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Business Studies
PRE-TRIAL 2018
Time 2 HRS
ALLIANCE HIGH SCHOOL
PRE-TRIAL 2018
Business Studies Paper 1
- State the type of document described below in relation to home trade. (4 mks)
- Sent by the seller before goods are delivered showing how the invoice would look like
- Shows in a summary the transactions between the buyer and the seller
- Acknowledges a debt but does not show specific date of payment
- Pre – printed form that request the seller to supply the buyer with goods.
- Highlight 4 fiscal policies that can be used to control inflation.
- You have been provided with the following information of Sibuor Traders.
5 years loan 500,000 2 years loan 290,000 Stock 68,000 Cash 100,000 Overdraft 42,600 Debtors 79,000 Creditors 49,400 Building 355,000 Motor Van 587,500 Land 700,000
Calculate- Liquid ratio (1 mk)
- Current Ratio (1 mk)
- Working capital (1 mk)
- Capital employed (1 mk)
- In relation to product promotion describe the meaning of the following terms ( 4 mks)
- Loss leader
- Hoardings
- Institutional advertisement
- Psychological selling
- Given the following demand and supply schedule on the axis draw the demand and supply curve, show all the equilibriums (21/2 mks)
Price Qty demand Qty supplied 1 100 10 2 80 20 3 60 40 4 40 60 5 20 80 6 10 100 - Indicate the new equilibriums if there is a decrease in total supply ( 1 1/2 mks)
- Given the following demand and supply schedule on the axis draw the demand and supply curve, show all the equilibriums (21/2 mks)
- Outline 4 types of unemployment in Kenya today. (4 mks)
- From the data of Kanyi Traders given below prepare a profit and loss account on 31/12/2013 ( 4 mks)
Gross loss 25,400 Commission Received 75,100 Discount allowed 15,300 Rent Paid 22,400 Rent Received 17,800 Insurance 2,000 Power 4,000 Commission Received 10,800 Rates 18,000 - Highlight 4 differences between monopoly and monopolistic competition (4 mks)
- State 4 features of indirect production. (4 mks)
- Outline 4 disadvantages of delocalization of firms. (4 mks)
- Highlight 4 ways that can be used to increase a country's exports in order to correct unfavouble balance of payment. (4 mks)
- In evaluating a business opportunity there are certain personal consideration one has to take into account, highlight four (4 mks)
- Record the following transaction in the appropriate book of original entry No posting is required (4 mks)
March 1" Sales of goods on credit to Mark 7,800/- Lucy 5000/-
March 2" Sales of goods on credit to Murimi 2000/-, George 1,400/-
March 3 Sales of goods on credit to Tom 1,100/- Eugene 8,000/- - State 4 factors that determine the holding of money for precautionary motive. ( 4 mks)
- Briefly explain the meaning of the following terms in relation to public finance ( 4 mks)
- Escheats
- Specific tax.
- Reproductive debt
- Impact of tax
- Outline 4 factors that a school should take into consideration before deciding on a method оf rерrоgrарhу tо use. (4 mks)
- State four other names given to books of original entry. (4 mks)
- Give 4 reasons why Akinyl should run a sole proprietorship business instead of joining hands with others to form a partnership (4 mks)
- Outline 4 factors that may make an insurer to re-insure. (4 mks)
- Describe 4 features of liner ships. (4 mks)
- The initials below indicate equilibrium national income.
S+T+M - 1+ X +G
Write the mean of the following (4 mks)- X
- M
- S
- I
- State 4 reasons why choice should be made in satisfying human wants. (4 mks)
- Distinguish between the following (4 mks)
- General merchandise wholesalers and general line wholesalers.
- Del credare agents and import bookers
- Diagonal communication and vertical communication
- Speed post mail and Express mail
- Outline 4 characteristics of bonded warehouse. (4 mks)
- Given the following items of Duka Bora Shop, prepare a trial balance on 31/12/2017 (4 mks)
Stock on 1st Jan 2017 43,000 Stock on 31/12/2017 39,600 Capital ? Land and building 500,000 Sales 75,000 Purchases 65,000 Cash 100,000 Overdraft 80,000 Return Inwards 1,100 Return outwards 2,000 Carriage 5,000 Rent Paid 1,700 Postage 600 Discount received 4,900 Loan 290,000 Creditors 160,000 Debtors 145,000
NB 1/5 of carriage relate sales
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