Author: KNEC notes and Past Papers

Competition – There had been steady rise in the level of competition from commercial banks which have encroached into the traditional role of the savings and credit co-operatives. Many micro-finance institutions have also joined the field to provide the same Read More …

Shareholders contact a broker/agents notifying of intended sale Share holders surrender the original share certificate to the broker/agent Share holder sign transfer form Shareholder give the price he expects for the shares The broker/agents verifies ownership of the share/ownership is Read More …

Public Corporation Public Corporation Ltd i)Initial  capital usually provided  by the  government ii)Enacted  through legislation  by  an act  of parliament iii)Managed  by board  of  directors  appointed by  the government iv)Not profit  geared v)Profit  paid as divided  to government i)Initial capital Read More …

Has limited liability/shareholders debts do not go beyond their contribution Separate legal entity/firm and share holders act as different entities Perpetual succession-death of a member does not lead to dissolution Earn dividends/shareholders earn dividends when the firm makes profits Free Read More …

Permanent Temporary/joint venture General partnership (unlimited) Limited partnership Trading partnerships

They train local people so as to create the necessary man power in the subsidiaries They dominate international market because of their great influences They assist developing countries financially They home a guest influence in international trade They posses a Read More …

She will earn profits She will get better quality goods She will earn interest on capital invested She will enjoy credit facilities She will buy goods on fair prices She will be assured of protection against malpractices

The rights of each type of share holders eg. Voting rights Methods of calling meetings Rules governing elections of officials in the company Rules regarding preparation and auditing of accounts Powers, duties and rights of the directors

Too much political interference Inadequate capital Poor management skills Embezzlement of public funds

Memorandum of Association Articles of association Declaration Certificate of incorporation Prospectus Trading certificate