Form 1 Business Studies Exams and Marking Schemes Free

Form 1 Business Studies Exams and Marking Schemes Free

NAME: …………………………………………………   ADM NO.: ……………………

 

SCHOOL: …………………………   DATE: ………………… SIGN: ….……….

 

BUSINESS STUDIES

TIME: 2 HOURS

JOINT EXAMINATION – FORM ONE, TERM THREE 2023

INSTRUCTION TO STUDENTS

1. Answer all the questions in the spaces provided
2. This paper consists of 10 printed pages. Students should check the question paper to ensure that all pages are printed as indicated and no questions are missing.

 

FOR EXAMINER’S USE ONLY

 

QUESTION NO.	1	2	3	4	5	6	7	8	9	10	11	12	13
MARKS

 

QUESTION NO.	14	15	16	17	18	19	20	21	22	23	24	25
MARKS

 

 

GRAND TOTAL   MARKS

 

 

 

 

 

1. List FOUR disciplines studied in business studies.       (4mks)

 

1. ………………………………………………………………………………………………………………………………………………………………………………………………………………
2. ………………………………………………………………………………………………………………………………………………………………………………………………………………

• ………………………………………………………………………………………………………………………………………………………………………………………………………………

1. …………………………………………………………………………………………………………………………………………………………………………………………………………………

 

2. State the type of utility created by each of the following activities. (4mks)

 

ACTIVITY	LEVEL OF PRODUCTION
a)     Keeping money in the bank
b)     Baking a loaf of bread
c)     Importing  vehicles from Japan
d)     Selling  medicine to patient

 

 

3. List FOUR characteristics of free goods. (4mks)

 

1. ………………………………………………………………………………………………………………………………………………………………………………………………………………
2. ………………………………………………………………………………………………………………………………………………………………………………………………………………

• ………………………………………………………………………………………………………………………………………………………………………………………………………………

 

4. State FOUR types of business activities. (4mks)

 

1. ………………………………………………………………………………………………………………………………………………………………………………………………………………
2. ………………………………………………………………………………………………………………………………………………………………………………………………………………

• ………………………………………………………………………………………………………………………………………………………………………………………………………………

1. ………………………………………………………………………………………………………………………………………………………………………………………………………………
3. Outline FOUR documents used in home trade.             (4mks)

 

1. ………………………………………………………………………………………………………………………………………………………………………………………………………………
2. ………………………………………………………………………………………………………………………………………………………………………………………………………………

• ………………………………………………………………………………………………………………………………………………………………………………………………………………
• ………………………………………………………………………………………………………………………………………………………………………………………………………………

 

6. Muiga wants to start a business. State FOUR reasons why he would start one.       (4mks)

 

1. ………………………………………………………………………………………………………
2. ………………………………………………………………………………………………………

• ………………………………………………………………………………………………………

1. ……………………………………………………………………………………………………
3. State FOUR equipment that facilitate mailing in an office.       (4mks)

 

1. ………………………………………………………………………………………………………………………………………………………………………………………………………………
2. ………………………………………………………………………………………………………………………………………………………………………………………………………………

• ………………………………………………………………………………………………………………………………………………………………………………………………………………

1. ………………………………………………………………………………………………………………………………………………………………………………………………………………

 

8. Highlight FOUR advantages of automatic vending machines.                   (4mks)
9. ………………………………………………………………………………………………………………………………………………………………………………………………………………
10. ………………………………………………………………………………………………………………………………………………………………………………………………………………

• ………………………………………………………………………………………………………

………………………………………………………………………………………………………

1. ………………………………………………………………………………………………………

……………………………………………………………………………………………………..

9. Mention FOUR reasons why a consumer wouldsatisfy basic wants before secondary wants.                                                                                                                                                              (4mks)

 

i)………………………………………………………………………………………………………………………………………………………………………………………………………………

ii)………………………………………………………………………………………………………………………………………………………………………………………………………………

iii)………………………………………………………………………………………………………………………………………………………………………………………………………………

iv………………………………………………………………………………………………………………………………………………………………………………………………………………

10. Name the factor of production that each of the following resources relate to.       (4mks)

 

Resource	Factor of production
a)     Manager
b)     Motor Vehicle.
c)     Water
d)     Owner

 

11. Outline FOURsources of business idea.                                                                               (4mks)
12. ………………………………………………………………………………………………………
13. ………………………………………………………………………………………………………

• ………………………………………………………………………………………………………

1. ………………………………………………………………………………………………………
2. List down FOUR external factors of environment that affect the business negatively. (4mks)

 

1. ………………………………………………………………………………………………………
2. ………………………………………………………………………………………………………

• ………………………………………………………………………………………………………

1. ………………………………………………………………………………………………………

 

 

 

 

 

13. State FOUR characteristicsof direct production . (4mks)

 

1. ………………………………………………………………………………………………………………………………………………………………………………………………………………
2. ………………………………………………………………………………………………………………………………………………………………………………………………………………

• ………………………………………………………………………………………………………………………………………………………………………………………………………………

1. ………………………………………………………………………………………………………………………………………………………………………………………………………………

 

14. List down circumstances under which a cheque may be dishourned. (4mks)

 

1. ………………………………………………………………………………………………………………………………………………………………………………………………………………
2. ………………………………………………………………………………………………………………………………………………………………………………………………………………

• ………………………………………………………………………………………………………………………………………………………………………………………………………………

1. ………………………………………………………………………………………………………………………………………………………………………………………………………………
2. Highlight FOUR importance of entrepreneurship to Kenyan Economy. (4mks)

 

1. ………………………………………………………………………………………………………
2. ………………………………………………………………………………………………………

• ……………………………………………………………………………………………………..

1. …………………………………………………………………………………………………….
3. Outline FOUR advantages of division of labour and specialization.                                                                   (4mks)

 

1. ………………………………………………………………………………………………………………………………………………………………………………………………………………
2. ………………………………………………………………………………………………………………………………………………………………………………………………………………

• ………………………………………………………………………………………………………………………………………………………………………………………………………………

1. ………………………………………………………………………………………………………………………………………………………………………………………………………………
2. State down FOUR advantages of engaging e-commerce in business activities.                 (4mks)

 

1. ………………………………………………………………………………………………………………………………………………………………………………………………………………
2. ………………………………………………………………………………………………………………………………………………………………………………………………………………

• ………………………………………………………………………………………………………

1. ………………………………………………………………………………………………………

 

18. List FOUR causes of business failure. (4mks)

 

1. …………………………………………………………………………………………………
2. …………………………………………………………………………………………………

• …………………………………………………………………………………………………

1. …………………………………………………………………………………………………

 

 

 

 

 

 

 

 

19.Highlight FOUR small scale retailers without shops. (4mks)

 

1. ………………………………………………………………………………………………………
2. ………………………………………………………………………………………………………

• ………………………………………………………………………………………………………

1. ………………………………………………………………………………………………………
2. List FOUR classification of economic resources (4mks)

 

1. ………………………………………………………………………………………………………
2. ………………………………………………………………………………………………………

• ………………………………………………………………………………………………………

1. ………………………………………………………………………………………………………

 

21.Outline FOUR different rewards for labour as a factor of production.   (4mks)

 

 

1. ……………………………………………………………………………………………………………………………………………………………………………………………………
2. ……………………………………………………………………………………………………………………………………………………………………………………………………

• ……………………………………………………………………………………………………………………………………………………………………………………………………

1. …………………………………………………………………………………………………………………………………………………………………………………………………..

 

 

 

 

 

22. Highlight FOUR measures that can be taken by an office to safeguard the property of the organization. (4mks)

 

1. ………………………………………………………………………………………………………………………………………………………………………………………………………………
2. ………………………………………………………………………………………………………………………………………………………………………………………………………………

• ………………………………………………………………………………………………………………………………………………………………………………………………………………
• ………………………………………………………………………………………………………

23.Classify each of the following activities into appropriate level of production.              (4mks)

 

Activity	Level of production
a)     Wholesaling
b)     Mining
c)     Maize milling
d)     Insurance

 

24.State FOUR differences between goods and services.                 (4mks)

 

GOODS	SERVICES

 

 

 

 

 

25.Daudi sold crates of soda to Otis at sh.1000 on credit. He gave him a quantity discount of 10%. He also gave him cash discounts of;

10% if payment was made before 1 week.

5% if payment was made after 2 weeks

2% if payment was made after 1 month

Otis made the payment by the end of 2^nd week. Calculate;

1. Quantity discount (1mk)

 

 

1. Cash discount (2mks)

 

 

c.Amount he paid                                     (1mk)

__________________________________________________________________________________________________

 

BUSINESS STUDIES FORM 1 MARKING SCHEME TERM 3

 

1. List FOUR disciplines studied in business studies.       (4mks)

 

• Economics
• Commerce
• Accounting
• Office practice
• Entrepreneurship

2. State the type of utility created by each of the following activities (4mks)

 

ACTIVITY	LEVEL OF PRODUCTION
a)     Keeping money in the bank	Time utility
b)     Baking a loaf of bread	Form utility
c)     Importing  vehicles from Japan	Place utility
d)     Selling  medicine to patient	Possession utility

 

3. List FOUR characteristics of free goods. (4mks)

• They are gifts of nature
• they are plenty in supply/abundant
• they are priceless/have no money value
• they have utility

4. State FOUR types of business activities (4mks)

 

 

• Manufacturing
• processing of raw materials
• Extraction
• Construction
• provision of services
• trade
• Distribution of goods

 

 

5. Outline FOUR documents used in home trade              (4mks)

 

• Credit note
• Debit note
• statement of account
• receipts
• letter of inquiry
• catalogue
• quotation
• price list
• order
• delivery note
• invoice
• pro-forma invoice

 

 

 

 

6. Muiga wants to start a business. State FOUR reasons he would start one                   (4mks)

• to earn profit
• To provide goods and services
• to create employment
• to be own boss
• as an outlet for new innovation
• to utilize spare time
• to utilize available resources

7. State FOUR equipment that facilitate mailing in an office                                                 (4mks)

 

 

• folding machine
• franking machine
• addressing machine
• sorting machine
• letter opener
• composite

 

8. Highlight FOUR advantages of automatic vending machines       (4mks)

• Commodities can be brought anytime because no attendant is required
• They save the owner the cost of employing a shop attendant
• They can be put strategically to boost sales e.g institution
• They are not affected by weather changes
• Provide good in cash basis protecting the owner from burden of bad debts
• They are fast and accurate

9. Mention FOUR reasons why a consumer  would satisfy  basic wants before   secondary wants                                                                                                                                                               (4mks)

• They cannot be postponed
• They are felt needs
• one cannot do without them/necessary for life/essential for survival
• They may be satisfied at individual level

 

10. Name the factor of production that each of the following resources relate to       (4mks)

 

Resource	Factor of production
a)     Manager	Labour
b)     Motor Vehicle.	Capital
c)     Water	Land
d)     Owner	Enterpreneurship

 

11. Outline FOUR sources of a business idea

• Listening to what people say
• Hobbies
• Surveys
• Newspapers
• Journals
• Waste materials
• Spotting the market gap
• Shows and exhibition

12. List down FOUR external factors of environment that affect the business negatively. (4mks)

• unfair competition
• Inadequate technology
• Natural calamities
• Unfair government policies
• Political instability
• Unfavorable socio-cultural practice
• poor infrastructure

13. State FOUR characteristics of  direct production                                  (4mks)

• Production of low quality goods
• Encourage individualism
• lead to low standards of living
• can be very tiring
• Does not encourage invention and innovation
• cheap/simple tools are used in production
• it is mostly used on small scale
• the rate of production is low
• A lot of time is wasted from  one job to another

14. List down circumstances under which a cheque may be dishourned (4mks)

• In case of insufficient funds in the account
• When the signature of the account holder differs from the specimen in the bank
• When the cheque is post dated
• if the cheque has been altered
• if the account holder is dead ,insane or bankruptcy

15. Highlight FOUR importance of entrepreneurship to Kenyan Economy (4mks)

• Creates employment
• Contributes to formation of capital
• Reduces rural-urban migration
• Raises standards of living
• improves infrastructure
• Reduces foreign dominance in the economy
• make use of local resources
• promotes technology
• promotes entrepreneurial culture
• saves on imports

16. Outline FOUR advantages of division of labour and specialization.                                                                   (4mks)

• Outpt per worker is greatly increased
• encourage invention and innovation
• makes it possible for greater use use of machine which makes production fast& efficient
• Enables worker to acquire skills in a particular field
• High quality goods and services are produced
• Worker spend less mental and physical effort
• saves on time

 

17. State down FOUR advantages of engaging in  e-commerce in business activities.           (4mks)

 

1. facilitates access to large market
2. Creates conducive environment for business to transact without discriminations

• reduces paperwork since dealings are done online

1. reduces cost of sending receiving and storing information
2. Enables one to access important information that will enable him improve the running of his business
3. it is a faster way of doing business as it facilitates urgent transactions
4. List FOUR causes of business failure. (4mks)

• poor management of people
• Poor location/Lack of customers
• Lack of raw materials
• Inadequate finance
• Stiff competition
• Poor infrastructure
• Lack of commitment to the business
• Poor financial management
• poor debt management
• poor public relations
• poor market research
• low level of creativity and innovation

 

19. Highlight four small scale retailers without shops       (4mks)

 

• Itinerant traders
• Roadside sellers
• open air market traders
• Automatic vending machines

 

20. List FOUR classification of economic resources (4mks)

• Natural resources
• Man-made resources
• Human resources
• Renewable resources
• Non –renewable resources

21. Outline FOUR different rewards for labour as a factor of production (4mks)

 

• wages
• salaries
• commissions
• tips

 

 

22. Highlight FOUR measures that can be taken by an office to safeguard the property of the organization. (4mks)

• Enhancing security against theft i.e by employing watchmen, installing security lights and fencing business premises
• Ensuring physical care by people using the property
• keeping records of movement and usage of the property
• Physical stock taking of each property
• Taking insurance cover
• proper repairs and servicing

 

23. Classify each of the following activities into appropriate level of production       (4mks)

Activity	Level of production
Wholesaling	Tertiary
Mining	Primary
Maize milling	Secondary
Insurance	Tertiary

 

 

24. State FOUR differences between goods and services. (4mks)

 

Goods	Services
Tangible	Intangible
Can be stored	Hard to be stored
Can be standardized	Difficult to be standardized
Can change possession	inseparable from the provider
Not all goods are perishable	Are highly perishable
Most can be seen	Services are invisible

 

 

 

 

 

 

 

 

 

 

25.Daudi sold crates of soda to Otis at sh.1000 on credit.He gave him  a quantity discount of 10%.He also gave him cash discounts of;

10% if payment was made before 1 week.

5% if payment was made after 2 weeks

2% if payment was made after 1 month

Otis made the payment by the end of 2^ndweek.Calculate;

1. Trade discount                                   (1mk)

10/100×1000=sh 100

 

 

1. Cash discount (2mks)

1000-100=900

^2.5/₁₀₀x900=sh.45

 

c.Amount he paid                                     (1mk)

100+45=145

1000-145=sh 855