External factors that may negatively influence the operations of a business

1/4/2022

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External factors that may negatively influence the operations of a business.

Insecurity.
Strong customer bargaining power.
Unreliable supply system.
Unstable economic environment.
Unfavourable legal framework.
Unfair competition.
Unstable political environment.

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Circumstances in which the government may be involved in business activities

1/4/2022

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Circumstances in which the government may be involved in business activities.

When there is need to reduce foreign dominance.
When there is need to have balanced regional development.
When there are monopolies in the economy.
Where a business venture requires large investment of money.
When the goods and services to be provided are essential.
When the government needs to generate income through revenue collection.
When there is need to safeguard national security/sensitive products e.g. firearms.

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Ways of reducing unemployment in Kenya

1/4/2022

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Ways of reducing unemployment in Kenya

Delocalization of balanced regional development to reduce rural-urban migration.
Encouraging the informal/jua kali in order to promote self employment.
Diversification of the economy by encouraging establishment of different industries to create more employment.
Establishing and employment policy by government to make it easy for people to get jobs.
Exporting labour/assisting unemployed to get jobs abroad.
Population policy to control growth in order to have a labour force that the economy can absorb.
Increased government expenditure to expand the size of the economy.

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Explain five circumstances under which monopolies exist in a given economy

24/9/2021

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Circumstances under which monopolies exist

Where one firm controls the source of raw materials
Where the goods or product can only be efficiently produced by one firm only
Where firms merge or amalgamate to operate as one firm
If a firm grows naturally due to economics of large scale
Where patent rights and trade marks granted to one firm
Where the capital outlay is too huge denying entry of any new firm in the market
Where the government establishes a firm to provide an essential good / services

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Outline four circumstances in which the government may be involved in business.

21/12/2020

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Outline four circumstances in which the government may be involved in business.

Circumstances in which the government may be involved in business include:

When a business venture requires investment of large sums of money which individual entrepreneurs may not provide.
When the goods or services to be provided are essential to the welfare of the citizens.
When there is need to protect citizens from exploitation by private entrepreneurs.
When the government desires to create employment for the citizens.
When the government needs to generate income through revenue collection.
When there is need to safeguard national security.
When the venture is strategic but provides low profits hence unattractive to private investors.
Where there are monopolies in the economy, the government gets involved in business to increase competition.
Where there is need to balance regional development.
To reduce foreign dominance in the economy.
Where there is need to attract foreign investment.

Outline four circumstances in which the government may be involved in business.

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Highlight four ways in which consumers may protect themselves against exploitation by traders.

19/12/2020

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Highlight four ways in which consumers may protect themselves against exploitation by traders.

Ways in which consumers may protect themselves against exploitation include:

Inspecting goods before buying.
Enlightening themselves about their rights as consumers.
Familiarizing themselves with the obligations of traders.
Forming consumer associations.
Reporting cases of exploitation by traders to relevant authorities.
Avoiding traders identified as exploiters.
Demonstrate peacefully against the exploiter.
Complain through the media.

Highlight four ways in which consumers may protect themselves against exploitation by traders.

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Outline four malpractices by traders against which consumers may need protection by the government.

16/12/2020

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Outline four malpractices by traders against which consumers may need protection by the government.

Malpractices by traders against which consumers may need protection by the government include:

selling of contraband goods
overcharging
selling under weight goods
selling expired goods
giving misleading information about the product
hoarding

Outline four malpractices by traders against which consumers may need protection by the government.

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Explain five demerits that a country may stiffer when the government becomes a major investor in business. (10 marks)

16/12/2020

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Demerits that a country may stiffer when the government becomes a major investor in business

Demerits that a country may suffer when the government becomes a major investor in business include:

Discourage private investment. The move may discourage private investment due to unfair competition and acquisition of monopoly powers/unfavorable laws.
Poor quality goods and services. The quality of goods and services may be compromised due to lack of competition. Government employees also lack enthusiasm since there is no profit motive.
Limited choices for consumers. Where the government is the only provider of good/service, consumers may be denied a variety to choose from.
Inefficiency. Leading to low/poor productivity/continuous loss, Burden to tax payers. The investments may drain public resources by increasing government expenditure in situations where the enterprise is not able to sustain itself (burdening tax payers).
Lack of accountability/transparency/corruption. Managers of government-run businesses tend to misappropriate and embezzle public funds/ misuse public funds.
Unstable management. Government-run businesses are prone to frequent changes in their management occasioned by changing political leadership.
Political interference/patronage. Appointment of cronies/nepotism and unethical practices may lead to social discontent.
Bureaucracy/red tape. Leading to rigidity/slow response to market changes.

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The manager of Tasa Limited constantly walks around various departments. State four merits of this style of management.

15/12/2020

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The manager of Tasa Limited constantly walks around various departments. State four merits of this style of management.

Merits of Management by Walking around (MBWA) include:

Manager has first-hand information on the goings - on in the organization,
Manager has instant feedback from the workers.
Manager can tackle issues as they arise
Manager can enhance interpersonal relations with the workers.
Subordinates avoid idleness and work as they feel the presence of the manager.
Manager can give relevant comments on performance/rewards/motivation
Manager can identify absenteeism/lateness
It controls misuse of resources.

The manager of Tasa Limited constantly walks around various departments. State four merits of this style of management.

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A lucrative manufacturing firm been constantly releasing toxic wastes into the neighborhood. Outline four measures you can take to stop the firm from such malpractice

14/12/2020

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A lucrative manufacturing firm been constantly releasing toxic wastes into the neighborhood. Outline four measures you can take to stop the firm from such malpractice

Measures to stop emission of toxic wastes into neighborhood include:

Publicize the malpractice
Take legal action/sue the firm
Report to national environmental Management Authority(NEMA/Relevant authority
Education the neighbours on their rights.
Boycott the firms products
Carry out demonstrations against the firm

A lucrative manufacturing firm been constantly releasing toxic wastes into the neighborhood. Outline four measures you can take to stop the firm from such malpractice

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Outline four benefits that may accrue to a business from a country’s political stability

14/12/2020

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Outline four benefits that may accrue to a business from a country’s political stability

Benefits that may accrue from political stability include:

High probability of achieving set goals (increased sales/increased production)
Easy to obtain capital for expansion
Cost of operation of business is low
Accessibility to the market is enhanced
Continuous production activities
Easy to invest anywhere in the country/local or foreigner’s
Accessibility to raw materials

Outline four benefits that may accrue to a business from a country’s political stability

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Outline four reasons why the government may use regulatory measures to protect consumers against exploitation. (4 marks)

13/12/2020

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Outline four reasons why the government may use regulatory measures to protect consumers against exploitation.

Reasons why the government may use regulatory measures to protect consumers against exploitation.

The standards for operating business are low/unhealthy operations.
Generalized exploitation of consumers on weights and measures.
There is need for the government to enforce existing laws. for example:- trading licence.
Hoarding is taking place.
Unsafe buildings.
Substandard goods.
Unfair prices.
False advertising.
Breach of contract.

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Roles and functions of a stock exchange market

13/12/2020

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Role of a stock exchange market

Activities that may be carried out in a stock exchange market include:

Buying and selling of shares.
Mobilising savings for investment.
Listing of companies.
Issuing of new securities / raising capital.
publication of statistical information.
Advising investors.

roles and functions of a stock exchange market

Explain five advantages of government involvement in business. (10 marks)

12/12/2020

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Advantages of government involvement in business

Advantages of government involvement in business include:

Provision of essential services/good at fair prices/affordable/reasonable.
Provision of large capital investment - undertake ventures that require large sums which private sectors may not be able to raise / without which development would be minimal.
Protection of citizens - from exploitation/malpractice by businesses.
Stimulation of economic development - by developing social amenities/infrastructure roads / injecting funds into economy through development projects.
Creation of employment - to create jobs for its citizens to earn a living/improve their standard of Living.
Income generation - to increase government revenue through licensing/taxation/to finance public expenditure.
Stabilization of the economy through regulation/market intervention.
Promotes equity/fairness in the distribution/use of resources.
Control use of resources through conservation/legislative measures / to ensure their sustainability.
Maintenance of law/order - for smooth operations of a country’s affairs.
Promotion of best practices - through encouraging adoption of ICT/good governance/social programmes/inclusivity.
Promotes investment in the country by creating an enabling environment.
Promotes country’s identity/image - through cultural programmes /branding initiatives

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Discuss five principles that would lead to effective use of government resources. (10 marks)

11/12/2020

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Principles that would lead to effective use of government resources

Principles that would lead to effective use of government resources:

Economy - requires proper planning to avoid /minimize wastage/ensure maximum benefit.
Sanction - Authority should be sought from relevant bodies/parliament before committing public finance.
Maximum /optimal social benefit - resources should be used only on projects that improve social welfare / quality of life of the citizens /to benefit as many people as possible.
Flexibility - expenditure should be able to be adjusted to reflect the prevailing circumstances.
Equity - distribution of resources should be fair to all sectors/regions/minimize incidents of inequalities /imbalances.
Productivity - more resources should be spent on development projects than on nonproductive projects I on projects that yield high returns
Surplus - savings should be spent on emergencies and fill the revenue gap between collection and projection / expenditure should be less than (total) revenue collected.
Elasticity - expenditure should be capable of being expanded/contracted in line with the size of the economy.
Good/proper financial management to ensure accountability/good governance/transparency through proper record keeping.

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Outline four methods that the Government of Kenya uses to regulate business activities. (4 marks)

8/12/2020

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Methods that the Government of Kenya uses to regulate business activities

Methods of regulating business activities in Kenya include:

Licensing business activities;
Setting of standards;
Formulation of policies/enacting laws/legislation;
Setting quotas;
Enforcement of laws;
Imposing total ban;
Subsidizing business;
Taxation;
Price control.

methods that the Government of Kenya uses to regulate business activities

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Give four ways in which a government may participate in the operations of a state corporation. (4mks)

6/12/2020

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Ways in which a government may participate in the operations of a state corporation.

Appointing the board of directors
Availing financial support
Supervision of the activities of the corporation
Providing policy guidelines
Auditing the accounts
Facilitating training
Providing legal advise

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Explain five advantages of government involvement in business. (10 marks)

4/12/2020

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Advantages of government involvement in business

Provision of essential services / goods for fair / reasonable prices /affordable.
Provision of large capital investment/ undertake ventures that require large sums — which private sectors may not be able to raise / without which development would be minimal.
Protection of citizens / to protect citizens from exploitation / malpractices by business.
Stimulation of economic development by developing social amenities / infrastructure / roads / injecting funds into the economy / through development projects.
Creation of employment / to create jobs (for its citizens) to earn a living / improve standards of lung.
Income generation / to generate government revenue through taxation / activities.
Stabilization of the economy — through regulation / market intervention.
Promote equity / fairness in distribution of resources
Control use of resources — through conservation / legislative measures / ensure their sustainability.
Maintenance of law / order — which allows for smooth operations (of country’s affairs).
Promotion of best practices through encouraging adoption of ICT/ good governance / social programmes / exclusivity.
Promoting a country’s identity / image - through cultural programmes / branding initiatives / participation in international competition / fairs.
Reduce foreign dominance / promote a country’s sovereignty by regulating foreign participation / encouraging local participation in the economy.
Promotion of entrepreneurship cultures by encouraging business ownership / training / funding businesses.
Promotes investment in the country by creating enabling environment.

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Outline four circumstances in which the government may be involved in business. (4 marks)

2/12/2020

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Circumstances in which the government may be involved in business

When a business venture requires investment of large sums of money which individual entrepreneurs may not provide.
When the goods or services to be provided are essential to the welfare of the citizens.
When there is need to protect citizens from exploitation by private entrepreneurs.
When the government desires to create employment for the citizens.
When the government needs to generate income through revenue collection.
When there is need to safeguard national security.
When the venture is strategic but provides low profits hence unattractive to private investors.
Where there are monopolies in the economy, the government gets involved in business to increase competition.
Where there is need to balance regional development.
To reduce foreign dominance in the economy.
Where there is need to attract foreign investment.

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Outline four methods that the government of Kenya uses to regulate business activities. (4 marks)

1/12/2020

1 Comment

Methods that the government of Kenya uses to regulate business activities

Licensing business activities
Setting of standards
Formulating of policies — enacting laws / legislation
Setting quotas
Enforcement of laws
Imposing total ban
Subsidizing businesses
Taxation
Price control

1 Comment

State four functions of commercial attachees. (4 marks)

28/11/2020

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Functions of commercial attachees

Functions of commercial attachees include:

Educating and advising exporters on trade regulations/practices in other countries.
Expansion and diversification of exports.
Organizing for trade fairs and exhibitions of local goods in foreign markets.
Expansion and diversification of foreign markets.
Providing information about available selling opportunities in foreign countries to local producers.
Developments of bilateral and multilateral trade agreements. Select buyers/agents and distributors for the country’s export.
Publish and advertise their country’s exports in business journals and magazines.

State four functions of commercial attachees

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Highlight four ways in which the government creates an enabling environment for the conduct of business in the country. (4 marks)

22/11/2020

1 Comment

Ways in which the government creates an enabling environment for the conduct of business in the country

Ways in which the government creates an enabling environment for the conduct of business include:

Provision of credit facilities at favourable rates.
Ensuring political stability and good will.
Training and educating the population to create a pool of skilled manpower.
Marketing of final products for producers.
Provision of essential social amenities like water and sewerage, health and education.
Favourable policies and easy procedures like licensing, subsidies and favourable taxation.
Provision of infrastructure.

Highlight four ways in which the government creates an enabling environment for the conduct of business in the country

Provision of infrastructure

1 Comment

Explain five government initiated methods of consumer protection.

2/6/2020

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Government initiated methods of consumer protection

Setting standards/KEBS to ensure quality specifications of goods and services are met
Weight and measure act department this ensures that the commodities sold are of the correct weight and measurements
Food and drugs and chemicals substance Act -this ensures that manufacturers do not include any harmful substances in food stuffs/drugs .labels should contain contents/ingredients
Public health Act this ensures that public business premises /buildings and equipment s are hygienic
Rent restriction/tribunal Act protects tenants from being exploited by landlords
Licensing of firms/trade licensing Act to control number of firms so as to ensure healthy competition among firms
Trade description Act this ensures that producers indicate genuine contents so as not to mislead the consumers

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External factors that may negatively influence the operations of a business.

Circumstances in which the government may be involved in business activities.

Ways of reducing unemployment in Kenya

Outline four circumstances in which the government may be involved in business.

Highlight four ways in which consumers may protect themselves against exploitation by traders.

Outline four malpractices by traders against which consumers may need protection by the government.

Demerits that a country may stiffer when the government becomes a major investor in business

The manager of Tasa Limited constantly walks around various departments. State four merits of this style of management.

A lucrative manufacturing firm been constantly releasing toxic wastes into the neighborhood. Outline four measures you can take to stop the firm from such malpractice

Outline four benefits that may accrue to a business from a country’s political stability

Outline four reasons why the government may use regulatory measures to protect consumers against exploitation.

Role of a stock exchange market

Related Business Studies Quiz and Answers on Government and Business. Form 2 Level

Advantages of government involvement in business

Principles that would lead to effective use of government resources

Methods that the Government of Kenya uses to regulate business activities

Ways in which a government may participate in the operations of a state corporation.

Advantages of government involvement in business

Circumstances in which the government may be involved in business

Methods that the government of Kenya uses to regulate business activities

Functions of commercial attachees

Ways in which the government creates an enabling environment for the conduct of business in the country

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