Name: ______________________________________ Adm No.

: ____________________

Candidate’s Signature: ________________________ Date:

__________________________

565/1
BUSINESS STUDIES
JULY/AUGUST 2024
Time: 2 hours

ZERAKI ACHIEVERS 13.0 EXAMINATIONS 2024

Kenya Certificate of Secondary Education
565/1
FORM 2
BUSINESS STUDIES
TIME: 2hours

INSTRUCTIONS
Answer ALL the questions in the spaces provided.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

16 17 18 19 20 21 22 23 24

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 This paper consists of 6 printed pages. Candidates should check the
question paper to ascertain that all pages are printed as indicated and
that no pages are missing

1. Highlight four factors of production (4mks)

i) ………………………………………………………………………………………

ii) ………………………………………………………………………………………

iii) ………………………………………………………………………………………

iv) ………………………………………………………………………………………

2. Define the term parastatals (2mks)

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3. Highlight four sources of business idea (4mks)

i) ………………………………………………………………………………………

ii) ………………………………………………………………………………………

iii) ………………………………………………………………………………………

iv) ………………………………………………………………………………………

4. Outline four advantages of enclosed office layout (4mks)

i) ………………………………………………………………………………………

ii) ………………………………………………………………………………………

iii) ………………………………………………………………………………………

v) ………………………………………………………………………………………

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 5. Highlight four characteristics of itinerant traders. (4mks)

i) ………………………………………………………………………………………

ii) ………………………………………………………………………………………

iii) ………………………………………………………………………………………

iv) ………………………………………………………………………………………

6. Outline four essential elements of transport. (4mks)

i) ………………………………………………………………………………………

ii) ………………………………………………………………………………………

iii) ………………………………………………………………………………………

iv) ………………………………………………………………………………………

7. Classify each of the following activities in its appropriate level of production. (4mks)

Activities Level of production

i)Farming

ii)Entertainment

iii)Nursing

iv)Road construction

8. What are disadvantages of human porterage (4mks)

i) ………………………………………………………………………………………

ii) ………………………………………………………………………………………

iii) ………………………………………………………………………………………

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9. Name three modes of transport (3mks)

i) ………………………………………………………………………………………

ii) ………………………………………………………………………………………

iii) ………………………………………………………………………………………

10. Highlight four characteristics of a bonded warehouse. (4mks)

i) ………………………………………………………………………………………

ii) ………………………………………………………………………………………

iii) ………………………………………………………………………………………

iv) ………………………………………………………………………………………

11. Outline four disadvantages of face to face communication (4mks)

i) ………………………………………………………………………………………

ii) ………………………………………………………………………………………

iii) ………………………………………………………………………………………

iv) ………………………………………………………………………………………

12. State the type of utility created in the following activities. (4mks)

Activity Utility

i)Grinding maize

ii)Storing maize

iii)Miller transporting maize floor

iv)Selling maize floor in a shop

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 13. Highlight four factors to consider when choosing means of communication (4mks)

i) ………………………………………………………………………………………

ii) ………………………………………………………………………………………

iii) ………………………………………………………………………………………

iv) ………………………………………………………………………………………

14. Highlight five Principles of co-operatives (5 mks)

i) ………………………………………………………………………………………

ii) ………………………………………………………………………………………

iii) ………………………………………………………………………………………

iv) ………………………………………………………………………………………

vi) ……………………………………………………………………………………..

15. Differentiate between pure risk and speculative risk. (2mks)

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16. Identify sources of capital in sole proprietorship. (4mks)

i) ………………………………………………………………………………………

ii) ………………………………………………………………………………………

iii) ………………………………………………………………………………………

iv) ……………………………………………………………………………………

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 17. State the principles described in the following statements. (5mks)

i) The insured should reveal all the relevant information about the subject matter

whether asked for or not_______________________

ii) The wife may insure the life of her husband_________________________

iii) The damaged properties belongs to the insurer and not the insured.

___________________

iv) If one insures in two or more company on the same risk, all the insurers will

indemnify the insured proportionately_____________________

v) There must be a very close relationship between the loss suffered and the risk

insured against____________________

18. Highlight four characteristics of general insurance. ( 4 mks)

i) ………………………………………………………………………………………

ii) ………………………………………………………………………………………

iii) ………………………………………………………………………………………

iv ………………………………………………………………………………………

vi) ………………………………………………………………………………………

19. Explain five differences between a partnership and a public limited liability company

(10 mks)

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20. Explain five methods of government involvement in business activities. (10 mks)

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21. Kenya Standard Gauge Railway(SGR) is the one of Kenya’s biggest infrastructure

project since independence. Explain the disadvantages of trains that maybe associated

with it (10mks)

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