Highlight four factors that may hinder the expansion of small scale business enterprises.

5/11/2021

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Highlight four factors that may hinder the expansion of small scale business enterprises. (4mks)

Four factors that may hinder the expansion of small scale business enterprises

Inadequate capital may cause a business to remain small because without capital a business may not be able to expand.
Lack of entrepreneurial skills may hinder the expansion of the business.
Lack of adequate security may discourage businessmen from expanding their business to avoid incurring high losses in case of a robbery.
Low purchasing power of consumers/the size of market is small.
Employment of unskilled labour causes poor performance which leads to the stagnation of a business.
Small businesses face stiff competition from larger and well-established businesses forcing them to remain small.
Most small-scale businesses are located in rural areas, where the infrastructure is poor, a situation that hinder their expansion.
The subsistence lifestyle of consumers in rural areas leads to low business activity which inhibits the growth of the small businesses in the rural areas.
Poor lending policies.

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Give four reasons why small scale firms may continue to exist in an economy dominated by large scale firms

19/9/2021

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Reasons as to why small scale farms continue to exist in an economy dominated by large scale forms.

Size of the market
Nature of the product
Simplicity of organization
Legal constraints
Need to retain control
Rising cash of production
Flexibility of small firms
Believe that a small firm is more manageable

Give four reasons why small scale firms may continue to exist in an economy dominated by large scale firms

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Explain five benefits that may be realized by a country as a result of government policy to relocate industries to rural areas.

21/12/2020

3 Comments

Explain five benefits that may be realized by a country as a result of government policy to relocate industries to rural areas.

Benefits that may he realized by a country as a result of government policy to relocate industries to rural areas include:

Increased availability of variety of goods and services as a result of new businesses in the area.
Availability of auxiliary services - citizens would enjoy more and better auxiliary services like transport.
Increased job opportunities - there will be more jobs available that would reduce unemployment.
Increased utilisation of locally available resources - locally available factors of production will be used and the citizens would earn rewards associated with them.
Improved standard of living as development of the rural areas increases the quality and variety of goods and services.
Reduced congestion in towns - this would benefit the few citizens remaining in the city.
Balanced economic development as economic activities are spread throughout the country.
Transfer of technology to rural areas which leads to production of better quality goods/services.
Creation of market for goods/services produced in rural areas.

Explain five benefits that may be realized by a country as a result of government policy to relocate industries to rural areas.

3 Comments

Highlight four factors that a firm may consider when deciding on the goods to produce.

20/12/2020

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Highlight four factors that a firm may consider when deciding on the goods to produce.

Factors that a firm may consider when deciding on the goods to produce include:

Expected demand - where demand is low, a firm will only produce a few goods or not produce at all.
Availability of capital resources - this would help decide on the level of production.
Time period - the firm must consider whether short or long term production is required.
Availability of labour - labour supply of the relevant skills would be required.
Cost of raw materials - the firm must consider availability and cost of buying and transporting raw materials.
Government policy - the firm must abide by the rules and regulations of the country.

Highlight four factors that a firm may consider when deciding on the goods to produce.

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Outline four reasons why a firm may remain small.

17/12/2020

2 Comments

Outline four reasons why a firm may remain small.

Reasons why a firm may remain small include:

Target market is small
Limited production capacity
Nature of the product
Owner’s decision to remain small
inadequate appropriate technology

Outline four reasons why a firm may remain small.

2 Comments

Explain five objectives that may be achieved by establishing firms in different parts of the country (10 marks)

17/12/2020

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Objectives that may be achieved by establishing firms in different parts of the country

Objectives that may be attained by establishing firms in different parts of the country include:

To reduce rural-urban migration. Setting up firms in several parts of the country may curb the influx of people from rural to urban areas. This helps to retain the productive population in the rural areas.
To utilize local resources/factors of production/untapped resources. Establishing firms in various parts of the country will enhance the use of idle resources in those areas.
To create employment opportunities. This is a sure way of creating employment opportunities in several parts of the country which improves the standard of living.
To provide balanced regional development. Creating firms in various parts of the country will ensure that all parts growl develop at the same rate/time.
To promote development of infrastructure. Setting up of firms will encourage the growth of infrastructure like roads, power, water, railway and communication in various parts of the country which opens up the country and facilitates production/movement of goods/services/factors.
To promote development of social amenities / schools/ health facilities. When firms are set up in various parts of the country. social amenities will also be developed. This improves the social welfare of the people.
To reduce social problems hence avoiding/minimizing pollution/crime/prostitution/drug abuse/theft.
To promote urban growth hence encouraging growth of market/economy/commercial activities.
To reduce congestion in certain areas in order to ease pressure on resources.
To reduce effects of concentrated pollution which may negatively affect the environment
To minimize effects/impact of calamities/terrorism/catastrophe which may polarize the economy
To reduce income disparities/inequalities as people will be engaged in production activities.

Explain five objectives that may be achieved by establishing firms in different parts of the country

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Outline four factors that may be considered when measuring the size of a firm.

17/12/2020

0 Comments

Outline four factors that may be considered when measuring the size of a firm.

Factors that may be considered when measuring the size of a firm include:

the level or volume of output
the number of employees
the capital invested
the production methods (technology) used
the market served
the floor area covered by the firm’s premises
the sales volume

Outline four factors that may be considered when measuring the size of a firm.

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Highlight four benefits that would accrue to a firm located near other existing firms

14/12/2020

0 Comments

Highlight four benefits that would accrue to a firm located near other existing firms

Benefits that accrue to a firm located near existing firms:

Enjoyment of existing infrastructure
Access to labour
Access to raw materials
Collaboration with existing firms’ e.g. research & development
Auxiliary services
Access to markets
Access to security
Social amenities

Highlight four benefits that would accrue to a firm located near other existing firms

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Outline four factors that an entrepreneur should consider before setting up a manufacturing business. (4 marks)

13/12/2020

0 Comments

Outline four factors that an entrepreneur should consider before setting up a manufacturing business.

Factors that an entrepreneur should consider before setting up a manufacturing business.

Potential demand for goods/services.
Source of raw materials.
Security iii the area.
Existing infrastructure.
Auxiliary services.
Legal requirements/government policy.
Source of labour.
Source of capital/technology.
Possible returns on investment/availability of market.
Chances of growth expansion.
Effects on the environment.
Competition.
Social cultural environment.
Availability of space.
Political stability.

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Explain five strategies that a small – scale firm could adopt to expand so as to enjoy economies of scale.

12/12/2020

0 Comments

Explain five strategies that a small – scale firm could adopt to expand so as to enjoy economies of scale.

Strategies that a small – scale firm could adopt to expand so as to enjoy economies of scale.

Entering into suitable vertical integration/amalgamation/merger with firms at different stages of production/accept exps as explanation with firms at some level of production.
Diversification/variety of products in order to capture to wider market/increase market share.
Buying/acquiring other similar businesses to widen the scope of activities
Secure loans/credit to expand its capital base.
Arrange for franchising, by acquiring rights to produce/selling goods under a name of another company
Expand the markets to increase the volume of sales.
Adopting appropriate technology to increase quantity/quality
Ploughing back profits to finance its operation
Forming cartels with similar businesses.

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State four reasons that make it necessary for firms to maintain a healthy environment. (4 marks)

10/12/2020

0 Comments

Reasons that make it necessary for firms to maintain a healthy environment

Reasons that make it necessary for firms to maintain a healthy environment include:

To protect /safeguard human health eg. employees, customers, surrounding community;
To maintain the ecological balance;
To conserve natural resources I raw materials;
For sustainable economic development;
For environmental conservation;
To comply with the set laws;
As part of corporate social responsibility;
To enhance corporate.

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State four social responsibilities that a manufacturing firm should have on the community.(4mks)

8/12/2020

0 Comments

Social responsibilities that a manufacturing firm should have on the community

Participation in community programmers
Applying appropriate waste disposal management
Providing affordable products to the community
Conservation of the environment
Community development
Provision of employment
To engage family members in employment
Positive cultural practice
Encouragement from family members and friend
Availability of infrastructure
Availability of market
Hobbies interests and talents
Modern technology

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Explain five benefits that may be realised by a country as a result of government policy to relocate Industries to rural areas ( 10 marks)

5/12/2020

0 Comments

Benefits that may be realised by a country as a result of government policy to relocate Industries to rural areas

Increased availability of variety of goods and services as a result of new businesses in the area,
Availability of auxiliary services - citizens would enjoy more and better auxiliary services like transport,
Increased job opportunities - there will be more jobs available that would reduce unemployment,
Increased utilization of locally available resources - locally available factors of production will be used and the citizens would earn rewards associated with them,
Improved standard of living as development of the rural areas increases the quality and variety of goods and services,
Reduced congestion in towns - this would benefit the few citizens remaining in the city,
Balanced economic development as economic activities are spread throughout the country.’
Transfer of technology to rural areas which leads to production of better quality goods/services,
Creation of market for goods/services produced in rural areas.

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Chem Chemi Ltd is a new cement manufacturer. Outline four factors that may encourage this company to be established in Athi River town where other cement manufacturers are located despite the obvious competition. (4 marks)

27/11/2020

0 Comments

Factors that may encourage Chemchemi Ltd. to be located in Athi River include:

Availability of raw materials in Athi River.
Skilled labour is readily available in Athi River (can be poached from other companies).
Market is readily available in Nairobi and its environs.
There is ready supply/source of power.
Government policy encourages the establishment of such firms in Athi River which is also an E.P.Z.
An established transport network
An established communication network.
Availability of well-developed social amenities like schools, stadia, sewerage systems and water supply.
Availability of security.
Availability of auxiliary services e.g. banks.

Chem Chemi Ltd is a new cement manufacturer

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Highlight four external economies of scale that a firm may get when operating on a large scale.(4 marks)

23/11/2020

0 Comments

External economies of scale that a firm may get when operating on a large scale

External economies of scale that a firm may get when operating on a large scale include:

Ready market from the surrounding industries.
Access to skilled labour force.
Enjoy improved infrastructure.
Easy disposal of wastes.
Readily available complementary services like banking, insurance and warehousing.
Improved security.
Government support/favourable policies.

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Explain five advantages of locating firms in different parts of the country.

2/6/2020

0 Comments

Answer

Advantages of locating firms in different parts of the country

Curbs rural-urban migration-this eases pressure on social amenities which tend to be found in areas with a concentration of many firms /urban areas
Creates employment /jobs to rural dwellers enabling them to earn an income
Avails a variety of goods which enhance consumer choice
Promotes even distribution of infrastructure across the country - this is required to facilitate the operation of the firms
Leads to transfer of (new)technology/skills for better utilization of resources across the country
Development of social amenities that improve the welfare of the people
Provides market for raw materials hence broadening the income sources for locals
Attracts auxiliary services such as banks which are beneficial to the society

0 Comments

Highlight four factors that may hinder the expansion of small scale business enterprises.

Highlight four factors that may hinder the expansion of small scale business enterprises. (4mks)

Give four reasons why small scale firms may continue to exist in an economy dominated by large scale firms

Explain five benefits that may be realized by a country as a result of government policy to relocate industries to rural areas.

Explain five benefits that may be realized by a country as a result of government policy to relocate industries to rural areas.

Highlight four factors that a firm may consider when deciding on the goods to produce.

Highlight four factors that a firm may consider when deciding on the goods to produce.

Outline four reasons why a firm may remain small.

Outline four reasons why a firm may remain small.

Explain five objectives that may be achieved by establishing firms in different parts of the country (10 marks)

Objectives that may be achieved by establishing firms in different parts of the country

Outline four factors that may be considered when measuring the size of a firm.

Outline four factors that may be considered when measuring the size of a firm.

Highlight four benefits that would accrue to a firm located near other existing firms

Highlight four benefits that would accrue to a firm located near other existing firms

Outline four factors that an entrepreneur should consider before setting up a manufacturing business. (4 marks)

Outline four factors that an entrepreneur should consider before setting up a manufacturing business.

Explain five strategies that a small – scale firm could adopt to expand so as to enjoy economies of scale.

Explain five strategies that a small – scale firm could adopt to expand so as to enjoy economies of scale.

State four reasons that make it necessary for firms to maintain a healthy environment. (4 marks)

Reasons that make it necessary for firms to maintain a healthy environment

State four social responsibilities that a manufacturing firm should have on the community.(4mks)

Social responsibilities that a manufacturing firm should have on the community

Explain five benefits that may be realised by a country as a result of government policy to relocate Industries to rural areas ( 10 marks)

Benefits that may be realised by a country as a result of government policy to relocate Industries to rural areas

Chem Chemi Ltd is a new cement manufacturer. Outline four factors that may encourage this company to be established in Athi River town where other cement manufacturers are located despite the obvious competition. (4 marks)

Highlight four external economies of scale that a firm may get when operating on a large scale.(4 marks)

External economies of scale that a firm may get when operating on a large scale

Explain five advantages of locating firms in different parts of the country.

Answer

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