QUESTION ONE Some enterprising youth have come up with diaspora associations which helps Kenyans abroad to deliver gifts to their families within the country. The Kenyans abroad simply log on to a website where they choose the gift they want to send to their relatives and their relatives' contacts. They make their payments from the website as well. The youth then shop locally for the gifts and deliver them thereby making their money. Required: a. What is E-Commerce and what benefits can be derived from E -Commerce. (10 Marks) b. In your opinion, is the diaspora association concept a business? With reference to the definition of a business and the features of a business justify your position. (10 Marks) c. What is franchising and what are the advantages and disadvantages of franchising for the franchisee . (10 Marks) QUESTION TWO a) You have been approached by a group of people who would like to form and start a public limited company . Explain to them what a public limited company is and the steps they need to follow to form the company. (10 Marks) b) Explain the main sources of finance for small business owners in Kenya (10 Marks) QUESTION THREE a) The primary objective of business is to make profits and therefore it should not concern itself with any other issues. Discuss. (10 Marks) b) Clearly explain any five functional areas of management. (10 Marks) QUESTION FOUR a) The external environment has a major impact on business and therefore managers cannot ignore it. Giving examples show how the external environment factors affect business operations. (10 Marks) b) What is the role of the Nairobi Stock Exchange in the Kenyan economy? (10 Marks) QUESTION FIVE a) Queiness can be much a headache to us Why do needn find it have

QUESTION ONE<br />a. E-Commerce, or electronic commerce, refers to the buying and selling of goods and services over the internet. The benefits of E-Commerce include convenience, wider reach, cost savings, and faster transactions.<br />b. The diaspora association concept can be considered a business as it involves the exchange of goods and services for money, which aligns with the definition of a business. The features of a business, such as providing goods or services, generating revenue, and having a profit motive, are evident in the diaspora association concept.<br />c. Franchising is a business arrangement where one party (the franchisor) grants another party (the franchisee) the right to use its trademark, products, and business model. Advantages for the franchisee include established brand recognition, support from the franchisor, and a proven business model. Disadvantages include high initial costs, ongoing royalties, and limited control over the business.<br /><br />QUESTION TWO<br />a. A public limited company (PLC) is a type of business entity that is owned by shareholders and has shares of stock that are publicly traded. To form a PLC, individuals must follow specific steps such as drafting a memorandum and articles of association, appointing directors, registering the company with the relevant authorities, and issuing shares to the public.<br />b. The main sources of finance for small business owners in Kenya include personal savings, bank loans, government grants and loans, angel investors, and crowdfunding.<br /><br />QUESTION THREE<br />a. While making profits is a primary objective of business, it is not the only concern. Businesses also need to consider factors such as social responsibility, environmental sustainability, and ethical practices. Ignoring these issues can lead to negative consequences for the business and society.<br />b. The five functional areas of management are planning, organizing, staffing, directing, and controlling. Planning involves setting goals and determining the best way to achieve them. Organizing involves arranging resources and tasks to achieve the goals. Staffing involves recruiting and training employees. Directing involves leading and motivating employees. Controlling involves monitoring and evaluating performance.<br /><br />QUESTION FOUR<br />a. The external environment factors that affect business operations include economic conditions, political and legal factors, social and cultural factors, technological advancements, and environmental factors. For example, changes in government regulations can impact business operations, and technological advancements can create new opportunities or threats.<br />b. The Nairobi Stock Exchange plays a crucial role in the Kenyan economy by providing a platform for companies to raise capital through the sale of shares. It also facilitates the buying and selling of shares, which helps to allocate capital to the most productive uses. Additionally, the stock exchange provides liquidity to investors, allowing them to easily buy and sell shares.<br /><br />QUESTION FIVE<br />a. Business can be a headache due to various reasons such as competition, economic downturns, regulatory changes, and operational challenges. However, it is necessary to find a way to make it work because it provides opportunities for growth, innovation, and job creation.