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

 Instructions.

• Answer all the questions in the spaces provided.

QUESTIONS

1. State Four reasons why it is difficult to satisfy human wants. (4mks)
2. State any Five clauses contained in the memorandum of association. (5mks)
3. State the nature of the following production activities (4mks) 
   

   Activity	Nature
   (a)Flour milling
   (b)Bread baking
   (c)Cloth making
   (d)Cotton ginning

4. State Four situations that indicate existence of a business opportunity. (4mks)
5. Highlight any Four roles that are played by ethics in businesses. (4mks)
6. Identify Four roles that equipments play in an office. (4mks)
7. Outline Four circumstances under which a partnership may be dissolved. (4mks)
8. State Three ways in which government may regulate business activities. (3mks)
9. Outline the sources of capital for co-operatives. (4mks)
10. Highlight Five factors to be considered when selecting office equipment. (5mks)
11. Highlight the contents of articles of association. (4mks)
12. Give Four essential elements of transport. (4mks)
13. Highlight Five importance of transport to business. (5mks)
14. Highlight Four reasons for studying business studies in Kenya. (4mks)
15. Name Four accounting documents that are used in home trade. 
16. Identify Four elements of effective communications. (4mks)
17. Identify Four common means of verbal communication. (4mks)

MARKING SCHEME

1. State four reasons why it is difficult to satisfy human wants. (4mks)
   • Human wants are unlimited.
   • Resources to satisfy human wants are scarce.
   • Recurrent.
   • Habitual.
   • Vary in intensity and urgency.
2. State any four clauses contained in the memorandum of association. (4mks)
   • Name clause.
   • Situation clause.
   • Capital clause.
   • Objective clause.
   • Liability clause.
   • Declaration.
3. State the nature of the following production activities
   

   Activity	Nature
   (a)Flour milling	Processing.
   (b)Bread baking	Manufacturing .
   (c)Cloth making	Manufacturing.
   (d)Cotton ginning	Processing .

4. State four situations that indicate existence of a business opportunity. (4mks)
   • Unavailability of products.
   • Inadequate commodities.
   • Too high prices.
   • Poor quality product.
   • Poor services.
5. Highlight any four roles that are played by ethics in businesses. (4mks)
   • Ensures fare play in competition.
   • Ensures right s of employees are upheld
   • Ensures customers are well treated.
   • Ensures business operates in compliance with the law.
   • Ensures right people are assigned right job.
6. Identify four roles that equipments play in an office. (4mks)
   • Enables work to be done fast.
   • Enhances better quality output and more presentable.
   • Makes work easy and enjoyable.
   • Provides comfortable working experience.
   • Ensures security and effective control of work
   • Increased productivity of employees.
7. Outline four circumstances under which a partnership may be dissolved. (4mks)
   • If the partner mutually agree to dissolve the business.
   • Incase of death, insanity or bankruptcy of a partner.
   • Incase of completion of the intended purpose.
   • Incase of course orders.
8. State three ways in which government may regulate business activities. (3mks)
   • Licensing.
   • Ensuring standards.
   • Legislation.
9. Outline the sources of capital for co-operatives. (4mks)
   • Members contribution.
   • Retained profit.
   • Income from investment.
   • Income from credit facilities.
10. Highlight five factors to be considered when selecting office equipment. (5mks)
    • Cost.
    • Adaptability.
    • Durability.
    • Effect on staff morale.
    • Availability of man power.
11. Highlight the contents of articles of association. (4mks)
    • Rights of each type of shareholders.
    • Methods of calling meetings.
    • Powers duties and rights of directors.
    • Rules regarding preparation and auditing of accounts.
12. Give four essential elements of transport. (4mks)
    • Unit of carriage.
    • Methods of propulsion.
    • Ways.
    • Terminals.
13. Highlight five importance of transport to business. (5mks)
    • Linking consumers to producers.
    • Employment creation.
    • Promote specialization.
    • Making goods and services more useful.
    • Avoiding wastage.
14. Highlight four reasons for studying business studies in Kenya. (4mks)
    • Career.
    • Helps in appreciating role of government in business.
    • Helps learners to appreciate the need of ethics in business.
    • Assist learners to understand his/her environment better.
    • Assist learner to acquire self discipline and positive attitude towards work.
15. Name four accounting documents that are used in home trade.
    • Statement of account
    • Debit note
    • Payment voucher
    • Credit note
    • Receipt
16. Identify four elements of effective communications. (4mks)
    1. Sender- the one who originates the message.
    2. Message – subject matter of communication.
    3. Channel/medium-means through which the message is sent.
17. Identify four common means of verbal communication. (4mks)
    1. Face to face conversation.
    2. Telephone conversation.
    3. Paging
    4. Radio calls.