UNIVERSITY EXAMINATIONS: 2021/2022
EXAMINATION FOR THE DIPLOMA IN BUSINESS INFORMATION
TECHNOLOGY
DBIT 307: BUSINESS MANAGEMENT
FULLTIME/ PARTTIME
DATE: DECEMBER, 2021 TIME: 2 HOURS
INSTRUCTIONS: Answer question one and any other two Questions.
QUESTION ONE
a) Discuss factors that may influence the growth of a business unit. (12Marks)
b) Outline four features of a sole proprietorship form of business organization
(4Marks)
c) State four advantages of a partnership over a sole –proprietorship (4Marks)
QUESTION TWO
a) A group of businessmen from Sun City have formed a cartel. What reasons could have
led them to take such an action (10Marks)
b) State five advantages of sole proprietorship form of business (5Marks)
QUESTION THREE
a) Explain four ways in which the insurance industry contributes to the development of
Kenya’s economy. (10Marks)
b) Explain five sources of short term finances available to a business organization.
(5Marks)
QUESTION FOUR
a) Abdullah, a Jua kali manufacturer based in Kariobangi Nairobi , exhibited his goods in a
local trade shows that was held in KICC last year. However, his sales did not increase
significantly thereafter. Outline five reasons that may have led to lack of significant sales
increase.
(10Marks)
b) Outline the advantages of after sales services as a method of sales promotion to a
customer.
(5Marks)
