KALA PRE TRIAL EXAMINATION

Kenya Certificate ofSecondary education

56511 • BUSINESS STUDIES • Paper 1

MAY 2024 2hrs

Name: .............................................................. Admission No ...............

Class................................ Date: .................................

School ... ......... ... ... ...... ... Signature ...........................

a) Write your name and index number in the spaces provided above.
b) Sign and write the date of the examination in the spaces provided above.
c) This paper consists of s"ix questions
d) Answer ALL questions in the spaces provided.
e) All q uestions carry the same marks
j) Non-programmable silent electronic calculators may be used.
g) This paper consists of 10 printed pages
h) Candidates should check the question paper to ascertain that all the pages are printed as indicated
and that no questions are missing
i) Candidates should answer questions in English
j) All workings MUST be clearly shown

QUESTION 1 2 3 _4 5 6 7 8 9 10 11 12 _13 14 15

MARKS
16' 17 18 19 20 21 22 23 24 25

KALA JOINT MOCK EXAMINATION 1 Inspiring Academic Success

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1. Highlight four activities that may assist trade to take place. (4 mks )

2. Outline four circumstances under which downward communication may be effectively used. (4 mks )

3. From the accounts listed below, identify the relevant ledger in which they are recorded. (4 mks)
Account Ledger

Mueni (Debtor)

Motor vehicle

Cash at hand �

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Rent -

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 4. State four reasons why the government issues licenses to businesses. (4 mks)

5. Highlight four measures that the government can take to make road transport in our country to be more
efficient. (4 mks)

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6. The following balances relate to Juma enterprises for the year ended 3 1. 12.23
Details Kes
Capital (3 1. 12.23) 1,950,000
Net loss 250,000
Additional investment(monthly) 40,000
Quarterly drawings 10,000
Determine capital (0 1.01.23) (4 mks)

7. Outline four negative implications of overpopulation in an economy. (4 mks)

8. Outline four sources of public revenue in Kenya. (4 mks)

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9. State four reasons why bonded warehouses are located at points of entry to a country. (4 mks)

10. The following are description of various insurance policies. Identify the name of the policy described by
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the statement. (4 mks)
Description Policy

a) Covers an organization against losses which might arise as a result of

d) Covers partial or total physical disability caused to a person due to injury

1 1. Kenya has lately been experiencing an upward trend in the prices of basic commodities. State four
measures the government may put in place to reverse the trend. (4 mks)

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 12. Outline four factors that have led to dominance of subsistence production despite development in
technology in Kenya. (4 mks)

13. Classify the following forms of business units as either unincorporated or incorporated. (4mks)

Form of Business Unit Classification

Partnership

Parastatals

Sole proprietorship

Cooperative society

14. State four factors that may limit an individual ability to satisfy his basic wants. (4 mks)

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 15. Highlight four ways in which the government may influence the price of a commodity. (4 mks)

16. Classify the following types of wholesalers as according to either mode of operation or nature of goods
dealt in bases. (4 mks)
Type of Wholesaler Classification

Rack Jobber

General merchandise

Cash and carry

Specialized wholesaler

17. Outline four reasons for the continued existence of small firms in the Kenyan economy despite dominance
by large firms selling similar goods. (4 mks)

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18. List four after sale services that a seller may offer to attract more buyers for his products. (4 mks)

19. State four reasons why government of Kenya is promoting entrepreneurial studies in schools. (4 mks)

20. Outline four demerits of an open plan office. (4 mks)

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 2 1. From the following information provided by Meli Traders, prepare trading account for the period ended
3 1.01.23.
Stock (0 1.0 1.23) 50,000
Stock (3 1.0 1.23) 100,000
Margin 20%
Rate of stock turnover 10 times

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22. The middlemen incur various costs in the chain of distribution increasing the overall cost of the products.
Identify four such costs. (4 mks)

23. F--- ---- - ------ - .- ----- --- ---- ------ - --- .. - mks)
Transaction Source Document Book of original entry

Correction of an undercharge

Payment of creditor by cheque

Sales returns

Sale of office furniture on credit

24. Outline four bases upon which a monopolist may separate his market. (4 mks)

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2 5. Mama Mwikali purchased 1,000 packets oflong-life milk worth kshs 50,000. If she was allowed a 5%

trade discount and 10% cash discount, calculate the price she paid per packet of milk. (4 mks)

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