Name…………………………………….........Adm. No………………..School………….....................

Candidates Signature……………… Date…………………………………...

MIGORI COUNTY BUSINESS STUDIES ASSOCIATION

(MICOBUSSA)
JULY 2023
565/1
BUSINESS STUDIES PAPER 1
FORM THREE
TIME: 2 HOURS
INSTRUCTIONS: TO CANDIDATES
(a) Write your name and admission number in the spaces provided
(b) Sign and write the date of the examination in the spaces provided
(c) This paper consists of twenty five questions.
(d) Answer ALL questions.
(e) All answers must be written in the spaces provided in the question paper.
(f) Write your answers in English.
FOR EXAMINER’S USE ONLY
Question 1 2 3 4 5 6 7 8 9 10 11 12 13
Score

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

GRAND
TOTAL

1.Give four reasons why individuals may find it necessary to start a business. (4 marks)
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2.List four after sale services that a seller may offer to attract more buyers. (4 marks)

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3.State four purposes of a business plan. (4 marks)

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4.Outline four ways in which the government creates enabling environment for business. (4
marks)

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 5 Outline four benefits of a bonded warehouse to the government. (4 marks)

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6.State four factors that may limit an individual ability to satisfy his basic wants. (4 marks)

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7.Identify the type of utility created in the following circumstances. (4 marks)

Activity Utility

a) Carpentry

b) Selling bread to students

c) Warehousing of goods imported

d) Carriage of cargo to the market

8.Highlight four characteristics of good filling system. (4 marks)

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 9.In the spaces provided below, state the business document, to which each of the following
statement relates to.
(4 marks)

Statement Document
a) Gives a description of goods and prices at which
the seller can supply the goods to the buyer.
b) Accompany the goods and it contains the list of
goods delivered
c) To inform the buyer that goods have been
dispatched

d) To correct an under-charge

10.Micobussa has introduced computers in his business operations, Outline four benefits that he
may experience. (4 marks)

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11. Outline four aspects of demography that affect businesses in the economy. (4 marks)

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12.State four factors to consider when evaluating a viable business Opportunity. (4 marks)

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13.Highlight four factors which may have led to a shift in the supply curve as illustrated below.

(4 marks)
Price
S1 S2

S1 S2

Quantity

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14.Outline four factors which may affect the circular flow of national income. (4 marks)

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15.The following information relates to four businesses A, B, C and D. Fill in the missing
figures.

(4 marks)
Business Assets Shs Capital Shs LiabilitiesShs
A 4,010,000 3,210,000 a).

B b). 9,312,000 211,100

C 1,301,111 c). 412,113
D 13, 917,331 11,716,000 d).
16.State four functions of Nairobi Stock Exchange Market as a market for securities. (4 marks)
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17.State four environmental effects that may result from the depletion of Kenya’s forest cover.

(4 marks)
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18. Kenya Kwanza government seeks to reduce the levels of unemployment in Kenya. Advice
the government on the possible measures it can use to solve the same problem. (4 marks)

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19.List four documents that are required before a Public Limited Company is allowed to
operate in the country. (4marks)

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20.Highlight four circumstances under which a trader may choose to transport goods by
Standard Gauge Rail way. (4marks)

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21.State four circumstances under which written communication may be preferred by many
schools in Kenya. (4marks)

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22.The following information was extracted from the books of Sony Traders as at 15th June,
2021.
Item Amount (Kshs)
Debtors 10,000
Stock 40,000
Bank 15,000
Cash 90,000
Creditors 25,000

Required: Prepare a balance sheet as at 15th June, 2021.

(5 marks)
23.List four criteria which can be used to classify partners. (4 marks)

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24.Highlight four advantages of promoting products through the internet. (4marks)

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25.Show the effect of each of the following transaction to capital, assets and liabilities
Indicating if it’s increasing (+), decreasing (-) or nil (0). (4 marks)

Transaction Capital Asset Liability

a) Converted private house into business premises

b) Paid creditors in cash

c) Sold a business car valued at sh 400,000 for sh

300,000
on credit
d) Sold goods on credit