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
- Answer all the questions in the spaces provided
- 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
- List FOUR disciplines studied in business studies. (4mks)
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- 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 |
- List FOUR characteristics of free goods. (4mks)
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- State FOUR types of business activities. (4mks)
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- Outline FOUR documents used in home trade. (4mks)
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- Muiga wants to start a business. State FOUR reasons why he would start one. (4mks)
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- ………………………………………………………………………………………………………
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- State FOUR equipment that facilitate mailing in an office. (4mks)
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- Highlight FOUR advantages of automatic vending machines. (4mks)
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- Mention FOUR reasons why a consumer wouldsatisfy basic wants before secondary wants. (4mks)
i)………………………………………………………………………………………………………………………………………………………………………………………………………………
ii)………………………………………………………………………………………………………………………………………………………………………………………………………………
iii)………………………………………………………………………………………………………………………………………………………………………………………………………………
iv………………………………………………………………………………………………………………………………………………………………………………………………………………
- 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 |
- Outline FOURsources of business idea. (4mks)
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- List down FOUR external factors of environment that affect the business negatively. (4mks)
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- State FOUR characteristicsof direct production . (4mks)
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- List down circumstances under which a cheque may be dishourned. (4mks)
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- Highlight FOUR importance of entrepreneurship to Kenyan Economy. (4mks)
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- Outline FOUR advantages of division of labour and specialization. (4mks)
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- State down FOUR advantages of engaging e-commerce in business activities. (4mks)
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- List FOUR causes of business failure. (4mks)
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19.Highlight FOUR small scale retailers without shops. (4mks)
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- List FOUR classification of economic resources (4mks)
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21.Outline FOUR different rewards for labour as a factor of production. (4mks)
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- Highlight FOUR measures that can be taken by an office to safeguard the property of the organization. (4mks)
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- ………………………………………………………………………………………………………………………………………………………………………………………………………………
- ………………………………………………………………………………………………………
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 2nd week. Calculate;
- Quantity discount (1mk)
- Cash discount (2mks)
c.Amount he paid (1mk)
__________________________________________________________________________________________________
BUSINESS STUDIES FORM 1 MARKING SCHEME TERM 3
- List FOUR disciplines studied in business studies. (4mks)
- Economics
- Commerce
- Accounting
- Office practice
- Entrepreneurship
- 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 |
- 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
- State FOUR types of business activities (4mks)
- Manufacturing
- processing of raw materials
- Extraction
- Construction
- provision of services
- trade
- Distribution of goods
- 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
- 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
- State FOUR equipment that facilitate mailing in an office (4mks)
- folding machine
- franking machine
- addressing machine
- sorting machine
- letter opener
- composite
- 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
- 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
- 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 |
- 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
- 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
- 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
- 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
- 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
- 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
- State down FOUR advantages of engaging in e-commerce in business activities. (4mks)
- facilitates access to large market
- Creates conducive environment for business to transact without discriminations
- reduces paperwork since dealings are done online
- reduces cost of sending receiving and storing information
- Enables one to access important information that will enable him improve the running of his business
- it is a faster way of doing business as it facilitates urgent transactions
- 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
- Highlight four small scale retailers without shops (4mks)
- Itinerant traders
- Roadside sellers
- open air market traders
- Automatic vending machines
- List FOUR classification of economic resources (4mks)
- Natural resources
- Man-made resources
- Human resources
- Renewable resources
- Non –renewable resources
- Outline FOUR different rewards for labour as a factor of production (4mks)
- wages
- salaries
- commissions
- tips
- 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
- 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 |
- 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 2ndweek.Calculate;
- Trade discount (1mk)
10/100×1000=sh 100
- Cash discount (2mks)
1000-100=900
2.5/100x900=sh.45
c.Amount he paid (1mk)
100+45=145
1000-145=sh 855
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