NAME……………………………………………………………
Adm No. ……………….
Candidate’s Sign………………………
Date……………………………..
565/1: BUSINESS STUDIES
FORM THREE
JUNE, 2023
TIME: 2HRS
INSTRUCTIONS TO CANDIDATES
1. Write your name and Admission number in the spaces provided.
2. Answer all questions.
3. All answers must be written in the spaces provided in this booklet.
4. Neatness must be observed.
5. Candidates should ascertain that all the pages are printed and no questions are missing
6. Candidates should answer the questions in English.
FOR EXAMINER’S USE ONLY
Question 1 2 3 4 5 6 7 8 9 10 11 12 13
Marks
Question 14 15 16 17 18 19 20 21 22 23 24 25 TOTAL
%
Marks
This paper consists of 9 printed pages
1. Outline three reasons why cash payment would be preferred to cheque
payment. (3 marks)
1|Page
2. State four reasons why a farmer would prefer to transport a herd of cattle
by rail rather than by road. (4 marks)
3. State four advantages of using internet as a means of communication.
(4 marks)
4. State four measures which the Kenyan government can take to solve the
unemployment problem. (4 marks)
5. Highlight four roles played by an entrepreneur in the production process.
(4 marks)
2|Page
6. Fill the missing figures in the table below (4marks)
FA CA C L
a) 275,500 …………… 315,000 115,500
b) 182,000 108,700 ……………… 217,100
c) …………… 76,400 123,100 91,900
d) 313,450 211,340 189,170 …………..
7. State four advantages of using intermediaries in the distribution of goods.
(4 marks)
8. Give four reasons why consumer cooperative societies are not common
in Kenya today. (4 marks)
9. State four advantages of franking machine. (4 marks)
3|Page
[Link] four difficulties faced in satisfaction of human wants.(4 marks)
[Link] four factors under economic environment that positively
affects the business. (4 marks)
[Link] any four measures that a firm should take to improve the
performance of its labour force. (4 marks)
[Link] four reasons why distributors of goods would prefer to locate
warehouse near it customers. (4 marks)
4|Page
[Link] four benefits of globalisation to business enterprise. (4 marks)
[Link] four trends in office management (4 marks)
[Link] diagram below shows supply of a certain commodity.
Outline four factors that may have caused the shift in the supply curve from So
SO to S1 S1. (4mks)
5|Page
[Link] four circumstances under which a firm would be located near the market
for its products. (4 marks)
[Link] four features of a perfectly competitive market. (4 marks)
[Link] following diagram represents the circular flow of income in a two
sector closed economy.
Identify two factors represented by each of the arrows labeled a and b
(4marks)
[Link] four reasons that make it necessary for firms to maintain a healthy
6|Page
environment. (4marks)
[Link] four reasons why a consumer should satisfy basic wants before
secondary wants. (4 marks)
[Link] four roles of the Nairobi Stock exchange as market for
securities. (4 marks)
[Link] four features of a bonded warehouse (4 marks)
7|Page
[Link] the meaning of the following (4marks)
a) Insured
b) Insurance
[Link] following balances were extracted from the Tango traders as at 31st December
2004
Motor vehicle 80,000
Plant and machinery 70,000
Loan from Bank 60,000
Stock 25,000
Debtors 30, 000
Creditors 15,000
Bank 20,000
Prepare a balance sheet for Tango Traders as at 1st December 2004. (5 marks)
8|Page
