Name………………………………………Admission Number……………

School……………………………………………..Stream / Class………….
565/1
BUSINESS STUDIES
June 2021
2 hours
ZETECH BUSINESS STUDIES EXAMINATIONS
Instructions to candidates.
a) Write your name, admission number, school and stream in the spaces provided above.
b) Answer all the questions
c) All answers should be written in the spaces provided in this booklet.
d) This paper consists of 7 printed pages.
e) Candidates should check the question paper to ascertain that all pages are printed
as indicated and that no questions are missing.
f) Candidates should answer the questions in English.
For examiners use only
Question 1 2 3 4 5 6 7 8 9 10 11 12 13

Marks

Question 14 15 16 17 18 19 20 21 22 23 24 25

Marks

Total
Marks

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1. State four importance business to the society. (4 marks)

a) ..............................................................................................................................

b) ………………………………………………………………………………......

c) …………………………………………………………………………………..

d) …………………………………………………………………………………..

2. Outline four characteristics of human wants. (4 marks)

a) ..............................................................................................................................

b) ………………………………………………………………………………......

c) …………………………………………………………………………………..

d) …………………………………………………………………………………..

3. Give four features of limited liability companies. (4 marks)

a) ..............................................................................................................................

b) ………………………………………………………………………………......

c) …………………………………………………………………………………..

d) …………………………………………………………………………………..

4. Highlight four characteristics of a good filing system. (4 marks)

a) ..............................................................................................................................

b) ………………………………………………………………………………......

c) …………………………………………………………………………………..

d) …………………………………………………………………………………..

5. Give four reasons why the government may find in necessary to start a parastatal.
(4 marks)
a) ..............................................................................................................................

b) ………………………………………………………………………………......

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 c) …………………………………………………………………………………..

d) …………………………………………………………………………………..

6. Highlight four roles of Kenya Bureau of Standards (KEBs) in consumer protection.

(4 marks)
a) ..............................................................................................................................

b) ………………………………………………………………………………......

c) …………………………………………………………………………………..

d) …………………………………………………………………………………..

7. Outline four differences between liners and tramps. (4 marks)

a) ..............................................................................................................................

b) ………………………………………………………………………………......

c) …………………………………………………………………………………..

d) …………………………………………………………………………………..

8. Outline four essentials of an effective communication. (4 marks)

a) ..............................................................................................................................

b) ………………………………………………………………………………......

c) …………………………………………………………………………………..

d) …………………………………………………………………………………..

9. The following are some of types of warehouse: public warehouse, bonded warehouse,
private warehouse, specialized warehouse. Match each warehouse with the
appropriate description provided in the table below. (4 marks)
Description Warehouse
(a) Designed for storage of particular products
(b) Used solely for storing goods belonging to the owner
(c) Can be rented to other people who wish to store their
goods temporarily.
(d) Stores goods whose import duty has not been paid

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10. Highlight four ways in which the government may use to motivate industries to
delocalize. (4 marks)
a) ..............................................................................................................................

b) ………………………………………………………………………………......

c) …………………………………………………………………………………..

d) …………………………………………………………………………………..

11. The table below represents the supply schedule for cabbages for seven weeks in the
month of January and February 2020.
Week 1 2 3 4 5 6 7
Quantity 809 785 730 575 540 490 415
(Tonnes)
Outline four causes of the trend in the table. (4 marks)

a) ..............................................................................................................................

b) ………………………………………………………………………………......

c) …………………………………………………………………………………..

d) …………………………………………………………………………………..

12. The participants in a two sector economy are households and firms. Identify the
relevant participant in each of the statements given below. (4 marks)
Statement Participant

(a) Payment for goods and services

(b) Sale of factors of production

(c) Payment for factors of production

(d) Sale of goods and services.

13. The following are assets, liabilities and capital of Bora Grocers as at 31st December,
2020.
Shop building 200,000
Cash at bank 140,000
Creditors 100,000
Furniture 120,000
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 Stock 100,000
Debtors 50,000
Bank loan 200,000
Capital ?
Use the information above to prepare a balance sheet as at 31st December 2020.
(4 marks)

14. State the effect of each of the following transactions on the balance sheet by writing
increase, decrease or no effect in each case. (4 marks)
Transaction. Effect.

a) Bought machinery on credit …………………..

b) Withdrew cash from the business for own use …………………..

c) Purchased stock in cash …………………..

d) Paid outstanding loan by cheque …………………..

15. Identify four features of perfectly competitive market. (4

marks)

a) ..............................................................................................................................

b) ………………………………………………………………………………......

c) …………………………………………………………………………………..

d) …………………………………………………………………………………..

16. Give four features of an insurable interest. (4 marks)

a) ..............................................................................................................................

b) ………………………………………………………………………………......
5
 c) …………………………………………………………………………………..

d) …………………………………………………………………………………..

17. Outline four advantages of division of labour. (4 marks)

a) ..............................................................................................................................

b) ………………………………………………………………………………......

c) …………………………………………………………………………………..

d) …………………………………………………………………………………..

18. The following statements relates to types of employment. Match each statement with
relevant types of unemployment. (4 marks)
a) Caused by a decrease supply of raw materials………………………………….

b) Caused by a decline in number of tourists visiting hotels leading to laying off of

workers………………………………………………………………………..

c) Caused by a decrease in demand of goods……………………………………..

d) Caused due to mismatch between skills and available job

opportunities………………………………………………

19. Give four accounting documents used in home trade. (4 marks)

a) ..............................................................................................................................

b) ………………………………………………………………………………......

c) …………………………………………………………………………………..

d) …………………………………………………………………………………..

20. State four clauses found in Memorandum of Association. (4marks)

a) ..............................................................................................................................

b) ………………………………………………………………………………......

c) …………………………………………………………………………………..

d) …………………………………………………………………………………..

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21. State four benefits that accrue to a trader who deals in only on type of commodity.
(4 marks)
a) ..............................................................................................................................

b) ………………………………………………………………………………......

c) …………………………………………………………………………………..

d) …………………………………………………………………………………..

22. Outline four functions of an entrepreneur as a factor of production. (4marks)

a) ..............................................................................................................................

b) ………………………………………………………………………………......

c) …………………………………………………………………………………..

d) …………………………………………………………………………………..

23. Give four essentials of a market. (4 marks)

a) ..............................................................................................................................

b) ………………………………………………………………………………......

c) …………………………………………………………………………………..

d) …………………………………………………………………………………..

24. State four factors that may affect productivity of labour as a factor of production.
(4 marks)
a) ..............................................................................................................................

b) ………………………………………………………………………………......

c) …………………………………………………………………………………..

d) …………………………………………………………………………………..

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25. A shipping company operates between Mombasa and Zanzibar. State the factors of
production under which each of the following falls: (4 marks)

a) The ship………………………………………………………………………..

b) The owners……………………………………………………………………..

c) The ocean………………………………………………………………………

d) The crew………………………………………………………………………..