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Form 2 Business Studies questions and answers model test paper 2

List four sources of capital for public limited companies

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Explanation/Answer Text:

-Short banking loans
-Sales of shares and debentures
-Ploughed back profits
-Long term bank loans

Questions/Lessons List

1. List four ways in which an office may receive information. ( free lesson)

2. State four functions of a warehouse ( free lesson)

3. State four reasons of operating a business enterprise ( free lesson)

4. Give four ways in which an entrepreneur can improve the internal environment of his or her business ( free lesson)

5. Highlight four benefits associated with the use of containers in transportation today. ( free lesson)

6. Give four differences between money order and postal order. ( free lesson)

7. Outline four function of an Office ( free lesson)

8. Highlight four factors that may lead to an increase in the supply of maize ( free lesson)

9. Identify four uses of mobile phones ( free lesson)

10. Below are two cases when insurance company may fail to compensate the insured. For each case identify the insurance principle and the reason for non-compensation a)The insurer refuses to cover Owiye’s application to insure his brothers house against fire b)Kapati bakery insured ats bakery against fire, later the bakery was burned down by fire from a neighboring bakery. The insurer did not honor ( free lesson)

11. Highlight four ethical issues in product promotion ( free lesson)

12. Simiyu wants to buy furniture for his new office. Give four factors that he should consider when making the decision ( free lesson)

13. Outline four measures that the Kenya government can take to conserve forests which are of great economic importance to the country ( free lesson)

14. List four sources of capital for public limited companies ( free lesson)

15. Indicate the type of utility created by each of the following a)Shopkeeper b)Transport c)Baking d)Warehousing ( free lesson)

16. Outline the stages involved in the satisfaction of human wants ( free lesson)

17. List four characteristics of services ( free lesson)

18. Highlight four ways in which business can improve its human resources. ( free lesson)

19. Atieno insured his house for sh 720 000 against. The house was valued at sh 1 000 000. Part of the house valued at sh. 600 000 was destroyed by fire, calculate the amount of money atieno can claim for compensation ( free lesson)

20. State any four current trends in communication in Kenya. ( free lesson)

21. Enumerate four disadvantages of an open office layout ( free lesson)

22. Give the Objectives of advertisements ( free lesson)

23. State four benefits of insurance ( free lesson)

24. State four ways bonded warehouses are useful to the government ( free lesson)

25. Outline four acts of parliament enacted by the government to protect consumers against exploitation ( free lesson)

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