Grade 10 Business Studies β Business Activities (7 Lessons) Quiz
1. What is the main purpose of a business activity?
Business activities are carried out to produce goods or provide services that meet people's needs while earning an income (profit) for the owners.
2. Which economic sector does a factory that makes furniture belong to?
Manufacturing transforms raw materials into finished goods, which is the defining activity of the secondary sector.
3. Which of these is an example of a tertiary (service) activity in Kenya?
Banks provide financial services, which are part of the tertiary sector that offers services rather than physical goods.
4. Which of the following is NOT considered a factor of production?
Factors of production are land, labour, capital and entrepreneurship. Tax payments are a business cost, not a production factor.
5. Which is a key role of businesses in the Kenyan economy?
Businesses create jobs by employing labour to produce goods and services, helping reduce unemployment and support livelihoods.
6. Which of these is a service rather than a good?
A haircut is an intangible service performed for a customer, whereas the others are tangible goods.
7. What is often the main objective of a privately owned business?
Private businesses typically aim to earn profit, which rewards owners and allows reinvestment and growth.
8. Who among the following is an internal stakeholder of a business?
Internal stakeholders are people inside the business organization, such as employees and managers; customers and government are external stakeholders.
9. Which activity best describes the Kenyan 'Jua Kali' sector?
Jua Kali refers to informal artisans and craftsmen who work in small-scale enterprises, common in Kenya's informal economy.
10. Which of these is an example of value addition?
Processing raw maize into flour increases its usefulness and market value, which is value addition in business.
11. What is the difference between production and consumption?
Production involves making goods or services, while consumption is the act of using them to satisfy wants or needs.
12. Which of the following is an example of an input in the production process?
Inputs are resources used to produce goods or services; raw materials are primary examples of inputs.
13. Which item best represents capital as a factor of production?
Capital refers to man-made assets used in production, such as machinery, tools and buildings; a sewing machine is capital.
14. Which activity is part of the exchange function of business?
Exchange activities involve moving goods from producers to consumers, such as selling, advertising and transporting to market.
15. Which of these describes a market risk that a Kenyan business might face?
Market risk relates to changes in demand, prices or consumer preferences that affect sales; changing tastes reduce demand.
16. Which of the following is an internal factor in a business environment?
Internal factors are under the control of the business, such as management, staff and organizational structure.
17. Which is an example of an external factor affecting businesses in Kenya?
External factors originate outside the business and include political, legal, economic and social conditions like new laws.
18. Which statement best describes the private sector?
The private sector consists of businesses owned by individuals or companies that operate to earn profit, unlike public sector institutions.
19. Why do businesses pay taxes to the government in Kenya?
Tax revenue collected from businesses supports public goods and services, infrastructure and government operations.
20. Which of the following is an example of a perishable good?
Perishable goods spoil quickly and have a short shelf life; fresh milk can go bad and needs refrigeration or quick sale.
21. Which activity is an example of a service-based business in Kenya?
M-Pesa agents provide financial services (money transfers), which are intangible services offered to customers.
22. What is the correct sequence in the production process?
Production starts with inputs (resources), these are transformed through processing, resulting in outputs delivered to customers.
23. How does entrepreneurship help the Kenyan economy?
Entrepreneurs bring together land, labour and capital, start businesses, create jobs and introduce new goods or services.
24. What best describes a cooperative society as a form of business?
Cooperatives are member-owned organisations where members share ownership, control decisions and benefits equitably.
25. Which action adds value to raw coffee beans grown in Murang'a before selling them?
Roasting and packaging change the raw product into a higher-value finished product that can sell for more on the market.