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Business Studies Form Two Question Paper

Business Studies Form Two

Course:Business Studies

Exam Year:2007

FRIENDS SCHOOL KAMUSINGA
KIMILILI

BUSINESS STUDIES
FORM 2 CAT 3 T1 2007.
TIME: 2 HOURS
DATE: 4/4/2007

Answer all questions in the space provided.

1. In the spaces provided, name the type of business organization described by each of the following features. (4marks)

Description Business Organization
(a) Each member has only one vote
(b) The business enjoys perpetual succession.
(c) Each member may act on behalf of the business
(d) Formed by an act of parliament

2. Ordinary shares in accompany carry the greatest risk of the business. Give four reasons why this is so? (4marks)
a) b)
c)
d)

3. State four advantages as itinerant trader has over a market stall trader? (4marks)
a)
b)
c) d)

4. Highlight four reasons why tourism is important in Kenya. (4marks)
a) b) c) d)

5. Outline four reasons for establishment of a business enterprise. (4marks)
a) b) c) d)

6. Identify four documents used in the delivery process in home trade. (4marks)
a) b) c) d)

7. Highlight four advantages of hire purchase to the seller. (4marks)
a) b) c) d)

8. Outline four factors to consider when deciding on an ideal office layout. (4marks)
a) b) c) d)

9. (a) What is a letter of inquiry? (1mark)

(b) State three uses of a letter of inquiry to the seller. (3marks)
i) ii) iii)

10. State four roles played by entrepreneurs in production. (4marks)
a)

b)

c)

d)

11. State four benefits of privatizing some of the country’s parastatals. (4marks)
a) b) c)
d)

12. Outline four functions of the administration department of an office. (4 marks)

13. State three advantages a trader gets from selling items on cash basis. (3 marks)
a) b)
c)
14. Give the meaning of the following terms as used in wholesaling. (4 marks)
a) Boarding

b) Grading

c) Sorting

d) Blending

15. State four causes of overcharges in an invoice (4 marks)
a) b)
c)
d)

16. Highlight four qualities that an effective management control system should have.(4 marks)
a) b)
c)
d)

17. Outline four features of a sole proprietorship. (4 marks)
a) b)
c)
d)

18. Indicate the type of utility provided by each of the following activities. (4 marks)

a) Slaughtering a chicken to be cooked for supper
b) A housewife buying a dress for her child
c) A school storing beans in the store for use in the kitchen
d) A student carrying a chair from the store for use in the classroom.

19. Highlight four benefits of joining a savings and credit cooperative society. (4 marks)
a) b)

c)

d)

20. State four reasons why land is considered a prime factor of production. (4 marks)
a) b)
c)

d)

21. Outline four reasons why government participates in commercial activities. (4 marks)
a) b)
c)
d)

22. State four reasons for the popularity of credit cards in the business sector. (4 marks)
a) b)
c)
d)

23. State for reasons why the government must issue a licence before a business starts its operations.
(4 marks)
a)
b) c)

d)

24. Outline four ways the government uses to create an enabling environment for business in this country. (4 marks)
a)
b) c)

d)

25. State five limitations of operating a business as a private limited company. (5 marks)
a)
b) c)

d)

Business Studies Form Two Question Paper

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