F O R M T H R E E K enya C ertificate of Secondary E ducation
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1 N a m e : A d m. N o D a t e : C la ss: /1 FO R M 3 B U S I N E S S S T U D I E S P A P E R 1 T I M E : 2 H O U R S T R I A L FO R M 3 B U S I N E S S S T U D I E S P A P E R 1 T I M E : 2 H O U R S F O R M T H R E E K enya C ertificate of Secondary E ducation I N S T R U C T I O N S T O C A N D I D A T E S : W r ite y o u r n a m e and you r A d m is s io n N um ber in the spaces provided above. W r ite th e date of exam ination and c la ss in the spaces provided above. A nsw er a ll the questions in the spaces provided. All answ ers should be w ritten in English. This paper consists of 9 printed pages. C andidates should check the question paper to ascertain that all the pages are printed as indicated and that no questions are m issing. F O R E X A M I N E R S U S E O N L Y : - Q u e s tio n Sco re Q u e s tio n Sco re T O T A L M A R K S 1. O utline 4 w ays in w hich com m ercial attaches m ay prom ote trade T U R N O V E R
2 betw een their country and other countries. (4 m ark s) 2. A lu c ra tiv e m anufacturing firm has been constantly releasing toxic w astes into the neighbourhood. O utline four m easures you can take to stop the firm from such m alpractice. (4 m ark s) 3. O utline four factors that should be considered in the choice of a m eans for transporting perishable goods (4 m ark s) 4. O utline four circum stances under w hich face to face com m unication m ay be ineffective (4 m a rk s) 5. H ighlight four benefits that w ould accrue to a firm located near other existing firm s (4m ks) Page 2
3 6. K A M B O ow ned a m otor vehicle valued at sh.1,000,000. H e com prehensively insured the car at sh.800,000. The m otor vehicle w as involved in an accident and declared a w rite off. C alculate the am ount K A M B O should get from the insurer ( 4 m ark s) 7. State four reasons w hy the governm ent should create an enabling environm ent for investors (4 m a rk s) (iii).. 8. S ta te fo u r im portances of interm ediaries in th e c h a in o f d istrib u tio n (4 m ark s) 9. H ighlight four challenges that a person m ay encounter w hen using a cellphone (m obile phone) (4 m ark s) Page 3
4 10. T he diagram below represents the relationship betw een population and incom e per capita S tate w hat is represented by P and S axes and letters R and Q (4 m ark s) 11. T he balances given below relate to K orir T raders for the year ended 31 st D ecem ber Sh. C a p ita l? 2 year bank loan 230,020 C re d ito rs 95,200 F ixed assets 480,000 C urrent assets 145,220 P repare a balance sheet as at 31 st D ecem ber 2013 (5m ks) Page 4
5 12. Identify the types of w holesalers described in the statem ents given below (4 m ark s) a) A w holesaler w ho t r a d e s i n m a i z e g r a i n o n l y.. b) A w holesaler w ho supplies goods to m ost of the traders in K erugoya, M w ea and Sagana in K irinyaga C o u n t y.. c) A w holesaler w ho buys tom atoes from farm ers in rural areas and sells the sam e to other w holesalers i n u r b a n a r e a s. d) A w holesaler w ho trades in a w ide variety of hum an m edicine 13. O n 2 nd N ovem ber 2010, Josphat received an invoice for K sh.12,000. T erm s of paym ent w ere trade discount 5% and cash discount 10%, if paym ent is m ade w ithin 30 days. D eterm ine the am ount paid if paym ent w as m ade on 28 th N ovem ber ( 4 m ark s) Page 5
6 14. The follow ing transactions w ere extracted from the books of Sarah Traders for the m onth of M arch M arch 10: Purchased goods on credit w orth K shs. 200,000 from Salim Traders. M arch 25: Sold goods on credit w orth K shs.420,000 to Shah Traders. R ecord the above transactions in th e re levant ledger accounts (4 m ark s) 15. H ighlight four circum stances under w hich the capital of a business m ay change (4 m ark s) Page 6
7 16. O utline four features of liners in sea transport (4 m ark s) 17. Fatum a operates a m atatu business. State four factors in the internal environm ent that m ay influence the business (4 m ark s) 18. S ta te 4 fe a tu re s o f m o n o p o listic c o m p e titio n (4 m ark s) 19. A part from selling shares. O utline 4 sources of finance for a public lim ited com pany (4 m ark s) 20. There has been a decline in the dem and for w ooden furniture. State 4 factors that m ay have caused th is tre n d. (4 m ark s) Page 7
8 21. K aranja Ltd had the follow ing ledger account balance as at 31 st M ay D e ta ils shs. P urchases 3,880 S ales 3,350 R eturns outw ards 150 R eturns inw ards 160 D. S im o la (D e b to r) 2,550 P. M w endo (C reditor) 3,100 W ages 800 C ash 960 C a p ita l 1,750 R equired: P repare K aranja s trial balance as at 31 st M ay 2015 (5 m arks) 22. S ta te fo u r m erits of prom oting products through personal selling (4 m ark s) Page 8
9 23. C om plete the table below by indicating the relevant account to be debited and credited. (3 m ark s) S ta tem en t A c c o u n t t o d e b i t A ccou n t to cred it a) A debtor paid by cheque b) B ought goods on credit c) D raw cash fro m b an k fo r o ffice u se 24. H ig h lig h t four essentials of a good w arehouse ( 4 m ark s) 25. O utline 3 features of econom ic resources (3 m ark s) (iii).. Page 9
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