BUSINESS STUDIES Marking Scheme - Form 1 End of Term 1 2019 Examinations

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  1. Levels of production
    • Primary
    • Secondary
    • Tertiary
    • Tertiary
  1. Difficulties in satisfying all human wants
    • Wants are too many
    • There are limited resources to satisfy human wants
    • Wants keep on recurring hence insatiable
    • Wants change with time, age and gender
  1. Negative Effects of production activities
    • Air pollution
    • Water pollution
    • Noise pollution
    • Solid waste pollution
    • Congestion
    • Pressure on healthy facilities
    • Environmental degradation
    • Social evils – social immoralities
    • Occupational hazard
  1. Circumstance that make clothes one of basic human wants
    • Human beings cannot live without clothes
    • Wearing clothes cannot be postponed
    • Clothes are universal
    • One would feel cold or embarrassed without clothes
    • Clothes are worn all times
  1. Business environment associated with each of the factors
    • External
    • External
    • External
    • Internal
  1. Measures consumers may take to satisfy unlimited wants
    • A consumer has to make a choice of what goods to satisfy.
    • A customer has to prepare a scale of preferences thus prioritize his wants.
    • The customer should conserve resources since they are limited.
    • Consumer should invent new products.
  1. Advantages of division of labour.
    • Development of individual’s skill
    • Increased output
    • Use of machinery
    • Development of new talents
    • Encourage invention/innovation
    • Save time
    • Less use of mental and physical effort.
    • High quality goods/services produced
  1. Reasons that make indirect production superior to direct production
    • High quality goods and services
    • Use of machines increasing efficiency
    • Leads to specialization leading to mass production
    • Leads to greater output
    • Low cost per unit of outpu
    • High standards of living.
    • Which leads to development of skills
  2. Circumstances when the following characteristics of human wants can be observed.           
    1. Complimentary wants- where wants are simultaneous/when two or more items must be used at same time e.g. car and petrol.
    2. Habitual wants -where ones becomes addicted to a particular want/ where one develop taste/liking for a commodity so that he/she need’s to use it gain and gain.
  1. Types of utility and production activity associated with each of them.
    • Time utility                  -           Storage
    • Place utility                 -           Distribution/transportation
    • Possession utility         -           Trading/exchange
    • Form utility                 -           Manufacturing/processing
  1. Difference between human resources and manmade resources
     Human resources  Man made resources
     Cannot be stored  can be stored
     It is mobile  Some are immobile e.g. buildings 
     It is basic factor of production  It is not a basic factor of production
     Cannot e depreciated  It can be depreciated through ear and tear e.g. machinery 
  1. Factors that affect geographical mobility of a labour
    • Climatically conditions
    • Language barrier
    • Job security
    • Security of the place
    • Culture/religious difference
    • Political stability
    • Government policy (immigration laws/rules)
    • Age
    • Social amenities
    • Relative Costs of living of different regions
    • Fear of unknown social ties e.g. families





  1. Differences between goods and services
    Goods  Services
     Tangible  Intangible 
     Some can be stored  Perishable
     Can be standardized  Cannot be standardized
     Can be separated from the provider  Cannot be separated from the provider
     Price paid for ownership  Price paid for experience
     Can change in value over time  Cannot change in value over time
  1. Characteristics of subsistence production
    • All goods and services produced are for one own consumption
    • Production is carried out in small scale
    • There is no surplus produce for the market
    • There is no trade since goods produced are meant for owner’s consumption
    • There is no specialization
    • There is no use of machines
    • quality of goods produced are of low.
  1. Renewable resources: - Supply can be restored.
    Non renewable resources: -Supply cannot be restored.
  1. Factors of production
    • Labour
    • Capital
    • Entrepreneurship
    • Hand
  1. Scarcity resources are limited in supply.
    Opportunity cost:   it is benefits derived from the cost of a forgone for the next best alternative.
  1. Classification of competitions
    • Generic
    • Enterprise
    • Generic
    • Enterprise
    • Improving productivity of labour
  1. Ways of improving productive of labour
    • Through provision of benefits and incentive
    • Providing worker with more education and training
    • Paying workers well
    • Good relationship between workers and management
    • Providing recreation facilities
    • Promotion of workers
    • Provision of insurance cover.
  1. Measures to curb these malpractices
    • Pollution, control
    • Publicize the malpractices
    • Take legal action/sue the firm
    • Report to NEMA (National/Environmental Management Authority)
    • Education neigbours on their rights against pollution
    • Boycott the firm products
    • Carry out demonstration against the firm
  1. Characteristics of economic resources
    • They are scarce in surplus
    • Have money value
    • Have utility
    • Can change ownership
    • Unevenly distributed
    • Have alternative use
    • Can be complementary
    • Can be combined to produce goods and services
  1. Function of entrepreneur
    • Control the business
    • Start the business
    • Make decision (policy maker)
    • Hire and rewards other factor of production
    • Bears the risk and enjoy profits
    • He/she owns the whole project
  1. Types of business activies
    • Extraction
    • Processing of raw material
    • Manufacturing
    • Construction
    • Distribution of goods/Trade
    • Provision of service
  1. Types of micro environmental resource
    • Human resources
    • Financial resource
    • Physical resources
    • Technology
  1. Reason’s that make an individual engage in business activities
    •  To generate profit
    • To provide goods and service
    • For prestige/image
    • Create employment and occupation
    • As a hobby
    • To satisfy personal needs
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