Business Studies Questions and Answers - Form 1 Mid Term 2 Exams 2023

QUESTIONS

1. Outline four characteristics of an entrepreneur. 4mks
2. Classify the following activities as either primary, secondary or tertiary level of production. 4mks
   1. Harvesting maize
   2. Oli refining
   3. mining
   4. banking
3. Give the rewards to the following factors of production. 3mks
   1. Land
   2. Capital
   3. Labour
4. Highlight four characteristics of direct production. 4mks
5. Outline four characteristics of land as a factor of production. 4mks
6. State four differences between goods and services. 4mks
7. Outline three function of an entrepreneur. 3mks
8. State four characteristics of economic resources. 4mks
9. Highlight four advantages of division of labour and specialization. 4mks
10. Outline four importance of entrepreneurship in the economy. 4mks
11. Give four internal business environment. 4mks
12. Outline four types of business activities. 4mks
13. Outline four characteristics of human wants. 4mks

MARKING SCHEME

1. Outline four characteristics of an entrepreneur. 4mks
   • Risk taker
   • Initiative
   • Independent
   • Seek information
2. Classify the following activities as either primary, secondary or tertiary level of production. 4mks
   • Harvesting maize-primary
   • Oli refining-secondary
   • mining -primary
   • banking-tertiary
3. Give the rewards to the following factors of production. 3mks
   • Land- rent, rates royalties
   • Capital- interests
   • Labour- salaries/wages
4. Highlight four characteristics of direct production. 4mks
   • Production is in small scale
   • Goods produced are of low quality
   • Leads to low standards of living
   • Encourages individualism
5. Outline four characteristics of land as a factor of production. 4mks
   • It is a basic factor of production
   • Its natural resource
   • Lack geographical mobility
   • Its productivity is not homogenous
6. State four differences between goods and services. 4mks
7. Outline three function of an entrepreneur. 3mks
   • Starts the business
   • Controls the business
   • Makes decision
8. State four characteristics of economic resources. 4mks
   • Have money value
   • Scarce in supply
   • Have utility
   • Can be combined
9. Highlight four advantages of division of labour and specialization. 4mks
   • Output per work is greatly increased
   • Less mental and physical efforts
   • Encourages use of machines
   • Workers acquires skills in a particular field.
10. Outline four importance of entrepreneurship in the economy. 4mks
    • Saves on imports
    • Creation of employment
    • Improve living standards
    • Creation of capital
11. Give four internal business environment. 4mks
    • Owners
    • Business resource
    • Business structure
    • Business culture
12. Outline four types of business activities. 4mks
    • Extraction
    • Manufacturing
    • Trade
    • Distribution
13. Outline four characteristics of human wants. 4mks
    • Are insatiable
    • Require resources
    • Are complimentary
    • Some are habitual