WILLIAMSVILLE SECONDARY SCHOOL

MOCK EXAMINATION MARCH 2024

PRINCIPLES OF BUSINESS

FORM: 5 TERM: 2 TIME: 2 hours

CANDIDATE FULL NAME:

CANDIDATE NUMBER:

15th MARCH 2024 (pm)

INSTRUCTIONS:

1. This paper consists of FIVE questions. Answer ALL questions.

2. Write your answers in the spaces provided in this answer booklet.

Do NOT write in the margins.

4. You are advised to take some time to read through the paper and plan your answers.

5. If you need to rewrite any answer and there is not enough space to do so on the
original page, you must use the extra lined page(s) provided at the back of this
booklet. Remember to draw a line through your original answer.

6. If you use the extra page(s) you MUST write the question number clearly in
the box provided at the top of the extra page(s) and, where relevant, include the
question part beside the answer.

Answer ALL questions.

 1. (a) Define the term ‘capital’ as a factor of production and state TWO

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(b) List FOUR sources of capital that could be used when setting up a business.

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(4 marks)

(i) Define the term ‘partnership’.

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(2 marks)

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(ii) Outline TWO benefits of June establishing a partnership over a sole trader type business.

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marks)

(iii) Suggest THREE ethical issues that June should consider in setting up and operating her
business.

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(iv) Explain to June the importance of conducting a feasibility study.

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(3 marks)

TOTAL: (20 MARKS)

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2. (a) Business organizations perform many transactions daily, which require the use of documents.

(i) List THREE types of business documents.

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 (ii) State THREE reasons why firms utilize documents in business transactions.
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(b) Distinguish between ‘insurance’ and ‘assurance’.

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( 4 marks)

(c) Name TWO types of insurance policies.

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(2 marks)

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(d) Outline ONE principle upon which insurance is based.
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(2 marks)

(e) Explain TWO ways in which insurance is beneficial to a firm.

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(6 marks)

TOTAL: 20 MARKS

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3. (a) State TWO advantages to the customer of utilizing EACH of the following terms of sales:

(i) Cash

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(2 marks)

(ii) Hire purchase

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(iii) Layaway

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(b) Describe THREE factors that can affect consumer behavior.

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( 6 marks)

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(c) (i) Define the term “market” as it relates to marketing.

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( 2 marks)
(ii) Identify TWO elements of the traditional marketing mix.

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( 2 marks)

(iii) List FOUR reasons for conducting market research.

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( 4 marks)

TOTAL: 20 marks.

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(4) (a) Define EACH of the following terms.

(i) Production
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( 2 marks)

(ii) Productivity
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( 2 marks)

(iii) Land

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( 2 marks)

(iv) Labour

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( 2 marks)

(vi) Capital

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( 2 marks)

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(vii) Enterprise

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( 2 marks)

(vivi) Labour Force

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( 2 marks)

(b) OUTLINE THREE factors that can affect the country's supply of LABOUR.

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( 6 marks)

TOTAL: 20 marks

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(5) (a) Describe THREE services offered by commercial banks.

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( 6 marks)

(b) List FOUR functions of a central bank

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marks)

(c) Define EACH of the following types of taxes:

(i) Progressive tax

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(2 marks)

(ii) Proportional tax

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(2 marks)

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(d) State THREE reasons why governments charge taxes.

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( 3 marks)

(e) (d) Outline THREE measures used by governments to protect consumers.

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( 3 marks)

TOTAL: 20 marks

END OF TEST

IF YOU FINISH BEFORE TIME IS CALLED, CHECK YOUR WORK ON THIS TEST.

TOTAL: 100 MARKS

HAPPY EASTER

POB MOCK EXAM MARK SCHEME

85% to 100% GRADE 1

70% to 84% GRADE 2

50% to 69% GRADE 3

30% to 49% GRADE 4

01% to 29% GRADE 5