Business Studies Questions and Answers - Form 2 Term 2 Opener Exams 2021

BUSINESS STUDIES
FORM 2 OPENER EXAM
TERM 2  2021

INSTRUCTIONS

• Answer all the questions

1. Briefly define the following forms of utilities: (3 Mks)
   1. Form utility
   2. Possession utility
   3. Place utility.
2. Mutwiri has been adviced by his bank to write a business plan. List four benefits Mutwiri will get by drawing a busines plan. (4 Mks)
3. List four challenges faced by people as they seek to satisty their wants (4 marks)
4. State three means of payment used in home trade. (3mks)
5. Kenya has diverse unexploited natural resources that once exploited would propel Kenya into a developed nation. List four factors that limit Kenyan Government from exploiting these natural resources. (4 marks)
6. SME sector has been attributed to entreprenural education in Kenya. Outline four contributions of entreprenuers in Kenyan Economy. (4mks)
7. Outline four differences between public corporation and public companies. (4 marks)
8. List four benefits consumers enjoy from warehousing (4 Mks)
9. Highlight four ways in which partners may be classified giving an example in each case.(4mks)
10. The Kenya government has diverse ways on controlling and regulating business in Kenya. Explain three ways that the kenya Government regulates and control trade. (6 Mks)
11. There are various equipments used in offices, state the function of each of the following equipment in the office; (4 Mks)
    1. Shreding machine :
    2. Composite machine :
    3. Dublicating machine :
    4. Franking machine
12. Juma, Kipchoge and Murimi are deciding of forming a private limited company. Highlight three contents of the Articles of Association that they might consider (3 Mks)
13. List four benefits of business studies to the Kenyan society. (4 Mks)
14. Containerisation is a common feature in road and water transport. List five benefits of containerisation. (5 Mks)
15. Boda Boda (Motor Cycles) have emerged as the most common means of transport in rural Kenya, highlight four demerits of using this a means of transport (4 marks)
16. List and explain five components of effective communication . (5 Mks)
17. Highlight four issues for consideration when selecting means of transport. (4 Mks)
18.  Kenya Pipeline Company has been transporting petroleum products through the pipeline system to various parts of the country such as Sagana and Eldoret. List five benefits of this mode of transport. (5 Mks)
19. State four types of business activities carried out in Kenya. (4 Mks)
20. Murimi visited kenya commercial bank kerugoya and noticed that the managers office was accessible to all since the bank had an open office policy. Outline four advantages of this type of office plan. (4 Mks)
21. Hawking is one of the simple forms of business in Kenya. List four disadvantages of Hawking business. (4 Mks)
22. Outline four emerging trends in office management. (4mks)
23. Highlight six services of a retailer (4 Mks)
24. Highlight four services offered in a warehouse (6 Mks)

MARKING SCHEME

1. Briefly define the following forms of utilities: (3x 1 = 3 Mks)
   • Form utility: transformation of good from one form to another.
   • Possession utility....physical change from one person to another
   • Place utility: physical movement of a good from one place to another where it has more utility
2. Mutwiri has been adviced by his bank to write a business plan. List four benefits Mutwiri will get by drawing a business plan. (4x 1 = 4 Mks)
   • Highlight business mistakes
   • Identification of strength bn weaknesses
   • Determine finance requir d
   • Allocation of resources
   • Adopting to changes
   • As a control tool
3. List four challenges faced by people as they seek to satisfy their wants (4x1 = 4marks)
   • Too many
   • Resources not enough
   • Resources are scarce
   • Wants are repetitive
   • Wants change in time
4. State three means of payment used in home trade. (3x1 = 3mks)
   • cash, cheque. Promissory note. Bill of exchange. money/postal order.
5. Kenya has diverse unexploited natural resources that once exploited would propel Kenya into a developed nation. List four factors that limit Kenyan Government from exploiting these resources. (4x1= 4 marks)
   • lack of capital
   • lack of labour
   • lack of appropriate technology
   • govt restriction on resource exploitation
6. SME sector has been attributed to entrepreneurial education in Kenya. Outline four contributions of entrepreneurs in Kenyan Economy. (4mks)
   • Employment
   • wide variety of products
   • promotes technology us
   • reduces rural urban migration
7. Outline four differences between public corporation and public companies. (4x1/2 = marks)
   • non profit oriented/ profit based
   • act of Parliament. "/ under companies act
   • capital by government. / shareholders
   • managed by government through board of directors/;shareholders through board of directors
8. List four benefits consumers enjoy from warehousing (4 Mks)
   • Ensure steady steady supply
   • assure quality of goods
   • Assist maintain pricing
   • blending packaging and branding possible
9. highlight four ways in which partners may be classified giving an example in each case.(4mks)
   • quasi
   • active
   • nominal
10. The Kenya government has diverse ways on controlling and regulating business. Kenya. Explain three ways that the kenya Government regulates and control trade. (6 Mks)
    • stardardisatiin
    • price controls
    • licensing
    • total ban
    • product quotas
    • legislation policy
11. There are various equipments used in offices, state the function of each of the following equipment in the office; (4x 1 =4 Mks)
    • Shreding machine :.Cutting paper into smaller pieces and destroy documents no longer required
    • Dublicating machine :. Used for making copie
    • Guillotine machine :.cuting paper into desired size/shape
    • Franking machine :.making postage impressions on envelopes
12. Juma, Kipchoge and Murimi are deciding of forming a private limited company. Highlight three contents of the Articles of Association that they might consider (3x1 =3 Mks)
    • Statement to act as directors
    • meeting clause to call meeting
    • audit clause for auditing
    • right of directors
13. List four benefits of business studies to the Kenyan society. (4x1 =4 Mks)
    • relates knowledge to business activities
    • equip people with knowledge to run business
    • appreciate business role in provision of goods and services
    • appreciate need fr business ethics
    • knowledge on business performance
    • builds positive attitudes towards environment
14. Containerization is a common feature in road and water transport. List five benefits of containerization. (5x1= 5 Mk
    • security
    • space
    • ease of handling
    • reusable
    • handling
    • ease of loading and ooffloading
15. Boda Boda (Motor Cycles) have emerged as the most common means of transport in rural Kenya, highlight four demerits of using this as a means of transport (4x1 =4 marks)
    • accidents
    • limited capacity
    • affected by weather
    • inexperienced driver
16. List and explain five components of effective communication . (5 Mks)
    • Sender
    • message
    • receiver
    • channel
    • feedback
17. Highlight four issues for consideration when selecting means of transport. (4x1 =4 Mks)
    • Cost
    • Nature of good
    • Reliability
    • Urgency
    • Securrity
    • Distance
    • Availability
    • Flexibility
    • Terminals
18. Kenya Pipeline Company has been transporting petroleum products through the pipeline system to various parts of the country such as Sagana and Eldoret. List five benefits of this mode of transport. (5x1 = 5 Mks)
    • less accidents
    • non pollutant
    • flexibility
    • labour intensive
    • less delays
19. State four types of business activities carried out in Kenya. (4 Mks)
    • extraction
    • manufacturing
    • construction
    • distribution
    • processing
    • services
20. Murimi visited kenya commercial bank kerugoya and noticed that the managers office was accessible to all since the bank had an open office policy. Outline four advantages of this type of office plan . (4x1 = 4 Mks)
    • supervision
    • low cost construction
    • teamwork encouraged
    • low maintenance
    • low absenteeism
21. Hawking is one of the simple forms of business in Kenya. List four disadvantages of Hawking business. (4x1=4 Mks)
    • affected by weather
    • no guarantee on products
    • no established place of businesses
    • tiresome
    • Hard to get loans from banks
22. Outline four emerging trends in office management. (4x1 = 4mks)
    • computerization
    • internet
    • mobile telephone
    • office layout
    • customer care
23. Highlight four services of a retailer. (4Mks)
    • breaking bulk
    • storage
    • financing consumer
    • after sales
    • provision of goods
24. Highlight four key services offered on a warehouse (4 mks)
    • receiving goods
    • storage of goods
    • releasing goods
    • stock control
    • stock monitoring