Business Studies (Buss 030) Question Paper

Business Studies (Buss 030)

Course:Education

Institution: Kenya Methodist University question papers

Exam Year:2012

TIME : 2 HOURS

Instruction:
Answer any three question
Question One
Discuss five characteristics of human wants.
(10mks)
Explain why direct production is unpopular in a modern economy. (10mks)

Question Two
A trader intends to construct a warehouse. Explain the measures that he/she should take to ensure smooth functioning of the warehouse.
(10mks)
Explain the role played by the insurance industry in promoting the development of the Kenyan economy.
(10mks)

Question Three
Discuss factors that account for the popularity of small scale business enterprises despite the advantages of large scale operations.
(10mks)
With an aid of a diagram appropriate, explain how the price of a commodity is determined in a free market situation.
(10mks)

Question Four
Explain factors that influence the location of a firm. (10mks)
Discuss factors that a producer would consider when selecting a distribution channel.
(10mks)

Question Five
Explain importance of transport to a business.
(10mks)
Discuss internal economies of scale to a firm.
(10mks)

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