks) 18.The following information was extracted from the books of Jabali Traders on 31 December 2015. Details Ksh Purchases – 84,375 Carriage out – 7,400 Stock on 1/1/2015 – 67,900 Carriage in – 9,170 Stock on 31/1/2015 – 17,970 Returns out – 15,520 (a) Determine net purchases.(3 marks) (b) State two reasons for preparing the trading account.(2 marks) 19. Identify the level of production into which the following workers belong: 20. Outline four characteristics of a good tax system.(4 marks) 21. Highlight four contributions of entrepreneurs to the growth of an economy.(4 marks) 22. Highlight four factors that may influence an individual’s demand for money in order to fulfil the transaction motive (4 marks) 23. Determine the excess demand or excess supply from the combined demand and supply schedules of oranges given below:(4 marks) 24.Outline four benefits for a bonded warehouse to the importer (4 marks) 25.Apart from trains and motor vehicles, state four other means of transporting goods and people on land. (4 marks)  

KCSE Past Papers 2020 Business Studies Paper 2 1.(a) Explain five measures that the government may take to solve youth unemployment in Kenya.(10 marks) (b) Explain five reasons for consumer protection. (10 marks) 2.(a) Explain five principles of Government spending.(10 marks) (b) Explain five trends in office management.(10 marks) 3.(a) Post the following transactions to the relevant ledger accounts and balance them off. 1/3/2018 – Started a business with Ksh 100,000 at the bank 2/3/2018 – Bought a motor vehicle worth Ksh 800,000 on credit from General Motors. 4/3/2018 – Withdrew Ksh 20,000 from bank for office use. 6/3/2018 – Bought stock worth Ksh 30,000 paying by cheque. 10/3/2018 – Made cash sales of Ksh 15,000. 10/3/2018 – Took cash Ksh 8,000 to pay hospital bills. (10 marks) (b) Explain five benefits of intermediaries to the consumer in the chain of distribution.(10 marks) 4.(a) Explain five benefits of a savings account to a customer.(10 marks) (b) Explain five ways in which a warehouse may promote trade.(10 marks) 5.(a) The following is an extract of a trial balance from the books of Adan Traders as at 31 December 2018   Adan Traders Trial balance as at 31st December 2018 DETAILS DR CR Premises 1,120,000 Debtors and creditors 55,000 37,300 Cash in hand 65,000 Cash at Bank 80,000 Discounts 15,000 2,400 Salaries and wages 27,000 Commission 16,600 9,000 Power and lighting 11,700 Furniture 49,000 Capital 1,301,800 Required: (i) Prepare Adan Traders Profit and Loss Account for the period ended 31 December 2018 (5 marks) (ii) Prepare a Balance Sheet as at 31 December 2018(5 marks) (b) Explain five benefits of communication to a business.(10 marks) 6.(a) Explain five reasons that may make it necessary for the government to promote entrepreneurship. (10 marks) (b) Explain five advantages of indirect production to the society.(10 marks)  

KCSE Past Papers 2020 Business Studies Paper 1 Questions 1. List four external environmental factors that may influence the operations of a business.(4 marks) 2. State four characteristics of direct production.(4 marks) 3. Name the document described in each of the following statements:(4 marks) (a) Used to demand for payment before goods are delivered (b) Used as a reply to a specific letter of inquiry (c) Informs the buyer that goods ordered for have been dispatched (d) Used to correct an overcharge 4. Highlight four reasons for government involvement in business. (4 marks) 5. State four factors that may lead to a shift in demand as shown in the diagram below. (4 marks) 6. Outline four circumstances under which a trader would prefer to transport goods by air. (4 marks) 7. The following information was obtained from the books of Sindo Limited on 31 December 2015:   Details Ksh Capital 24,000 Stock 1,500 Debtors 2,000 Machinery 20,000 Cash 4,000 Determine the total liabilities of the business. (3 marks) \ 8. Highlight four services that commercial banks offer to their customers. (4 marks) 9. Outline four reasons that may make Kenya restrict trade with other countries. (4 marks) 4. Classify the following resources as natural, man-made or human: (4 marks)   Resource Classification (a) Architect (b) Boat (c) Soda ash (d) Driver 11. List four sources of capital that may be available to a sole proprietorship. (4 marks) 12. Highlight four circumstances under which a firm may be located near the source of raw materials. (4 marks) 13. The following information was extracted from the books of Kombo Traders on 30 April 2018:   Details Ksh Land and buildings 150,000 Creditors 1,500 Motor car 120,000 Cash 25,500 Capital 311,000 Bank 4,000 Sales 5,000 Purchases 18,000 Required Prepare Kombo Traders Trial Balance. (5 marks) 14. Outline four reasons that would make an entrepreneur prepare a business plan. (4 marks) 15. Identify the office equipment described in each of the statements below: (4 marks)   Description Equipment (a) Used to make postage stamp impressions on envelopes (b) Used to transmit verbal messages (c) Used to store confidential documents and valuable items (d) Used to record and store information in audio tapes 16. State four sources of government revenue. (4 marks) 17. Outline four measures which may be taken by a government to address the problem of underdevelopment. (4 marks) 18. Highlight four benefits of personal selling to a trader. (4 marks) 19. Outline four channels that may be used for distributing imported goods. (4 marks) 20. State four merits of a bonded warehouse to the government. (4 marks) 21. ldentify the source documents from which the information posted in the following journals would be extracted: (4 marks)   Journal Source Document (a) Sales Returns Journal (b) Purchases Journal (c) Cash Receipts Journal (d) Sales Journal 22. State four ways through which leakages of national income may happen in a four-sector economy. (4 marks) 23. State four benefits of using computers in an office. (4 marks) 24. Identify the factor of production that relates to each of the following resources:   Resource Factor of production (a) Supervision (b) Tractor (c) Trees (d) Owner 25. List four sources of business ideas.