HAPPYLAND GIRLS SENIOR SCHOOL
NAME………………………………………………. CLASS……….. ADMISSION……….
565/1
Paper 1
FORM 3 BUSINESS STUDIES
END TERM ONE (MARCH/APRIL 2024)
2 HOURS
INSTRUCTIONS TO CANDIDATES
i) Write your name and admission number in the spaces provided above
ii) Answer all questions in the spaces provided.
iii) This paper consists of 6 printed pages
iv) Check the question paper to ascertain that all the pages are printed as indicated and no questions are
missing.
1. Give for reasons why direct production is undesirable in a country. (4 marks)
a) …………………………………………………………………………………………………………………………………
b) …………………………………………………………………………………………………………………………………
c) …………………………………………………………………………………………………………………………………
d) …………………………………………………………………………………………………………………………………
2. State four modern developments in office management. (4 marks)
a) …………………………………………………………………………………………………………………………………
b) …………………………………………………………………………………………………………………………………
c) …………………………………………………………………………………………………………………………………
d) …………………………………………………………………………………………………………………………………
3. Give four differences between a Public Limited Company and a Public Corporation. (4 mks)
Public Limited Company Public Corporation
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i) i)
ii) ii)
iii) iii)
iv) iv)
4. State four reasons for government involvement in business activities. (4 marks)
a) ……………………………………………………………………………………..
b) ……………………………………………………………………………………..
c) ……………………………………………………………………………………..
d) ……………………………………………………………………………………..
5. For each of the statements below, state the appropriate term as used in insurance.(4 mrks)
Statement Term
a)Specified amount of money paid at regular intervals by the
insured to the insurer for coverage against losses
b)People employed by an insurance company to compute
expected losses and value of premiums
c)Amount of money refundable to the insured by the insurer
in case the former terminates contract before it matures
d) Loss incurred by a business as a result of disruption of
business in the event of the insured risk occurring
6. Highlight four problems that would be experienced by consumers in the absence of warehousing.
(4 marks)
a) …………………………………………………………………………………………………………………………………
b) …………………………………………………………………………………………………………………………………
c) …………………………………………………………………………………………………………………………………
d) …………………………………………………………………………………………………………………………………
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7. Highlight four external economies of scale that a firm may get as a result of growth in the industry. (4
marks)
a) ………………………………………………………………………………….
b) ………………………………………………………………………………….
c) …………………………………………………………………………………..
d) …………………………………………………………………………………..
8. Highlight four characteristics of oligopoly market structure. (4 marks)
a) ………………………………………………………………………………….
b) ………………………………………………………………………………….
c) ………………………………………………………………………………….
d) ………………………………………………………………………………….
9. The diagram below shows a change in the supply of a product. Outline four factors which may have
caused such a change. (4 marks)
Price
Quantity
a) …………………………………………………………………………………
b) …………………………………………………………………………………
c) …………………………………………………………………………………
d) …………………………………………………………………………………
10. Outline four roles played by the Nairobi Securities Exchange in the Kenyan economy. (4 marks)
a) …………………………………………………………………………………………………………………………………
b) …………………………………………………………………………………………………………………………………
c) …………………………………………………………………………………………………………………………………
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d) …………………………………………………………………………………………………………………………………
11. Mention four disadvantages of an ageing population to a country. (4 marks)
a) …………………………………………………………………………………………………………………………………
b) …………………………………………………………………………………………………………………………………
c) …………………………………………………………………………………………………………………………………
d) …………………………………………………………………………………………………………………………………
12. Outline four barriers to verbal communication ( 4 marks)
a) ………………………………………………………………………………….
b) ………………………………………………………………………………….
c) …………………………………………………………………………………
d) ………………………………………………………………………………….
13. Highlight four characteristics of labour as a factor of production ( 4 mrks)
a) ………………………………………………………………………………………………………………………………..
b) ………………………………………………………………………………………………………………………………..
c) ………………………………………………………………………………………………………………………………..
d) ………………………………………………………………………………………………………………………………..
14. State four reasons why a producer may involve wholesaler in distributing products ( 4 mrks)
a) ………………………………………………………………………………………………………………
b) ………………………………………………………………………………………………………………
c) ……………………………………………………………………………………………………………..
d) ………………………………………………………………………………………………………………
15. Give four basic characteristic features of a business idea ( 4 mrks)
a) …………………………………………………………………………………………………………………………………
b) …………………………………………………………………………………………………………………………………
c) …………………………………………………………………………………………………………………………………
d) …………………………………………………………………………………………………………………………………
16. Outline any four areas of business culture that may lead to the success of a business enterprise.
(4 marks)
a) …………………………………………………………………………………….
b) …………………………………………………………………………………….
c) …………………………………………………………………………………….
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d) …………………………………………………………………………………….
17. Identify the office etiquette described in the following statements. (4 marks)
Statement Office etiquette
Handling people politely, pleasantly and with consideration
Ability to convince other people tactfully
Performing duties with precision and correctness
Ability to keep time in attending duties and appointments
18. Outline four features of chain stores. (4 marks)
a) ………………………………………………………………………………………
b) ………………………………………………………………………………………
c) ……………………………………………………………………………………….
d) ……………………………………………………………………………………….
19. Outline four importance of national census statistics in an economy. (4mks)
a) …………………………………………………………………………………………
b) …………………………………………………………………………………………
c) …………………………………………………………………………………………
d) …………………………………………………………………………………………
20. Outline how scarcity, choice and opportunity cost are related. (4mks)
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
21. State any four essential elements of communication. (4mks)
a) …………………………………………………………………………………………
b) …………………………………………………………………………………………
c) …………………………………………………………………………………………
d) ………………………………………………………………………………………….
22. Highlight four reasons why firms tend to be localized in a particular area. (4mks)
a) ……………………………………………………………………………………….
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b) ……………………………………………………………………………………….
c) ………………………………………………………………………………………..
d) ……………………………………………………………………………………….
23. State the four principles that govern the co-operative societies in Kenya. (4mks)
a) ………………………………………………………………………………………..
b) ………………………………………………………………………………………..
c) ………………………………………………………………………………………..
d) ………………………………………………………………………………………
24. Give four disadvantages of long chain of distribution of goods to a buyer (4mks)
a) ………………………………………………………………………………………
b) ……………………………………………………………………………………...
c) ………………………………………………………………………………………
d) ………………………………………………………………………………………..
25. State four components of business studies (4mks)
a) ………………………………………………………………………………….
b) …………………………………………………………………………………..
c) …………………………………………………………………………………..
d) ………………………………………………………………………………….
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