Kenya High Mock Business Studies Paper 1 2021 - With Marking Scheme
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Kenya High Mock Business Studies Paper 1 2021 - With Marking Scheme
Kenya High Mock Business Studies Paper 1 2021 - Questions
1.State four factors that you would consider before extending credit facilities to a customer. (4 Marks)
(i)……………………………………………………………………………………………….……
(ii)………………………………………………………………………………………………
(iii)…………………………………………………………………………………………………………
(iv)…………………………………………………………………………………………………………
2.Give four characteristics of human wants. (4 Marks)
(i) ………………………………………………………………………………………………….……
(ii)……………………………………………………………………………………………….…..….…
(iii)…………………………………………………………………………………………………………
(iv)…………………………………………………………………………………………………………
3.The following information relates to businesses W, X, Y and Z. (4 Marks)
BUSINESS ASSETS LIABILITIES CAPITAL
W 350,000 b 150,000
X a 160,000 240,000
Y 800,000 450,000 d
Z 700,000 c 280,000
Determine the figures represented by a, b, c and d. (4 Marks)
..…………………………………………………………………………………………………..……
……………………………………………………………………………………………….…..….…
…………………………………………………………………………………………………………
(iv)…………………………………………………………………………………………………………
4.State any four principles that govern the operations of co-operative societies in Kenya. (4 Marks)
(i)...……………………………………………………………………………………………….;;……
(ii)……………………………………………………………………………………………….…..….…
(iii)…………………………………………………………………………………………………………
(iv)…………………………………………………………………………………………………………
5.Highlight four limitations posed by the use of national income statistics as a way of comparing the living standards of people for different countries. (4 Marks)
(i)....………………………………………………………………………………………………………
(ii)……………………………………………………………………………………………….…..….…
(iii)…………………………………………………………………………………………………………
(iv)…………………………………………………………………………………………………………
6.State four merits associated with internal borrowing. (4 Marks)
(i)...…………………………………………………………………………………………………………
(ii)……………………………………………………………………………………………….…..….…
(iii)…………………………………………………………………………………………………………
(iv)…………………………………………………………………………………………………………
7.What four measures would you advice the government of Kenya to apply so as to curb the inflationary tendencies the country is currently experiencing? (4 Marks)
(i)...…………………………………………………………………………………………………..……
(ii)……………………………………………………………………………………………….…..….…
(iii)…………………………………………………………………………………………………………
(iv)…………………………………………………………………………………………………………
8.State four factors that may influence the price elasticity of demand of a commodity. (4 Marks)
(i)...…………………………………………………………………………………………………..……
(ii)……………………………………………………………………………………………….…..….…
(iii)…………………………………………………………………………………………………………
(iv)…………………………………………………………………………………………………………
9.State four possible factors that may contribute to a case of an abnormal demand curve. (4 Marks)
(i)...…………………………………………………………………………………………………..……
(ii)……………………………………………………………………………………………….…..….…
(iii)…………………………………………………………………………………………………………
(iv)…………………………………………………………………………………………………………
10.The data below relates to Kimeu’s business as at 31st Dec 2010. (4 Mark)
Shs
Capital as at 1st Jan 2010 100,000
Additional investment in the year 40,000
Profit realized in the year 25,000
Drawings made in the year 45,000
Determine Kimeu’s capital as at 31st Dec 2010
11. State four features of labour as a factor of production (4 Marks)
(i)..…………………………………………………………………………………………………………
(ii)……………………………………………………………………………………………….…..….…
(iii)…………………………………………………………………………………………………………
(iv)…………………………………………………………………………………………………………
12.The table below shows descriptions relating to some documents used in home trade. Name the document fitting the description. (4 Marks)
|
DESCRIPTION |
DOCUMENT |
|
Used
to correct an undercharge error |
|
|
Seeking
information on items stocked |
|
|
Inform
the buyer that the goods ordered have been dispatched |
|
|
Requests
payment for goods before they are sent to the customer |
Used to correct an undercharge error
Seeking information on items stocked
and their prices
Inform the buyer that the goods ordered have been dispatched
Requests payment for goods before they are sent to the customer
13.Outline four reasons why governments participate in business. (4 Marks)
(i)...…………………………………………………………………………………………………..……
(ii)……………………………………………………………………………………………….…..….…
(iii)…………………………………………………………………………………………………………
(iv)…………………………………………………………………………………………………………
14.State four features of an oligopolistic type of Market. (4 Marks)
(i)..…………………………………………………………………………………………………………
(ii)……………………………………………………………………………………………….…..….…
(iii)…………………………………………………………………………………………………………
(iv)…………………………………………………………………………………………………………
15.The following information relates to Blue star traders in the year 2009.
Jan 1 started business by depositing Shs. 150, 000 in the business’ bank account
Jan 2 bought stock worth shs. 10,000 by cash.
Enter these transactions in the relevant ledger accounts.
16.State four possible errors that may not be detected by a trial balance.
...……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………
17.Under what four circumstances would a producer opt to sell his goods directly to his customers? (4 Marks)
(i)..…………………………………………………………………………………………………..……
(ii)……………………………………………………………………………………………….…..….…
(iii)…………………………………………………………………………………………………………
(iv)…………………………………………………………………………………………………………
18.The balances below were extracted from the books of Kazu traders as at 30th June 2010.
ITEM KSHS
Furniture 20,000
Debtors 30,000
Creditors 42,000
Cash in hand 25,000
Cash at bank 60,000
Delivery van 280,000
Capital 348,000
Bank van 120,000
Net loss 45,000
Prepare Kazu’s balance sheet as at 30th June 2010.
19.State four gaps in the market that may provide an opportunity to an entrepreneur. (4 Marks)
(i)..…………………………………………………………………………………………………………
(ii)……………………………………………………………………………………………….…..….…
(iii)…………………………………………………………………………………………………………
(iv)…………………………………………………………………………………………………………
20.State four reasons why an insured may not be compensated despite an insured risk occurring. (4 Marks)
(i)..…………………………………………………………………………………………………………
(ii)……………………………………………………………………………………………….…..….…
(iii)…………………………………………………………………………………………………………
(iv)…………………………………………………………………………………………………………
21.Under what four circumstances would an office manager think of replacing an existing machine with a modem one? (4 Marks)
(i)..…………………………………………………………………………………………………………
(ii)……………………………………………………………………………………………….…..….…
(iii)…………………………………………………………………………………………………………
(iv)…………………………………………………………………………………………………………
22.State four ways through which a consumer may be exploited. (4 Marks)
(i)..…………………………………………………………………………………………………..……
(ii)……………………………………………………………………………………………….…..….…
(iii)…………………………………………………………………………………………………………
(iv)…………………………………………………………………………………………………………
23.Give four differences between an ordinary share and a preference share.
ORDINARY SHARE PREFERENCE SHARE
(i).……………………………………………
(ii)…………………………………………
(iii)……………………………………………
(iv)……………………………………………
24.Kim insured his motor vehicle value at shs.1,000,000 for shs. 800,000. The motor vehicle was involved in an accident and declared a write off.
Calculate the amount Kim should get from the insurer. (4 Marks )
25.State four ways through which the piece of a commodity may be determined. (4 Marks)
(i)……………………………………………………………………………………………..…….……
(ii)……………………………………………………………………………………………….…..….…
(iii)…………………………………………………………………………………………………………
(iv)…………………………………………………………………………………………………………
Kenya High Mock Business Studies Paper 1 2021 - With Marking Scheme
Kenya High Mock Business Studies Paper 1 2021 - With Marking Scheme
1.Factors that you would consider before extending credit facilities to a customer.
- Frequency of buying.
- Availability of stock.
- Credit worthiness.
- Type of goods needed. Any other relevant @ 1 x 1 Mark = 4 Marks
2.Characteristics of human wants.
- Insatiable.
- Competitive.
- Some are universal.
- Complimentary.
- Habitual. Any other relevant @ 1 x 1 Mark = 4 Marks
3.The figures represented by a, b, c, and d
- shs. 200,000.
- shs 400,000.
- shs. 350,000.
- shs 420,000. Any other relevant @ 1 x 1 Mark = 4 Marks
4.Principles that govern the operations of co-operative societies in Kenya.
- Voluntary membership.
- Democratic administration.
- Education for members.
- Limited interest on share capital.
- Dividend to members. Any correct 4 @ 1 Mark = 4 Marks
5.Limitations posed by the use of national income statistics as a way of comparing the living standards of people for different countries.
- Use of different currencies
- Varied preferences and tastes
- Varied distribution.
- Inaccurate statistics Any 4 correct points x 1 = 4 Marks
6.Merits associated with internal borrowing.
- No strings attached.
- Can also solve inflation problems.
- Maintains sovereignty.
- Is flexible. Any 4 correct points x 1 = 4 Marks
7.Measures you would advice the government of Kenya to apply so as to curb the inflationary tendencies the country is currently experiencing.
- Open Market operations.
- Selective credit control.
- Moral suasion.
- Raising lending rates.
- Waive duty on affected items. Any 4 relevant points 4 x 1 = 4 Marks
8.Factors that may influence the price elasticity of demand of a commodity.
- Availability of close substitutes.
- Durability.
- Degree of necessity.
- Proportion of one’s income spend on the commodity.
- Time taken to adjust. Any 4 relevant points x1 = 4 Marks
9.Factors that may contribute to a case of an abnormal demand curve.
- Incase of giffen goods.
- Ostentatious goods.
- Incase of inferior goods.
- Incase of future expectations of a further price increase.
- Any four relevant points1 x4 = 4 Marks
10.Determine Kimeu’s capital as at 31st Dec 2010
- Closing capital = opening capital + investment + profit – drawing
- = 100,000 + 25,000 + 40, 000 – 45, 000
- = 165, 000 – 45, 000
- = 120, 000
- Note: correct answer only 4 Marks
11. Features of labour as a factor of production
- Mobility.
- Can’t be separated from the labourer.
- Human i.e. it’s human.
- Can be improved.
12.A basic factor of production.
- Some documents used in home trade.
- Debit Note
- Letter of inquiry
- Advice note
- Profoma invoice 1 x 4 = 4marks
13.Reasons why governments participate in business.
- Provide essential goods / services.
- Generate revenue.
- Protect consumers against exploitation.
- Invest in ventures needing large capital outlay.
- Any relevant points @ 1 Mark 4 x 1 = 4 Marks
14.Four features of an oligopolistic type of Market
- Few firms.
- Interdependence of firms.
- Experiences a kinked demand curve.
- Firm are relatively large. Any four correct points @ 1 Mark x 4 = 4 Marks
15.Entering transactions in the relevant ledger accounts.
- Capital A/c Bank A/c
- Dr Cr Dr Cr
- 150,000 150,000
- Purchases A/c Cash A/c
- Dr Cr Dr Cr
- 10,000 10,000
- 4 x 1 = 4 Marks
16.Possible errors that may not be detected by a trial balance.
- Compensating error.
- Complete error.
- Error of principle.
- Error of original entry.
- Error of commission. Any correct four @1 Mark = 4 Marks
17.Circumstances under which a producer would opt to sell his goods directly to his customers.
- If perishable.
- If technical in nature needing demonstration.
- If the market is small.
- If the market is concentrated in one area. Any correct point @ 1 Mark x 4 = 4 Marks
18.Balance sheet of Kazu Traders as at 30th June 2010.
|
ASSETS Shs |
CAPITAL & LIABILITIES Shs |
19.Groups in the Market that may provide an opportunity to an entrepreneur.
- Insufficient / few products.
- High prices.
- Poor quality goods.
- Untapped market. Any four correct point @ 1 Mark x 4 = 4 marks
20.Reasons why an insured may not be compensated despite an insured risk occurring.
- Wrong claiming procedure.
- Cause of the risk was deliberate.
- Late / delayed reporting.
- Insurer had no funds / bankrupt.
- Had lied. Any 4 correct points @ 1 Mark x 4 = 4 Marks
21.Circumstances under which an office manager would think of replacing an existing machine with a modern one.
- To improve efficiency.
- Reduce production costs.
- Counter competitions from other firms.
- To improve on the quality of goods. Any four correct points @ 1 Mark x4 = 4 Marks
- Note: answer should start with if or when
22.Ways through which a consumer may be exploited.
- Through high pricing / prices
- Underweight goods
- Expired goods.
- Stock hoarding
- Less measurement etc Any four correct points @ 1 Mark x 4 = 4 Marks
23.Give four differences between an ordinary share and a preference share
|
ORDINARY
SHARE |
PREFERENCE
SHARE |
|
Paid
dividend after preference shares |
Paid
dividends before ordinary share |
|
Have
voting rights |
No
voting rights |
|
Are
not cumulative in nature |
May
be cumulative nature |
|
Possers
own the company |
Possers
are not owners of the co |
- Any four good differences @ 1Mark x 4 = 4 Marks
24.The amount Kim should get from the insurer.
- Compensation = sum assured x loss
- Actual value
- = 800,000 x 800,000 = Sh. 1,000, 000
- = = Sh. 640, 000
- Correct answer only 4 Marks
25.Ways through which the piece of a commodity may be determined.
- Auctioneering
- Haggling
- Price mechanism
- Tendering
- Price controls Any correct four @ 1 Mark x 4 = 4 Marks
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