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Form 3 Term 2 Business Studies Exam Question Paper

Form 3 Term 2 Business Studies Exam 

Course:Business Studies

Institution: Form 3 question papers

Exam Year:2007



1)Highlight 4 uses of source documents.

b)Outline 5 differences between a public limited company and a partnership.

2)Explain 5 characteristics of money

b)Explain 5 problems that producers are likely to face if intermediaries are left out of the chain of distribution.

3)Explain 5 factors an insurance company will consider before determining the premiums to charge the applicant.

b)Explain 4 disadvantages of long chain of distibution of goods to the buyer.

4)Kenya is a member of the East African Co-operation.Explain 5 benefits its likely to get.

b)A new employee teacher was adviced to take endowment policy rather than whole life policy.Explain reasons for this.

5)Explain 5 tools used by the Central Bank to regulate credit.

b)Explain 5 reasons why publicity as a method of product promotion is not common.

6)With the aid of diagrams explain the changes in supply affecting a commodity whose demand is perfectly elastic and whose supply is perfectly inelastic.

7)Explain 6 factors that have led to the survival of small scale retailers despite competition from supermarkets.

b)Private investors in the country are shifting their business to other countries.Explain the cause of this behaviour.

8)Explain 5 problems faced in the satisfaction of human wants.

b)Explain 4 reasons why a manufacturer should have his own warehouse.

9)Give 5 reasons why E-banking is becoming popular.

b)Explain 5 circumstances when downwards vertical communication can take place in a firm.

10)Explain 5 factors that may hinder economic development in a country.




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