Assessment Number ______________________

CHRISTIAN SOCIAL SERVICES COMMISSION (CSSC)  JOINT EXAMINATION FOR CHURCH SCHOOLS EASTERN ZONE 

FORM II PRE – NATIONAL ASSESSMENT

CODE: 065 BUSINESS STUDIES

Time: 2:30 Hours Year : 2025 

 Instructions

1. This paper consists of section A, B and C with a total of ten (10) questions.
2. Answer all questions in this paper
3. All answer must be written in the spaces provided.
4. All writings must be in black or blue ink except for diagrams which must be in pencil.
5. Communication devices and any unauthorized materials are not allowed in the examination room.
6. Write your Assessment Number on the top right hand corner of every page of your answer booklet(s).

SECTION A: (15 Marks)

Answer all questions in this section

1. For each of the items (i-x), choose the letter of the most correct answer from among the given alternatives and write its letter in the box provided.

i. Who is the final user of goods and services?

1. Distributor
2. Consumer
3. Retailer
4. Manufacturer

ii. Which one among these is a component of business studies?

1. Entrepreneurship
2. Accounting
3. Business management
4. All of the above

iv. Which of the following refers to making goods and services to satisfy human needs and wants? 

1. Wholesaling
2. Production
3. Utility
4. Capital

v. One of the following is a feature of land as a factor of production

1. It lacks mobility
2. It is manufactured
3. It is the most mobile factor
4. Ability to organize other factors of production

vi. If Maendeleo company limited’s job advertisement requires a worker with a bachelor’s degree and ICT skills, what type of worker is it looking for?

1. Unskilled worker
2. Labourer
3. Skilled labour
4. Semi-skilled labour

vi. Imagine you want to start making snacks to sell to your teachers and fellow students at school. Which of the following options identifies the type of production you might engage it?

1. Direct production
2. Direct services
3. Indirect production
4. Productivity

vii. Interest means_________________________

1. Profit
2. Buying and selling
3. Price of capital
4. Saving

viii. The process of making payment for the purchased products at a later date refers to;-

1. Purchases
2. Deffered payment
3. Borrowing
4. Cash payment

ix. Borrowing funds from financial institutions with the agreement of repaying them with interest over a specific time refers to;

1. Financial business
2. Raising fund
3. Loan
4. Differed payment

x. One of the following is NOT regarded as a consumer need

1. Clothing
2. Housing
3. Holiday
4. Water

2. Match the following items by writing the letter of the correct answer from List B against the number of items in List A in the table provided below

Answers

SECTION B: (70 Marks)

Answer all questions in this section

3. Briefly explain the following terms

1. Goods
2. Exchange
3. Distribution
4. Resources

4. (a) Explain three advantages of sole proprietorship

(a) State two disadvantages of sole proprietorship

5. Explain four uses of the warehouse in business operation

6. Briefly explain five reasons why small business management is important i.

7. Briefly explain types of production and give one example for each

8. (a) Write short notes on the following terms

1. Entrepreneurship
2. Skilled labour
3. Unskilled labour

(b) Briefly explain four characteristics possessed by an entrepreneur

9. (a) Explain the concept of the term sole proprietorship

(b) Evaluate four ways of solving challenges facing sole proprietorship

SECTION C: (15 Marks)

Answer question ten (10)

10. “Business opportunity identification is the foundation of successful entrepreneurship “Using real life or local examples explain four ways on how a person can identify and use business opportunities to improve their life and the community.