Month: December 2020

Methods of controlling volume of imports Tariffs – Involves levying import duty on goods that are entering a country Quotas – Is a quantitative restriction permitting only a given number of units of a commodity to be imported during a Read More …

HIRE PURCHASE :- A  system where the buyer agrees to pay for the commodity in installment. The buyer obtains the possession of the article on the down payment (deposit) but the title of ownership remains with the seller until the Read More …

The company knows value of its shares in the market The company may sell more shares since its is known to the public. The company raises more capital by floating more shares in the stock exchange The company uses more Read More …

Losses caused by the insurers carelessness i.e not accidental Incase the insured has no insurable interest in the property Incase of accident / loss is not directly related to the risk insured Incase the insured has not paid premiums as Read More …

Benefits of privatization Kenyans enjoy improved products and services due to research carried out by privatised firms The spirit of competition enhances good management hence efficiency Consumers enjoy fair prices of products and services due  to minimal wastes if any. Read More …

Price mechanism- The interaction of demand and supply in the market .  Government policy – Through taxation subsidies and price controls   Auction – Prices suggested by prospective buyers

C.W.O –  Cash with order – The buyer  must  pay for the goods when he makes an order. C.O.D –     Cash on Delivery –  Payment is effected when goods are delivered to the buyer. F.O.B – Free on board . Read More …

Higher production leading to low cost of goods per unit thus higher profits Large market due to lower prices and no competition Reduced competition increases sales Advantages of specialisation Better management as a result of combined pool of specialist / Read More …

Incase of the  essential goods that must be consumed Ostentatious goods that must be consumed Luxurious goods like cars Inferior goods i.e goods for the poor Geffen goods e.g bread

Immediate feedback Leaves no room for alteration /misinterpretation of the message Creates a personal touch or healthy relationship between the interviewer and the interviewee. Saves time since information is passed on and a response to it received instantly enabling a Read More …