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Empowering Students
NAME:_________________________________________ ADM. NO._______________
DATE: __________________________STUDENT`S SIGNATURE: _______________
BUSINESS STUDIES
FORM 2
TIME: 2 HOURS
INSTRUCTIONS
Answer all the questions
All answers must be written in the spaces provided after each question
1. Apart from partner’s contributions, highlight other four sources of capital for a partnership (4mks)
a)………………………………………………………………………………………………………………b)………………………………………………………………………………………………………………c)………………………………………………………………………………………………………………d)………………………………………………………………………………………………………………
2. Highlight four circumstances suitable for use of air transport (4mks)
a)………………………………………………………………………………………………………………b)………………………………………………………………………………………………………………c)………………………………………………………………………………………………………………d)………………………………………………………………………………………………………………
3. Highlight four factors that may hinder the effectiveness of face to face communication (4mks)
a)………………………………………………………………………………………………………………b)………………………………………………………………………………………………………………c)………………………………………………………………………………………………………………d)………………………………………………………………………………………………………………
4. State four external factors that may negatively influence business operations (4mks)
a)………………………………………………………………………………………………………………b)………………………………………………………………………………………………………………c)………………………………………………………………………………………………………………d)………………………………………………………………………………………………………………
5. Name the type of utility achieved through the activities given below; (4mks)
a) Trade __________________________________________
b) Storage __________________________________________
c) Transport __________________________________________
d) Processing __________________________________________
6. Most business organizations are embracing the preparation of business plans. State four reasons in support of this significant document (4mks)
a)………………………………………………………………………………………………………………b)………………………………………………………………………………………………………………c)………………………………………………………………………………………………………………d)………………………………………………………………………………………………………………
7. Identify the types of wholesalers described in the statements given below (4mks)
a) A wholesaler who trades in beans only ________________________________________________
b) A wholesaler supplying goods in Kilifi, Mombasa and Kwale ______________________________
c) A wholesaler who trades in a wide variety of cosmetics ____________________________________
d) A wholesaler who buys vegetables from farmers in rural areas and sells the same to other wholesalers in urban areas ________________________________________
8. State four factors considered when choosing the suitable method of reproducing office documents. (4mks)
a)………………………………………………………………………………………………………………b)………………………………………………………………………………………………………………c)………………………………………………………………………………………………………………d)………………………………………………………………………………………………………………
9. Outline four functions carried out by an entrepreneur (4mks)
a)………………………………………………………………………………………………………………b)………………………………………………………………………………………………………………c)………………………………………………………………………………………………………………d)………………………………………………………………………………………………………………
10. Highlight four benefits derived from clothing as a basic human need (4mks)
a)………………………………………………………………………………………………………………b)………………………………………………………………………………………………………………c)………………………………………………………………………………………………………………
d)………………………………………………………………………………………………………………
11. Highlight four reasons for the privatization of public corporations by the government. (4mks)
a)………………………………………………………………………………………………………………b)………………………………………………………………………………………………………………c)………………………………………………………………………………………………………………d)………………………………………………………………………………………………………………
12. State four clauses of the memorandum of association in a public limited company. (4mks)
a)………………………………………………………………………………………………………………b)………………………………………………………………………………………………………………c)………………………………………………………………………………………………………………d)………………………………………………………………………………………………………………
13. State four conditions that can cause an overcharge in an invoice. (4mks)
a)………………………………………………………………………………………………………………b)………………………………………………………………………………………………………………c)………………………………………………………………………………………………………………d)………………………………………………………………………………………………………………
14. State four functions carried out by the Nairobi Stock Exchange Market (4mks)
a)………………………………………………………………………………………………………………b)………………………………………………………………………………………………………………c)………………………………………………………………………………………………………………d)………………………………………………………………………………………………………………
15. Highlight four characteristics of economic resources (4mks)
a)………………………………………………………………………………………………………………b)………………………………………………………………………………………………………………c)………………………………………………………………………………………………………………d)………………………………………………………………………………………………………………
16. During evaluation of a business opportunity, business considerations remain important. Outline four such considerations. (4mks)
a)………………………………………………………………………………………………………………b)………………………………………………………………………………………………………………c)………………………………………………………………………………………………………………d)………………………………………………………………………………………………………………
17. State four circumstances under which a cheque may be dishonored in spite of the account having adequate funds (4mks)
a)………………………………………………………………………………………………………………b)………………………………………………………………………………………………………………c)………………………………………………………………………………………………………………d)………………………………………………………………………………………………………………
18. Highlight four reasons why it is preferable to service office equipment regularly instead of repairing them only when they break down. (4mks)
a)………………………………………………………………………………………………………………b)………………………………………………………………………………………………………………c)………………………………………………………………………………………………………………d)………………………………………………………………………………………………………………
19. Most organizations are preferring courier services when delivering their parcels. Outline four possible reasons for this preference. (4mks)
a)………………………………………………………………………………………………………………b)………………………………………………………………………………………………………………c)………………………………………………………………………………………………………………d)………………………………………………………………………………………………………………
20. Highlight four challenges facing consumer associations in their effort to guard consumers against exploitation by business people (4mks)
a)………………………………………………………………………………………………………………b)………………………………………………………………………………………………………………c)………………………………………………………………………………………………………………d)………………………………………………………………………………………………………………
21. State four reasons why the entrepreneur need to generate a good business idea. (4mks)
a)………………………………………………………………………………………………………………b)………………………………………………………………………………………………………………c)………………………………………………………………………………………………………………d)………………………………………………………………………………………………………………
22. Highlight four reasons to account for the continued training of business people by the Government. (4mks)
a)………………………………………………………………………………………………………………b)………………………………………………………………………………………………………………c)………………………………………………………………………………………………………………d)………………………………………………………………………………………………………………
23. State four reasons as to why most business organizations are adopting open offices (4mks)
a)………………………………………………………………………………………………………………b)………………………………………………………………………………………………………………c)………………………………………………………………………………………………………………d)………………………………………………………………………………………………………………
24. Highlight four features that distinguish a tied shop from a single shop. (4mks)
a)………………………………………………………………………………………………………………
………………………………………………………………………………………………………………
b)………………………………………………………………………………………………………………………………………………………………………………………………………………………………
c)………………………………………………………………………………………………………………………………………………………………………………………………………………………………...
d)………………………………………………………………………………………………………………………………………………………………………………………………………………………………...
25. The government is currently laying down a network of pipelines to all major towns to facilitate supply of petroleum products. Outline four benefits likely to accrue from this government development. (4mks)
a)………………………………………………………………………………………………………………b)………………………………………………………………………………………………………………c)………………………………………………………………………………………………………………
d)………………………………………………………………………………………………………………
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