KCSE Business Studies Topical Questions and Answers - ATIKA SCHOOL

Advantages of systematic arrangement of goods in a warehouse

1/4/2022

Advantages of systematic arrangement of goods in a warehouse.

Minimized breakage of goods.
Pilferage of goods would be reduced.
Space available would be properly utilized.
Easy to do stock taking.
Contamination of goods would be reduced.
Accessibility would be enhanced.

Circumstances when a manufacturer may prefer selling directly to consumers

1/4/2022

Circumstances when a manufacturer may prefer selling directly to consumers.

When goods are perishable.
When the manufacturer is financially strong to open up retail outlet.
If the manufacturer wishes to take charge of marketing of the products.
When the manufacturer wishes to have direct contact with the consumers.
When the market for the product is limited.
When there is inefficient infrastructure.

Discuss five advantages of a bonded warehouse

8/11/2021

Discuss five advantages of a bonded warehouse (10mks)

Five advantages of a bonded warehouse.

Storage helps an importer to look for market.
Helps to protect goods safely against pilferage or spoilage by bad weather.
Gives a government a chance to scrutinize the goods.
It enables a government to collect taxes.
Records kept in a bonded warehouse is a source of statistics on a country’s imports.
Enable a trader to look for a market while goods are in bond.
Gives an import chance to prepare the goods before channeling them to the market.
If an importer sells goods while at bond, the burden of paying duty passes to buyer.

State four consequences of eliminating wholesalers from the chain of distribution

5/11/2021

State four consequences of eliminating wholesalers from the chain of distribution. (4mks)

Four consequences of eliminating wholesalers from the chain of distribution.

Manufactures may be forced to open up additional distribution outlets, which might increase their costs thereby lowering their profits.
The removal of wholesalers will in effect decrease the cost of distribution, hence higher profits to the producers.
Producers will not specialize since they will also be carrying out the distribution function, hence they will not enjoy the economic advantage of specialization.
Prices may be unstable in their absence since they help in stabilizing prices by storing large quantities of the produce.
Producers may need to establish additional storage facilities, which were previously provided by wholesalers, hence requiring them to raise more capital.
Retailers will be forced to buy in bulk thereby requiring them to have more capital, which may not be available.
Retailers may be forced to pay cash thereby requiring them to increase their capital base.
Manufacturers may be forced to break bulk, since the retailers may not be able to buy in large quantities.
Retailer may be forced to establish warehouse, which would require additional investment.

Explain five reasons why a manufacturer should have his own warehouse

24/9/2021

Reasons for manufacturers warehouse

Owner may design the warehouse according to his specification
No procedure in receiving and issuing goods
Has full control of the warehouse
Enable special handling of goods
No cost of hiring

Explain five reasons why a manufacturer should have his own warehouse

Highlight four features of abounded warehouse.

18/9/2021

Give any four features of abounded warehouse

Features of abounded warehouse include:

mostly located at points of entry into a country like the ports
guarantees payment of customs duty to customs authority
very spacious to accommodate even bulky goods like motor vehicles
must issue release warrants to owners of goods for customs clearance
works hand in hand with customs officials for inspection of goods
Goods can be re-exported while in the bonded warehouse
Storage charges are made on all goods stored in the warehouse
Goods can be sold while still under bond
Goods can be inspected or prepared for sale that is they can be repacked, branded and blended while in the warehouse.
Goods are released only on the production of a release warrant.

Highlight four features of abounded warehouse

State four benefits of a bonded warehouse to the government.

21/12/2020

State four benefits of a bonded warehouse to the government.

Benefits of a bonded warehouse to the government include:

A source of data for planning purposes.
Enable the government to control entry of harmful goods.
Enable the government to inspect goods while still under bond.
Enables the government to regulate the quantity of imports.
The government uses it to check illegal goods entering the country.
A source of revenue from customs duty.
Enable verification of documents on transit.
Enable checking of the quality of goods.

State four benefits of a bonded warehouse to the government.

Outline four conditions under which a warehouse may be considered to be operating efficiently.

20/12/2020

Outline four conditions under which a warehouse may be considered to be operating efficiently.

Conditions under which a warehouse may be considered to be operating efficiently include:

The warehouse should be conveniently located.
The warehouse should be managed by qualified personnel.
Operational procedures and guidelines should be in place.
Security systems should be in place.
Should have specialized buildings and equipment.
Should have good communication network.
Should ensure proper record keeping.

Outline four conditions under which a warehouse may be considered to be operating efficiently.

Name the types of warehouses associated with each of the statements given below:

15/12/2020

Name the types of warehouses associated with each of the statements given below:

Name the types of warehouses associated with each of the statements given below:

Types of warehouses referred to are:

Bonded warehouse
Public warehouse
Wholesalers warehouse
Manufacturers warehouse

State four ways in which a warehouse is of importance to a manufacturer. (4 marks)

13/12/2020

State four ways in which a warehouse is of importance to a manufacturer.

Ways in which a warehouse is of importance to a manufacturer.

Goods can be produced in advance to meet unexpected customer demand.
Production done steadily without rush.
Production can be continuous if need arises.
Manufacturer can offer steady supply of seasonal goods.
Goods are protected from physical damage.
Manufacturers can store raw materials.
Goods are protected from pilferage.
Goods can be prepared from final scale by branding. grading. blending etc.
Some goods mature/improve in quality whole still in warehouse.

State four ways in which a warehouse is of importance to a manufacturer. (4 marks)

Explain five features that you would consider in establishing a warehouse for imported goods. (10mks)

12/12/2020

Explain five features that you would consider in establishing a warehouse for imported goods.

Features that you would consider in establishing a warehouse for imported goods.

Handling facilities/equipments- the warehouse should be equipped with modern/necessary/appropriate equipment for ease of operation.
Security/safely for protecting gods from theft/damage by weather /to ensure safely of personnel.
Building design/structures-the design has to conform to international/acceptable standards to handle imported goods.
Management personnel – these should be properly trained/have relevant skills/enough to handle the goods.
Proximity/nearness to point of entry-this included ports, border points for ease of clearance.
Existence of basic infrastructure such as good roads/power communication to enhance smooth operations of the warehouse.
Compliance to legal requirement/government policy. All relevant legal requirements have to be met to operate smoothly/avoid conflict with law enforcers
Storage facilitates/equipments-appropriate for the type of goods to be handled/involved
Documentation/recording system for proper stock control/to monitor inflow/outflow of goods.

Explain five features that you would consider in establishing a warehouse for imported goods. (10mks)

Explain five benefits that could accrue to a customer who buys goods from a departmental store. (10mks)

12/12/2020

Explain five benefits that could accrue to a customer who buys goods from a departmental store.

Benefits that could accrue to a customer who buys goods from a departmental store.

Access to specialized goods from relevant department/shops/since each shop stocks/sells particular types of goods
Personal attention to customers as they have access to relevant staff
Access to auxiliary/after sake services which may be readily available within the store.
One can save time by shopping under one roof
Prices of goods are relatively low enabling a customer to save/buying
One can access variety of goods under one roof.
Use of debit/credit /credit cards relieving customers the bother of carrying cash/purchase goods with cash.
Access to a new products/ information which he/she may not be aware

Explain five benefits that could accrue to a customer who buys goods from a departmental store. (10mks)

Outline four benefits to abusiness that uses its own warehouse. (4mks)

11/12/2020

Outline four benefits to abusiness that uses its own warehouse.

Benefits to a business for using its own warehouse include

The business maintains a continuous supply of goods
Customers are retained as they are sure of getting the goods on demand
Goods are safe from theft
Savings increases for not renting storage facilities
Goods can be processed in the warehouse
Can be tailored to suit ones specifications
Can be conveniently located
More secure front damage
Space is guaranteed

Outline four benefits to abusiness that uses its own warehouse. (4mks)

Explain five ways in which the consumer may benefit from warehousing. (10 marks)

11/12/2020

Ways in which the consumer may benefit from warehousing

Ways in which the consumer may benefit from warehousing.

It helps maintain / improve quality of goods - this is mainly for goods that mature over time such as wine /for them to get goods when still fresh.
It ensures constant supply of goods - facilitates release of goods in the market regularly which minimize shortages/so as to get goods as/ when needed.
Preparation of goods for sale - goods are sorted, graded, packaged, blended, branded.
Availability of seasonally produced goods - consumers can access goods that are off season from the warehouse e.g. farm produce.
Stability in prices of goods - ensures constant supply of goods leading to stable prices throughout the year/due to minimal shortages.
Creates time utility - ensures that the consumer accesses and uses goods at appropriate time.
It enables the breaking of bulk - where he/she is able to buy goods in convenient /affordable quantities.
Availability of seasonally demanded goods. That are produced but only come to use at certain times/such as gumboots/umbrellas.
Availing a variety/different goods enabling him/her have a wider choice/satisfy different wants/tastes
Providing security - to avoid loss due to theft/pilferage.

ways in which the consumer may benefit from warehousing

Outline four benefits of a bonded warehouse to the importer.

31/5/2020

Answer

Benefits of a bonded warehouse to the importer include:

The importer can sell the goods before paying duty hence transferring the burden to the buyer.
Goods can be prepared for final sale while still in bond.
Gives the ¡importer time to arrange for payment of duty.
The importer can look for market
Some goods like wine, can improve in quality and value while still in bond.
Security is provided for the goods while they are in bond.

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