Kenya Certificate of Secondary Education (KCSE 2009) Business Paper 1

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State four factors that may affect the geographical mobility of labour. (4 marks)
Outline four ways in which Commercial Attaches may promote trade between their countries and other countries. (4 marks)
Amboseli Enterprises has been spending heavy on promotion for its products though its sales have consistently declined. Outline four measures that the company take to reverse the trend. (4 marks)
Write the demand represented by each of the following statements.
1. Demand for a commodity causes an increase in demand of another commodity. (2 marks)
2. Demand for one commodity calls for demand of another commodity. (2 marks)
The following balances were extracted from the books of Saku traders on 31 March 2008.
Fixed assets          300,000
Current assets       123,700
Creditors               84, 500
5 year loan           125,000
Determine the net worth of the business as at 31^st March 2008. (4 marks)
Indicate the type of journal in which each of the following transaction would be recorded.
A trader has decided to take a loan to expand a manufacturing business. Give two reasons why it is beneficial to borrow from a non-bank financial institution. (4 marks)
State four items that usually appear the credit side of the current account of a country. (4 marks)
Outline four benefits that may accrue to a business from a country’s political stability. (1 mark)
A lucrative manufacturing firm constantly has been constantly releasing toxic wastes into the neighborhood. Outline four measures you can take to stop the firms from such malpractice. (4 marks)
Outline four factors that should be considered in the choice of a means of transporting perishable goods. (4 marks)
Outline four circumstances under face to face communication may be ineffective. (4 marks)
Highlight four benefits that would accrue to a firm located near other existing firms. (4 marks)
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 used to minimize expenditure on this product. (4 marks)
Outline four reasons why an increase in per capital income may not necessarily lead to a rise in standard of living of the citizens. (4 marks)
The book keeper of trade Traders extracted the following information from the accounting records.

During the year ended 31.12.2006, suppliers were paid ksh 1,500,000 while cash purchases amounted to Kshs 800,000.
Determine the purchases for the year. (5 marks)
Outline four circumstances that would make an office manager to replace an existing machine with modern one. (4 marks)
Outline four reasons why hypermarkets are becoming increasingly popular in Kenya. (4 marks)
The graph below shows the rate of population growth of a given country.

Outline four factors that may have contributed to the trend between s and t. (4 marks)
Kazim maintains a petty cashbook on a weekly imprest of Kshs 13,000 on 1^st April 2007 the balance was Kshs 2,570.
During the week of April, the following transactions took place.

Prepare a petty cashbook to record the above transactions using cleaning stationery and bus fare columns. (5 marks)
Highlight four circumstances under which business enterprises may choose to merge. (4 marks)
The following information relates to Maji Mazuri Traders as 31.12.2008.

Calculate:
1. Rate of return on capital employed.
2. Current ratio (4 marks)
Highlight four factors that must be considered before incurring public expenditure. (4 marks)
Outline four benefits that accrue to the government as a result of privatization of public enterprises. (4 marks)
KAMAT owned a motor vehicle valued Kshs 1,000,000. He comprehensively insured the car at Kshs 800,000. The motor vehicle was involved in an accident and declared a write off. Calculate the amount KAMAT should get from the insurer.