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

QUESTIONS

1. State four sources of capital for a sole proprietorship business. (4mks)
2. State four advantages of open office layout.(4mks)
3. Identify four clauses constituent in the memorandum of association. (4mks)
4. State four principles governing the operations of co-operative societies. (4mks)
5. Highlight four circumstances under which a cheque may be dishonored. (4mks)
6. State four roles of office in an organisation.(4mks)
7. State four roles of Nairobi stock exchange market as a market for securities. (4mks)
8. State four characteristics of basic human wants. (4mks)
9. Identify the utility created by the following activities. (4mks)
   
   1. manufacturing___________________________________
   2. transport_______________________________________
   3. warehousing____________________________________
   4. trade__________________________________________
10. Match the four factors of production with their respective rewards.(8mks)
11. State four services rendered by retailers to consumers. (4mks)
12. Give four elements that makes up the internal business environment. (4mks)
13. Highlight any four uses of computer in an office. (4mks)
14. Identify the four essential elements of transport.(4mks)
15. State four disadvantages of air transport. (4mks)
16. State four factors to consider when selecting means of transport. (4mks)
17. Name the two types of shares.(2mks) 

MARKING SCHEME

1. State four sources of capital for a sole proprietorship business. (4mks)
   
   • Inheritance
   • Personal savings
   • Getting goods on credit
   • Getting goods on hire purchase
   • Leasing or renting out one’s properties
   • Donations from friends and relatives
   • Ploughing back profit.
   • Borrowing from friends
2. State four advantages of open office layout.(4mks)
   
   • Easy supervision of workers
   • Construction cost is low because partitions are few
   • Easy location of workers
   • Staff movement is minimized thus saving time on passing communication
   • Workers make good use of office machinery and equipment since close supervision discourages them from misusing them
   • Maintenance cost is low
   • Floor space is saved
   • Its cheap to decorate
3. Identify four clauses constituent in the memorandum of association. (4mks)
   Capital clause
   Situation clause
   Declaration clause
   Liability clause
   Objects clause
4. State four principles governing the operations of co-operative societies. (4mks)
   Open and voluntary membership
   Democratic Administration
   Dividend or repayment
   Limited interest on share capital
   Promotion of Education
   Co-operation with other co-operatives
5. Highlight four circumstances under which a cheque may be dishonored. (4mks)
   
   • Insufficient funds
   • Signature differing
   • Post dated cheque
   • Stale cheque – presented six months after issue
   • Drawer closed account with the bank
   • Death, insanity or bankruptcy of the drawer
   • Alterations in the cheque
     (the answer should start with either; ‘if’, ‘when’ or ‘where’)
6. State four roles of office in an organisation.(4mks)
   Receiving and recording information
   Distribution of information
   Mailing
   Reproduction of document
7. State four roles of Nairobi stock exchange market as a market for securities. (4mks)
   
   • Facilitates buying of shares-
   • Facilitates selling of shares
   • Safeguarding investors’ interests
   • Provides useful information
   • Assist companies to raise capital
   • Creation of employment
   • Raising revenue for the government.
   • Availing a variety of securities
   • Fixing of prices
   • Measures a country’s economic progress
   • Promotes the culture of saving
8. State four characteristics of basic human wants. (4mks)
   One cannot do without them
   They are satisfied before secondary wants
   They cannot be postponed
   They are felt needs
9. Identify the utility created by the following activities. (4mks)
   
   1. manufacturing…..form
   2. transport…..place
   3. warehousing..…time
   4. trade___possesive
10. Match the four factors of production with their respective rewards.(8mks)
    

    Factor	Reward
    (i)land (ii)labour (iii)entrepreneurship (iv)capital	Rent/rates Salaries/wages profit interest

11. State four services rendered by retailers to consumers. (4mks)
    Availing a variety of goods
    Credit facilities
    Advice
    Breaking bulk
    After sales services
12. Give four elements that makes up the internal business environment. (4mks)
    Owners
    Business structure
    Business culture
    resources
13. Highlight any four uses of computer in an office. (4mks)
    Communication
    Complex accounting
    Storing staff information
    Preparation of documents
    (Any other relevant answer)
14. Identify the four essential elements of transport.(4mks)
    Unit of carriage
    Method of propulsion
    Terminal
    ways
15. State four disadvantages of air transport. (4mks)
    
    • Causes noise pollution
    • Air fields are not available in all places
    • Cannot be conveniently used to carry heavy and bulky goods
    • Expensive to acquire and maintain aircrafts
    • Requires highly trained manpower e.g. air traffic controllers, pilots e. t. c
    • Unfavorable weather conditions such as fog, mist and heavy rains smay cause delay
    • It is an expensive means of transport in terms of freight charges
    • Not suitable for transporting inflammable goods such as cooking gas and petrol
    • In case of accidents results are catastrophic/ accidents are rare but fatal.
    • Has limited carrying capacity which should not be exceeded.
    • It is not flexible.
    • Most air fields/ terminals are located some distance away from town/ city centers and therefore require transport or railway links that are affected by jams occasionally causing delays.
    • Recent hijackings by terrorists have made air transport an insecure means especially for transporting valuables.
16. State four factors to consider when selecting means of transport. (4mks)
    Cost
    Distance
    Urgency
    Availability of the means
    Security
    Nature of goods
17. Name the two types of shares.(2mks)
    Preference shares
    Ordinary shares