GET THE KCSE PREDICTION BUSINESS STUDIES P1 MARKING SCHEMES HERE
Bunyore
1.Highlight three benefits of business to a society.(3 marks
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2.State four advantages of locating a firm near the source of raw materials.(4 marks)
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3.Highlight four trends in communication. (4 marks)
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4.Outline four advantages of a rapidly growing population. (4 marks)
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5. Outline four ways through which peace within a country benefits a business.(4 marks)
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6.Primary level is the major contributor of gross domestic product in developing countries as compared to other levels of production.State four reasons for this.(4 marks)
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7.State four advantages of using intermediaries in the distribution of goods.(4 marks)
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8.Highlight four differences between acooperative societies and private limited company. (4 marks)
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9.State four advantages of using modern technology in an office. (4 marks)
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10. The following information was extracted from the books of Venus traders as at 31st December 2020:
Details shs
5 years loan 256,700
Land 120,000
Cash 24,600
Creditors 37,400
Building 430,500
Prepare Venus traders balance sheet as at 31st December 2020.(4 marks)
11.Outline four factors that may hinder geographical mobility of labour. (4 marks)
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12.The following relate to Furaha Traders for the year 2020
i)closing capital (31.12.2020) sh 300,000
ii)the owner converted his personal computer valued at sh 35,000 into business use.
iii)the owner had withdrawn goods worth sh 40,000 for personal use.
iv) incurred losses amounting to sh 65,000
Determine Furaha Traders intial capital on(1.01.2006). (4 marks)
13.For each of the following source documents ,indicate the book of original entry:(4 marks)
| Source document | Book of original entry |
| Received receipt | |
| Incoming invoice | |
| Outgoing credit note | |
| Incoming cash sale slips |
14.Highlight four measures that a government may take to reduce the mortality rate in a
country. (4 marks)
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15.The following balances were extracted from the books of Mavuno Traders for the
year ended 31st march 2021.
Gross profit. 186,200
Discount allowed. 7,400
Carriage outwards. 13,500
Rent received. 34,300
Office expenses. 19,600
Salaries. 57,000
Prepare a profit and loss for the ended 31st march 2021(5 marks)
16.State four factors that determine the amount of money held for precautionary motive. (4 marks)
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17.State four methods of sale promotion a business may adopt.(4 marks)
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18.State four reasons why consumers have to make a choice between competing needs.(4 marks)
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- Identify the retailers described in the statement given below (4marks
| Statement | Retailers |
| a)sell goods by displaying them along the street | |
| b)move from one place to another on foot selling their products | |
| c)Dispenses goods with the use of coins operated machines | |
| d)Meet on designated days in open ground to sell their goods. |
20.State four ways a business can use to motivate it’s work force.(4 marks)
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21.List four types of businesses activities. (4 marks)
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22.Highlight four benefits of selling goods online. (4 marks)
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23.Identify four circumstances under which an insurance contract may be terminated.(4 marks)
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24.State four characteristics of a successful entrepreneurs.(4 marks)
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25.Show the effect of each of the following transaction to capital,assets and liabilitiesindicating if its increasing(+),decreasing(-) or nil(0). (4 marks)
| Transaction | Capital | Asset | Liability |
| a)Converted private house into business premises | |||
| b)Paid creditors in cash | |||
| c)Sold a business car valued at sh 400,000 for sh 300,000 on credit | |||
| d)Sold goods on credit |