NAME ………………………………………………………………………. ADMISSION NO.

………………………

DATE ……………………………………….. CLASS………………….

CANDIDATE’S SIGNATURE

565/1
BUSINESS STUDIES
PAPER 1 JULY 2024
TIMES; 2 HOURS

PANGANI GIRLS SCHOOL – MOCK EXAMINATION JULY 2024

Kenya certificate of secondary education
BUSINESS STUDIE PAPER 1 2024

INSTRUCTIONS TO CANDIDATES
 Write your name and index number in the spaces provided above
 Sign and write the date of examination in the space provided above.
 Answer all the questions in the paper.
 All question should be written in the spaces provided after each above.
 This paper consists of 11 printed pages
 Candidates should check the question paper to ascertain that all pages are printed as indicated and that no
question are missing
 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
Mark
Question 13 14 15 16 17 18 19 20 21 22 23 24 25
marks

Totals marks

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1. Define the following terms as used in economics.
a) Scarcity.
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b) Choice.
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c) Opportunity cost.
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d) Scale of preference
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2. State four distinct features of departmental stores. (4 marks)
i. ………………………………………………………………………………………………………
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ii. ………………………………………………………………………………………………………
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iii. ………………………………………………………………………………………………………
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iv. ………………………………………………………………………………………………………
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3. Highlight four circumstances under which payment by cheque is considered appropriate. (4 marks)
i. ………………………………………………………………………………………………………
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ii. ………………………………………………………………………………………………………
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iii. ………………………………………………………………………………………………………
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iv. ………………………………………………………………………………………………………
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4. Outline four documents used in delivery of goods to the buyer in home trade. (4 marks)
i) …………………………………………………………………………………………………..…..
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ii) ………………………………………………………………………………………………………
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iii) ………………………………………………………………………………………………………
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iv) ……………………………………………………………………………………………………….
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5. Highlight four hurdles preventing the growth of cooperatives society in Kenya. (4marks)
i. ………………………………………………………………………………………………………
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ii. ………………………………………………………………………………………………………
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iii. ……………………………………………………………………………………………………….
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iv. ………………………………………………………………………………………………………
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6. Highlight four documents required in registration of a company. (4 marks)
i. …………………………………………………………………………………………………..…
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ii. ………………………………………………………………………………………………………
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iii. ………………………………………………………………………………………………………
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iv. ……………………………………………………………………………………………………..
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7. State four circumstances of dissolution of a company through a court order. (4 marks)
i. …………………………………………………………………………………………………..…
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ii. ………………………………………………………………………………………………………
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iii. ………………………………………………………………………………………………………
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iv. ………………………………………………………………………………………………………
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8. Outline four difficulties encountered when determining the national income using the output approach
(4 marks)
i. …………………………………………………………………………………………………..…
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ii. ………………………………………………………………………………………………………
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iii. ………………………………………………………………………………………………………
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iv. ……………………………………………………………………………………………………..
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9. Highlight four reasons why government get involved in business. (4 marks)
i. …………………………………………………………………………………………………..…
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ii. ………………………………………………………………………………………………………
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iii. ………………………………………………………………………………………………………
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iv. ……………………………………………………………………………………………………..
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10. State four advantages of standard gauge railway to an economy. (4marks)
i. ………………………………………………………………………………………………………
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ii. ………………………………………………………………………………………………………
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iii. ………………………………………………………………………………………………………
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iv. ………………………………………………………………………………………………………
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11. Highlight four circumstances for using the short messages services (sms) to communicate. (4 marks)
i. …………………………………………………………………………………………………..…
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ii. ………………………………………………………………………………………………………
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iii. ………………………………………………………………………………………………………
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iv. ……………………………………………………………………………………………………..
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12. Outline the significance of each of the following insurance policies a trader may taker for his business.
(4 marks)
a) Fidelity guarantee
………………………………………………………………………………………………….……
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b) Workman’s compensation
.............................................................................................................................................................
.............................................................................................................................................................
c) Public liability
………………………………………………………………………………...……………………
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d) Consequential loss
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13. Highlight four characteristics of a public warehouse. (4marks)
i. …………………………………………………………………………………………………..….
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ii. ………………………………………………………………………………………………………
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iii. ………………………………………………………………………………………………………
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iv. ……………………………………………………………………………………………………..
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14. The following balances were extracted from the books of Murungari General Stores. (4marks)
Premises 350,000
Creditors 150,000
5 years bank loan 100,000
Motor vehicle 200,000
Bank over draft 250,000
Stock 170,000
Required:
Prepare a balance sheet as at 30th April 2014

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15. Outline four methods of sales promotion. (4 marks)
i. ………………………………………………………………………………………………………
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ii. ………………………………………………………………………………………………………
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iii. ………………………………………………………………………………………………………
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iv. ………………………………………………………………………………………………………
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16. The graph below represents the demand and supply curve for milk.

State four effects of shift of the demand curve to the right. (4mks)
(a)…………………………………………………………………………………………………
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(b)…………………………………………………………………………………………………
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(c)……………………………………………………………………………………………………
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(d)……………………………………………………………………………………………………….
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17. Highlight four benefits that would accrue to a firm located near the market. (4mks)
i. .............................................................................................................................................................
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ii. .............................................................................................................................................................
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iii. .............................................................................................................................................................
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iv. .............................................................................................................................................................
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18. Outline four distinct features of oligopoly market structure. (4marks)
i. .............................................................................................................................................................
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ii. .............................................................................................................................................................
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iii. .............................................................................................................................................................
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iv. .............................................................................................................................................................
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19. Outline four ways in which the nature of a product influences the choice of a distribution channel.
(4marks)
i. …………………………………………………………………………………………………
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ii. …………………………………………………………………………………………………
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iii. …………………………………………………………………………………………………
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iv. ………………………………………………………………………………………………….
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20. Below are some entries in the cash book of Romano Traders for the month of July 2010:

Date Details Cash(sh) Bank Date Details Cash Bank

2010 (sh) (sh) (sh)

July 1 Bal b/d 15,000 July 1 10,000

July 6 Cash 20,000 July 6 Bank 20,000
July 20 Sales 15,000 July 15
July 28 Debtors 20,000 July 29 Stock 10,000
July 31 Bal c/d 10,000

State the meaning of the following entries: - (4marks)

a) July 1, 2010 balance b/d, bank column, sh. 10,000
…..…………………………………………………………………………………………………………………………………………………………………………..
………………………………………………………………………………………………………………………………………………………………………………
b) July 6, 2010 cash sh. 20,000 and bank sh. 20,000
……………………………………………………………………………………………………………………………………………………………………………….
……………………………………………………………………………………………………………………………………………………………………………….
c) July 28,2010 debtors sh. 20,000
…………………………………………………………………………………………………………..
…………………………………………………………………………………………………………..

d) July 31, 2010 balance c/d sh. 10,000

…………………………………………………………………………………………………………..
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21. State four disadvantages that a country may experience with a shrinking young population. (4marks)
i. .............................................................................................................................................................
……………………………………………………………………………………………………….
ii. .............................................................................................................................................................
……………………………………………………………………………………………………….
iii. .............................................................................................................................................................
……………………………………………………………………………………………………….
iv. .............................................................................................................................................................
.............................................................................................................................................................

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22. State how the following types of unemployment may occur in a country. (4marks)
(a) Disguised
……………………………………………………………………………………………………………
…………………………………………………………………………………………………………….
(b) Frictional
…………………………………………………………………………………………………………….
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(c) Cyclical
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(d) Seasonal
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23. Outline four methods of money transfer used by commercial banks. (4 marks)
i. ……………………………………………………………………………………………………
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ii. ……………………………………………………………………………………………………
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iii. …………………………………………………………………………………………………….
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iv. …………………………………………………………………………………………………….
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24. State four factors that determine the amount of revenue collected by the Kenyan Government through
taxation. (4mks)

(a)…………………………………………………………………………………………………
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(b)…………………………………………………………………………………………………
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(c)…………………………………………………………………………………………………
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(d)…………………………………………………………………………………………………
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25. The following balances were extracted from Mwangaza traders’ books of accounts.
Shs.
Opening stock 25,000
Closing stock 35,000
Purchases 190,000
Mark - up 20%
Calculate:
a) Cost of sales (1mark)

b) Gross profit (1mark)

c) Sales (1mark)

d) Rate of stock turnover (ROSTO) (1mark)

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