EP READING ASSIGNMENT 2

Q1 What is technology and it's uses in business?

 What is Technology?
Definition 1: Is the creation, usage and knowledge of tools, techniques, crafts,
systems, or methods of organization, to solve a problem or serve some purpose or
end.
Definition 2: The branch of knowledge that deals with the creation and use of
technical means and their interrelation with life, society, and the environment,
drawing upon such subjects as industrial arts, engineering, applied science, and
pure science.
Definition 3: Technology is the application of scientific knowledge to make
different operations easier and more convenient.
 How do businesses use technology?
Businesses use technology in a variety of ways, including:
i. Payroll: With computer systems, specialized software and scheduled payroll
programs, a business uses technology to transfer payment to employees and
contractors during each pay period. Some of these processes are entirely
automatic.

ii. Hiring: With the internet, businesses can access job forums to gain talent
from around the world. Networking and computer systems give managers
access to software that creates flyers, job descriptions and scheduling tools
for finding talent.

iii. Inventory management: Data storage systems allow businesses to create

elaborate spreadsheets to record and locate inventory. These software
programs may have an active classification system that informs employees if
certain inventory is present in a warehouse or on transit.

iv. Task allocation: Both offline and online software systems can help
managers allocate work to employees. They can assign tasks virtually
through custom websites and use internet chat rooms to discuss objectives.
 v. Communication: Communication software allows businesses to discuss
projects and plans with employees, even remotely. Some systems even have
optimization options for businesses that have exclusively remote staff.

vi. Data storage: Data storage systems allow companies to file records,
financial statements and company data all in a secure database that
employees can access from almost anywhere. For production companies, a
data storage system can help managers track orders, manage stock and
oversee general production.

vii. Security: Security software helps keep electronic content safe, preventing
unauthorized users and inputs. It can also help employees remain compliant
with safety standards in the company.

Q2 Forms of business concerns/business ownership e.g. partnerships, cooperatives

e.t.c
The Sole proprietorship
Many small businesses in Kenya start as sole proprietorships. If an entrepreneur
starts a business on their own without partners or co-owners, he/she will be the sole
proprietor also known as the sole trader.

Partnership
A partnership is an association of two or more persons who come together to carry
on business with a view of making profit. In Kenya, the maximum no. of members
is 20. Many successful small businesses start as partnerships. Although it is
possible to establish a valid partnership without a formal agreement, it is advisable
to sign an agreement first. The agreement will state:
• The effective date of your partnership.
• The business name of your partnership. This name is acquired in the same
way as that of a sole proprietorship.
• The contributions of capital by each partner
• How you will share the business profits and losses
• How you will share authority and work in the business and how you will be
remunerated.
• How you will handle disputes
• How a partner may withdraw from the partnership
• How you would share out assets and liabilities in the event of dissolution.

Limited Liability Company

A Limited company is a legal entity, with share capital, that can be established by
one or more individuals or other legal entities. It is the most complicated of all the
three forms of business ownership. Its main feature is that it is recognized, by law,
as existing quite separately from its owners.The limited company exists as the sole
owner of its assets and liabilities.

Corporation
A corporation (sometimes called a regular or C-corporation) differs from a sole
proprietorship and a partnership because it’s a legal entity that is entirely separate
from the parties who own it. It can enter into binding contracts, buy and sell
property, sue and be sued, be held responsible for its actions, and be taxed. Once
businesses reach any substantial size, it is advantageous to organize as a
corporation so that its owners can limit their liability. Corporations, then, tend to be
far larger, on average, than businesses using other forms of ownership. Most large
well-known businesses are corporations, but so are many of the smaller firms with
which likely you do business.