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Business Studies
Form 3 2026
TERM II
School


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WK LSN TOPIC SUB-TOPIC OBJECTIVES T/L ACTIVITIES T/L AIDS REFERENCE REMARKS
1 1
SIZE AND LOCATION OF A FIRM
Concept of firm and industry, factors determining size of firm
By the end of the lesson, the learner should be able to:

- Define firm and industry with comprehensive examples
-Distinguish between firm and industry using local examples
-Identify and explain factors determining firm size
-Analyze number of employees as size determinant
-Examine volume of output and area covered
-Evaluate capital investment and market size factors
-Assess level of technology impact on firm size
-Classify firms as small, medium or large using criteria
In groups, learners are guided to:

- Brainstorming on firm vs industry concepts
-Case studies on sugar companies (Mumias, Sony, Chemelil)
-Analysis of salt mining firms (Magadi Soda Company)
-Group work on transport industry examples
-Discussion on employee numbers in different firms
-Examination of output volumes and premises size
-Analysis of capital investment requirements
-Classification exercises using local business examples
Textbook, local business examples, charts, case studies
Trendy Business Studies Form 3 Pg 18-19
1 2
SIZE AND LOCATION OF A FIRM
Factors limiting firm size and production decisions
Government policies and location factors - comprehensive analysis
By the end of the lesson, the learner should be able to:

- Identify and explain factors limiting firm size
-Analyze market size impact on firm expansion
-Examine availability of factors of production
-Discuss nature of product/service limitations
-Evaluate owner's decision impact on firm size
-Explain entrepreneurial decisions on production
-Analyze factors influencing what to produce
-Examine demand, resources and skills requirements
-Discuss technology, returns and cost considerations
In groups, learners are guided to:

- Case studies on transport industry reforms 2004
-Discussion on medical care and hairdressing services
-Analysis of owner preferences for small-scale operations
-Group work on production decision factors
-Examination of market demand analysis
-Discussion on resource availability for production
-Analysis of skill requirements for different businesses
-Case studies on technology choice decisions
Textbook, transport industry examples, service business cases, charts
Textbook, government policy examples, Figure 2.1, infrastructure maps
Trendy Business Studies Form 3 Pg 19-20
1 3
SIZE AND LOCATION OF A FIRM
Transport networks, security and localization concepts
Advantages and disadvantages of localization
Delocalisation policy and implementation
By the end of the lesson, the learner should be able to:

- Evaluate transport network importance for firm location
-Analyze road, railway, seaport and airport requirements
-Examine government physical planning policies
-Assess security services availability impact
-Discuss room for expansion considerations
-Analyze favorable climatic conditions for agro-businesses
-Define localization and territorial division of labor
-Explain firm concentration in favorable areas
-Identify advantages of localization for businesses
In groups, learners are guided to:

- Analysis of transport infrastructure requirements
-Discussion on roads, railways and ports accessibility
-Case studies on government physical planning
-Examination of security considerations for businesses
-Group work on expansion space requirements
-Analysis of floriculture and dairy farming locations
-Discussion on localization concept and examples
-Case studies on industrial area concentrations
-Analysis of specialized area development
Textbook, transport maps, security examples, agricultural cases
Textbook, employment data, environmental examples, urban planning cases
Textbook, government policy documents, rural development cases
Trendy Business Studies Form 3 Pg 22-23
1 4
SIZE AND LOCATION OF A FIRM
Advantages and disadvantages of delocalisation
Economies of scale - internal economies comprehensive analysis
By the end of the lesson, the learner should be able to:

- Analyze balanced economic development benefits
-Examine raw materials market creation
-Discuss employment creation in many parts
-Evaluate service delivery to rural areas
-Assess urbanization acceleration benefits
-Analyze social problems reduction
-Examine difficulty in attracting required personnel
-Discuss challenges in accessing essential services
-Evaluate pollution and social evils spread
-Assess tax burden on government and taxpayers
In groups, learners are guided to:

- Discussion on balanced economic development
-Analysis of local raw materials market creation
-Case studies on rural employment creation
-Group work on rural service delivery improvement
-Examination of rural urbanization acceleration
-Discussion on reduced social problems
-Analysis of personnel attraction difficulties
-Case studies on essential services access
-Examination of pollution spread to rural areas
-Discussion on government incentive costs
Textbook, rural development examples, cost-benefit analysis
Textbook, business examples, machinery illustrations, financial cases
Trendy Business Studies Form 3 Pg 25
2

Opener Exam

3 1
SIZE AND LOCATION OF A FIRM
External economies and specialization benefits
Diseconomies of scale - internal and external
Existence of small firms and their advantages
By the end of the lesson, the learner should be able to:

- Define external economies and their sources
-Analyze easier access to skilled labor pools
-Examine efficient infrastructure benefits
-Discuss auxiliary services availability
-Evaluate easy access to raw materials
-Analyze mutual consultations and collaborations
-Examine decentralization and disintegration economies
-Distinguish horizontal and vertical decentralization
-Discuss textile industry and jua kali examples
-Analyze publishing industry specialization
In groups, learners are guided to:

- Discussion on external economies concept
-Analysis of labor pool availability
-Case studies on infrastructure sharing
-Examination of banking and insurance services
-Group work on raw materials access
-Discussion on industry collaboration benefits
-Analysis of horizontal decentralization examples
-Case studies on vertical decentralization
-Examination of textile industry specialization
-Discussion on publishing industry processes
Textbook, industry examples, infrastructure maps, specialization cases
Textbook, Figure 2.2, cost analysis examples, industry cases
Textbook, small business examples, market analysis, comparison charts
Trendy Business Studies Form 3 Pg 27-28
3 2
SIZE AND LOCATION OF A FIRM
Environmental impact and health implications
Maintaining healthy environment and business responsibility
By the end of the lesson, the learner should be able to:

- Identify production activities' environmental effects
-Analyze environmental degradation from farming
-Examine desertification from deforestation
-Discuss air pollution from industrial activities
-Analyze water pollution from factory chemicals
-Examine solid waste pollution problems
-Evaluate community health endangerment
-Discuss disease vector habitat creation
-Analyze respiratory diseases from air pollution
-Examine aquatic life extermination effects
In groups, learners are guided to:

- Discussion on environmental degradation causes
-Analysis of soil fertility reduction
-Case studies on deforestation effects
-Examination of mining dust and factory gases
-Group work on water pollution sources
-Discussion on chemical drainage effects
-Analysis of garbage disposal problems
-Case studies on community health effects
-Examination of disease vector habitats
-Discussion on long-term environmental damage
Textbook, environmental examples, health data, pollution cases
Textbook, environmental conservation examples, law documents
Trendy Business Studies Form 3 Pg 30-31
3 3
SIZE AND LOCATION OF A FIRM
PRODUCT MARKETS
Pertinent issues - workers' rights and child labor
Environmental degradation, localization effects and practical applications
Learning activities - market identification
By the end of the lesson, the learner should be able to:

- Analyze workers' rights and human rights issues
-Examine exploitative labor practices
-Discuss meager wages and salary problems
-Evaluate employee morale and productivity effects
-Analyze industrial disturbances and strikes
-Examine fair treatment and welfare policies
-Discuss conducive work environment creation
-Evaluate women's workplace protection
-Analyze child labor exploitation problems
-Examine Children's Act and legal compliance
In groups, learners are guided to:

- Discussion on workers' rights violations
-Analysis of exploitative wage practices
-Case studies on industrial strikes
-Group work on employee welfare policies
-Examination of work environment improvement
-Discussion on women's workplace rights
-Analysis of child labor prohibition
-Case studies on Children's Act compliance
-Examination of education opportunity denial
-Discussion on ethical labor practices
Textbook, labor law documents, case studies, Children's Act
Textbook, environmental cases, urban planning examples, assessment materials
Market visit guides, observation sheets
Trendy Business Studies Form 3 Pg 31-32
3 4
PRODUCT MARKETS
CHAIN OF DISTRIBUTION
Learning activities - trader interviews
Meaning of distribution and process
By the end of the lesson, the learner should be able to:

- Interview local traders
-Determine trader market types
-Analyze business operations
-Examine pricing strategies
-Assess customer relations
In groups, learners are guided to:

- Trader interview activities
-Data collection exercises
-Analysis of business practices
-Group work on findings
-Examination of market behavior
Interview guides, data collection sheets
Textbook, distribution examples, packaging materials
Trendy Business Studies Form 3 Pg 50
4 1
CHAIN OF DISTRIBUTION
Classification of intermediaries - merchant vs agent traders
Merchant traders - export/import merchants and stockist distributors
Agent traders - commission agents, factors and auctioneers
By the end of the lesson, the learner should be able to:

- Classify intermediaries based on ownership
-Define merchant traders and their characteristics
-Analyze merchant traders' risk assumption
-Define agent traders and principal relationships
-Distinguish between merchant and agent traders
-Examine ownership and possession concepts
In groups, learners are guided to:

- Discussion on intermediary classification
-Analysis of merchant trader characteristics
-Case studies on risk assumption
-Group work on agent-principal relationships
-Comparison exercises between types
-Practical examples of both trader types
Textbook, trader examples, classification charts
Textbook, import/export examples, stockist cases
Textbook, Figure 4.1, agent examples
Trendy Business Studies Form 3 Pg 42-43
4 2
CHAIN OF DISTRIBUTION
Non-trading agents - brokers, clearing agents and warehouse keepers
Role of intermediaries and channels of distribution
By the end of the lesson, the learner should be able to:

- Define brokers and their connecting functions
-Analyze export and import broker operations
-Examine clearing and forwarding agents
-Discuss warehouse keepers and storage services
-Analyze brokerage and demurrage fees
-Evaluate lien rights of agents
In groups, learners are guided to:

- Discussion on broker functions
-Analysis of clearing agent services
-Case studies on warehousing operations
-Group work on fee structures
-Examination of lien rights
-Practical examples of non-trading agents
Textbook, broker examples, warehouse cases
Textbook, Figure 4.2, chain examples
Trendy Business Studies Form 3 Pg 44-45
4 3
CHAIN OF DISTRIBUTION
Channel levels - zero, one, two and three level channels
Four-level channels and product distribution patterns
Choosing distribution channels - cost, availability and business factors
By the end of the lesson, the learner should be able to:

- Define channel levels and intermediary numbers
-Analyze zero-level direct marketing
-Examine one-level channels and Bata example
-Discuss two-level consumer goods channels
-Analyze three-level intermediary chains
-Evaluate channel level selection factors
In groups, learners are guided to:

- Discussion on channel level concepts
-Analysis of Figures 4.3, 4.4, 4.5, 4.6
-Case studies on Bata Shoe Company
-Group work on level comparisons
-Examination of consumer goods distribution
-Practical examples of all channel levels
Textbook, Figures 4.3-4.6, Bata examples
Textbook, Figures 4.7-4.9, product examples
Textbook, channel selection examples
Trendy Business Studies Form 3 Pg 46-47
4 4
CHAIN OF DISTRIBUTION
Product nature and market development factors
Financial strength, reputation and competitive factors
By the end of the lesson, the learner should be able to:

- Analyze product nature impact on channels
-Examine high unit value products
-Discuss perishable goods distribution
-Analyze standardization effects
-Examine market development stages
-Evaluate new vs established product channels
In groups, learners are guided to:

- Discussion on product characteristics
-Analysis of value and perishability
-Case studies on standardization
-Group work on market development
-Examination of product lifecycle
-Practical examples of product-channel matching
Textbook, product examples, market cases
Textbook, financial examples, competitive cases
Trendy Business Studies Form 3 Pg 49-50
5 1
CHAIN OF DISTRIBUTION
Choice of specific intermediary within channels
Pertinent issues - HIV/AIDS prevalence and fatigue problems
Child labor and environmental degradation issues
By the end of the lesson, the learner should be able to:

- Analyze extent of coverage requirements
-Examine continuity guarantee importance
-Discuss intermediary reputation factors
-Evaluate other products handled
-Analyze effectiveness and reliability
-Examine credibility and trading standards
In groups, learners are guided to:

- Discussion on intermediary selection
-Analysis of coverage requirements
-Case studies on reputation factors
-Group work on effectiveness measures
-Examination of reliability factors
-Practical examples of selection criteria
Textbook, intermediary examples, selection cases
Textbook, health examples, safety cases
Textbook, child labor examples, environmental cases
Trendy Business Studies Form 3 Pg 51
5 2
CHAIN OF DISTRIBUTION
Bribery, corruption and ethical business practices
Learning activities, research and assessment
By the end of the lesson, the learner should be able to:

- Analyze bribery in distribution operations
-Examine traffic police corruption
-Discuss overloading and rule adherence
-Evaluate ethical business practices
-Analyze public interest considerations
-Examine fair play in distribution business
In groups, learners are guided to:

- Discussion on corruption problems
-Analysis of bribery effects
-Case studies on rule adherence
-Group work on ethical practices
-Examination of public interest
-Practical examples of fair business
Textbook, corruption examples, ethical cases
Research guides, interview forms, debate materials, assessment tools
Trendy Business Studies Form 3 Pg 52
5 3
NATIONAL INCOME
Meaning of national income and basic concepts
GDP, NDP and GNP definitions
NNP, NNI and per capita income
By the end of the lesson, the learner should be able to:

- Define national income from nation and income components
-Analyze money value of goods and services produced
-Examine Figure 5.1 sources of income
-Define GDP, NDP, GNP, NNP concepts
-Distinguish between gross and net products
-Analyze American economist's definition
In groups, learners are guided to:

- Discussion on national income meaning
-Analysis of Figure 5.1 income sources
-Case studies on money value measurement
-Group work on concept definitions
-Examination of gross vs net differences
-Practical examples of national income
Textbook, Figure 5.1, income examples
Textbook, production examples, calculation sheets
Textbook, calculators, formula sheets
Trendy Business Studies Form 3 Pg 54-55
5 4
NATIONAL INCOME
Circular flow of income - two-sector economy
Four-sector closed economy circular flow
Open economy and injections/withdrawals
By the end of the lesson, the learner should be able to:

- Explain circular flow basic principles
-Analyze Figure 5.2 two-sector model
-Examine household and firm interactions
-Discuss factor payments and goods exchange
-Analyze outer and inner loop flows
-Examine assumptions of two-sector model
In groups, learners are guided to:

- Discussion on circular flow principles
-Analysis of Figure 5.2 detailed examination
-Case studies on household-firm exchanges
-Group work on flow directions
-Examination of model assumptions
-Practical examples of circular flow
Textbook, Figure 5.2, flow diagrams
Textbook, Figure 5.3, sector examples
Textbook, Figure 5.4, equilibrium examples
Trendy Business Studies Form 3 Pg 56-57
6 1
NATIONAL INCOME
Methods of measuring national income - income approach
Problems of income approach and output approach
By the end of the lesson, the learner should be able to:

- Analyze three approaches to measurement
-Examine income approach comprehensively
-Discuss factors of production incomes
-Analyze wages, rent, interest, and profit
-Examine transfer payments exclusion
-Evaluate foreign income considerations
In groups, learners are guided to:

- Discussion on measurement approaches
-Analysis of income approach details
-Case studies on factor incomes
-Group work on transfer payment exclusion
-Examination of foreign income issues
-Practical examples of income calculation
Textbook, income examples, calculation sheets
Textbook, Example 5.1, calculation sheets
Trendy Business Studies Form 3 Pg 59-60
6 2
NATIONAL INCOME
Output approach problems and expenditure approach
Problems in measuring national income
Additional measurement problems
By the end of the lesson, the learner should be able to:

- Analyze output approach problems
-Examine double counting and subsistence issues
-Discuss depreciation estimation difficulties
-Define expenditure approach methodology
-Analyze GNE formula C+I+G+X-M
-Examine market price vs factor cost
In groups, learners are guided to:

- Discussion on output approach problems
-Analysis of estimation difficulties
-Case studies on depreciation calculation
-Group work on expenditure components
-Examination of GNE formula application
-Practical examples of expenditure calculation
Textbook, expenditure examples, formula sheets
Textbook, Figure 5.5, measurement examples
Textbook, Figure 5.6, valuation examples
Trendy Business Studies Form 3 Pg 62-63
6 3
NATIONAL INCOME
Per capita income and economic welfare
International comparison problems
By the end of the lesson, the learner should be able to:

- Define economic welfare concept
-Analyze per capita income as welfare measure
-Examine limitations of per capita income
-Discuss statistical problems
-Analyze money value change effects
-Evaluate international comparison difficulties
In groups, learners are guided to:

- Discussion on economic welfare
-Analysis of per capita limitations
-Case studies on statistical problems
-Group work on comparison difficulties
-Examination of welfare measurement
-Practical examples of welfare indicators
Textbook, welfare examples, comparison charts
Textbook, international examples, comparison cases
Trendy Business Studies Form 3 Pg 65-66
6 4
NATIONAL INCOME
POPULATION AND EMPLOYMENT
Uses of national income statistics
Factors influencing national income level
Introduction to population and sources of data
By the end of the lesson, the learner should be able to:

- Analyze economic growth measurement
-Examine planning purposes applications
-Discuss Table 5.1 Kenya statistics
-Evaluate standard of living measurement
-Analyze investment decision basis
-Examine intercountry comparisons
In groups, learners are guided to:

- Discussion on statistics applications
-Analysis of Table 5.1 Kenya data
-Case studies on planning uses
-Group work on investment decisions
-Examination of growth measurement
-Practical examples of statistics use
Textbook, Table 5.1, statistics examples
Textbook, factor examples, level cases
Textbook, census examples, demographic data
Trendy Business Studies Form 3 Pg 68-69
7 1
POPULATION AND EMPLOYMENT
Sample surveys and registration methods
Basic population concepts - fertility and birth rates
By the end of the lesson, the learner should be able to:

- Analyze sample surveys as population data source
-Examine Kenya National Bureau of Statistics role
-Discuss sample survey advantages
-Analyze registration of births and deaths
-Examine certificate issuance process
-Evaluate fertility, mortality, migration components
In groups, learners are guided to:

- Discussion on sample survey benefits
-Analysis of KNBS functions
-Case studies on birth/death registration
-Group work on survey advantages
-Examination of migration effects
-Practical examples of registration systems
Textbook, survey examples, registration cases
Textbook, Example 6.1, calculators, formula sheets
Trendy Business Studies Form 3 Pg 72-73
7 2
POPULATION AND EMPLOYMENT
Mortality rates and migration concepts
Population growth rates and African comparisons
Overpopulation - definition and advantages
By the end of the lesson, the learner should be able to:

- Define mortality and death rate concepts
-Analyze Figure 6.1 improved healthcare
-Examine crude death rate formula
-Calculate Example 6.2 Uganda death rate
-Define infant mortality rate
-Analyze migration, immigration, and emigration
In groups, learners are guided to:

- Discussion on mortality concepts
-Analysis of Figure 6.1 healthcare improvements
-Case studies on Example 6.2 calculations
-Group work on migration patterns
-Examination of infant mortality
-Practical mortality rate calculations
Textbook, Figure 6.1, Example 6.2, calculators
Textbook, Table 6.1, calculators, comparison charts
Textbook, overpopulation examples, advantage cases
Trendy Business Studies Form 3 Pg 74-75
7 3
POPULATION AND EMPLOYMENT
Disadvantages of overpopulation
Under-population and declining population
By the end of the lesson, the learner should be able to:

- Analyze rural-urban migration effects
-Examine poor living standards
-Discuss food shortages and famines
-Evaluate inflationary tendencies
-Analyze increased dependency burden
-Examine strain on social amenities
In groups, learners are guided to:

- Discussion on migration problems
-Analysis of living standard deterioration
-Case studies on food shortages
-Group work on inflation effects
-Examination of dependency issues
-Practical examples of social strain
Textbook, migration examples, shortage cases
Textbook, under-population examples, decline cases
Trendy Business Studies Form 3 Pg 77-78
7 4
POPULATION AND EMPLOYMENT
Optimum population and dependency concepts
Ageing and young populations
Population structure and Kenya's demographics
By the end of the lesson, the learner should be able to:

- Define optimum population concept
-Analyze Figure 6.3 population curves
-Examine equilibrium between population and resources
-Define dependency ratio/burden
-Analyze dependency ratio measurement
-Examine high dependency effects on development
In groups, learners are guided to:

- Discussion on optimum population
-Analysis of Figure 6.3 comprehensive study
-Case studies on resource equilibrium
-Group work on dependency calculations
-Examination of development effects
-Practical examples of dependency burden
Textbook, Figure 6.3, dependency examples
Textbook, ageing examples, youth cases
Textbook, Tables 6.2 and 6.3, demographic data
Trendy Business Studies Form 3 Pg 79-80
8 1
POPULATION AND EMPLOYMENT
Population pyramids and international comparisons
Economic growth vs development and population effects
By the end of the lesson, the learner should be able to:

- Analyze Figures 6.4 and 6.5 population pyramids
-Compare developing vs developed country structures
-Examine bloated bottom vs middle characteristics
-Discuss workforce distribution patterns
-Analyze ageing population indicators
-Evaluate structural implications for development
In groups, learners are guided to:

- Discussion on population pyramids
-Analysis of Figures 6.4 and 6.5 comparison
-Case studies on country differences
-Group work on pyramid interpretation
-Examination of workforce implications
-Practical examples of structural analysis
Textbook, Figures 6.4 and 6.5, pyramid examples
Textbook, formula sheets, development examples
Trendy Business Studies Form 3 Pg 83-84
8 2
POPULATION AND EMPLOYMENT
Population effects on technology, land, and labor
Population control methods and employment concepts
Unemployment types and causes
By the end of the lesson, the learner should be able to:

- Analyze unemployment from high population
-Examine technology dependency effects
-Discuss land fragmentation problems
-Analyze labor force quality issues
-Examine social problems from overcrowding
-Evaluate Figure 6.6 vicious cycle
In groups, learners are guided to:

- Discussion on unemployment causes
-Analysis of technology challenges
-Case studies on land fragmentation
-Group work on labor quality
-Examination of Figure 6.6 cycle
-Practical examples of population pressure
Textbook, Figure 6.6, land examples
Textbook, control examples, employment cases
Textbook, Figure 6.7, unemployment examples
Trendy Business Studies Form 3 Pg 85-86
8 3
POPULATION AND EMPLOYMENT
Technological and other unemployment types
Solving unemployment and pertinent issues
By the end of the lesson, the learner should be able to:

- Analyze technological unemployment
-Examine ATM effects on bank employment
-Discuss frictional unemployment
-Analyze residual and casual unemployment
-Examine unemployment causes in Kenya
-Evaluate high production costs
In groups, learners are guided to:

- Discussion on technological changes
-Analysis of ATM impact examples
-Case studies on Kenyan unemployment
-Group work on production costs
-Examination of casual employment
-Practical examples of technology effects
Textbook, technology examples, cost cases
Textbook, Figure 6.9, solution examples
Trendy Business Studies Form 3 Pg 88-89
8 4
POPULATION AND EMPLOYMENT
Pertinent issues - data honesty, HIV/AIDS, and poverty
Learning activities, review and assessment
By the end of the lesson, the learner should be able to:

- Analyze cooperation in census data collection
-Examine population growth control needs
-Discuss literacy and gender education issues
-Evaluate HIV/AIDS pandemic effects
-Analyze Figure 6.10 eradication campaigns
-Examine poverty and entrepreneurship needs
In groups, learners are guided to:

- Discussion on data collection challenges
-Analysis of Figure 6.10 campaign importance
-Case studies on literacy issues
-Group work on poverty eradication
-Examination of entrepreneurship needs
-Practical examples of pertinent issues
Textbook, Figure 6.10, poverty examples
Research guides, interview forms, assessment materials
Trendy Business Studies Form 3 Pg 90-91
9-10

Mid term break and exam

12-14

End term exam


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