Business Studies Questions and Answers - Form 1 Mid Term 1 Exams 2023

QUESTIONS  

1. Define the following terms as used in business studies.(7marks)
   
   1. Business
   2. Business studies
   3. Goods
   4. Services
   5. Production
   6. Distribution
   7. Consumption
2. Highlight the discipline that compose business studies (5marks)
3. With an aid of appropriate examples differentiate internal business environment from external business environment (4marks)
4. Outline five type of business activities (5marks)
5. Explain the importance of business studies in the society (10 marks)
6. State whether each of the following factors fall under micro-environment or macro- environment (4marks)
   1. Competitive environment
   2. Legal-political environment
   3. Business structure
   4. Business culture
7. Give main features of basic wants (4 marks
8. Differentiate between goods and services (8marks)
9. State how scarcity, choice and opportunity cost are related (3marks)

MARKING SCHEME

1. Define the following terms as used in business studies.(7marks)
   1. Business
      • Refers to any activity that is carried out by an individual or an organization concerning provision of goods and services with a view of making profit
   2. Business studies
      • Is the study of the activities that are carried out in and around production , distribution and consumption of goods and service
   3. Goods
      • Are items that are tangible i.e furniture and building
   4. Services
      • Are actions or activities that may be sold (intangible)
   5. Production
      • Creation of goods and services to satisfy human wants
   6. Distribution
      • Movement of goods and services from producers to the final consumers
   7. Consumption
      • Using of goods by the final consumer
2. Highlight the discipline that compose business studies (5marks)
   • Economics
   • Commerce
   • Accounting
   • Office practice
   • Entrepreneurship 
3. With an aid of appropriate examples differentiate internal business environment from external business environment (4marks)
   • Internal business environment refers to factors that are within the business unit itself eg business structure , business resources
   • External business environment are factors that affect the business operation from outside eg economic environment , demographic and technological environment
4. Outline five type of business activities (5marks)
   • Extraction
   • Processing of raw materials
   • Manufacturing
   • Construction
   • Trade
5. Explain the importance of business studies in the society (10 marks)
   • Help an individual to develop positive attitude towards the environment
   • Assist individuals to acquire self discipline and positive attitude towards work
   • Equip individual with abilities to promote co-operation in society through trade
   • Enables the individual to understand the role of the government in business activities
   • Equips the individual with knowledge and skills required to evaluate business performance
   • Makes members of society to appreciate the need for good business management practices
6. State whether each of the following factors fall under micro-environment or macro-environment (4marks)
   1. Competitive environment -macro
   2. Legal-political environment-macro
   3. Business structure-micro
   4. Business culture-micro
7. Give main features of basic wants (4 marks)
   • One cannot do without them
   • They are felt needs
   • They cannot be postponed
   • They are satisfied before secondary wants
8. Differentiate between goods and services (8marks)
   

   Goods	Services
   Are tangible	Are intangible
   Can be stored	Cannot be stored
   Can be standardized	Cannot be standardized
   Can change possession(separable from the producer)	Cannot be separated from the provider
   Not all goods are perishable	Services are highly perishable
   Most can be seen	Cannot be seen
   Can change in value over time	Cannot change in value since they cannot be stored

9. State how scarcity, choice and opportunity cost are related (3marks) 
   • Whenever a choice is made, something is given up. The opportunity cost of a choice is the value of the best alternative given up. Scarcity is the condition of not being able to have all of the goods and services one wants.