Business Studies Questions and Answers - Form 1 Mid Term 1 Exams 2021

BUSINESS STUDIES
FORM 1
MID TERM
TERM 1

INSTRUCTIONS

• Answer all the questions

1. Define the following terms;
   1. Business
   2. Business studies
   3. Production
   4. Commerce (4 mks)
2. List 3 importances of studying business studies ( 3 mks)
3. List 2 types of business activities ( 2 mks)
4. List 4 macro-environmental factors (4 mks)
5. What are human wants (1 mk)
6. State 4 characteristics of human wants (4 mks)
7. Give 2 differences between goods and services (4 mks)
8. List 2 classifications of economic resources (2 mks)
9. Differentiate between renewable and non-renewable resources (4 mks)
10. What are the 2 categories of secondary wants (2 mks)

MARKING SCHEME 

1. Define the following terms;
   1. Business - Any activity carried out by an individual or an organisation concerning provision of goods and services with the aim of making profit
   2. Business studies - The study of the activities that take place in and around production, distribution and consumption of goods and services
   3. Production- Creation of goods and services
      Increasing the usefulness of goods and services
   4. Commerce (4 mks)- The study of trade and aids to trade
2. List 3 importances of studying business studies ( 3 mks)
   • It is a career subject
   • Equips the members of the society with knowledge and skills necessary to start a business
   • Enables individuals to understand the role of government in business activities
     
     
3. List 2 types of business activities ( 2 mks)
   • Extraction
   • Manufacturing
   • Construction
   • Processing of raw materials
     
     
4. List 4 macro-environmental factors (4 mks)
   • Legal-political environment
   • Competitive environment
   • Economic environment
   • Technological environment
     
     
5. What are human wants (1 mk)
   • Human wants are the desires that human beings strive to satisfy using goods and services
     
     
6. State 4 characteristics of human wants (4 mks)
   • They are repetitive
   • They are universal
   • They are habitual
   • They are insatiable
     
     
7. Give 2 differences between goods and services (4 mks)
   • Goods are tangible while services are intangible
   • Goods can be standardized while services can’t be standardized
   • Goods can be separated from the producer while services cannot be separated from the provider
     
     
8. List 2 classifications of economic resources (2 mks)
   • Human resources
   • Natural resources
   • Man-made resources
     
     
9. Differentiate between renewable and non-renewable resources (4 mks)
   • Renewable resources are those resources whose supply can be restored  after use while non-renewable resources are the ones whose supply cannot be restored after use , i.e they become exhausted after use
     
     
10. What are the 2 categories of secondary wants (2 mks)
    • Comforts
    • Luxuries