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Form 3 Business Studies Exam Question Paper

Form 3 Business Studies Exam

Course:Business Studies

Exam Year:2008

Business Studies Form 3

Answer all questions

1. State FOUR types of abnormal demand situations (4mks)

2. Highlight FOUR circumstances when price elasticity of a product will be high (4mks)

3. State FOUR factors which influence price elasticity of demand (4mks)

4. Highlight four factors that may cause a shift in demand curve to the right (4mks)

5. The price of a product rose from shs. 200 to shs. 220 making the quantity demanded to fall from 350 units to 300 units. Calculate the price elasticity of demand for the product (4mks)

6. State four factors that influence the demand for a product (4mks)

7. State three circumstances under which a fall in price of a commodity would lead to a fall in the quantity demanded of a commodity (3mks)

8. Outline four factors that may cause a decrease in the quantity demanded for a product (4mks)

9. Distinguish between a movement along and a shift in the demand curve (4mks)

10. State four factors that may have a negative influence on the demand of a commodity (4mks)

11. State four factors that may account for a higher demand at higher prices of a commodity (4mks)

12. Each of the following factors would lead to either a shift or a movement along the demand curve. In the spaces provided, indicate the correct effect by writing either SHIFT or MOVEMENT (4mks)

a. A change in real income

b. A change in price of a product

c. An increase in sales tax of a product

d. An increase in population

13. State four reasons why few Kenyans take out life assurance policies (4mks)

14. The following are types of advertising

- Product advertising

- Competitive advertising

- Informative advertising

- Institutional advertising

In the table match each type of advertising with its appropriate description (4mks)

a. Creates awareness about a product

b. Promotes the name of the manufacturer

c. Persuades the consumers to buy a product

d. Promotes a particular brand of a product

15. Give four examples of products (4mks)

16. Indicate four circumstances when personal selling is appropriate (4mks)

Section 2

1. Explain any FIVE reasons why it is becoming increasingly important for businesses to advertise their products (10mks)

2. Insurance companies being business entities operate on the basis of trust hence they are governed by set principles. Explain any five of there principles (10mks)

3. One day form three students of Tahidi High School visited the central government stores. They observed the following details:

a. Each of the government ministries had two or more large storehouse buildings

b. Each store house was served by a railway line siding and well build access roads

c. Adjoining to storehouse, there was a stockyard surrounded by a strong wall with floodlights

d. All the warehouses were surrounded by a strong wall with only one entry and exit gate

e. Each warehouse had its own workers who showed the students around the warehouse, gave them clear explanations and answered all their questions satisfactorily

f. The explanations covered such areas as functions in receiving and issuing goods and the records kept. Explanations were simple and clear

g. The students saw variety of equipment used for handling goods in the warehouse. Each warehouse had its own equipment suited for the goods stored.

Answer the following questions from the observations. (10mks)

a. State whether the warehouses students saw were private or public and give one reason to support your answer

b. Outline two essential features the students observed that made the warehouse they saw suited for their purpose

c. The workers explained to the students the functions of the warehouses. Explain THREE functions they are likely to have been explained to

d. Based on the observations the students made, suggest the reasons why the government may have found it necessary to;

i. To construct flood lights

ii. To build all warehouses in a central place instead of building them in different places

iii. To construct a perimeter wall around the warehouse with only one gate.

Form 3 Business Studies Exam Question Paper

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