KCSE Business Studies Topical Questions and Answers

April 2 Received reimbursement from the main cashier
April 3 Paid Kshs 3,070 for cleaning materials
April 4 Paid Kshs 2,000 bus fare
April 6 Bought stationery worth Kshs 2,200
Prepare a petty cashbook to record the above transactions using cleaning stationery and bus fare columns

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The graph below the rate of population growth of a given country, Outline four factors that may have contribute to the trend between s and t

14/12/2020

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The graph below the rate of population growth of a given country,Outline four factors that may have contribute to the trend between s and t

Outline four factors that may have contribute to the trend between s and t

Factors that may have contributed to the trend between S and T include:

Improved health facilities/health education
Lower mortality rate/death rates
Improved standard of living
Improved fertility rate /birth rates
Improvement in diet and nutrition
Immigration from other countries
Early marriages
Negative attitude towards family planning
In affective family planning method
Cultural/religious practice favour of many children
Absence of calamities epicenes, wars/politics
Absence of calamities epicenes, wars /politics
Ignorance/ lack of family planning methods
Establishment of policies that increase population.

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Outline four reasons why hypermarkets are becoming increasingly popular in Kenya

14/12/2020

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Outline four reasons why hypermarkets are becoming increasingly popular in Kenya

Reasons for popularity of hypermarkets in Kenya include:

Easily accessible
One stop shop-A range of goods and services may be obtained
Parking space is available of auxiliary services
Operates for longer hours
Accept debits/Credit cards
Attractive & convenient to shop in
Saves on land rates/ space
They offer sales services
Security guaranteed
Located away from city hassles
Availability of auxiliary services.

Outline four reasons why hypermarkets are becoming increasingly popular in Kenya

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Outline four circumstances that would make an office manager to replace an existing machine with modern one

14/12/2020

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Outline four circumstances that would make an office manager to replace an existing machine with modern one

Circumstances which would make an office manager to replace an existing machine with a modern one include:

Obsolescence- has outlived its usefulness
Where a faster machine is required
Where maintenance a costs are higher than cost of acquiring modern machine
Where there is need for increased production
Where training skills have changed
Where high quality works is required
Where he wants to save on labour
Where there is need to improve image of company
If the new one is capable of multiple use
If the new machine will save on space/storage
If the machine is capable of reducing fraud

Outline four circumstances that would make an office manager to replace an existing machine with modern one

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The bookkeeper of trade Traders extracted the following information from the accounting records.During the year ended 31.12.2007, suppliers were paid Kshs 1,500, 000 while cash purchases amounted to Kshs 800,000

14/12/2020

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The bookkeeper of trade Traders extracted the following information from the accounting records.During the year ended 31.12.2007, suppliers were paid Kshs 1,500, 000 while cash purchases amounted to Kshs 800,000

During the year ended 31.12.2007, suppliers were paid Kshs 1,500, 000 while cash purchases amounted to Kshs 800,000
Determine the purchases for the year (5 mks)

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Outline four reasons why an increase in per capital income may not necessarily lead to a rise in the standard of living of the citizens

14/12/2020

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Outline four reasons why an increase in per capital income may not necessarily lead to a rise in the standard of living of the citizens

Reasons why an increase in per capita income may not lead to a rise in standard of living include:

Per capita income is an average and hence a mere statistics
Per capita figures may be high but income may be unevenly distributed.
Those not involved in the generation of the national income are also included in the calculation
Generation rise in the price of commodities/inflation may affect the purchasing power of the citizen.
High taxes may erode the real value of per capita income
May be obtained through a strain on people’s health
Expenditure pattern by the government/individual serving debts.

Outline four reasons why an increase in per capital income may not necessarily lead to a rise in the standard of living of the citizens

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Country X has been experiencing an upward trend in the price of petrol as a result of a rise in inflation. State four steps that can be taken to minimize expenditure on this product.

14/12/2020

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Country X has been experiencing an upward trend in the price of petrol as a result of a rise in inflation. State four steps that can be taken to minimize expenditure on this product.

Steps that can be taken to minimize expenditure on petrol include:

Pooling people who are traveling to same direction
Use of alternative sources of energy/footing/bicycled
Encourage public service vehicles with higher carrying capacity/fuel saving engine
Encourage use of vehicle/machines with a lower engine capacity /fuel saving engine
Set maximum price legislation
Reduce tax on the product/subsidies
Improve road networks
Increase tax on complementary goods
Encourage machine maintenance
Swift off when not in use

Country X has been experiencing an upward trend in the price of petrol as a result of a rise in inflation. State four steps that can be taken to minimize expenditure on this product.

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Highlight four benefits that would accrue to a firm located near other existing firms

14/12/2020

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Highlight four benefits that would accrue to a firm located near other existing firms

Benefits that accrue to a firm located near existing firms:

Enjoyment of existing infrastructure
Access to labour
Access to raw materials
Collaboration with existing firms’ e.g. research & development
Auxiliary services
Access to markets
Access to security
Social amenities

Highlight four benefits that would accrue to a firm located near other existing firms

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Outline four circumstances which face to face communication may be ineffective

14/12/2020

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Outline four circumstances which face to face communication may be ineffective

Circumstances under which face to face communication may be ineffective.

Where there is age difference
Where the language has semantic problems/different languages
Where there exists a difference in frame of reference
Where the credibility of the communicating parties is in question/negative attitude/bias/prejudice
Where the receiver has a problem in hearing/hearing insparent
Unfamiliar/difficult terminologies
Noise
Pronunciation problems
Timing
Inability to understand gestures
Emotional responses shynels/ fear etc

Outline four circumstances which face to face communication may be ineffective

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Outline four factors that should be considered in the choice of a means of transporting perishable goods

14/12/2020

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Outline four factors that should be considered in the choice of a means of transporting perishable goods

Factors to consider in the choice of a means for transporting perishable goods

Unit value of the product/cost of goods
Distance to cover/destination/speed
Specicialized facility
Cost of transport
Urgency required at the destination/speed
Volume/quantity
Availability of the means.

Outline four factors that should be considered in the choice of a means of transporting perishable goods

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A lucrative manufacturing firm been constantly releasing toxic wastes into the neighborhood. Outline four measures you can take to stop the firm from such malpractice

14/12/2020

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A lucrative manufacturing firm been constantly releasing toxic wastes into the neighborhood. Outline four measures you can take to stop the firm from such malpractice

Measures to stop emission of toxic wastes into neighborhood include:

Publicize the malpractice
Take legal action/sue the firm
Report to national environmental Management Authority(NEMA/Relevant authority
Education the neighbours on their rights.
Boycott the firms products
Carry out demonstrations against the firm

A lucrative manufacturing firm been constantly releasing toxic wastes into the neighborhood. Outline four measures you can take to stop the firm from such malpractice

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Outline four benefits that may accrue to a business from a country’s political stability

14/12/2020

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Outline four benefits that may accrue to a business from a country’s political stability

Benefits that may accrue from political stability include:

High probability of achieving set goals (increased sales/increased production)
Easy to obtain capital for expansion
Cost of operation of business is low
Accessibility to the market is enhanced
Continuous production activities
Easy to invest anywhere in the country/local or foreigner’s
Accessibility to raw materials

Outline four benefits that may accrue to a business from a country’s political stability

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State four items that usually appear the credit side of the current account of a country

14/12/2020

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State four items that usually appear the credit side of the current account of a country

Items that may appear on the credit side of the current account of a country

Receipts from export of goods/visible export
Receipt from export of services/invisible exports
Receipt from investment abroad
Deficit balance.

State four items that usually appear the credit side of the current account of a country

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KCSE BASED BUSINESS STUDIES Q & A

The following information relates to Maji Mazuri Traders as 31. 12. 2008

The following information relates to Maji Mazuri Traders as 31. 12. 2008

Highlight four circumstances under which business enterprises may choose to merge

Highlight four circumstances under which business enterprises may choose to merge

Kazim maintains a petty cashbook on a weekly interest of Kshs 13,000 on 1st April 2007 the cash balance was Kshs 2,570, During the week of April, the following transactions took place

Kazim maintains a petty cashbook on a weekly interest of Kshs 13,000 on 1st April 2007 the cash balance was Kshs 2,570, During the week of April, the following transactions took place

The graph below the rate of population growth of a given country, Outline four factors that may have contribute to the trend between s and t

The graph below the rate of population growth of a given country,Outline four factors that may have contribute to the trend between s and t

Outline four reasons why hypermarkets are becoming increasingly popular in Kenya

Outline four reasons why hypermarkets are becoming increasingly popular in Kenya

Outline four circumstances that would make an office manager to replace an existing machine with modern one

Outline four circumstances that would make an office manager to replace an existing machine with modern one

The bookkeeper of trade Traders extracted the following information from the accounting records.During the year ended 31.12.2007, suppliers were paid Kshs 1,500, 000 while cash purchases amounted to Kshs 800,000

The bookkeeper of trade Traders extracted the following information from the accounting records.During the year ended 31.12.2007, suppliers were paid Kshs 1,500, 000 while cash purchases amounted to Kshs 800,000

Outline four reasons why an increase in per capital income may not necessarily lead to a rise in the standard of living of the citizens

Outline four reasons why an increase in per capital income may not necessarily lead to a rise in the standard of living of the citizens

Country X has been experiencing an upward trend in the price of petrol as a result of a rise in inflation. State four steps that can be taken to minimize expenditure on this product.

Country X has been experiencing an upward trend in the price of petrol as a result of a rise in inflation. State four steps that can be taken to minimize expenditure on this product.

Highlight four benefits that would accrue to a firm located near other existing firms

Highlight four benefits that would accrue to a firm located near other existing firms

Outline four circumstances which face to face communication may be ineffective

Outline four circumstances which face to face communication may be ineffective

Outline four factors that should be considered in the choice of a means of transporting perishable goods

Outline four factors that should be considered in the choice of a means of transporting perishable goods

A lucrative manufacturing firm been constantly releasing toxic wastes into the neighborhood. Outline four measures you can take to stop the firm from such malpractice

A lucrative manufacturing firm been constantly releasing toxic wastes into the neighborhood. Outline four measures you can take to stop the firm from such malpractice

Outline four benefits that may accrue to a business from a country’s political stability

Outline four benefits that may accrue to a business from a country’s political stability

State four items that usually appear the credit side of the current account of a country

State four items that usually appear the credit side of the current account of a country

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