ST.

CHARLES LWANGA
Business Studies form 3
December Holiday Assignment-2024
Section A
1. State four characteristics of a sole proprietorship form of business. 4mks
2. Highlight four features of labour as a factor of production. 4mks
3. Highlight four advantages of government involvement in business. 4mks
4. Give four advantages of advantages specialization and division of labour. 4mks
5. Highlight five circumstances under which personal selling may be appropriate to
the seller. 5mks
6. State four importance of insurance to the economy of Kenya. 4mks
7. State four circumstances under which a seller may issue credit note. 4mks
8. Kamau bought a car for sh 5000,000 and insured the car for sh 3000,000 against
accident. Later the car had an accident and the estimated loss was sh 10000,000.
Calculate how much Kamau was compensated. 4mks
9. State five functions of commercial attaches. 5mks
10. Highlight four functions of an office. 4mks
11. Highlight four elements of transport. 4mks
12. State four reasons why a school may prefer to communicate to parents by use of
letters. 4mks
13. Highlight four importance of warehousing to the consumer. 4mks
14. State four characteristics of basic human wants. 4mks
15. Highlight four features of life assurance policies. 4mks
16. State three reasons why firms may form cartels. 3mks
17. State five principles of cooperatives. 5mks
Section B
19. Explain any five principles of insurance. 10mks
20. Explain five types of advertising. 10mks
21.Outline four assumptions that are associated with perfect competition. (4mks)
22.Highlight four circumstances under which a trader may wish to hire an office
machine rather than purchasing it. (4mks)
23.State four gaps that an entrepreneur can exploit. (4mks)
24.Assuming you are a human resource manager in an institution, outline four
measures you can take to improve employees productivity. (4mks)
25.Land is a basic factor in production. Outline four characteristics that describe it.
(4mks)
26.Outline four limitation of using free samples in product promotion. (4mks)
27.State four characteristic of a good filling system. (4mks)
28.Outline four uses of a delivery note in trade. (4mks)
29.Define the following terms. (4mks)
a) Monopoly –
b) Duopoly-
c) Product differentiation –
d) Market –
30.Name the type of business organization described in each of the following. (4mks)
Description Business Organization
Formed by act of parliament
 May have infinite members
Managed by a committee
Formed between two to fifty
partners
SECTION C
1. Explain five sources of monopoly power. (10mks)
2. Explain five factors that need to be considered before a firm start producing a
certain production. (10mks)
3. Outline five disadvantages of localization of firms. (10mks)
4. Explain five factors influencing the choice of distribution channel. (10mks)

5. The following balances were extracted from the books of Malaba Traders on
1st January 2020
Kshs.
Capital 600,000
Creditors 180,000
Motor van 200,000
Furniture 200,000
Stock 60,000
Debtors 80,000
Cash 240,000
The following transactions took place during the year ended 30th June 2020

i. Purchased goods worth Kshs. 100,000 for which of Kshs.

70,000 was paid and the balance was still outstanding at the end
of the trading period.
ii. Cash Kshs. 10,000 was taken by the owner of the business to
pay the daughter’s school fees
iii. Sold furniture worth Kshs. 60,000 for which Kshs. 40,000 cash
was received and the balance was due at the end of the trading
period
Prepare a balance sheet as at 30th June 2020

a. Explain five factors that may promote entrepreneurship in

Kenya. (10 marks)

6.On March 1 2017, Lyon had cash in hand sh.87,000 and cash at bank sh.250,000.
During the month, the following transactions took place:
2017
March 2: Cash sales sh.60,000
3: Paid salaries sh.101,500 by cheque
7: Received a cheque of sh.76,000 from Henry after allowing him
a cash discount of 5%
13: Bought office furniture by cheque sh.86,000
17: Settled Marita’s account for sh.34,200 in cash, having deducted
sh.800 cash discount.
20: Received a cheque for sh.165,000 in respect of cash sales.
22: Paid wages sh,25,000 in cash.
24: Withdrew sh.32,000 from the bank for office use.
 25: Withdrew sh.4000 cash for personal use
29: received sh.17,000 cash form Alvin in settlement of his account
less sh.1000 cash discount.
31: Deposited all the money into the bank except sh.24,000.
Required:
Prepare a three column cash book duly balanced. (10 marks)

a. On 1st January 2015, Ndovu Traders had Ksh 30,000 in cash and Ksh 75,000
at the bank. During the month, the following transactions took place:
January 2: Bought goods in cash worth Ksh 15,500.
5: Received cash from Chui Ksh 23,750 after allowing 5% cash discount.
8: Withdrew Ksh 8,900 from the bank for personal use.
11: Maro, a debtor settled her account of Ksh 16,800 by a cheque of
Ksh 16,000.
15: Sales amounted to Ksh 24,250 in cash.
17: Paid Furaha traders Ksh 29,100 in cash in full settlement of their account
less 3% cash discount.
20: Withdrew Ksh 15,000 from the bank for business use.
22: Koko a debtor settled her account of Ksh 40,000 by cheque less 2.5% cash
discount
25: Paid wages Ksh 21,000 cash
Required: Prepare a duly balanced three column cash book. (12 marks)

Business Studies form 2

1.Outline four factors that influence the location of a firm.(4mks).
2.State four features of a perfectly competitive market (4mks).
3.Give any FOUR circumstances under which insurers may not be compensated. (4 marks).
4.Highlight four factors that can lead to excess demand of a product.4 mks.
5.Outline four steps involved in personal selling.(4mks).
6.In the table, match each type with its appropriate description.(4mks).
Description Type
a).creates awareness about a product
b).promotes the name of the manufacturer
c).persuades the consumers to buy a product
d).promotes a particular brand of a product
7.Outline four features of a bonded warehouse. (4mks).
8.Highlight the various types of advertising. (4mks).
9.Outline four factors to be considered when determining the amount of premium to be paid.
(4mks).
10. Highlight any four factors that may cause the supply curve to shift to the right.4mks.
11.Draw a diagram to show the effect of a shift in demand curve to the right on equilibrium
point, price and quantity.
12. The quantity demanded and supplied of a certain commodity can be expressed as
Qd=50+20p and QS= 20+16p respectively.
Find
i) Equilibrium price (2marks).
.ii) Equilibrium quantity ( 2 marks)

13.Outline the procedure for claiming compensation by the insured. (10 marks).
14.State four factors that determine the premiums charged by insurance companies for life
policies( 4 mks).
15.Explain four advantages of a bonded warehouse to the importer. (8marks).
16.The table below shows the demand and supply schedules for product A in a week.
Price(sh) Quantity demanded Quantity supplied
(‘000’ tonnes) (‘000’ tonnes)
35 5 80
30 10 65
25 20 55
20 25 40
15 30 35
10 40 20
5 55 5
Use the information in the table above, draw the demand and supply curve showing the
market equilibrium for the produce. Indicate the equilibrium price and quantity. (8 mk).
17.Explain five circumstances under which personal selling is appropriate.10 mks
18. Explain five principles of insurance. (10marks).

SECTION C

1. State FOUR characteristics of basic wants: (4mks)

2. List any TWO elements that comprises of the internal environment of a
business (2mks)
3. Outline any four features of economic resources (4mks)
4. Highlight any four types of small scale retailers with shops (4mks)
5. Name any four clauses of memorandum of association for limited liability
companies.(4mks)
6. State four principles of co-operatives (4mks)
7. Identify any four ways through which the government may regulate business
activities(4mks)
8. Highlight any four reasons why the government needs to get involved in business
activities (4mks)
9. State the essential elements of transport (4mks)
10. Outline any four advantages of carts as a means of transport (4mks)
11. Give any FOUR characteristic of tramps (4mks)
12. State any four importance of transport to a business (4mks)

1. Explain any six factors to be considered when selecting an office equipment (12mks)
2. Explain six factors that influences the choice of appropriate means of transport
(12mks)
3. Differentiate between Goods and Services (12mks)
 4. Describe any six methods used by the government to protect consumers (12mks)

Business Studies form 1

1.Give four sources of business ideas.(4mks)

2.Under what circumstances would cash with order (c.w.o) be appropriate in a business.(4mks)
3.Outline four principles of cooperatives (4mks)
4.Give four sources of capital for a limited liability company (4mks)
5.State four advantages of partnerships over sole proprietorship.(4mks)
6.Outline four measures taken by an office business to safeguard an organization
property.(4mks)
7.Outline four advantages of an enclosed office layout.(4mks)
8.State four factors of production giving a reward for each.(4mks)
9.Identify the macro-environmental factors affecting business operations as described by the
following.
Statement Factor

a. .Law and policies that regulate business

activities.
b. Affects buyer’s ability to buy
commodities offered by a business.
c. Firms selling similar products trying to
outdo each other.
d. Dictates how people live and what
products they consume.

10.Give four reasons why office documents should be filed.(4mks)

11.Outline four features of a supermarket (4mks)
12.Outline four reasons why choice is important in satisfaction of human wants.(4mks)
13.Explain three roles of an entrepreneur to an economy .(6mks)14.Identify four
characteristics of economic resources (4mks)
14.A form four School leaver intends to start a business. Outline three ways in which
knowledge of business studies will benefit him.(6mks)
15Describe various ways how businessmen/entrepreneurs can ensure that they observe business ethics.
(10mks)
16.Explain the meaning of an office as used in business studies
(2mks)
16.Highlight any five functions of a business office.
(5mks)
17.List any four methods that are used to reproduce documents in an office.
(4mks)
18.Highlight any five reasons as to why documents should be filed in an office.
(5mks)
19.Give three types of office layout.
(3mks)
20. Name five documents used in home trade (5mks)
21. Give four advantages of paying for good by cheque rather than cash (4mks)
c) Outline four disadvantages of higher purchase to a customer. (4mks)
d) Give the meaning of the following terms as used in payment;
i) Cash with order (2mks)
ii) Cash on delivery (2mks)
21.Highlight four activities that may be carried out in a stock exchange market. (4
marks)
22.Outline four circumstances under which a co-operative society may be dissolved.
(4 marks)
22.Outline four methods that the government of Kenya uses to regulate business
activities. (4 marks)
23.State four external factors that may negatively influence the operations of a
business. (4 marks)
24.Highlight four benefits of a business plan to an entrepreneur. (4 marks)
25.State four ways in which a good filing system may facilitate the operations of an
office. (4 marks)

EXTRAS

1. Give four characteristics of human wants. (4mks)

2. Outline four types of utility. (4mks)
3. Highlight four functions of an office. (4mks)
4. Outline four characteristics of land as a factor of production. (4mks)
5. Give four sources of business ideas. (4mks)
6. Identify four market gaps. (4mks)
7. Give four advantages of an open office layout. (4mks)
8. Outline four characteristics of itinerant traders. (4mks)
9. Highlight four importance of entrepreneurship to the Kenyan economy. (4mks)
10. Outline four services rendered by retailers to consumers. (4mks)
11. Give four characteristics of services. (4mks)
12. Outline four characteristics of an entrepreneur. (4mks)
13. Give three examples of basic wants. (3mks)
14. Highlight four characteristics of a good filing system. (4mks)
15. Give four documents used in home trade. (4mks)
16. Explain four factors that should be considered when selecting office
equipment. (8mks)