12. Define the following terms as used in Business Studies. (4marks)

(i) Extraction

(ii)Processing

(iii)Manufacturing

(iv)Trade

12. Suggest three ways that can be taken to improve human resource (3mk

13. State four Reasons why choice should be made in satisfying human wants. (4mks)

14. State four factors that may limit an individual's ability to satisfy his basic human wants. (4Mks)

15. Give four differences between goods and services (4 mks)

16. Describe four characteristics of Economic resources (4 mks)

17. For each of the following goods give two examples: (4 mks)

(a) Free goods

(b) Producer goods

(c ) Consumer goods

(d) Durable goods

18. Classify the following resources into man-made, human or natural (4 mks)

(a) Teachers

(b) Dams

(c)Roads

(d) Clothes

(e)Nurses

(f)Oceans

(g)Air

(h)Gold

19. Classify each of the following items into either comforts or luxuries (4 mks)

a) Golden necklace

b) Security

c) 40- bed roomed house

d) Medicine

21. Mention four external business environments that may affect business operations positively. (4 mks)

23.Name two differences between basic wants and secondary wants and give two examples of each (4 mks)

24. Highlight any four reasons why people start businesses (4 mks

25. Classify each of the following as either generic or enterprise competition (4 mks)

(a) A coffee processing firm competing with a tea-processing firm

(b) A choice between going to a cinema or to swim

(c) Ukweli Bookshop competing with Vitabu Bookshop

(d) Mt Kenya High school competing for academic performance with Mt Elgon High school