Quality Exams

Form 4 Nyahokakira Joint KCSE Model Business Studies Paper 1

Published on September 10th 2023 | 4 mins , 688 words

1. Outline four features of labour as a factor of production

  • It is a basic factor of production
  • Its rewards is salaries / wages / commissions
  • Labour is mobile
  • Labourers sell their labour and not themselves
  • Labour cannot be separated from the owner
  • It cannot be stored / highly perishable

2. State four types of partnership

  • Ordinary partnership
  • Limited partnership
  • Temporary partnership
  • Permanent partnership

3. Name the internal environment whose whose effects are described by the following statements

  • Effect: Allows duties to be allocated to the right people thus resulting in higher productivity
  • Internal Environment: Business structure 
  • Effect: Skills and methods used in production
  • Internal Environment: Business resources
  • Effect: Makes employees to acquire norms and code of conduct that is acceptable to all
  • Internal environment: Business culture
  • Effect: Useful in generating new ideas and new methods of production
  • Internal Environment : Research

4. Outline four ways in which land influences the location of industries

a) Cost of land

b) Availability of room for expansion

c) Government policy on land utilization 

d) Proximity to auxiliary services

e) The nature of land in terms of aspects like terrain

f) Nearness of land to raw material source

5. Give four reasons why government levies taxes

(a) To generate revenue

(b) To ensure equitability in redistribution of wealth

(c) To maintain economic stability

(d) To protect local industries

(e) To regulate imports and exports

(f) To discourage consumption of harmful products

(g) To control inflation by reducing the disposal income

6. Outline four factors that may make a producer to bypass the wholesaler when distributing goods

(a) When the goods are highly perishable hence need to deliver fast

(b) Where the manufacturer has his own retail outlet

(c) Where the manufacturer wishes to have direct contact with the consumers

(d) Where the market for the product is limited

(e) Where the market is concentrated in one area

(f) Where goods are expensive, causing high risk levels

(g) Where the producer wants to keep the costs low

(h) Where the goods do not require bulk breaking

(i) Where the commodity is a service

7. Under what four circumstances would an office manager think of replacing an existing office machine with a modern one

(a) when it has outlived its usefulness

(b) Where a faster machine is required 

(c) Where high quality work is required

(d) where he wants to save on labour

(e) Where maintenance cost is high

(f) where there is need to improve the image of the company

(g) where there is need for increased production

(h) If the new one is capable of multiple use

8. What each insurance term stands for:

(a) Kazi Moto .............Insured/Policy holder

(b) Fire ..........insured risk or peril

 (c) KShs. 300000 ................Sum insured/premium

(d) Motomoto Company ..........Insurer/Insurance Company

9. Name four circumstances under which a country may be classified as underdeveloped 

(a) When there is high population growth

(b) When high proportion of labour engages in agriculture

(c) When there is low level of technology

(d) When they are foreign trade oriented

(e) When there is high Poverty  levels

10. Highlight any four circumstances under which a gap may exist in a market

(a) Where some goods are unavailable  

(b) where goods offered are of poor quality

(c) where there are insufficient quantities of goods

(d) Where the prices of the goods are unaffordable

(e) Where poor services are offered

11. Highlight four roles of shows, trade fairs and exhibitions to producers.

(a) Products can be compared before making any decision and this may increase sales volume for the producer

(b) Salespersons / Producers get an opportunity to demonstrate and explain various features of their products to customers

(c) Immediate feedback is available to the producer

(d) General attendance in a stall would enable an organization to assess the market potential for its products

12. The table below shows description relating to some documents used in international trade


(a) shows from which the country goods come from

Document: Certificate of origin

(b) written by the exporter authorizing the bank to sell goods on his behalf

Document: Letter of hypothecation

(c) Allow importer to get goods on credit and cannot be changed by the importer without the exporter permission

Document : Letter of credit

(d) Helps in quicker clearance, and it is issued by the country's official abroad

Document : Consular invoice

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