How to achieve profit maximisation objective. Reduce prices to increase sales Reduce the cost of production Diversify and expand production Expand market Increase prices of products Increase sales promotion campaigns.
Outline any four circumstances under which a credit note may be used.
When to use a credit note: When there are damaged goods When packing cases and containers are returned When there is overcharge resulting from an arithmetic error. When goods delivered are not in accordance with the order
1. Explain the following terms as used in commerce 4mks i) Registered capital ii) Subscribed capital iii) Issued capital iv) Paid up capital
i) Registered Capital – Amount of capital that a company can raise from its registered members ii) Subscribed Capital – The portion of issued share capital that has been accepted by the shareholders iii) Issued Capital – The portion of the… Read More
Outline any five benefits that a person may derive from being a member of savings and credit cooperative society.
Benefits of savings and credit co-operative society (SACCO) Education Sharing of additional profits Loans can be advanced Savings Improved living standards Credit facilities eg Bank overdraft.
Account for the low bargaining power of trade unions in Kenya today.
Problems of trade unions. Poor management Political interference Insufficient funds Lack of strike benefits High levels of unemployment Lack of patience during the negotiation period.
Assume that you are a policy maker in Kenya today, explain the reasons which would make you recommend rural industrialization policy.
Reasons for rural industrialization policy. Creation of job opportunities in rural areas Provision of market for raw materials produced in rural areas. Balanced growth in the economy Reduced rural – urban migration / influx Increase incomes of rural population Rural… Read More
Explain any five functions of commercial banks.
Function of commercial Banks Receiving deposits Advancing loans Transferring money Agents of the stock exchange market Custodian of valuable items
Opportunities exist for purchasing of necessary durable goods by installment. a) Describe two methods commonly used for this purpose. 4mks b) Mention three advantages of each to: i) The manufacturers 6mks ii) The consumer 6mks c) Give any two differences of the two methods.
Methods of buying goods in instalment. – Hire purchase – A system where the buyer agrees to pay for the commodity in instalments. The buyer obtains the possession of the article on the down payment (deposit) but the title of… Read More
Clearly define the term sales promotion. Discuss the importance of Trade Fairs as part of sales promotion.
Sales promotion: refers to the process whereby the demand for the products of a business enterprise is created in an attempt to increase sales. It has to do with informing the consumers about the existence of a particular product, its… Read More
What do you understand by economies to scale. Discuss any four internal economies of scale
Economies of scale refers to the benefits that a firm enjoys due to expanding its scale of production. Internal economies Administration: When a firm expands, its administrative expenses are distributed over greater output and the per unit cost decreases. Financial:… Read More