Past paper

Form 4 Business national exam 2024/2025 with answers

The 2024/2025 Form 4 national exam paper for Form 4 Business, question by question. Take it timed like the real exam, then see the answer and explanation to every question.

55 questions, 100 marks
120 minutes

Take this paper

120 minutes, 100 marks. Multiple choice is marked for you; you mark your written answers against the marking points.

A free account is needed to start, so your answers and results are saved.

Instructions to candidates

Answer all questions. Write your answers on the exam paper. Time: 2 hours.

A. CIRCLE THE CORRECT ANSWER (40 POINT)

1
The kind of business activity labeled in the given picture is?
- A.Extraction
- B.Processing
- C.Manufacturing
- D.Construction
1 mark
2
The fundamental economic problem is that resources are limited but economic wants are insatiable. What terms best describe this problem?
- A.Trade -off.
- B.Productivity.
- C.Demand.
- D.Scarcity.
1 mark

The information was obtained from the book of kamil LTD.

Detail: So.sh
Capital: 24000
Stock: 1500
Debtor: 2000
Machinery: 20000
Cash: 4000
Determine the total liability

A.3500
B.515000
C.27500
D.1500

1 mark

4
The following are characteristics of an entrepreneur EXCEPT?
- A.Optimistic
- B.Resourceful
- C.Advocacy
- D.Motivated
1 mark
5
The increase of olive oil price in the Somalia market by 20% led to a rise in the quantities offered by 5%. Calculate the bid elasticity.
- A.1
- B.1.5
- C.0.25
- D.2.5
1 mark
6
Planning, organizing, command, coordination and control are sub activities of:
- A.Commercial activities
- B.Accounting activities
- C.Financial activities
- D.Managerial activities
1 mark
7
How does a team make decision in business project?
- A.By approval
- B.By Majority
- C.Weighted
- D.Unanimously
1 mark
8
The graph below shows the supply curve for coffee.
```
Using the information provided, the following factors cause the shift of supply curve to right. Which one is NOT:
```
- A.Consumer's tastes
- B.Number of sellers
- C.Technology
- D.Taxes and subsidies
1 mark
9
The following are characteristics of money which one is NOT?
- A.Convenient.
- B.Durable.
- C.Scarce.
- D.Accepted.
1 mark
10
This figure is well known mail-handling equipment used in the office. It is known as?
- A.Envelope
- B.A4 letter
- C.Stapler
- D.Scissor
1 mark
11
Misuse of punctuations can affect communication. Which part of it?
- A.Distractions
- B.Cultural
- C.Status
- D.Language
1 mark
12
To run an effective filing system, You should:
- A.Avoid saving unnecessary documents
- B.Keep all filing in closed cabinet
- C.Drink a lot of coffee when filing.
- D.Make sure all cables are hidden.
1 mark
13
The branch of economics that assesses the government revenue and expenditure is:
- A.Public issue
- B.Public debts
- C.Public Finance
- D.Public Policy
1 mark
14
The earliest business made by the people was barter trade. Which type of money was used?
- A.Bank money
- B.Paper money
- C.Metallic money
- D.Commodity money
1 mark
15
An international trade carried out between two countries is referred to as:
- A.Multilateral trade
- B.Retail Trade
- C.Wholesale Trade
- D.Bilateral trade
1 mark
16
Which of the following is NOT electronic marketing mix?
- A.E-product
- B.E-pricing
- C.E-promotion
- D.E-Packaging
1 mark
17
Which of the following is NOT a major function of a warehouse?
- A.Inventory Manufacturing
- B.Storage of goods
- C.Grading and branding
- D.Protection of Goods
1 mark
18
The electronic technology through which the seller and buyer meet to exchange products is called:
- A.Electronic business
- B.The electronic market
- C.E-commerce
- D.Digital marketing
1 mark
19
The other name of "Income Statement" is?
- A.Profit and loss statement
- B.Profit and Revenue Statement
- C.Cash flow statement
- D.Balance Sheet Statement
1 mark
20
When trade happens within the boundaries of a country, it is known as:
- A.Home trade
- B.International trade
- C.Import Trade
- D.Wholesale Trade
1 mark
21
A start-up wants to enter the market with limited budget. What promotional method is most affordable to this business?
- A.National T.V advertising
- B.Hiring a celebrity
- C.Social media marketing
- D.Roadside in rural area
1 mark
22
A customer switches brands after a negative experience. What does this indicate?
- A.Cultural influence
- B.Customer loyalty
- C.Post-purchase behavior
- D.Habitual buying
1 mark
23
When goods are sent through ships, which document is used?
- A.Airway bill
- B.Bill of landing
- C.Price list
- D.Debit note
1 mark
24
A trader is looking for a loan to invest in his/her business. Which type of bank provides this service?
- A.Central Bank
- B.Commercial bank
- C.Credit Union Bank
- D.Cooperative bank
1 mark
25
Most of the companies provide goods and services using a medium of exchange that can be measured in the market value. This medium is known as:
- A.Spend
- B.Income
- C.Insurance
- D.Currency
1 mark
26
In what stage of marketing is the customer free to communicate all around time?
- A.Social network marketing
- B.Department of marketing
- C.Marketing Company
- D.Marketing relationship
1 mark
27
The following are objectives of fiscal policy EXCEPT?
- A.Employment
- B.Adequate distribution of wealth
- C.Economic development
- D.Economic recession
1 mark
28
It is the latest currency which people make business transaction with. Which type of money is it?
- A.Bank money
- B.Plastic money
- C.Metallic money
- D.Commodity money
1 mark
29
What is Income?
- A.To pay out money
- B.To get money from work or sales
- C.To set money aside for future use or sales
- D.To divide and share out or apportion
1 mark
30
Which of the following is NOT suitable example of a fully digital Product?
- A.The Films
- B.Consultant Service
- C.The songs
- D.Fast Foods
1 mark
31
The successful entry strategy which means 'doing something new' is called:
- A.Market gap
- B.Product offer
- C.Being unique
- D.Innovation
1 mark

Calculate the net income of:

Consulting Company, Income statement, For the end of May 31 2025
Revenue: Service Revenue 5,500
Expenses: Salary Expenses 1200; Supply expenses 500; Depreciation Expenses 350; Miscellaneous Expenses 100
Total expenses 2150
Net Income ?

A.6650
B.9000
C.2350
D.4300

1 mark

33
Which type of control is concerned with treating errors after their occurrence?
- A.Preventive Control
- B.Concurrent Control
- C.Internal Control
- D.External Control
1 mark
34
What is the first stage of managing or Protecting against risk?
- A.Transferring the risk
- B.Accepting the risk
- C.Avoiding the risk
- D.Reducing the risk
1 mark
35
The simple form of businesses owned by an individual is known as:
- A.Corporation
- B.Partnership
- C.Cooperative
- D.Proprietorship
1 mark
36
Accounting time periods are generally a month, a quarter or year. The use of one year period in accounting is called?
- A.Internal year
- B.General period
- C.Fiscal year
- D.Fiscal policy
1 mark
37
A trader transports perishable goods over a long distance. Describe the mode of transport system convenient to his business?
- A.Air Transportation
- B.Road Transportation
- C.Maritime Transportation
- D.Rail Transportation
1 mark
38
Which types of warehouses owned by government are made available to private firms to store goods on payment of rent?
- A.Private warehouses
- B.Public warehouses
- C.Co-operative warehouses
- D.Value adding warehouses
1 mark
39
The international trade that takes place among many countries is known as:
- A.Multilateral trade
- B.Retail Trade
- C.Wholesale Trade
- D.Bilateral trade
1 mark
40
Identify the term for an individual that brings together the other economic resource necessary for production?
- A.The managerial elite
- B.An entrepreneur
- C.government Units
- D.the corporate Stakeholders
1 mark

SECTION 2: DIRECT QUESTIONS (60 POINTS)

ANSWER ALL QUESTIONS

41
Explain 2 characteristics of human wants?
4 marks
42
Demonstrate the importance of business studies in the society?
4 marks
43
Identify four typical users of accounting information?
4 marks

44a

Draw Equilibrium curve using the table below?

Price | Quantity Demand | Quantity Supplied
1 | 12 | 2
2 | 9 | 4
3 | 6 | 6
4 | 3 | 8

4 marks

44b
State four characteristics of good business idea?
4 marks
45
Highlight 4 Ps of marketing mix?
4 marks
46
Give Two differences between business idea and business opportunities?
4 marks

Journalize the following adjustments of Air & Sea Travel, Inc., at April 30.

I. Depreciation on furniture, $275.
II. Accrued income tax expense, $540.
III. Prepaid rent expired, $1.000.
IV. Supplies used $300.

4 marks

49
List four disadvantages of partitioned office.
4 marks
50
Give four example services, provided by commercial banks.
4 marks
51
Enumerate four factors affecting communication.
4 marks

Rearrange the steps for purchasing decisions illustrated bellow:

Evaluate alternative | Realizing the need | Decision evaluation | Search for information | Purchase decision

4 marks

53
Ahmed decided to take an insurance coverage for a car against theft From Tayo Insurance Ltd .It was valued at a So.sh 24000 and was required to make payment of So.sh 6000 per month. Categorize the terms of insurance below:
```
I. Ahmed
II. Theft
III. So.sh 6000
IV. Tayo Insurance Ltd
```
4 marks
54
Distinguish between Private and Public Organizations.
4 marks
55
Compare between strategic planning and tactical planning in terms of time.
4 marks

Paper set by the Federal Ministry of Education, Culture and Higher Education (MoECHE), Somalia. Shared free of charge to help students prepare. The answers and explanations are written by Sheerxirfad teachers.

All units of Form 4 Business

Take this paper

Instructions to candidates

A. CIRCLE THE CORRECT ANSWER (40 POINT)

SECTION 2: DIRECT QUESTIONS (60 POINTS)

We Accept