BUSINESS ENVIRONMENT APRIL 2022 PAST PAPER

WEDNESDAY: 6 April 2022. Afternoon paper.                                                                      Time Allowed: 3 hours.

Answer any FIVE questions. ALL questions carry equal marks. Do NOT write anything on this paper.

QUESTION ONE

1.         List five benefits of customer segmentation.                                                                                                                         (5 marks)

2.        Explain the meaning of the term “monetary policy’.                                                                                             (2 marks)

Describe three instruments of monetary policy used to control and regulate money supply by the Central

Bank of your country.                                                                                                                                          (6 marks)

3.         Enumerate three features of a business environment.                                                                                                            (3 marks)

4.         Highlight four marketing philosophies that guide organisations in conducting their marketing activities.                 (4 marks)

(Total: 20 marks)

 

QUESTION TWO

1.          Describe three characteristics of international trade.                                                                                                              (6 marks)

2.          Explain the following types of budgets:

Deficit.                                                                                                                                                                  (2 marks)

Balanced.                                                                                                                                                              (2 marks)

Surplus.                                                                                                                                                                (2 marks)

3.          Identify four reasons why the high levels of public borrowing is an area of concern in any country.                                  (4 marks)

4.          Summarise four characteristics of a limited liability company.                                                                                              (4 marks)

(Total: 20 marks)

 

QUESTION THREE

1.          Enumerate six factors a credit analyst could consider in analysing the political-legal environment of an exporter during credit assessment.                                                                                                                                                      (6 marks)

2.           In the context of international trade, explain the following terms:

Import trade.                                                                                                                                                         (2 marks)

Export trade.                                                                                                                                                         (2 marks)

Entrepot trade.                                                                                                                                                      (2 marks)

3.        In the context of business analysis:

Explain the meaning of the term “culture”.                                                                                                           (2 marks)

Analyse three cultural dimensions that directly affect business.                                                                           (6 marks)

(Total: 20 marks)

 

QUESTION FOUR

1.         Explain the term “optimum firm”.                                                                                                                        (2 marks)

Suggest four conditions necessary for a firm to operate at optimum level.                                                          (4 marks)

2.         Identify four Millennium Development Goals (MDGs).                                                                                                     (4 marks)

3.         Analyse three reasons why it is important for a company to undertake stakeholders’ analysis.                                            (6 marks)

4.         List four factors affecting the price elasticity of demand.                                                                                                     (4 marks)

(Total: 20 marks)

 

QUESTION FIVE

1.          Explain the term “circular flow of income”.                                                                                                         (2 marks)

Summarise six assumptions of circular flow of income model.                                                                           (6 marks)

2.         Identify six features of underdeveloped economies.                                                                                                             (6 marks)

3.          Discuss three roles of marketing to a business.                                                                                                                    (6 marks)

(Total: 20 marks)

 

QUESTION SIX

1.          Describe the three stages of a product life cycle.                                                                                                                  (6 marks)

2.         Explain the meaning of the following terms:

Environmental scanning.                                                                                                                                      (2 marks)

Perfectly competitive market.                                                                                                                               (2 marks)

Opportunity cost.                                                                                                                                                 (2 marks)

3.        Identify four roles of government in an economy.                                                                                                               (4 marks)

4.        Describe four forms of foreign capital that your country could attract for development.                                                      (4 marks)

(Total: 20 marks)

 

QUESTION SEVEN

1.          Differentiate between the following terms:

“Run-away inflation” and “hyper-away inflation”.                                                                                               (4 marks)

“Actual growth’ and “potential growth”.                                                                                                              (4 marks)

2.         Identify five reasons why the concept of price elasticity of demand is important in business decision making. (5 marks)

3.         Assess four types of demographic changes that could affect the economy.                                                                         (4 marks)

4.         List three trade restrictions commonly imposed by countries to protect their markets.                                                         (3 marks)

(Total: 20 marks)

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