NAME …………………………………………………………………………………………..

SCHOOL …………………………………………. DATE ……………………………………

565/1
BUSINESS STUDIES
PAPER 1
2022
2HRS

MAXIMUM REVION SERIES 2022

Kenya Certificate of Secondary Education

INSTRUCTIONS

 Write your name and school in the spaces provided above

 Answer all questions
 All answers should be written in the spaces provided below each question
 Candidate should answer the questions in English

For examiner’s use only

Questions 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19

Candidate
Score

Questions 20 21 22 23 24 25 TOTAL SCORE

Candidate
score

Page 1 of 6 Business Education Paper 1 Vyntex technologies production

1. State four complains that may be received from consumers by consumer association.
(i) (4mks)
(ii)
(iii)
(iv)

2. Identify the ledgers in which the following accounts are maintained. (4mks)

ACCOUNT LEDGER

(i) Pendo (Debtors)

(ii) Machinery

(iii) Rent

(iv) Capital

(vi) Juma (Creditor)

(i)
(ii)
(iii)
(iv)
3. Outline four benefits that accrue to a customer who uses Automated Teller Machine. (ATM).
(4mks)
(i)
(ii)
(iii)
(iv)

4. State four circumstances under which air transport may be used to ferry goods. (4mks)
(i)
(ii)
(iii)
(iv)
5. The following information is related to Kerubo Traders for the year ended 31st December,
2006.
Opening Stock 24,000

Page 2 of 6 Business Education Paper 1 Vyntex technologies production

 Carriage on sales 12,000
Purchases 370,000
Sales 442,000
Closing Stock 40,000
Other expenses 10% on Grows profit.
Prepare, profit and loss account for the year ended 31st December, 2006.
(5mks)

6. The following are some of the documents used in home trade: Cash sale slip, Catalogue,
invoice and statement of account. Match each document with the appropriate description
provided in the table below.
(4mks)

Description Document

(a) Shows details of goods offered for sale.

(b)
(c) Give quantity, unit price and total amount to be
paid.
(d) show the transactions since the date of last
statement.
(e) Shows description of goods bought, prices and total
amount paid.

7. List three levels of inflation.

(i)
(ii)
(iii)
(3mks)
8. The following figures relates to Jumbo Traders for the year ended 31.12.13
Details Kshs.

Capital (31.12.13) 940,000

Net loss 20,000
Additional investment 420,000
Monthly drawings 5,000
Determine the capital as at 1.01.13. (4mks)
9. Kenya has many youths. Outline four positive implications of them to the economy. (4mks)
(i)
(ii)
(iii)

Page 3 of 6 Business Education Paper 1 Vyntex technologies production

 (iv)
10. Mr. Nyambura operates a matatu business. State four factors in the internal environment that
may influence the business. (4mks)
(i)
(ii)
(iii)
(iv)
11. The capital of business does not remain static. Outline four circumstances under which the
capital of a business may change. (4mks)
(i)
(ii)
(iii)
(iv)

12. State four disadvantages of using internet as a means of communication. (4mks)

(i)
(ii)
(iii)
(iv)
13. State four ways in which production activities may negatively impact on community health.
(4mks)
(i)
(ii)
(iii)
(iv)
14. Highlight four ways in which the running of public corporations may be improved. (4mks)
(i)
(ii)
(iii)
(iv)
15. The following diagram represents circular flow of income in a two sector closed economy.
Identify two factors represented by the errors labeled a and b in each case (4mks)
(i)
(ii)
(iii)
(iv)
16. Highlight four roles played by the broker in the chain of distribution. (4mk)
(i)
(ii)
(iii)

Page 4 of 6 Business Education Paper 1 Vyntex technologies production

17. Fill in the missing figures in the table below. (4mks)
FA CA C L
(a) 275,500 315,000 115,500
(b) 182,000 217,100
(c) 76,400 123,100 91,900
(d) 313,450 211,340 189,170
18. State three benefits that a farmer may derive from being a member of producer co-operative
society. (3mks)
(i)
(ii)
(iii)
19. Outline four features of indirect production. (4mks)
(i)
(ii)
(iii)
(iv)
20. Outline four challenges that may be encountered when measuring income using the output
approach. (4mks)
(i)
(ii)
(iii)
(iv)
21. Outline four tools of momentary policy that a government may use to reduce excess money
in circulation. (4mks)
(i)
(ii)
(iii)
(iv)
22. State four ways in which a good filling system may facilitate the operations in an office.
(4mks)
(i)
(ii)
(iii)
(iv)
23. Zawadi operates a hardware business in her home town. Outline four methods she can use to
determine prices for her goods other than the forces of demand and supply. (4mks)
(i)
(ii)
(iii)
(iv)

Page 5 of 6 Business Education Paper 1 Vyntex technologies production

24. State four features of a perfectly competitive market. (4mks)
(i)
(ii)
(iii)
(iv)
25. Outline four conditions under which a warehouse may be considered to be operating
efficiently. (4mks)
(i)
(ii)
(iii)
(iv)

Page 6 of 6 Business Education Paper 1 Vyntex technologies production

NAME …………………………………………………………………………………………..

INDEX NO: …………………………………………. DATE ………………………………

565/2
BUSINESS STUDIES
PAPER 2
TIME 2 ½ HOURS

MAXIMUM REVISION SERIES 2022.

Kenya Certificate of Secondary Education

INSTRUCTIONS

 Answer five questions.

 All questions carry equal marks.

EXAMINERS USE ONLY

1 2 3 4 5 6 TOTAL

Page 1 of 4 Business Paper 2 Vyntex technologies production

 Answer any five questions.

1. (a) Explain five benefits that may be realized by a county as a result of government
policy to relocate industries to rural areas. (10mks)

(b) Outline five characteristics of an efficient tax system. (10mks)

2. (a) Explain five benefits which may accrue to Kenya by being a member of the
African Development Bank (ADB) (10mks)

(b) The following trial balance relates to Chui Traders as at 31st December 2014.
Required prepare Chui traders trading, profit and loss account.
Chui Traders
Trial Balance
As at 31st Dec. 2014
Details Dr (Ksh) Cr (Ksh)

Stock 10,000

Bank 3,500

Purchases 15,000

Sales 28,000

Returns 800 1,100

Rent 580

Insurance 950

Creditors 450

Carriage in 1,200

Discounts 300 1,620

31,750 31,750

Page 2 of 4 Business Paper 2 Vyntex technologies production

 3. (a) Discuss five causes of unfavourable balance of payment for most developing
countries. (10mks)
(b) The following balances were extracted from the books of Rehema Traders on 1st
January 2007.

Kshs.

Capital 600,000

Creditors 180,000

Motor van 200,000

Furniture 200,000

Stocks 60,000

Debtors 80,000

Cash 240,000

The following transactions took place during the year ended 31st December 2007.

i. Sold furniture worth ksh. 60,000 for which ksh. 40,000 cash was received and the balance
was still outstanding at the end of the year.
ii. Purchased goods worth ksh 100,000 for which cash of ksh 70,000 was paid and the
balance was still outstanding at the end of the year.
iii. Cash ksh 10,000 was taken from the business by the proprietor to settle the spouse’s
hospital bill.

Required;

Draw Rehema Trader’s balance sheet at 31st December 2007 showing the items in their
relevant classes. (10mks)

4. (a) Discuss five factors that may be considered when choosing a method for
promoting a product. (10mks)

(b) Describe five features of economic resources. (10mks)

Page 3 of 4 Business Paper 2 Vyntex technologies production

 5. (a) Explain five demerits that may be associated with water transport. (10mks)
(b) Explain five ways in which the government of Kenya may reduce the level of
unemployment. (10mks)

6. (a) Outline five differences between a public limited company and a partnership form
of business. (10mks)
(b) With the help of diagrams distinguish between movement along and shift in a
supply curve. (10mks)

Page 4 of 4 Business Paper 2 Vyntex technologies production