Business Studies Questions and Answers - Form 2 End Term 2 Exams 2023

1. Highlight four components of business studies.   (4 marks)
   1.  …………………………………………………………………………………..
   2. …………………………………………………………………………………..
   3. …………………………………………………………………………………..
   4. …………………………………………………………………………………..
2. State four essentials of a warehouse.   (4 marks)
   1. …………………………………………………………………………………..
   2. …………………………………………………………………………………..
   3.  …………………………………………………………………………………..
   4. …………………………………………………………………………………..
3. Highlight four small scale retail businesses with shops. (4 marks)
   1. …………………………………………………………………………………..
   2. …………………………………………………………………………………..
   3. …………………………………………………………………………………..
   4. …………………………………………………………………………………..
4. State four characteristics of economic resources. (4 marks)
   1. ………………………………………………………………………………….
   2. ………………………………………………………………………………….
   3.  ………………………………………………………………………………….
   4. ………………………………………………………………………………….
5. Outline four circumstances under which verbal communication would be preferred.    (4 marks)
   1. …………………………………………………………………………………
   2. ………………………………………………………………………………….
   3. ………………………………………………………………………………….
   4. ………………………………………………………………………………….
6. Identify the type of utility created in the following circumstances.   (4 marks)
   1. Processing and packing tea leaves in a factory ……..........................................
   2. Transporting tea from Kiambu to Nairobi……………………….......................
   3. Selling tea leaves in a shop………………………………………….................
   4. Where the retailers store tea leaves packets in his warehouse…………………
7. Outline four importance of filing in a business.   (4 marks)
   1. ………………………………………………………………………………….
   2. ………………………………………………………………………………….
   3. ………………………………………………………………………………….
   4. ………………………………………………………………………………….
8. State the documents that should be submitted to the registrar of companies for the purposes of registering a public limited company.  (4 marks)
   1. ………………………………………………………………………………….
   2. …………………………………………………………………………………..
   3. …………………………………………………………………………………..
   4. …………………………………………………………………………………..
9. Outline four circumstances in which the government may be involved in business.   (4 marks)
   1. …………………………………………………………………………………..
   2. …………………………………………………………………………………..
   3. …………………………………………………………………………………..
   4. …………………………………………………………………………………..
10. State four types of complaints that a consumer organisation may receive from consumers.   (4 marks)
    1. …………………………………………………………………………………..
    2. …………………………………………………………………………………..
    3. …………………………………………………………………………………..
    4. …………………………………………………………………………………..
11. State four internal factors that may influence a matatu business.    (4 marks )
    1. …………………………………………………………………………………..
    2. …………………………………………………………………………………..
    3. …………………………………………………………………………………..
    4. …………………………………………………………………………………..
12. Classify each of the following resources as renewable or non- renewable.   (4 marks)
    1. Silk……………………………………………………………………………...
    2. Vehicle………………………………………………………………………….
    3. Natural gas ……………………………………………………………………..
    4. Gravel …………………………………………………………………………..
13. Outline four activities that are carried out in the Nairobi securities exchange.    (4 marks)
    1. …………………………………………………………………………………..
    2. …………………………………………………………………………………..
    3. …………………………………………………………………………………..
    4. …………………………………………………………………………………..
14. Name the types of warehouses associated with each of the following statements given below.    (4 marks)
    

    Statements	Type of warehouse
    Goods can be stored before payment of custom duty
    Individuals can hire storage facilities
    Goods stored are from severalmanufacturers
    Specialised goods are stored

15. Outline four circumstances why a credit note is issued to a trader.   (4 marks)
    1. …………………………………………………………………………………..
    2. …………………………………………………………………………………..
    3. …………………………………………………………………………………..
    4. …………………………………………………………………………………..
16. State four factors that should be considered when buying an office machine or equipment. ( 4 marks )
    1. …………………………………………………………………………………..
    2. …………………………………………………………………………………..
    3. …………………………………………………………………………………..
    4. …………………………………………………………………………………..
17. Highlight four mailing services that facilitate communication.   (4 marks)
    1. ………………………………………………………………………………….
    2. ………………………………………………………………………………….
    3. ………………………………………………………………………………….
    4. ………………………………………………………………………………….
18. Outline four ways production activities may negatively impact on community health.  (4 marks)
    1. …………………………………………………………………………………..
    2. …………………………………………………………………………………..
    3. …………………………………………………………………………………..
    4. …………………………………………………………………………………..
19. Highlight four features of public corporations.  (4 marks)
    1. …………………………………………………………………………………..
    2. …………………………………………………………………………………..
    3. …………………………………………………………………………………..
    4. …………………………………………………………………………………..
20. Outline four ways in which political stability in a country is of benefit to business.  (4 marks)
    1. …………………………………………………………………………………..
    2. …………………………………………………………………………………..
    3. …………………………………………………………………………………..
    4. …………………………………………………………………………………..
21. Explain five factors that may limit the usage of railway as a means of transport.   (10 marks)
22. Explain five characteristics of an entrepreneur.   (10 marks )

MARKING SCHEME

1. Components of business studies.   (4 marks)
   1. Accounting
   2. Commerce
   3. Entrepreneurship
   4. Economics
   5. Office practise
2. Essentials of a warehouse.    (4 marks)
   1. Suitable location to facilitate receipt and issue of goods
   2. Well trained and efficient staff for proper management
   3. Proper recording system
   4. Good communication network
   5. Adequate spac
   6. Well designed to accommodate various types of goods
3. Small scale retail businesses with shops.   (4 marks)
   1. Kiosks
   2. Canteen
   3. Tied shops
   4. Single shops
   5. Market stall
   6. Mobile shops
4. Characteristics of economic resources.   (4 marks)
   1. Are scarce in supply
   2. Have monetary value
   3. Have utility
   4. Are transferable/ can change ownership
   5. Are complementary
   6. Have alternative uses
   7. Are unevenly distributed
   8. Can be combined to produce goods and services
5. Circumstances under which verbal communication would be preferred.
   1. Where immediate feedback is required
   2. When a person intends to convince or persuade the other
   3. In case of meetings, interviews or discussions
   4. Where the message is urgent
   5. Where the audience is large
   6. Where the message is confidential
   7. Where clarity is needed
6. Type of utility created    (4 marks)
   1. Form
   2. Place
   3. Possession
   4. Time
7. Importance of filing in a business.  (4 marks)
   1. Easy and retrieval of information
   2. Avails records for future reference
   3. Information is protected from damage or loss
   4. The office and the documents are kept neat and tidy
   5. Legal contracts are safeguarded
   6. Documents are protected from damages
   7. Saves on space in the office
   8. Facilitates quick decision making
8. Documents that should be submitted to the registrar of companies for the purposes of registering a public limited company.   (4 marks)
   1. Memorandum of association
   2. Articles of association
   3. List of directors
   4. Prospectus
   5. Declaration of directors
9. Circumstances in which the government may be involved in business.
   1. When a business venture requires huge capital
   2. When goods and services provided are essential to citizens
   3. If government desires to create employment opportunities
   4. Where government needs to generate revenue
   5. If there is provision of sensitive goods
   6. In case it wants to reduce foreign dominance in the country
10. Types of complaints that a consumer organisation may receive from consumers.   (4 marks)
    1. Poor quality goods and services
    2. Incorrect weight and measures
    3. Unfair pricing
    4. Poor hygienic conditions
    5. Expired goods
    6. Contrabands items / prohibited goods
    7. Hoarding
    8. Misleading advertisement
11. Internal factors that may influence a matatu business.   (4 marks)
    1. Business structure / management styles
    2. Employees such as drivers, conductors and managers
    3. Capital / business resources
    4. Owner’s objectives
    5. Condition of the vehicle
    6. Business culture
    7. Technology in use
    8. Research and development
    9. Marketing strategy /handling of customers
12. Classification of resources.   (4 marks)
    1. Renewable
    2. Renewable
    3. Non –renewable
    4. Non –renewable
13. Activities that are carried out in the Nairobi securities exchange.  (4 marks)
    1. buying and selling of shares
    2. Listing of companies
    3. Fixing market share prices
    4. Unlisting of companies
    5. Advising the investors
    6. Mobilising savings for investment
    7. Transfer of securities
    8. Providing information on the country’s economic performance
14. Types of warehouses include;
    1. Bonded
    2. Public
    3. Wholesalers’
    4. Manufacturers’
15. Circumstances why a credit note is issued to a trader.  (4 marks)
    1. When some unordered goods that were delivered to customer were returned
    2. If there was an overcharge in the invoice
    3. In case empty containers and packing cases whose values were included in the invoice were returned
    4. In case of defective items are returned
16. Factors that should be considered when buying an office machine or equipment.  (4 marks)
    1. Initial cost and maintenance cost
    2. Durability / lifespan of the machine
    3. Adaptability /ability to multitask
    4. Viability of hiring instead of purchasing
    5. Need for staff retraining
    6. Availability of complementary resources such as electricity
17. Mailing services that facilitate communication.  (4 marks)
    1. Business reply services
    2. Registered mail
    3. Poste restante
    4. Speed post
    5. Express mail
18. Ways production activities may negatively impact on community health.
    1. Air pollution which causes air borne diseases
    2. Water pollution
    3. Noise pollution
    4. Solid pollution
    5. Environmental degradation
    6. Occupational hazards
    7. Social evils
    8. Global warming
19. Features of public corporations.   (4 marks)
    1. Formed / created under act of parliament
    2. They fall under specific ministries of the government
    3. Are not meant for profit maximization
    4. They are meant to provide essential services
    5. The government appoints their board of directors
    6. They have full limited liabilities
    7. They have their own legal entities separate from the government
    8. Dissolution is only through act of parliament
20. Ways in which political stability in a country is of benefit to business
    1. It would access raw materials with ease
    2. It would attract the kind of labour it requires with ease
    3. The general security of the business would be assured
    4. It would access market easily
    5. Production activities would not be disrupted
    6. The cost of doing business would be low
    7. It would be secure to invest in any part of the country
21. Factors that may limit the usage of railway as a means of transport.
    1. High cost- railway transport is an expensive venture requiring huge investment / not affordable
    2. Existence of road network which brings competition to the use of railway
    3. Poor management – railway transport has been poorly run hence stagnation
    4. Little government commitment- the government has committed its resources on other forms of transport
    5. Speed – its relatively slow rendering it inappropriate for carrying certain goods
    6. Lacks competition from another railway line making it operate like a monopoly
22. Characteristics of an entrepreneur. ( 10 marks )
    1. Desire to achieve – has the wish to excel and the drive to succeed while competing with others / tries to accomplish something new
    2. Ability to solve problems – struggles with determination to get solutions even under difficult situations
    3. Readiness to take risks but assesses and takes calculated risks to gain more profits
    4. Time consciousness – should observe punctuality in attending duties and appointment / avoid wasting time
    5. Self-confidence – having strong belief in himself or herself
    6. Creativity and innovation – ability to generate new ideas as well as think of best ways of putting them into practise