BUSINESS STUDIES

2 HOURS
GITHUMU BOYS HIGH SCHOOL
NAME:………………………………………………………..ADM…………..CLASS……………..
FORM TWO MIDTERM ONEN EXAMINATION 2024
Answer all the questions
1.Identify the component of business studies described in each of the following statement

(i)Systematic way of recording business transcaction for decision making………………………………...

(ii)The study of trade and aids to trade………………………………………………………………………………………..
(iii)The study of how human being strive to satisfy their endless wants using available scarce
resources………………………………………………………………………………………………………………………………………
(iv)The process of identifying a business opportunity and getting necessary resources to start
and run a businesss………………………………………………………………………………………………………………………

2.State Four characteristics of direct trade. (4 Marks)

(i)………………………………………………………………………………………………………………………………………………………………

(ii)………………………………………………………………………………………………………………………………………………………………
(iii)……………………………………………………………………………………………………………………………………………………………..

(iv)…………………………………………………………………………………………………………………………………………………………….

3.Outline Four factors affecting business that it has little or no control over. (4 Marks)

(i)……………………………………………………………………………………………………………………………………………………………….
(ii)………………………………………………………………………………………………………………………………………………………………

(iii)……………………………………………………………………………………………………………………………………………………………..
(iv)…………………………………………………………………………………………………………………………………………………………….

4.State Four characteristics of a good filing system. (4 Marks)

(i)……………………………………………………………………………………………………………………………………………………………..

(ii)………………………………………………………………………………………………………………………………………………………………

(iii)……………………………………………………………………………………………………………………………………………………………..

(iv)…………………………………………………………………………………………………………………………………………………………….

5.Highlight Four advantages of a partnership. .(4 Marks)

(i)……………………………………………………………………………………………………………………………………………………………….
(ii)………………………………………………………………………………………………………………………………………………………………

(iii)……………………………………………………………………………………………………………………………………………………………

(iv)……………………………………………………………………………………………………………………………………………………………

6. Highlight five disadvantages of open office layout .(4 Marks)

(i)
………………………………………………………………………………………………………………………………………………………………....
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(ii)
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(iii)
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(Iv)
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7. State five types of business activities.(5 MARKS)

(i)……………………………………………………………………………………………………………………………………………………………….

(II)……………………………………………………………………………………………………………………………………………………………..

(iii)……………………………………………………………………………………………………………………………………………………………..

(iv)……………………………………………………………………………………………………………………………………………………………..

(v)………………………………………………………………………………………………………………………………………………………………

8. Outline four characteristics of goods. (4 MARKS)

(i)
…………………………………………………………………………………………………………………………………………………………………
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(ii)
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(iii)
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…………………………………………………………………………………………………………………………………………………………….(Iv)
…………………………………………………………………………………………………………………………………………………………………
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9.State four sources of capital for private limited companies. (4 MARKS)

(i)………………………………………………………………………………………………………………………………………………………………

(ii)………………………………………………………………………………………………………………………………………………………………
(iii)……………………………………………………………………………………………………………………………………………………………..
(iv)……………………………………………………………………………………………………………………………………………………………..

10.State the type of partner described in each of the following statement.

(a) Under eighteen years of age……………………………………………………………………………………………………

(b) Does not take active part in running the business……………………………………………………………………

(c) Has limited liability………………………………………………………………………………………………………………….

(d) Allows his name to be used for prestige of the business………………………………………………………….

11. State four roles of the stock exchange market. (4 Marks)

(i)
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(ii)
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(iii)
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…………………………………………………………………………………………………………………………………………………………….(iv)
…………………………………………………………………………………………………………………………………………………………………
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12.Highlight four circumstances under which Public limited companies may be dissolved. (4Marks)

(i)
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………………………………………………………………………………………………………………………………………………………………

(ii)
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(iii)
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(iv)
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13.State Five Principles of cooperatives. (5 Marks)

(i)
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(ii)
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(iii)
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…………………………………………………………………………………………………………………………………………………………….(iv)
…………………………………………………………………………………………………………………………………………………………………
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14.Highlight five advantages of SACCOS. (5 Marks)

(i)
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(ii)
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(iii)
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(iv)
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15.State five characteristics of human wants (5 Marks)

(i)
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……………………………………………………………………………………………………………………………………………………………….
(ii)
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(iii)
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(Iv)
…………………………………………………………………………………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………….

16.List four characteristics of human wants. (4 Marks)

(i)……………………………………………………………………………………………………………………………………………………………….

(ii)………………………………………………………………………………………………………………………………………………………………

(iii)…………………………………………………………………………………………………………………………………………………………….
(iii)…………………………………………………………………………………………………………………………………………………………….

(iv)…………………………………………………………………………………………………………………………………………………………….

17. Outline four clauses in memorandum of association (4 Marks)

(i)……………………………………………………………………………………………………………………………………………………………….
(ii)………………………………………………………………………………………………………………………………………………………………

(iii)……………………………………………………………………………………………………………………………………………………………..

(Iv)…………………………………………………………………………………………………………………………………………………………….

18.State five trends in form of business units. (5 Marks)

(i)………………………………………………………………………………………………………………………………………………………………
(ii)………………………………………………………………………………………………………………………………………………………………

(iii)……………………………………………………………………………………………………………………………………………………………

(iv)…………………………………………………………………………………………………………………………………………………………….

(v)………………………………………………………………………………………………………………………………………………………………

19. Highlight four external business environment factors. (4 Marks)

(i)……………………………………………………………………………………………………………………………………………………………..

(ii)………………………………………………………………………………………………………………………………………………………………

(iii)…………………………………………………………………………………………………………………………………………………………….

(iv)……………………………………………………………………………………………………………………………………………………………

20. Highlight five differences between public limited company and a public limited company. (10 Marks)

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21.Explain five means of payment. (10 Marks)

(i)
…………………………………………………………………………………………………………………………………………………………………
……………………………………………………………………………………………………………………………………………………………

(ii)
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(iii)
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(iv)
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…………………………………………………………………………………………………………………………………………………………….(v)
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