BST Pp1 BP 10 QP Kcse Prediction

K.C.S.
E 2024 BLUEPRINT PREDICTION

BUSINESS STUDIES PP1 10 QUESTION PAPERS
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NAME: ………………..……..………………………………………………………………..
SCHOOL: ………………………………..……………………………………………………
INDEX NO: .…………..…..…….… CANDIDATE’S SIGNATURE: ….….……………...
DATE: …………………………..…….
K.C.S.E BLUEPRINT PREDICTION

QUESTION PAPER NO: 1
565/1
BUSINESS STUDIES
PAPER 1
TIME: 2 Hours
1. Identify any four differences between life assurance and general insurance (4mks)
2. Study the diagram below about a shift in the demand curve
Outline four factors that brought about a shift of demand curve DD to DD as shown above (4mks)
3. Identify four channels that can be used to distribute locally manufactured goods (4mks)
4. Identify the type of office machine described below (4mks)
i) Destroys unwanted papers /documents
ii) Prints stamp impression on envelopes
iii) Reproduces documents using stencils
iv) Puts holes on papers to be filed
5. List four methods that commercial banks use in transferring funds
Page 3 of 40
6. Draw a duly balanced double column cashbook from the following transaction that took place in the
business of Onyango in may 2013.
May 1st the balances brought forward were cash Sh 2500 and bank Shs 7000.
May 3rd paid wages in cash shs 2000.
May 10th sold goods in cash Shs 6000.
May 15th withdraw Shs 1000 from the bank for office cash (4mks)
7. Highlight four circumstances under which a public company may be dissolved (4mks)
8. Outline four ways in which the Kenyan government may motivate industries to delocalize (4mks)
9. Explain the meaning of the following terms as used in the accounting
a. Networth_
b. Depreciation_
c. Assets _
d. Order of liquidity _
10. Show the effects of the following transactions on the balance sheet totals by using a (+) for an
increase, (-) for decrease or (o) for no effect (4mks)
Transaction Effects on balance sheet total
a Buys stock at Shs. 1000 on credit
b Invests shs 10,000 in the business
c Deposited shs 2000 in the bank
d Sells goods that cost shs 1800 for shs 1000
11. Kenyan government has been experiencing an increase in the level of its national income .Identify
four factors that may have contributed to this (4mks)
12. List four benefits that may accrue to community that practices trade (4mks)
13. Outline four factors that may make communication between two parties more effective (4mks)
14. Outline four advantages a country may enjoy by having a low population (4mks)
15. Explain the meaning of the following words as used in public finance (4mks)
a. Impact of a tax _
b. Incidence of a tax_
c. Tax avoidance_
d. Tax evasion_
Page 4 of 40
16. Outline four essentials of a market (4mks)
17. Identify four roles an entrepreneur in a bussinesss organization (4mks)
18. Classify the following environmental factors into either internal or external business environment.
(4mks)
Factors External environment Internal environment
A Tools and equipment
B Inflation
C Politics
D The manager
19. Enter the following information in the relevant ledger accounts/
On 1st February 2014 Kemo enterprises purchased a latop(computer) for use in the business at
shs 100000 cash /
On 3rd February 2014/Kemo enterprises borrowed shs 170,000 from the bank .
On 7th February 2014 Kemo paid shs 500 for transport expenses in cash/
On 10th February 2014 Kemo brought furniture valued to shs 4,000 at the business from his home.
(4mks)
st
20. The following is trial balance of Kendu traders for period ending 31 Dec.2013
Trial Balance
Details Dr Cr
Carriage out 6,000
Discount 2,000 4,000
Transport 1000
Insurance 8,000
Wages 10,000
Rent 16,000
Gross profit 37,000
Carriage inwards 15,000
Purchasese 14,000
57,000 57,000
Required
Draw a profit and loss account for Kendu traders for period ending 31st Dec 2013 (5mks)
Page 5 of 40
21. List any four features of a private warehouse (4mks)
22. Outline four tools that the central bank of Kenya may use to lower money supply in the country
(4mks)
23. Name the four types of cheques used in home trade (4mks)
24. State four limitations of using hand carts to transport goods from a wholesaler to a retailer shop
(4mks)
25. Highlight four benefits that accrue to a manufacturer as aresult of advertising his products (4mks)
Page 6 of 40
NAME: ………………..……..………………………………………………………………..
SCHOOL: ………………………………..……………………………………………………
DATE: …………………………..…….

565/1
BUSINESS STUDIES
PAPER 1
TIME: 2 Hours
1. Highlight four reasons why public relations is a popular way of product promotion among banks.
(4mks)
2. Mention four non-tax internal sources of revenue to the government. (4mks)
3. Outline four measures that an employer can put in place to improve the performance of her human
resource. (4mks)
4. State whether each of the following transactions will increase, decrease or have no effect on the
Balance Sheet totals (4mks)
Transaction Effect on Balance sheet totals

a) Sold a private car and deposited the
money in business bank account
b) Withdrew money from bank for
office use
c) Paid Mr. Kimeli, a creditor in cash
d) Purchased a Motor car by cheque
5. Highlight four conditions that must be met in order for an insurance contract to be valid. (4mks)
Page 7 of 40
6. Enter the following transactions in the relevant book of original entry (4mks)
2014 June 1. Made cash purchases worth sh. 25,000
,, 5. Paid sh.38,000 by cheques in full settlement of a debt owed to Kibogong after deducting
a 5% cash discount.
,, 12. Bought stationery and paid by cash sh.19,000.
,, 19. Settled a debt of sh.90,000 owed to Yatich stores by cheque after deducting a 3% cash
discount.
,, 28. Paid the month’s salaries of sh 80,000, by cash, sh. 30,000 and the balance by cheques.
7. Outline four ways which the government can use to influence the supply of maize in Kenya. (4mks)
8. Outline four negative effects of inflation to an economy. (4mks)
9. Highlight four benefits enjoyed by a holder of a credit card (4mks)
10. The following balances relate to the business of Roba Traders during the period ended 31st March 2014.
Shs.
Cash at bank 680,000
Premises 500,000
Machinery 175,000
Creditors 190,000
Furniture 85,000
Motor van 200,000
Cash in hand 50,000
st
Extract the trial balance of Roba Traders as at 31 March 2014. (4mks)
11. Highlight four circumstances under which air transport can be preferred to transport goods from one
place to another. (4mks)
12. Study the following document used in home trade.
Page 8 of 40
I.Name the document shown above (1mk)
II.Name two uses of the document (2mks)
13. List four costs incurred by intermediaries in the chain of distribution (4mks)
14. Prepare ledger accounts from the following transactions relating to Tito Traders for the month of
January 2015 (4mks)
January 5th sold goods for Shs 20,000 cash
10th bought furniture for Shs 50,000 on credit from Jamwal Traders
21st Paid Shs 10,000 cash to Jamwal traders
21st Returned furniture worth Shs 6,000 found damaged to Jamwal Traders
15. Highlight any four features of time deposit account (4mks)
16. Name four commercial services that facilitate trade. (4mks)
17. The following balances were extracted from the books of Njoro Traders for the period ended
31st December 2013
Ksh.
Gross profit 10,000
Salaries 2,000
Commission income 4,000
Rent received 3,000
Electricity 2,000
Carriage outwards 4,000
Prepare a profit and loss account (4mks)
18. Highlight four factors that determine the National income of a country. (4mks)
19. Highlight four causes of demand pull inflation (4mks)
20. Outline four ways in which the problem of scarce resources can be addressed by a consumer. (4mks)
21. Highlight four ways in which local resources can be managed to alleviate unemployment problems in
Kenya. (4mks)
22. Outline four factors that comprise a negative internal environment in a business. (4mks)
Page 9 of 40
1. The following information relates to Waruhio Traders as at 31st December 2011.
23. The following information relates to Waruhio Traders as at 31st December 2011.
Waruhio Traders
Balance Sheet
As at 31st December 2011
Fixed Assets: Shs. Sh.

Furniture 203,000 Capital 359,000
Plus Net profit 114,000
Current Assets: 473,000
Stock 174,000 Less Drawings 73,000
Debtors 113,000 400,000
Cash at Bank 53,000 Short term liabilities:
1 year Loan 79,000
Creditors 64,000
543,000 543,000
a) Calculate the total current assets. (1mk)

b)a)Determine
Calculate the
thetotal current
capital assets.
owned. (1mk) (2mks)
c) Calculate the working capital (1mk)
24. Given below are functions of office equipment. Identify the name of the equipment against the
rightful use. (4mks)
Functions of the Machine Office Equipment
a) Used in posting information to
ledgers and preparing payrolls
b) To transmit printed messages such
as photographs, letters, and maps
c) Usually fire proof where important
documents in an organization are
stored
d) Used to carry out many functions
such as storing information, typing
and performing complex
calculations
25. Outline four factors that may give rise to monopoly power in an economy. (4mks)
Page 10 of 40
NAME: ………………..……..………………………………………………………………..
SCHOOL: ………………………………..……………………………………………………
DATE: …………………………..…….

565/1
BUSINESS STUDIES
PAPER 1
TIME: 2 Hours
1. State four elements that may comprise external environment to a business. (4mks)
2. Outline four differences between goods and services. (4mks)
3. Highlight four responsibilities of an effective a business accountant (4mks)
4. State four reasons why consumers have to make a choice between competing needs. (4mks)
5. The following are some policies issued under marine insurance, fleet policy, composite policy,
voyage policy and time policy. Identify the policy that suits the description listed below. (4mks)
DESCRIPTION MARINE POLICY
a) Covers a ship within a specified period of time…
b) Covers a ship on a particular journey…..
c) Different insurers covers a ship for the same risks…..
d) Covers many vessels against losses under one policy….
6. Highlight four reasons why the government requires businesses to obtain licences. (4mks)
7. Fill the levels of production in the
7. Fill the levels diagraminbelow.
of production the diagram(3mks)
below. (3mks)
Levels of production
i) ii iii
i)
Page 11 of 40
8. Give four disadvantages of government involvement in business activities. (4mks)
9. Give four measures that a government may take to reduce the mortality rate in a country. (4mks)
10. Highlight four services that a wholesaler may offer to a manufacturer. (4mks)
11. The following information was extracted from the books of Jupiter traders.
Rate of turnover 3 times
Mark-up 20%
Opening stock sh. 160,000
Closing stock sh. 200,000
REQUIRED
I) Gross Profit (2mks)
ii) Sales (2mks)
12. The conditions given below are for a monopoly firm or a firm operating under perfect competition.
Write the correct market structure against each of the conditions in the spaces provided. (4mks)
CONDITIONS MARKET STRUCTURE
a) Market structure determines price for the product.
a) There is free entry and exit
c) Product involved is homogeneous
d) Market structure regulates supply of the product

13. Outline four reasons that can lead to dissolution of a sole proprietorship. (4mks)
14. Bahari enterprises had capital balance of sh 525,000 on 1st July 2006 and sh. 80,000 on 30th June
2007. Drawings and net profit in the year ending 30th June 2007 were sh 225,000 and sh. 175,000
respectively. Determine the additional capital during the year. (4mks)
15. Highlight four functions of a proforma invoice. (4mks)
Page 12 of 40
16. Identify the books of original entry used in recording each of the following transactions
of Turkwel Traders. (4mks)
TRANSACTIONS BOOKS OF ORIGINAL ENTRY
a) Sold goods on credit to Atieno for
sh. 30,000
b) Bought goods on credit from
Chantal Traders for sh. 40,000
c) Zuma returned goods worth. 8,000
d) Turkwel returned goods worth sh

11,000 to Simba traders
17. Highlight four benefits that would accrue to a firm located near other existing firms. (4mks)
18. Give four factors that limit the use of containers as a method of transporting goods in developing
country. (4mks)
19. Give four reasons why a business person may wish to keep money in a fixed deposit account instead
of a savings account. (4mks)
20. The following information was obtained from the records of Jakayo traders as at 1st July 2010
FURNITURE SH 20,000
Stock sh, 8,000
Creditor sh 7,000
Cash at Bank sh 12,000
Long term loan sh. 10,000
Prepare Jakoyo is Balance sheet as at 1st July 2010
21. Highlight four obstacles that could be ineffective communication between the principal and the
students during an assembly. (4mks)
22. Give four factors that influence the level of National income. (4mks)
23. Give four benefits of expanding a businesses. (4mks)
Page 13 of 40
24. The diagram below show a shift in demand for a certain commodity.
24. The diagram below show a shift in demand for a certain commodity.
dy
dx
Highlight four factors that may have caused the shift from dy to dx
Highlight four factors that may have caused the shift from dy to dx
25. From the following information, prepare a three column cash book duly balanced. (5mks)
i)
2014
May 1 : Balances brought forward; Bank sh. 2,000(Cr) Cash sh. 1,000
May 5: Received sh. 7,800 cash from Olive Traders after deduction of 2 ½% cash discount.
May 14 Deposited sh. 8, 800 from the cash till to the bank.
May 24: Paid wages for sh 800 by cheque.
Page 14 of 40
NAME: ………………..……..………………………………………………………………..
SCHOOL: ………………………………..……………………………………………………
DATE: …………………………..…….

565/1
BUSINESS STUDIES
PAPER 1
TIME: 2 Hours
1. Highlight four reasons why people engage in Business activities. (4mks)
2. Outline four types of resources that are important in Business. (4mks)
3. State four functions of an entrepreneur in the production of goods and services. (4mks)
4. Identify the machine used to perform the following tasks. (4mks)
Statements The machine
a) To count coins and notes
b) To trim paper into required sizes and
shapes
c) To fold documents, place them in
envelope and seal the envelope
d) To print postage impression on
envelopes
5. Outline four differences between chain stores and departmental stores. (4mks)
6. State four statistics that are associated with the measurement of National income. (4mks)
7. Prepare Sunshine Traders Balance sheet from the following list of balances extracted from his books
as at31 December 2013. (4mks)
Capital 357,000
Stock 40,000
Machines 150,000
Furniture 7,000
Motor vehicles 200,000
Bank 20,000
Creditors 25,000
Cash 5,000
Debtors 60,000
Loan from KCB 100,000
Page 15 of 40
8. Outline four characteristics of a good filing system (4mks)
9. Highlight four methods that Government uses to protect consumers. (4mks)
10. State four factors that a manager should bear in mind to ensure that he/she effectively communicates
with the employees. (4mks)
11. State the meaning of the following principles of insurance . (4mks)
a) Subrogation-
b) Contribution-
c) Insurable interest-
d) Indemnity-
12. Highlight four characteristics of underdevelopment. (4mks)
13 13
Price
Quantity supplied
State four factors that may have caused the factors
State four changethat
shown
may in thecaused
have diagram
the above.
change shown in the diagram above.
14. Highlight four causes of unemployment in Kenya. (4mks)
15. Outline four circumstances under which Mr Ondieki (a farmer) may distribute his products
directly to his customers. (4mks)
16. Tripple SSS wholesalers had the following information as at 31 December 2013 (4mks)
Closing capital 70,000
Total expenses 5,000
Drawings of goods 6,000
Total incomes 3,000
Calculate the capital at the beginning of the year.
17. Highlight four advantages of localization of firms. (4mks)
18. State four characteristics of good money. (4mks)
Page 16 of 40
19. Identify the day book associated with the following source documents given below. (4mks)
Source documents Day books
Invoice received
Credit note received
Receipt issued
Debit note received
20 Highlight four purposes of public finance. (4mks)

21. The following balances were extracted from the books of Okinda wholesalers on 31st December
2006. (4mks)
Sh
Capital 800,000
Sales 250,000
Debtors 70,000
Purchases 160,000
Creditors 45,000
Opening stock (1.1.2006) 40,000
Closing stock (31.12.2006) 20,000
General expenses 50,000
5 year bank loan 200,000
Insurance expenses 20,000
Salaries and wages 80,000
Required, calculate
i) Mark up (1mk)
ii) Current ratio (1mk)
iii) Rate of stock turnover (1mk)
iv) Rate on return on capital (1mk)
23. Highlight four uses of a proforma invoice. (4mks)
24. State four factors that affect the productivity of an office worker. (4mks)
Page 17 of 40
25. In each of the following cases, state the type of inflation described (4mks)
a) The unrest in Libya has resulted to an
increase in the price of oil
b)The price of bread has gone upto sh.60
due to increase in the price of wheat
c) A lot of money in circulation has led to
the general increase of price
d) Arise in price due to uneven growth in
some sectors of the economy.
Page 18 of 40
NAME: ………………..……..………………………………………………………………..
SCHOOL: ………………………………..……………………………………………………
DATE: …………………………..…….

565/1
BUSINESS STUDIES
PAPER 1
TIME: 2 Hours
1. Highlight four reasons why public relations is a popular way of product promotion among banks.
(4mks)
2. Mention four non-tax internal sources of revenue to the government. (4mks)
3. Outline four measures that an employer can put in place to improve the performance of her human
resource. (4mks)
4. State whether each of the following transactions will increase, decrease or have no effect on the
Balance Sheet totals (4mks)
Effect on Balance sheet totals
Transaction
a) Sold a private car and deposited the
money in business bank account
b) Withdrew money from bank for
office use
c) Paid Mr. Kimeli, a creditor in cash
d) Purchased a Motor car by cheque
5. Highlight four conditions that must be met in order for an insurance contract to be valid. (4mks)
Page 19 of 40
6. Enter the following transactions in the relevant book of original entry (4mks)
2014 June 1. Made cash purchases worth sh. 25,000
,, 5. Paid sh.38,000 by cheques in full settlement of a debt owed to Kibogong after deducting a
5% cash discount.
,, 12. Bought stationery and paid by cash sh.19,000.
,, 19. Settled a debt of sh.90,000 owed to Yatich stores by cheque after deducting a 3% cash discount.
,, 28. Paid the month’s salaries of sh 80,000, by cash, sh. 30,000 and the balance by cheques.
7. Outline four ways which the government can use to influence the supply of maize in Kenya. (4mks)
8. Outline four negative effects of inflation to an economy. (4mks)
9. Highlight four benefits enjoyed by a holder of a credit card (4mks)
10. The following balances relate to the business of Roba Traders during the period ended 31st March 2014.
Shs.
Cash at bank 680,000
Premises 500,000
Machinery 175,000
Creditors 190,000
Furniture 85,000
Motor van 200,000
Cash in hand 50,000
Extract the trial balance of Roba Traders as at 31st March 2014. (4mks)
11. Highlight four circumstances under which air transport can be preferred to transport goods from one
place to another. (4mks)
Page 20 of 40
12. Study the following document used in home trade.
III. Name the document shown above (1mk)

IV. Name two uses of the document (2mks)
13. List four costs incurred by intermediaries in the chain of distribution (4mks)
14. Prepare ledger accounts from the following transactions relating to Tito Traders for the month of
January 2015 (4mks)
January 5th sold goods for Shs 20,000 cash
10th bought furniture for Shs 50,000 on credit from Jamwal Traders
21st Paid Shs 10,000 cash to Jamwal traders
21st Returned furniture worth Shs 6,000 found damaged to Jamwal Traders
15. Highlight any four features of time deposit account (4mks)

16. Name four commercial services that facilitate trade. (4mks)
1. The following balances were extracted from the books of Njoro Traders for the period ended
17. The following balances
31stwere extracted
December 2013 from the books of Njoro Traders for the period ended
st
31 December 2013 Ksh.
Gross profit 10,000
Salaries 2,000
Commission income 4,000
Rent received 3,000
Electricity 2,000
Prepare a profit and lossPrepare

account
a profit and loss account (4mks)
(4mks)
Page 21 of 40
18. Highlight four factors that determine the National income of a country. (4mks)
19. Highlight four causes of demand pull inflation (4mks)
20. Outline four ways in which the problem of scarce resources can be addressed by a consumer. (4mks)
21. Highlight four ways in which local resources can be managed to alleviate unemployment
problems in Kenya. (4mks)
22. Outline four factors that comprise a negative internal environment in a business. (4mks)
st
23. The following
1. The information relates relates
following information to Waruhio Traders
to Waruhio as at
Traders as 31
at 31December
st 2011.
December 2011.
Waruhio Traders
Balance Sheet
As at 31st December 2011
Fixed Assets: Shs. Sh.

Furniture 203,000 Capital 359,000
Plus Net profit 114,000
Current Assets: 473,000
Stock 174,000 Less Drawings 73,000
Debtors 113,000 400,000
Cash at Bank 53,000 Short term liabilities:
1 year Loan 79,000
Creditors 64,000
543,000 543,000

b) Determine the capital owned. (2mks)
c) Calculate the working capital (1mk)
24. Given below are functions of office equipment. Identify the name of the equipment against
the rightful use. (4mks)
Office Equipment
Functions of the Machine
a) Used in posting information to ledgers
and preparing payrolls
b) To transmit printed messages such as
photographs, letters, and maps
c) Usually fire proof where important
documents in an organization are stored
d) Used to carry out many functions such
as storing information, typing and
performing complex calculations
25. Outline four factors that may give rise to monopoly power in an economy. (4mks)
Page 22 of 40
NAME: ………………..……..………………………………………………………………..
SCHOOL: ………………………………..……………………………………………………
DATE: …………………………..…….

565/1
BUSINESS STUDIES
PAPER 1
TIME: 2 Hours
1. Outline five disciplines incorporated in the business studies course (5mks)
2. State four characteristics of departmental stores (4mks)
3. List four types of partners in a partnership formed by professionals (4mks)
4. Highlight four factors that may cause a shift in supply curve to the left (4mks)
5. Use
5. Use the diagram the diagram
below below
to answer thetoquestions
answer the questions
that follow.that follow.
price (shs)
a
O
Quantity
a) Identify the market structure to which the diagram belong (1mk)

a) Identify the market structure to which the diagram belong (1mk)
b) Name the parts labelled (2mks)
i)’a’…
ii)’b’…
c) State one reason why the price in the above diagram is rigid (1mk)
Page 23 of 40
6. Outline three motives for liquidity preference (3mks)
7. State four consequences of poor arrangement of goods in a warehouse (4mks)
8. Complete the following table by filling in the blank spaces (4mks)
9. The following cash book was prepared by unqualified book-keeper. Identify four errors made in it. (4mks)
10. State four reasons why taxation is desirable in a country (4mks)

11. Basing your knowledge on financial ratios, complete the following table (4mks)
Opening Closing Net Cost of Net sales Gross Average R.O.S.T.O
stock stock purchases goods profit stock
sold
a) 50,000 170,000 240,000 b) 300,000 c) d)
12. Highlight four reasons why human wants may not be fully satisfied (4mks)
13. State four reasons that may make a firm to use competitive advertising (4mks)
14. Outline four circumstances under which a commodity may be distributed directly to the consumers
(4mks)
15. State four challenges that a country with a young population experiences (4mks)
Page 24 of 40
16. Identify the rewards of the following factors of production (4mks)
FACTOR REWARD
a) Limestone _____________________________
b) Doctor _____________________________
c) Tractor _____________________________
d) Landlord _____________________________
17. State four methods that the government of Kenya may use to protect its infant industries (4mks)
18.State four circumstances under which a firm would be located near the source of raw materials (4mks)
19.A car and a garage was insured for shs. 1,500,000 instead of shs. 2000,000. Later the property was
destroyed and a loss of shs. 1000,000 was suffered. Determine the amount of claim, giving a reason
for your answer. (4mks)
20. Outline four features of a transport means that can be described as efficient (4mks)
21. Classify the following staff as under: Senior, Junior, or Subordinate (4mks)
STAFF CATEGORY
a) Clerk __________________________
b) Accountant __________________________
c) Personal Secretary __________________________
d) Messenger __________________________
22. Outline four roles of Kenya Bureua of standards in Consumer protection (4mks)
23. State four advantages of books of original entry (prime books) to a business (4mks)
24. Highlight four problems encountered when a development plan is to be implemented (4mks)
25. Give the long forms of the following abbreviations as used in National Income (4mks)
a). NNP…
b). NDP…
c) GNP…
d) GDP…
Page 25 of 40
NAME: ………………..……..………………………………………………………………..
SCHOOL: ………………………………..……………………………………………………
DATE: …………………………..…….

565/1
BUSINESS STUDIES
PAPER 1
TIME: 2 Hours
1. Give four reasons why computers are increasingly being used in offices instead of typewriters 4mks
2. Outline four possible reasons for poor performance of railway industry in Kenya today 4mks
3. Highlight four factors that determine the amount of rent paid on land as a factor of production 4mks
4. Assume you are given a chance to lecture the new form one students who have just reported in your
school on the importance of studying business studies. Highlight four such importance to the learner.
4mks
5. Highlight four factors that determine the amount of money kept by an individual for precautionary
motive. 4mks
6. The following1.balance relates tobalance
The following marita traders
relates as
to at 31st march
marita traders2014
as at 31st march 2014
shs sh
Purchases 120,000 Gross loss 8,000
Closing stock 22,000
Carriage inward 1,000
Return inwards 3,000
Determine the net the

Determine sales
net sales (4mks)
7. Outline four causes of unemployment in less developed countries in Africa. (4mks)
8. The diagram below represents the circular flow of income in a two sector economy.
Page 26 of 40
1. The diagram below represents the circular flow of income in a two sector economy.
A
B
HOUSE HOLDS
FIRMS
C
State what is represented

State by the
what is represented byarrows A,B,C,D
the arrows A,B,C,D (4mks)
(4mks)
9. On first January, 2005 Vero traders had the following balances, cash 23,000 and Bank overdraft sh
75000. During the month of January the following transactions took place.
2005 Jan 2 cash sales sh 12,500
10 banked all her personal savings of shs 170,000 into business bank account.
11 paid sh 1,200 cash in respect of wages.
12 bought goods worth sh 95,00 0n credit
15 received a cheque for shs 25,000 from a debtor
18 paid Obwayang sh 18,000 by cheque.
Record the above transactions in the following two column cashbook (4mks)
10. Highlight four limitations of audio visual means of communication (4mks)

11. Highlight four circumstances under which a seller may require a buyer to pay cash with order (CWO)
(4mks)
12. Outline four ways in which the declining entrepreneurship culture can be promoted in Kenyans.4mks
13 .Match each of the following books of original entry with relevant source documents (4mks)
Page 27 of 40
13 .Match each of the following books of original entry with relevant source documents (4mks)
Books of original entry source documents

a) Cash book
b) Sales day book
c) Returns inwards day book
d) Returns outwards subsidiary book
14. Mr.mokua has14.just takenhasa just

Mr.mokua wholetakenlife policies
a whole andand
life policies heheisiscomplaining
complaining that that his premiums
his premiums are high. are high.
Outline four reasons why the premium may be high (4mks)
15. Outline four reasons why the government imposes taxes (4mks)
16. Highlight four limitations of using after sale services as a way of promoting products. (4mks)
17. State four difficulties that man faces each and every day as he strives to satisfy his wants (4mks)
18. Classify the following
18. Classifyeither into personal,
the following real, nominal
either into personal, or or
real, nominal private accounts
private accounts (4mks) (4mks)
Item Type of account

Machinery
Drawings
Commissions
Juma, a creditor
19. Highlight four19.

important documents
Highlight four that are that
important documents required by the
are required register
by the ofcompanies
register of companies for a public
for a public
company to be registered (4mks)
20.Outline four functions of Kenya bureau of standards (KEBS) (4mks)
21. Highlight four circumstances under which a firm would be located near the market for its products
(4mks)
22. Outline four essentials of a warehouse (4mks)
23. The features given below describe various product markets. Write the correct product market against
23. The features given below describe various product markets. Write the correct product market against
each each of the
of the featuresininthe
features the spaces
spaces provided.
provided. (4mks)(4mks)
Features Product market

a) Few large sellers in the market
b) Firms sell identical products
c) One supplier for the entire market
d) Very many sellers of differentiated products
24. Outline four internal factors that may influence the operations of an established business negatively(4mks)
24. Outline
25. Decreasing the four internal
volume of factors
imports thatismay
oneinfluence the operations
of the measures of an established
to correct balancebusiness negatively
of payment
disequilibrium. Highlight four ways of decreasing imports. (4mks)
Page 28 of 40
NAME: ………………..……..………………………………………………………………..
SCHOOL: ………………………………..……………………………………………………
DATE: …………………………..…….

565/1
BUSINESS STUDIES
PAPER 1
TIME: 2 Hours
1. Highlight four factors that will make a new product not to be successfully sold at the market (4mks)
2. Given below are some factors that influence the operation of a business. Indicate with a tick ( √ ) in
the appropriate column the business environment associated with each of the factor s ( 4mks)
Factors Internal External
Rainy season
Economic recession
Employees strike
Rival firms
3. Identify the principle of insurance described in each of the following circumstances (4mks)
a) James went to insure his neighbor`s house but the insurer refused to accept to provide cover…
b) Benta`s vehicle insured against theft was destroyed in an accident and the insurer refused to
compensate…………...
c) After full compensation, the insurer took the remains of Peter`s vehicle
d) Rose insured her second hand vehicle as a brand new one and the insurer declined to offer
protection…
4. State four services that your school provides you as a student (4mks)
Page 29 of 40
5. For each of the following transaction, indicate the account to be debited and the account to be
credited (4mks)
Transaction Account debited Account credited
(a) Bought _____________ _____________
equipment in cash
(b) Sold goods on ______________ ______________
credit to Linda
(c) Took cash from _____________ ______________
cash box for
personal use
(d) Converted a ______________ ______________
personal van into
business use
6. State how the following types of unemployment may occur in a country (4mks)
(a) Disguised
(b) Frictional
(c) Cychical
(d) Seasonal
7. Outline four principles that govern the operation of co-operative societies (4mks)
8. The diagram below shows a change in demand of a product
State four causes of the changes in demand (4mks)

9. Give four types of books of original entry (4mks)
10. Outline four function of Kenya commercial Bank (KCB) (4mks)
Page 30 of 40
11. The following is an extract of a cash book from Ramo Traders
(a) Determine the balance carried down on 10th January (2mks)

(i)Cash________________
(ii)Bank_______________
(b) Give the name of the transaction on 10th January 2010 (1mk)
(c) Describe the transaction on 8th January 2010 (1mk)
12. Give the uses of the following office machines (4mks)
(a) Dictaphone
(b) Guillotine
13. Outline four ethical issues a business should observe concerning its employees (4mks)
14. Highlight four problems associated with Monopoly markets structure (4mks)
15. Outline four circumstances under which human wants can be fully satisfied (4mks)
16. Highlight four reasons why most countries are getting rid of direct production (4mks)
17. Mwanaisha owns and runs a retail shop in her village. State four features of this form of business
organization (4mks)
18. The following information was extracted from the books of Wanjala Traders
Rate of stock Turnover 3
Opening stock 80,000
Mark up 20%
Determine Gross profit (4mks)
19. State four measures that the county government of Kakamega could undertake so as to attract its
investors to locate their industries within its boundaries (4mks)
Page 31 of 40
20. Give four measures that could be undertaken to conserve forests in Kenya (4mks)
21.State the purpose of the following documents used in International trade (4mks)
(a) Commercial invoice
(b) Letter of credit
(c) Airway bill
(d) Import Licence
22.Highlight four benefits to a large consumer who buys directly from the producer (4mks)
23. Outline four reasons why a transporter of goods from Mombasa to Nairobi may prefer rail transport
to road transport (4mks)
24. On 1st December 2013 ,Boda Boda Traders bought 200 torches at sh 50 each from Furaha
wholesalers .A trade discount of 10% was allowed and 2% cash discount if payment was made
within three weeks .Calculate the amount paid if payment was made on 18th December 2013 (4mks)
25. State the term given to each of the following statement (4mks)
Statement Term
(a) The transfer of an enterprise _________________
from public ownership to
private ownership
(b) The possibility of occurrence ____________________
of the events which may cause
a loss to the insured
(c) The value of the foregone ___________________
alternative where choice has
been made
(d) The total monetary value of all __________________________
goods and services produced
in a country over a period of
one year
Page 32 of 40
NAME: ………………..……..………………………………………………………………..
SCHOOL: ………………………………..……………………………………………………
DATE: …………………………..…….

565/1
BUSINESS STUDIES
PAPER 1
TIME: 2 Hours
1. Giving an example in each case, outline the difference between renewable and non-renewable
resources (4mks)
2. State four reasons why diagonal communication needs to be encouraged in an organization. (4mks)
3. Mention four benefits enjoyed by a member of a producer cooperative society (4mks)
4. State four measures that the government can use to encourage increase in the country’s volume of
exports. (4mks)
5. Highlight four positive impacts of the physical environment on the operations of a business. (4mks)
6. Highlight four problems associated with monopoly market structure. (4mks)
7. Outline four role of the mass media in promoting consumer protection. (4mks)
8. Outline four services offered in agency banking as a trend in the banking sector. (4mks)
9. State the best type of machine one would use to perform the following tasks (4mks)
Functions Name of machine
i) Used to trim papers into desired sizes
ii) To post information to ledgers and to prepare

payrolls
iii) To transmit printed messages such as letters,
maps, diagrams and photographs
iv) To destroy sensitive but unwanted documents
Page 33 of 40
10. The following balance sheet belongs to Nyakwar Atiyo during the period ended 30th June 2000.
The following transactions took place on July 1 2000.

(i) Paid creditors Sh 2000 by cheque.
(ii) Nyakwar Atiyo took stock worth Shs 7500 from the business for his son’s birthday.
(iii) Motor vehicle previously owned by Nyakwar Atiyo values at sh 200,000 was
converted into business vehicles.
Required: Prepare the balance sheet of Nyakwar Atiyo traders as at 2nd July 2000.
11. Highlight four roles of advertising agencies in product promotion (4mks)
12. Distinguish between the following categories of government expenditure. (4mks)
a) Recurrent expenditure
b) Capital expenditure
13. Highlight four differences between hypermarkets and departmental stores. (4mks)
14. The information below was extracted from the books of Lemayian Traders for the year ended
31. 12. 2015
Opening stock 45,000
Turnover 340,000
Margin 25%
Required:
(i) Gross profit (2mks)
(ii) Purchases (2mks)
15. Distinguish between the following terms as used in National Income (3mks)
a) Gross Domestic Product
b) Gross National Product
c) Per capita Income
Page 34 of 40
16. Highlight four ways in which the government of Kenya promotes entrepreneurial development
(4mks)
17. State four channels of distribution for importation of agricultural produce. (4mks)
18. Outline four trends in transport sector. (4mks)
19. Outline four benefits of indirect production. (4mks)
20. Enter the following transactions in the relevant ledger accounts (4mks)
2015
April 1 Janet Cosmetics started a business with Ksh. 150,000 cash
,, 3 Bought stock of goods for Sh. 40,000 and paid in cash
,, 6 Opened a bank account and deposited Sh. 60,000 from the cash till
,, 9 Purchased an office machine for Sh. 25,000 and paid by cheque
21. Give four reasons why a producer may need to have their own warehouse (4mks)
22. State the name of the source document used to record the following transactions (4mks)
Transaction Source Document
a) Received goods returned by a buyer who

bought them earlier on credit
b) Making of payment to a casual workers at

the end of the week
c) Bought goods for sale from Gilanis

Supermarkets on credit
d) A customer, Adhiambo, send a cheque for

goods she bought earlier on credit
23. Define the following terms as used in business studies (4mks)

(i) Annuity
(ii) Proposer
(iii) Speculative risk
(iv) Grace period
Page 35 of 40
24. In the table below fill in the missing figures S,T,U and V. (4 marks)
Business Assets(shs) Capital(shs) Liabilities(shs)
A 20,000 S 5,000
B 42,000 32,000 T
C U 17,000 53,000
D 18,000 V 6,000
25. Compute the consumer price index (CPI) from the following data giving explanation of your outcome
(4mks)
Year Price
2010 300
2011 375
Page 36 of 40
NAME: ………………..……..………………………………………………………………..
SCHOOL: ………………………………..……………………………………………………
DATE: …………………………..…….

565/1
BUSINESS STUDIES
PAPER 1
TIME: 2 Hours
1. Outline four types of business activities. (4mks)

2. Highlight four disadvantages of specialization. (4mks)
3. Outline four circumstances that would make an office manager to replace an existing machine with a
modern one. (4mks)
4. Outline four qualities of an office worker. (4mks)
5. Give four benefits of operating a small scale retail business over a large scale retail business. (4mks)
6. Ndovu bought 200 blankets at Sh.500 each on credit. The terms of sale were 20% trade discount, 10%
quantity discount and 5% cash discount if payment is made within two weeks. Calculate the amount
paid if payment is made after one week. (4mks)
7. Outline four circumstances under which a sole proprietorship may be dissolved. (4mks)
8. State four functions of commercial attachees. (4mks)
9. State the unit of carriage for each of the following modes of transport. (3mks)
Mode of transport Units of carriage
(a) Sea
(b) Portage
(c) Road
10. State four reasons why short message services (SMS) is replacing letters as a way of communication.
(4mks)
Page 37 of 40
11. Outline four reasons why an ageing population may not be desirable to a country. (4mks)
12. List four reasons why a producer would not need a lot of warehousing facilities. (4mks)
13. Highlight four insurance policies that a business person may find useful for his/her business. (4mks)
14. Highlight four circumstances under which it may be appropriate to use personal selling to promote
products.
15. Indicate whether each of the following factors influence demand or supply of a commodity. (3mks)
Factor Demand or Supply
(a) Changes in the prices of inputs.
(b) Change in tastes and preferences.
(c) Changes in technology.
16. Highlight four characteristics of a perfect competitive market. (4mks)

17. Highlight four problems which may be encountered when measuring national income using output
approach. (4mks)
18.On 1st July 2012, Mara traders had Sh.6,000 cash in hand and bank overdraft of Sh.2,000. During the
month the following transactions took place:
2012
July 2: Received cheques from debtors totaling to Sh.50,000
July 5: Paid rent Sh.2,000 cash.
July 15:Withdrew Sh.5,000 from the bank for personal use.
July 25:Banked all the cash except Sh.1000
Prepare a Two-column Cash Book for the month. (5mks)
19. The following

19. Theis following
an extract is
ofan
a bank account
extract of Komu
of a bank traders
account for thetraders
of Komu monthfor
of the
Junemonth
2015.of June 2015.
Bank account
2015 Shs 2015 Shs
June 1 Balance b/d 200,000 June 5 Salim traders 50,000
June 10 Kombo 10,000 June 20 Electricity 5,000
June 25 Cash 20,000
______ June 30 Balance c/d 135,000
210,000 210,000
State the transactions that took place on the following dates:

Page 38 of 40
State the transactions that took place on the following dates:
(a) June 5:…
(b) June 10:…
(c) June 20:…
(d) June 25:…
20. State four advantages of using subsidiary books of accounts. (4mks)
21. State four banking services that the Central Bank of Kenya provides to the government. (4mks)
22.The average consumer price for a 90kg bag of maize for the year 2012 and 2013 is shown below.
Year 2012 2013
Prices Ksh.3000 Ksh.4000
Calculate the increase in Consumer Price Index using 2012 as the base year. (4mks)
23. Outline four causes of balance of payments disequilibrium. (4mks)
24. Highlight four ways in which Kenya is likely to benefit from preparing a proper development plan.
(4mks)
25. The following information was extracted from the books of Amani traders on 31st December 2014.
Shs
Commission received 22,000
Sales 763,500
Loan interest 52,500
Purchases 474,000
General expenses 30,000
Drawings 96,000
Rent 120,000
Salaries owing 72,000
Electricity pre-paid 85,000
Prepare Trial Balance of Amani traders for the month ended 31st December 2014. (5mks)
Page 39 of 40
Page 40 of 40

BST Pp1 BP 10 QP Kcse Prediction

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K.C.S.

E 2024 BLUEPRINT PREDICTION

INDEX NO: .…………..…..…….… CANDIDATE’S SIGNATURE: ….….……………...

K.C.S.E BLUEPRINT PREDICTION

INDEX NO: .…………..…..…….… CANDIDATE’S SIGNATURE: ….….……………...

K.C.S.E BLUEPRINT PREDICTION

Transaction Effect on Balance sheet totals

d) Purchased a Motor car by cheque

Fixed Assets: Shs. Sh.

a) Calculate the total current assets. (1mk)

INDEX NO: .…………..…..…….… CANDIDATE’S SIGNATURE: ….….……………...

K.C.S.E BLUEPRINT PREDICTION

c) Product involved is homogeneous

d) Market structure regulates supply of the product

d) Turkwel returned goods worth sh

INDEX NO: .…………..…..…….… CANDIDATE’S SIGNATURE: ….….……………...

K.C.S.E BLUEPRINT PREDICTION

Credit note received

Debit note received

20 Highlight four purposes of public finance. (4mks)

INDEX NO: .…………..…..…….… CANDIDATE’S SIGNATURE: ….….……………...

K.C.S.E BLUEPRINT PREDICTION

d) Purchased a Motor car by cheque

2014 June 1. Made cash purchases worth sh. 25,000

,, 12. Bought stationery and paid by cash sh.19,000.

Cash at bank 680,000

Motor van 200,000

Cash in hand 50,000

III. Name the document shown above (1mk)

January 5th sold goods for Shs 20,000 cash

21st Paid Shs 10,000 cash to Jamwal traders

15. Highlight any four features of time deposit account (4mks)

Gross profit 10,000

Commission income 4,000

Rent received 3,000

Carriage outwards 4,000

Prepare a profit and lossPrepare

Fixed Assets: Shs. Sh.

a) Calculate the total current assets. (1mk)

INDEX NO: .…………..…..…….… CANDIDATE’S SIGNATURE: ….….……………...

K.C.S.E BLUEPRINT PREDICTION

a) Identify the market structure to which the diagram belong (1mk)

10. State four reasons why taxation is desirable in a country (4mks)

INDEX NO: .…………..…..…….… CANDIDATE’S SIGNATURE: ….….……………...

K.C.S.E BLUEPRINT PREDICTION

Determine the net the

State what is represented

10. Highlight four limitations of audio visual means of communication (4mks)

Books of original entry source documents

b) Sales day book

c) Returns inwards day book

d) Returns outwards subsidiary book

14. Mr.mokua has14.just takenhasa just

Item Type of account

19. Highlight four19.

Features Product market

b) Firms sell identical products

c) One supplier for the entire market

d) Very many sellers of differentiated products

INDEX NO: .…………..…..…….… CANDIDATE’S SIGNATURE: ….….……………...

K.C.S.E BLUEPRINT PREDICTION

Factors Internal External

State four causes of the changes in demand (4mks)