Form 1 Business Studies Exams and Marking Schemes Free
Form 1 Business Studies Exams and Marking Schemes Free
NAME: ………………………………………………… ADM NO.: ……………………
SCHOOL: ………………………… DATE: ………………… SIGN: ….……….
BUSINESS STUDIES
TIME: 2 HOURS
JOINT EXAMINATION – FORM ONE, TERM THREE
INSTRUCTION TO STUDENTS
Answer all the questions in the spaces provided
This paper consists of 10 printed pages. Students should check the question paper to ensure that all pages are printed as indicated and no questions are missing.
FOR EXAMINER’S USE ONLY
QUESTION NO.
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QUESTION NO.
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GRAND TOTAL MARKS
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List FOUR disciplines studied in business studies. (4mks)
Economics
Commerce
Accounting
Office practice
Entrepreneurship
State the type of utility created by each of the following activities (4mks)
ACTIVITY
LEVEL OF PRODUCTION
a) Keeping money in the bank
Time utility
b) Baking a loaf of bread
Form utility
c) Importing vehicles from Japan
Place utility
d) Selling medicine to patient
Possession utility
List FOUR characteristics of free goods. (4mks)
They are gifts of nature
they are plenty in supply/abundant
they are priceless/have no money value
they have utility
State FOUR types of business activities (4mks)
Manufacturing
processing of raw materials
Extraction
Construction
provision of services
trade
Distribution of goods
Outline FOUR documents used in home trade (4mks)
Credit note
Debit note
statement of account
receipts
letter of inquiry
catalogue
quotation
price list
order
delivery note
invoice
pro-forma invoice
Muiga wants to start a business. State FOUR reasons he would start one (4mks)
to earn profit
To provide goods and services
to create employment
to be own boss
as an outlet for new innovation
to utilize spare time
to utilize available resources
State FOUR equipment that facilitate mailing in an office (4mks)
folding machine
franking machine
addressing machine
sorting machine
letter opener
composite
Highlight FOUR advantages of automatic vending machines (4mks)
Commodities can be brought anytime because no attendant is required
They save the owner the cost of employing a shop attendant
They can be put strategically to boost sales e.g institution
They are not affected by weather changes
Provide good in cash basis protecting the owner from burden of bad debts
They are fast and accurate
Mention FOUR reasons why a consumer would satisfy basic wants before secondary wants (4mks)
They cannot be postponed
They are felt needs
one cannot do without them/necessary for life/essential for survival
They may be satisfied at individual level
Name the factor of production that each of the following resources relate to (4mks)
Resource
Factor of production
a) Manager
Labour
b) Motor Vehicle.
Capital
c) Water
Land
d) Owner
Enterpreneurship
Outline FOUR sources of a business idea
Listening to what people say
Hobbies
Surveys
Newspapers
Journals
Waste materials
Spotting the market gap
Shows and exhibition
List down FOUR external factors of environment that affect the business negatively. (4mks)
unfair competition
Inadequate technology
Natural calamities
Unfair government policies
Political instability
Unfavorable socio-cultural practice
poor infrastructure
State FOUR characteristics of direct production (4mks)
Production of low quality goods
Encourage individualism
lead to low standards of living
can be very tiring
Does not encourage invention and innovation
cheap/simple tools are used in production
it is mostly used on small scale
the rate of production is low
A lot of time is wasted from one job to another
List down circumstances under which a cheque may be dishourned (4mks)
In case of insufficient funds in the account
When the signature of the account holder differs from the specimen in the bank
When the cheque is post dated
if the cheque has been altered
if the account holder is dead ,insane or bankruptcy
Highlight FOUR importance of entrepreneurship to Kenyan Economy (4mks)
Creates employment
Contributes to formation of capital
Reduces rural-urban migration
Raises standards of living
improves infrastructure
Reduces foreign dominance in the economy
make use of local resources
promotes technology
promotes entrepreneurial culture
saves on imports
Outline FOUR advantages of division of labour and specialization. (4mks)
Outpt per worker is greatly increased
encourage invention and innovation
makes it possible for greater use use of machine which makes production fast& efficient
Enables worker to acquire skills in a particular field
High quality goods and services are produced
Worker spend less mental and physical effort
saves on time
State down FOUR advantages of engaging in e-commerce in business activities. (4mks)
facilitates access to large market
Creates conducive environment for business to transact without discriminations
reduces paperwork since dealings are done online
reduces cost of sending receiving and storing information
Enables one to access important information that will enable him improve the running of his business
it is a faster way of doing business as it facilitates urgent transactions
List FOUR causes of business failure. (4mks)
poor management of people
Poor location/Lack of customers
Lack of raw materials
Inadequate finance
Stiff competition
Poor infrastructure
Lack of commitment to the business
Poor financial management
poor debt management
poor public relations
poor market research
low level of creativity and innovation
Highlight four small scale retailers without shops (4mks)
Itinerant traders
Roadside sellers
open air market traders
Automatic vending machines
List FOUR classification of economic resources (4mks)
Natural resources
Man-made resources
Human resources
Renewable resources
Non –renewable resources
Outline FOUR different rewards for labour as a factor of production (4mks)
wages
salaries
commissions
tips
Highlight FOUR measures that can be taken by an office to safeguard the property of the organization. (4mks)
Enhancing security against theft i.e by employing watchmen, installing security lights and fencing business premises
Ensuring physical care by people using the property
keeping records of movement and usage of the property
Physical stock taking of each property
Taking insurance cover
proper repairs and servicing
Classify each of the following activities into appropriate level of production (4mks)
Activity
Level of production
Wholesaling
Tertiary
Mining
Primary
Maize milling
Secondary
Insurance
Tertiary
State FOUR differences between goods and services. (4mks)
Goods
Services
Tangible
Intangible
Can be stored
Hard to be stored
Can be standardized
Difficult to be standardized
Can change possession
inseparable from the provider
Not all goods are perishable
Are highly perishable
Most can be seen
Services are invisible
25.Daudi sold crates of soda to Otis at sh.1000 on credit.He gave him a quantity discount of 10%.He also gave him cash discounts of;
10% if payment was made before 1 week.
5% if payment was made after 2 weeks
2% if payment was made after 1 month
Otis made the payment by the end of 2ndweek.Calculate;
Trade discount (1mk)
10/100×1000=sh 100
Cash discount (2mks)
1000-100=900
2.5/100x900=sh.45
c.Amount he paid (1mk)
100+45=145
1000-145=sh 855
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