Author: KNEC notes and Past Papers

Legal procedure is followed during formation They are separate legal entities from the owners who formed it Shareholders have limited liability They have perpetual succession They can raise large amount of capital hence large in size Failure of the business Read More …

If the partners mutually agree/decide to dissolve it Incase of death/insanity/bankruptcy of a partner Incase the court orders so Incase completion of he intended purpose If the business engages in unlawful practices Incase of retirement /admission of a new partner Read More …

Will have full control of the business. No sharing of profits. Easy decision making. There are few legal formalities. Top secrecy. Flexible.

Will get advice an area of finances Earn interest on investment Receive loans at how interest rates Receive credit facilities Assisted in times of problems (Benorelent) Source of savings

Lack of political goodwill Corruption /insensitive public service Fear of transferring ownership into foreign lands Need to keep investment opportunities

One has to be a member Guarantee from fellow members Members salary Members saving /shares

State four requirements necessary to secure a loan from the SACCO’s – Suggested answers Give four hitches faced by the government of Kenya in the endeavor to privatize state firms – Suggested answers Outline five benefits of becoming a member Read More …