Get the Answers here Form 4 End Term 1 Exams 2023 Questions and Answers

1. Highlight four principles of insurance.                                                                 (4 mks)

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• Outline four reasons how competitive environment affects Business activities. (4 mks)

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• State four characteristics of a perfect competition market.                                  (4 mks)

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• Outline four differences between a good and a service.                                       (4 mks)

(i)
(ii)
(iii)
(iv)

• Match the following statements with the correct source documents.                  (4 mks)

	Statement	Source document
(i)	A document that serves as an evidence that cash has been received or paid out.
(ii)	A document that shows the details of all the expenses incurred, the amount of money spent and the purpose of incurring such an expense.
(iii)	A document sent by the seller to the buyer demanding payment for goods or service delivered.
(iv)	A document written by a supplier and sent to a buyer informing him / her that his / her account with the supplier has been debited.

• This is the Mitegi’s demand schedule for Bread in a week.

Price per loaf (shs)	No of loaves demanded
30	1
20	2
15	4
12	6
10	8
5	12
1	20

       Required:

       Draw the demand curve of Mutegi’s Bread for a whole week.                           (4 mks)

• Highlight four importance of business studies to a learner.                                 (4 mks)

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• Using the balance sheet equation. Fill the missing figures in the following table.  (4 mks)

	Assts	Capital	Liabilities
(i)	21,920	?	30,341
(ii)	?	2,192	19,840
(iii)	3,773	1,591	?
(iv)	240	150	?

• Outline four roles played by the stock exchange market as a market for securities. (4 mks)

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1. Highlight four factors which may influence choice of a distribution channel.    (4 mks)

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1. Outline four advantages of a bonded warehouse.                                                 (4 mks)

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1. Match the following documents with their relevant uses.                                    (4 mks)

	Statement	Documents
(i)	This is a document which briefly describes the goods a seller stocks
(ii)	A documents sent by the seller to the buyer when an inquiry is specific in mature.
(iii)	A document sent to a prospective buyer to inform him/her that the order has been received and it is being acted upon.
(vi)	A document sent by the buyer when goods get damaged on the way and returned to the seller.

1. Highlight our goals of economic development.                                                   (4 mks)

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1. Outline the type of unemployment in an economy and give the cause for each. (4 mks)

• Unemployment occurs when people lose jobs and go looking for new ones

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• Unemployment that occurs when people are actively looking for jobs at the existing wage rate but cannot get them….……………………………………………………..
• Unemployment that occurs repeatedly at similar times

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• Unemployment that occurs when demand for labour declines due to either changes in the method of production or a decrease in the supply of goods and services.

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1. Outline four reasons why there is need for ethical practices in business.                        (4 mks)

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1. Highlight four problems encountered in measuring national income using the output approach method.                                                                                                      (4 mks)

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1. Match the following uses with the appropriate office equipment.                       (4 mks)

	Uses	Office equipment
(i)	It is a machine that is used for preparing cash receipts
(ii)	It is a machine used for trimming documents into required shapes and size.
(iii)	A machine which is used for cutting unwanted documents into tiny pieces to avoid such documents getting into the wrong hands.
(vi)	A machine which is used to complex calculations.

1. Explain the meaning of the following terms of sale as used in international trade. (4 mks)

• F.O.B. (Free on Board)………………………..………………………………………..

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• LOCO or ex-warehouse or ex- works……………………………………………………

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• F.O.R. (Free on Rail)……….…………………………………………………………..

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1. Highlight four ways how consumers can protect themselves from exploitation from unscrupulous wholesalers / traders.                                                                    (4 mks)

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• Outline four criteria used in determining the size of the firm.                             (4 mks)

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• Outline four tools that the central bank of Kenya uses to control monetary policy. (4 mks)

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• Calculate the gross profit given the margin of ¹/₆ and the cost of goods sold to be 400,000/=.

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• Highlight four advantages of operating a current account.                                  (4 mks)

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• Outline four factors that influences the choice of product in the market.           

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• List four essential of an effective communication.

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