QUICK QUESTIONS WITH ANSWERS FOR REFERENCE

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

Circumstances under which verbal communication would be preferred to written communication. If the person intends to convince another. If the message is urgent. If distance between the sender and the recipient is very short. If the message is confidential. If the immediate feedback is required. If the recipient is illiterate. -- Virus-free. www.avast.com

Errors that do not affect the agreement of a trial balance. Errors of total omission. Error of original entry. Compensating errors. Complete reversal of entry. Error of principle. -- Virus-free. www.avast.com

Circumstances when per capita income statistics would be a good  indicator When national income is evenly distributed among citizens. When national statistics are in real terms and allowances made to take care of price fluctuations. When output per year is based on essential and final goods/services consumed by the masses. When real statistics on population figures is obtained and not projections used. -- Virus-free. www.avast.com

Merits of globalization Facilitates application of better technology for improved goods. Encourages collaboration among businesses from different countries. Makes it possible to share new production techniques. Facilitates sharing of research findings. Enables business enterprises to take advantage of resources found in other parts of the world. Wider markets. Leads to transfer of capital. -- Virus-free. www.avast.com

Demerits of using newspapers as a means of advertising. Does not cater for illiterate. May not reach rural areas. Expensive to book a space in newspaper. Message may be read only once as people are interested for that particular time. -- Virus-free. www.avast.com

Human wants one would satisfy.                           Secondary Basic Secondary Basic -- Virus-free. www.avast.com

Determining the size of a firm Number of employees. Volume of output. Floor space covered by premises. Amount of capital invested. Production methods used. Market served. Sales volume. -- Virus-free. www.avast.com