PRESIDENTS OFFICE REGIONAL ADMINISTRATION AND LOCAL GOVERNMENT

PRESIDENTS OFFICE REGIONAL ADMINISTRATION AND LOCAL GOVERNMENT

FORM ONE TERMINAL EXAMINATION

BUSINESS STUDIES

TIME: 2:30HRS MAY: 2025

INSTRUCTION

1. This paper consist of section A, B, and C.
2. Answer all questions in section A, B and C.
3. Answer all question in the space provided.
4. Cellular phoned, calculators and any computerized material are not allowed in the examination room.
5. All writing must be in blue/black ball pen except drawings which must be in pencil.
6. Write your examination number at the top right corner of every page.

SECTION A: 

OBJECTIVE QUESTIONS (15 Marks)

1. For items (i)-(x) write the correct answer from alternatives given in spaces provided

(i) Which of the following is the primary goal of a business?

1. To provide free goods and services
2. To generate profit
3. To employ all people in the community
4. To minimize innovation

(ii) The process of transforming raw materials into finished products to satisfy human needs and wants is known as:

1. Distribution
2. Exchange
3. Consumption
4. Production

(iii) Which of the following is an example of a free good?

1. Computer
2. Sunlight
3. Cloth
4. Pen

(iv) Which factor of production involves innovation, risk-taking, and organization?

1. Land
2. Labour
3. Capital
4. Entrepreneurship

(v) The ability to produce new and unique ideas is:

1. Innovation
2. Creativity
3. Risk-taking
4. Perseverance

(vi) A business owned, managed, and controlled by one person is a:

1. Partnership
2. Sole proprietorship
3. Company
4. Cooperative

(vii) Which of the following is a disadvantage of a sole proprietorship?

1. Easy to form
2. Quick decision making
3. Unlimited liability
4. Direct relations with customers

(viii) The ability to influence people towards the accomplishment of common goals is:

1. Management skill
2. Negotiation skill
3. Leadership skill
4. Communication skill

(ix) Which type of entrepreneurship focuses on providing innovative solutions to social problems?

1. Business entrepreneurship
2. Intrapreneurship
3. Social entrepreneurship
4. Commercial entrepreneurship

(x) The theory of entrepreneurship that views innovation as a key tool is:

1. Need achievement theory
2. Risk bearing theory
3. Innovation theory
4. Status withdrawal theory

Answers

2. Match the terms in Column A with their correct descriptions in Column B.

Answers

SECTION B: 

SHORT ANSWER QUESTIONS (40 MARKS)

3. a) Explain four business processes with examples.

b) Describe four purposes of a business.

4.(a) Differentiate between ‘needs’ and ‘wants’, giving three examples of each.

b) Explain why Business Studies is important for individual development.

5. (a) Identify and explain four resources used in production.

(b) Describe five features of a sole proprietorship.

6. (a) Explain five advantages of a sole proprietorship.

(b) Outline the steps involved in forming a sole proprietorship.

7.(a) Define entrepreneurship and an entrepreneur.

(b) Describe five characteristics of an entrepreneur.

8. (a) Explain three types of entrepreneurship.

(b) Describe four entrepreneurial skills.

9. (a) Explain five factors that facilitate entrepreneurship.

(b) Briefly explain four theories of entrepreneurship.

SECTION C: ESSAY QUESTION (30 MARKS)

10. (a) Discuss the challenges faced by sole proprietorships and suggest solutions for each.

(b) Evaluate the importance of entrepreneurship in the economic development of a country