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

QUESTIONS

Instructions:
Answer all the questions in the spaces provided

1. Outline four sources of capital for sole proprietorship. (4mks)
2. Outline four circumstances under which a partnership maybe dissolved. (4mks)
3. State four methods initiated by the government to protect consumers. (4mks)
4. Outline four disadvantages of trains as a means of transport. (4mks)
5. State four factors to consider when choosing a means of transport. (4mks)
6. Outline four principles of a cooperative. (4mks)
7. List four types of partners. (4mks)
8. Define the term amalgamation. (2mks)

MARKING SCHEME

Instructions:
Answer all the questions in the spaces provided

1. Outline four sources of capital for sole proprietorship. (4mks)
   • Borrowing from banks, friends and non-banking financial institutions.
   • Inheritances
   • Donations from friend and relatives
   • Credit buying
   • Ploughing back profits
   • Leasing and renting out property.
2. Outline four circumstances under which a partnership maybe dissolved. (4mks)
   • If the owner decides to dissolve the business.
   • In case of death, insanity or bankrupt of the owners.
   • Where the intended purpose is completed.
   • Where the courts orders the business to be dissolved.
3. State four methods initiated by the government to protect consumers. (4mks)
   • Setting up standards for the good consumed
   • Weight and measure act
   • Licenses are provided
   • Food and drugs act
   • Trade description, act/sale of goods act
   • Public heath act
   • Price control
   • Rent and tribunal act
4. Outline four disadvantages of trains as a means of transport. (4mks)
   • Not flexible as trains follow a strict time table.
   • Expensive to construct and maintain
   • Not all areas are served by railways lines.
   • Not suitable for transporting perishable and urgently required goods as it is slow.
   • Not convenient for short distance.
   • Expensive to acquire a train and maintain it.
5. State four factors to consider when choosing a means of transport. (4mks)
   • Cost
   • Nature of goods
   • Reliability
   • Urgency
   • Security
   • Distance
   • Availability of means
   • Flexibility
   • Terminals
6. Outline four principles of a cooperative. (4mks)
   • Voluntary and open membership
   • Democratic administration
   • Limited interest on share capital
   • Cooperation with other cooperatives
   • Promotion of education to members.
   • Promotion of dividends to members.
7. List four types of partners. (4mks)
   • Role played by partners
   • Liabilities of the partners for business debts
   • Ages of partners
   • Capital contribution.
8. Define the term amalgamation. (2mks)
   • Joining of two or more companies to form one big company.b