Features of labour

Can not be stored i.e. if it remains idle for sometimes it is wasted.

Can not be separated from the labourer

Bargaining power of labour is weak

The supply of labour depends on other factors such as population, educational and training facilities, social conditions e.t.c

Can be skilled, semi- skilled and unskilled.

Roles of ethics in business

Encourages good working relations among workers

Ensuringgood employer and employees.

Ensures that rights of individuals in theworking environment are protected.

Ensures that professionals relate professionally to their clients

Helps workers to protect and uphold a good reputation of the business organization

Helps the workers to develop proper skills and right attitudes towards their work.

Subjects included in business studies.

Economics

Commerce

Accounting

Office practice

State four merits of replacing manualsystems with automated ones in carrying out office activities.

They are labour saving

Faster / save time

They are accurate

Presentable output

Control fraud

Uniformity of output

Functions of a market

Price determination

Contact between buyers and sellers

Product outlet

Transaction ground

Source of goods

State what is represented by letters in the equation used in measuring national income

Y - National income

C- Consumption expenditure by households

I- Investment expenditure

G- Government expenditure

X- Exports i.e expenditure on national output by foreigners

M-imports i.e expenditure on imports

Circumstances where a manufacturer would sell his goods directly.

Technological products

Some items involve long procedures

Some may require after sales services

Some products are of very high value

To avoid competition

Where the manufacture has enough funds.

Effects of inflation

Weakens the value of the local currency

Adverse effect on contractual agreement for provision and supply of goods and services.

Decline of standards of living for people earning fixed income.

Lenders loose borrowers

Inflation discourages savings

Increase the cost in implementation of development plans

Balance ofpayment deficit

Fall in investment and increases levels of employment.

High inflation rates general industrial unrest.

Characteristics of human wants

Insatiable

Require resources

Vary in urgency and intensity

Competitive

Recurrent

Universal

Habit forming

Complimentary

Factors that determine the size of a firm

The number of workers

The volume of output

The amount of capital invested

The technique of production / technology

The size of the market served

The means of transport and communications

The sales volume

Prominent features of retailers warehouses

Mainly owned by large scale retailers

Attached to the retail shops

Stock fast moving consumer goods

They hold reserve stock to ensure the demand is constantly met

They help in maximizing sales, improving services to customers and achieving economies of scale

Emerging issues in business

Corruption

Market liberalization

Privatisation

Dumping

H.I.V Aids

Uses of a credit note

Used to correct an overchange

Issued when empty containers are returned

Used to correct calculation errors on the invoice

Issued when damaged goods are returned.

Issued when wrong items are supplied

External factors that affect the business

Economic environment

Demographic environment

Legal political environment

Technological environment

Socio- cultural environment

Competitive environment

Advantages of private carriers

They can establish direct contact with suppliers & customers hence establish social relations

Can transport their goods any time they wish

Can have their own carriers & terminals designed to suit their needs

Can use vehicles for advertisements of their firm or products

Can be hired by other firmshence generating more income.

Factors influencing supply of money in an economy.

Increase in economic growth

Increase in levels of employment

Price stability

Exchange rate stability

High capital turnover

Four types of information disclosed

An accurate description of the matters to be insured

The period for which the insurance cover is required

The place where the matter to be insuredis located

The risk against which the insurance cover is required

Any circumstances or conditions that are likely to increase the probability of the risk occurring.

Improved technology

Reduction in the cost of production

Reduction in the price of an alternative product

An increase in the number of producers

Effects of transactions on assets, liabilities and capital

Transaction

Effects on the balance sheet

Assets

Liabilities

Capital

Borrowed a loan fromthe bank

Increase

Increase

No effect

Bought furniture for the

Business oncredit.

IncreaseP

IncreaseP

No effect

Sold the delivery van and

was paid cash

IncreaseP

DecreaseP

No effect

No effect

Drew 2,000 from the business for personal use

DecreaseP

No effect

DecreaseP

Definitions:

Debtor: Personlorganisation who owes money to another for goods / services taken on credit

Capital : Money/ items contributed by someone inorder to start / sustain a business

Fixed Assets: property owned by business and is expected to last for along time. Goods that are not for re-sale

Liabilities - Money/ items borrowed by the business. It is what is owed by the business to others

Contents of a statement of account.

Balances at the beginning and at the end of the trading period

All invoices issued during the month

All debit notes issued during the month

All credit notes issued during the month

a) x = sh. 20, 000

y= 104,000

b) i) Cash was withdrawn from the bank for office use

ii) Kibet , a creditor was paid by cheque

23. Features of incorporated business organizations.

- Legal procedure is followed during formations

- They have corporate status- They are legal entities separate from the owners who formed.

- Shareholders have limited liability

- They have perpetual succession

- They can raise large amounts of capital hence large in size

- Failure of the business does not necessarily reflect the failure of its owners.

24. Solving unemployment in Kenya

- Educating and training

- Changing with technology

- Alternative employment

- Settingand following government policies

- Setting industries in different areas.

25. Characteristics of under-development

- Low per capital income / high level of poverty

- Unequitable distribution of income & wealth

- Level of savings & investments i.e. vicious cycle of poverty

- High population growth rate

- High level of dependency

- Dominance of traditional subsistence sector

- Under-utilisation of natural resources

- High level of unemployment / under -employment

- Large rural population

- Great number of illiterate population

- Low labour productivity

- Dependence on the developed countries