Forms of Business Units Questions and Answers

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 of a savings and credit cooperative society (SACCO) – Suggested answers
In the spaces provided below, write the type of partner described by each of the following statements

(i) One who is below 18 years of age – Minor partner
(ii) One who has unlimited liability – General partner
(iii) One who gets involved in the daily running of the business – Active partner
(iv) One who allows his/her name to be used in the business – Nominal/ Quasi partner

Otwoma intends to start a business. Give four reasons why it is advisable for him to start a retail business shop instead of buying shares in a public limited company – Suggested answers
State four circumstances that may lead to the dissolution of a partnership – Suggested answers
State four features of incorporated business units – Suggested answers
List four documents that are required before a public limited company is allowed to operate in the country – Suggested answers
Highlight four ways in which the running of public corporations is ineffective in this country – Suggested answers
You have been charged with a duty of preparing an article of Association for your company; state four items that you will include in your article of Association – Suggested answers
Honey intends to join a consumer Co-operate society; Highlight four benefits she would get by being a member of the society – Suggested answers
State four features of multinational corporation – Suggested answers
State four types of partnership businesses – Suggested answers
Explain five advantages that Melinda could derive by investing in shares of a public limited – Suggested answers
Distinguish between a public corporation and a public ltd company – Suggested answers
Describe the procedure that a shareholder would follow in selling share through the stock exchange. – Suggested answers
Challenges faced by the savings and credit cooperative societies – Suggested answers
The Kenya Government has been privatizing its parastatals to would be investors. Explain any five benefits of the privatization process to the government – Suggested answers
Explain five differences between private limited companies and public limited companies – Suggested answers
Discuss five benefits that the Kenyan government may get by privatizing a state corporation – Suggested answers
Describe five circumstances under which limited liability companies may be liquidated – Suggested answers
Katwaa is a member of Bidii savings and credit Co-operative. (SACCO). What benefits does she enjoy for being a member of the SACCO – Suggested answers