YNet StudyHub

1Which of the following is a characteristic of a sole trader?

A Owned by one person B Has limited liability C Shares are listed on the stock exchange D Managed by a board of directors

2What is the main purpose of a warehouse in a home trade business?

A To manufacture products B To store goods before they are sold C To advertise to customers D To provide banking services

3Which mode of transport is most suitable for moving bulk agricultural produce over long distances within Kenya?

A Motorcycle B Railway C Bicycle D Walking

4Which of the following is a function of the government in business?

A Setting price controls only for luxury goods B Providing a legal framework and regulation C Running all private enterprises D Eliminating competition entirely

5In business communication, which channel is most appropriate for sending a formal contract to a supplier?

A Text message B Social media post C Email with attachment D Phone call

6Which form of business unit limits the owners’ liability to the amount of capital they have invested?

A Sole proprietorship B Partnership C Limited liability company D Co-operative

7What is the main advantage of using a road transport system for local home trade deliveries?

A It is the cheapest for intercontinental shipments B It provides door‑to‑door service C It can carry hazardous chemicals without restrictions D It never experiences traffic delays

8Which of the following is an example of a public utility that the government may regulate?

A A private boutique shop B A national electricity provider C A family-owned bakery D A local sports club

9When a business uses a telephone network to place orders with a supplier, this is an example of:

A Vertical integration B Electronic communication C Physical distribution D Inventory control

10Which of the following best describes a co-operative business unit?

A Owned by shareholders seeking profit B Managed by the government C Owned and controlled by its members who share profits D Operates only in the agricultural sector