COMMERCE 2
REVISION QUESTIONS
CHAPTER 1 FORMS OF BUSINESS ORGANIZATIONS
1. With the aid of a diagram classify business organizations
2. Explain the formation procedure of a Private Limited Company
3. Highlight five different types of formal and statutory documents required in the formation of
a Public Limited Company
4. Describe the contents of a partnership deed that is required in the formation of a partnership
business
5. Explain five different types of preference shares
6. Explain the reasons why companies may prefer debentures as a source of finance
7. Describe the principles/characteristics of cooperative society
8. Highlight the different forms cooperative society
9. Describe reasons why government form public corporations
10. Identify five forms of incorporated business organizations both in the private and public
sector
11. Highlight the benefits of cooperative society to its members
12. Describe five types of partners in the partnership business
13. Elucidate the features of cooperative society
14. Explain the advantages of saving and credit cooperative society (SACCO) to its members
15. Highlight reasons that encourage private limited company to be converted to a public limited
company
16. Explain the characteristics of ordinary shares
17. Describe the procedure of issuing an initial public offer (IPO) for newly registered public
limited company
18. Elucidate reasons that they government may have to convert a company limited to a public
corporation
19. Describe circumstances when debentures are converted to share equity by public limited
company
20. Highlight the advantages of a producer cooperative to its members
21. Explain the challenges encountered by public corporations
22. Elucidate the problems encountered in the running of cooperatives
23. Describe the reasons why cooperative societies may face perennial shortage of capital
24. Elucidate the functions of consumer cooperative society
25. Describe the functions of wholesaler cooperative societies
26. Elucidate reasons why producer cooperatives have been particularly successful in developing
countries
27. Describe the differences of a public corporation from a joint stock company
28. Identify five types of state enterprises conducted by the by the government as public or
statutory corporations
29. Explain the functions of marketing boards set up to encourage the selling of agricultural
products
30. Elucidate the reasons for the formation of public corporations and other state enterprises
31. Describe the advantages of public corporations to a country
32. Elucidate the disadvantages of public corporations
COMMERCE II S&G LEVEL 2 EXAM REVISION QUESTIONS PREPARED BY Mr. ANTONY AMBIA 1
, CHAPTER 2 FORMS OF BUSINESS EXPANSIONS
a. Highlight the characteristics of large business organizations
b. Elucidate on the factors that determine the scale of production for a large scale business
c. Explain the characteristics of the following forms of business combinations; amalgamations,
absorptions and holding company
d. Identify five types of large business organizations
e. Explain the formation of holding companies
f. Elucidate the reasons that encourage the formation of cartels
g. Highlight reasons that may cause two or more companies to merge
h. Describe the different forms of mergers
i. Elucidate the benefits of forming trusts
j. Explain five different forms of business expansions
k. Highlight the characteristics of different lines of business combination
l. Explain the features of multinational companies
m. Describes five important roles multinational companies have on a country’s economy
n. Highlight the main ways a multinational company may benefit from a country they invest in
o. Elucidate five criticisms of multinational companies
p. Elucidate the challenges encountered by multinational companies
q. Highlight the different forms of internal economies of scale
r. Elucidate circumstances that results to dis-economies of scale
s. Describe the five different forms of external economies of scale
t. Highlight five factors that influence the location of a business
u. Explain reasons that encourage localization of industry
v. Describe the disadvantages of localization of industry
w. Elucidate the factors that favor delocalization of industry
x. Highlight the disadvantages of large scale business organizations
CHAPTER 3 BUSINESS PRACTICES
a) Highlight the features of monopolist market structures
b) Elucidate the different types of oligopoly market structures
c) Distinguish a monopolistic market structure from a pure monopoly market structure
d) Differentiate a oligopolistic market structure from a perfect competition market structure
e) Explain five circumstances that convert an oligopolistic market structure to a cartel
f) Highlight the advantages of the monopolistic market structure to the buyer
g) Descried the disadvantages of the pure monopoly market structure to the buyer
h) Distinguish the monopolistic market structure from the oligopoly market structure
i) Differentiate the formation of a trust from that of a cartel
j) Highlight the advantages of the oligopolistic market to the buyer
k) Explain the disadvantages of the formation of cartel to the buyers
CHAPTER 4 BUSINESS FINANCE
1. Elucidate five important benefits of business finance
2. Highlight five factors determining the requirements of fixed capital
3. Explain the advantages of working capital to the business
4. Describe the factors affecting amount of working capital required by a business
5. Explain the different sources from which business finance can be rasised
COMMERCE II S&G LEVEL 2 EXAM REVISION QUESTIONS PREPARED BY Mr. ANTONY AMBIA 2
REVISION QUESTIONS
CHAPTER 1 FORMS OF BUSINESS ORGANIZATIONS
1. With the aid of a diagram classify business organizations
2. Explain the formation procedure of a Private Limited Company
3. Highlight five different types of formal and statutory documents required in the formation of
a Public Limited Company
4. Describe the contents of a partnership deed that is required in the formation of a partnership
business
5. Explain five different types of preference shares
6. Explain the reasons why companies may prefer debentures as a source of finance
7. Describe the principles/characteristics of cooperative society
8. Highlight the different forms cooperative society
9. Describe reasons why government form public corporations
10. Identify five forms of incorporated business organizations both in the private and public
sector
11. Highlight the benefits of cooperative society to its members
12. Describe five types of partners in the partnership business
13. Elucidate the features of cooperative society
14. Explain the advantages of saving and credit cooperative society (SACCO) to its members
15. Highlight reasons that encourage private limited company to be converted to a public limited
company
16. Explain the characteristics of ordinary shares
17. Describe the procedure of issuing an initial public offer (IPO) for newly registered public
limited company
18. Elucidate reasons that they government may have to convert a company limited to a public
corporation
19. Describe circumstances when debentures are converted to share equity by public limited
company
20. Highlight the advantages of a producer cooperative to its members
21. Explain the challenges encountered by public corporations
22. Elucidate the problems encountered in the running of cooperatives
23. Describe the reasons why cooperative societies may face perennial shortage of capital
24. Elucidate the functions of consumer cooperative society
25. Describe the functions of wholesaler cooperative societies
26. Elucidate reasons why producer cooperatives have been particularly successful in developing
countries
27. Describe the differences of a public corporation from a joint stock company
28. Identify five types of state enterprises conducted by the by the government as public or
statutory corporations
29. Explain the functions of marketing boards set up to encourage the selling of agricultural
products
30. Elucidate the reasons for the formation of public corporations and other state enterprises
31. Describe the advantages of public corporations to a country
32. Elucidate the disadvantages of public corporations
COMMERCE II S&G LEVEL 2 EXAM REVISION QUESTIONS PREPARED BY Mr. ANTONY AMBIA 1
, CHAPTER 2 FORMS OF BUSINESS EXPANSIONS
a. Highlight the characteristics of large business organizations
b. Elucidate on the factors that determine the scale of production for a large scale business
c. Explain the characteristics of the following forms of business combinations; amalgamations,
absorptions and holding company
d. Identify five types of large business organizations
e. Explain the formation of holding companies
f. Elucidate the reasons that encourage the formation of cartels
g. Highlight reasons that may cause two or more companies to merge
h. Describe the different forms of mergers
i. Elucidate the benefits of forming trusts
j. Explain five different forms of business expansions
k. Highlight the characteristics of different lines of business combination
l. Explain the features of multinational companies
m. Describes five important roles multinational companies have on a country’s economy
n. Highlight the main ways a multinational company may benefit from a country they invest in
o. Elucidate five criticisms of multinational companies
p. Elucidate the challenges encountered by multinational companies
q. Highlight the different forms of internal economies of scale
r. Elucidate circumstances that results to dis-economies of scale
s. Describe the five different forms of external economies of scale
t. Highlight five factors that influence the location of a business
u. Explain reasons that encourage localization of industry
v. Describe the disadvantages of localization of industry
w. Elucidate the factors that favor delocalization of industry
x. Highlight the disadvantages of large scale business organizations
CHAPTER 3 BUSINESS PRACTICES
a) Highlight the features of monopolist market structures
b) Elucidate the different types of oligopoly market structures
c) Distinguish a monopolistic market structure from a pure monopoly market structure
d) Differentiate a oligopolistic market structure from a perfect competition market structure
e) Explain five circumstances that convert an oligopolistic market structure to a cartel
f) Highlight the advantages of the monopolistic market structure to the buyer
g) Descried the disadvantages of the pure monopoly market structure to the buyer
h) Distinguish the monopolistic market structure from the oligopoly market structure
i) Differentiate the formation of a trust from that of a cartel
j) Highlight the advantages of the oligopolistic market to the buyer
k) Explain the disadvantages of the formation of cartel to the buyers
CHAPTER 4 BUSINESS FINANCE
1. Elucidate five important benefits of business finance
2. Highlight five factors determining the requirements of fixed capital
3. Explain the advantages of working capital to the business
4. Describe the factors affecting amount of working capital required by a business
5. Explain the different sources from which business finance can be rasised
COMMERCE II S&G LEVEL 2 EXAM REVISION QUESTIONS PREPARED BY Mr. ANTONY AMBIA 2
