Question
1.Highlight on any four causes of business failures in Kenya. (4mks) Cite four features of economic resources. (4mks) 2.Below are some of the factors that
1.Highlight on any four causes of business failures in Kenya. (4mks)
Cite four features of economic resources. (4mks)
2.Below are some of the factors that influence the operations of a business. Indicate with a tick
( ) in the appropriate column the business environment associated with each of the factors mentioned. (4mks)
Factor
Internal environment
External Environment
(i) Objectives and goals
(ii) Technology environment
(iii)Financial resources
(iii) Political will
4. Identify four types of cash terms of payments. (4mks)
5. State four essential components for communication to take place. (4mks)
6. State four factors limiting geographical mobility of labour. (4mks)
7. State four characteristics of ordinary shares. (4mks)
8. Give four factors that influence the choice of distribution channel. (4mks)
9. The following information relates to business W,X,Y and Z
Business
Assets
Liabilities
Capital Shs.
W
350,000
W
150,000
X
X
160,000
240,000
Y
800,000
450,000
Y
Z
700,000
Z
280,000
Determine the figures represented by W,X,Y and Z in the table. (4mks)
10. Name the ledger in which each of the following accounts can be found. (4mks)
Account Ledger
(a) Motor vehicle account .................................................
(b) Debtors accounts .................................................
(c) Creditors accounts .................................................
(d) Bank account ..................................................
11. The diagram below represents a demand curve for a product.
Price
D
O
Quality
(a) Identify the nature of the demand curve represented by the diagram. (1mk)
(b) List three factors that may account for the nature of the demand curve represented above.
(3mks)
12. Highlight the factors to be considered when constructing consumer price index.(4mks)
13. State the objectives of export processing zones. (EPZ). (4mks)
14. Identify the international trade documents that relate to the following statements.
Indicate the country of origin of imported goods...................................................
Is a document of title to the goods traded in international trade.................................
Used to demand payments before delivery of goods...............................................
Facilitates an importer to obtain credit................................................................
15. Differentiate between 'incidence of tax' and 'impact of tax'. (4mks)
16. Outline four sources of a business idea. (4mks)
17. The following purchases returns were made by Borabu Traders in the month of February 2005.
Feb. 4 Returns to Sam worth sh. 1,000Credit note 123, to Kambi suppliers worth shs. 2,000 credit note 264.
Feb 20. Returns to Omache wholesalers' goods worth sh. 500, credit note 289, Kambi suppliers, worth sh. 1000 credit note 362.
Post the information to the purchases returns journal. (4mks)
18. The following balances were available for Anyimu's grocery shop on 31st December 2004
Capital sh. 20,000
Bankloan sh 20,000
Stock sh. 12,000
Cash in hand sh. 20,000
Draw the balance sheet following the order of liquidity. (4mks)
19. (a) Define the term "value added" as used in business studies. (1mk)
(b) Determine the value of the missing values marked. 'a', 'b', and 'c' in the table below. (3mks)
Factory 1
Factory 2
Factory3
Product
X
Y
Z
Price (shs)
500
(b)
14,500
Value added
(a)
3,500
(c)
= ..........................
=...........................
=........................ (3mks)
20. For each of the following transactions given below, indicate in the appropriate columns, the source document and the book of original entry in which the transaction should be recorded. (4mks)
Transaction
Source document
Book of original entry
a) Purchase of goods on credit
b) Sale of desks on credit
c) Payment to a creditor
d) Goods returned by a client
21. Cite four reasons why business persons prefer mobile phones to land lines as a means of communication. (4mks)
22. (a) Explain the term 'demand for money' (1mk)
(b) State the motives which underlie the demand for money in an economy.(3mks)
23. Highlight the service offered by the wholesaler to the retailer. (4mks)
24. Highlight four ways in which clothing satisfies human wants. (4mks)
25. Outline four sources of Oligopoly powers. (4mks)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started