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

CLASS: ………………………………………………… DATE: …………………..

BUSINESS STUDIES
FORM 2
END OF TERM 2 EXAMINATION
JULY 2023
TIME: 2 HOURS

INSTRUCTIONS:
ANSWER ALL THE QUESTIONS IN THE SPACES PROVIDED

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1. State the term given to each of the following descriptions. (4mks)
a) Systematic way of recording business activities …………………………….
b) Ability to organize other factors of production in the right proportion in order to start
and run a business …………………………………………
c) Study of how human beings strive to satisfy their unlimited wants using scarce
resources ……………………………….
d) Activities that are carried out in an office ……………………………………..
2. Highlight four features of basic human wants. (4mks)
a) …………………………………………………………………………………..
b) …………………………………………………………………………………..
c) …………………………………………………………………………………..
d) …………………………………………………………………………………..
3. Highlight four sources of capital for companies. (4mks)
a) …………………………………………………………………………………..
b) …………………………………………………………………………………..
c) …………………………………………………………………………………..
d) …………………………………………………………………………………..
4. Outline four documents used in the delivery process in home trade. (4mks)
a) …………………………………………………………………………………...
b) ……………………………………………………………………………………
c) ……………………………………………………………………………………
d) ……………………………………………………………………………………
5. Outline four features of labour as a factor of production. (4mks)
a) ……………………………………………………………………………………
b) ……………………………………………………………………………………
c) …………………………………………………………………………………….
d) …………………………………………………………………………………….
6. Highlight four reasons why the government regulates business activities in the country
(4mks)
a) …………………………………………………………………………………….
b) …………………………………………………………………………………….
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 c) …………………………………………………………………………………….
d) ……………………………………………………………………………………..
7. Mr. Sudi started a business a year ago. The business started experiencing problems in the
second year and shortly thereafter closed its doors. Outline four possible reasons why the
business failed. (4mks)
a) ………………………………………………………………………………………
b) ………………………………………………………………………………………
c) ………………………………………………………………………………………
d) ………………………………………………………………………………………
8. State four benefits of a good transport system to an entrepreneur. (4mks)
a) ……………………………………………………………………………………….
b) ………………………………………………………………………………………..
c) ………………………………………………………………………………………..
d) ………………………………………………………………………………………..
9. Name the type of economic resources described by the following features. (4mks)
a) There are resources whose use can be restored or used again …………………….
b) They are resources created by the man to assist in further production ……………….
c) Are physical or mental efforts rendered by a human being in production ……………..
d) Are resources provided by the nature and are referred to as gifts of nature …………...
10. Outline 4 circumstances under which human poterage if preferred as a means of transport
(4mks)
a) ………………………………………………………………………………………..
b) ………………………………………………………………………………………...
c) …………………………………………………………………………………………
d) …………………………………………………………………………………………
11. State the level of production in each of the following activities. (4mks)

Activity Level of production

a) Cooking meals for students
b) Harvesting maize
c) Distribution of kerosene

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 d) Boiling milk using electricity

12. Highlight four barriers to effective communication. (4mks)

a) …………………………………………………………………………………………..
b) …………………………………………………………………………………………..
c) …………………………………………………………………………………………..
d) …………………………………………………………………………………………..
13. Highlight four importance of entrepreneurship to the growth of the economy. (4mks)
a) …………………………………………………………………………………………..
b) …………………………………………………………………………………………..
c) …………………………………………………………………………………………..
d) …………………………………………………………………………………………..
14. Highlight four reasons why Kenya needs to encourage the use of pipeline transport.
(4mks)
a) …………………………………………………………………………………………..
b) …………………………………………………………………………………………..
c) …………………………………………………………………………………………..
d) …………………………………………………………………………………………..
15. Outline the functions of the following office machines. (4mks)
a) Shredder ..…………………………………………………………………..
b) Franking machine ………………………………………………………….
c) Cash register ……………………………………………………………….
d) Cell phone ………………………………………………………………….
16. Outline four reasons why producer cooperatives are popular in Kenya. (4mks)
a) ………………………………………………………………………………
b) ………………………………………………………………………………
c) ………………………………………………………………………………
d) …………………………………………………………………………………
17. James is an employee in XYZ company limited. He has not been performing his duties
well and customers keep on complaining. Outline four personal attributes he should
improve on to perform his duties well. (4mks)
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 a) …………………………………………………………………………………….
b) ……………………………………………………………………………………..
c) ……………………………………………………………………………………..
d) ……………………………………………………………………………………..
18. State four circumstances under which hire purchase may be used to acquire goods.
(4mks)
a) ………………………………………………………………………………………
b) ………………………………………………………………………………………
c) ………………………………………………………………………………………
d) ………………………………………………………………………………………
19. State four malpractices against which consumers may need protection. (4mks)
a) ………………………………………………………………………………………
b) ………………………………………………………………………………………
c) ………………………………………………………………………………………
d) ………………………………………………………………………………………
20. Classify each of the following activities as either business activity or non- business
activity. (4mks)
a) Going to the stadium. .…………………………………………………………….
b) Buying mangoes to eat …………………………………………………………….
c) Selling maize for a fee …………………………………………………………….
d) Buying tomatoes for selling ……………………………………………………….
21. Explain five elements of communication. (10mks)
………………………………………………………………………………………………
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22. Explain five macro environments that may influence the operations of a business
positively. (10mks)
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