Business Studies Form Two Question Paper

Business Studies Form Two

Course:Business Studies

Exam Year:2012

LANGATA HIGH SCHOOL
BUSINESS STUDIES FORM TWO
END TERM II EXAM

TIME: 2 HOURS

INSTRUCTIONS: Answer ALL questions in spaces provided.

1. State any five differences between ordinary shares and preference shares. (5mks)

2. A public limited company is a legal entity. What is the meaning of the term legal entity. (2mks)

3. Name any four principles of cooperative societies. (4mks)

4. Name any four circumstances that may lead to dissolution of partnership. (4mks)

5. Below are characteristics of various business unit. Identify which one relates to a private limited company, sole trading, partnership or a public cooperative. (4mks)
a. Has perpetual succession
b. Formed by an Act of parliament
c. Managed by owner
d. Requires a written agreement for its formation.

6. Below are descriptions of various types of preference shares. Identify the types of preference share described in each statement. (4mks)
i. Can be bought back by the company.
ii. Dividends as brought forward if not paid
iii. Cannot be bought back by the company
iv. Dividends are not bought forward if not paid.

7. Explain briefly the management of each of these business units.
i. Partnerships. (2mks)
ii. Public limited companies. (5mks)
iii. Sole trading business. (2mks)
iv. Cooperative societies. (5mks)

8. Under what circumstances can be a cheque be dishonoured. Give any five. (5mks)

9. Give any four factors that may encourage entrepreneurship practices in Kenya. (4mks)

10. Name any four characteristics of an entrepreneur. (4mks)

11. Below are descriptions of office layouts. Identify which one relates to orde plan and which one relates to an enclosed plan. (4mks)
i. Joint use of office facilities, centralized supervision and staff located in one place.
ii. Private use of office machines and decentralized supervision.

12. Explain briefly each of the following means of payment. (8mks)
i. Credit transfer
ii. Standing orders
iii. Bank draft
iv. Bills of exchange.

13. Complete the blanks below with the its purpose and who issues it as used in documents of home trade. (6mks)
a. Invoice
b. Order
c. Advice note

14. Name four circumstances under which cash with order is used. (4mks)

15. Explain each of this trends as used in business ownership. (8mks)
i. Privatisation
ii. Mergers
iii. Holding companies
iv. Globalization

16. State four disadvantages of office machines. (4mks)

17. Name four reasons for a business plan. (4mks)

18. Give any four characteristics of a chain store. (4mks)

19. Explain briefly the importance of each of this document as used in limited companies. (6mks)
i. Articles of association
ii. Memorandum of association
iii. Certificate of trading.

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