KCSE Business revision

Discuss five challenges that small-scale traders in your country are facing in their attempt to grow their businesses. (10 marks)

Outline four factors that can cause a change in the supply of a commodity. (4 marks)

Identify four factors that a business owner should consider when choosing the best method of promoting products. (4 marks)

(c) The following information was extracted from the books of Mwema Traders for the year ended 31st December 2025. Prepare a balance sheet as at that date. (5 marks)
Capital:Sh. 2,000,000
Machinery: Sh.1,000,000
Bank Overdraft: Sh.400,000
Creditors:Sh. 300,000
Cash in Hand: Sh.100,000
Debtors:Sh. 600,000
Stock: Sh.1,000,000

Explain five disadvantages that a country may suffer out of international trade (10 mks).

~Hinders growth of local industries
When people buy more imported goods instead of locally produced goods, local industries lose customers and may fail to grow.
~Unhealthy competition
Foreign firms may produce goods more cheaply or in large quantities, making it hard for local industries to compete, which may lead to closure and unemployment.
~Unfavourable balance of trade
A country may import more goods than it exports, causing more money to leave the country than it earns.
~Imported inflation
If prices of imported goods rise in foreign countries, the prices in the importing country also increase, lowering the standard of living.
~Importation of harmful or unwanted goods
Some imported goods may negatively affect people’s health, culture, or lifestyle.


Revision.

State the type of advertising that each of the following statements relate to:
(4mks)

~Persuade consumers to buy a product
~Promotes a particular brand of a product
~Create awareness about a product
~Promotes the name of the manufacturer


revision

Kavetsa had the following balances on 1st January 2010:
Motor vehicle
Sh.210,000
Debtors
Sh.20,000
Cash
Sh.90,000
Stock
Sh.25,000
Creditors
Sh.40,000
Cash at Bank
Sh.50,000
During the month, the following transactions took place :
2010:
January 4: paid sh 12,000 to creditors by cheque
‘’
13:
purchased stock worth sh 18,000 on credit
‘’
26 : deposited sh 6,000 into the business bank account from cash till
Record the above transactions in the relevant ledger accounts and balance them off (10mk)


revision

For each of the following transactions, state the account to be debited and the account to be
credited.
(4mks)

~Paid a creditor from private source

~Brought in cash from private source

~Withdrew cash for personal use

~Bought goods and paid by cheque


revision

Highlight four demerits of using machines in carrying out office activities.
(4mks)
………………………………………………………………………………………….....................................................................


revision

The bodaboda motorcycles are very popular both in urban and rural environment. Highlight four
disadvantages of this method of transport. (4mks)
a) Causes noise pollution
b) Over speeding that my result to accidents or death
c) Affected by extreme weather conditions
d) Carries limited capacity of goods
e) Not suitable for long distances.
f) Not suitable for bulky or heavy goods
g) Some results in social evils e.g theft


revision

With an aid of a diagram, show what happens to the equilibrium price and quantity when demand increases
and quantity supplied remains constant.
(8mks)


revision