- Outline four measures which can be put in place by manufacturers to enhance consumer protection(4 marks)
- Give four ways by which the government can influence price of a commodity (4 marks)
- Mention four circumstances under which a firm would be located near the market for its products (4 marks)
- Give four reasons why most developing countries still rely on extractive level of production (4 marks)
- Identify four benefits of a business that uses e-mail in communication(4 marks)
- Outline four factors that influence entrepreneurial practices in Kenya (4 marks)
- Highlight four circumstances under which producers may prefer to sell their produce directly to the consumers (4 marks)
- A consumer organization in your area has invited you to educate its members on various forms of consumer exploitation.Identify four areas which will form part of your highlights (4 marks)
- Outline four circumstances under which a sole proprietorship may be dissolved (4 marks)
- Give four reasons why warehousing is important to consumers (4 marks)
- State the books of original entries in which the following source documents are used (4 marks)
Outgoing Credit Note
- Identify four reasons why a country should practice location of industries in one designated area (4 marks)
- State four roles played by the middlemen in the chain of distribution (4 marks)
- Mention four ways used by an organization to protect its properties and control (4 marks)
- State four services offered by advertising agencies (4 marks)
- Kenya needs to encourage rail transport. Highlight four reasons in support of the statement (4 marks)
- Highlight four services rendered by producer cooperative societies to their members (4 marks)
- Fill in the bank spaces marked a, b, and c in the table below (3 marks)
Business Capital Assets Liabilities P
- State four reasons for government participation in business activities (4 marks)
- Kenya has continued to experience persistent increase in the prices of various goods and services. Mention four negative effects of this trend (4 marks)
- State four considerations when locating an office (4 marks)
- Identify four effects of declining population in a country (4 marks)
- Suggest four reasons why electric trains are not common in Africa (4 marks)
- Outline four shortcomings of direct production (4 marks)
- The information given below was extracted from the books of Kigai Traders on 31st November 2020.
Purchases - 260, 000
Opening stock - 75,000
Carriage on purchases - 12, 500
Closing Stock - 27,500
Goods were sold at a margin of 25%.
Using the information provided above, prepare Kigali's trading account for the period ended 315 November 2020. (5 marks)
- Ways in which manufacturers enhance consumer protection
- Indicating expiry dates on products
- Indicating the recommended retail prices
- Indicating any side effects of the product
- Ensuring that the agents are ethical
- Avoiding misleading advertisements
- Giving guarantee to customers on durable electrical appliances which may fail to function.
- Ways in which wemment iniluence price of a commodity
- Taxation may increase the price
- Subsides may reduce the price.
- Legislation may increase / decrease the price
- Price control price ceiling
- Price decontrol price liberalization
- Circumstances under which a firm would be located near the market for its products.
- When the products are perishable thus require fast delivery
- When the products are bulky / heavier than the raw materials
- When the products are fragile to avoid loses through breakage
- When its cheaper to transport raw materials than the final product
- When the raw materials are in the same location as the market for the product
- When it is the government policy that firms locate near their markets
- When the unit value of the products is high/ may pose security threat during transportation
- Reasons why most Developing Countries still rely on extractive level of production.
- Storage of capital
- Lack of skilled manpower
- Lack of modern technology
- Heavy reliance in subsistence production
- Good climate hence engage in Agricultural production.
- Natural resources available hence engage in primary production.
- Benefits of a business that uses e-mail.
- It is fast in sending and receiving information
- It is relatively cheap
- It makes it possible to communicate with persons far away in other continents.
- Information obtained can be kept as hard as soft copy for future reference.
- Factors that influence entrepreneurship
- Presence of credit facilities
- Information available about markets
- Government policy of business ownership
- level of taxation.
- legal controls
- Political stability
- Security available
- Level of technology
- Circumstances under which producers may prefer to sell their produce directly to the consumers
- Where the produce is perishable
- Where the producer has his own retail outlet.
- Where the producer is producing goods as per the customers specification.
- Where true producer requires immediate feedback from consumers.
- Where the level of competition in the market is very high.
- Where the level of production is very low
- Where the consumers prefer buying directly from the producers.
- Where the producer does not want to share the profits with middlemen.
- Where that is a govemment policy.
- Better use of available resources.
- Forms of consumer exploitation.
- Very high prices for products
- Inferior quality good
- Misleading information about a product misleading advertisements.
- Harmful products
- Hoarding of products
- Breach of contracts
- A sole proprietor business may be dissolved.
- If the owner decides to transfer the business to another person.
- If a court of law orders that the business be dissolved.
- Where the continued existence of the business is in breach of the law.
- Where time objective for the establishment of the business has been achieved.
- If the owner of the business is declared bankrupt
- If the owner of the business dies.
- If the owner decides to close down the business.
- If the owner becomes incapacitated or insane.
- If the business makes continuous heavy losses.
- Benefits of warehousing to consumers
- Regular/steady supply of goods at all times
- Wide variety of goods for the consumers to choose from
- Stable prices by releasing adequate volumes of goods to the market to meet consumer demand.
- Preparation of goods for sale through blending, packaging, breaking the bulk, branding
- Providing goods at convenient locations to the benefit of consumers throughout the market
- Protection of goods against damage / loss of utility / usefulness
- Protection of goods by government officials to ensure they are fit for human consumption.
- Keeping of strategic reserves buffer stocks to be used in the event of emergencies
- State the books of original entries in which the following source documents are used
- Incoming Invoice - Purchases Journal
- Incoming Receipt - Cash payment journal
- Outgoing Credit Note - Returns journal
- Outgoing Invoice - Sales journal
- Benefits of localization
- Common pool of labour
- Improved infrastructure
- Attract large population/market
- Proper disposal of waste
- Development of subsidiary industries
- Creation of employment
- Development of social amenities
- Roles played by intermediaries
- Reducing transactions: Lower the numbers of interactions between the producers and the final consumers
- Breaking bulk: Package the goods in small volumes as desired by the customers
- Accumulating bulk : Buy small volumes of goods from small scale producers and then sell the gathered large quantities to the large scale cusforces e.g. maize
- Provide variety of goods; Stock a wide variety of goods from varieties producers for the consumers to choose from
- Storage: Keep goods in safe conditions until demand arises leading to fairly stable prices
- Transport: Have goods to locations that are convenient to the customers
- Feedback; Pass the information gathered from consumers to the producers
- Risk - taking
- Ways to be used by an organization to protect its properties and control.
- Entrancing security against theft.
- Ensuring physical care by people using the property.
- Keeping records of movement and usage of each of the property.
- Taking insurance cover.
- Proper repair servicing and maintenance.
- Services oflere by advertising agencies.
- Help organizations in designing their trade marks,
- Logos and advertising materials
- Book space and air time for their clients in varies media.
- Offer advertising services to their clients on selling techniques.
- Advertise on behalf of their clients the appropriate media to be
- Reasons why Kenya needs to encourage rail transport.
- It is cheap to maintain after construction
- it is labour saving Saves labour expenses) as it is capital intensive.
- Large volume of the product is delivered quickly.
- Can deliver the product for 24 hours( 24 hr operation)
- Is environmental friendly as pipes are laid underground,
- Reduces accidents on our roads by tankers.
- Reduces congestion on our roads by tankers
- Reduces road damage by tankers
- Pipes can be laid even in areas of poor topography.
- Perishable goods will go bad.
- Services rendered by producer cooperative societies to their members.
- Sell firm inputs at fair prices / on credit.
- Give loans at low interest rate.
- Give advice on proper farming methods.
- Carryout research and pass findings to farmers.
- Look for market for their members produce.
- Facilitate payment for farmers.
- Offer transport facilities for their members produce to the factory.
- They process, blend and pack members produce.
- Store members produce awaiting sale.
- Fill in the bank spaces marked a, b, and c in the table below
Business Capital Assets Liabilities P
- Reasons for government participation in business activities
- To generate income
- To attract foreign investment
- To create confidence in the economy
- To venture in business where private sector is not willing to invest due to low profit margins
- To provide essential goals and services
- To invest in areas of national interest
- Negative consequences of inflation
- Reduction in profits
- Wastage of time
- Contlicts between employers and employees
- Decline in standards of living
- Loss to creditors
- Retardation of economic growth
- Adverse effects on balance of payment
- Loss of confidence in monetary system
- Discourages savings
- Considerations when choosing a location of an office.
- Space - Should be enough for future expansion.
- Access- Easy to be reached by worker's and clients
- Security- For visitors, workers and equipment/property.
- Support services. Should be available e.g Transport, Insurance, communication etc.
- Public image. Whether location is prestigious or not. Good location depicts a successful firm
- Physical surrounding
- Running costs.
- Positive effects of declining population
- Reduced government expenditure
- Enabling a country to attain optimum population.
- Reduce pressure on land and other resources
- Reduce dependency of unemployed on the employed.
- Reasons why electric trains are not common in Africa
- Inadequacy of capital/poverty
- Shortage of power electricity
- Mismanagement of railway transport
- Absence of visionary leadership - not given priority to development of rail transport.
- Limitation of direct production.
- Possible in limited sectors e.g. agriculture
- Poor quality products
- No income generation
- Limited employment opportunities
- Quantity supplied is low
- KIGALI Traders
for the year ended 31 nov 2020
Opening stock 75,000
+ purchases 260,000
+ carriage on purchases 12,500
Cost of goods available for sale 347,500
- closing stock 27,500
Cost of sales 320,000
Gross profit c/d 80,000
Gross profit b/d 80,000
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