Business Studies Questions and Answers - Form 2 Mid Term 1 Exams 2023

INSTRUCTIONS:   

• ANSWER ALL THE QUESTIONS IN THE SPACES PROVIDED

1. State four disciplines that make up business studies. (4mks
2. Outline four ways in which a seller may reply to a letter of inquiry. (4mks)
3. State four characteristics of a good filing system. (4mks)
4. From the factors given below, state whether the factor constitute internal or external environment of a business. (4mks)
   

   Factor	Environment
   a) Social beliefs
   b) Owners
   c) Interest rates
   d) Business physical facilities

5. Identify four sources of business ideas. (4mks)
6. Outline four characteristics of secondary wants. (4mks)
7. Outline four features of a supermarket. (4mks)
8. Outline four reasons that would make an entrepreneur to prepare a business plan. (4mks)
9. Highlight four characteristics of goods. (4mks)
10. Indicate the factors of production that each of the following refer to: (4mks)
    1. Waiter of the hotel ----------------------------------------------------------
    2. Water harvested from the rain---------------------------------------------
    3. The hotel manager-----------------------------------------------------------
    4. Cash register used by the cashier------------------------------------------
11. Outline four benefits of a well laid out business structure. (4mks)
12. Outline four ways in which goods are prepared for sale. (4mks)
13. State four categories of economic resources. (4mks)
14. Highlight four characteristics of a successful entrepreneur. (4mks)
15. State four duties of a receptionist in an office. (4mks)
16. State four natural sources of energy in Kenya. (4mks)
17. State four types of small-scale retail businesses that one can start without a shop. (4mks)
18. State the meaning of the following main types of business activities. (4mks)
    1. Trade ------------------------------------------------------------------------------------
    2. Manufacturing--------------------------------------------------------------------------
    3. Distribution of goods------------------------------------------------------------------
    4. Processing of raw materials-----------------------------------------------------------
19. Outline four features of indirect production. (4mks)
20. State four importance of entrepreneurship in Kenya. (4mks)
21. Explain five advantages of an open plan office. (10mks)
22. Explain five importance of trade. (10mks)

MARKING SCHEME

1. State four disciplines that make up business studies.     (4mks)
   1. Economics
   2. Commerce
   3. Entrepreneurship
   4. Office practice
   5. Accounting
2. Outline four ways in which a seller may reply to a letter of inquiry.    (4mks)
   1. Pricelist
   2. Quotation
   3. Catalogue
   4. Tender
3. State four characteristics of a good filing system.                          (4mks)
   1. Should be compact
   2. Should be accessible
   3. Should be safe
   4. Should be simple
   5. Should be economical
   6. Should be flexible
   7. Should be suitable
4. From the factors given below, state whether the factor constitute internal or external environment of a business.            (4mks)
   

   Factor	Environment
   a) Social beliefs	External
   b) Owners	Internal
   c) Interest rates	External
   d) Business physical facilities	Internal

5. Identify four sources of business ideas.                                                           (4mks)
   1. Print media
   2. Electronic media
   3. Vocational training and experience
   4. Hobbies
   5. Listening to what people say
   6. Brainstorming 
   7. Shows and exhibitions
   8. Spotting a market gap / niche
   9. Business seminars/ workshops
   10. Research and development / surveys
6. Outline four characteristics of secondary wants.                                              (4mks)
   1. One can survive without them 
   2. They are satisfied after basic wants
   3. They make a person’s life more comfortable
   4. They are competitive
7. Outline four features of a supermarket.                                                               (4mks)
   1. They are run on self -service system.
   2. All items have price tags
   3. They don’t sell on credit
   4. They don’t transport goods to customer’s premises.
   5. They sell a wide variety of stock
   6. Their prices are fixed
   7. They require large amounts of capital to start and run.
8. Outline four reasons that would make an entrepreneur to prepare a business plan.  (4mks)
   1. To foresee and avoid mistakes that could be committed in the future.
   2. To identify strength and devise ways of dealing with weakness of the business.
   3. It’s a requirement by financiers.
   4. To help determine required resources and allocate them appropriately.
   5. To enable an entrepreneur identify potential market.
   6. To use it as a motivational tool.
9. Highlight four characteristics of goods.                                                          (4mks)
   1. They are tangible
   2. They can be stored
   3. They are visible 
   4. They can change ownership
   5. Their quality can be standardized
   6. Their quality changes over time.
10. Indicate the factors of production that each of the following refer to:            (4mks)
    1. Waiter of the hotel labor 
    2. Water harvested from the rain land
    3. The hotel manager entrepreneur
    4. Cash register used by the cashier capital
11. Outline four benefits of a well laid out business structure.                              (4mks)
    1. Each of the employees knows what is expected of him/ her
    2. There will be no conflicts or confusion among the workers
    3. Team work is enhanced 
    4. Ensures proper control which in turn promotes efficiency.
12. Outline four ways in which goods are prepared for sale.                                  (4mks)
    1. Breaking bulk
    2. Blending 
    3. Branding 
    4. Sorting 
    5. Grading
    6. Packing
13. State four categories of economic resources.                                                     (4mks)
    1. Man-made / artificial resources
    2. Human resources
    3. Natural resources
    4. Renewable resources
    5. Non-renewable resources
14. Highlight four characteristics of a successful entrepreneur.                               (4mks)
    1. Innovative and creative initiative
    2. Hardworking / committed
    3. Goal oriented/ desire to achieve / high quality desires
    4. Future oriented 
    5. Self-confident
    6. Risk taker
    7. Good decision maker/ ability to solve problems
    8. Should be flexible
    9. Should be ethical
15. State four duties of a receptionist in an office.                                                    (4mks)
    1. Receiving and directing visitors
    2. Taking messages from callers and passing them on to the recipients
    3. Making or cancelling appointments
    4. Keeping a visitors’ record
    5. Dealing with simple petty cash ie. For buying newspapers, milk etc.
    6. Supervising messengers
16. State four natural sources of energy in Kenya.                                                    (4mks)
    1. Solar /sun energy
    2. Firewood /charcoal
    3. Geothermal power / steam power/ hot springs
    4. Biogas /biomass
17. State four types of small-scale retail businesses that one can start without a shop.   (4mks)
    1. Hawking /itinerant traders 
    2. Peddling 
    3. Roadside selling
    4. Open air market trading
    5. Automatic vending by use of machines
    6. Online selling
18. State the meaning of the following main types of business activities.                (4mks)
    1. Trade is buying and selling of goods with an aim of making profit
    2. Manufacturing – involves combining different raw materials to come up with one final product.
    3. Distribution of goods - are activities involved in moving goods from where they are produced to where they are needed.
    4. Processing of raw materials - means changing the form of a good without combining it with other goods.
19. Outline four features of indirect production.                                                       (4mks)
    1. Goods produced are meant for sale
    2. The quantity of goods produced is high.
    3. The production process mainly uses modern technology
    4. There is specialization in production 
    5. The production tends to produce surplus goods to be sold.
    6. The goods and services produced tend to be high quality.
    7. It is mainly done on large scale
20. State four importance of entrepreneurship in Kenya.                                          (4mks)
    1. Creation of employment
    2. Formation of capital
    3. Utilization of locally available resources
    4. Raising the standards of living of the people
    5. Increasing the variety of goods available to customers.
    6. Improved infrastructure.
    7. Promotion of technology.
    8. Reduce/ save on imports
21. Explain five advantages of an open plan office.                                                  (10mks)
    • Its easy to locate workers since they are all in one room
    • Workers can easily consult each other which promotes team work.
    • Flow of information is enhanced because all workers receive the information at once.
    • The cost of constructing is low since there are a few partitions/ subdivisions
    • There is effective use of office resources and equipment because of monitoring and sharing
    • Discourages unauthorized absenteeism because of easy detection
    • Supervision is easier because staff are in one big room and only few officers required to oversee others.
22. Explain the importance of trade.                                                                          (10mks)
    1. Enables individuals to get to get goods and services that they don’t have.
    2. Brings goods closer to the consumers
    3. Enables producers to dispose off their surplus products that could have been wasted.
    4. Enables consumers get wide variety of products.
    5. Enhances specialization and division of labor.
    6. Promotes interdependence between individuals and communities.
    7. The government gets revenue form the traders.
    8. Contributes to job creation
    9. Enhances optimal utilization of resources
    10. Creates a link between producers and consumers.