Business Studies Form 1
Business Studies Form 1
0 (2023)
BUSINESS STUDIES
FORM 2
TERM 3
TIME:2 HOURS
Name: …………………………………………………………. Adm No: ……………….
School: ……………………………………………………….. Class: …………………..
Signature: ……………………………………………………………………………………. Date: …………………...
INSTRUCTIONS TO CANDIDATES:
i. Write your name, index number and admission number in the spaces provided above.
ii. Answer ALL the questions.
iii. Candidates should check to ascertain that all pages are printed and that no questions
are missing.
QUESTION 1 2 3 4 5 6 7 8 9 10 11 12 13 14
MARKS
QUESTION 15 16 17 18 19
MARKS
TOTAL MARKS
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1. Outline 4 benefits of learning business studies to an individual. (4 Marks)
a) …………………………………………………………………………………………..
b) …………………………………………………………………………………………..
c) …………………………………………………………………………………………..
d) ………………………………………………………………………………………......
2. Outline four elements of demographic environment that may affect the operations of a
business. (4 Marks)
a) …………………………………………………………………………………………..
b) …………………………………………………………………………………………..
c) …………………………………………………………………………………………..
d) ………………………………………………………………………………………......
f) …………………………………………………………………………………………..
g) …………………………………………………………………………………………..
h) ………………………………………………………………………………………......
b) …………………………………………………………………………………………..
c) …………………………………………………………………………………………..
d) ………………………………………………………………………………………......
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5. State the line of communication involved in each of the following situations. (4 marks)
a) The manager of Casio company Ltd talking to the manager of Sony company Ltd.
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b) A secretary asking for time off from her boss.
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c) The production manager giving instructions to the secretary of the sales manager.
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d) The ministry of Education sending a circular to school on change of term dates.
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6. Atoti owns a motor vehicle valued at Sh. 1,000,000. She insured the car at Sh. 300,000. The
motor vehicle was involved in an accident and declared a write off. Calculate the amount
Atoti should get from the insurer. (4marks)
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7. Indicate the rewards associated with each of the factors of production in the table below.
(4
Marks)
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8. State four ways of classifying partners in business enterprises. (4marks)
a) …………………………………………………………………………………………..
b) …………………………………………………………………………………………..
c) …………………………………………………………………………………………..
d) ………………………………………………………………………………………......
b) …………………………………………………………………………………………..
c) …………………………………………………………………………………………..
d) ………………………………………………………………………………………......
10. Indicate the type of advertising which fits the descriptions given below. (4 Marks)
a) Create awareness about a product ………………………………………………
11. Outline four benefits that may accrue to members of Savings and Credit Cooperative
Societies (Saccos) in Kenya. (4mks)
a) ………………………………………………………………………………………
b) ………………………………………………………………………………………
c) ………………………………………………………………………………………
d) ………………………………………………………………………………………
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12. State four benefits that a farmer may get by transporting produce to the market by road.
(4 Marks)
a. ………………………………………………………………………………………
b. ………………………………………………………………………………………
c. ………………………………………………………………………………………
d. ………………………………………………………………………………………
a. ………………………………………………………………………………………
b. ………………………………………………………………………………………
c. ………………………………………………………………………………………
d. ………………………………………………………………………………………
b. ………………………………………………………………………………………
c. ………………………………………………………………………………………
d. ………………………………………………………………………………………
15. State four government initiated methods of protecting consumers from exploitation by
traders. (4mks)
i) ………………………………………………………………………………………
ii) ………………………………………………………………………………………
iii) ………………………………………………………………………………………
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iv) ………………………………………………………………………………………
16. Explain five factors that lead to business success. (10 Marks)
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17. A flower farmer in Naivasha has secured market for her flowers in the UK . Explain five
reasons why the farmer should use air to transport his flowers (10 Marks)
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18. Describe the procedure followed in taking an insurance policy (10 Marks)
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19. Explain the five differences between a partnership and a private limited company.
(10 Marks)
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