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Form 2 Business Studies questions and answers model test paper 1

Outline five circumstances why a manufacturer may not need a large warehouse for the goods produced.

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Explanation/Answer Text:

-When goods are produced on order
-When the manufacturer is closer to the market
-When goods produced are highly perishable
-When he produces low amount of goods
-When he produces high value goods.

Questions/Lessons List

1. The following descriptions relate to insurance policies. State the insurance policy that suits each of them. a)Covers employers due to financial loss due to dishonesty of employees b)Covers all possible risks that may occur out of operating motor vehicle c)Covers employees for injuries sustained at work d)Covers cargo in a ship for a particular journey. ( free lesson)

2. Identify the business environment described in each case below. a) The level of know-how and efficiency use of tools and other resources b)Considers age,population density and market size c)Considers beliefs, norms, attitudes, opinions and lifestyles which dictate consumer behavior d)Factors that affect the consumers buying abilities in terms of income levels ( free lesson)

3. Highlight five ways in which the productivity of workers may be improved. ( free lesson)

4. Identify four documents used in the delivery process in home trade. ( free lesson)

5. Outline five disadvantages of using advertisement as a method of product promotion to one customer. ( free lesson)

6. Highlight five reasons why purity, who has insured her shop with an insurance company may not be compensated when loss occurs. ( free lesson)

7. State five reasons caused by a payee that would make a bank to dishonor cheque ( free lesson)

8. Outline five circumstances why a manufacturer may not need a large warehouse for the goods produced. ( free lesson)

9. Describe the procedure followed when starting up a public limited company ( free lesson)

10. State four reasons why railway transport is not popular in Kenya. ( free lesson)

11. Kasyoka a business teacher is considering moving to Juba to work there. Give four factors that may hinder him from relocating ( free lesson)

12. Outline five weaknesses that may arise from using office machines in an organization ( free lesson)

13. Highlight five merits of government involvement in business ( free lesson)

14. Differentiate between the following phrases as used in Business a)Vertical and Horizontal line of Communication b)Over insurance and double insurance. c)Hire purchase and deferred payment d)A share and a debenture ( free lesson)

15. Explain the procedure followed when claiming for compensation after the death of the insured ( free lesson)

16. State five ways in which the government can use a warehouse to protect consumers ( free lesson)

17. Highlight five differences between insurance and gambling. ( free lesson)

18. Outline any five emerging trends in the transport industry ( free lesson)

19. Below documents are used in home trade: advice note, an invoice, a catalogue and an acknowledgement note. Match the documents with correct descriptions a)Sent by the seller to the buyer to confirm that the order has been received b)A formal request by the seller for payment of the goods delivered c)A description of goods illustrations, prices and terms of sale d) A document to inform the buyer ( free lesson)

20. List four benefits to a direct producer who engages in trade ( free lesson)

21. A viable business can be selected after a thorough SWOT analysis. Give full meaning of the word SWOT ( free lesson)

22. Identify four benefits of M-pesa services to the consumer ( free lesson)

23. Outline four characteristics of a public good ( free lesson)

Form 2 Business Studies questions and answers model test paper 1

Explanation/Answer Text:

Questions/Lessons List

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