The topic entails:
- Reasons to why the government involves in business and various ways through which Merits and demerits of government in business activities
Discussion of meaning of consumer protection, the rationale for it and the various methods by which consumers may be protected.
1. State four reasons why the government issues licences to businesses
- To obtain revenue /source of revenue Regulating the number of businesses in any one line of action.
-Ensuring that traders engage only in those business activity for which they have a license.
-Controlling illegal business in the country
-Ensuring that those who engage in professional activities meet the requirement.
-Control the type of goods that should enter or leave the country.
2. State any four limitations of consumer-initiated methods in combating exploitation.
-Difficulties to register members into association
-Insufficient awareness by consumer
-Insufficient funds
-competition
3. Outline four ways in which the government creates enabling environment for business
- Offering several incentives to encourage investments like tax holiday subsidies
- Provision of credit through government institutions
- Creating a pool of qualified manpower
- Provision of security
- Ensuring there is political stability and good will
- Provision of infrastructure to reduce cost of provision
- Liberalization of marketing
5. Local leaders would like to see more business enterprises established within Ugenya. Outline four measures the government can take to encourage investments in this region
-Improve infrastructure especially roads
-Provide security -Provide incentives e.g. tax holiday
-Improve access to finance/provide
-Reduce bureaucratic requirement for licensing
-Provide social amenities e.g. schools, hospitals, market skills
7. State four reasons why some county governments in Kenya find it difficult to provide public utility
- Inadequate finances
-Poor management skills from the officials in charge
-Political interference and wrangles
-Poor garbage collection and disposal
-Embezzlement of funds
- Corruption
8. List four types of complaints that a consumer organization may receive from consumer
- Poor quality goods and services/ damaged goods
- Incorrect weights and measures
- Poor hygienic conditions Contrabands items/ prohibited goods
-Hoarding Misleading advertisements
-Environmental pollution
-Harmful products
-Price overcharge
10. State four ways in which the government is involved in business activities
- Regulation
-Training
-Internal trade promotion
-Eternal trade promotion
-Service provisions
-Creation of enabling environment
-Consumer protection
Paper 2
1. Explain four methods used by the government to protect consumers
-Setting up standards by Kenya Bureau of Standard (KEBS) to ensure that commodities produced and being sold meet the desired qualities and standards.
-Weight and measures act to ensure that equipment used for measuring are correct and accurate
-Licensing to ensure that there is control on the type of business carried out
-Food and drugs act to ensure that producers and traders do not include any substance in the commodities that they sell to the consumers which might have harmful effects on the consumers’ health
-Trade descriptions Act/ sale of goods act to ensure that a producer or a trader does not cheat the consumers by providing false descriptions of commodities
-Public health Act to ensure that commodities offered for sale are hygienic and of good quality
-Price control to ensure that essential goods and services prices don’t go beyond a certain limit (viii) Rent and Tribunal Act to ensure that tenants are not overcharged by landlords
3. Name and explain four ways in which the government gets involved in business activities
-Training – The government trains businesspeople in various institutions in the country Trade promotion
– The government promotes trade by ensuring that there is variety of goods and services traded in locally and internationally. There are measures instituted by the government to promote trade at both domestic and international levels Provision of public utilities
– Provides essential services like water, transport, sewerage, power communication e.t.c. which are provided either central government or local authorities Provision of enabling environment
– Ensures that there is conducive environment for business activities e.g. by giving subsidies and incentives to traders, protecting traders and guaranteeing them for loans locally and on international level
- Regulation – The government regulates business activities through licensing, ensuring standards and legislation
4. Discuss five ways in which the Kenyan government can provide an enabling business environment to encourage the young upcoming entrepreneurs
- Provide security
- Provide basic infrastructure
- Fair taxation/tax concession
- Eradicate corruption
- Control inflation
- Accessibility to finance
- Reduce beaurocracy in registration
5. Outline five ways in which the department of external trade promotes a country’s external trade-
-Explore and identify new markets for more export opportunities
-Research and analyse markets for exports from their home countries
-Keep statistics of products i.e. volume, packaging sizes and methods of manufacturing
-Attend meetings seminars and workshops on trade patterns of the trading countries/on behalf of exporters
-Publish and advertise their country’s exports in business journals of magazines select buyers, agents and distributors of the home country’s exports
-Inform traders of their home countries of the standards required for exports