SUNRISE EVALUATION EXAMS FORM 3 -
2021
Kenya Certificate of Secondary Education (K.C.S.E)
Name…………………………………………………………………Adm No….………… Class………
School …………………………………………………………………….. Candidates
Signature………….
Date………………….
GRAND TOTAL
565/1 & 2
BUSINESS STUDIES
Form 3
SEPTEMBER 2021
Time: 2 Hours
INSTRUCTIONS TO CANDIDATES
Answer all the questions in the spaces provided.
For Examiner’s Use Only
Question 1 2 3 4 5 6 7 8 9 10 11 12 13
No
Marks
Question 14 15 16 17 18 19
No
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Marks
1. Highlight four circumstances under which air transport can be preferred to
transport goods from one place to another.
(4mks)
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2. List four costs incurred by intermediaries in the chain of distribution
(4mks)
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3. Outline four factors that comprise a negative internal environment in a business.
(4mks)
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4. Given below are functions of office equipment. Identify the name of the equipment
against
the rightful use.
(4mks)
Functions of the Machine Office Equipment
Used in posting information to
ledgers and preparing payrolls
To transmit printed messages such
as photographs, letters, and maps
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Usually fire proof where important
documents in an organization are
stored
Used to carry out many functions
such as storing information, typing
and performing complex calculations
5. Give four disadvantages of division of labour and specialisation.
(4mks)
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6. Highlight four reasons why one should have a good business plan.
(4mks)
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7. Outline four circumstances under which a profoma invoice may be used.
(4mks)
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8. Highlight four ways in which the government provides an enabling business
environment. (4mks)
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9. Eureka limited bought a building valued at Shs. 1,000,000 on 2 nd Feburuary 2013.
The
building was insured with two insurance companies lion and kangaroo for Shs.
600,000
and Sh. 400,000 respectively. In June 2013, fire damaged the building causing
Eureka
limited to suffer a loss of 20% of the building value. Determine the contribution
made
by lion and kangaroo. (4mks)
10. Outline four important documents that are required in the registration of a
public
company.
(4mks)
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11. The diagram below shows a shift in demand curve from D 0D0 to D1D1
D1
D0
Price
D1
D0
Quantity
Identify four factors that have made the demand curve to shift from D 0D0
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to D1D1 (4mks)
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12. State four types of market structures
(4mks)
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13. Give four reasons why firms choose to remain small in an economy
dominated
by large firms. (4mks)
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14. Commerce is the study of trade and aids to trade. List four aids to trade.
(4mks)
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15. State any FOUR advantages of using cell phones
(4mks)
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16. Explain five challenges that may be experienced by a new entrepreneur who
is
intending to start a business in Kenya.
(10mks)
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17. Explain the distinctions between each of the following sets of goods and
services. (10mks)
a. Free goods and economic
goods…………………………………………………………………..
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b. Producer goods and consumer
goods……………………………………………………………
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c. Perishable goods and durable
goods……………………………………………………………..
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d. Public goods and private
goods…………………………………………………………………..
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e. Intermediate goods and finished
goods……………………………………………………………
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18. Explain FIVE circumstances under which a public limited company would
be dissolved.
(10mks)
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19. Explain five factors that may lead to decline in the demand for oranges in
Nakuru Town. (10mks)
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