QUICK QUESTIONS WITH ANSWERS FOR REFERENCE

Advantages of containerization include:   (4mks) Reduces incidences of pilferage and damage of goods since handling of goods is limited Loading and off-loading of goods is highly mechanized hence containerized goods are handled quickly thus saving time Containers carry big quantities of goods than if goods are stored on the floor of the ship thus saving space Because of the enhance security of the goods the insurance premiums are low Packing cost are minimized since goods are packed at the factory usually using conveyor belts. Special containers can be made to facilitate carriage of special goods -- Virus-free. www.avast.com

Benefits of matatu reforms   Less congestions Reductions in accidents Adequate insurance Passengers confidence and safety More revenue to the government Order in the terminals as illegal touts evacuated Less pollutions -- Virus-free. www.avast.com

Duties of commercial attachees.  (4mks)    Identifying markets for their countries products.                     Evaluating the performance of their country's products Advising traders on standards and legal requirements of products in foreign countries. Developing trade agreements between their countries and foreign countries. Organizing trade fairs and exhibitions for their country's products in foreign countries. -- Virus-free. www.avast.com

Characteristics of chain stores include:    (4mks) Made up several shops located in different places but all owned by one management Branches are coordinated from a head office The branches have similar outlooks The branches sell similar goods Their prices are standardized in all branches Buying of stock is done collectively for all branches The promotional activities are collectively done for all branches -- Virus-free. www.avast.com

Methods used by central bank to increase money supply Reducing bank rates Reducing liquidity ratio Buying government securities Reductions on compulsory deposits Opening credit to all sectors in the economy Directives to increase credit lending Moral persuasions to banks to increase credit lending -- Virus-free. www.avast.com

Advantages of a bonded warehouse to the importer.   (4mks) Helps importer to prepare goods for sale Secure goods against risks like theft Importer can look for market when good are still in the bonded warehouse Importer can look for money to pay custom duty. Burden of paying custom duty goes to the new buyer if goods sold while still in the bonded warehouse Quality of goods and wine improves fetching higher prices -- Virus-free. www.avast.com

Documents used in recording transactions Invoice Debit note Credit note Statements of accounts Receipts Bank statements -- Virus-free. www.avast.com

Features of sea liners in sea transport include:   (4mks) They ferry passengers or cargo Follow a regular time table/schedule Call at port at regular intervals Follow a regular route Form conferences to protect themselves against unfair competition Charge fixed freightage and fare regardless of demand -- Virus-free. www.avast.com

Importance of communication to a business.  (4mks) Promote public relations Help people in charge to issue instructions Helps to clarify issues Enable coordination of business Help to enhance the image of the business Leads to improved production in business Help to promote interpersonal relationships in business Lead to provision of better services to the customers -- Virus-free. www.avast.com

Reasons about poor services in Wakulima warehouse.  (4mks) Unsuitable poor location that inconvenience the trader Inappropriate equipment Not secure/poor security system Inadequate space Poor inventory central system Lack of clear procedure leading to delay in receiving goods Untidy environment Lack of specialized facilities to store special goods Not adhering to government policy/strong illegal goods   -- Virus-free. www.avast.com

Rewards of the resources as used in production include:  (4mks) Wages Rent Profit Interest -- Virus-free. www.avast.com

Advantages of running a sole proprietorship business.  (10mks) It is easy to form because only a trading license required to start a sole proprietorship Quick decision making due to lack of consultation They are flexible since one can easily adapt to the changes in the market due to quick decision making. The owner enjoy all profits because there is no sharing The owner is able to maintain business secrets which enhances confidentiality The owner is able to offer personalized services to the customers due to personal contact The sole trader is accountable to himself/herself and thus he/she enjoyed freedom and prestige -- Virus-free. www.avast.com

Circumstances under which cash with order may be used include:    (4mks) When the business is conducted through past/mail order business Where the buyer is new Where the buyer's credit worthless is in doubt When the seller's policy is not to advance credit When the seller wants to avoid the high cost of debt collection. When the seller needs working capital When the seller want to avoid debtors' record maintenance   -- Virus-free. www.avast.com

Features of land as factor of production include:   (4mks) It is geographically immobile Supply of land is fixed It's a basic factor of production It's a natural resource Its fertility/productivity differs from one place to another. The reward of land is rent, rates and royalties -- Virus-free. www.avast.com

Types of business environment.   (4mks) External Internal Internal External -- Virus-free. www.avast.com

Ways in which the working environment can be improved.  (10mks) Provision of proper and adequate lighting Maintaining tidiness in the office/cleanliness Provision of adequate space of working Provision of proper ventilation Provision of relevant furniture and equipment Beautifying the office to give it a pleasant appearance Provision of smoking zones Discourage unnecessary noise Provision of adequate furniture and equipment Provision of welfare facilities (tea, lunch, music) Provision of special facilities for disadvantaged -- Virus-free. www.avast.com

Negative effects of  inflation Lowering standard of living Discouraging savings People loose confidence in the currency Leads to balance of payments problems Leads to high unemployment -- Virus-free. www.avast.com

Factors that influence entrepreneurial practices Positive/ good societal attitude Government support Good peer influence Proper education and training High number of successful entrepreneurs High number of financial institutions High level of personal motivations -- Virus-free. www.avast.com

Ways of implementing a business idea.      (4mks) Creating a new good Improving on existing good Improving the process of production Improving the marketing strategies Offering unique services Improving quality of services Improve quality of goods -- Virus-free. www.avast.com

Features of services.                              Are intangible Can't be stored Can only be experienced or felt. Inseparable from the service provider Highly perishable -- Virus-free. www.avast.com

Limitations that make consumers' initiated methods ineffective in protecting consumers in Kenya. (4mks)            Lack of proper registration on consumer protection Poor funding to undertake their operations Poor /inadequate /government support Ignorance by consumers on existence of avenues to follow to ensure they are not exploited Lack of adequate information by consumers about their rights. Majority of consumers buy goods individually. Lack of strong bodies for collective bargaining Emergence of vigilante groups. -- Virus-free. www.avast.com

Types of insurance policies include:                        Burglary or theft policy Motor vehicles insurance Fire policy Goods on transits policy Employer's liability policy/workman's compensation policy Fidelity guarantee policy Consequential loss/loss of profit policy Glass plate or showroom policy Bad debtors' policy. -- Virus-free. www.avast.com

Reasons for starting a business.                            To generate income/profit To create employment for himself/herself and others To provide goods/service to the people To utilize the available resources To channel his creativity/ innovativeness To utilize his leisure time/keep himself busy -- Virus-free. www.avast.com

Documents in international trade. Certificate of origin. Bill of loading. Consular invoice. Pro-forma invoice. -- Virus-free. www.avast.com

Causes of business failure Inadequate capital. Inappropriate marketing strategies thus low sales. Unfair/unhealthy competition. Inefficient management skills. Inadequate manpower. Inappropriate technology. -- Virus-free. www.avast.com