Differences between whole life policy and endowment policy and other business studies paper 1 questions and answers

Differences between whole life policy and endowment policy.

The uses of the following documents in international trade.

(i) Bill of lading.

• It enables the holder to take possession of goods. It entitles the holder to take possession to goods imported.
• Can use it as a document for future reference.
• Can use the bill of lading to countercheck his goods on arrival.
• Can use it to get money for clearing, once the goods have come.
• Can use it as a proof of business transaction.
• Can use the bill to claim compensation in case all the goods indicated do not reach him.
• It acts as evidence that goods have been received by the ship owner.
• It is negotiable document in that the importer can transfer ownership of the goods by indicating and signing on it.

(ii) Indent

• It used to assist the exporter of agent to know where to buy goods.
• It used to assist the agent to select on exporters.

Factors to consider when identifying a business opportunity.

• Objectives of the business.
• Availability of skills to operate the business.
• Availability of markets.
• Technology.
• Availability of raw materials.
• Government policy.
• Amount of capital required.
• Level of competition.
• Difficulties in marketing.
• Possibility of expansion.
• Impact of the business on the environment.
• Security.
• Level of infrastructure development

Circumstances which may necessitate the government to nationalize some industries.

• When it want to protect the consumer against private monopoly.
• If there has been wasteful competition by several private companies.
• If the private company was irregularly acquired by private investors from the government.
• If the activity carried out by the private company should have national benefit but not individual benefit e.g. mining.
• If the firm has relied on government subsidy for so long.
• Where there is need to prevent foreign dominion in the key sector of the economy.
• When the government want to provide essential services at affordable prices.
• When the government desires to create job opportunities.
• If the business is dealing with sensitive goods which cannot be left in the hands of private sector due to security reasons.

Importance of the following financial ratios to a business.

(i) Margin.

• Helps in setting of selling price.
• Can be used in calculation of profits or losses.
• Used in determining sale for a given period of time

(ii) Rate of stock turnover.

• Used to determine the fast and slow moving stock.
• May be used to compute gross profit or loss

Advantages of using television as an advertising media.

• Combines sound, words and motion pictures which make advertising appeal.
• Show most product features.
• Educate customers on the usage of products.
• They are entertaining and hard to ignore.
• Appreciated by both literate and illiterate.
• Advertisement may be aired as frequently as required.
• Advertisement may be modified as need arises

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• What are the characteristics of a successful entrepreneur?
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• Goals of development in a country
  Goals of development in a country. Provision of adequate health facilities. Attainment of high and suitable economic growth. \ Alleviation of poverty. Attainment of food security. Maintenance of political stability. Provision of security. Alleviation of unemployment. Post Views: 10 Related posts: CO-OPERATION IN AFRICA NOTES CO-OPERATION IN AFRICA NOTES KCSE ENGLISH GRAMMAR AND LITERATURE NOTES … Read more
• Method of product promotion
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• Benefits that people receive from business enterprise.
  Benefits that people receive from business enterprise. Creation of employment. Income generation. Obtain goods and services. Provide market for local resources. To be own boss when one starts a business. Special services are offered. Proper utilization of spare time. New invention among people. Post Views: 7 Related posts: KCSE ENGLISH GRAMMAR AND LITERATURE NOTES CREATION … Read more
• Types of taxes
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• Features of economic resources
  Features of economic resources They are scarce/limited in supply. They have money value. Some are mobile while others are immobile. They have alternative uses. Different places are endowed with different economic resources. They have ability to create goods and services.   Post Views: 32 Related posts: KCSE ENGLISH GRAMMAR AND LITERATURE NOTES CHRISTIANS APPROACHES TO … Read more
• Circumstances under which hire purchase may be used to acquire goods and services.
  Circumstances under which hire purchase may be used to acquire goods and services. When the buyer does not have enough money to pay at once. When the buyer desires to own luxurious items. When the buyer is salaried employee or has regular income. When the buyer wants to use the item immediately before completing paying. … Read more
• Functions of wholesalers.
  Functions of wholesalers. Act as a link between producers and retailers. Transport goods to retailers’ premises. Offer storage to ensure continuous supply. Stabilizes prices due to storage of goods. Reduce operational costs as they link producers with retailers. Advise both producers and retailers about pricing. Advertise goods which they deal in. Prepare goods for sale … Read more
• Causes of cost push inflation.
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• Methods the government uses to protect consumers
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• Disadvantages of manufacturers if wholesalers are eliminated from the chain of distribution.
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• Ways in which commercial banks facilitates transferring of money.
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• Benefits of pooling of risks.
  Benefits of pooling of risks. Enables insurance company to compensate those affected. Enables insurance company to spread risk over larger number of people. Surplus funds are invested to generate profits. Enables the company to meet its operating costs. Enables the company determine the premiums to be charged. Enables the company reinsure itself. Post Views: 495 … Read more
• Determining the size of a firm
  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. Post Views: 6 Related posts: CRE Standard 8 Notes KCPE PAST PAPERS 2007 MATHEMATICS QUESTIONS AND ANSWERS KCPE PAST PAPERS 2007 ENGLISH GRAMMAR QUESTIONS AND ANSWERS KCPE … Read more
• Demerits of using newspapers as a means of advertising.
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• Human wants one would satisfy.
  Human wants one would satisfy.                           Secondary Basic Secondary Basic Post Views: 5 Related posts: CREATION AND THE FALL OF HUMAN KIND CHRISTIAN APPROACHES TO HUMAN SEXUALITY,MARRIAGE AND FAMILY LESSON THREE: CHRISTIAN VIEW ON ISSUES RELATED TO SCIENCE AND TECHNOLOGY. KCSE ENGLISH GRAMMAR AND LITERATURE NOTES DEMOCRACY AND HUMAN RIGHTS … Read more
• Merits of globalization
  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. Post Views: … Read more
• Circumstances when per capita income statistics would be a good indicator
  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 … Read more
• Errors that do not affect the agreement of a trial balance.
  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. Post Views: 9 Related posts: KCSE ENGLISH GRAMMAR AND LITERATURE NOTES The following trial balance was extracted from the books of Carson Traders on 31 December, 2005 … Read more
• Circumstances under which verbal communication would be preferred to written communication.
  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. Post Views: 18 Related posts: … Read more
• Causes of business failure
  Causes of business failure Inadequate capital. Inappropriate marketing strategies thus low sales. Unfair/unhealthy competition. Inefficient management skills. Inadequate manpower. Inappropriate technology. Post Views: 6 Related posts: KCSE ENGLISH GRAMMAR AND LITERATURE NOTES LESSON THREE: CHRISTIAN VIEW ON ISSUES RELATED TO SCIENCE AND TECHNOLOGY. CHRISTIANS APPROACHES TO ISSUES RELATED TO EMPLOYMENT APPROACHES TO LAW, ORDER AND … Read more
• Documents in international trade.
  Documents in international trade. Certificate of origin. Bill of loading. Consular invoice. Pro-forma invoice. Post Views: 4 Related posts: TRADE NOTES CO-OPERATION IN AFRICA NOTES CO-OPERATION IN AFRICA NOTES THE FORMATION STRUCTURE AND FUNCTIONS OF THE GOVERNMENT OF KENYA NOTES CONTACT BETWEEN EAST AFRICA AND THE OUTSIDE WORLD UP TO 19TH CENTURY NOTES INTERNATIONAL RELATIONS … Read more
• Reasons for starting a business.
  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 Post Views: 8 Related posts: KCSE ENGLISH GRAMMAR AND LITERATURE NOTES … Read more
• Reasons for starting a business.
  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 Post Views: 12 Related posts: KCSE ENGLISH GRAMMAR AND LITERATURE NOTES … Read more
• Types of insurance policies
  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. Post Views: 3 Related posts: KCSE ENGLISH GRAMMAR AND LITERATURE … Read more
• Limitations that make consumers’ initiated methods ineffective in protecting consumers in Kenya
  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 … Read more
• Features of services
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• Ways of implementing a business idea
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• Factors that influence entrepreneurial practices
  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 Post Views: 15 Related posts: KCSE ENGLISH GRAMMAR AND LITERATURE NOTES FATHERS OF NATIONS STUDY GUIDE PDF APPROACHES TO LAW, ORDER AND … Read more
• Negative effects of inflation
  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 Post Views: 6 Related posts: KCSE ENGLISH GRAMMAR AND LITERATURE NOTES AFRICAN MORAL AND CULTURAL VALUES CHRISTIAN APPROACHES TO HUMAN SEXUALITY,MARRIAGE AND FAMILY CRE Standard 8 Notes THE SINAI … Read more
• Ways in which the working environment can be improved
  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 … Read more
• Types of business environment
  Types of business environment.   (4mks) External Internal Internal External Post Views: 8 Related posts: LESSON THREE: CHRISTIAN VIEW ON ISSUES RELATED TO SCIENCE AND TECHNOLOGY. KCSE ENGLISH GRAMMAR AND LITERATURE NOTES SENIOR PROGRAMME MANAGEMENT OFFICER, P5 CREATION AND THE FALL OF HUMAN KIND BUSINESS STUDIES SYLLABUS FORM 1 BUSINESS STUDIES FORM 3 PAPER 1 AND … Read more
• Features of land as factor of production
  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 Post Views: 10 Related posts: KCSE ENGLISH GRAMMAR AND … Read more
• Circumstances under which cash with order may be used
  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. … Read more
• Advantages of running a sole proprietorship business
  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 … Read more
• Rewards of the resources as used in production
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• Importance of communication to a business
  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 … Read more