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NAME______________________________________ ADMISSION NUMBER_____________

SCHOOL ____________________________________ CLASS __________________________

DATE_____________________________________ SIGNATURE____________________

Instructions to Candidates

(a) Write your name and admission number in the spaces provided.
(b) Write the name of the school and Sign in the spaces provided.
(c) Answer all the questions in the spaces provided in the question paper.
(d) Non-programmable silent electronic calculators may be used.
(e) This paper consists of 9 printed pages.
(f) Candidates should check the question paper to ascertain that all pages are
printed as indicated and that no questions are missing.
(g) Candidates should answer the questions.
FOR EXAMINER’S USE ONLY

Question 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18

Marks

19 20 21 22 23 24 25

TOTAL MARKS
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1. Outline four disciplines incorporated in the business studies course.

(4 marks)
(a) …………………………………………………………………………………………………
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(b) …………………………………………………………………………………………………
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(c) …………………………………………………………………………………………………
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(d) …………………………………………………………………………………………………
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2. State four characteristics of departmental stores. (4marks)
(a) …………………………………………………………………………………………………
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(b) …………………………………………………………………………………………………
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(c) …………………………………………………………………………………………………
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(d) …………………………………………………………………………………………………
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3. Highlight four reasons why human wants may not be fully satisfied. (4marks)
(a) …………………………………………………………………………………………………
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(b) …………………………………………………………………………………………………
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(c) …………………………………………………………………………………………………
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(d) …………………………………………………………………………………………………
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4. Identify the rewards of the following factors of production. (4marks)

No Factor Reward
(a) Limestone
(b) Doctor
(c) Tractor
(d) Landlord

5. Mention four reasons why people engage in business. (4 marks)

(a) …………………………………………………………………………………………………
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(b) …………………………………………………………………………………………………
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(c) …………………………………………………………………………………………………
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(d) …………………………………………………………………………………………………
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6. State four circumstances under which cash may be used as a means of
payment. (4marks)
(a) …………………………………………………………………………………………………
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(b) …………………………………………………………………………………………………
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(c) …………………………………………………………………………………………………
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(d) …………………………………………………………………………………………………
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7. Outline four characteristics of direct production. (4marks)
(a) …………………………………………………………………………………………………
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(b) …………………………………………………………………………………………………
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(c) …………………………………………………………………………………………………
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(d) …………………………………………………………………………………………………
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8. Identify four ways of generating a business idea. (4marks)
(a) …………………………………………………………………………………………………
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(b) …………………………………………………………………………………………………
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(c) …………………………………………………………………………………………………
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(d) …………………………………………………………………………………………………
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9. Identify four factors that influence entrepreneurial practices in Kenya.
(4 marks)
(a) ………………………………………………………………………………………………
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(b) ………………………………………………………………………………………………
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(c) ………………………………………………………………………………………………
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(d) ………………………………………………………………………………………………
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10. Identify four ways in which an office is important to a business. (4 marks)
(a) …………………………………………………………………………………………………
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(b) …………………………………………………………………………………………………
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(c) …………………………………………………………………………………………………
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(d) …………………………………………………………………………………………………
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11. Outline four ways in which a well laid out business structure is likely to lead
to success of the business. (4 marks)
(a) …………………………………………………………………………………………………
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(b) …………………………………………………………………………………………………
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(c) …………………………………………………………………………………………………
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(d) …………………………………………………………………………………………………
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12. Identify four functions of a proforma invoice. (4 marks)
(a) …………………………………………………………………………………………………
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(b) …………………………………………………………………………………………………
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(c) …………………………………………………………………………………………………
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(d) …………………………………………………………………………………………………
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13. Outline the importance of trade to a country. (4 marks)
(a) …………………………………………………………………………………………………
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(b) …………………………………………………………………………………………………
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(c) …………………………………………………………………………………………………
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(d) …………………………………………………………………………………………………
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14. Give an example of each of the following Business Activities. (4 marks)

Activity Example
a Extraction
b Manufacturing
c Processing
d Commercial services

15. State four factors that you would consider before extending credit facilities to a
customer. (4 Marks)
(a) …………………………………………………………………………………………………
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(b) …………………………………………………………………………………………………
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(c) …………………………………………………………………………………………………
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(d) …………………………………………………………………………………………………
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16. The table below shows descriptions relating to some documents used in home
trade. Name the document fitting the description. (4 Marks)
Description Document

(a) Used to correct an undercharge

error
(b) Seeking information on items
stocked and their prices
(c) Inform the buyer that the goods
ordered have been dispatched
(d) Requests payment for goods before
they are sent to the customer

17. Mention four characteristics of goods. (4marks)

(a) ……………………………………………………………………………………………………
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(b) ……………………………………………………………………………………………………
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(c) ……………………………………………………………………………………………………
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(d) ……………………………………………………………………………………………………
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18. Give four benefits of a partitioned office layout. (4marks)
(a) …………………………………………………………………………………………………
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(b) …………………………………………………………………………………………………
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(c) …………………………………………………………………………………………………
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(d) …………………………………………………………………………………………………
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19. Outline four reasons for dishonoring a cheque. (3marks)
(a) …………………………………………………………………………………………………
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(b) …………………………………………………………………………………………………
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(c) …………………………………………………………………………………………………
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(d) …………………………………………………………………………………………………
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20. Highlight four ways in which business studies is useful to a community.

(4marks)
(a) …………………………………………………………………………………………………
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(b) …………………………………………………………………………………………………
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(c) …………………………………………………………………………………………………
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(d) …………………………………………………………………………………………………
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21. A resource is something that is used by a business to achieve an objective.

Identify four resources available in a business. (4marks)
(a) …………………………………………………………………………………………………
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(b) …………………………………………………………………………………………………
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(c) …………………………………………………………………………………………………
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(d) …………………………………………………………………………………………………
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22. State four factors that an entrepreneur would consider before investing in a
business opportunity. (4 marks)

(a) …………………………………………………………………………………………………
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(b) …………………………………………………………………………………………………
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(c) …………………………………………………………………………………………………
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(d) …………………………………………………………………………………………………
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23. Highlight four characteristics of labor as a factor of production. (4 marks)
(a) …………………………………………………………………………………………………
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(b) …………………………………………………………………………………………………
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(c) …………………………………………………………………………………………………
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(d) …………………………………………………………………………………………………
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24. In the spaces provided below, indicate the type of utility created by each of
the following business activities. (4marks)
Business Activity Type of utility
(a) Selling face masks to customers
(b) Transporting onions
(c) Storing onions in a granary
(d) Making a camera
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25. State four circumstances under which a business firm may use photocopying
as a means of reproducing documents. (4 marks)
(a) …………………………………………………………………………………………………
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(b) …………………………………………………………………………………………………
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(c) …………………………………………………………………………………………………
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(d) …………………………………………………………………………………………………
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