Business Studies Form 1 Questions and Answers - Term 3 Opener Exams 2021

INSTRUCTIONS

• Answer all questions

QUESTIONS

1. Goods are used in satisfaction of human wants. Outline FOUR features of goods.(4mks )
2. Identify FOUR benefits of indirect production.(4 mks)
3. State the factors of production represented by each of the following resources. ( 4 mks )
   

   Resources	Factor
   a). Land
   b).  Fertilizer
   c). Farmer
   d). Tractor

4. Highlight FOUR characteristics of basic wants.( 4 mks )
5. Identify the utility created when the following activities are carried out.( 4 mks )
   

   Activity	Utility
   a). A farmer transporting maize to the market
   b). A farmer keeping harvested maize in the family granary
   c).  The maize grains are gorund into flour  in the posho mill
   d).The farmer sells the maize in the neighbouring school

6. Highlight any FOUR problems faced by human beings in the process of satisfaction of human wants. ( 4 mks )
7. State the function of each of the following documents as used in home trade.( 4 mks )
   

   Document	Function
   a). Proforma invoice
   b). Advice note
   c). Credit note
   d). Order

8. Jane has completed her secondary school studies. She wishes to engage in a small-scale retail business in her locality. Highlight FOUR types of business she can start.( 4 mks )
9. Identify THREE parties to a cheque that makes it valid.( 3mks )
10. Highlight FOUR characteristics of road side traders.( 4 mks )
11. Outline FOUR factors that discourage entrepreneurial development in an economy.( 4 mks )
12. State FOUR qualities that Nyakundi should possess in order to work effectively in an office.( 4 mks )
13. Wanjohi Stores were paid for their deliveries through cheque. However the cheque was dishonoured. Give FOUR possible reasons that could have led to this.( 4 mks )
14. Identify the type of goods described by the following statements given in the table below.( 4 mks )
    

    Statement	Type of good
    a). Used to create other goods
    b). Require further processing in order to have utility
    c). Government is obligated to provide them to her citizens
    d). Have utility but no monetary value

15. The following statements refer to different office layouts. Identify the types of office layout explained in the following statements.( 3mks )
    

    Statement	Office layout
    a). All staff members operate from the same room
    b). Senior managers are assigned seperate rooms from where they co-ordinate activities
    c). High class offices assigned to enhancing the image of the organisation

16. Outline FOUR features of Mail Order business.( 4 mks )
17. Highlight four ways through which an entrepreneur may generate business ideas.( 4 mks )
18. State four functions of an office.( 4 mks )
19. Highlight FOUR external factors that may positively influence the operations of a business.( 4 mks )
20. Outline FOUR advantages of an enclosed office layout.( 4 mks )
21. Identify the type of wholesalers described in the statements given below.( 4 mks )
    

    Description	Wholesaler
    a). Deal in a wide range of products but within one line
    b). Sells particular products to other specialized wholesalers
    c). Use vehicles to go around selling goods to trades
    d). Sell their products to certain parts of the country only

22. Explain the meaning of the following terms as used in wholesale trade.( 4 mks )
    1. Breaking Bulk. ----------------------------------
    2. Packing. ----------------------------------------
    3. Blending. --------------------------------------
    4. Branding.--------------------------------------
23. State FOUR characteristics of chain stores  (4marks)
24. List FOUR components of business studies.  (4 marks)
25. State THREE importance of trade to a country.   (3mks)
26. State THREE categories of labour.   (3 mks )

MARKING SCHEME

1. Features of goods
   • They are tangible.
   • They can be stored.
   • They can be standardized.
   • They can be separated from the producer.
   • They can change in value over time.
   • Not all goods are perishable.                                                                                   4 × 1 = 4 mks
2. Advantages of indirect production :
   • Leads to production of high quality goods.
   • Leads to mass production.
   • Allows for wider use  of machines
   • Encourages specialization
   • Will create employment
   • Will lead to inventions and innovations.                                                              4 × 1 = 4 mks
3.  
   1. Land
   2. Capital
   3. Entrepreneurship
   4. Capital.                                                                                                           4 × 1 = 4 mks
4.  
   • One cannot do without.
   • They are felt needs
   • They cannot be postponed
   • They are satisfied before secondary wants
   • They are universal.                                                                                     4 × 1 = 4 mks
5.  
   1. Place
   2. Time
   3. Form
   4. Possession                                                                                                      4 × 1 = 4 mks
6.  
   • Resources are limited
   • Human wants are unlimited
   • They require monetary value
   • Human wants are insatiable
   • Human wants are recurrent
   • Human wants are competitive                                                                  4 × 1 = 4 mks
7.  
   1. A document that demands payment for goods before delivery.
   2. Sent by seller to buyer to notify him/her that the ordered goods have been dispatched.
   3. Sent by seller to the buyer to collect an overcharge in the invoice.
   4. Request from buyer to the seller to supply a specified quantity of goods under specified terms and conditions.
      4 × 1 = 4 mks
8.  
   • Itinerant traders
   • Open air market
   • Single shops
   • Kiosks
   • Market stalls
   • Canteens
   • Roadside sellers/traders.                                                                          4 × 1 = 4 mks
9.  
   • Drawer – The person who writes the cheque.
   • Drawee – The bank.
   • Payee – The person to be paid.                                                                 3 × 1 = 3 mks
10.  
    • Small in size.
    • Sell fast moving goods.
    • Operate in open air.
    • Are flexible
    • Sell non-durable consumer goods
    • Easy to start with few legal requirements
    • Relative require little capital and operate                                             4 × 1 = 4 mks
11.  
    • Well-groomed/presentable
    • Courteous /respectful/polite/humble /kind
    • Cooperate /understanding
    • Punctual
    • Hardworking
    • Loyal                                                                                                 4 × 1 = 4 mks
12.  
    • Inadequate raw materials
    • Poor infrastructure
    • Political instability& violence
    • Inadequate government support
    • Inadequate relevant courses in leaving institutions
    • Unsupportive culture
    • Insecurity                                                                                4 × 1 = 4 mks
13.  
    • Could be the cheque was post dated
    • The cheque could be stale
    • Request by account holder not to pay
    • May be the amount in words was different from the amount in figure
    • May be there was insufficient fund in the drawers account.
    • Could be the signature of the cheque leaf was different from the bank                       4 × 1 = 4 mks
14.  
    1. Producer /capital goods
    2. Intermediate goods
    3. Public goods
    4. Free goods                                                                                                   4 × 1 = 4 mks
15.  
    1. Open office layout
    2. Partitioned/enclosed
    3. Landscape.                                                                                                4 × 1 = 4 mks
16.  
    • Deal with limited varieties of goods.
    • No personal contact between business and customers.
    • Sales are strictly on cash ( C.W.O or C. O. D. ).
    • Orders are done online/ through mail.
    • Use post office or courier services to deliver goods to customers.
    • Carry out heavy advertisement to popularize their businesses in the dailies.    4 × 1 = 4 mks
17.  
    • Reading books, magazines, newspapers, journals, periodicals.
    • Improving on an existing idea.
    • Combining two existing ideas.
    • Surveying and researching.
    • Identifying market gap/ niche/ sporting market gap.
    • Innovation and creativity.
    • Gaining from wastes/ making use of wastes.
    • Brainstorming/ consultations with business people.
    • Building on one skills, hobbies and interest.
    • Attending trade show, fairs and exhibitions.                                                             4 × 1 = 4 mks
18.  
    • Receiving and recording information.
    • Distributing information.
    • Mailing.
    • Reproduction of documents.
    • Safeguarding and controlling organizations property.
    • Communication.
    • Filing.                                                                                                           4 × 1 = 4 mks
19.  
    • Increase in consumers’ income.
    • Increase in population.
    • Favourable government policies.
    • Improved technology.
    • Less or no competition.
    • Favourable culture.
    • Improved security.
    • Well-developed infrastructure.                                                                  4 × 1 = 4 mks
20.  
    • It offers privacy.
    • Easy to clean and tidy up.
    • Provide security for valuable and sensitive items.
    • Conducive working environment.
    • Thes less noise and disruption from workers and machines.               4 × 1 = 4 mks
21.  
    1. General line.
    2. Rack jobbers.
    3. Mobile.
    4. Regional.                                                                4 × 1 = 4 mks
22.  
    1. Dividing a commodity into smaller units for the convenience of the buyer.
    2. Putting goods in packets, boxes or cartons
    3. Mixing different grades to achieve desired tastes or other qualities.
    4. Giving a product a name by which it will be sold.                                4 × 1 = 4 mks
23.  
    • They are large scale businesses
    • They have separate branches which are managed and organized centrally
    • They are uniform in outward appearance and interior layout
    • All branches deal in the same type of product
    • They sell at standardized prices all their branches                                4 × 1 = 4 mks
24.  
    • Economics.
    • Commerce.
    • Office practice.
    • Entrepreneur.                                                                     4 × 1 = 4 mks
25.  
    • Creates employment.
    • Avails a variety of goods.
    • Helps people to acquire what they may not be able to produce.
    • Help producers to dispose their surplus produce.
    • Ensures a steady supply of goods and services.
    • Encourages specialization and division of labour.
    • Provides revenue to the business people and the government.         3 × 1 = 3 mks
26.  
    • Skilled
    • Semi-skilled
    • Unskilled.                                                                                                      3 × 1 = 3 mks