Business Studies Questions and Answers - Grade 7 End Term 2 Exams 2023 Set 1

QUESTIONS

1. Katana a trader was paid via M-pesa by one of his suppliers, he went to withdraw the money from Mpesa to cash. State three security features of Kenyan currency that he would check to ensure he is given genuine notes.. (3mks)
2. Which component of business studies involves the study of how human beings strive to satisfy endless wants by utilizing the available scarce resources?    (1mk)
3. Grade 7 learners during a group discussion on economic resources listed down some examples of economic resources. Write down any two economic resources that may have appeared in the list.   (2mks)
4. Explain the meaning of the following characteristics of economic resources.
   1. Economic resources have utility.   (2mks)
   2. Economic resource are scarce.  (2mks)
5. Goods and services are used to satisfy human needs and wants. List down any two online sources of goods and services where consumers can buy them.   (2mks)
6. There are different trading activities that take place in a business environment. Explain the trading activities below.
   
   1. Wholesale trade.    (2mks)
   2. Retail trade.      (1mks)
7. Grade 7 learners held a group discussion on good and services. State any two characteristics they mentioned on differences between goods and services.     (2mks)
8. Below is a list of economic resources contained in a poster made by grade 7 learners.
   • Vehicle
   • Minerals
   • Bankers 
   • Forest
   • Machinery
   • Drivers
     Classify them into the correct category in the table below.
     

     Human resources	Natural resources	Manmade resources
     a)
     b)

9. You have been invited to a community gathering to educate people on sustainable use of economic resources. Write down two points you would include in your speech.      (2mks)
10. Business communication is an important tool for success of any business. Explain the meaning of the following terms as used in business communication.      (2mks)
    1. Sender
    2. Receiver
11. Write down any two importance of communication in a business.   (2mks)
12. The process of creating goods and services which satisfy human wants is known as ____________________(2mks)
13. Identify any three characteristics of land as a factor of production.   (3mks)
14. Prouction of goods and services is made possible by the factors of production. Match the factors of production correctly to their rewards n the table below.       (4mks)
    

    Factor of production	Reward
    Land
    	Wages/salary
    Capital
    Entrepreneurship

15. The act of creating an artificial shortage of goods by trade to sell them at increased price in future is called _______________ (2mks)
16. The ministry of trade in the country has raised concerns about consumers being exploited by traders in the country. List down any three forms of exploitations consumers can be subjected to by traders. (3 marks)
17. The process of reaching out the potential customers to final market and inform about existence of goods and services is known as ____________________________(2mks)
18. Grade 7 learners have formed a club where they bake cakes with the aim of selling. List down any two factors they should consider when finding the market for their cakes.       (2mks)
19. ICT has become a very influential tool in Marketing in the modern society. Name any two ICT platforms that are commonly used in marketing today.    (2mks)
20. Explain the term capital as used in business.          (1mk)

MARKING SCHEME

1.  
   1. The watermark of a lions head
   2. The edge bars
   3. Word Kenya can be felt by touch
   4. Value of notes on front side can be felt by touch
2. Economics
3.  
   1. Land 
   2. Labour
   3. Capital
   4. Entrepreneural ability  (Accept any two)
4.  
   1. They can satisfy human needs and wants
   2. They are limited in supply
5.  
   1. Amazon.com
   2. Alibaba.com
   3. Jumia Kenya (Accept any other relevant option)
6.  
   1. Trade which involves buying goods in large quantities to retailers at a profit.
   2. Trade involving buying goods from wholesalers and selling in small quantities to consumers at a profit.
7.  
   1. Goods are tangible, services are intangible
   2. Goods can be stored, services cannot be stored   (Accept any other relevant option)
8. 
   

   Human resources	Natural resources	Manmade resources
   a) Bankers	Minerals	Vehicles
   b) Drivers	Forests	Machinery

9. 1. Avold pollution of environment to conserve natural resources like water
   2. Using renewable sources of energy
   3. Planting trees   (Accept any other relevant option)
10. 1. Sender-the originator or giver of the information.
    2. Receive - the person who is intended to get the message from the sender.
11. 1. Helps in decision making in business
    2. Acts as some of important information for the business..
    3. Helps in coordinating business activities
    4. Its a channel of reaching consumers
    5. Helps in establishing relationship with consumers and other business people.    (Accept any other relevant option)
12. Production
13. 1. It is fixed in supply
    2. It cannot be moved physically
    3. Its productivity varies from place to place    (Accept any other relevant option)
14.  
    

    Factor of production	Reward
    Land	Rent
    Labour	Wages/salary
    Capital	Interest
    Entrepreneurship	Profits

15. Hoarding
16.  
    1. Selling poor quality goods.
    2. Incorrect weights and measures 
    3. Avalling spoilt goods in the market
    4. Hiking prices
    5. Selling expired goods
17. Marketing.
18.  
    1. Price of the cake in relation to that of competition
    2. Tastes and preferences
    3. Age of large market
    4. Competition    (Accept any other relevant option)
19.  
    1. Social media sites like instagram and tiktok
    2. Websites like Jumi, glovo
    3. Media broadcast e.g television   (Accept any other relevant option)
20. Capital are goods that are used in the creation of other goods they are also called producer goods.