HOME TRADE

PAST KCSE

1. Highlight four factors that may contribute towards the growth of business in the
country. (4mks)
2. State four uses of an invoice for a seller of goods. (4mks)
WAREHOUSING
PAST KCSE QUESTIONS PAPER 1
1. Outline four features of a bonded warehouse (4mks)
2. Highlight four ways in which a warehouse is useful to a trader. (4mks)
3. List three advantages of warehousing to a manufacturer. (3mks)
4. Outline four benefits that consumers get from a warehousing (4mks)
5. Outline four factors that a trader would consider in locating a warehouse. (4mks)
6. State four benefits that a government gets from a bonded warehouse. (4mks)
7. State four features of a bonded warehouse (5mks)
8. State four advantages of public warehouse to retailers. (4mks)
9. the table below contains descriptions relating to some types of warehouse. In the space provided,
write the type of warehouse to which each description refers.
Description Type
a) Used to store exports and imports
b) Anybody can rent spaces in it for storing goods temporarily.
c) Operated for the owner’s exclusion use.
d) Owned and operated by manufacturers and farmers.
10. In which four ways are consumers likely to suffer in a situation where there is no warehousing?

DEMAND AND SUPPLY

PAST KCSE QUESTIONS PAPER 1
1. Indicate by writing a demand or supply whether each of the following factors influence demand or
supply of a commodity. (5mks)
a) Changes in the prices of inputs
b) Change in tastes and preferences.
c) Changes in technology
d) Changes in outcomes
e) Changes on the price of other related products.
2. State the law relating to each of the following.
a) Demand
b) Supply
c) Demand and supply
3. In each of the following cases, indicate whether the supply will increase, decrease or remain
constant.
a) If the demand for coffee rises, the supply of tea is likely to
b) If the prices of cars fall, the supply of petrol as likely to
c) if the demand for beef increases the supply of wool is likely to
4. State four factors that may cause an increase in the supply of a product. (4mks)
5. Outline four factors that may cause a decrease in the quantity demand for a product (4mks)6.
Draw a demand curve based on the demand schedule below
Price (Sh) Quantity demanded
5 100
10 50
20 25
25 5 (4mks)
7. The following diagrams represent demand and supply of a product. (5mks)
a
d

a) Labels the cover (a) and (b)

b) State what is represented by point (c)
c) On the diagram, indicate equilibrium price (PE) and equilibrium quantity (QF).
8. State four factors that may lead to an increase in market supply of a product. (4mks)
9. The diagram below shows a shift in demand curve from d0d0 to d1d1.
d0 d1

Price

d0 d1
Quantity
Identify four factors that have made the demand curve to shift from d0d0 to d1d1
11. The table below illustrates the demand and supply of commodity.
Price Quantity demanded kg Quantity
Kg per month kg per month
15.00 80 20
20.00 70 30
25.00 60 40
30.00 50 50
35.00 40 60
40.00 30 70
From the table above, state
a) The nature of the demand for the commodity
 b) The nature of the supply of the commodity
c) The equilibrium price
d) The equilibrium quantity.
PAST KCSE QUESTION –PAPER 2
1. Outline four ways in which the price of goods and services can be determined in the market other
than through the forces of demand and supply curve.
FORMS OF BUSINESS
PAST KCSE PAPER 1
1. Highlight four advantages of large – scale business organization. (4mks)
2. In the spaces provided, indicate by writing true or false whether each of the following statements is
true or false about articles of association of a company. (5mks)

Statement True / false

a) It contains the activities the company is engaged in
b) Indicates the procedures to be followed in calling meetings
c) It contains details of election procedures
d) It indicates the liabilities of the shareholder
e) It contains the rights of each shareholders

3. State five advantages of sole proprietorship form of business (5mk)

4. Outline four benefits that Kenya may derive from multi – national operating in the country.
(4mks)
5. State four advantages of a partnership over a sole –proprietorship. (4mks)
6. Highlight benefits an investor gets by buying debentures. (4mks)
7. Highlight four benefits of joining a savings and credit co – operative society. (4mks)
8. State four advantages of a hawker over a shopkeeper. (4mks)
9. Highlight four factors that may have hindered the growth of co-operative movements in Kenya.
(4mks)
10. In the spaces provided below, indicate with a tick whether each of the following statements related
to preferences or ordinary shared. (3mks)

Statement preference shares Ordinary Shares

a) Represent ownership
b) Rate of divided is fixed
c) Has voting rights
d) Considered first in liquidation
e) Redeemable
f) May be cumulative

11. Outline four features of a sole proprietorship form of business organization (4mks)
12. Outline four advantages of large business organizations. (4mks)
13. Outline four features of trade credit as a source of finance (4mks)
14. State four reasons why a government may find it necessary to nationalize some industries.
(4mks)
15. In the spaces provided name the type of business organization described by each of the following
features.
Description Business Org

a) Each member has only one role

b) The business enjoys perpetual succession
c) Each member may act on behalf of the business
d) Formed by an Act of parliament
16. Outline four measures that can be taken to improve efficiency of parastatals in Kenya
(4mks)
17. Outline four ways in which a savings and credit co – operative society can raise capital.
(4mks)
18. Outline four features of a private company (4mks)
19. Outline four features of a private company (4mks)
20. List four sources of short – term finance for a business enterprise (4mks)
21. Highlight four disadvantages of cartels to consumers. (4mks)
22. Give five benefits of expanding a business (5mks)
23. Give four benefits of operating a small scale business over a large scale. (4mks)

PAST KCSE PAPER 2

1. Explain five principles under which cooperative societies should be managed (10mks)
2. Explain five problems that farmers encounter when they sell their produce through marketing
boards. (10mks)
3. Explain five sources of short term finances available to a business organization.
(10mks)
4. Currently the government of Kenya is involved in privatizing public corporations. Explain five
reasons that could make the government retain some of the corporations.
(10mks)
5. Describe five disadvantages of running a business as a sole proprietor (10mks)
6. A group of businessmen from town x have formed a cartel. What reason could have led them to take
such an action (10mks)
7. Explain five reasons why a public limited company may prefer to raise finance through issue of
ordinary shares instead of debentures. (10mks)
8. Outline the differences between a private limited company and a public corporation
(10mks)
9. In what ways do multinational corporations differ from locally owned firms.(10mks)
10. Discuss the factors that may influence the growth of a business unit. (12mks)
11. Explain the factors that make it difficult for many Kenyan to purchase houses through building
societies. (6mks)
12. Explain the six benefits that may account to a business organization which expands the scale of its
operation. (12mks)
13. Draw five differences between public limited company and a partnership form of a business.
(10mks)
14. Describe the problems associated with a sole proprietorship form a business (10mks)
15. Explain six benefits that a company would get by raising capital through sale of ordinary shares
(12mks)
16. Wafula who recently retired would like to invest his retirement benefits in either of tow business
options. Explain five factors that Wafula should consider in choosing the business to invest.
(10mks)
17. Outline 4 reasons why the government may decide to nationalize some business enterprises.
(10mks)