Page 15 - Business Studies
P. 15
Business Studies for Secondary Schools
Chapter summary 2. Ms. Mahosha always cooks food for
her family. What type of production
1. Production transforms raw materials does she engage in?
into finished products to satisfy human (a) Direct production.
needs and wants. (b) Domestic services.
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2. Production is about creating goods (c) Indirect production.
and services, providing employment, (d) Food production.
improving living standards, increasing
government revenue, and boosting 3. Imagine you want to start making
economic development. snacks to sell to your teachers and
3. There are two types of production: fellow students at school. Which
direct and indirect. Direct production of the following options identifies
creates goods and services for the type of production you might
personal consumption, while indirect engage in?
production creates goods and services (a) Direct service.
for selling purposes. (b) Indirect production.
4. To engage in any production activity (c) Direct production.
effectively and efficiently, there must (d) Productivity.
be fundamental factors of production, 4. If Maendeleo Company Limited’s
which are land, labour, and capital, job advertisement requires a worker
while entrepreneurship organises all with a bachelor’s degree and ICT
other factors of production.
skills, what type of worker is it
looking for?
Revision exercise
(a) Unskilled worker.
In questions 1 to 5, choose the correct (b) Labourer.
answer among the given alternatives (c) Skilled labour.
and write its letter in your exercise (d) Semi-skilled labour.
book.
1. One of the following is a feature of 5. Which of the following refers to
land as a factor of production. making goods and services to satisfy
(a) It is manufactured. human needs and wants?
(b) It is the most mobile factor. (a) Wholesaling
(c) It lacks mobility. (b) Production
(d) Ability to organise other factors (c) Utility
of production. (d) Capital
9 Student’s Book Form Two
03/10/2024 16:07
Business Studies Form 2.indd 9
Business Studies Form 2.indd 9 03/10/2024 16:07
