SHINE STAR KAI HIGH SCHOOL

END TERM 2023 EXAMS

FORM 2 BUSINESS STUDIES TIME: 2HOURS
NAME: ---------------------------------------------------------------------------- ADM: ----------------- CLASS……….
Instructions: Attempt all the questions with the spaces provided.
1. Give four reasons for government involvement in business activities (4mks)
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2. Why does the government require people to obtain licenses before setting up business (4mks)
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3. Highlight four roles a Kenyan commercial attaché in the U.S.A (4mks)

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4. What measures can be taken by a government to create a conducive environment for businesses to
succeed (4mks)
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5. Outline four malpractices by business people consumers need to be protected against (4mks)
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6. Give four factors to consider while choosing a means of communication (4mks)

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7. Why is pipeline transport preferred to use of tankers in transporting petroleum products and water
(4mks)
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8. Under what circumstances would a firm rely on a public warehouse rather than building its own
(4mks)
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9. A humanitarian N.G.O intends to move food supplies to various areas in the country with people
struck by famine. Highlight four factors that that should be considered when choosing the means of
transporting the food. (4mks)
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10. Outline four advantages of written communication over verbal communication (4mks)
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11. Give four reasons that may lead to privatization of a public corporation (4mks)
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12. A group of doctor graduates intend to set a private hospital and run it as a partnership. Give four
benefits they shall enjoy which they couldn’t if each did it alone (4mks)
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13. Highlight four importance’s of a warehouse to a flour milling company. (4mks)

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14. Which is the most appropriate means of communication to send a message in the following cases;
a) To send information between departments or offices in an organization………………….
b) To send a message to many people in various geographical areas when the message is intended for
each is the same…………………………………………
c) To inform the ministry about findings about mass failure in a subject conclusion and
recommendation about the same………………………………………….
d) To produce a copy of document over a distant place ……………………………

15. The meteorological department passes weather forecasts regularly. Outline four barriers that may
limit effectiveness of their messages (4mks)
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16. Indicate whether the following is true or false as regards the memorandum of association of a
company.
a) Contains rules governing elections of officials --------------------------------
b) Indicates the proposed name of the company -----------------------------
c) Contains rules concerning preparation and auditing of books -----------------------------------
d) Indicates registered offices of the company where official notices and correspondence can be
received or of sent from -----------------------------
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17. Under what circumstances would one use a cart rather than a pick up for transport (4mks)
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18. State the term that matches the following descriptions as used in insurance? (4mk)
(a) A temporary document issued after payment of the first premium as the insured waits to
receive the policy……………………………………..
b) Transfer of a life assurance policy by an insured to another person…………………….
c) The value for which an insurance cover is taken as stated by the insured at the time of taking a
cover……………………………….
d) Amount payable to the insured by the insurer in case he/she terminates payment of premiums
before the insurance contract matures……..

19. State four benefits that maybe realized when two firms form a merger. (4 marks)
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20. State the principle of insurance that relates to each of the following descriptions. (4 marks)
a) For one to be compensated, there must be a close relationship between the cause of the loss and
the risk insured against…………………………………………
b) After compensation, the insured is restored to the former financial position he was just before
the loss occurred…………………………………………….
c) An insured must disclose all relevant material facts about the subject matter with absolute
honesty……………………..…………………………..
d) One can only insure what he/she stands to suffer direct financial loss in case the insured risk
occurs……………………………………………………………………..

21. State four benefits one gets from joining a savings and credit co-operative society. (4 marks)
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22. State the insurance cover one would take for each of the following cases. (4 marks)
a) Cover against losses for goods or cash while on transit………………………………………
b) Cover against losses that may arise due to dishonest employees………………………………………….
c) Cover against claims by employees for injuries suffered while on official duty…………………………
d) Cover against claims by the public for injuries that maybe sustained from accidental bites by a
family dog…………………………………………………
23. Give four features of a bonded warehouse. (4 marks)
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24. Give four advantages of containerization in movement of cargo. (4 marks)

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25. Give four features of property insurance (4 marks)

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