Business Studies Questions and Answers - Form 1 Term 3 Opener Exams 2023

1. State four methods of reproducing documents in an office. (4mks)
2. List four characteristics of human wants. (4mks)
3. Identify the type of goods described by each of the following statements. (4mks)
   

   	Description	Goods
   (a)	Owned by no one but the government
   (b)	Produced to be in the production of other goods
   (c)	Available in abundance as gifts of nature
   (d)	Have monetary value and human effort is needed to obtain them

4. Give four sources of business ideas. (4mks)
5. Outline four components of business studies. (4mks)
6. State whether the good or service given in the table below would satisfy a basic human want or secondary want. (4mks)
   

   Good/service	Class of human wants
   (a)   A shirt
   (b)   Education
   (c)   Housing
   (d)   A packet of rice

7. List four functions of an office. (4mks)
8. Outline the meaning of the following terms in relation to satisfaction of human wants (4mks)
   1. Scale of preference-
   2. Choice
   3. Opportunity cost -
   4. Scarcity-
9. Name the factor of production that each of the following resources relate to. (4mks)
   

   	Resource	Factor of production
   (a)	Accountant
   (b)	Motor vehicle
   (c)	Water
   (d)	Owner

10. Highlight four characteristics of an entrepreneur. (4mks)
11. Indicate with a tick in the appropriate column the business environment associated with each of the factors. (4mks)
    

    	Factor	Internal environment	External environment
    (a)	Technology
    (b)	Human resource
    (c)	Political
    (d)	Goals and objectives

12. Name the aspects of business studies explained by the following statements. (4mks)
    1. Process of moving goods and services from the producer to the consumer ………………………………..
    2. Creation of goods and services to satisfy human wants ……………………….
    3. Act of using or utilizing goods and services to satisfy human wants ……………………..
    4. Study of business-related activities and how they affect the society ………………..
13. Outline four personal considerations to take when evaluating a business idea. (4mks)
14. Classify the following as either direct or indirect production. (4mks)
    1. Simple production techniques used by the producer……………………………………………
    2. A variety of goods and services are produced………………………………………………………
    3. There’s mass production of a certain product………………………………………………………
    4. Production is done with the view of own consumption…………………………………………
15. Classify the following resources as natural, man-made or human. (4mks)
    
    

    Resources	Classification
    (a)  Architect
    (b)  Boat
    (c)  Soda ash
    (d)  Driver

16. Highlight four benefits of a business plan to an entrepreneur. (4mks)
17. State four types of business activities. (4mks)
18. State four importance of learning business studies. (4mks)
19. Indicate in the table below the machine used to perform the following functions. 4mks
    
    

    	Functions	Machines
    (a)	Folding documents, placing them in envelopes and sealing the envelopes
    (b)	Making short hand dictations and recording information on tapes
    (c)	Posting information to ledges and preparation of pay rolls
    (d)	For trimming documents into required shapes and sizes

20. List four external business environments. (4mks)
21. Explain five factors that should be considered by a business when choosing office equipment. (4mks)
22. Explain five features of land as a factor of production. (4mks)

MARKING SCHEME

1. State four methods of reproducing documents in an office. (4mks)
   1. Photocopying
   2. Carbon copying
   3. Duplication
   4. Printing
2. List four characteristics of human wants. (4mks)
   1. They are recurrent/repetitive
   2. They are unlimited/many/endless in number
   3. They vary in urgency and intensity
   4. They are competitive
   5. They require resources to be satisfied
   6. They are habitual
   7. Some are complimentary
   8. They are insatiable
3. 
   Identify the type of goods described by each of the following statements. (4mks)
   

   	Description	Goods
   (a)	Owned by no one but the government	Public goods
   (b)	Produced to be in the production of other goods	Producer goods
   (c)	Available in abundance as gifts of nature	Free goods
   (d)	Have monetary value and human effort is needed to obtain them	Economic goods

4. Give four sources of business ideas. (4mks)
   1. Print media-newspapers, journals and magazines
   2. Electronic media eg. TV, computer
      
   3. Vocational training
   4. Hobbies/talents
   5. Listening to what people say
   6. Unutilized waste materials
   7. Observing established entrepreneurs/role models
   8. Experience
   9. Research and development
   10. Shows and exhibitions
   11. Spotting a market gap niche
   12. Brainstorming
   13. Business seminars/workshops
5. Outline four components of business studies. (4mks)
   1. Accounting
   2. Commerce
   3. Office practice
   4. Economics
   5. Entrepreneurship
6. State whether the good or service given in the table below would satisfy a basic human want or secondary want. (4mks)
   

   Good/service	Class of human wants
   (a)   A shirt	Basic
   (b)   Education	Secondary
   (c)   Housing	Basic
   (d)   A packet of rice	Basic

7. List four functions of an office. (4mks)
   1. Filing
   2. Communication
   3. Mailing
   4. Reproduction of documents
   5. Safeguarding of an organization property
   6. Receiving documents
8. Outline the meaning of the following terms in relation to satisfaction of human wants (4mks)
   1. Scale of preference – a list of unsatisfied human wants in the order of priority/importance
   2. Choice  – it is the selection/deciding which human want to satisfy because resources are not enough
   3. Opportunity cost  – it is the value of foregone alternative in order to enjoy another good/service
   4. Scarcity – it is a situation where economic resources are limited in supply/not enough/inadequate to satisfy human wants
9. Name the factor of production that each of the following resources relate to. (4mks)
   

   	Resource	Factor of production
   (a)	Accountant	Labor
   (b)	Motor vehicle	Capital
   (c)	Water	Land
   (d)	Owner	Entrepreneurship

10. Highlight four characteristics of an entrepreneur. (4mks)
    1. Risk taker
    2. Patient
    3. Innovative
    4. Competitive
    5. Desire to achieve
    6. Self confidence
    7. Efficient
    8. Determination
    9. Time conscious
    10. Ability to come up with solutions
    11. Goal oriented
11. Indicate with a tick in the appropriate column the business environment associated with each of the factors. (4mks)
    

    	Factor	Internal environment	External environment
    (a)	Technology		✓
    (b)	Human resource	✓
    (c)	Political		✓
    (d)	Goals and objectives	✓

12. Name the aspects of business studies explained by the following statements. (4mks)
    1. Process of moving goods and services from the producer to the consumer distribution
    2. Creation of goods and services to satisfy human wants production
    3. Act of using or utilizing goods and services to satisfy human wants consumption
    4. Study of business-related activities and how they affect the society business studies
13. Outline four personal considerations to take when evaluating a business idea. (4mks)
    1. Personal objectives
    2. Knowledge and skills of an entrepreneur
    3. Interest of the entrepreneur
    4. Financial status of the entrepreneur
    5. Commitment of the entrepreneur
14. Classify the following as either direct or indirect production. 4mks
    1. Simple production techniques used by the producer direct
    2. A variety of goods and services are produced indirect
    3. There is mass production of a certain product indirect
    4. Production is done with the view of own consumption direct
15. Classify the following resources as natural, man-made or human. (4mks)
    

    Resources	Classification
    (a)  Architect	Human
    (b)  Boat	Man made
    (c)  Soda ash	Natural
    (d)  Driver	Human

16. Highlight four benefits of a business plan to an entrepreneur. (4mks)
    1. Facilitates acquisition of loans from financial institutions
    2. Provide guidance for opening new and expanding existing business
    3. Acts as a managerial tool for the business/ identifies strengths and weaknesses
    4. It’s a tool for evaluating business performance
    5. It lays the strategy to be used in marketing products
    6. It enhances credibility of the business
    7. It is a motivational tool
17. State four types of business activities. (4mks)
    1. Extraction
    2. Processing
    3. Manufacturing
    4. Trade
    5. Construction
    6. Provision of services
    7. Distribution of goods
18. State four importance of learning business studies. (4mks)
    1. Learners gain knowledge and skills on how to start and run a successful business
    2. Helps learners to develop positive attitudes towards work
    3. Helps learners to develop careers
    4. Enables learners to understand the role of government in business
    5. Gives learners basic knowledge for further studies
    6. Help learners to understand other related subjects of study
    7. Enable learners to appreciate the role of business in the society
19. Indicate in the table below the machine used to perform the following functions. (4mks)
    

    	Functions	Machines
    (a)	Folding documents, placing them in envelopes and sealing the envelopes	Composite
    (b)	Making short hand dictations and recording information on tapes	Dictaphone
    (c)	Posting information to ledges and preparation of pay rolls	Accounting machine
    (d)	For trimming documents into required shapes and sizes	Guillotine

20. List four external business environments. (4mks)
    1. Economic
    2. Demographic
    3. Technological
    4. Legal political
    5. Cultural
    6. Competitive
    7. Physical
21. Explain five factors that should be considered by a business when choosing office equipment. (4mks)
    1. Cost – the equipment should be affordable in terms of initial cost and maintenance
    2. Durability – the equipment should be long lasting
    3. Level of technology should be modern so that it is not rendered obsolete within a short period of time
    4. Personnel to operate it – it should be easy to use by the organization’s staff. It should not require huge training cost to the organization
    5. Capability – the equipment should be able to give the required output in the most efficient way
    6. Effect on staff morale- the equipment should be embraced by the staff
    7. Availability of spare parts – equipment spare parts should be easily accessible to minimize costs
    8. Availability of space – the room should be adequate to accommodate it.
    9. Security – to avoid loss
22. Explain five features of land as a factor of production. (4mks)
    1. It’s a natural resource- God given/provided freely by nature
    2. It’s a basic factor of production- production cannot take place when land is absent
    3. Its reward is rent/rates/royalties, owners of land receive income in form of rent due to its exploitation/use
    4. Its supply is fixed/limited available size of land cannot be increased or decreased
    5. Subject to law of diminishing returns loses productivity due to continuous use
    6. It is quality/productivity can be improved through application of manure/fertilizer/improving technology/capital