x̄ - > KCSE Business Studies Topical Question Bank (1996–2024)

Topical Compilation — Questions, Answers & Marking Tips

1. Business Environment

Sample KCSE 2016 – Paper 1 Question:

State four external factors that may influence the operations of a business.
Answer: Economic conditions, political stability, technological changes, and legal framework.

2. Forms of Business Units

Sample KCSE 2019 – Paper 1 Question:

Outline four features of a public limited company.
Answer: Separate legal entity, limited liability, share transferability, and perpetual succession.

3. Business Finance

Sample KCSE 2018 – Paper 2 Question:

Explain five factors considered when choosing a source of finance.
Answer: Cost of finance, repayment period, purpose of funds, flexibility, and amount required.

4. Office Practice

Sample KCSE 2015 – Paper 1 Question:

List four functions of the filing system in an office.
Answer: Safe record storage, easy retrieval, reference for future decisions, and efficient office organization.

5. Entrepreneurship

Sample KCSE 2017 – Paper 2 Question:

Describe four characteristics of a successful entrepreneur.
Answer: Innovative, risk-taker, visionary, and persistent.

6. Marketing

Sample KCSE 2020 – Paper 1 Question:

State four functions of intermediaries in the distribution chain.
Answer: Bulk breaking, storage, financing, and market information provision.

7. Insurance

Sample KCSE 2014 – Paper 1 Question:

State the principle violated when an insured person exaggerates the extent of a loss.
Answer: Utmost good faith (Uberrimae fidei).

8. Transport

Sample KCSE 2013 – Paper 2 Question:

Explain four advantages of air transport over road transport.
Answer: Faster, suitable for perishable goods, minimal physical barriers, and international connectivity.

9. Communication

Sample KCSE 2010 – Paper 1 Question:

List four characteristics of effective communication.
Answer: Clarity, accuracy, conciseness, and feedback.

10. Demand and Supply

Sample KCSE 2021 – Paper 2 Question:

Explain four factors that may cause a decrease in demand for a commodity.
Answer: Fall in consumer income, unfavourable tastes, rise in price of complements, and expectation of future price fall.

11. National Income

Sample KCSE 2009 – Paper 1 Question:

State four methods used to measure national income.
Answer: Income approach, output approach, expenditure approach, and value-added method.

12. Public Finance

Sample KCSE 2012 – Paper 1 Question:

Outline four reasons why the government imposes taxes.
Answer: Revenue generation, income redistribution, discourage harmful products, and control inflation.

KCSE Business Studies Topical Question Bank (1996–2024) — Structured by Topic | Answers follow official KNEC style | Layout modelled after Teacher.co.ke, Shulefiti, ReviseKenya