Summary

• Description:

  The MS Word document comprises KALA Trial Business Studies Paper 1 2026 Mock Exam with Marking Scheme. The PDF version is also available upon your request. The marking scheme is towards the end of the file.

  It was a KCSE Business Studies Paper 1 (565/1) mock examination prepared for secondary school candidates.

  This document tests essential concepts across business commerce, basic accounting procedures, macroeconomics, government taxation principles, and market structures, offering answers for reliable exam evaluation.

  • Month Administered: July 2026
  • Duration: 2 Hours
  • Number of Questions: 25 Questions (Questions 1 - 25)
  • Structure: Compulsory short-answer questions and structured computational accounting/economic problems

  It covers the following topics:

  • Home trade: trade documents and commercial transactions
  • Price theory: demand and supply mathematical functions and equilibrium laws
  • Business finance: comparative differences between equity shares and debentures
  • International trade: reasons and economic rationale for government trade restrictions
  • Demographic economics: optimum population, underpopulation, and production challenges
  • Marine insurance: identification of hull, voyage, port, floating, and composite policies
  • Bookkeeping and accounting: circumstances for ledger adjustments using the general journal
  • Public finance: cannons and principles of taxation for county and national revenue
  • Production economics: factors of production and their respective economic rewards
  • Economic development: challenges of foreign direct investment dominance and development barriers
  • Financial accounting computations: calculating gross profit margin, net profit, and rate of stock turnover (ROSTO)
  • Business environment: external macro-environmental factors leading to firm closure
  • Financial position: classification of short-term and long-term liabilities
  • Office administration: criteria for selecting and procuring office machinery and equipment
  • Entrepreneurship: personal attributes and behavioral characteristics of successful entrepreneurs
  • Product markets: monopolistic competition, pure monopoly, oligopoly, and perfect competition
  • Product promotion: personal selling methods and operational disadvantages
  • Basic economic concepts: scarcity, utility, value, and characteristics of economic resources
  • Banking: functions of the Central Bank of Kenya as a banker to the national government
  • Accounting ledgers: posting transaction accounts to sales, nominal, private, and general ledgers
  • Transport economics: units of carriage and transport ways
  • Government and business: policy objectives for balanced regional industrial decentralization
  • Macroeconomic indicators: basket of commodities used in determining Consumer Price Index (CPI)
  • Balance sheet equation: computation of closing capital using initial capital, additions, profits, and drawings
• File Size:

  205.19 KB
• Length:

  9 pages
• Category:

  Mock Past Papers
• Level:

  Form 4
• Subject:

  Business Studies
• Posted By:

  Caleb_Peter

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