Past Paper Questions

Question 1

Define the term entrepreneur.

Question 2

Define the term enterprise

Question 3

Define the term partnership

Question 4

Outline TWO benefits of establishing a partnership over a sole trader type business

Question 5

State FOUR reasons why a person may start a business

Question 6

State two advantages of being an entrepreneur

Question 7

State two disadvantages of being an entrepreneur

Question 8

Identify four characteristics of an entrepreneur

Question 9

Identify TWO problems faced by entrepreneurs

Question 10

Explain TWO ways in which entrepreneurship benefits the economy

Question 11

State THREE characteristics of cooperatives

Answer 11

1. Owned by its members
2. It has limited liability
   3.Profits are shared among members

Question 12

Distinguish between EACH of the following:
Sole Traders and Partnership

Question 13

Distinguish between EACH of the following:
Private and Public Sector

Question 14

List THREE types of business documents

Question 15

State THREE characteristics of a sole proprietorship

Answer 15

1. Only one owner
2. Unlimited Liability
3. Easy to start
4. Requires small amount of capital to set up

Question 16

State THREE characteristics of public liability companies

Question 17

Identify TWO stakeholders who are involved in a business

Question 18

Describe the concept of ‘mobile money’.

Answer 18

Mobile money is the use of a mobile phone in order to transfer funds between banks or accounts, deposit or withdraw funds or pay bills. It further encompasses using a mobile device to buy products. This may be in a physical or electronic setting.

Question 19

Outline TWO advantages and TWO disadvantages of the ‘barter system’. (4 marks)

Answer 19

Advantages:
1. It encouraged specialisation in production and better use of available resources.
2. It allowed for greater variety in diet as early families could exchange different food items with each other.
3. It provided a means to avoid losing any surplus produced.
4. It increased the total volume and variety of goods and services available for trade.

Answer 20

Disadvantages:
The need for a double coincidence of wants.
Difficulty establishing an agreed rate of exchange.
Indivisibility of goods.
Inability to store wealth.

Question 21

Outline THREE ways in which a free-market economy differs from a planned or command economy. (6 marks)

Question 22

State TWO advantages of a mixed economic system (2 marks)

Question 23

State TWO disadvantages of a mixed economic system (2 marks)

Question 24

Give 2 examples of countries with a mixed economic system (2 marks)

Question 25

What is the significance of the word ‘Limited’ in the name of a company?

Question 26

State the main purpose of each of the following documents:
Memorandum of Association
Articles of Association
Partnership Agreement

Question 27

State three functions of a business

Question 28

Identify THREE differences between a market economy and a planned economy

Question 29

Name a country which has a planned economy

Question 30

Name a country which has a mixed economy