Business Studies Questions: Practice Questions and Answers

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Business Studies Practice Questions and Answers

What are the unique characteristics of goods?Explain the meaning of the following concepts as used in business: Scarcity, Choice, Opportunity Cost.Give reasons why sometimes it becomes difficult to satisfy human wants.What are the characteristics of economic resources?Give the factors which constitute external environment of a business.State the roles of business in the society.State the distinguishing features of services.State and explain the most common business activities existing in the community.Highlight the characteristics of human wants.State ways in which exploitation of resources may be harmful to a country.Explain the factors which constitute an internal business environment.Indicate whether each of the following resources is either Renewable or non-Renewable economic resources. Coal, Leather, Gravel, Solar energy and Wood.State the reasons why it necessary to make a choice in the satisfaction of human wants.Explain the effects of business environment Explain the most common types of economic resources Indicate each of the following human wants as either basic or secondary: Education, Security, Shoes, Food, and Phone.Highlight the major differences between goods and services Highlight the main branches of business as a discipline of study.Briefly explain the meaning of the following terminologies as used in business: Resource, Environment, and Want.What roles does entrepreneurship play in the society?Classify the factors listed below as either internal or external. (i) Employees (ii) Inflation (iii) Technology applied State FOUR personal attributes that an office worker should possess. State FOUR ways through which government control businesses. State FOUR factors that a consumer should consider in satisfying competing needs. State FOUR ways through which organizations can improve efficiency of their workers. State FOUR FACTORS that can contribute to the success of a business. State FOUR advantages of indirect production. State FOUR demerits of using middle-men in distribution of goods and services. State FOUR advantages of buying goods on credit over hire purchase buying. State FOUR factors to consider before choosing the type of business to start. State FOUR ways used by organizations to safeguard and protect its property. State FOUR macro-environment factors that affect business performance. State FOUR government initiated methods of consumer protection. State FOUR circumstances a buyer may be required to pay cash with order. State FOUR limitations of consumer initiated methods of consumer protection. State FOUR reasons why an office is necessary in an organization. State FOUR benefits of business ethics. State FOUR features of a sole trader. State FOUR causes of business failure. State FOUR reasons why a cheque may be dishonored by a bank. A trader gives 20% trade discount on the value of goods bought above and also a cash discount 10% if payments are made State FOUR characteristics of services. Highlight FOUR circumstances where a trader may issue a credit note. Highlight FOUR ways in which consumers may be exploited. Identify four factors that influence the level of capital of a business enterprise. Give four features of economic resources State four reasons why people engage in business activities. Outline four tools used by the government to influence the quantity of a product supplied in a market. Highlight four factors that may be used to determine the size of a firm. The central bank is a banker to the government. Outline four banking services it provides to the Kenya government. Outline four barriers to written communication. State four reasons why few Kenyans take out life assurance policies. Outline four sources of a business idea. Highlight four circumstances under which a country may be classified as underdeveloped. State four benefits that consumers get from small scale retailers. Give four features that differentiate a public corporation from a public limited company. Highlight four undesirable effects of inflation to the Kenyan economy. State four visual means you would use when communicating with a friend. Distinguish the following types of goods, citing examples in each case. i). Intermediate and finished goods ii). Material..Outline four micro-economic factors that promote business operations. Highlight four benefits to a member of a savings and credit cooperative society. Clearly state the difference between the monopoly and perfect competition product markets. Highlight four reasons that account for the popularity of air transport in Kenya among the passengers. State four features of a developed country. Outline four measures the Kenyan Government may use to curb the high rate of unemployment among its youthful population.Highlight four limitations that may accrue to a producer who uses intermediaries in the distribution of her products. The use of electronic billboards in product promotion has gained a lot of popularity in the recent past. Give four advantages..Highlight four uses of a journal proper. Highlight four reasons for co-insurance. In the spaces provided below, state the characteristics of an entrepreneur to which each of the statements relate.On 1st Jan. 2017, Lyon opened a stationery shop with shs 65000.During the month, she invested and additional shs 12000 List four types of economic integration. Outline four contents of an invoice. State four ways in which the government can influences the price of a commodity. Outline four requirements for opening a current account with a commercial bank. Highlight four strategies that a small firm could adopt to expand so as to enjoy economies of scale. Other than taxation, outline four other sources of internal public finance. Give four benefits of a retailer establishing own business. Highlight four levels of inflation. Using a diagram, describe the effects of outward shift in supply curve on equilibrium price and quantity. Explain four measures that may be taken by the government to promote her export. The following Trial Balance was extracted From the books of Kongoe Auto spares as at 31st Oct 2011 Explain five functions of the central bank of Kenya in the Economy. Explain Five circumstances under which a manufacturer would find it advisable to distribute his goods through wholesaler Distinguish between shares and debenture as a source of finance. Outline five circumstances under which a firm will be located near the market for its products. Explain five ways in which the Entrepreneur contributes to the production of goods. Describe five means of payment that a trader may use to settle business debts. Explain five indicators of under development in Kenya. State the type of utility created by each of the following activities: (i) Delivering milk to a customer: (ii) Keeping..List four items that are considered when measuring the national income of a country using the expenditure approach. Outline four roles of International Monetary Fund (I.M.F.) Highlight four disadvantages of using internet as a means of communication. Outline four causes of cost-push inflation. State four disadvantages of a monopoly market structure. The central bank is a banker to the government. Outline four banking services it offers to the government. In the course of preparing his balance sheet as at 31st December 2010, Mwanibu found out that he had capital amounting to..State four ways that the government can use to service its public debt. Identify four limitations of after-sale service as a method of sales promotion. State four reasons why it is necessary for the government to carry out population census. State four benefits that Kenya will reap after the completion of the Lamu Port and Lamu South Sudan - Ethiopia Transport Highlight four reasons why employers are expected to provide their employees with insurance cover. Outline four measures to be taken by business to improve internal business environment. Highlight four factors to consider when deciding on an ideal office layout. State four negative effects of economic development. State four factors that inhibit entrepreneurial development. State the major use of each of the following documents: (i) Certificate of Trading (ii) Certificate of Incorporation..Highlight four factors that a producer would consider when choosing a distribution channel. From the following transactions, open the relevant ledger accounts. 1/1/2010 Sold goods on credit..From the following transaction, open the relevant ledger accounts. 2/1/2010 Bought goods on credit..Identify four documents used in the delivery process in home trade. Give four reasons for continued survival of small-scale firms in an economy despite the dominance and direct competition Outline four circumstances under which a producer would not require a lot of warehousing space. State four factors that influence the prices of shares traded at Nairobi Stock Exchange. State four ways in which management can influence business environment positively. Highlight four circumstances under which personal selling may be used in product promotion. Explain five benefits of business plan. Discuss five roles played by commercial banks in facilitating home trade. With the advancement in technology, there is unprecedented aggression in product promotion. Explain five unethical practices Explain five negative effects of inflation in an economy. Explain five limitations of courier services in communication. Explain five factors that determine the fertility rate of a country. The following transactions relate to Koko Traders for the month of September 2010. Sept. 2Sold goods on credit to Chui Explain five disadvantages of Indirect Taxes. Outline five measures that the Nandi County Governor would put in place to attract investors to locate their industries Outline five reasons why some countries find it difficult to adopt a free trade policy with trading partners. Explain obstacles of economic development in developing countries. The following balances were extracted from the books of Oloo Traders for the year ended 31st December 2004 Rent Five reasons why it is difficult to satisfy human wants. State four external business environments that may negatively affect performance of a business. Five disciplines of business studies. State any Four ways of reproducing office documents. Four demerits of subsistence farming in Kenya. Four benefits that Kenya stands to gain through the exploitation of the recently discovered oil in Turkana. Five likely qualities of an entrepreneur. Three possible returns for land and any two returns for labor. Four office equipment that are used in the finance department. Four office etiquette that a messenger should have. Four reasons why office documents should be filed. Four benefits of trading activities. Four merits of canteen located in a college. Four possible contents of a business plan. Four things a business should do to uphold accepted ethics. Four merits of large scale retailers. Four demerits of cash as a means of payment. Four factors that a retailer would consider before allowing a customer to buy goods on credit. Four factors that the Kenya Government need to embrace in order to promote entrepreneurship in the country. Four reasons why people enter into entrepreneurship. Four characteristics of services. Outline four types of business activities. Highlight four reasons why a cheque may be dishonored. List four essential elements of transport. Highlight four reasons why consumers need to be protected. Highlight four ways in which warehousing is useful to trader. Muthunduka Investments Ltd intends to promote its products to increase their sales volume.Highlight four circumstances...Give any four reasons why small scale firms continue to exist in economy dominated by large scale firms. Highlight any Four errors commonly found in a Trial balance. In the space provided indicate the effects of the transaction given assets, liabilities and capital by writing increase...State the principle of insurance to which each of the following statement relate. (a) There is a close connection Outline any four factors that would have led to the phenomenon shown in the diagram below. ..State any Four features of a human wants. Identify four features Monopolistic Market. The following information relate to Kikwetu Company Ltd as at 31 st December 2017. Use it to prepare a balance sheet as State Four reasons why short message service (SMS) is replacing letters as a way of communication. Identify the level of production for each of the following activities....State Four costs that intermediaries incur in the process of distributing goods. Name four types of unemployment. State four functions of an office. Highlight Four external factors that may negatively influence the operations of a business. Below are some entries in the cashbook of Rose Coco Traders for the month of July 2016....Outline Four features of a parastatal. State Four characteristics of a successful entrepreneur. The diagram below shows a two sector economy flow of income....Outline any Four circumstances under which a partnership may be dissolved. Discuss five factors that may promote entrepreneurship in Kenya. Explain five functions of a retailer to a consumer. Explain five ways through which a public limited company may be dissolved. On 1st August, 2010, Mariah had cash in hand Ksh 32,500 and cash at bank sh 1,365,000. During the month, the following..Explain five uses of National Income statistics to a country. Explain five circumstances under which containerization may be used to transport goods. Discuss five factors that could affect the quantities of cabbages supplied in a market. Explain five strategies that a small firm could adopt to expand so as to enjoy economies of scale. The following information relates to Konyu Traders as at 30th June, 2017: ..Explain the following terms/concepts in population: a) Fertility b) Optimum population c) Ageing population d) Declining..Distinguish between life assurance and general insurance. State the term given to each of the following components. (a) Study of the process of identifying a business opportunity Identify whether the following form the macro or micro environment of a business...Match the following activities with the levels of production. ...Highlight four benefits of a business plan to an entrepreneur. Outline four ways through which an entrepreneur may generate a business idea. Outline four advantages of open office layout. Mwangi is a businessman in Kiahungu market. Give four factors that he has to consider when giving goods on credit. Outline four circumstances under which a cheque may be dishonored. Write down the terms represented by letters p, q, r and s in the figure below..Identify the business unit that relates to each of the following statements...Highlight four activities that may be carried out in a stock exchange market. Outline four methods that the government of Kenya uses to regulate business activities. State four ways in which the government protects consumers. Outline four ways on how transport contributes to economic development. Identify the unit of carriage in the following means of transport. ..Outline four advantages of oral communication. Highlight four services that facilitate communication. Highlight four essentials of a good warehouse. Outline four features of bonded warehouses. Give four advantages of advertising through the radio. Outline four qualities of a good salesperson. Give four benefits of the 'pooling of risks' to an insurance company. State the term given to each of the following statements: (a) Activities carried out with a view of making profit ..Below are some factors that affect a business environment. State the business environment affected by each factor...Highlight four benefits of business studies to a learner. Distinguish between the following terms. (a) Comforts and luxuries (b) Human resources and man made resources. ...Outline four ways in which Kenya can use her natural resources economically for maximum benefit. Classify the following human wants as either basic or secondary....State FOUR reasons why basic wants must be satisfied first before secondary wants. Highlight FOUR characteristics of free resources. Name four characteristics of human wants. Classify the following resources as either renewable or non-renewable. Wood coal soda-ash, building, stove, wool, silk..Define the following terms as used in Business Studies. (i) Extraction (ii) Processing (iii)Manufacturing (iv) Trade Suggest three ways that can be taken to improve human resource. State four Reasons why choice should be made in satisfying human wants. State four factors that may limit an individual's ability to satisfy his basic human wants. Give four differences between goods and services. Describe four characteristics of Economic resources. For each of the following goods give two examples: (a) Free goods (b) Producer goods (c) Consumer goods (d) Durable good ...Classify the following resources into man-made, human or natural: (a) Teachers (b) Dams (c) Roads (d) Clothes (e) Nurses ...Classify each of the following items into either comforts or luxuries: a) Golden necklace b) Security c) 40- bed roomed ...Mention four external business environments that may affect business operations positively. State four micro-environmental factors that might contribute to business failure. Name two differences between basic wants and secondary wants and give two examples of each. Highlight any four reasons why people start businesses. Classify each of the following as either generic or enterprise competition: (a) A coffee processing firm competing with ...Briefly define the following forms of utilities: i.Form utility. ii.Possession utility iii.Place utility ...List four challenges faced by people as they seek to satisfy their wants. State three means of payment used in home trade. Kenya has diverse unexploited natural resources that once exploited would propel Kenya into a developed nation. List... S.M.E sector has been attributed to entrepreneurial education in Kenya. Outline four contributions of entrepreneurs..Outline four differences between public corporation and public companies. List four benefits consumers enjoy from warehousing. Highlight ways in which partners may be classified giving an example in each case. The Kenya government has diverse ways on controlling and regulating business in Kenya. Explain three ways that the Kenya ...There are various equipment used in offices, state the function of each of the following equipment in the office; ... Juma, Kipchoge and Murimi are deciding of forming a private limited company. Highlight three contents of the Articles of ...List four benefits of business studies to the Kenyan society. Containerization is a common feature in road and water transport. List five benefits of containerization. Boda Boda (Motor Cycles) have emerged as the most common means of transport in rural Kenya, highlight four demerits of ...List and explain five components of effective communication. Highlight four issues for consideration when selecting means of transport. Kenya Pipeline Company has been transporting petroleum products through the pipeline system to various parts of the ...State four types of business activities carried out in Kenya. Murimi visited Kenya commercial bank Kerugoya and noticed that the managers office was accessible to all since the bank ...Hawking is one of the simple forms of business in Kenya.List four disadvantages of Hawking business. Outline four emerging trends in office management. Highlight four key services offered on a warehouse. Outline four ways in which a student in secondary school may benefit from learning business studies. State any four challenges that a business may face by not filing its documents. Highlight four ways in which the government may encourage entrepreneurship. Outline any four limitations of direct production in a country. State the business environment associated with each of the following statements. i) Size, age and sex of people ii) ...Highlight four reasons why a business should prepare a business plan. Outline any four characteristics of goods.State four advantages of using franking machine in the office. Outline any four ways in which an office can safeguard and control its property. Outline four advantages of open-plan office. State any ways in which the utility of a commodity can be created. State four characteristics of labor as a factor of production. State four ways in which production activities way negatively, impact a community. Outline four ways in which office documents can be reproduced. Give four ways in which clothing satisfies human wants. Highlight four factors that should be considered when evaluating a business opportunity. List four factors that should be considered when choosing an office layout. Outline any four duties of the general manager. Outline four advantages of division of labor and specialization. State the rewards of each of the following factors of production....Outline four personal attributes an office worker should have in order to function effectively. Define the following : i) Producer goods ii) Capital goods iii) Consumer goods iv) Intermediate goods ...Outline four differences between partnership and cooperative societies. Outline four reasons for privatization of public corporations. Highlight four features of mail order stores. Outline four circumstances under which a seller may use cash with order. Outline four sources of business ideas that one can use. Highlight four internal measures a business may use to increase its growth and profitability. Motorcycles have recently become a very popular mode of transport in Kenya. List four benefits commuters enjoy by using ...Outline four circumstances under which downward communication may be used in a firm. Highlight four factors that influence entrepreneurial practices. Outline four reasons why the computer is fast overtaking the typewriter as office equipment. Outline four reasons why the government issues licenses to businesses. Outline the role of the stock exchange market in the economy. Outline four circumstances under which a limited liability company may be dissolved. Outline four circumstances when a government may form a parastatal. Give four reasons why air transport is preferred when transporting perishable goods. State four problems facing consumer associations in Kenya today. Outline four advantages of a supermarket. State four demerits of government involvement in business. Highlight four trends in office management. You have been employed as a receptionist at City bank. List four duties that you will perform. State four principles of cooperative societies. Highlight four advantages of sending parcels by courier firms. Give four clauses contained in the memorandum of Association of a company. Highlight four characteristics of human wants. State four external forces that may affect a business and its operations. Outline four factors to consider when deciding on a suitable location of an office. In the spaces provided below, state the document to which each of the following statement relate. ...Distinguish between derived demand and joint demand. Distinguish Shift and movement along demand curve. Outline four ways in which the Central Bank may use to reduce the amount of money in circulation. Outline the relationship between scarcity, choice and opportunity cost with respect to satisfaction of human wants. Using the balance sheet equation fill in the missing figures into the following tables. ...The National Transport Safety Authority (N.T.S.A) is a department within the transport sector in Kenya. Highlight four ...Highlight four roles of advertising agencies in product promotion. Highlight four differences between hypermarkets and departmental stores. Highlight four ways in which the government of Kenya promotes entrepreneurial development. State four channels of distribution for importation of agricultural produce. An entrepreneur may spot a gap in the market which may be converted into a business idea. Name four such gaps. Outline any four types of partnerships. State four specific objectives of advertising as a tool of sales promotion. Apart from government borrowing, outline four other sources of government revenue. The table below represents the supply of milk for eight weeks in the month of January and February 2009....State four services offered by a commercial bank to its consumers. Central Kenya has lately been experiencing a decline in the birth rate, State four reasons for this decline. Outline four benefits of using whatsapp in communication. Outline any four indicators of economic development. Give Five reasons why majority of Kenyans fear to borrow money from commercial Banks. Differentiate between a public corporation and a public limited company. Study the following table of the demand and supply of product x. ...Explain emerging issues in transport in Kenya. Explain five advantages of division of labor and specialization in the production process. Outline five characteristics of an economic union form of integration. Describe five circumstances when a country may be forced to control her imports. Explain five roles played by licensing as a government regulatory tool. Explain four reasons why upward communication should be encouraged in an organization. Indicate in the spaces provided below, whether each of the following resource is renewable or non-renewable...Describe five types of wholesalers operating in Kenya. Explain five factors that may inhibit the National income expansion. Explain five benefits of division of labour to an organization. Explain five reasons for observing ethics in promoting a product. On 1st July 2014, Mau Traders had cash in hand shs 62000 and cash at bank shs 233000. Debtors and creditors were ...Explain five features of an oligopolistic market. Explain four reasons why a trader may offer after sale services to the buyer. Explain five factors that account for continue used of carts as means of transport in Kenya. Explain four problems associated with determining consumer price indices in an economy. The following transactions took place in Mali traders in the month of June 2007 . July 4 Sold goods on credit to Young ...List four essential elements of transport. Highlight four ways in which warehousing is useful to trader. Muthunduka Investments Ltd intends to promote its products to increase their sales volume. Highlight four circumstances ...

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