Forms of Business Units Questions and Answers

  1. State four requirements necessary to secure a loan from the SACCO’sSuggested answers
  2. Give four hitches faced by the government of Kenya in the endeavor to privatize state firmsSuggested answers
  3. Outline five benefits of becoming a member of a savings and credit cooperative society (SACCO)Suggested answers
  4. 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

  1. 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 companySuggested answers
  2. State four circumstances that may lead to the dissolution of a partnershipSuggested answers
  3. State four features of incorporated business unitsSuggested answers
  4. List four documents that are required before a public limited company is allowed to operate in the countrySuggested answers
  5. Highlight four ways in which the running of public corporations is ineffective in this countrySuggested answers
  6. 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 AssociationSuggested answers
  7. Honey intends to join a consumer Co-operate society; Highlight four benefits she would get by being a member of the societySuggested answers
  8. State four features of multinational corporationSuggested answers
  9. State four types of partnership businessesSuggested answers
  10. Explain five advantages that Melinda could derive by investing in shares of a public limitedSuggested answers
  11. Distinguish between a public corporation and a public ltd companySuggested answers
  12. Describe the procedure that a shareholder would follow in selling share through the stock exchange.Suggested answers
  13. Challenges faced by the savings and credit cooperative societiesSuggested answers
  14. The Kenya Government has been privatizing its parastatals to would be investors. Explain any five benefits of the privatization process to the governmentSuggested answers
  15. Explain five differences between private limited companies and public limited companiesSuggested answers
  16. Discuss five benefits that the Kenyan government may get by privatizing a state corporationSuggested answers
  17. Describe five circumstances under which limited liability companies may be liquidatedSuggested answers
  18. Katwaa is a member of Bidii savings and credit Co-operative. (SACCO). What benefits does she enjoy for being a member of the SACCOSuggested answers
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