FORM 2 TERM  BUSINESS OPENER EXAM WITH MARKING SCHEMES

BUSINESS FORM 2

 FORM 2 TERM  OPENER EXAM

NAME:…………………………………………………….ADM……………..CLASS………….

INSTRUCTIONS: Answer all questions in the spaces provided   

1. State the term given to each of the following descriptions (4mks)

(a) Study of activities that are carried out in an office……………………………………

(b) Study of the process of identifying a business opportunity, acquiring the resources to

Start and run a business………………………………………………………………

(c) Study of trade and aids to trade………………………………………………………

(d) Study of a systematic record keeping……………………………………………….

2. High light four reasons why a business plan is necessary to an entrepreneur (4mks)

(a)………………………………………………………………………………………………………………………….

(b)………………………………………………………………………………………………………………………….

(c)………………………………………………………………………………………………………………………….

(d)…………………………………………………………………………………………………………………………

3. State four characteristics of economic resources (4mks)

(a)………………………………………………………………………………………………………………………….

(b)………………………………………………………………………………………………………………………….

(c)………………………………………………………………………………………………………………………….

(d)………………………………………………………………………………………………………………………….

4. Highlight four factors an organization would consider when an office layout (4mks)

(a)………………………………………………………………………………………………………………………….

(b)………………………………………………………………………………………………………………………….

(c)………………………………………………………………………………………………………………………….

(d)………………………………………………………………………………………………………………………….

5. Classify each of the following as renewable or non-renewable resource (4mks)

(a) Wool…………………………………………………….

(b) Lead………………………………………………………

(c)Soda ash………………………………………………….

(d) Natural gas………………………………………………

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6. Identify the office etiquette described in the following statements. (4marks)

 

	Statement	Office Etiquette
a)	Handling people politely, pleasantly and with consideration
b)	Being committed to the organization one is working for
c)	Performing duties with excellence, precision and correctness
d)	Ability to keep time in attending duties and appointments

 

7. Outline the way through which each of the following types of utility may be created in production. (4marks)

 

(a) Time utility: …………………………………………………………………………………

(b) Form utility: …………………………………………………………………………………

(c) Pace utility……………………………………………………………………………………

(d) Possession utility…………………………………………………………………………….

8. Highlight four reasons why a consumer should satisfy basic wants before secondary wants. (4mks)

(a)…………………………………………………………………………………………

(b)…………………………………………………………………………………………

(c)…………………………………………………………………………………………

(d)…………………………………………………………………………………………

9. Outline four external business environments that may affect the performance of the

business.                                                                                                                      (4mks)

(a) ………………………………………………………………………………………………….

(b)  …………………………………………………………………………………………………

(c)  …………………………………………………………………………………………………

(d)  …………………………………………………………………………………………………

 

10. Name the documents that each of the following descriptions refer to. (4mks)
11. a) Used to correct an overcharge on an invoice ………………………………………….
12. b) Used to alert the buyer that the seller received an order………………………………..
13. c) It is used to inquire for goods…………………………………………………………..
14. d) It is used to organize for transportation of goods between a seller and a public carrier.

……………………………………………………………………………………………………

 

11. Give four characteristics of indirect production             (4 marks)

(a) ………………………………………………………………………………………………….

(b)  …………………………………………………………………………………………………

(c)  …………………………………………………………………………………………………

(d)  …………………………………………………………………………………………………

12. Under what four circumstances would cheque payment be preferred most than cash payment?                                                                                                             (4mks)

(a) …………………………………………………………………………………………………

(b)  …………………………………………………………………………………………………

(c)  …………………………………………………………………………………………………

(d)  …………………………………………………………………………………………………

13. State four characteristics of a departmental store.                                             (4mks)

(a) …………………………………………………………………………………………

(b)  …………………………………………………………………………………………

(c)  …………………………………………………………………………………………

(d)  …………………………………………………………………………………………

14. State any four factors that can contribute to the success of business in a certain area                                                                                                                         (4mks)

(a) …………………………………………………………………………………………………

(b)  …………………………………………………………………………………………………

(c)  …………………………………………………………………………………………………

(d)  …………………………………………………………………………………………………

 

15. Outline four features of a service.                                                                 (4mks)

(a) …………………………………………………………………………………………………

(b)  …………………………………………………………………………………………………

(c)  …………………………………………………………………………………………………

(d)  …………………………………………………………………………………………………

 

16. Highlight four features of a good filing system. (4 marks)

 

(a) ………………………………………………………………………………………………….

(b)  …………………………………………………………………………………………………

(c)  …………………………………………………………………………………………………

(d)  …………………………………………………………………………………………………

 

17. Outline any four roles of an entrepreneur in production. (4 marks)

(a) ………………………………………………………………………………………………

(b)  …………………………………………………………………………………………………

(c)  …………………………………………………………………………………………………

(d)  …………………………………………………………………………………………………

 

18. As a student of business studies give two benefits you can get from learning

the subject                                                                                                                (2 Marks)

(a) ………………………………………………………………………………………………

(b)  …………………………………………………………………………………………………

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BUSINESS FORM 2

MARKING SCHEME

FORM 2 TERM 1 OPENER EXAM

1. a) Office practice

b)Entrepreneurship

1. c) Commerce
2. d) Accounting

 

2. Importance of a business plan
3. Show amount of finance required
4. Motivates employees
5. It is a requirement by financiers
6. Helps in avoiding mistakes
7. Identifying strengths and weaknesses
8. Determines how resources are allocated
9. Helps in adaptability of the business
10. Characteristics of economic resources
11. They are scarce/limited in supply
12. Have monetary value
13. Not evenly distributed in all regions
14. Have utility
15. Have multiple uses
16. Are transferable from persons to persons
17. Can be combined in proportion
18. Factors to consider when choosing office layout
19. Capital required
20. Number of employees
21. Cost of maintenance
22. Area covered
23. Nature of the organization
24. Government policy/law
25. Renewable and non-renewable resources
26. Renewable
27. Non- renewable
28. Renewable
29. Non-renewable
30. Identify the office etiquette described in the following statements.

 

	Statement	Office Etiquette
a)	Handling people politely, pleasantly and with consideration	courtesy
b)	Being committed to the organization one is working for	loyalty
c)	Performing duties with excellence, precision and correctness	accuracy
d)	Ability to keep time in attending duties and appointments	punctuality

 

7. way through which each of the following types of utility may be created in production. (4 marks)

 

(a) Time utility: when goods are stored for future use

(b) Form utility: goods are processed to more usable state

(c) Pace utility: goods are transported from where they are produced to where they are needed

(d) Possession utility:goods are traded or exchanged for other goods or for money

 

8. Reasons why a consumer should satisfy basic wants before secondary wants.
9. Basic human wants are essential for survival/consumer cannot do without them.
10. Consumer have limited resources
11. Basic human wants can’t be postponed.
12. All basic human wants are felt needs. ( any 4 x 1 = 4mks

 

9. External environment
10. a) Legal political environment
11. b) Economic environment
12. c) Demographic environment
13. d) Physical environment
14. e) Competitive environment
15. f) Technological environment

 

 

 

10. a)    Credit note

 

1. b) Acknowledgment note
2. c) Letter of inquiry
3. d) Consignment note
4. 11. Characteristics of indirect production
5. a) Low quantity production
6. b) Low quality production
7. c) Encourages individualism
8. d) Leads to low standards of living
9. e) Can be very tiring
10. f) Does not encourage innovation and invention
11. g) time wasting moving from one job to another

 

12. Circumstances under which cheque payment would be preferred most than cash payment.

            (a) Where lump sun/huge funds are involved.

(b) Where security is attached on money involved in transaction.

(c) Incase evidence of payment is required by a business (written evidence)

(d) Where references are required in future for payment made.

(e) Incase privacy of carrying money is needed by organization/business.

(f) Incase it’s the policy of the business to be making payments using cheques.

 

13.Characteristics of a departmental store.                                              (4mks)

1. Offer a wide variety of goods at relatively lower prices
2. They are attractive and convenient to shop in.

• They are usually situated in town centers

1. They may provide services such as restaurants, reading rooms and post office.
2. Each department is managed by a departmental manager dealing in a different line of goods.
3. Factors that contribute to the success of business (1×4)

 

• Good and technical skills of the owner in managing the business
• Good record keeping
• Good customer relations
• Government support
• Adopting modern technology
• Availability of market
• Little or no competition

15. Characteristics of a service
16. Intangible
17. Cannot be stored

• Quantity cannot be standardized

1. Inseparable from the provider
2. .
3. 16. Features of a good filing system.

(a)        Should occupy less space/compactness.

(b)        Should be simple and easy to understand/simplicity.

(c)        Should protect document from loss, misplacement, theft and destruction/safety.

(d)        Should be capable of expansion/elasticity.

(e)        Should be appropriate to the needs of the organization/suitability.

(f)        Should not be expensive to start and to maintain/economical.

(g)        Should be easy to retrieve information without disturbing other documents/ accessibility.            (Any 4 x 1 = 4 marks)

17. 17. Roles of an entrepreneur in production.

(a)        Starts the business/project.

(b)        Controls the production process.

(c)        Makes the decision on what to produce and when to produce it.

(d)        Acquires and pays for all the factors of production.

(e)        Bears all the risks

(f)         Enjoys the profit

(g)          Pays all the expenses

(h)       Owns the whole project(4 marks)

18. Benefits of studying business (2mks)
19. a) Equips on with skills to start and run a business
20. b) It is a career subject
21. c) Helps one to understand the role of government in business.
22. d) Assists one to appreciate the role of business in provision of goods and services
23. e) Makes one appreciate the need for good management practices
24. f) Helps one develop a positive attitude towards environment
25. g) Equips one with knowledge to evaluate business performance
26. h) helps one understand the role of communication and information technology in modern business management