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Form 3 Business Studies Paper 1 End of Term 3 Examination 2022
Class: Form 3
Subject: Business Studies
Level: High School
Exam Category: Form 3 End Term 3 Exams
Document Type: Pdf
Views: 479
Downloads: 18
Exam Summary
TERM 3 END YEAR EXAM - 2022
BUSINESS STUDIES PAPER I
565/1
(THEORY)
FORM THREE
TIME 2½ Hrs.
ANSWER ALL QUESTIONS
1. Identify any four disciplines of business studies.
a) …………………………………………………………………………………………
b) …………………………………………………………………………………………
c) …………………………………………………………………………………………
d) …………………………………………………………………………………………
2. State four ways in which internal environment of a business may negatively affect its activities. (4 marks)
a)
b)
c)
d)
3. Outline four benefits that accrue to a society that practice indirect production (4 mks)
a)
b)
c)
d)
4. State difficulties faced by consumers as they strive to satisfy their wants. (4 mks)
a)
b)
c)
d)
5. Tuk-tuks are a common phenomenon in the urban areas. State four disadvantages of using these means of transport. (4 marks)
a)
b)
c)
d)
6. Give any four circumstances under which it would be advisable for a manufacturer to sell her products directly to the consumer. (4 marks)
a)
b)
c)
d)
7. State the type of unemployment relating to each of the following descriptions. (4 marks)
a) Caused by alternating trading patterns occurring at similar times.
b) Arises where workers have more skills and higher qualifications than the job requirements
c) Arises out of a mismatch between the skills possessed by potential employees and the location of the jobs available
d) Arises when people are unwilling to take up jobs due to low pay
8. Highlight four advantages of government involvement in business activities in Kenya. (4mks)
a)
b)
c)
d)
9. Highlight four forms of written communication that the minister of education could use to pass on information. (4 marks)
a)
b)
c)
d)
10. The diagram below shows the current demand for petrol.
a) What is the effect of a fall in the prices of cars on demand for petrol? Give a reason for your answer (2 marks)
b) Draw a new demand curve on the diagram above to show the effect of a fall in price of cars. (2 marks)
11. State four features of a monopolistic market. (4 marks)
a)
b)
c)
d)
12. Outline four circumstances under which a gap may exist in the market. (4marks)
a)
b)
c)
d)
13. Highlight the procedure of claiming an insurance claim. (5marks)
a)
b)
c)
d)
e)
14. State four factors that may be considered when measuring the size of a firm. (4 mks)
a)
b)
c)
d)
15. The diagram below shows the circular flow of income in a two-sector economy. Indicate what the letters A, B, C and D represents. (4marks)
16. The following are balances from the books of Gakoigo traders as at 31st December 2015.
Furniture 80,000
Debtors 20,000
Creditors 40,000
5 years KCB loan 300,000
Motor vehicles 400,000
Cash at hand 20,000
Cash at bank 120,000
3 years NBK loan 150,000
Stock 75,000
Capital 225,000
Prepare Gakoigo traders trial balance as at 31st December,2015. (4marks)
17. Identify the type of advertisement described by each of the following statements. (4marks)
i)
ii)
iii)
iv)
Promotes the name of the manufacturer.
Creates awareness about a product.
Uses names of famous persons to promote a product.
Portrays a product as better than others
.........................................
…………………………
………………………….
………………………….
18. Highlight three major types of office layouts. (3 mks)
a)
b)
c)
d)
19. State the effects of the following transactions on the balance sheet totals. whether an increase, decrease or no effect. (4marks)
i) Owner took cash from the business to buy food for his family.
ii) Received a cheque from a debtor.
iii) Issued a cheque to clear a loan.
iv) Bought goods on credit.
20. Outline four benefits that would make Zainabu to join a savings and credit co-operative society (SACCO) (4 marks)
a)
b)
c)
d)
21. On 1st January 2005, Kamau started a furniture shop with capital of Kshs120,000. During the year he took Kshs12,000 for his son’s birthday party. He also brought into the business private furniture worth Kshs20,000. At the end of the period, he had made a profit worth Kshs35,000. Determine Kamau’s capital at the end of the period. (4 marks)
22. Outline four consequences of poor arrangement of goods in a warehouse. (4 mks)
a)
b)
c)
d)
23. Highlight four advantages of paying for transactions using a cheque. (4 mks)
a)
b)
c)
d)
24. Outline four documents required by the registrar of companies to facilitate registration of Limited Companies (4 marks)
a)
b)
c)
d)
25. Outline four features of a supermarket ( 4 marks )
a)
b)
c)
d)
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