BUSINESS STUDIES
FORM THREE TERM ONE 2024
Name………………………………………………… Adm. No ………………
Date ………………………………………………… Sign ……………………
TIME 2 HOURS
Instructions to candidate;
Answer all questions in this paper in the spaces provided after each.
For examiners use only
Question 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Score
Question 16 17 18 19 20 21 22 23 Total
Score
1
Section A:
Answer all questions
1. State four internal economies of scale experienced in a business environment
(4
Marks)
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2. Identify four features of a bonded warehouse (4marks)
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3. State four advantages of delocalization of firms (4
Marks
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2
4. Classify the following factors into either internal or external business environment.
(4 Marks)
Factor Classification
a) Customers
b) Objectives
c) Suppliers
d) Management
5. Highlight four factors that determine the size of a frim (4 Marks)
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6. The following are description of features of human wants. Identify the features that relate
to the descriptions in the spaces provided... (4 Marks)
No Description Feature
(a) A person is unable to fully satisfy all wants.
(b) Once satisfied, they have a tendency of being felt again.
(c) Some wants are satisfied together.
(d) The same want can be satisfied using different resources.
7. Identify four differences between goods and services. (4 Marks)
3
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8. Explain five reasons that make entrepreneurship important to an economy (4marks)
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9.. Fill in the table with the correct term as used in business studies. (4 Marks)
Definition Term
a) Study of all activities that are carried out in an
office
b) Study of how people struggle to meet their
endless needs using limited resources
c) Study of systematic ways of recording and
reporting business information for decision
making
d) Study of the process of identifying a business
opportunity and acquiring the necessary
resources to start and run it.
e) Study of trade and aids to trade
10. Give four reasons for continued existence of small firms in an economy (4 Marks)
4
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11.. Name the kind of utility created under the following situations (4marks)
Situation Type of utility
___________________________________________________________________a) processing
sugarcane to sugar_ _____________________________________________________________
b)Buying fruits from the market
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c)Keeping gumboots for rainy season
d)Going abroad for further studies
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12.Give four methods that can be used to determine the price of a product in the market
(4 Marks)
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13. Highlight four features of sole proprietorship (4marks)
5
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14. Identify four circumstances under which face to face communication may be ineffective
(4
marks)
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15. Highlight four principles of insurance ( 4marks)
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16. Outline four differences between insurance and assurance. (4 marks)
Insurance Assurance
a)
b)
c)
d)
17. Identify four characteristics of a good filing system (4 Marks)
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6
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18. Distinguish between choice, scarcity and opportunity cost. (2marks)
Section B: Answer all questions from this section.
21. Using a well labelled diagram, explain the following
a) positive shift in demand curve. (5 marks)
b) negative shift in supply curve (5marks)
22. With an aid of a well labelled diagram, explain excess demand and excess supply (10 marks)
7
23. Explain five factors that may lead to the shift of demand curve towards the right (10 marks)
