SECTION I

Answer the THREE questions in this section.

1. Janice retired after 15 years of working as a loans officer at a commercial bank and has
decided to become an entrepreneur.
(a) (i) Define the term ‘entrepreneurship’. (2 marks)
This is the process through which individuals identify opportunities, allocate resources
and create value through business ownership
(ii) State FOUR reasons why a person may start a business. (4 marks)
The desire for financial independence, self-fulfilment, to increase their income, Self-
actualization
(b) Identify FOUR stakeholders that could be involved in Janice’s business. (4 marks)
NB/ stakeholders are anyone who is affected by the operations of the business.
Ans- Suppliers, Consumers, Employees, Government.
Describe TWO types of services Janice may be able to offer given her banking experience.
(4marks)
She may be able to help people with loan application by prepping you to get ready to
apply for a loan
She may be able to do freelance auditing.

(d) Explain TWO ways in which Janice’s business can benefit the community. (6 marks)
Employment- Janice has now started her own business therefore she can now offer
employment to people in her community she would be helping the community because
some people may be unemployed and she can help by reducing the unemployment rate
in her community
Janice can now offer a wide range of resources for her community on a whole- normally
people will go to the bank for financial advice. Now that Janice has started her own
business, she has options to person who might want to look for loan or financial advice
so now she offers more alternatives to where the people in the community want to go.
2. (a) Define the term ‘conflict resolution’. (2 marks)
Conflict resolution is the process used by management to arrive at a suitable position in
which conflict is reduced

(b) Describe how the following factors can be sources of conflict at the workplace:

(i) Poor communication (2 marks)

Poor communication is a source of conflict because there is a breakdown of
communication because based on what was given the feedback might not be
adequate when a messaged was sent. For example, a boss might be talking to his
employee and the employee misinterpreted what the boss said or the boss delivered
the message in a certain way that the employee did not like which would cause the
employee to lash out. Therefore, it would be turned into a conflict between the boss
and the employee.

(ii) Underperformance (2 marks)

lazy and underperforming employees can ruin the work environment and be
the cause of unnecessary stress resulting in conflicts. Employees should
ideally be the most important assets of the company but if a company does
not manage its underperforming employees, they can prove to be serious
liabilities.

(iii) Limited resources (2 marks)

too often, employees feel they have to compete for available resources in
order to do their job. In a resource scarce environment, this causes conflicts –
despite awareness of how scarce resources may be. Personality Clashes: all
work environments are made up of differing personalities.
(c) (i) Distinguish between ‘work to rule’ and ‘go slow’. (4 marks)

Work to rule is when employees report to work but only complete tasks that
are in their job description. They refuse to apply any extra effort to boost
productivity while go slow is when employees report to work but deliberately
discharge their duties at an extremely slow pace and undermine output.

(ii) State TWO benefits of mediation as a means of conflict resolution. (2 marks)

1. Neutral third party- there is nothing to gain, there aren’t any biases
between the parties.
2. Mediation is voluntary- Parties are free to choose if they want to attend
mediation.
(d) Explain ONE way in which management can use EACH of the following guidelines to
enhance relationships between management and staff:

(i) Open door policy (3 marks)

Open door policy encourages effective communication between the employee
and the management. The employees do not feel left out at the workplace as
they know there is someone to support them always at the time of crisis. This
way they get attached to the management and are always loyal towards the
organization.

(ii) Annual retreat (3 marks)

Encouraging Collaboration- Your retreat is an invaluable opportunity for every
member of the organization to get out of the office and interact with each other in a
social environment. As the saying goes, two people working together is teamwork while
two teams working together is collaboration. Through a retreat, that collaboration
across departments is more easily possible.
3. (a) Define EACH of the following terms and give ONE example of each:

(i) Capital (3 marks)

Capital are the man-made resources that are used in production
E.g., Building, machinery, vehicle

(ii) Collateral (3 marks)

Collateral are assets used to secure a loan or secure some form of financing.
E.g., House and land

(b) Outline THREE advantages of borrowing money from a credit union as opposed to a
bank. (6 marks)
1. Lower interest rates- when you have a lower interest rate in credit union as opposed
to commercial banks interest rates on the loan tends to be lower, so you must repay less
than if you were borrowing from a commercial bank.
2. Transactional fees tend to be lower at credit union than at a commercial bank
3. Offerings- Credit union tend to be versatile they would offer loans at airways that the
banks would not offer loans in areas like agriculture and unique small business while
banks will not take the risk onto small business owners
 (c) Identify TWO elements of a business plan. (2 marks)
Executive summary and Marketing Plan.

(d) Explain ONE way in which a business plan is important to EACH of the
following stakeholders:

(i) Business owners (3 marks)

The business plan can use by the owner to monitor and evaluate the
progress of their business or helps entrepreneurs focus on the specific
steps necessary for them to make business ideas succeed, but it also
helps them to achieve short-term and long-term objectives.

(ii) Potential investors (3 marks)

A well-written plan not only helps investors understand your business and your
vision, but also shows them that you've taken the time to carefully assess and
think through the issues your business will face.

Total 20 marks
 SECTION II
Answer EITHER Question 4 OR Question 5. Do NOT answer both.

4. (a) List THREE examples of EACH of the following:

(i) Market structures (3 marks)

Monopoly, monopolistic competition, and perfect competition

(ii) Methods of retailing (3 marks)

Shops, Department stores and Mail order.

(b) Differentiate between ‘capital-intensive production’ and ‘labour-intensive

production’. (4 marks)

Capital intensive refers to the amount of capital invested to increase the

revenue and profit whereas labour intensive refers to amount spent on
training to labour so as to increase the efficiency of labour which will
ultimately result in the increased production.
(c) Outline TWO purposes of branding. (4 marks)
Identification of the product
Ownership of the product-

(d) Explain TWO ways in which packaging helps in the marketing of goods.
Instant brand recognition- With hundreds of products on grocery shelves,
customers search for the familiar colours and packaging of their favourite
brands

Easy distribution- The shape of the package can allow the business to create
bulk portion sizes to be used in distribution and packaging.

(6 marks)

Total 20 marks
5. (a) List THREE sources from which EACH of the following may be obtained:
(i) Short-term financing (3 marks)
Overdraft, Loan from family and short-term unsecured loan

(iii) Long-term financing (3 marks)

Stock market floatation, Debentures, and Issue new shares

(b) Differentiate between ‘savings and ‘investment’. (4 marks)

Savings is when people put aside money in a bank or building society savings
account. While investment is an asset acquired or invested in to build wealth
and save money from the hard-earned income
(c) Outline TWO ways in which the Internet has influenced investment activities.
(4 marks)

The internet allows you to be empowered to do your own investing

The internet allows you to find more information on the companies, so it is
readily available to you.

(d) Explain TWO ways in which budgeting helps in managing personal finances.
(6 marks)

Income- Income received can vary considerably over time for individuals.
Although some people earn a regular income from employment or pensions,
others do not.

Savings- Extending a budget into the future is helpful. It means you can
forecast how much money you will need to save to pay fixed budgets items.

Total 20 marks
 SECTION III
Answer EITHER Question 6 OR Question 7. Do NOT answer both.

6. (a) (i) Define the term ‘consumer protection’ (2 marks)

Laws to control marketing activities to ensure they are fair and accurate

(iii) Identify TWO social services provided by governments.

Healthcare and national insurance

(2 marks)
(b) Describe ONE way in which governments carry out the following
responsibilities:

(i) Protection of the environment. (2 marks)

Green technology – The government carry out green technology by having
sustainability as their aim which involves finding solutions to meet current
needs whilst ensuring that future needs can be met.

(ii) Security of the state (2 marks)

National Defence- The national defence helps the state to defend

against territorial incursion.

(iv) Maintenance of a safe climate for investors (2 marks)

Stability and transparency- The stability and transparency of the

government itself are crucial to maintaining a safe environment for
investors it is necessary to attract investors, who can be confident the
government is in control and will act with integrity to uphold the rule
of law
(c) Outline TWO ways in which governments’ decision to provide laptops to primary school
children can positively impact their education. (4 marks)
This means you are preparing the children for the future, and it gives them an
advantage to acquire skills for future job prospects

It allows students to have access to a wide variety of information to study and get high
grades or to increase their knowledge.

(d) Explain how governments use EACH of the following measures to regulate business
activities:

(i) Taxation (3 marks)

Taxation can be used to increase or decrease the overall cost of doing
business

(ii) Safety and health (3 marks)

The government uses safety and health to ensure that employers provide safe
and sanitary work environments through frequent inspections and a grading
scale

Total 20 marks
7. (a) Define EACH of the following terms:
(i) Standard of living (2 marks)
The standard of living is the level of economic well-being of an individual or population.
It considers income levels and the quality and quantity of goods and services consumed.

(iv) National income (2 marks)

The monetary value of the economic activities that occurs in an economy over a span of
time normally 1 year
(b) Describe ONE way in which EACH of the following indicators affects an individual’s
standard of living:
(i) Quality and availability of employment (2 marks)

some of the country's poor, urban areas struggle with a lack of quality
employment opportunities because standard of living is very low for some
segments of the population.

(ii) Quality and affordable housing (2 marks)

people from low-income households are more likely to live in poorer quality
housing, which can negatively impact their health. For instance, if a person
lives in an overcrowded place, they may be at an increased risk of poorer
mental health, food insecurity, and infectious diseases .

(iii) Access to affordable and quality health care (2 marks)

the healthcare industry could dramatically improve healthcare quality by

instituting greater transparency and requiring practitioners to use patient
centred EHRs that are readily accessible to all care providers and the
patients themselves.

(c) Describe TWO approaches used to measure national income. (4 marks)

Income method- Calculating all the incomes that came about within the economy in a
given time usually in a year.
Expenditure method- Add up all the expenditure that were outlaid within the economy
for a certain period
(d) Explain how EACH of the following indicators can be used to evaluate the quality of life
of citizens in your country:

(i) Right to privacy (3 marks)

The right to privacy often must be balanced against the state's compelling interests,
including the promotion of public safety and improving the quality of life. Seat-belt laws
and motorcycle helmet requirements are examples of such laws.

(ii) Right to education (3 marks)

It teaches the individuals kindness; it inculcates the feelings of love patience
and kindness in one's heart. It teaches us of how we should treat our fellows.
improve the quality of one's life. It is essential for everyone to acquire
education and live its true essence from cradle to grave.

Total 20 marks
END OF TEST
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