ZERAKI ACHIEVERS’ EXAMINATIONS (2023)

Term 1 - 2023
BUSINESS STUDIES (565)
FORM THREE (3)
Time: 2 Hours

Name: …………………………………………………………. Adm No: ……………….

School: ……………………………………………………….. Class: …………………..
Signature: …………………………………………………….. Date: …………………...

INSTRUCTIONS TO CANDIDATES

a) Write your name and Index number in the spaces provided above.
b) Write the date of examination in the spaces provided above.
c) Answer ALL the questions.
d) ALL answers must be written in the spaces provided in this booklet.

FOR EXAMINER’S USE ONLY

Question 1 2 3 4 5 6 7 8 9 10 11 12 13

Marks

Question 14 15 16 17 18 19 20 21 22 23 24 25 TOTAL

Marks

1|Page
1. During subject selection in your school, you decided to choose business studies as your
favorite subject among others. Highlight four ways in which business studies will be of
importance to your community. (4 marks)

a) __________________________________________________________________
____________________________________________________________________
b) __________________________________________________________________
____________________________________________________________________
c) __________________________________________________________________
____________________________________________________________________
d) __________________________________________________________________
____________________________________________________________________

2. Give the meaning of the following terms as used in business studies.

(4 marks)
a) Free goods _____________________________________________________
____________________________________________________________________
b) Producer goods __________________________________________________
____________________________________________________________________
c) Public goods ____________________________________________________
____________________________________________________________________
d) Non-material goods ______________________________________________
____________________________________________________________________

3. List four documents used in home trade at the order stage. (4 marks)
a) __________________________________________________________________
____________________________________________________________________
b) __________________________________________________________________
____________________________________________________________________
c) __________________________________________________________________
____________________________________________________________________
d) __________________________________________________________________
____________________________________________________________________

2|Page
4. Highlight four reasons why human wants are not satisfied easily. (4 marks)
a) __________________________________________________________________
____________________________________________________________________
b) __________________________________________________________________
____________________________________________________________________
c) __________________________________________________________________
____________________________________________________________________
d) __________________________________________________________________
____________________________________________________________________

5. Give four reasons why consumers need to make choices. (4 marks)

a) __________________________________________________________________
____________________________________________________________________
b) __________________________________________________________________
____________________________________________________________________
c) __________________________________________________________________
____________________________________________________________________
d) __________________________________________________________________
____________________________________________________________________

6. Highlight four reasons why individual may start a business. (4 marks)

a) __________________________________________________________________
____________________________________________________________________
b) __________________________________________________________________
____________________________________________________________________
c) __________________________________________________________________
____________________________________________________________________
d) __________________________________________________________________
____________________________________________________________________

3|Page
7. Identify the type of utility described below (4 marks)
Description Type of utility

a) Your parent bought you a business studies text book

from a bookshop

b) Your grandmother kept her harvest of groundnuts in her

granary

c) Loaves of bread brought to school by van

d) The carpenter made desks and chairs for students

8. Highlight four benefits of division of labour to an organization. (4 marks)

a) __________________________________________________________________
____________________________________________________________________
b) __________________________________________________________________
____________________________________________________________________
c) __________________________________________________________________
____________________________________________________________________
d) __________________________________________________________________
____________________________________________________________________

9. Give four ways in which consumers may benefit when producers compete in product
promotion. (4 marks)
a) __________________________________________________________________
____________________________________________________________________
b) __________________________________________________________________
____________________________________________________________________
c) __________________________________________________________________
____________________________________________________________________
d) __________________________________________________________________
____________________________________________________________________

4|Page
10. Highlight four benefits an individual would get by being self-employed.
(4 marks)
a) __________________________________________________________________
____________________________________________________________________
b) __________________________________________________________________
____________________________________________________________________
c) __________________________________________________________________
____________________________________________________________________
d) __________________________________________________________________
____________________________________________________________________

11. Identify four ways through which a business can ethically uphold a healthy environment.
(4 marks)
a) __________________________________________________________________
____________________________________________________________________
b) __________________________________________________________________
____________________________________________________________________
c) __________________________________________________________________
____________________________________________________________________
d) __________________________________________________________________
____________________________________________________________________

12. Highlight four external factors that may affect the business operations negatively.
(4 marks)
a) __________________________________________________________________
____________________________________________________________________
b) __________________________________________________________________
____________________________________________________________________
c) __________________________________________________________________
____________________________________________________________________
d) __________________________________________________________________
____________________________________________________________________
5|Page
13. Highlight four advantages of itinerant traders. (4 marks)
a) __________________________________________________________________
____________________________________________________________________
b) __________________________________________________________________
____________________________________________________________________
c) __________________________________________________________________
____________________________________________________________________
d) __________________________________________________________________
____________________________________________________________________

14. Highlight four roles of Nairobi stock exchange as a market for securities.
(4 marks)
a) __________________________________________________________________
____________________________________________________________________
b) __________________________________________________________________
____________________________________________________________________
c) __________________________________________________________________
____________________________________________________________________
d) __________________________________________________________________
____________________________________________________________________

15. Identify four methods used by the government to protect consumers.

(4 marks)
a) __________________________________________________________________
____________________________________________________________________
b) __________________________________________________________________
____________________________________________________________________
c) __________________________________________________________________
____________________________________________________________________
d) __________________________________________________________________
____________________________________________________________________

6|Page
16. Highlight four factors to consider when choosing a means of transport.
(4 marks)
a) __________________________________________________________________
____________________________________________________________________
b) __________________________________________________________________
____________________________________________________________________
c) __________________________________________________________________
____________________________________________________________________
d) __________________________________________________________________
____________________________________________________________________

17. Highlight four circumstances under which telex may be used to convey a message.
(4 marks)
a) __________________________________________________________________
____________________________________________________________________
b) __________________________________________________________________
____________________________________________________________________
c) __________________________________________________________________
____________________________________________________________________
d) __________________________________________________________________
____________________________________________________________________

18. You accompanied your elder sibling to your local registrar of persons office where he applied
for his national identity card. You sadly noted that the clerks that served you lacked etiquette.
Suggest four measures that they can take to improve on their etiquette.
(4 marks)
a) __________________________________________________________________
____________________________________________________________________
b) __________________________________________________________________
____________________________________________________________________
c) __________________________________________________________________
____________________________________________________________________

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d) __________________________________________________________________
____________________________________________________________________

19. Outline four conditions under which a warehouse may be considered to be working
efficiently. (4 marks)
a) __________________________________________________________________
____________________________________________________________________
b) __________________________________________________________________
____________________________________________________________________
c) __________________________________________________________________
____________________________________________________________________
d) __________________________________________________________________
____________________________________________________________________

20. Identify four uses of pro-forma invoice. (4 marks)

a) __________________________________________________________________
____________________________________________________________________
b) __________________________________________________________________
____________________________________________________________________
c) __________________________________________________________________
____________________________________________________________________
d) __________________________________________________________________
____________________________________________________________________

21. Identify four features of property insurance. (4 marks)

a) __________________________________________________________________
____________________________________________________________________
b) __________________________________________________________________
____________________________________________________________________
c) __________________________________________________________________
____________________________________________________________________
d) __________________________________________________________________
____________________________________________________________________
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22. Highlight four factors that may cause a rightward shift of the supply curve.
(4 marks)
a) __________________________________________________________________
____________________________________________________________________
b) __________________________________________________________________
____________________________________________________________________
c) __________________________________________________________________
____________________________________________________________________
d) __________________________________________________________________
____________________________________________________________________

23. Other than forces of demand and supply highlight four methods of determining prices of
commodities in a market. (4 marks)
a) __________________________________________________________________
____________________________________________________________________
b) __________________________________________________________________
____________________________________________________________________
c) __________________________________________________________________
____________________________________________________________________
d) __________________________________________________________________
____________________________________________________________________

24. Outline four factors that may be considered when measuring when measuring the size of the
firm. (4 marks)
a) __________________________________________________________________
____________________________________________________________________
b) __________________________________________________________________
____________________________________________________________________
c) __________________________________________________________________
____________________________________________________________________

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d) __________________________________________________________________
____________________________________________________________________

25. Outline four reasons why a firm may remain small. (4 marks)
a) __________________________________________________________________
____________________________________________________________________
b) __________________________________________________________________
____________________________________________________________________
c) __________________________________________________________________
____________________________________________________________________
d) __________________________________________________________________
____________________________________________________________________

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