Business Studies Questions and Answers - Form 3 Mid Term 1 Exams 2023

Share via Whatsapp
  • Answer all questions in the spaces provided in this booklet
  1. Outline the benefits that John a student would get from studying business studies. (4mks)
  2. Outline four barriers to effective communication. (4mks)
  3. State four characteristics of a successful entrepreneur . (4mks)
  4. State the type of human wants one would satisfy in each of the following. (4mks)
    1. A tourist going to Maasai Mara National  Park_________________________________________
    2. Cooking food for school children___________________________________
    3. Playing football_________________________________________________
    4. Putting on clothes_______________________________________________
  5. State four reasons why a form four leaver would want to start a business
  6. Outline four features of liners in sea transport. (4mks)
  7. Outline four advantages of a bonded warehouse to the importer
  8. State four features of land as a factor of production. (4mks)
  9. Identify four limitations that make consumer-initiated methods ineffective in protecting consumers in Kenya (4mks)
  10. Outline the rewards of each of the following resources. (4mks)
       Resource  Reward 
     (a)  Carpenter  
     (b)  Fertile soil  
     (c)  Investor  
     (d)  Machinery  
  11. James is a manufacturer and a distributor of building materials. Outline four types of insurance policies that he may take for his business (4mks)
  12. Highlight four ways in which a business idea can be implemented (4mks)
  13. Highlight four characteristics of chain stores.                                                  (4mks)
  14. State four importance of communication to a business                                                    (4mks)
  15. Below are some factors that influence the operations of a business. Indicate whether the factor is associated with internal or external environment.
       Factor  Environment 
     (a)  Demographic  
     (b)  Business culture  
     (c)  Business policies and styles  
     (d)  Competitors  
  16. Outline four duties of commercial attachees (4mks)
  17. Outline four circumstances under which cash in order may be used. (4mks)
  18. Highlight four advantages of containerization (4mks)
  19. Outline four features of services. (4mks)
  20. Traders have been complaining about poor services delivery in Wakulima warehouse. Give four reasons for this (4mks)
  21. Explain five advantages of a sole proprietorship business. (10mks)
  22. Explain five ways in which the working environment in the office can be improved          (10 marks)


  1. Benefits of studying business studies include. (4mks)
    1. He acquire knowledge and skills that enables him run business
    2. He would appreciate the role of business in provision of goods and services
    3. He would appreciate the need of ethical practice and efficient business management.
    4. He would the role of government in business activities.
    5. He would understand the role of communication and information technology in modern business management.
    6. He would acquire self-discipline and positive attitude toward work.
    7. He would get a firm foundation for further education and training
    8. He would develop positive environmental and health practice
  2. Barriers to effective communication. (4mks)
    1. Language barrier
    2. Poor listening skills
    3. Poor timing
    4. Negative attitude
    5. Prejudice
    6. Noise
    7. Lack of confidence
  3. Characteristics of a successful entrepreneur. (4mks)
    1. Should be good oriented
    2. Should be confident
    3. Should be able to network
    4. Should have desire to achieve
    5. Should be a problem solver/ability to solve problem
    6. Should be ready to take risk
  4. Human wants one would satisfy. (4mks)
    1. Secondary
    2. Basic
    3. Secondary
    4. Basic
  5. Reasons for starting a business. (4mks)
    1. To generate income/profit
    2. To create employment for himself/herself and others
    3. To provide goods/service to the people
    4. To utilize the available resources
    5. To channel his creativity/ innovativeness
    6. To utilize his leisure time/keep himself busy
  6. Features of sea liners in sea transport include: (4mks)
    1. They ferry passengers or cargo
    2. Follow a regular time table/schedule
    3. Call at port at regular intervals
    4. Follow a regular route
    5. Form conferences to protect themselves against unfair competition
    6. Charge fixed freightage and fare regardless of demand
  7. Advantages of a bonded warehouse to the importer. (4mks)
    1. Helps importer to prepare goods for sale
    2. Secure goods against risks like theft
    3. Importer can look for market when good are still in the bonded warehouse 
    4. Importer can look for money to pay custom duty.
    5. Burden of paying custom duty goes to the new buyer if goods sold while still in the bonded warehouse
    6. Quality of goods and wine improves fetching higher prices
  8. Features of land as factor of production include: (4mks)
    1. It is geographically immobile
    2. Supply of land is fixed
    3. It’s a basic factor of production
    4. It’s a natural resource
    5. Its fertility/productivity differs from one place to another.
    6. The reward of land is rent, rates and royalties
  9. Limitations that make consumers’ initiated methods ineffective in protecting consumers in Kenya.    (4mks)
    1. Lack of proper registration on consumer protection
    2. Poor funding to undertake their operations
    3. Poor /inadequate /government support
    4. Ignorance by consumers on existence of avenues to follow to ensure they are not exploited
    5. Lack of adequate information by consumers about their rights.
    6. Majority of consumers buy goods individually.
    7. Lack of strong bodies for collective bargaining
    8. Emergence of vigilante groups.
  10. Rewards of the resources as used in production include: (4mks)
    1. Wages
    2. Rent
    3. Profit
    4. Interest
  11. Types of insurance policies include: (4mks)
    1. Burglary or theft policy
    2. Motor vehicles insurance
    3. Fire policy
    4. Goods on transits policy
    5. Employer’s liability policy/workman’s compensation policy
    6. Fidelity guarantee policy
    7. Consequential loss/loss of profit policy
    8. Glass plate or showroom policy
    9. Bad debtors’ policy.
  12. Ways of implementing a business idea. (4mks)
    1. Creating a new good
    2. Improving on existing good
    3. Improving the process of production
    4. Improving the marketing strategies
    5. Offering unique services
    6. Improving quality of services
    7. Improve quality of goods
  13. Characteristics of chain stores include: (4mks)
    1. Made up several shops located in different places but all owned by one management
    2. Branches are coordinated from a head office
    3. The branches have similar outlooks
    4. The branches sell similar goods
    5. Their prices are standardized in all branches
    6. Buying of stock is done collectively for all branches
    7. The promotional activities are collectively done for all branches
  14. Importance of communication to a business. (4mks)
    1. Promote public relations
    2. Help people in charge to issue instructions
    3. Helps to clarify issues
    4. Enable coordination of business
    5. Help to enhance the image of the business
    6. Leads to improved production in business
    7. Help to promote interpersonal relationships in business
    8. Lead to provision of better services to the customers
  15. Types of business environment. (4mks)
    1. External
    2. Internal
    3. Internal
    4. External
  16. Duties of commercial attachees. (4mks)
    1. Identifying markets for their countries products.
    2. Evaluating the performance of their country’s products
    3. Advising traders on standards and legal requirements of products in foreign countries.
    4. Developing trade agreements between their countries and foreign countries.
    5. Organizing trade fairs and exhibitions for their country’s products in foreign countries.
  17. Circumstances under which cash with order may be used include: (4mks)
    1. When the business is conducted through past/mail order business
    2. Where the buyer is new
    3. Where the buyer’s credit worthless is in doubt 
    4. When the seller’s policy is not to advance credit
    5. When the seller wants to avoid the high cost of debt collection.
    6. When the seller needs working capital
    7. When the seller want to avoid debtors’ record maintenance 
  18. Advantages of containerization include: (4mks)
    1. Reduces incidences of pilferage and damage of goods since handling of goods is limited
    2. Loading and off-loading of goods is highly mechanized hence containerized goods are handled quickly thus saving time 
    3. Containers carry big quantities of goods than if goods are stored on the floor of the ship thus saving space
    4. Because of the enhance security of the goods the insurance premiums are low
    5. Packing cost are minimized since goods are packed at the factory usually using conveyor belts.
    6. Special containers can be made to facilitate carriage of special goods
  19. Features of services. (4mks)
    1. Are intangible
    2. Can’t be stored
    3. Can only be experienced or felt.
    4. Inseparable from the service provider
    5. Highly perishable
  20. Reasons about poor services in Wakulima warehouse. (4mks)
    1. Unsuitable poor location that inconvenience the trader
    2. Inappropriate equipment
    3. Not secure/poor security system
    4. Inadequate space
    5. Poor inventory central system
    6. Lack of clear procedure leading to delay in receiving goods
    7. Untidy environment
    8. Lack of specialized facilities to store special goods
    9. Not adhering to government policy/strong illegal goods 
  21. Advantages of running a sole proprietorship business. (10mks)
    1. It is easy to form because only a trading license required to start a sole proprietorship
    2. Quick decision making due to lack of consultation
    3. They are flexible since one can easily adapt to the changes in the market due to quick decision making.
    4. The owner enjoy all profits because there is no sharing
    5. The owner is able to maintain business secrets which enhances confidentiality
    6. The owner is able to offer personalized services to the customers due to personal contact
    7. The sole trader is accountable to himself/herself and thus he/she enjoyed freedom and prestige
  22. Ways in which the working environment can be improved. (10mks)
    1. Provision of proper and adequate lighting
    2. Maintaining tidiness in the office/cleanliness
    3. Provision of adequate space of working
    4. Provision of proper ventilation
    5. Provision of relevant furniture and equipment
    6. Beautifying the office to give it a pleasant appearance
    7. Provision of smoking zones
    8. Discourage unnecessary noise
    9. Provision of adequate furniture and equipment
    10. Provision of welfare facilities (tea, lunch, music)
    11. Provision of special facilities for disadvantaged

Download Business Studies Questions and Answers - Form 3 Mid Term 1 Exams 2023.

Tap Here to Download for 50/-

Why download?

  • ✔ To read offline at any time.
  • ✔ To Print at your convenience
  • ✔ Share Easily with Friends / Students

Join our whatsapp group for latest updates
Get on WhatsApp Download as PDF
Subscribe now

access all the content at an affordable rate
Buy any individual paper or notes as a pdf via MPESA
and get it sent to you via WhatsApp


What does our community say about us?

Join our community on:

  • easyelimu app
  • Telegram
  • facebook page
  • twitter page
  • Pinterest