NAME……………………………………………….……………………..…….

ADM NO:…………………

BUSINESS STUDIES (565)

565
BUSINESS STUDIES
JULY /AUGUST 2018

TIME: 2 1/2 Hours

MWAKICAN FORM 2 JOINT EXAMINATION 2018

BUSINESS STUDIES

Instructions to the candidate.

 Write your name and admission number in the spaces provided.

 Answer all questions in the spaces provided.
 Section A takes 80 marks and Section B takes 20 marks.
 Ensure that the question paper has all the questions

For Examiners use only.

Question 1 2 3 4 5 6 7 8 9 10 11 1 13
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Questio 14 15 16 17 18 19 20 21 22 23 TOTAL
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 Section A: Answer all questions in this section (80 marks)

1. Mwangi wants to start a retail shop in Kerugoya Town, list any four macro-environments that he
must consider when starting his enterprise. (4 Mks)

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2. From the statements given below indicate the type of business activity described (4 Mks)

Description Business Activity

Combining different types of raw materials to
come up with a final product
Movement of goods from where they are
produced to where they are needed
Changing the form of goods without combining
it with other goods
Obtaining goods from their natural setting

3. Outline any four characteristics of human wants (4 Mks)

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4. Give any four reasons why production in subsistence sector is usually low. (4mks)

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5. Name the internal environments whose effects are described by the following statements: (3 Mks)

EFFECT INTERNAL ENVIRONMENT

(a) Comprises of machines, plants, vehicles,
buildings etc
(b) How instructions flow within the organisation
(c) Ability to conduct studies into creation of new
products and improve current production
systems
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 6. In the spaces provided below, write the type of partner described by each of the following statements
(4 Mks)
o One who is below 18years of age :______________________________________________

o One who has unlimited liability:________________________________________________

o One who gets involved in the daily running of the business:__________________________

o One who allows his/her name to be used in the business:_____________________________

7. Identify the type of wholesaler described in each of the following cases in the table below: (4 Mks)

Description Type of wholesaler

(a) They sell a wide range of goods within one line of products

(b) They stock their products in vehicles and move around selling to other
traders

(c) They stock particular types of goods and sell to other specialized
traders

(d) They operate on a self-service basis where other traders pick, pay and
transport goods on their own

8. Otwoma intends to start a sole proprietor business, outline five merits of this form of business(5
Mks)
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9. The table below shows description of work office machines. State the specific machines that perform
each task. (4mks)

Description of task done Name of machine

Used to cut off confidential office documents
into tiny pieces preventing them from getting
into wrong hands
Used to make holes on papers for filling
purposes
Used in safely removing pins from papers

Used to send printed messages such as maps,

photos
10. Name any four reasons why the Kenyan Government regulates business (4 Mks)
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 11. Fatuma has been appointed as a supervisor in Mawingu Enterprises, advise her on four personal
attributes she must uphold in the office. (4 mks)

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12. Highlight any four emerging trends in office management (4 Mks)

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13. State four reasons why consumer protection in Kenya has not been successful. (4 Mks)

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14. State any four modes of Land Transport in Kenya (4 Mks)

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15. From the statements below classify the terms used from the following:- Charter Party, Voyage
Charter, Time Charter Shipping Conference. (4 Mks)

Description Term
Agreement for hiring a ship for a particular
journey
Association of ship pwners who regulate the
operation of the shipping inductry
Agreement made between the ship owner when
a ship is hired to a given destination
A document signed when the ship is hired for a
given period

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 16. Give any four items included as a key component in the business plan. (4 Mks)

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17. Students of St Alamano Secondary school form two class have visited Nairobi Stock Exchange,
where they were taken through the different functions performed at the Stock Exchange. List any
four functions they were informed on. (4 Mks

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18. The government of Kenya has spent huge funds on upgrading and construction of Kenyans transport
system, outline any four reasons why the government views transport as an important pillar in Kenya
(4 Mks)

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19. Kalukya a motivational speaker visited Mwisho wa Lami Secondary School for a talk. After the talk
the school principals engaged the students and noted that very few students had learnt any valuable
tips from the talk, state four reasons for this ineffective talk in the school.

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20. Highlight the importance of warehousing in Kenya (4 Mks)

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Section B: Answer any two questions (20 Marks).

21. Explain five reasons why motor cycles form of transport has become a popular means of transport in
Kenya. (8 marks)

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22. Describe the differences between Public Corporations and Public Limited Company (10 Mks)
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23. Explain five circumstances where use of sign language is appropriate (10 Mks).

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