1. State FOUR features of labour as a factor of production. 4mks

2. State FOUR roles of ethics in businesses. 4mks

3. List FOUR subjects included in business studies. 4mks

4. State FOUR merits of replacing manual systems with automated ones in carrying out office activities. 4mks

5. Outline FOUR functions of a market. 4mks

6. The national income measure using the expenditure approach is given as Y=C+I+G + (X - M).State what is represented by each of the letters in the equation. 3mks

7. Highlight FOUR circumstances under which a manufacturer would sell his products directly to the consumer. 4mks

8. State FOUR undesirable effects of inflation to the Kenyan economy. 4mks

9. State FOUR characteristics of human wants. 4mks

10. State FOUR factors that determine the sizeof a firm. 4mks

11. Highlight FOUR prominent features of a retailer's warehouse. 4mks

12. Outline FOUR emerging issues in government and business. 4mks

13. State FOUR uses of a credit note in home trade. 4mks

14. State FOUR external factors that affect the business. 4mks

15. Highlight FOUR advantages of private carriers in transport. 4mks

16. Outline FOUR factors that influence the supply of money in an economy. 4mks

17. The prospective insured is supposed to disclose all the information about the subject matter of insurance with all honesty.Mention any FOUR types of information to be disclosed 4mks

18. With the aid of a diagram, state the effect of an increase in the supply of a product on the equilibrium price and quantity. 4mks

19. For each of the following transactions, state whether the transaction will cause an increase or decrease in assets, liabilities and capital. 3mks

TRANSACTION

ASSETS

LIABILITIES

CAPITAL

a)

Borrowed a loan from bank and was issued with a cheque

b)

Bought furniture for business on credit

c)

Sold the delivery van for cash

d)

Withdrew sh.2000 from business account for personal use.

20. Give the meaning of the following business terms

Debtor

b)Capital

c)Fixed assets

d)Liabilities

21. Itemise the contents of a statement of account.

22. Use the table below to answer the questions that follow. 4mks

CASH BOOK

Date

Particulars

Cash

Bank

Date

Particulars

Cash

Bank

2/4/96

5/4/96

13/4/96

23/4/96

25/4/96

Bal. B/f

Sales

Bank(c)

Cash (c )

Sales

X

8,000

30,000

90,000

20,000

40,000

12/4/96

13/4/96

15/4/96

17/4/96

23/4/96

31/4/96

Motor expens

Cash (c )

Salaries

Kibet

Bank ( c)

Bal. c/f

7,000

15,000

20,000

16,000

30,000

16,000

Y

58,000

150,000

58,000

150,000

a)Calculate the missing figures:X Y

b)Explain the entries made on the dates specified below*NDI*

(i)13/4/96

(ii)17/4/96

23. State FOUR features of incorporated business units. 4mks

24. State FIVE ways through which unemployment problem in Kenya can be solved. 5mks

25. Highlight FIVE characteristics of under development.