SECTION A: (40 marks)

1. a) (i) Distinguish between a Memorandum of Association and articles of Association.

        ii) Mention any two contents of a Memorandum of Association.

      b) i) Define the term "price "?

         ii) Mention any three factors that should be considered when determining the price of a product.

      c) i) Differentiate between pre-operating expenses and administrative expenses.

         ii) Give any two examples of pre-operating expenses business.

       d) i) What is an Action plan?

          ii) State any three uses of an Action plan.

       e) Outline any four business ethics an entrepreneur should practice towards employees.

        f) i) Distinguish between fixed capital and working capital.

          ii) Mention any two ways in which a business can increase cash flows.

       g) i) Define the term "advertising ".

          ii) Give any three factors which should be considered when choosing a medium of advertising.

      h) i) Differentiate between indemnity and subrogation as used in insurance.

         ii) Give any two examples of insurable risks faced by a business.

       j) i) What is meant by product positioning?

         ii) State any three factors an entrepreneur should consider when developing a product.

      f) i) Distinguish between saving and investment.

        ii) Suggest any two ways of promoting savings in your country.

 

SECTION B: (60 marks)

2. a) Outline the factors that an entrepreneur should consider when choosing packaging material for a product.

   b) Explain the importance of packaging products.

3. a) Explain the benefits of a business plan to an entrepreneur.

    b) What problem do entrepreneurs face when preparing a business plan?

4. a) Describe the various types of business taxes in your country.

   b) Why is it important for the government to tax businesses?

5. a) Explain the factors that should be considered when conducting market assessment for a product.

   b) Outline the benefits of conducting market assessment for a product.

6. a) Outline the advantages and disadvantages of selling goods on credit.

   b) Describe various ways of managing credit sales in a business.