Government and Business

15 Grade 9 Pre-Technical Studies questions on Government and Business, with worked marking schemes. 15 questions are available on this topic in full.

1. Question 1

   1 mark

   Which of the following is an example of the government creating a favourable environment for businesses to grow?

   A. Maintaining peace and security in trading centres

   B. Increasing taxes every month

   C. Closing all markets

   D. Confiscating traders' stock

   (1 mark)

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2. Question 2

   1 mark

   A business is required to register with the Registrar of Companies before operating as a limited company. The purpose of this registration is to

   A. exempt the business from all taxes

   B. provide the business with customers

   C. give the business legal recognition and protect the public

   D. supply the business with raw materials

   (1 mark)

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3. Question 3

   3 marks

   Analyse how high taxation by the government could negatively affect small businesses.

   (3 marks)

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4. Question 4

   3 marks

   State three ways in which the government supports the growth of businesses in Kenya.

   (3 marks)

   Marking scheme

   Any three (1 mark each): provides infrastructure (roads, electricity, water, communication); offers financial support/affordable loans (e.g. Youth/Women Enterprise Funds); provides training and business advice; maintains peace and security; creates favourable laws/policies and reduces bureaucracy; provides markets by buying goods/services; protects local industries.

5. Question 5

   1 mark

   A trader must obtain a single business permit from the county government before opening a shop. The MAIN reason the government requires this permit is to

   A. provide the trader with goods to sell

   B. choose the trader's suppliers

   C. regulate and keep records of businesses operating in the area

   D. pay the trader a salary

   (1 mark)

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6. Question 6

   1 mark

   The government sets and enforces laws against selling expired food. This role is BEST described as

   A. protecting consumers/regulating business conduct

   B. financing businesses

   C. distributing goods

   D. exporting products

   (1 mark)

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7. Question 7

   1 mark

   A young entrepreneur obtains a low-interest loan from a government fund such as the Youth Enterprise Development Fund. This is an example of the government

   A. taking over the business

   B. taxing the business heavily

   C. banning the business

   D. providing financial support to businesses

   (1 mark)

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8. Question 8

   3 marks

   Explain three reasons why the government regulates businesses.

   (3 marks)

   Marking scheme

   Any three (1 mark each): to protect consumers from poor-quality/harmful goods; to ensure fair competition and prevent exploitation; to collect revenue/tax; to protect the environment; to ensure safety and health standards; to keep records/plan the economy; to prevent illegal trade.

9. Question 9

   1 mark

   One MAIN way the government supports businesses in Kenya is by

   A. buying all goods that businesses produce

   B. providing infrastructure such as roads, electricity and water

   C. setting the prices of all products

   D. running every business in the country

   (1 mark)

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10. Question 10

    4 marks

    A group of youths wishes to start a carpentry business.

    (a) Name two government requirements they must meet before starting.

    (b) State two forms of support they could seek from the government.

    (4 marks)

    Marking scheme

    (a) Two requirements (1 each): obtain a business permit/licence from the county government; register the business name/entity; obtain a PIN/comply with tax registration; meet health and safety standards. (b) Two forms of support (1 each): affordable loans from a youth fund; entrepreneurship training; provision of infrastructure; market access; business advisory services.

11. Question 11

    1 mark

    A new small business owner is told they must register the business and obtain a single business permit from the county government. The MAIN reason the government requires this is to:

    A. Regulate businesses and ensure they operate legally

    B. Make the business fail

    C. Take ownership of the business

    D. Stop the business from making profit

    (1 mark)

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12. Question 12

    4 marks

    Describe how the payment of taxes by businesses benefits both the government and the businesses themselves.

    (4 marks)

    Marking scheme

    Benefits to government (up to 2): provides revenue to run the country; funds public services and development. Benefits to businesses (up to 2): taxes fund infrastructure (roads, power) that businesses use; fund security and services that support trade; compliant businesses avoid penalties and gain legal standing/good reputation. (2 marks each side.)

13. Question 13

    1 mark

    A small business owner notices that the government has built a tarmac road and provided electricity to the trading centre. Which role of government in business does this illustrate?

    A. Setting selling prices for every shop

    B. Providing infrastructure that supports business activities

    C. Owning all the shops in the centre

    D. Banning trade in the area

    (1 mark)

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14. Question 14

    1 mark

    The Kenya Bureau of Standards (KEBS) protects consumers by

    A. printing money for businesses

    B. setting and enforcing quality standards for goods

    C. distributing goods to retailers

    D. fixing the wages of all workers

    (1 mark)

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15. Question 15

    1 mark

    When the government collects tax such as VAT from businesses, the money is MAINLY used to

    A. pay the owners of private businesses

    B. reduce the profits of traders

    C. provide public services and develop the country

    D. buy shares in foreign companies

    (1 mark)

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