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i) Economic environment (favourable): Economic situations that increase consumers’ purchasing power eg low price levels, high consumers income, low interest rates, low levels of inflation and taxes.
ii) Demographic environment: A high population creates a wider market and hence more sales & profits.
iii) Advancement in technology: High levels of know how and efficient use of tools/equipments lead to better quality goods/services and reduced cost of production.
iv) Legal environment (favourable): Laws and policies made by the government should be favourable eg. Taxation, legislation, ease in licensing etc.
v) Favourable political environment: Political stability leads to peace there by creating a conducive environment for business to thrive.
vi) Favourable cultural environment where customs values and beliefs of the society are for the product, this boosts sales and the business thrive.
vii) Fair competition: This will enable the business cope with the competitors and remain in operation.
(vii)Physical environment (ideal or favourable): Relief, climate, infrastructure, electricity etc when ideal enables the business operate efficiently.
Kavungya answered the question on October 4, 2019 at 07:29
- Gatundu wholesalers have been buying sugar directly from Mumias Sugar Company. Explain five services offered by Gatundu wholesalers to Mumias Sugar Company.(Solved)
Gatundu wholesalers have been buying sugar directly from Mumias Sugar Company. Explain five services offered by Gatundu wholesalers to Mumias Sugar Company.
Date posted: October 4, 2019. Answers (1)
- Peterson started a handware business on 1st Janaury 2010. The following is a summary of his transaction during the month
Invoices issued
2010 Jan 2: Mwiti Traders kshs...(Solved)
Peterson started a handware business on 1st Janaury 2010. The following is a summary of his transaction during the month
Invoices issued
2010 Jan 2: Mwiti Traders kshs 50,000
Jan 5: Mutahi Traders ksh 150,000
Invoices received
2010 Jan 3: Solomon Traders kshs 80,000
4: Kanake Enterprises kshs 160,000
Required:
Record the above details in the appropriate subsidiary books.
Date posted: October 4, 2019. Answers (1)
- Enter the following transactions in the relevant ledger accounts.
2011
July 1: Opening balances cash ksh 24,000, bank kshs 8000 (cr)
3: Paid...(Solved)
Enter the following transactions in the relevant ledger accounts.
2011
July 1: Opening balances cash ksh 24,000, bank kshs 8000 (cr)
3: Paid rent kshs 4,000 in cash
4: Bought goods worth ksh 8,000 and paid by cheque
5: Deposited ksh. 5,000 from the business into the bank
Date posted: October 4, 2019. Answers (1)
- Record the following transaction in a two column cash book.
2012
Jan 1: Started business with capital of sh20,000 cash and sh 50,000 at bank.
...(Solved)
Record the following transaction in a two column cash book.
2012
Jan 1: Started business with capital of sh20,000 cash and sh 50,000 at bank.
2: Bought stock in cash sh 120,000
3: Cash sales sh 5,000
7: Bought stock worth sh 10,000 on credit.
12: Withdrew cash from bank for office use sh.8,000.
15: Paid rent by cheque shs 6000.
20: Received shs 4000 by cheque from a debtor.
Date posted: October 4, 2019. Answers (1)
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Required:
Calculate (i) Capital owned
(ii) Borrowed capital
(iii) Working capital
(iv) Capital employed (Solved)
The following balance sheet relates to Uzuri traders
Required:
Calculate (i) Capital owned
(ii) Borrowed capital
(iii) Working capital
(iv) Capital employed
Date posted: October 4, 2019. Answers (1)
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a.Transport goods from producers to consumers
b.Activities carried out with a view of making profit.
c.A person...(Solved)
Identify the terms given to each of the following statements.
a.Transport goods from producers to consumers
b.Activities carried out with a view of making profit.
c.A person who uses a good or service.
d.Increasing the usefulness of a good or services
Date posted: October 4, 2019. Answers (1)
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Date posted: October 4, 2019. Answers (1)
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Date posted: October 4, 2019. Answers (1)
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Date posted: October 3, 2019. Answers (1)
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Date posted: October 3, 2019. Answers (1)
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Date posted: October 3, 2019. Answers (1)
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The following balances were obtained from the books of sunset traders as at 30th June, 2004
Calculate:
(a) Stock turnover rate.
(b) Return on capital
Date posted: October 3, 2019. Answers (1)
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State the effect of the following transactions on the balance sheet items
Date posted: October 3, 2019. Answers (1)
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Date posted: October 3, 2019. Answers (1)
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Date posted: October 3, 2019. Answers (1)
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Date posted: October 3, 2019. Answers (1)
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Date posted: October 3, 2019. Answers (1)
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State the importance of considering each of the following factors when making choices to satisfy human wants.
a) Scarcity
b) Opportunity cost
Date posted: October 3, 2019. Answers (1)
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Date posted: October 3, 2019. Answers (1)