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

• Answer all questions in the spaces provided

1. state four characteristics of a good                                                     ( 4 marks)
2. State the reward for each of the following factors of production   (4 marks)
   
   

   	Factors	Reward
   a)	Land
   b)	capital
   c)	Entrepreneur
   d)	Labour

3. Highlight five sources of business ideas                                                                        ( 5 mks)
4. Outline four reasons why a business plan is important                                                ( 4 mks
5. Highlight four reasons why a person may decide to establish a business.         ( 4 marks)
6. .Give four problems that consumers may encounter as they try to satisfy their wants    ( 4 mark).
7. Janet says she would like to become a successful entrepreneur. Advice her on five qualities that she must have in order to achieve this object 
    ( 5 marks)
8. State four characteristics of economic resources                                                      ( 4 mark)
9. Give four ways that a student can benefit from studying business as a subject  ( 4 marks)
10. Highlight four characteristics of land as a factor of production                              ( 4 marks)
11. Define the following terms as used in business studies                                            ( 4 marks)
    1. Production   
    2. Distribution
    3. Services
    4. AccountinG
12. Highlight four factors that contribute to success of a business venture    ( 4 marks)
13. Indicate whether each of the following factors  is an internal or an external business environment                                     ( 4 marks)
    
    

    	Factor	Environment
    a)	Size of population
    b)	Managers
    c)	Physical facilities
    d)	Competitors

     
14. Give four characteristics of basic wants                                                                       ( 4marks)
15. Highlight five factors that may hinder entrepreneurship development an a country   ( 5 marks)
16. Highlight four resources that a business can use to enhance its operations   ( 4marks)
17. Write down four factors that one should consider when evaluating a business opportunity (4 mks)

MARKING SCHEME

1. State four characteristics of a good (4 mks)
   1. tangible
   2. separable from producers
   3. some are durable some perishable
   4. can be stored for future use
   5. goods can be standardized
   6. can change possession
2. State the reward for each of the following factors of production (4 marks)
   
   

   	Factors	Reward
   a)	Land	Rent\rates
   b)	capital	Interest
   c)	Entrepreneur	Profits
   d)	Labour	wages\salary

3. Highlight five sources of business ideas ( 5 mks)
   1.  Market research
   2.  Print and electronic media like magazines, newspapers, journals, radio, TVs etc.
   3. Trade fairs and exhibitions
   4. Internet
   5. hobbies
   6. seminars and conferences
   7. listening to what people say
4. Outline for reasons why a business plan is important ( 4 mks)
   1. Requirement by financiers
   2. Avoid making mistakes
   3. Identifying the strength and weakness of a business
   4. Allocation of resources
   5. A motivating factor
   6. Adaptability
   7. Determination of the amount of resources required
5. Highlight four reasons why a person may decide to establish a business. ( 4 marks)
   1. To create employment
   2. To generate income
   3. To be ones own boss
   4. To enhance social status
   5. To occupy a businessman during free time
   6. For self actualizatio
   7. To commercialize a hobb
6. Give four problems that consumers may encounter as they try to satisfy their wants ( 4 marks)
   1. Limited nature of resources and unlimited nature of wants
   2. Wants are recurrent
   3. They vary with age and intensity
   4. Some wants are complimentary
   5. Competitive nature of want
7. Janet says she would like to become a successful entrepreneur. Advice her on five qualities thatshe must have in order to achieve this objective. ( 5 marks)
   1. Readiness to take risk
   2. Must be goal oriented
   3. Ability to solve problems
   4. Initiative
   5. Time conscious
   6. Self confidence
   7. Hardworking
   8. Future oriented
   9. Independence
   10. Self confidence
   11. Persistent
   12. Commitment to work
8. State four characteristics of economic resources ( 4 marks)
   1. Scarce in supply
   2. Have money value
   3. Unevenly distributed
   4. Have utility
   5. Have alternative uses
   6. Can change ownershi
   7. Can be combined
   8. Can be complimentary
9. Give four ways that a student can benefit from studying business as a subject ( 4 marks)
   1. Enables learner to appreciate the role played by market forces in business
   2. Equips one with skills necessary to start and run a business
   3. Assists one to appreciate the role of business in provision of goods and services
   4. Makes one appreciate need for good management practices
   5. Assists an individual to acquire self discipline and positive attitude towards work
   6. Helps one to understand the role of government in business activities
   7. Helps one to develop positive attitude towards environment
   8. One acquires skills to evaluate business performance
10. . Highlight four characteristics of land as a factor of production ( 4 marks)
    1. It’s a basic factor of production
    2. Its supply is fixed
    3. Lacks geographical mobility
    4. Its quality is not homogenous
    5. Productivity can be increased by increasing the quantity and quality of capital
    6. Its productivity is subject to the law of diminishing returns
11. . Define the following terms as used in business studies ( 4 marks)
    1. Production : refers to creation of goods and services or increasing their usefulness
    2. Distribution : movement of goods and services from producer to consumer
    3. Services: actions or activities that may be sold
    4. Accounting : systematic way of recording business activities
12. . Highlight four factors that contribute to success of a business venture ( 4 marks)
    1. Ability to manage people
    2. Availability of customers
    3. Adequate finances
    4. Lack of competition
    5. Proper management of finances
    6. Proper debt management
    7. Good public relations
    8. Creativity and innovativeness
    9. Proper market research
13. Indicate whether each of the following factors is an internal or an external business environment( 4 marks)
    
    

    	Factors	Environment
    a)	Size of populatiopn	External
    b)	Managers	External
    c)	Physical facilities	External
    d)	Competitors	External

14. Give four characteristics of basic wants ( 4 mark
    1. One cannot do without them
    2. Satisfied before secondary wants
    3. They are felt needs
    4. They cannot be postponed
15. . Highlight five factors that may hinder entrepreneurship development an a country ( 4 mark)
    1. Lack of government support/ poor government policy
    2. Insecurity/political instability
    3. High level of corruption
    4. High levels of taxation
    5. Poor infrastructure
    6. High cost of capital
    7. Lack of role models
    8. High cost of energy
16. . Highlight four resources that a business can use to enhance its operations (4 marks)
    1. Technological resources
    2. Physical resources
    3. Financial resources
    4. Human resources
17.  Write down four factors that one should consider when evaluating ( 4 mark)
    1. Availability of market
    2. Availability of raw materials
    3. Government policy
    4. Profitability
    5. Level of competition
    6. Technology required
    7. Impact of business on environment