Question 1
State four reasons why it is difficult to satisfy human wants.
Answer
- Human wants are unlimited.
- Resources to satisfy human wants are scarce.
- Recurrent.
- Habitual.
- Vary in intensity and urgency.
- Resources to satisfy human wants are scarce.
- Recurrent.
- Habitual.
- Vary in intensity and urgency.
Question 2
State any four clauses contained in the memorandum of association.
Answer
- Name clause.
- Situation clause.
- Capital clause.
- Objective clause.
- Liability clause.
- Declaration.
- Situation clause.
- Capital clause.
- Objective clause.
- Liability clause.
- Declaration.
Question 3
State the nature of the following production activities
| Activity | Nature |
|---|---|
| (a) Flour milling | - |
| (b) Bread baking | - |
| (c) Cloth making | - |
| (d) Cotton ginning | - |
Answer
| Activity | Nature |
|---|---|
| (a) Flour milling | Processing |
| (b) Bread baking | Manufacturing |
| (c) Cloth making | Manufacturing |
| (d) Cotton ginning | Processing |
Question 4
State four situations that indicate existence of a business opportunity.
Answer
- Unavailability of products.
- Inadequate commodities.
- Too high prices.
- Poor quality product.
- Poor services.
- Inadequate commodities.
- Too high prices.
- Poor quality product.
- Poor services.
Question 5
Highlight any four roles that are played by ethics in businesses.
Answer
- Ensures fare play in competition.
- Ensures right s of employees are upheld
- Ensures customers are well treated.
- Ensures business operates in compliance with the law.
- Ensures right people are assigned right job.
- Ensures right s of employees are upheld
- Ensures customers are well treated.
- Ensures business operates in compliance with the law.
- Ensures right people are assigned right job.
Question 6
Identify four roles that equipments play in an office.
Answer
- Enables work to be done fast.
- Enhances better quality output and more presentable.
- Makes work easy and enjoyable.
- Provides comfortable working experience.
- Ensures security and effective control of work
- Increased productivity of employees.
- Enhances better quality output and more presentable.
- Makes work easy and enjoyable.
- Provides comfortable working experience.
- Ensures security and effective control of work
- Increased productivity of employees.
Question 7
Outline four circumstances under which a partnership may be dissolved.
Answer
- If the partner mutually agree to dissolve the business.
- In case of death, insanity or bankruptcy of a partner.
- In case of completion of the intended purpose.
- In case of course orders.
- In case of death, insanity or bankruptcy of a partner.
- In case of completion of the intended purpose.
- In case of course orders.
Question 8
State three ways in which government may regulate business activities.
Answer
- Licensing.
- Ensuring standards.
- Legislation.
- Ensuring standards.
- Legislation.
Question 9
Outline the sources of capital for co-operatives.
Answer
- Members contribution.
- Retained profit.
- Income from investment.
- Income from credit facilities.
- Retained profit.
- Income from investment.
- Income from credit facilities.
Question 10
Highlight five factors to be considered when selecting office equipment.
Answer
- Cost.
- Adaptability.
- Durability.
- Effect on staff morale.
- Availability of man power
- Adaptability.
- Durability.
- Effect on staff morale.
- Availability of man power
Question 11
Highlight the contents of articles of association.
Answer
- Rights of each type of shareholders.
- Methods of calling meetings.
- Powers duties and rights of directors.
- Rules regarding preparation and auditing of accounts.
- Methods of calling meetings.
- Powers duties and rights of directors.
- Rules regarding preparation and auditing of accounts.
Question 12
Give four essential elements of transport.
Answer
- Unit of carriage.
- Methods of propulsion.
- Ways.
- Terminals.
- Methods of propulsion.
- Ways.
- Terminals.
Question 13
Highlight five importance of transport to business.
Answer
- Linking consumers to producers.
- Employment creation.
- Promote specialization.
- Making goods and services more useful.
- Avoiding wastage.
- Employment creation.
- Promote specialization.
- Making goods and services more useful.
- Avoiding wastage.
Question 14
Highlight four reasons for studying business studies in Kenya.
Answer
- Career.
- Helps in appreciating role of government in business.
- Helps learners to appreciate the need of ethics in business.
- Assist learners to understand his/her environment better.
- Assist learner to acquire self discipline and positive attitude towards work.
- Helps in appreciating role of government in business.
- Helps learners to appreciate the need of ethics in business.
- Assist learners to understand his/her environment better.
- Assist learner to acquire self discipline and positive attitude towards work.
Question 15
Name four accounting documents that are used in home trade.
Answer
- Statement of account
- Debit note
- Payment voucher
- Credit note
- Receipt
- Debit note
- Payment voucher
- Credit note
- Receipt
Question 16
Name three accounting documents that are used in home trade.
Answer
(a) Sender - the one who originates the message.
(b) Message – subject matter of communication.
(c) Channel/medium-means through which the message is sent.
(b) Message – subject matter of communication.
(c) Channel/medium-means through which the message is sent.
Question 17
Identify four common means of verbal communication.
Answer
(a) Face to face conversation.
(b) Telephone conversation.
(c) Paging
(d) Radio calls.
(b) Telephone conversation.
(c) Paging
(d) Radio calls.