BUSINESS STUDIES Marking Scheme - Form 2 End of Term 1 2019 Examinations

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  1. Utility created by the activities       
    • Time utility
    • Place utility
    • Possession utility
    • Form utility                                                                                               (4mks
  2. Ways to turn business idea to good business opportunity.
    • The product(s) the business will sell
    • Who the business will sell to (market)
    •  Where the business will be located
    •  How the business will run (management)
    • Why the business is need (objectives)                                                       (4mks)
  3. Factors that may lead to overcharge in an invoice.
    • Overpricing individual items
    • Arithmetical errors
    • Double counting
    • Failure to deduct discount exaggerating vat changes
    • Inclusion of damaged goods
  4. Ways an office can safeguard and control organizations property
    • Increase security against theft e.g. employs watchmen
    • Ensuring physical care by people using the property
    • Keeping records of movement and usage of each of the property
    • Physical stock – taking of each property
    • Taking insurance cover
    • Proper repairs, serving and maintenance.                                                   (4mks
  5. Four importance of Business studies in a society.
    •  Helps learners to understand the role of the government in relation to business activities.
    • Helps the society to appreciate the role of communication and information technology in modern business management.
    • Helps learners to acquire self discipline and positive attitude towards work.
    • Helps learners to acquire the necessary entrepreneurial knowledge, skills and attitude for starting and operating a business.
    • Helps learners to understand business and its environment                  Any four 1x4=4mark
  6. Four features of human wants.
    •  Are insatiable.
    • Vary in intensity and urgency.
    • Are competitive.
    • Are recurrent.
    • Are habitual.
    • Are universal.                                                                     (Any four =4x1=4marks)
  1. Factors that discourage entrepreneurial development
    • Inadequate raw materials
    • Poor infrastructure
    • Political instability and violence
    • Inadequate relevant courses in learning institution
    • Inadequate government support
    • Unsupportive culture
    •  Insecurity                                   Any four =4x1=4marks
  1. Outline four circumstances which would make an office manager to replace an existing Machine with a modern one.            
    • Where a faster machine is required
    • Where maintenance cost is higher than cost of acquiring modern machine
    • Where training/skills have changed
    • Where he wants to save on labor
    • Need for increased production
    • High quality work is required  (Any four =4x1=4 marks)
  1. Four reasons why government participates in business.
    • To generate income.
    • To attract foreign investment.
    • To create confidence in the economy.
    • To venture in businesses where individuals are not willing to invest due to low profit margins.
    • To provide essential goods and services.
    • To invest in areas of National interest.  (Any 4x1=4 marks)
  1. Internal business environments
    • Business structure
    • Resources
    • Business culture
    • Owners       (1 x 4 points = 4 mks)
  1. Four ways in which productivity of land can be improved as factor of production.
    • Through crop rotation
    • Mechanization/use of machine
    • Pest and disease control
    • Through land reclamation
    • Use of fertilizer                                     Any 4x1=4marks
  1. Circumstances for open office
    • Where/when/if it’s cheaper to construct
    • Where it’s necessary to offer/share common office facilities
    • Where there is need for easier consultation/coordination of office activities
    • Where there is need for close supervision of workers
    • Where there is need to enhance faster communication
    • Where there is a need to save an space
    • Where flexibility in reorganization of the office is required.   (1 x 4points = 4mks)
  1. Cash terms of payment
    • Spot cash
    • Cash on delivery
    • Cash with order
    • Prompt cash
  1. Resource Factor of production.
    • Manager -Labour.
    • Vehicle  - Capital.
    • Owner   - Entrepreneurship.
    • Water    - Land. (1 x 4 = 4mks)
  1. Means of payments she can use to clear her debt
    • Cash
    • Electronic fund transfer(EFT)
    • Promissory note credit card/visa card
    • Standing order
    • I owe you(IOU
    • Travellers cheques
    • Premium bonds
    • M-pesa
    • Money orders
    • Credit transfer
    • Any other relevant means of payment     (1 x 4 = 4mks
  1. Reasons why consumers have to make a choice between competing needs.                                                                                                                        
    • Due to limited resources/scarcity of resources
    • Due to unlimited nature of human wants
    • Due to different prices of goods
    • Due to different preference of the consumer
  1. Advantages of sole proprietorship
    • Its easy to make decisions
    • No disagreements as regards to decision making/fast decision making process.
    • There’s motivation and self confidence.
    • No sharing of profits
    • Requires small amount capital to start
    • Easy and fast to change the form of business to another (1 x 4 = 4mks)
  1. Benefits of engaging in business.
    • Extraction
    • Manufacturing
    • Labour
    • Construction                                 (1 x 4 = 4mks)
    • Receipt
    • Credit note
    • Advice note
    • Letter of inquiry (specific inquiry)
  1. Gaps in society that may give rise to a business opportunity
    • In availability of product
    • Poor services
    • High prices charged
    • Insufficient quantities of the product
    • Inappropriate quality of goods
  1. Office machines
    • Composite machine
    • Facsimile/ fax machine
    • Duplicating machine
    • Banking machine
  2. Features of departmental stores
    • Offer variety / wide range of goods
    • Sell their goods at relatively lower prices
    • They are attractive / convenient to shop in
    • Usually situated in town centres
    • Each department is managed by a departmental manager
  1. Reasons why business exist in the society
    • Create employment
    • Utilize resources
    •  Improve the living standards
    • Generate income
    • Utilize free time
    • Provide goods and services.
    • For self activation
    • As a hobby
  2. Types of partners.    
    • Real
    • Active
    • Quasi
    • General
    • Limited
    • Sleeping
    • Major
    • minor                                                  (1 x4 =4mks)        
  1. Rewards of the factors of production
    •  Limestone      -           Rent                                                   
    • Doctor            -           Wages/salaries
    • Tractor           -           Interest           
    • Landlord         -           profit  (1x4 = 4mks)
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