Principles of investment. Should be secure Liquidity ie ability to be converted into cash Ability to grow over a period of time Should generate income / returns Ability to spread risks over several types of securities.
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Day: December 9, 2020
Give any four reasons why the Kenyan government is actively involved in licencing business activities.
Why the Kenyan government is involved in licencing. Regulate the number of businesses in any one line of activity to control unhealthy competition. Ensure that traders engage in only those business activities for which they have licences. Control illegal businesses Read More …
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Identify four services that can be conveniently paid for using standing orders (bank orders)
Services that can be paid for by standing orders Rent payments Subscriptions Insurance’s Hire purchase payment Loan payments Mortgage repayments
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Mention four of the contents in the articles of association.
Contents of the articles of association Classes and rights of shareholders The issue and transfer of shares Methods of dealing with any alterations on the capital Qualifications, duties and powers of directors Borrowing, dividend and reserve policies Rules regarding preparation Read More …
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Highlight any four ways in which insurance companies make profits.
How insurance companies make profits Investing their funds Differences in claims Forfeited funds by policy holders By taking whatever remains after compensation eg remains of a car.
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Outline any four importances of advertising as a sales promotion method.
Importance of advertising. Informs the prospective customers that a certain product has been placed in the market Help consumers to make a more informed choice on the goods they intend to buy Increases the volume of sales hence realization of Read More …
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Explain any four problems that Kenya would experience from participating in international trade.
Inferior products may be imported. Over dependence Balance of payment problems Loss of cultural values and prestige Moral decay Lack of cultural values and prestige Moral decay Lack of development skills for countries that specialize in production of primary products
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Highlight any four characteristics of money that enables it to serve its purpose efficiently.
Characteristics of money. Portability Homogeneity Divisibility Scarcity Cognizability Durability Acceptability Stability
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Highlight any four problems that a country may experience when it has decentralized its industries.
Problems of decentralization. Spread of industrial pollution Strain / over – utilization of a country’s natural resources Certain special services may not be available in the rural areas Incentive offered by the government to the firm is a burden to Read More …
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Terms as used in insurance
Short notes: Indemnity : A principle of insurance which states that an individual should only be compensated upto the actual monetary loss caused by the event insured against. The maximum one can get is the value of the property insured Read More …
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