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Form 2 Term 2 Business Studies Examination Question Paper

Form 2 Term 2 Business Studies Examination 

Course:Business Studies

Institution: Form 3 question papers

Exam Year:2008



1)Discuss 5 importance of entrepreneurship in the economy.

b)Explain 5 reasons for government participation and involvement in commercial activities.

2)Outline 4 causes of business failure.

b)Explain reasons that make the government impose taxes in its own citizens.

3)Patel and Shah are traders who have been operating as sole traders.Advice them on the merits of forming a partnership.

b)Insurance companies being business entities operate on the basis of trust hence governed by a set of principles.Explain any 5 of these principles.

4)Explain why oligopolists tend to favour non price competition to cutting prices.

b)Economies of most African countries are regarded as underdeveloped.Discuss 5 features to justify this statement.

5)Describe the importance of the age structure of population for economic growth.

b)Describe 5 ways in which commercial banks enhances development of business activities in the country.

6)Explain to what extent factors of production are mobile.

b)Explain 5 factors considered in determining the appropriate channel for distributing goods.

7)Name and explain 5 factors which influence choice of an appropriate means of transport.

b)Explain 5 factors that may limit adoption of modern technology in business operations

8)Highlight 5 advantages of a private warehouse

9)Explain 5 circumstances under which monopolies exist in a given country.

b)Explain 4 factors that may hinder economic development in kenya.

10)Explain 5 reasons why the government might find it necessary to impose tax.




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