NAME: ………………………………………………… ADM NO.

: …………

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

BUSINESS STUDIES

APRIL 2024

TIME: 2 HOURS

EXAMINATION FORM THREE, ENDTERM ONE 2024

INSTRUCTION TO STUDENTS

1. Answer all the questions in the spaces provided

2. This paper consists of 6 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|Page
Instructions: Answer all questions

1. Give four macro-environmental factors that will lead to business success. (4 mks)
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
2. Give four reasons why it is difficult to satisfy human wants. (4 mks)
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
3. Identify four types of warehouses. (4 mks)
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
4. State four principles of insurance. (4 mks)
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
5. Daudi sold crates of soda to Otis at sh1000. He gave him a quantity discount of 10%. He
also gave him a cash disounts of : . (4 mks)
…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 payment by the end of 2nd week . Calculate
i Quantity discount. (1mk)

ii cash discount. (2mks)

iii Amount he paid (1mk)

6. Outline four Characteristics of pure competition market (4 mks)

2|Page
 ………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………

7. Highlight four trends in forms of business units . (4 mks)

………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
8. State four types of advertising. (4 mks)
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
9. State four principles of co-operatives . (4 mks)
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
10. Commerce is the study of trade and aids to trade. List four aids to trade . (4 mks)
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
……………………………………………………………………………………………...
11. Highlight four advantages of open office layout. (4 mks)
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
12. List down four features of a market (4 mks)

3|Page
 ………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………

13. A business opportunity exist where there are gaps in the needs of the market. Outline
four such gaps (4
mks)
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
14. Highlight four circumstances under which personal selling is appropriate . (4 mks)
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
15. Identify four sources of capital for partnership . (4 mks)
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
16. State four essential elements of effective communication . (4 mks)
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
17. List four factors to consider when selecting an office equipment . (4 mks)
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
18.State four importance of learning business studies to a student . (4 mks)

4|Page
………………………………………………………………………………………………………
………………………………………………………………………………………………………
………………………………………………………………………………………………………
………………………………………………………………………………………………………

19.Give four roles that a broker plays in the distribution of goods (4 mks)
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………

20.Outline four factors to consider while selecting means of transport. (4 mks)

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

21.State four barriers of to effective communication.(4 mks)

…………………………………………………………………………………………………
…………………………………………………………………………………………………
…………………………………………………………………………………………………
…………………………………………………………………………………………………
…………………………………………………………………………………………………
22.State four reasons for government involvement in business .(4 mks)

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

5|Page
…………………………………………………………………………………………………
…………………………………………………………………………………………………

23.State four needs for consumer protection .(4 mks)

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

24.State four elements of transport .(4 mks)

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

25.With the aid of diagram ,explain four different ways in which a commercial farmer in
kenya can be able to sell products to the customers . (4 mks)

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

6|Page