- a) Describe three reasons why business location is an important consideration to an investor. [6 marks] b) Explain seven factors to consider when selecting a suitable location for a retail outlet. [14 marks] c) Explain TEN problems faced by co-operatives in Kenya. [10 marks] QUESTION TWO a) Explain FIVE elements of the external environment of a business. [10 marks] b) Describe FIVE parts of a business plan. [10 marks] QUESTION THREE a) Explain any THREE factors that a business owner needs to consider when choosing the most appropriate legal structure for a business. (6 marks) b) Explain any SEVEN qualities required of an effective businessman. (14 marks) QUESTION FOUR a) Discuss THREE advantages and TWO disadvantages of companies as forms of businesses. (10 marks) b) Explain FIVE differences between debentures and shares (10 marks) Page 1 of 2 QUESTION FIVE a) Highlight FOUR differences between goods and services (4 marks) b) Using local examples in Kenya, explain e-commerce business (6 marks) c) Explain FIVE challenges that local businesses experience. (10 marks)
- b) Explain seven factors to consider when selecting a suitable location for a retail outlet. [14 marks] QUESTION FOUR Write short notes on each of the following giving examples: a) Mergers [5 marks] b) Acquisitions [5 marks] c) Capital markets [5 marks] d) Franchise [5 marks] QUESTION FIVE a) Explain five characteristics that distinguish a co -operative from a public limited company. [10 marks] b) Detail the contents of a business plan. [10 marks]
- (2) The accounting profession as for a long time relied on certain accounting conventions to guide the accounting practice . From the following principles of convention , white short notes and Explain their importance in preparation of financial statements. (i) The historical entity Principle (ii) The histational cost principle (iii) The monetary principle (iv) The matching principle (v) the conservatism pxinciple
- (2) The accounting profession as fat a long time telied on certain accounting comentions to guide the accounting practice. From the following principles of comenting, white shatt noter and Explain the it importance in preparation of financial statements. (i) The historical entity Principle (ii) The histational cast principle (iii) The monetary principle (iv) The matching principle (v) the conservatism pxinciple
- INSTRUCTIONS Answer question ONE and any other TWO questions. QUESTION ONE a) Highlight six features of a small business. [6 marks] b) Describe six uses of a business to a country. [12 marks] c) Explain the following terms used in business: i) Limited liability [2 marks] ii) Company limited by guarantee [2 marks] iii) Company limited by shares [2 marks] iv) Certificate of incorporation [2 marks] v) Memorandum of association [2 marks] vi) Partnership deed [2 marks] QUESTION TWO Describe five distinguishing features of each of the following forms of business: a) Sole trader [10 marks] b) Partnership [10 marks] QUESTION THREE a) Describe three reasons why business location is an important consideration to an investor. [6 marks] b) Explain seven factors to consider when selecting a suitable location for a retail outlet. [14 marks] QUESTION FOUR Write short notes on each of the following giving examples: Page 1 of 2 a) Mergers [5 marks] b) Acquisitions [5 marks] c) Capital markets [5 marks] d) Franchise [5 marks] QUESTION FIVE a) Explain five characteristic that distinguish a co-operative from a public limited company. [10 marks] b) Detail the contents of a business plan. [10 marks]
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