KCSE2022BUSI

NESSSTUDI
ESP1MARKI
NGSCHEME
1. Compone
ntsofBus
ine
ssSt
udi
es

St
ate
ment Compone
nt

a Sy
ste
mat
icwa
yofr
ecor
dingbus
ine
sst
rans
act
ionsf
orde
cis
ionma
king Ac
count
ing Noma r
k
f
orwrong
b Thes
tudyoft
radea
nda
idst
otr
ade Comme
rce s
pel
li
ngs
c Thest
udyofhowhuma
nbe
ing
sst
ri
vet
osa
tis
fyt
hei
rendl
esswa
ntsus
ingt
hea
vai
la
ble Ec
onomi
cs
s
carc
eres
ource
s
4x
1=4
d Theproc
essofi
denti
fy
ingabus
ine
ssoppor
tuni
tya
ndg
ett
ingne
ces
sar
yre
sour
cest
ost
art Ent
repr
ene
urs
hip
andr
unabus i
ness

2. Li
mit
ati
onsofdi
rec
ttr
ade(
produc
ert
ocons
ume
r)

i
. The
rei
shi
ghe
rdi
st
ri
but
ionc
ost
s

i
i. Le
ss/
li
mit
edMa
rke
t/
cus
tome
rs

i
ii
. Pr
oduc
erma
ynotpr
oduc
esur
plusg
oodsduet
oli
mit
edma
rke
t

i
v. Pr
oduc
erma
ynota
ffor
dla
rgewa
rehous
esa
ndot
hers
tor
agef
aci
li
ti
est
oenha
ncec
ont
inuouspr
oduc
ti
on Any4x
1=4

v
. Cons
ume
rsma
yge
tpoorqua
li
tyofpr
oduc
ts

3. SumI nsur
edxLoss Corr
ect
Compe
nsa
tion= √ ans
wergi
ve
v
alueofprope
rty
3ma r
ks
800,000x800,
000
Compe
nsa
tion= √
1,000,
000
Any1x
1
Compe
nsa
tion=Ks
h.640,
000 √
(
b)-
Kai
mos
iTr
ade
r dunde
sha rins
ure
dhi
shous
e.

-
Kai
mos
iTr
ade
rsha
dins
ure
dforKs
h.800,
000i
nst
eadofKs
h.1,
000,
000

4. Ci
rcul
arf
lowofi
ncome

a
)Fi
rms

b)
Hous
ehol
ds

c
)Pr
ovi
si
onf
orf
act
orsofpr
oduc
ti
on 4x
1=4

d)
Pay
mentf
org
oodsa
nds
erv
ice
s

5. Book
sofOr
igi
nale
ntr
y

St
ate
ment Bookofor
igi
nale
ntr
y Awardfor
ot
her
a Boug
htg
oodsonc
redi
tfr
omKa
mauwhol
esa
ler
s Pur
cha
sesJ
our
nal namesf
or
j
ournal
s
b Ki
bis
uade
btor
,r
etur
nedg
oods Sa
lesRe
tur
nsJ
our
nal
4x
1=4
c Ca
shs
ale
s Ca s
hRe c
eipt
Journa
l/
Ca s
hbook

d Sol
danol
dtr
act
oronc
redi
t Ge
ner
alJ
our
nal

Di
scl
ai
mer
:Notof
fi
ci
alma
rki
ngs
che
me,Pr
epa
redbyMur
igiMi
cha
el||x
mur
igi
@gma
il
.c
om||mur
igi
.x
yz
 KCSE2022BUSI
NESSSTUDI
ESP1MARKI
NGSCHEME
6. Ci
rcums
tanc
esunde
rwhi
chCWOwoul
dbepr
efe
rre
d.

i
) Whe
ret
hebuy
eri
sne
wtot
hes
ell
er.

i
i) Whe
ret
hebuy
er’
scr
edi
twor
thi
nes
sisi
ndoubt
.
Any4x
1=4
i
ii
)Whe
reCWOi
sthepol
ic
yoft
hebus
ine
ss.

i
v)Whe
ret
hes
ell
eri
sope
rat
ingama
ilor
ders
tor
ebus
ine
ss.

v
) Whe
ret
hes
ell
erwa
ntst
oav
oidhi
ghc
ostofde
btc
oll
ect
ion.

v
i)Whe
ret
hes
ell
erne
edswor
kingc
api
tal
.

7. Sour
cesofg
ove
rnme
ntr
eve
nue(
othe
rtha
nta
x)

(
i
) Fi
nesf
romc
our
ts

(
i
i) Li
cens
efe
es

(
i
ii
) Bor
rowi
ngl
oans

(
i
v) Gr
ant
sandf
ore
igna
id

(
v) Re
nta
ndr
ate
sforus
eofg
ove
rnme
ntpr
ope
rty 3x
1=3

(
vi
) Di
vi
dendsa
ndpr
ofi
tsf
romg
ove
rnme
nti
nve
stme
nts

(
vi
i)Pr
oce
edsf
roms
aleofg
ove
rnme
ntpr
ope
rty

(
vi
ii
)Int
ere
ste
arne
dfr
oml
oansa
dva
nce
dbyg
ove
rnme
nt

8. Wa
ysi
nwhi
che
conomi
cenv
ironme
ntma
yle
adt
obus
ine
sss
ucc
ess
.

i
.Inc
rea
sei
ncons
ume
rsi
ncomei
ncr
eas
est
hei
rpur
cha
singpowe
r

i
i.De
cre
asei
ncor
por
ati
ont
axe
ncour
agebus
ine
sse
stopr
oduc
emor
e

i
ii
.Inc
rea
sei
npe
rsona
linc
omet
axi
ncr
eas
esc
ons
ume
rspur
cha
singpowe
r

i
v.De
cre
asei
nint
ere
str
ate
sens
ure
scons
ume
rsha
vemone
ytos
pendong
oodsa
nds
erv
ice
s. Any4x
1=4

v
.Lowr
ateo
finf
la
tione
ncour
age
scons
ume
rst
obuymor
e

9. Ci
rcums
tanc
esunde
rwhi
chf
ir
mma
ybel
oca
tedne
art
hema
rke
t Mustuse
;
i
f,wher
e,
i
. Whe
rei
tisc
hea
pert
otr
ans
por
tfi
nis
hedg
oodst
hanr
awma
ter
ial
s whenorin
i
i. I
ftheg
ove
rnme
ntr
equi
ress
o. cas
e

i
ii
. Whe
rema
rke
tisc
onc
ent
rat
edi
nonea
rea
.

i
v. Whe
ret
her
eisne
edt
osa
veont
rans
por
tat
ionc
ost
soff
ini
she
dgoods
. Any4x
1=4

v
. Whe
ret
hef
ini
she
dgoodsa
rehi
ghl
ype
ris
habl
e.

v
i. Whe
ret
hef
ini
she
dgoodsa
rehe
avya
ndbul
ky.

10. Me
ani
ngoft
ermi
nTr
endsofBus
ine
ssUni
ts

i
. Hol
dingc
ompa
ny-
Iti
sac
ompa
nyt
hata
cqui
resf
if
tyonepe
rce
nts
har
esormor
eofa
not
herc
ompa
ny.
Di
scl
ai
mer
:Notof
fi
ci
alma
rki
ngs
che
me,Pr
epa
redbyMur
igiMi
cha
el||x
mur
igi
@gma
il
.c
om||mur
igi
.x
yz
 KCSE2022BUSI
NESSSTUDI
ESP1MARKI
NGSCHEME
i
i. Ama
lga
mat
ion-
Thi
siswhe
ret
woormor
ebus
ine
sse
sco
mbi
nea
ndf
ormaonene
wbus
ine
ss.

i
ii
. Absor
pti
on-
Thi
siswhe
reonebus
ine
ssbuy
sal
las
set
sofa
not
herbus
ine
ssa
ndt
heboug
htbus
ine
ssc
eas
est
o
ex
ist
.

i
v. Ca
rte
l-I
tisag
roupofr
ela
tedc
ompa
nie
stha
tag
reet
owor
ktog
ethe
rtoc
ont
rolt
hei
rpr
oduc
ti
ona
ndma
rke
t.

4x
1=4

11. Ma
rke
tSt
ruc
tur
es

Condi
ti
on Ma
rke
tst
ruc
tur
e

a Thef
ir
mist
hei
ndus
tr
y Monopol
y

b Buye
rsandse
ll
ersha
vec
ompl
et
eknowl
edg
eaboute
nti
rema
rke
tbutc
annot Pe
rfe
ctc
ompe
ti
ti
on
i
nfl
uenc
ethemarket
. mark
et

c Fe
wla
rgef
ir
mst
hatdomi
nat
ethema
rke
t Ol
ig
opol
y
4x
1=4
d Compr
is
edofma
nys
ell
ersofdi
ff
ere
nti
ate
dpr
oduc
ts Monopol
is
ti
c
c
ompeti
ti
on

12. Ca
use
sofc
ost
-pus
hinf
lat
ion

i
.Inc
rea
seofwa
ger
atebyt
heg
ove
rnme
nt/I
ncr
eas
einwa
gesa
nds
ala
rie
s

i
i.I
ncr
eas
eini
ndi
rec
tta
xess
ucha
sVAT

i
ii
.Inc
rea
seofpr
ofi
tma
rgi
nbybus
ine
sse
s

i
v.I
ncr
eas
einc
ostofi
nput
s

v
.Re
duc
ti
on/
wit
hdr
awofs
ubs
idi
esbyt
heg
ove
rnme
nt

13. Re
asonsf
ore
thi
calpr
act
icei
nbus
ine
ss

i
. Toe
nsur
efa
irc
ompe
ti
ti
oni
nbus
ine
ss

i
i. Topr
ote
cte
nvi
ronme
nt/
avoi
denv
ironme
nta
lde
gra
dat
ion/
pol
lut
ion

i
ii
. Toe
nsur
ethe
rei
snodi
scr
imi
nat
ioni
nbus
ine
ss

i
v. Toe
li
mina
teus
eofunf
ai
rme
ansofa
chi
evi
ngbus
ine
ssobj
ect
ive
sli
kes
ell
ingunde
rwe
ightpr
oduc
ts. Any

v
. Topr
ote
ctc
ons
ume
rsf
rome
xpl
oit
ati
on. 4x
1=4

v
i. Toe
nsur
eri
ght
sofwor
ker
s/
empl
oye
esa
reuphe
ld

14. Ef
fec
tsoft
rans
act
iononBa
lanc
eShe
etTot
als

Tr
ans
act
ion Ef
fec
t

a
) Boug
htof
fi
cef
urni
tur
einc
ash Noe
ffe
ct

b) De
pos
it
eds
omemone
yint
othebus
ine
ssba
nka
ccountf
rompe
rsona
lsa
ving
s I
ncr
eas
e

c
) Pur
cha
sedg
oodsonc
redi
t I
ncr
eas
e

d) Wi
thdr
ewmone
yfr
omt
heba
nkt
opa
ythec
hil
d’
shos
pit
albi
ll De
cre
ase 4x
1=4

15. Be
nef
it
sofpr
oduc
tpr
omot
iont
opr
oduc
er.

Di
scl
ai
mer
:Notof
fi
ci
alma
rki
ngs
che
me,Pr
epa
redbyMur
igiMi
cha
el||x
mur
igi
@gma
il
.c
om||mur
igi
.x
yz
 KCSE2022BUSI
NESSSTUDI
ESP1MARKI
NGSCHEME
i
. I
tre
mindsc
ust
ome
rsa
boute
xis
tenc
eofapr
oduc
tint
hema
rke
the
ncee
ncour
agi
ngt
hemt
ocont
inuebuy
ing
.

i
i. I
tpe
rsua
despot
ent
ialc
ust
ome
rst
obuypr
oduc
tswhowoul
dha
veot
her
wis
enotboug
ht.

i
ii
. I
tinf
ormspot
ent
ialc
ust
ome
rst
hatt
hepr
oduc
tex
isti
nthema
rke
tandwhe
ret
ofi
ndi
twhi
chi
ncr
eas
esi
tss
ale
.

i
v. I
tinf
ormsc
ust
ome
rsa
boutc
hang
einpr
oduc
tfe
atur
eswhi
che
nabl
est
hemt
ocont
inueus
ingi
t.

v
. Somemet
hodsofproductpromot
ions
ucha
spe
rsona
lse
ll
ingc
rea
teag
oodr
ela
tions
hipwi
thbuy
erswhi
ch Any4x
1=4
mayle
adt
orepeatpurchase
.

16. Ty
pesofune
mpl
oyme
nt

St
ate
ment Ty
peofune
mpl
oyme
nt

a
) Cause
dbycha
ngeinpr
oduc
ti
onpat
ter
ndur
ingt
hey
ear Se
asona
l
i
nfl
uence
dbywea
therc
ondi
ti
ons
.

b) Oc
cur
sre
pea
tedl
yats
imi
la
rti
mes Cy
cli
cal
4x
1=4
c
) Thenumbe
rofpe
opl
eempl
oye
dex
cee
dst
hos
etha
tar
ere
qui
red Di
sgui
sed/
hidde
n

d) Fir
msa r
ewil
li
ngtoempl
oyallpe
oplea
tprev
ail
ingwa
ger
ate Vol
unt
ary
/Re
alwa
ge
butjobs
eek
ersar
enotwi
ll
ingtota
keupthej
obs.

17. Di
ff
ere
nce
sbe
twe
enpr
ima
rya
nds
econda
rywa
nts

Pr
ima
rywa
nts Se
conda
rywa
nts

a
) Onec
annotl
iv
ewi
thoutt
hem Onec
anl
iv
ewi
thoutt
hem

b) The
yca
nnotbepos
tpone
d The
yca
nbepos
tpone
d Any

c
) The
yar
esa
tis
fi
edbe
for
ese
conda
rywa
nts The
yar
esa
tis
fi
eda
fte
rpr
ima
rywa
nts 4x
1=4

d) The
yar
euni
ver
sal The
yar
enotne
ede
dbye
ver
yone

e
) The
yar
efe
ltne
eds The
yar
enotf
el
tne
eds

f
) The
yar
eba
sicf
orhuma
nsur
viv
al Ar
ene
ede
dtoma
kel
if
emor
ecomf
ort
abl
e

18. Ne
twor
thofaBus
ine
ss(
Capi
talI
nve
ste
d) Sala
rie
sa r
e
expens
es
Ne
twor
th/
Capi
talI
nve
ste
d=As
set
s-Li
abi
li
ti
es√ notli
abil
it
y
Ne
twor
th=(
40,
000+60,
000+12,
000+16, )
000-(
24,
000+18,
000)√ 4x
1=4
Ne
twor
th=128,
000-
42,
000√

Ne
twor
th=Ks
h.86,
000√

19. Re
asonswhyg
ove
rnme
ntpr
ote
ctc
ons
ume
rs.

i
.Toe
nsur
etha
tpr
oduc
tsof
fe
redf
ors
alea
reofg
oodqua
li
ty.

i
i.Toe
nsur
etha
tpr
oduc
tsof
fe
redf
ors
alea
reofr
ightqua
nti
ty.
Di
scl
ai
mer
:Notof
fi
ci
alma
rki
ngs
che
me,Pr
epa
redbyMur
igiMi
cha
el||x
mur
igi
@gma
il
.c
om||mur
igi
.x
yz
 KCSE2022BUSI
NESSSTUDI
ESP1MARKI
NGSCHEME
i
ii
.Toe
nsur
ehe
alt
hst
anda
rdsa
rema
int
aine
dforg
oodhe
alt
hofc
ons
ume
rs.

i
v.Toe
nsur
edc
ons
ume
rsa
renotov
erc
har
ged.

v
.Toe nsur
ebuil
dingc
ons
tr
uct
iona
nds
afe
tys
tanda
rdsa
rema
int
aine
dtoa
voi
dlos
sofl
iv
esa
ndpr
ope
rtyi
nca
se
t
heycoll
aps
e.
Any
v
i.Topr
ote
ctc
ons
ume
rsf
romf
al
sea
dve
rti
si
ngbyt
rade
rswhoma
ygi
vef
al
sei
nfor
mat
ion.
4x
1=4
v
ii
.Topr
ote
ctc
ons
ume
rsf
roms
aleofha
rmf
ulpr
oduc
tst
hatma
yadv
ers
elya
ffe
ctt
hei
rhe
alt
h.

v
ii
i.Topr
ote
ctc
ons
ume
rsa
gai
nstbr
eac
hofc
ont
rac
tfr
omt
rade
rswhoma
yfa
ilt
ohonourt
ermsa
ndc
ondi
ti
onsofs
ale
.

i
x.Toensur
etrade
rsdonothoa
rdpr
oduc
tsc
aus
inga
rti
fi
ci
als
hor
tag
e/e
nsur
ecommodi
ti
esa
rer
eadi
lya
vai
la
blet
o
cons
umers.

20. Fi
nanc
iali
nst
it
uti
ons

St
ate
ment Ty
pe

a
) Opera
tesfi
xedde
pos
it
,sa
ving
sandc
urr
ent Comme
rci
alba
nks
ac
counts
.
Acc
ept
b) Adv
anc
esl
oansi
npr
opor
ti
ont
oone
’ss
avi
ngs Cre
dita
ndSa
ving
sCo-
ope
rat
iveSoc
iet
ies SACCOS
(
SACCOS) i
n(b)

c
) Se
ll
shous
est
hroug
hmor
tga
ges Hous
ingFi
nanc
eCompa
nie
s

d) Off
ersf
inanc
etos
tar
tore
xpa
ndi
ndus
tr
ial De
vel
opme
ntFi
nanc
eins
ti
tut
ions
ent
erpr
ise
s
4x
1=4

21. Be
nef
it
sofe
lec
troni
cfi
li
ng

i
. I
tenha
ncequi
ckr
etr
iev
alofi
nfor
mat
ion

i
i. I
tise
conomi
cal
/s
ave
sonc
ost
sasf
ewf
aci
li
ti
esa
rene
ede
d.

i
ii
. I
tca
nbeus
edt
ost
orel
arg
eamountofi
nfo
rma
tion/
wides
tor
age

i
v. I
tise
nvi
ronme
nta
lfr
iendl
y

v
. I
tismor
efl
exi
blea
syouc
anupda
tea
ccor
dingt
one
edsoft
heor
gani
zat
ion. Any4x
1=4

v
i. I
tsa
vesonl
aboura
sfe
wwor
ker
sar
einv
olv
ed.

v
ii
. I
tre
duc
espa
perwor
k.

v
ii
i. I
tiss
afe
rasf
il
esc
anbee
ncr
ypt
edwi
thpa
sswor
ds.

i
x. I
tsa
vesonof
fi
ces
pac
easf
il
esa
res
ave
del
ect
roni
cal
ly
.

22. Be
nef
it
sKe
nyag
etbybe
ingme
mbe
rofEAC

i
. Ac
ces
stowi
dema
rke
tforhe
rpr
oduc
ts.

i
i. He
rci
ti
zenc
ang
etse
mpl
oyme
ntoppor
tuni
ti
esf
romme
mbe
rsofEAC

i
ii
. Encoura
gesspe
cial
iza
tiona
sKe ny
ac a
nc onc
ent
rat
einpr
oduc
ingpr
oduc
tsl
ik
ecof
fe
easot
herme
mbe
rs
conce
ntrat
einproduci
ngothe
rproduct
s.
Any4x
1=4
Di
scl
ai
mer
:Notof
fi
ci
alma
rki
ngs
che
me,Pr
epa
redbyMur
igiMi
cha
el||x
mur
igi
@gma
il
.c
om||mur
igi
.x
yz
 KCSE2022BUSI
NESSSTUDI
ESP1MARKI
NGSCHEME
i
v. Pr
omot
ionofpe
acea
ndg
oodr
ela
tions
hipa
mongme
mbe
rsofEAC.

v
. Ca
nge
tpr
oduc
tss
hedoe
snotpr
oduc
eatl
owe
rcos
tsf
romme
mbe
rsofEAC.

23. Fi
nanc
ialr
ati
os

Gr
osspr
ofi
t 4x
1/2=2
)Ma
a rgi
n= √
sa
les
40 Gr
ossprof
it
= √
100 270,000

40x
270,000
Gr
osspr
ofi
t= √
100

Gr
osspr
ofi
t=Ks
h. 000√
108,

b)Sa
les=COGS+Gr
ossPr
ofi
t
2x
1/2=1
COGS=270,
000- 000√
108,

COGS=Ks 000√
h.162,

COGS
c
)ROSTO= √
Avg
.St
ock
4x
1/2=2
162,000
6= √
Avg.Stoc
k

162,
000
Av
g.St
ock= √
6

Av
g.St
ock=Ks
h. 000 √
27,

24. Re
asonsf
orl
oca
tingbonde
dwa
rehous
esa
tbor
derpoi
nts
.

i
. Toe
asec
oll
ect
ionofc
ust
omdut
ie
sbyt
heg
ove
rnme
nt.

i
i. Toe
asei
nspe
cti
onofi
mpor
tedpr
oduc
tsbyt
heg
ove
rnme
nt.

i
ii
. Toe
aser
e-e
xpor
tat
ionofg
oodswhe
nne
ces
sar
y.

i
v. Toe
asei
nspe
cti
onofg
oodsbe
for
ethe
yar
eex
por
ted. Any

v
. Tos
aveont
rans
por
tat
ionc
ost
stot
hebonde
dwa
rehous
es. 4x
1=4

25. Se
rvi
cesof
fer
edbyr
eta
ile
rst
ocons
ume
rs.

i
. The
yof
fe
rcr
edi
tfa
cil
it
ie
stoc
ons
ume
rs.

Di
scl
ai
mer
:Notof
fi
ci
alma
rki
ngs
che
me,Pr
epa
redbyMur
igiMi
cha
el||x
mur
igi
@gma
il
.c
om||mur
igi
.x
yz
 KCSE2022BUSI
NESSSTUDI
ESP1MARKI
NGSCHEME
i
i. The
yof
fe
raf
ter
-sa
les
erv
ice
ssuc
hast
rans
por
tat
ion

i
ii
. The
yst
ockv
ari
et
yofg
oodsa
nds
erv
ice
s Any

i
v. The
yof
fe
radv
icea
ndi
nfor
mat
iona
boutt
hepr
oduc
t 4x
1=4

v
. The
ybr
eakbul
k/di
vi
dec
ommodi
ti
est
osma
llqua
nti
ti
esc
onv
eni
entt
ocons
ume
rs.

v
i. The
yav
ailc
ommodi
ti
est
opl
ace
sconv
eni
entf
orc
ons
ume
rs.

ANALYSI
SOFTHEPAPERBYQUESTI
ONSPERFORM

FORM NUMBEROFQUESTI
ONS PERCENTAGE% NB:Thisi
sun-of
fi
ci
almark
ingsche
mef or565/
1KCSE2022e
xam.Er
ror
sand
omi
ssi
onsaret
heref
oree
xpect
ed.Thankyou.
1 9 36
Pr
epa
redBy
;Bus
ine
ssGur
uM.
M.Mi
cha
el
2 5 20

3 5 20

4 6 24

Di
scl
ai
mer
:Notof
fi
ci
alma
rki
ngs
che
me,Pr
epa
redbyMur
igiMi
cha
el||x
mur
igi
@gma
il
.c
om||mur
igi
.x
yz