KCSE Business Studies Topical Questions and Answers

Explain four ways in which man uses clothing to satisfy his wants

8/11/2021

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Explain four ways in which man uses clothing to satisfy his wants (4mks)

Usefulness of clothing to man.

Clothing protects man from unfavorable weather conditions e.g. coldness and rain.
Clothing protects man from getting injuries that a rise from scratches of thorns.
Clothing protects man from exposing his/her nakedness hence maintains respect.
Clothing helps man in maintaining his posture e.g appears smart.
Clothing protects man from bites arising from insects and other animals.
Clothing protects man skin from dangerous rays originating from the sun that may cause skin cancer.

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Explain five external factors that influence the success of a business

8/11/2021

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Explain five external factors that influence the success of a business. (10mks)

Human resources – presence of a pool of skilled workers enables a business to perform well.
Political factors – favourable government laws favours performance of a business.
Economic conditions – favourable prices, low interest rates and good infrastructure.
Technological factors – improved technology reduce cost of operating business.
Favourable environmental factors – i.e good climate boost farming and tourism.
Level of competition.
Identification of customers needs.
Understanding social cultural factors of the consumers i.e tastes and preferences

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Outline four main functions of an office in any business organization

5/11/2021

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Outline four main functions of an office in any business organization. (4mks)

Four main functions of an office in any business organization.

Receiving and sending out information.
Sorting and dissemination of information/information is sorted out and passed on to the relevant members of staff.
Storing of information e.g in files, computer disks and other storage devices.
Reproduction of documents e.g printing, photocopying and duplication.
Safeguarding the organization’s property and recording its movement and usage.

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State four problems the consumers encounter in the process of satisfying their wants

5/11/2021

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State four problems the consumers encounter in the process of satisfying their wants. (4mks)

Problems the consumer encounter in the process of satisfying their wants.

Human wants are un-limited/endless and cannot be satisfied with the limited natural recourses. Hence, consumers are faced with the problem of choice.
The recurrent nature of their wants. Hence, the consumer has to keep satisfying them as they arise.
The changing nature of wants renders the consumer unable to satisfy new emerging wants.
The complementary nature of wants makes it not easy to satisfy one want leaving out the other to be satisfied later .
The competitive nature of some human wants makes it difficult for the consumer to decide which want to be satisfied first and which will follow.
Limited resources do not match the many human wants/few resources available to satisfy the many wants.
Increases in prices of goods lower the purchasing power of many consumers.

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State four factors that encourage entrepreneurship in Kenya

5/11/2021

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State four factors that encourage entrepreneurship in Kenya (4mks)

Factors that encourage entrepreneurship in Kenya

Government support/favourable government policies/funding
Entrepreneurial culture /cultural practices that encourage entrepreneurship.
Availability of capital/loans/credit facilities
Political stability/non political interferences
Availability of market/market information
Good infrastructure
Availability of security.
Health/fair competition.
Need for self-actualization/fulfillment.
Need to exercise power.
Need for self-reliance.
Good governance.
Availability of technology
Employment creation for self/others.
Training/Education in entrepreneurship.
Presence of role models.
Need for individual security against old age, sickness, or hardship.
Need for recognition by society/peer

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The Manager of ENOOSAEN Sugar Company has vowed improve the company’s yield by 60% through labour motivation. State four ways by which he can achieve this.

5/11/2021

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The Manager of ENOOSAEN Sugar Company has vowed improve the company’s yield by 60% through labour motivation. State four ways by which he can achieve this.

Ways of labour motivation

Provision of adequate facilities.
Ensure proper remuneration.
Offer fringe benefits e.g lunch, trips etc.
Encourage positive competition.
Provide recreational facilities.
Training of workers.
Promote good working conditions.
Involve workers in decision making process.
Allocate duties according to areas of specialization.
Promote workers on merit.
Promote awards/rewards/gifts for good work attained.
Paying the workers promptly.
Provide them with job security.
Encourage team work.

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Importance of business studies in the society

16/3/2021

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Importance of business studies in the society

Business studies is meant to prepare learners to function as informed consumers, producers and workers in the society.

Equips the individual with skills and knowledge to manage a business.
Prepares one for future career in business/employment
Enables one to relate issues affecting business
Enables one to relate business activities taking place globally

IMPORTANCE’S OF BUSINESS STUDIES IN THE SOCIETY

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Explain five benefits that may accrue to a country with a large proportion of skilled labour force.

21/12/2020

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Explain five benefits that may accrue to a country with a large proportion of skilled labour force.

Benefits that may accrue to a country with a large proportion of skilled labour force Include :

Saving on foreign exchange that would have been used to pay expartriates/imported labour.
Production of high quality goods/services as the workers are experts in their respective areas.
Increased output of goods/services as the workers are competent due to exploitation of resources.
Reduction in cost of production since the labour tends to be efficient/less wasteful.
Increase in purchasing power/demand due to higher incomes/salaries earned.
Reduction in dependency ratio since the employment rate is higher.
Enhances creativity/innovation/research leading to new/improved/variety of goods? services.
Promotes specialization/division of labour leading to faster production.
Easen/simplify setting of wage/employment policy due to abundance/availability of skilled labour/may reduce labour stife/unrest.
Increased government revenue due to income taxes levied.
Increased foreign exchange due to export of skilled labour.
Enhances entrepreneurial culture since skilled labour is more willing to undertake risks.
Adaptability/flexibility as they are ready to embrace changes

Explain five benefits that may accrue to a country with a large proportion of skilled labour force.

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Outline four positive effects that production activities may have on community health.

21/12/2020

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Outline four positive effects that production activities may have on community health.

Positive effects that production activities may have on community health include:

Provision of safe products.
Provision of clean water.
A source of income which can be used to access medical services.
Provision of labour/occupation which leads to reduced stress and a chance to keep fit while working.
Provision of health facilities as a social responsibility.
Provision of recreational facilities.
Provision of health education to fight against diseases.
Provision of sewerage disposal plants which boosts community sanitation.
Planting trees

Outline four positive effects that production activities may have on community health.

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Outline one circumstance under which each of the following source documents may be issued by a trader:

21/12/2020

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Outline one circumstance under which each of the following source documents may be issued by a trader:

(a) Debit note
(b) Invoice
(e) Credit note
(d) Quotation

When correcting undercharge.
When demanding payment for goods supplied.
When correcting an overcharge for goods supplied/empty packaging returned)goods returned.
When replying to a specific letter of inquiry.

Outline one circumstance under which each of the following source documents may be issued by a trader:

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The participants in a two sector economy are households and firms. Identify the relevant participant in each of the statements given below:

21/12/2020

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The participants in a two sector economy are households and firms. Identify the relevant participant in each of the statements given below:

(a) Households.
(b) Households.
(c) Firms.
(d) Firms.

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Fill the relevant branches of trade in the diagram given below:

20/12/2020

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Fill the relevant branches of trade in the diagram given below:

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State four functions of an office. (4 marks)

20/12/2020

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State four functions of an office.

Functions of the office include:

Collecting information.
Receiving information.
Storing information.
Distributing information.
Production and reproduction of documents.
Centre for administration.
Mailing.
Communication centre.
safeguarding and controlling

State four functions of an office. (4 marks)

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State four characteristics of a successful entrepreneur.

20/12/2020

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Highlight four external factors that may negatively influence the operations of a business.

Vertical Divider

Characteristics of a successful entrepreneur include:

Innovative and creative.
Hardworking.
Goal-oriented/desires to achieve.
Time conscious.
Self confident.
Risk taker.
Good decision maker.
A good net worker.
A good communicator.
Should be ethical.
Should be flexible.
Future oriented.

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Highlight four external factors that may negatively influence the operations of a business.

20/12/2020

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Highlight four external factors that may negatively influence the operations of a business.

Vertical Divider

External factors that may influence the operations of a business negatively include:.

Unfair competition.
Inadequate technology.
Unstable political environment.
Unstable economic environment.
Unfavourable legal framework.
Unreliable supply system.
Strong consumer bargaining power.
Poor physical facilities and infrastructure
Low population level.
Insecurity.
Unfavourable socio-cultural environment.
Natural calamities.

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Outline four ways in which business studies may be of benefit to an individual.

20/12/2020

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Outline four ways in which business studies may be of benefit to an individual.

Ways in which Business Studies may benefit an individual include:

Equips the individual with skills and knowledge to manage a business.
Prepares one for future career in business.
Enables one to relate issues affecting business to its environment.
Enables one to relate issues affecting business activities taking place globally.
Enables one to identify business opportunities to venture into.
Prepares one for further studies.
Enables an individual to think creatively and make sound judgment.
Makes an individual to appreciate the role of government in business.
Makes individual disciplined and have positive attitude towards work.

Outline four ways in which business studies may be of benefit to an individual.

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A school leaver plans to start a retail business. Explain five types of small scale retail shops the person may start.

20/12/2020

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A school leaver plans to start a retail business. Explain five types of small scale retail shops the person may start.

Types of small scale retail shops that a school leaver may start include:

Single/unit shops - where the person can sell a wide range of goods in a small fixed shop.
Kiosk - the person can put up a simple semi-permanent structure and sell fast moving goods.
lied shop - the person can operate from a permanent building but sell products of a particular manufacturer.
Market stall - the person can hire a permanent bench/stall from the county council/municipal market from where to sell goods.
Canteen - the person can rent a room from an institution and stock goods from different manufacturers.
Mobile shop - the person can acquire or hire a vehicle from where to sell goods by moving from one place to another.
Automatic vending machines - can hire or buy coin-operated machines for selling goods.

A school leaver plans to start a retail business. Explain five types of small scale retail shops the person may start.

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Describe four characteristics of services. (8 marks)

20/12/2020

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Describe four characteristics of services.

Characteristics of services include:

Varying quality over time - it is very difficult to standardize the service offered hence the quality cannot be uniform from time to time.
Service cannot be stored for future use - service is only consumed at the time it is being offered and any unused service capacity cannot be stored.
Service cannot be touched - it is intangible and can only be felt or experienced.
Service cannot be separated from the service provider - the provider must directly offer the service to the user.
Service is perishable - service can only be offered at the time the provider is available.
Services cannot be owned by the buyer - ownership cannot be transferred from the provider to the buyer. The buyer only pays for the experience.
Services are mobile since they can be provided at different locations.

Describe four characteristics of services. (8 marks)

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Discuss five factors that may promote entrepreneurship in Kenya. (10 marks)

20/12/2020

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Discuss five factors that may promote entrepreneurship in Kenya.

Factors that may promote entrepreneurship in Kenya include:

Government support - favourable government policies on funding and regulation of business activities may encourage the emergence and expansion of business ventures.
Training in entrepreneurship - trainees are equipped with skills and knowledge to undertake entrepreneurial activities.
Cultural practices - some cultural practices encourage entrepreneurship through early exposure to business activities.
Role models - interaction with successful business people may inspire entrepreneurship.
Availability of capital - capital for starting and expanding a business may facilitate entrepreneurship.
Peer group influence - people may be encouraged to venture into business if they associate with friends who encourage them to do so.
Availability of market - people venture into business to satisfy customers where there is a gap in their needs.
Good infrastructure - This facilitates access to markets.
Political stability. This encourages investment and fosters security.

Discuss five factors that may promote entrepreneurship in Kenya. (10 marks)

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Explain five ways in which a computer may be used in an office.

20/12/2020

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Explain five ways in which a computer may be used in an office.

Ways in which a computer may be used in an office include:

Data processing - data can be keyed into the computer which then sorts,organizes, analyzes and gives meaningful output.
Storage of information - a computer has various storage devices where information can be kept for future reference.
A tool for communication A computer can be linked to the internet and other work stations to enhance sharing of information.
Production of documents - can be used as a word processor to produce both soft and hard copies. .
Assist in research - a computer provides a link with various sites where information can be sourced for research purposes.
Assist in decision making - it has special programmes and models which may facilitate the decision making process for managers.
Can be used for training and staff development - it is a tool for training during staff orientation and presentation.
Entertainment - the computer has accessories for games, music and movies which can be used for relaxation while working.
A tool of supervision can be used to monitor employee activities on-line.

Explain five ways in which a computer may be used in an office.

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Explain five benefits of division of labour to an organization.

20/12/2020

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Explain five benefits of division of labour to an organization.

Benefits of division of labour to an organization include:

Less time is spent in completing a job - there is less movement by workers while changing from doing one work to another.
Increased production- people become more adept at their jobs as they do it repeatedly hence increasing productivity.
Standardized goods - goods produced are of uniform quality which enhances customer satisfaction and the firm’s image.
Increased use of machines - work can be automated leading to lower costs of production.
Enhanced management - this facilitates control, co-ordination and accountability.
High quality goods produced - people concentrate in doing jobs for which they are best suited which improves quality of output.
Increased creativity and innovation - the organization may tap workers talents and skills which may help to modify existing products, develop new products, initiate new methods of production or discover new markets.
Improved efficiency due to better use of resources.

Explain five benefits of division of labour to an organization.

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Highlight four benefits that a country gets by encouraging trade among her citizens.

20/12/2020

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Highlight four benefits that a country gets by encouraging trade among her citizens.

Benefits that a country gets by encouraging trade among her citizens include:

Facilitates exchange of goods between people from different regions.
Creates employment opportunities.
Earns tax revenue from businesses.
Enhances relationships between communities.
Opens up remote areas.
Encourages specialization.
Improves the standards of living for citizens.
The country is able to dispose off her surplus produce.

Highlight four benefits that a country gets by encouraging trade among her citizens.

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State four ways in which a good filing system may facilitate the operations in an office.

20/12/2020

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State four ways in which a good filing system may facilitate the operations in an office.

Ways in which a good filing system facilitates the operations in an office include:

Easy retrieval of information.
Office is kept tidy.
Information is preserved for future reference
Security of documents is ensured.
Facilitates quicker decision making.
Ensures confidentiality of information by controlling access by unauthorized people.
Saves on office space.

State four ways in which a good filing system may facilitate the operations in an office.

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State four factors that may lead to the success of a business.

20/12/2020

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State four factors that may lead to the success of a business.

Factors that may lead to the success of a business include:

Availability of capital.
Developed infrastructure.
Availability of skilled labour.
Government support.
Access to markets.
Aggressive marketing.
Proper management of the business.
Availability of security.
Political stability.

State four factors that may lead to the success of a business.

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Outline four features of indirect production.

20/12/2020

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Outline four features of indirect production.

Features of indirect production include:

Goods are produced for sale.
Goods are produced in large quantities.
There is specialization in production.
High quality goods are produced.
Modem technology is extensively used.
Promotes interdependence.

Outline four features of indirect production.

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​Explain four ways in which man uses clothing to satisfy his wants (4mks)

​Explain five external factors that influence the success of a business. (10mks)

​Outline four main functions of an office in any business organization. (4mks)

​State four problems the consumers encounter in the process of satisfying their wants. (4mks)

​State four factors that encourage entrepreneurship in Kenya (4mks)

​The Manager of ENOOSAEN Sugar Company has vowed improve the company’s yield by 60% through labour motivation. State four ways by which he can achieve this.

​Importance of business studies in the society

Explain five benefits that may accrue to a country with a large proportion of skilled labour force.

Outline four positive effects that production activities may have on community health.

Outline one circumstance under which each of the following source documents may be issued by a trader:

The participants in a two sector economy are households and firms. Identify the relevant participant in each of the statements given below:

Fill the relevant branches of trade in the diagram given below:

State four functions of an office.

Highlight four external factors that may negatively influence the operations of a business.

Highlight four external factors that may negatively influence the operations of a business.

Outline four ways in which business studies may be of benefit to an individual.

A school leaver plans to start a retail business. Explain five types of small scale retail shops the person may start.

Describe four characteristics of services.

Discuss five factors that may promote entrepreneurship in Kenya.

Explain five ways in which a computer may be used in an office.

Explain five benefits of division of labour to an organization.

Highlight four benefits that a country gets by encouraging trade among her citizens.

State four ways in which a good filing system may facilitate the operations in an office.

State four factors that may lead to the success of a business.

Outline four features of indirect production.

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Explain four ways in which man uses clothing to satisfy his wants (4mks)

Explain five external factors that influence the success of a business. (10mks)

Outline four main functions of an office in any business organization. (4mks)

State four problems the consumers encounter in the process of satisfying their wants. (4mks)

State four factors that encourage entrepreneurship in Kenya (4mks)

The Manager of ENOOSAEN Sugar Company has vowed improve the company’s yield by 60% through labour motivation. State four ways by which he can achieve this.

Importance of business studies in the society