Business Studies Questions and Answers - Form 2 Term 1 Opener Exams 2022

BUSINESS
INSTRUCTIONS:

Answer all questions in the spaces provided

State the term given to each of the following descriptions (4mks)
1. Study of activities that are carried out in an office……………………………………
2. Study of the process of identifying a business opportunity, acquiring the resources to
  Start and run a business………………………………………………………………
3. Study of trade and aids to trade………………………………………………………
4. Study of a systematic record keeping……………………………………………….
High light four reasons why a business plan is necessary to an entrepreneur (4mks)
State four characteristics of economic resources (4mks)
Highlight four factors an organization would consider when an office layout (4mks)
Classify each of the following as renewable or non-renewable resource (4mks)
1. Wool.............................................................
2. Lead...............................................................
3. Soda ash..........................................................
4. Natural gas......................................................

Identify the office etiquette described in the following statements. (4marks)

	Statement	Office Etiquette
a	Handling people politely, pleasantly and with consideration
b	Being committed to the organization one is working for
c	Performing duties with excellence,precision and correctness
d	Ability to keep time in attending duties and appointments

Outline the way through which each of the following types of utility may be created in production. (4marks)
1. Time utility:
2. Form utility:
3. Pace utility
4. Possession utility
Highlight four reasons why a consumer should satisfy basic wants before secondary wants. (4mks)
Outline four external business environments that may affect the performance of the business. (4mks)
Name the documents that each of the following descriptions refer to. (4mks)
1. Used to correct an overcharge on an invoice ………………………………………….
2. Used to alert the buyer that the seller received an order………………………………..
3. It is used to inquire for goods…………………………………………………………..
4. It is used to organize for transportation of goods between a seller and a public carrier.
Give four characteristics of indirect production (4 marks)
Under what four circumstances would cheque payment be preferred most than cash payment? (4mks)
State four characteristics of a departmental store. (4mks)
State any four factors that can contribute to the success of business in a certain area (4mks)
Outline four features of a service. (4mks)
Highlight four features of a good filing system. (4 marks)
Outline any four roles of an entrepreneur in production. (4 marks)
As a student of business studies give two benefits you can get from learning the subject (2 Marks)

Marking Scheme

1. Office practice
2. Entrepreneurship
3. Commerce
4. Accounting
Importance of a business plan
- Show amount of finance required
- Motivates employees
- It is a requirement by financiers
- Helps in avoiding mistakes
Identifying strengths and weaknesses
- Determines how resources are allocated
- Helps in adaptability of the business
- Characteristics of economic resources
- They are scarce/limited in supply
- Have monetary value
- Not evenly distributed in all regions
- Have utility
- Have multiple uses
- Are transferable from persons to persons
- Can be combined in proportion
Factors to consider when choosing office layout
- Capital required
- Number of employees
- Cost of maintenance
- Area covered
- Nature of the organization
- Government policy/law
Renewable and non-renewable resources
- Renewable
- Non- renewable
- Renewable
- Non-renewable

Identify the office etiquette described in the following statements.

	Statement	Office Etiquette
a	Handling people politely, pleasantly and with consideration	courtesy
b	Being committed to the organization one is working for	loyalty
c	Performing duties with excellence,precision and correctness	accuracy
d	Ability to keep time in attending duties and appointments	punctuality

way through which each of the following types of utility may be created in production. (4 marks)
- Time utility: when goods are stored for future use
- Form utility: goods are processed to more usable state
- Pace utility: goods are transported from where they are produced to where they are needed
- Possession utility:goods are traded or exchanged for other goods or for money
Reasons why a consumer should satisfy basic wants before secondary wants.
- Basic human wants are essential for survival/consumer cannot do without them.
- Consumer have limited resources
- Basic human wants can’t be postponed.
- All basic human wants are felt needs. ( any 4 x 1 = 4mks)
External environment
- Legal political environment
- Economic environment
- Demographic environment
- Physical environment
- Competitive environment
- Technological environment
1. Credit note
2. Acknowledgment note
3. Letter of inquiry
4. Consignment note
Characteristics of indirect production
- Low quantity production
- Low quality production
- Encourages individualism
- Leads to low standards of living
- Can be very tiring
- Does not encourage innovation and invention
- time wasting moving from one job to another
Circumstances under which cheque payment would be preferred most than cash payment.
- Where lump sun/huge funds are involved.
- Where security is attached on money involved in transaction.
- Incase evidence of payment is required by a business (written evidence)
- Where references are required in future for payment made.
- Incase privacy of carrying money is needed by organization/business.
- Incase it’s the policy of the business to be making payments using cheques.
Characteristics of a departmental store. (4mks)
- Offer a wide variety of goods at relatively lower prices
- They are attractive and convenient to shop in.
- They are usually situated in town centers
- They may provide services such as restaurants, reading rooms and post office.
- Each department is managed by a departmental manager dealing in a different line of goods.
Factors that contribute to the success of business (1x4)
- Good and technical skills of the owner in managing the business
- Good record keeping
- Good customer relations
- Government support
- Adopting modern technology
- Availability of market
- Little or no competition
Characteristics of a service
- Intangible
- Cannot be stored
- Quantity cannot be standardized
- Inseparable from the provider
Features of a good filing system.
- Should occupy less space/compactness
- Should be simple and easy to understand/simplicity.
- Should protect document from loss, misplacement, theft and destruction/safety.
- Should be capable of expansion/elasticity.
- Should be appropriate to the needs of the organization/suitability.
- Should not be expensive to start and to maintain/economical.
- Should be easy to retrieve information without disturbing other documents/ accessibility. (Any 4 x 1 = 4 marks)
Roles of an entrepreneur in production.
- Starts the business/project.
- Controls the production process.
- Makes the decision on what to produce and when to produce it.
- Acquires and pays for all the factors of production.
- Bears all the risks
- Enjoys the profit
- Pays all the expenses
- Owns the whole project(4 marks)
Benefits of studying business (2mks)
- Equips on with skills to start and run a business
- It is a career subject
- Helps one to understand the role of government in business.
- Assists one to appreciate the role of business in provision of goods and services
- Makes one appreciate the need for good management practices
- Helps one develop a positive attitude towards environment
- Equips one with knowledge to evaluate business performance
- helps one understand the role of communication and information technology in modern business management