Business Studies Questions and Answers - Form 2 End Term 3 Exams 2021

BUSINES FORM TWO
END TERM 3

SECTION A

1. Highlight four unethical issues in product promotion. (4mks)
2. State four occupations that a person may engage in, in the primary level of production. (4mks)
3. For each of the features given below, indicate with a tick (v) whether it relates to a public limited company or private limited company. (5mks)
   

   Features	Public Ltd	Private Ltd
   Can advertise shares
   Unlimited number of members
   Minimum of seven members
   Restrict transfer of shares

4. The management of Kazikwavijana enterprise is contemplating coming up with a new office block. Name five reasons why they should adopt an open office layout. (5mks)
5. Classify the following goods as either consumer or producer goods.
   

   Goods	Classification
   Matatu
   Personal Radio
   Factory
   Clothes
   Jembe
   Shoes

6. Indicate the type of Advertising Described in the table below. (4mks)
   

   Description	Type of advertising
   Creates awareness of the product
   Popularizes business organization
   Persuades consumer to buy the product
   Reminds consumer that the produt is in the market

7. Highlight four circumstances under which cash is preferable as a means of payments(4mks)
8. Write the following in full; (3mks)
   1. C. W. O
   2. C. O. D.
   3. I. O. U
9. Highlight four roles played by insurance in an economy. (4mks)
10. Creditor may not accept personal cheques for fear that they might be dishonored. Outline five reasons why a cheque may be dishonored. (5mks)
11. Muthiora a businessman has a building worth Ksh. 2,000,000 which he insured against Fire for Ksh. 1,500,000. The3 buliding was gutted down by accidental fire and the remains were valued at Ksh. 600,000. Calculate the amount of compensation Muthiora got from the insurance company. (4mks)
12. State two acts of parliament that are meant to protect consumers from exploitation. (2mks)

SECTION B

13. Explain five disciplines covered in Business studies. (10mks)

14. Discuss the five essentials of Effective communication. (10mks)

15. Explain any three principles of insurance. (6mks)

MARKING SCHEME

SECTION A

1. Highlight four unethical issues in product promotion. (4mks)
   
   • Cheating on performance of the product.
   • Not disclosing side effects.
   • Cheating on ingredients of the product.
   • Maligning competitors products
2. State four occupations that a person may engage in, in the primary level of production. (4mks)
   
   • Mining
   • Fishing
   • Farming
   • Lumbering
   • Gathering wild fruits
   • Hunting
3. For each of the features given below, indicate with a tick (v) whether it relates to a public limited company or private limited company. (5mks)
   

   Features	Public Ltd	Private Ltd
   Can advertise shares	√
   Unlimited number of members	√
   Minimum of seven members	√
   Restrict transfer of shares		√

4. The management of Kazi kwa vijana enterprise is contemplating coming up with a new office block. Name five reasons why they should adopt an open office layout. (5mks)
   
   • Easy supervision of workers.
   • Construction costs are low.
   • Easy location of workers.
   • Maintenance costs are low.
   • Discourages staff absenteeism.
5. Classify the following goods as either consumer or producer goods.
   

   Goods	Classification
   Matatu	producer
   Personal Radio	consumer
   Factory	producer
   Clothes	consumer
   Jembe	producer
   Shoes	consumer

6. Indicate the type of Advertising Described in the table below. (4mks)
   

   Description	Type of advertising
   Creates awareness of the product	information
   Popularizes business organization	institutional
   Persuades consumer to buy the product	competitive
   Reminds consumer that the produt is in the market	Reminder

7. Highlight four circumstances under which cash is preferable as a means of payments(4mks)
   
   • When its is the only means available
   • When its the policy of the business
   • It is also preferable for small transactions
   • When credit of customer is in question
8. Write the following in full; (3mks)
   1. C. W. O- Cash with order
   2. C. O. D. - Cash on delivery
   3. L. O. U - I owe you
9. Highlight four roles played by insurance in an economy. (4mks)
   
   • Creates confidence to business people as they carry out businesses
   • Creates employment
   • Source of revenue to the government.
   • Offers protection to individual/organization against financial loss.
10. Creditor may not accept personal cheques for fear that they might be dishonored. Outline five reasons why a cheque may be dishonored. (5mks)
    
    • The drawer has stopped payment.
    • Insufficient fund in the account.
    • The account has been closed by the account holder. Amount in words differ with amount in figures.
    • Signature differs with the specimen signature in the bank.
11. Muthiora a businessman has a building worth Ksh. 2,000,000 which he insured against Fire for Ksh. 1,500,000. The3 buliding was gutted down by accidental fire and the remains were valued at Ksh. 600,000. Calculate the amount of compensation Muthiora got from the insurance company
    • Compensation = policy value X Loss
                              Value of the building
                         = 1,500,000 X 1,400,000
                                    2,000,000
                          = Ksh. 1,050,000
12. State two acts of parliament that are meant to protect consumers from exploitation. (2mks0
    
    • Weight and measures Act.
    • Rent and Tribunal act
    • Foods and drugs act
    • Public health act

SECTION B

13. Explain five disciplines covered in Business studies. (10mks)
    
    • Commerce – study of trade and aids to trade
    • Economics – study of how human beings strive to satisfy their unlimited wants using limited resources.
    • Office practice – Study of activities that are carried out in an office.
    • Accounting – Systematic way of recording transaction in monetary terms in a set of records.
    • Entrepreneurship – process of identifying business opportunity and acquiring the necessary resources to staff and run the   business
14. Discuss the five essentials of Effective communication. (10mks)
    
    • The sender / communicator – person from whom the message originate. The encoder of the message.
    • Message – the information to be sent / the subject matter of communication in forming symbols words, pictures.
    • Medium / Channels – means through which the message is to be sent.
    • The receiver – person or people for whom the message is introduced
    • Feed back – reaction of the receiver to the message.