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Dr Aggrey High School Form 3 Business Studies End Of Term 2 Exam Question Paper
Dr Aggrey High School Form 3 Business Studies End Of Term 2 Exam
Course:Business Studies
Institution: Form 3 question papers
Exam Year:2018
DR AGGREY HIGH SCHOOL
BUSINESS STUDIES
END OF TERM 2 EXAM
NAME…………………………………………CLASS…………..ADM NO……..
TIME: 2 HOURS
INSTRUCTIONS: answer all the questions in the spaces provided.
1. What are the reasons that would make an individual engage in business? (4marks)
(a) ………………………………………………………………………………………………
(b) ………………………………………………………………………………………………
(c) ………………………………………………………………………………………………
(d)……………………………………………………………………………………………….
2. List four types of utility and the production activity associated with each of them. (4marks)
(a) ………………………………………………………………………………………………
(b) ………………………………………………………………………………………………
(c) ………………………………………………………………………………………………
(d)……………………………………………………………………………………………….
3. Outline four ways in which the office facilitates effective handling of documents. (4marks)
(a) ………………………………………………………………………………………………
(b) ………………………………………………………………………………………………
(c) ………………………………………………………………………………………………
(d)……………………………………………………………………………………………….
4. Highlight four factors that may influence a consumer to purchase products from a kiosk rather than a supermarket. (4marks)
(a) ………………………………………………………………………………………………
(b) ………………………………………………………………………………………………
(c) ………………………………………………………………………………………………
(d)……………………………………………………………………………………………….
5. State four circumstances under which hire purchase may be used to acquire goods. (4marks)
(a) ………………………………………………………………………………………………
(b) ………………………………………………………………………………………………
(c) ………………………………………………………………………………………………
(d)……………………………………………………………………………………………….
6. The following transactions were extracted from the books of Sarah Traders for the month of March 2006:
March 10: Purchased goods on credit worth Kshs 200,000 from Salim Traders
March 15: Sold goods on credit worth Kshs 420,000 to Shah Traders
March20: returned goods worth ksh 50000 to salim traders.
March 25: shah traders returned goods worth 60000.
Record the above transactions in the ledger accounts (4marks)
7. Outline four methods that the Government of Kenya uses to regulate business activities. (4marks)
(a) ………………………………………………………………………………………………
(b) ………………………………………………………………………………………………
(c) ………………………………………………………………………………………………
(d)……………………………………………………………………………………………….
8. State four disadvantages of using internet as a means of communication. (4marks)
(a) ………………………………………………………………………………………………
(b) ………………………………………………………………………………………………
(c) ………………………………………………………………………………………………
(d)……………………………………………………………………………………………….
9. Give four reasons for observing ethical practices in product promotion. (4marks)
(a) ………………………………………………………………………………………………
(b) ………………………………………………………………………………………………
(c) ………………………………………………………………………………………………
(d)……………………………………………………………………………………………….
10. State four differences between life assurance and general insurance. (4marks)
Life Assurance General Assurance
11. The graph given below represents the demand and supply curves of milk: (4marks)
State four effects of a shift of the demand curve to the right. (4marks)
(a) ………………………………………………………………………………………………
(b) ………………………………………………………………………………………………
(c) ………………………………………………………………………………………………
(d)……………………………………………………………………………………………….
12. Outline four disadvantages that a manufacturer would suffer if wholesalers were eliminated from the chain of distribution. (4marks)
(a) ………………………………………………………………………………………………
(b) ………………………………………………………………………………………………
(c) ………………………………………………………………………………………………
(d)……………………………………………………………………………………………….
13. The following balance sheet was incorrectly prepared:
PEMBE TATU TRADERS
BALANCE SHEET
FOR THE YEAR ENDED31.12.12
KSH KSH
Stock 5000 Furniture 50,000
Bank overdraft 5000 Debtors 7000
Cash 9,000 Capital 66000
19,000 123, 000
Prepare a corrected balance sheet. (4marks)
14. The following figures relate to jumbo Traders for the year ended 31.12.13
Details kshs
Capital (31.12.13) 940,000
Net loss 20,000
Additional investment 420,000
Monthly drawings 5,000
Determine the capital as at 1.01.13 (4marks)
15. Identify the ledgers in which the following accounts are maintained. (5marks)
ACCOUNT LEDGER
Pendo(Debtor)
machinery
Rent
Capital
Juma(creditor)
16. Outline four ways of reducing the level of unemployment in Kenya (4marks)
(a) ………………………………………………………………………………………………
(b) ………………………………………………………………………………………………
(c) ………………………………………………………………………………………………
(d)……………………………………………………………………………………………….
17. Outline four ways in which households contribute to national income of a country (4marks)
(a) ………………………………………………………………………………………………
(b) ………………………………………………………………………………………………
(c) ………………………………………………………………………………………………
(d)……………………………………………………………………………………………….
18. The diagram below represents the relationship between population and income per capita.
P Q
(Axis)
S (axis)
State what is represented by P and S axes, and letters R and Q. (4 marks)
P
S
R
Q
19. Highlight four ways in which a business idea can be implemented. (4 marks)
(a) ………………………………………………………………………………………………
(b) ………………………………………………………………………………………………
(c) ………………………………………………………………………………………………
(d)……………………………………………………………………………………………….
20. State four factors that may influence the level of national income. (4 marks)
(a) ………………………………………………………………………………………………
(b) ………………………………………………………………………………………………
(c) ………………………………………………………………………………………………
(d)……………………………………………………………………………………………….
21. State four reasons that make it necessary for firms to maintain a healthy Environment. (4marks)
(a) ………………………………………………………………………………………………
(b) ………………………………………………………………………………………………
(c) ………………………………………………………………………………………………
(d)……………………………………………………………………………………………….
22. Highlight four benefits of a business plan to an entrepreneur. (4marks)
(a) ………………………………………………………………………………………………
(b) ………………………………………………………………………………………………
(c) ………………………………………………………………………………………………
(d)……………………………………………………………………………………………….
23. Outline four benefits of sea transport over air transport. (4marks)
(a) ………………………………………………………………………………………………
(b) ………………………………………………………………………………………………
(c) ………………………………………………………………………………………………
(d)……………………………………………………………………………………………….
24. In which ways can an investor benefit from the stock exchange? (4marks)
(a) ………………………………………………………………………………………………
(b) ………………………………………………………………………………………………
(c) ………………………………………………………………………………………………
(d)……………………………………………………………………………………………….
25. State three clauses found in the memorandum of Association. (3marks)
(a) ………………………………………………………………………………………………
(b) ………………………………………………………………………………………………
(c) ………………………………………………………………………………………………
15. The following balances were extracted from the books of Highlife General
Stores on 31st December 2015.
Item
Ksh
Land and buildings
650,000
Stock
470,000
Bank overdraft
80,000
Debtors
350,000
1 0 year Bank Loan
500,000
Creditors
220,000
Cash
50,000
Motor Van
150,000
Capita!
Required: Prepare the balance sheet of Highlife General Stores as at 31st December 2015.
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