KCSE PREDICTION T RIAL 1 1
1
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Answer all the questions in the spaces provided
1. List four reasons why a business exists. (4 Marks)
2. State four elements that constitute the internal business environment. (4 Marks)
Most firms are adopting electronic filing systems. Mention 4 demerits of using such a system (4
Marks)
Identify the type large scale retailers described by each of the following statements (4Marks) i)Huge
shopping complexes with many shops under one roof each under a different management
Many shops under one roof and one management each selling a particular
line of products
Businesses where customers make their orders through the post
Shops operated by one company and located in different areas where they sell
specialized products
5. Highlight four circumstances under which a co-operative may be dissolved
(4 Marks)
6. Highlight four barriers to effective communication (4Marks)
7. Identify four ways in which the efficiency of a warehouse can be guaranteed
(4 Marks)
8. State four circumstances under which an insurance policy may be terminated
(4 Marks)
9. Highlight four factors that may cause the supply curve to shift to the right (4
Marks)
10. State four measures that Kenya government may take to attract firms to an area. (4
marks)
The following is a representative basket of an average family.
Year Prices
2019 6,000
2020 7,200
Determine the increase in C.P.I using 2019 as a base year. (4 Marks)
12. Highlight four factors which may contribute to business failure (4 Marks)
Highlight four problems associated with the income approach of measuring the national income (4 Marks)
14. Highlight four features associated with a monopoly market structure. (4 Marks)
15. Outline four roles of transport in the facilitation of trade (4 Marks)
st
The following balances were extracted from the books of Maua Traders on 31 December, 2020.
Shs
Fixed assets 300,000
Current assets 123,700
Creditors 84,500
5 year loan 125,000
st (4 Marks)
Determine the net worth of the business as at 31 December 2020
Highlight three ways in which the introduction of money helped eliminate problems faced in
barter trade (3 marks)
18. Highlight four forms of economic integration (4 marks)
State four
of exports. (4 Marks)
Unemployment solving has been an agenda to Kenya. Identify the type of unemployment being
solved below. (4 marks)
Government initiating irrigation projects to ensure continuous production of food
Retraining teachers to embrace use of technology in teaching and learning
Government and private sectors inventing job advertisement sites for easy access by
job seekers
Parliament passing legislation that accommodate the disabled people to acquire
jobs
The following information relates to Makini Traders for the year ending 31st December 2022.
Margin 15%
Sales 640,000
Purchases 480,000
Stock on 1/1/2015 130,000
Closing stock ?
Required Trading Account of Makini Traders for the year ending 31st December 2022. (5Marks)
22. State any four types of advertising that a trader may adopt (4 Marks)
23. State any four types of indirect taxes in Kenya (4 Marks)
State four problems encountered at the plan implementation stage in economic planning and
development (4 Marks)
th
Wanja enterprises had the following assets and liabilities on 5 October 2021.
Item Kshs
Equipment 800,000
Capital 1,200,000
Creditors 100,000
Debtors 200,000
Stock 250,000
Cash at bank 50,000
th
The following transactions took place on 7 October 2021.
i) Bought goods for resale Ksh. 150,000 on credit
ii) A debtor paid Ksh. 50,000 by cheque
iii) Sold the equipment for Ksh. 700,000 cash
Required : Prepare Wanja enterprises balance sheet after the above transactions (4
Marks)
2
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Answer any five questions
a)Labour is an important factor of production. Explain five barriers that may hinder its
mobility as a factor of production. (10 marks)
Explain five circumstances under which a high population growth may be desirable to a
country. (10 marks)
a) Explain five factors that influence the amount of money held by an individual for
transactionary motive. (10 marks)
Manufacturers distribute their products to the final consumers through various channels. Explain
five factors considered when choosing a particular channel of distribution. (10
marks)
st
a) On 1 June 2008 Happy Traders had cash in hand shs.5000 and cash at Bank
shs7500. The following transactions took place during the month.
June 2: Bought goods in cash sh750
June 4: Paid salaries by cash shs. 3750
June 5 Received cheques from the following debtors after allowing 2%
discount in each case, Kamau sh. 490, Jane sh. 980.
June 8: Paid the following accounts by cheque in each case deducting a 5%
discount Otieno sh.1,500, Wanjiku sh.600.
June 12: Bought office machinery by cheque shs.2,500
June 20: Withdrew cash sh.500 for private use.
June 25: Cash sales sh.1000
June 26: Banked cash amounting to sh.500
June 29: Received shs.1,500 cash from Wanjohi a debtor.
Required: Prepare a three column cash book duly balanced. (12 marks)
b) Explain four reasons why the Government imposes tax on its Citizens. (8 mks)
4. (a) Outline five differences between a parastatal and a co-operative society (10mks)
(b) The table below shows the age distribution of a country.
Age (year) %
0-15 45
16-55 31
56 and above 24
Explain five negative economic implications of this age distribution to a country (10mks)
5. (a) Describe the procedure that should be followed when taking an insurance policy (10mks)
Zeraki Investment operates a wholesale business and the following information
relates to various transactions during the month of May, 2019.
May 3 sold goods on credit to Anyimba sh 60,000
8 purchased goods on credit from Mjuaji stores sh 120,000
12 returned goods bought on credit from Mjuaji stores sh 6,000
16 purchased goods on credit from Mjuaji stores sh 160, 000
22 sold goods on credit to Mafala retailers sh 150,000
23 bought a new motor vehicle from Mashariki motors worth sh 3,200,000
on credit
24 Anyimba returned goods worth sh 10,000 to the business
29 sold equipment worth sh 840,000 on credit to Chap Chap limited.
Record these transactions into Zeraki investment books of original entry. (10mks)
a) Motorcycles have become a common feature in transport in Kenya. Outline five reasons that
explain the rapid growth of motorcycle transport in Kenya (10 mks)
Explain FIVE reasons for the existence of small firms despite competition from large scale firms
(10mks)
