QUESTI

ONANDANSWERSFORM.
S.E.
BUSI
NESSSTUDI
ES
1.Oneoft hepov ert
yreducti
onstrat
egyputin whichonl ythegov ernmentcanaf for
d.
placebyt hegov ernmentisthe - Togener ategov ernmentr ev enues
encour agementoft hespiri
tof - Thegov er nmentt akesov ercertai
nf i
lms
entrepreneur
shi p. i
nor dert oensur eequal andf ai
r
(a)Def ineanent erpr
ise dist
ributionofgoods.
- I ti
sabusi nessorani ndust
rycarr
iedout - Topr ovideessent ialservi
ces
tomakepr of i
torfori
ndependenceor - Compani esdeal ingwi thbasicgoodsar e
sati
sfact
ion runbyt hegov ernmentt oensur ethei
r
(
b)Explainbrieflyanyt hreefact or
st hata conti
nuityandef f i
ciency.
personmustbeari nmi ndwhenst art
ing - Tocr eateempl oy ment
upanent erprise - Toav oidmonopol yofnat uralresources.
- Cashf low–al lexpectedincomesand
outgoingsov ert hefir
styear 3.Whatar et hedisadv ant agesofpublic
- Finance–det ailsofhowf inancei s cor
por ationt othenat ion?
goingt ober ai sed. - Theydr ainalotofmoneyf rom t
he
- Mar keti
ng–descr i
besthemar ket gov ernmentt reasur y.
researchthathasbeencar riedoutand - Theyencour agepol i
ti
calinter
fer
encein
whati thasr ev ealed. thecommer ce.
- Businessgr owt h–t hebusi nessshoul d - Theybecomet oobi gtobewel lrunand
giveani ndicat ionofthefut ureplans. thi
sl eadst oineffici
ency .
- Lackofcompet i
ti
onmaymaket he
(
c)Outl
ineanyt woproblemsthatcan organi sati
oninef f
icient.
entr
epreneurmayf aceinhis/
her - Theyt endt obemonopol ist
ic.Onefi
rm
busi
ness prov i
det hesuppl yofel ectr
icpowerand
- Lackofmanagementski ll
s i
nsodoi ngtheydi scouragecompet it
ion.
- Lackofmar ket
ingskil
ls
- Lackoffinance 4.Li
stanyt y
pesofcorporations
- Lackofper sonnel - ESCOM El ectr
ici
tySupplyCommi ssi
on
- Baddebt s ofMalawi.
- Regulat
ionsandt axes. - MANEB Mal awiNationalExaminati
on
Board.
2.(
a)Whati smeantbynat
ional
isat
ion? - ADMARCAgr icult
uralDevelopmentand
- I
tistheowningofcompani
esbyt he marketi
ngCorporati
on.
government
. - PRESS e. g.PTC
(b)Def i
net heterm nati
onali
zedindustry/ - COUNCI LS Muni ci
palit
y
parastat
al.
- I ti
sast ateownedcompany/I ti
san 5.TheMal awi
gov er
nmenthasprivati
zeda
organizati
onr unbythegov er
nment numberofstateownedenterpr
ises.
(c)Howar enationali
zedindustr
ies (a)Whatismeantbypr i
vati
zati
on?
establ
ished? - Selli
ngofstateownedcompani esto
- Theyar eestabli
shedafteraprospectus pri
vatei
ndivi
dual
s.
andat radingcerti
fi
catehasbeeni ssued - Changeofowner shi
pf r
om stateowned
- Theyar eformedbyanactofpar l
iament. companiestopri
vat
eindivi
duals.

(
d)Whyarei
ndust
ri
esnati
onali
zed? (
b)Namet hebodythati
sresponsi
blef
or
- Somecompani
esrequi
rehugecapi
tal pr
ivat
izat
ioninMalawi

1
 - Pr
ivat
izat
ioncommi
ssi
onofMal
awi - Theyfi
nancet hemsel
vesthr
oughl oans.
- Theygeneratesurpl
usformember s
(
c)Stat eanyt hreeadv antagesof
- Membersar eprevent
edfrom cheati
ng.
privatization
- Itgener ategov ernmentr evenueswhi ch
8.Suggestanyf ivedi sadvantagesof
i
susedf orot heri nvestment s.
cooper ativessoci et i
es.
- Itreducesgov ernmentexpendi ture.
- Theyi sal imitednumberofcust omer s
- Itpromot escompet iti
oni nbusinessby
sincet henon- member sarenotal l
owed
givingconsumer swi derchoiceofgoods.
tobuyf rom t heshops.
- Itpromot esef fici
encyi ncompani es
- Poormanagementduet olackoft rained
hencemor epr oduct i
vit
y
manager s.
- Itincreasespr ivateshar eowner ship
- Mi sunder standi ngariseinthe
sincepr ivat eindividualscanbuyshar es
distributionofpr ofi
tsbasedon
i
npr i
vatizedi ndust ries
pur chase.
(
d)Nameanyt hreestat
eowned - Thosewhocont ribut
elargecapitalfeel
ent
er pr
isesthathavebeenprivat
izedi
n bet rayedwhent heyseet hosewhodi d
Malawi notcont ributelargecapi t
alsreceiv
e
- Malawi Rai
lwaysLimited l
ar geshar esonl ybecauset heywer e
- WoodI ndustr
iesCorporati
on. goodbuy ers.
- Malawi Dai
ryLimit
ed - I nsuf fi
cientcapi taltofi
nancet he
- Col
dSt orage. dev elopmentofnewst oresandt he
- DavidWhi t
eheadLimited. renov ationoft heex i
sti
ngones.

6.(
a)Whati sacooper at
iveSociety? 9.(a)Br i
ef l
ydi scusst hef ollowi ngt erms.
- Iti
sanon- pr
ofitmakingorganisati
on - Leasi ng–Rent i
ngbusi nessequi pment
for
medbymember swhoar ealsoit
s from anot herf i
rm atacer tainf eef orusein
customers. production.
- Iti
sf or
medagai nstthepr
of i
teeri
ng - Fact oring–aser vi
ceof feredbyt he
behav i
orofr
ichbusinessman.I ti
seither bankst oassi stcust omer si nthe
ret
ailorwholesalecooper
at i
vesociety. collectionoft heirdebt s.I tissel l
ingof
debt s,inwhi chmoneyf rom debt orsis
(b)Giv ef i
vepr incipalsofcooper ati
ve collectedi mmedi at
el ythr oughan
soci
etyort hemai nf eatur
esofa agencyatacer t
ainf ee.
cooper ativ
esoci ety. - Hi rePur chase–At ypeofsal ewher e
- Democr aticcont rol–eachmemberi s goodsar eregardedasbei ngonhi r
eand
all
owedonl yonev ote. remai nt hepr opertyoft hesel l
erunt ilt
he
- Member selectmanagementcommi t
tee fi
nal installmenti spai d.
thati sresponsi blefortheday -
to-
day - Mor tgage–sur render i
ngoft i
tl
edeeds
wor k. ofpr oper tyaftersecur ingal oan, which
islatersol dbyt hel enderwhopr ovide
- Member shipisopent oany bodyabove
thel oani ftheloani sunpai d.
18y earsold.
- Di videndi sdi stri
butedaccor dingto (
b)Definet heprinci
pleofi
nsurable
pur chases i
nter
estininsurance.
- I nterestispai donshar es - Thismeanst hatyouonl
yinsureanitem
- I ti
sanswer abletot heregistrarof i
fyouwillpersonall
ysuff
erfi
nanciall
ossif
fri
endl yorgani sation. t
heeventoccur s.
(c)Bri
efl
ydiscussanttwoadvantagesyou
7.Whyarecooperati
vesoci
eti
esimpor
tant
? mightgai
nper sonal
lybyt
akingoutli
fe
- Theypassmi ddl
emen i
nsurancepoli
cy .
- Theyeli
minateextr
acostsby - Dependentsdonotsufferaft
eryour
middl
emen deat
h.

2
 - Iti
sani nv
estmenti
fpol
i
cymat
ures andbusi
nessar
eofr
equi
redst
andar
d.
bef
oreyourdeat
h.
(f
)Whati stotalqual
itymanagement ?
(
e)Descr ibebri
ef l
ythemai nr i
sksagai
nst - I ti
sensuri
ngqualit
ythrougheffect
ive
whi char et
ailermightinsure. superv
isi
onofallproduct
ionlevel
s.
- Ar etail
ermightensur eagainsthi
s
(
g)Givet
hreebenefi
tsofqual
it
ycontr
ol.
premi sesbeingburntt ogroundbecause
- I
tincr
easessal
esofcompany ’
s
therear est
atisti
cswhi chtellt
he
pr
oducts.
i
nsur ancecompanyhowl ikel
yret
ail
- I
timprovesi
magesofacompany
premi sesaret ocatchfir
e.
- Consumersgetgoodsofhi
ghstandar
ds
10.(a)Defi
netheter
m qual
itycontr
ol.
11.(a)Suggestanytwor easonforabusiness
- Itisamethoddonetoensurethatgoods
tochangefrom asolepropri
etorshi
ptoa
andserv
icesar
eofrequi
redstandard.
company.
(b)Suggestt hr
eemet hodsofquali
ty - Toensur econtinui
ty
control
. - Itiseasytoraisecapit
al.
- Sampl ingandt esti
ngt hegoodsand - Forwi derconsult
ati
onstomake
servi
ces. deci
sions
- Engagingext ernaltesti
ngboardsli
ke - Toav oidanelementofunl i
mitedl
iabi
li
ty
MBS
(
b)Outlinefourneedsf orpeopl eworking
- Conduct i
ngmar ketresear
chtofind
i
nacompanyi nMasl owhier archy.
responsefrom consumer s.
- Basicneeds/ physi
ologi
cal
(c)Out li
neandexpl aint hreet ypesof - Secur i
tyneeds/safet
y
productioncost s. - Socialsati
sfacti
onneeds
- Fi xedcost s–Thesear ecost swhi ch - Sel
f-importanceneeds/ selfesteem
maybeusedunchangedf rom agi v en - Sel
ff ulf
il
mentneeds/ self-r
eali
zati
on.
periodoft i
medespi t ewidef l
uct uations
inact i
vit
ye. g.rent .Theydependon (c)Suggestfourfactorswhichdi
rect
ors
passageoft i
meandar eaccor dingly shoul
dconsiderbefor epayi
ngwagesinthe
somet i
mesr eferredt oasper iodscost s company.
e.g.salari
esofexecut i
ve,insur anceof - Jobdemands
buildi
ngs. - Empl oyeequali
ficati
on
- Var iableCost s–Thesear ecost swhi ch - Empl oyeeexperi
ence
changei nt otal i
ndi rectpr opor ti
ont o - Nat ur
eofbusiness
changesi nact i
vity.Theyar efixedon - Financialr
esourcesav ai
l
ablei
nthe
peruni tofbasi soft heact iv
ityt hathas or
ganizat
ion.
beenper f
or med.Thesear ecost sof (
e)Di
ff
erent
iat
ethef
oll
owi
ng
usuallyrawmat erialswhi chchange I
. WagesandSal
ari
es
from timet ot imee. g.gr ami l. - Wagesar epaidtotemporari
lyworkers
- Tot alcost s–Thesear esum ofcost s whil
esalari
esar epai
dtoper manent
incl
udi ngfixedcost sandv ar i
abl escosts workers.
incurredbycompanyorbusi ness. - Wagesar epaidweeklyormont hl
y
(d)Whatdoy ouunderst
andbyquali
ty usual
lyondailyorhourl
yratewhile
assurance? sal
ariesarepaidmonthlyonannual r
ate.
- I ti
sacommi t
mentsystem,whi
ch - Vali
dabsenteeism st
il
latt
ract
ensuresthatgoodsareofqual
i
tyst
andards. deducti
onsofpayi nwageswhi l
ein
sal
ariesi
tdoesnot .
(e)Expl
ainwhaty
ouunder
standqual
it
y
cont
rol I
I. Gr
osspayandNetpay
- Itisamethoddonet
oensuret
hatgoods - Gr
osspayincl
udesbasi
cpay,
al
l
owances,ov
erti
me,bonusor

3
 commi ssi
onsetc.(t
otal package)whi
le - It
st helargestpr ivateconsumer
netpayisthetakehomepayaf t
er organisation.Itcar r
iesout
deducti
onoftaxes,insurancepremiums i
nv esti
gationsofgoodsandser vices
pensioncont
ri
bution,loansand fr
om di ff
er enttraders.Thei nformati
on
advances. i
spubl ishedi nitsmagazi nesaboutt he
bestshopsandpr oducts.Itpersuades
I
II
. Pi er
cerateandTimerat
e
manuf actur ertoreducepr i
cesand
- Pier
cewor ki
stheworkpai
daccordi
ng
i
mpr ovethequal i
typroduct s.I
t
totheamountofworkwhil
eTimeratei
s
organizesconsumer ’sdemonst rati
ons
workpaidaccor
dingt
odurati
onofti
me.
againstunsat i
sfactorypricesincreases.
12.(
a)Whoi saconsumer ? (
iv)TradeUni ons
- He/shei
st hel
astpersoninthechai
nof - Thesear eorgani
zedassociationsof
di
stri
but
ion.Heisthepersonwho employeesengagedi napar ti
culart y
pe
makesuseofthepr oduct
s. ofwork,formedtoprotectthei nterest
andimpr ovethecondit
ionofwor kers.
(b)Ment ionf i
v ewaysi nwhi chconsumer s
Theyareusedasmout hpieceof
canbecheat ed
workersinbargai
ningforgoodwor ki
ng
- Theycanbegi venincorrectwei ghtsand
condit
ionsandsalarystructur
es.
measur esoft hepr oducts.
- Poorqual ityproductscanbegi vento
13.(a)Descr i
bebr i
eflyeachoft hef ollowing
theconsumer .
component soft hemar ket
ingmi x.
- Pr oduct sofdanger ouscont entsandnot
- Pr oduct–v arietyonof f
er, size
hygienicall
ymi xedmaybepur chasedby
appear ance,guar antee,brandpackagi ng,
consumer s.
durabil
ity
- Pr oduct scanhav ehi ghpr icescontrar
y
- Pr ice–i ncludesdi scounts, credits
torecommendedr etailprices
termsandbasi cprice.
- Adv ertisement smightmakef alse
- Pr omot ion–cov ersadv ertising,
clai
msofgoods.
publici
ty,sell
ingandpubl i
cr elati
ons.
(c)Showhowt hefol
lowinghel pin - Pl ace–r el
atest ochannel sof
prot
ectingtheconsumer . distr
ibution,l
ocat i
onanddepot s.
() Mal
i awiBur eauofStandar ds
(b)Explainanytwomeanst hatcanbe
- I ti
sagov ernmentor ganisati
onchar ged
usedtopr ot
ectconsumers.
withtheresponsibi
li
tyofcheckingt he
- Majoractsofparli
amentsuchassalesof
quali
tyofpr oduct
sanddev el
oping
goods1893/ 1979.Tr
adedescri
pti
onact
standar
dsandsat i
sfacti
onsorpr oducts
1968
fordomesticandex portmar ket
s.Goods
- Organisat
ionssuchasCAMAandMBS.
ofpoorqual it
ycanbebannedi nMal awi.
(c)Descri
betwoway si nwhichthe
(
i)Sal
i esPr omot i
on
consumersAssociati
onofMal awi(CAMA)
- Thesear eadv erti
sement sorpublici
ty
prot
ectsconsumers.
campai gnsintendedt oincrease
- Conducttestsonpr oduct
s
awarenessandsal esofapr oductbya
- Publishfi
ndingsoftestsi
npress
manuf acturi
ngi ndustr
y.Throughsales
- Pr ovi
deciv
iceducationonconsumer’
s
promot i
onconsumer sar ebroughtin
ri
ghts.
contactwi t
ht heproductst oassess
- Impoundsexpi r
edgodsf r
om theshops.
thei
rqual i
ty.Freesampl esspecialoff
ers
andr af
flecompet i
ti
onsar egiventothe
14.(
a)Describeeachofthefol
lowi
ng
consumer s.
- Globali
sati
on–i saworl
dcooper
ati
on
(
ii
i)ConsumerAssoci
ati
onofMal
awi whichadv ocat
esforr
emovaloft
rade
(
CAMA) barri
ers.

4
 - CommonMar ket–Iamar ket - Insurableint
erest–byt hispr inciple,t
he
establi
shedamongcount ri
esor i
nsur ancecompanydemandst hatt he
betweent wocountr
ies. riskscoveredbesucht hatwoul d
- Liberasati
on–i sat
radesy st
em wher
e directl
yresulti
nlosstot heper son
tradebarri
ersareel
i
mi nat
ed.Iti
s under t
akingthepoli
cy .
remov aloftr
adebarri
ers. - Indemni t
y–t hispri
nciplepr event sthe
i
nsur edfrom makingapr ofitoutofa
(
b)Diff
erenti
atebet
weenbi l
ateral
and
l
ossordamage.Thei nsur ancecompany
mul
ti
lat
eraltr
adeprotocol
aimsatpl acingtheinsuredi nt hesame
- Bil
ater
altr
adeistr
adebet weentwo
positi
onashewasbef oret heev ent
countr
ieswhil
emul t
il
ater
altr
adeisa
happened.
tr
adeamongcount ri
es.
(
c)Expl ainanyf iverolespl ay edbyl endi
ng
(
d)Whatar et hedi sadvantagesoft r
ade
i
nst
itut i
onsi nbusinessact ivity.
l
ibal
isat i
on?
- Loans–cr editsacquiredf rom banksor
- I tencour agest hedev elopmentof
financi al i
nsti
tuti
onspai dbackwi th
privatebusi ness.
inter est s.
- I ndivi
dual shav egreaterfreedom t o
- Leasi ng–r ent i
ngofbusi ness
maket heirowndemandandsuppl y
equi pmentf rom otherf ormsf ora
decisions.
cer tainf eeforproduct i
on.
- Pr oduct i
onr ef
lectsthewi shesoft he
- Fact or ing–sel li
ngofdebt swhi chhave
consumer s.
failedt obecol l
ectedofl owerf eeto
- I tencour agest hemov ementofgoodsi n
anot herf i
rm.
andoutoft hecountryandpr otectsa
- Mor tgages–sur r
endingat i
tl
edeedof
count r
y ’
sowni ndustri
es.
pr oper tyaf tersecuringal oan,wi t
ha
- Pr icesar elowduet ocompet it
ion.
viewt ol oseitifyouhav ef ai
ledt opay
- Ther eisawi deselectionofchoi ceon
backt hel oan.
consumer s’ wantsandneeds.
- Hi repur chase–buyi ngofequi pment
(
e)Whatdoy ouunder
standbyt
heter
m thr oughhi r
ebyi nstalment saf terpayi
ng
t
radepr ot
ocol
? somedeposi ts.
- Tr adeprot
ocolmeanstr
adeagr
eement
betweencount
ri
es 16.(
a)Whoisanent repreneur
?
15.(
a)Def i
net het er
mi nsurance - Anentr
epreneurisanyonewhois
- Insurancei stheapool ingofri
sksori ti
s i
nvol
vedinabusi nesstomakeprof
it
.
anar rangementoragr eementwher eby (b)Giv
eanyf ourcontri
buti
onsofsmall
onepar ty,call
edtheinsur er
,agreesin busi
ness.
retur
nf orapr emium topr ovi
de - Providi
ngnewj obs
i
ndemni t
yf oranotherpartycall
edthe - Producinggoodsandser vi
cesef
fi
cient
ly
i
nsur edint heeventofsomespeci al - Intr
oducinginnovati
ons
l
oss. - Helpingbigbusinesses
(
b)Descr ibemai npr incipl
esofi nsurance. (c)Outl
inef i
vepr oblemsfacedbysmal
l
- Utmostgoodf aith–Thi sprinciple busi
ness.
demandst hattheper sonunder takingun - Lackofmanagementski ll
s
i
nsur ancepol icyshoul dprovidehonest - Lackoff inance
i
nf ormat i
onaboutt heproposedr i
sk. - Lackofper sonnel
Conv erselythei nsurancecompanymust - Regul at
ionsoft axes.
alsoshowut mostgoodf ai
thby - Lackofmar keti
ngski
ll
s.
explainingt othepr ospecti
vei nsuredthe - Baddebt s.
termsoft heinsur anceandtheexpect ed
cov erbeingpr ov i
ded 17.Expl
aint
heusesoft
hef
oll
owi
ng

5
document s. ofcar ri
ageofgoodsandt heamountof
(a)StatementofAccount–i tisadocument ti
menecessar yf ort hedel iv
er yofthe
thatsummar isest radet ransact ions goods
betweent hecust omerandt hesuppl ier k)Consi
( gnmentnot e–i tisaf ormal
i
nagi venper iodespeci al l
yamont h.Itis i
nst ructi
ont othecar ri
ertoacceptt he
usef ul foraccount i
ngpur poses. goodsanddel ivert hem t othecust omer.
(b)LetterofI nqui ry–i tisal etterwr i
ttenby I
tpr ov i
deapr ooft hatt hehi red
thecust omert oknowt hegoodsand transporthast akent hegoodst othe
theirpr icesf rom acompany .Iti sused ri
ghtpl ace.Iti
susedf orhi r
edt r
ansport
forcompar ingpr i
cesbet weent rader s. todel i
verthegoods.
(c)Adv icenot e–i ti sadocumentt hat (
l)I
nvoi ce–i tisal i
stofgoodssentwi th
cont ainst hedet ail
soft hegoodssentt o pricesandchar gedFROM t hesellerto
thecust omer .itismost lysentbef ore thebuy er.Itadvicest hebuy erhow
goodst oadv i
cet hecust omert hathi s muchheowest hesel lerf
orapar t
icul
ar
goodsar eont heway .Somet imesi tis deliveryofgoods.
sentt oget herwi ththegoodsf ort he (
m)Cheque–i tisanev i
denceofpay ment .
cust omert ocheckwhet herhehasbeen I
ti susedf orapay mentwher ecashi s
givent her ightgoods. notused.
(d)Deliver ynot e–I tisadocumentt hat
accompani est hegoodst obesi gnedby 18.Descr i
bet hei mpor tanceoft hefollowing
thecust omerandi ti sr eturnedt ot he documentusedi nt ransact i
onsbet weenan
dri
v erwhodel iverst hegoods.I tact sas i
mpor t
erandexpor ter.
apr ooft ot hesuppl iert hatt hegoods (a)Billofl adi ng–i tisthemosti mpor t
ant
hav ebeendel iveredt ot hecust omer . documenti ni nternational t
rade3.
(e)Debi tnot e–i ti sadocumentsentbyt he Nobodyi sal lowedt osendgoods
cust omerwhohasbeenunder char ged abr oadwi thoutsi gningthebi lloflading.
i
nani nv oice.I ti sasuppl ement ar y Itcont ai nsdet ai
lsoft hegoodssent
i
nv oicet hati ncr easest heamount abr oad.I tcont ainsthenameoft he
char gedont hei nvoice. consi gnor( sel l
er)andconsi gnee
(f)Credi tnot e–i ti sadocumentsentt oa (receiv er)whocancl aimt hegoodsby
cust omerwhohasbeenov erchar gedi n present ingt hebi lloflading
ani nv oice.I ti swr i
tteni nr edi nk (b)Cer tif
icat eofOr igin–i tcertif
iest he
becausei tr epr esent st hef l
owofmoney originoft hegoods.I tshowst hepl ace
i
nadi fferentdi rect i
onandt odi st i
ngui sh wher et hegoodswer epr oduced.
i
tf r
om anor dinar yinv oi ce.Itisusedt o (c)Consul arI nvoi ce–i tisadocument
reducet heamountchar gedonan requi redt obepr oducedbyani mpor ter
i
nv oice. signedbyt heconsul ateofani mpor ti
ng
(g)Order–i ti st hedocumentwr ittent o count r y.Theconsul atecer ti
fi
est he
requestt hecompanyt osuppl yormake cor rectnessoft hepr iceoft heimpor t
ed
goodsf ort hecust omer . goods.
(h)Recei pt–i ti st hedocumentgi vent ot he
buy erasapr ooforev idenceofpay ment . 19.Explaintheroleofthef ol
lowing
() Pr
i of ormai nvoi ce–i ti sapr eli
mi nary governmentor gansinpr omot ingtrade.
i
nv oicesentt ot hebuy eri nwhi cht he (a)Mi ni
stryofcommer ceandi ndustry
goodsconcer nedar enotchar gedt ot he - Pr ovidi
nginformationoni mpor tand
cust omer ’
saccount .Thecust omerwi l
l exportproducers.
hav et opayf ort hegoodsbef or e - Keepi ngst at
ist
icsofimpor tsand
deliver y. exports.
() Quot
j at ion–i tisast at ementofpr ices, - Pr ovidi
ngexpor tl
icensesf orcertai
n
termsont hesuppl y ,discount ,thecost classesofgoodsf orpr ot
ect i
on

6
 purposes. document
shavebeenprocessedor
- Provi
dingspecif
ici
nfor
mat
ionon whenanactofpar
li
amentispassed.
forei
gnmarkets.
(
b)Apar tf
rom adverti
sementgi veany
b)Mal
( awiExportandPromot i
onCounci l t
hreemeansofr ecruit
ingstaffexternal
ly
?
- EncouragesMal awi
angoodst ocarry - Empl oy
ingthroughlabourof f
ices.
outexporttr
adingthr
oughinternat
ional - Empl oy
ingdir
ectlyfrom tr
aini
ng
tr
adefairswhereMalawiangoodsar e col
l
eges.
shownt ofor
eigncountr
ies. - Empl oy
ingthroughr ecr
uit
mentagenci es.
c)Mal
( awiInvestmentPr omot i
onAgency
23.Bri
ef l
ygivethreeproceduresthat
- Promot ing,at
tracting, Encour agi
ngand
accompanyi ssupposedt ofol
lowwhen
facil
it
atinglocal andf oreign
i
ntroducingapr oductont heforei
gn
i
nv estmentsinMal awi .
mar ket.
- Prov i
dingonpot ent i
al areasf or
- Engagi nganagent
businessv entures( activi
ties)andon
- Li asewi t
himpor tandexportcompany
i
mpor t
sandexpor t.
onpr oceduresforexporti
ngand
impor t
ing
20.Describet hef ol
lowi ngpr i
ci ngst rategiesin
- St udyingbelief
s,tradi
ti
onsandcustoms
market i
ng.
off or
eignmar kets.
(a)Skimmi ng–t hemanuf act ur
erchar gesa
higherpr icedur ingt hei nt roductory
24.(a)Descr ibet hreest epsthathav etobe
stageandl aterr educestwhent he
fol
lowedt oensur equalit
ycont roli
nt he
producti sl ongeranov elty .
productionofgoods.
(b)Penet ration–amanuf act urer
- Thef irststepi stoensur ethatraw
i
nt r
oducest hepr oductatal owpr ice
mat erial
sar eofgoodqual i
ty.
andpl anst ogetbacki nitialinvestment
- Thesecondst epistocheckwor kin
throughl argev ol umesal es.
progressbyt aki
ngr andom sampl esof
(c)Compet i
tive–pr icingbasedonwhat
thepr oduct satv ari
ousst agesof
compet itorsi nbusi nesschar ge.
product ion.
(d)Costpl us–set tingat ar getofhow
- Thet hirdst ageist ocheckt hefini
shed
muchpr of i
ttomakeov ercost sandadd
productsot hatfault
ygoodsar et aken
acer tainper cent agef ort hatpr ofi
t.
outandscr aped.
(e)Max imi zingsal es–i ncreasi ngsal esin
ordert ot akeal ar geshar eoft hemar ket
. (
b)Stateanytwof unct
ionsofabi l
lof
(f)Range–sel ectingonepr iceatwhi cht he l
adi
ng
whol er angeofpr oduct swi l
lbesol d. - Iti
sareceiptf
orgoodsshi pped.
- Iti
sevidenceofthecontractofcarr
iage
21.Out
li
nereasonswhypeopl ewor k. - Iti
sthedocumentoft it
leforthegoods.
- Money - Iti
susedt obr
inggoods.
- Secur i
ty–ar easonabl
edegr eeof
security 25.(a)Expl ai
neachoft hef ol
lowingwor dsas
- Jobsat isfacti
on–r eal
izingone’s usedinexpor ttrade.
potentialthroughambition. . Ai
I rwaybill–isadocumentwhi chis
- Self
-impor tance–t ohav eself
-r
espect usedwhengoodsar esentbyai r
andconf i
dence. showi ngdetail
sofgoodsandt he
- Socialsatisfacti
on–needf orsoci
al per sontowhom t hegoodsar esent.
rel
ationship. I. Cer
I ti
fi
cateoforigin–i sadocument
whi chisusedt oindicatethecount r
yof
22.(
a)Expl
ainhowast at
utor
ycorpor
ati
oni
s originoftheimpor tedgoods.
f
ormed. I
I. I
I ndent–i sanor derofgoodst obe
- Whenprospect
usandtradi
ng expor t
edabroad.

7
V. Mat
I es’note–i sar eceiptwhichisgi
ven - Admini
str
ati
oncost
sincur
redbythe
forgoodsar rivi
ngbycanal orri
verwhich fact
or.
havebeent r
anspor teddirect
lyfr
om the - Youdonotrecei
vet
hefull
valueofy
our
bargetot heshipori tisadocument debt
whichcont ainsdetai l
sofweightand
managementoft hegoodswhi chare 27.(a)Expl ainanyt hreer easonswhyt he
usedt ocalculatethecostofcar ri
age. Malawigov ernmenthaspr iv
at i
zedcer t
ain
enter
prises.
(b)St ateanyt hr eeproblemsthataperson
- Tof osterincr easedef fi
ciency
engagedi nf or eignt r
ademayf ace.
- Toi ncr easecompet it
ionorr educe
- Language
monopol y-freemar ketsystem
- St andar duni ts
- Topr omot epubl i
cpar ti
cipationin
- Cur r
ency
enterprises
- Li censes
- Tor aiserev enuef orthegov er nment.
- Document at i
ons
- Ot herr i
sksi .e.theftatt
hedock,non- (b)Descr ibeanyt hreedisadv antagesof
pay ment ,ref usalofgovernmentto pri
vatizati
onf orempl oyees.
releasefor ei gnexchange - Lossofj obs–empl oy eesf earthatonce
- Tar i
ffs theirent erpri
seisprivatized,thenew
- Pol i
ti
calclimat e. owner smaydeci detodownsi ze.
- Cul t
uraldiff erences - Jobi nsecur it
y–empl oyeesespeci all
y
- Communi cat ion/tr
ansport l
azyonesf earthattheymayl osethei
r
j
obsi ft heydonotwor kt ot he
26.(a)Explainwhyinsuranceisdescri
bedasa expectat ionsoft henewowner softhe
pooli
ngr i
sks enterprises.
- Becausemanypeopl ewhocoul dsuf
fer - Changeofpol i
cies–empl oyeesfear
alosscontr
ibutepremiumstoaf und thattheymaygetaf fectedbyt henew
whichisusedtocompensat ethosewho polici
esbr oughtaboutbyt henew
suff
eraloss. management .
(b)Stateanyt wor isksagr ocercaninsure 28.Li
stanyfourt hingt hatshouldappeari
na
hisbusinessandcannoti nsurehis busi
nesspl an.
business. - Descr i
ptionoft hebusiness
- Cani nsureagainstfi
redamagi ngthe - Projectedcashf lowstatement
buil
ding,pil
feragebycust omer’setc. - Detail
soff inancer equir
ed.
- Cannoti nsureagainstloss,i
nfl
ati
on, - Statementofi t
sai ms
expiryofgoods, bankruptcy,et
c. - Amar ketingpl an
- Al i
stofkeyper sonnel
(c)Descr
ibeanyt
woadv ant
agesand
- Projectedbal ancesheet
disadv
ant
agesoffact
ori
ng
Advant
ages
29.(a)Statethr
eerewardst
hatan
- Maypr ovi
deani mmediat
epayment
entr
epreneurgets.
againstdebt
ors
- Pr ofi
t
- Ensuresthatassetar
enotti
edupin
- Independence
debtors
- Sat i
sfact
ion
- Itt
akesawayt heprobl
em ofdebt
col
lecti
on. (b)Descri
bethreecharacteri
sti
csofan
- Paymentcanbemadeev enbefor
e entr
epr
eneur.
debtorspay. - Needf orachievement
Di
sadvant
ages - Self-
confi
dence/ mot
ivati
on
- Int
eresti
schar
gedont
hedebt
s - Needt otaker i
sks
coll
ected
(
c)Gi
vet
hreeway
sthatanent
repr
eneur

8
 canusetofinancehisbusiness. - Changei
ntopar
tner
shi
p.
- Borrowingfrom thebank.
(
d)Descr ibethedifferencebet ween
- Ploughi
ngbackpr of
it
l
easi ngandhi r
epur chase.
- Tradecredits
- Leasingisamet hodofpay ingforthe
- Factori
ngdebt s
useofexpensi veitemswi thoutbuying
- Hirepurchase
whilehirepurchasei sat y
peof
- Leasing
agreementf oradef erredpay mentfor
- Savings
buyinggoods.
- Borrowingfrom uncl
esandr el
ati
ves

30.(
a)Usingthef ol
lowingdet ailsprepareani nvoicebasedonpur chaseorderNoHF/ 108
Sell
er:NazangaWhol esalerEnterpri
se, JeketeStreet;
POBox51779Li mbe
Buyer:Higgo’
sCl assicBackst or
e, Sochecol legeofTechnologyKabulaAvenueLimbe
Termsofpay ment :Netcashi nonemont h
Tradediscount20%
Date:19June1997
Quantit
y Titl
e Author Pri
cepercopy
4 Visi
on2021 Mwar uNdalapa K31.
50
10 MSCEPr i
nci pl
esofaccount sSHEChat opa K59.20
8 Thirt
yoney earwitheggs NgeMuzi K42.00
5 NewTer msi nDemocr acy Z.Mat imati K49.50
2 Ditt
ypol i
ti
cs: GodFor bids KBCBamuchi K65.00
4 Laboratori
esofAf ricanDoct ors D.Changai K48.
50

Cashdi
scounti
s2.
5%

I
nvoi
ceNo.2174
Fr
om: NzangaWhol
esal
eEnt
repr
ise,
Jeket
eSt
reet
,P.
O.Box51779,
Limbe.
To: Hi
ggo’
sCl
assi
csBookst
ore,
Sochecol
l
egeofTechnol
ogyKabul
aAv
enue
Li
mbe

……………………….
Suppl
yofgoodsperpur
chaseor
derHF/
108

QUANTI
T TI
TLE AUTHOR PRI
CE/
CO TOTAL
Y PY

4 Vi
si
on2021 Mwav
u K31.
50 K126.
00
Ndal
apa

10 MSCEPr
inci
pleofAccount
s SHEChat
opa K59.
20 K592.
00

8 Thi
rt
y-oneYear
swi
thEggs NgeMuzi K42.
00 K336.
00

5 NewTer
msi
nDemocr
acy Z.Mat
imat
i K49.
00 K247.
50

2 Di
rt
yPol
i
tics:
Godf
orbi
ds KBCBamuchi K68.
00 K136.
00

9
 4 Labor
ator
iesofAf
ri
can DChangai K48.
50 K194.
00
Doct
ors

TOTAL K1631.
50
Less20%Tr
adeDi
scount K1305.
20
Less2.
5%CashDi
scount K1239.
94

Si
gned: Y.
Dossi
(
Dir
ect
or)

b)On22ndJune1991,
( Higgo’
sClassi
cBookstor
eret
urnedt
oNzangawhol
esal
eenter
prise2
copiesoft
hir
tyoneyearswit
hEggsinwhichsomepageswer
eomitt
ed.Makeoutthecredi
t
note.

CREDI
TNOTE
Fr
om: Hi
ggo’
sCl
assi
cBookst
ore,
Limbe
To: NzangaWhol
esal
eEnt
repr
ise,
Limber
2copi
esofThi
rt
y-OneYear
swi
thEggsr
etur
nedduet
otheomi
ssi
onofsomepagessee
i
nvoi
ceNo.2174

QUANTI
T TI
TLE AUTHOR PRI
CE/
COPY TOTAL
Y

2 Thi
rt
y-OneYear
swi
th NgeMuzi K42.
00 K84.
00
Eggs

Less20%Tr
adeDi
scount
Less2.
55CashDi
scount
Si
gned: P.Thom
(
Dir
ect
or)

10
31.Prepar
eastat
ementofaccountusingt
hefol
lowi
ngdet
ail
s
1May Balancebroughtdown K7400
2May Chequepay mentreceiv
ed K5000
10MayGoodssuppl ied K11000
15MayGoodsr et
urned K1200
17May Goodssuppl i
ed K7200
20May Chequepaymentr ecei
ved K16000
21May Goodssuppl i
ed K8000
23May Goodsreturned K2100
25May Chequepaymentr ecei
ved K7400
31May Goodssuppl i
ed K3800

St
atementofaccount
DATE DETAI
LS DEBIT CREDI
T BALANCE
(K) (K) (K)

1May Bal
anceb/
d 7400

2May Bank 5000 2400

10May sal
es 11500 13900

15May Ret
urni
nwar
d 1200 12700

17May Sal
es 7200 12500

20May Bank 16000 3900

21may Sal
es 860 12500

23May Ret
urni
nwar
d 2100 10400

25May Bank 7400 3000

31May Sal
es 3800 6800

32.Whati
smeantbymar
ket
ing? 33.Nameanddescr
ibeanyf
ourf
unct
ionsof
market
ing
- Isthemanagementpr ocessr esponsibl
e
foridenti
fyi
ngantici
patingand - Mar ketr
esearch:Tofindoutpeoples
sati
sfyingconsumerr equir
ement s buyinghabit
soropi ni
onsorfindi
ngout
profit
ably whatconsumer swantandadv i
sing
- Iti
skeepi ngproducersawar eoft he producersaccordingl
y.
needsofconsumer sandensur i
ngthat
theirproduct
saremadeav ailableto - Sell
ing:Invol
vestheski
ll
sofpersonal
consumer sinthewayandf ormt hey sell
ingtogetherwit
hdispl
ayand
want . presentati
onofskil
lssuchasthese

11
 i
nvolvedi
nwindowexhibit
ionsnew Lati
nAmer i
caandPanama.I twas
r
eleasesandproductpr
omot i
ons. establ
i
shedin1973i nordert
o
encourageeconomicint
egrat
ionamong
- Adv er
ti
sing:Remindi
ngcustomer sfr
om
themembercount r
ies.
ti
met otimeoft heexi
stenceof
establ
ishedproductsandlett
ingthem (c)Explainthedi f
ferencebetween
knowaboutnewpr oductwhichtheycan economi cint
egrationandcommon
buy. markets.
- Economi cIntegrati
onistheadoptionof
- Pr
ici
ng:Advisi
ngthecompanyoran acommoneconomi cpoli
cybyagr oup
or
ganisat
iononthebestpr
icetochar
ge ofnationswhi l
eCommonMar ketisa
pr
oductaccordi
ngtomarketcondi
ti
ons. form ofeconomi cintegr
ati
onwhi ch
i
nv ol
vesfreemov ementofgoods,
34.(
a)Listdowncommonmar kets. servi
ces,labourandcapi t
alamonga
- COMESA groupofnat i
ons.
- SADC
- ECOWAS 35.Whati
sachannelofdist
ribut
ion?
- Afri
canCari
bbeanPaci
fi
c(ACP) - Iti
stherout
ethatgoodsfoll
owfrom t
he
- EuropeanUni
on. manufactur
ert
otheconsumer .

(
b)Expl ainbr i
eflyeachcommonmar ket. 36.Whydoesabusi
nesscar
ryoutmar
ket
ing?
- COMESA-Thi sstandf orCommon
Mar ketsf orEastandSout hernAf r
ica.I
t - Topr
omot
esal
esofnewpr
oduct
s.
i
sanor ganisati
on(regional)that
promot escooper at
ionamongstnat i
ons
throughpr omotionofpeaceand 37.Gi
vet
hreemai
nobj
ect
iveofmar
ket
ing.
resolutionofconf li
cts,str
engt heni
ngof
tradelinksandpr ovi
sionofeconomi c - Tolookconti
nuall
yatthebusi
ness'
s
assistanceaswel laspr omot i
onof curr
entmarketsandtobeawareof
cultural andsupportingact i
vi
ties. thi
ngshappeningout
sidethebusi
ness.

- ECOWAS-ThisstandforEconomic - Tofi
ndoutcustomer'
sneedsandwant
s
Communit
yforWestAf r
icanStat
esand bycarr
yingoutmar
ketresear
ch
ai
msatpromoti
ngf r
eetradebetween act
ivi
ti
es.
WestAf
ri
cancountri
es. - Totr
ytoincreasethebusi
ness'
ssal
es
- EUROPEANUNI ON-Thi shasDenmar k, andmarketshare.
Brit
ai n,France, GermanyandItalyasi t
s
member s.Itaimsatr educi
ngtrade
barriersandf acil
i
tati
ngthemov ement 38.Howar et
hemai
nobj
ect
iveofmar
ket
ing
oflabourandcapi tal
acrossnational achi
eved?
border soft hemembercount r
ies
therebyi ncreasingproducti
onef fi
ciency - Theyareachievedifthebusinessis
andex pandi ngthesizeoftheconsumer al
way str
yingtomakesur ethatitis
mar ket. sel
lingt
her i
ghtproductattherightpri
ce
i
nt heri
ghtplaceandpr omotingiti
nthe
- SADC-ThisstandforSouther
nAf r
ican ri
ghtwayatt heri
ghttime.Thesear e
Devel
opmentCommuni ty.I
twascr eated cal
ledthe4Ps
i
n1980topromot eregi
onaleconomi c
devel
opmentandreducedependenceon
SouthAf
ri
ca.
39.Expl
aint
hemajoract
sofpar
li
amentwhi
ch
- ACP-Thisst
andforAf
ricanCar
ibbean prot
ectt
heconsumers
Paci
fi
c.Membercount
ri
esareCuba, (
a)Thet
radeDescr
ipt
ionAct1968

12
 - Itmakesitanoff
encetodescri
begoods companybuy samaj ori
tyoft heother
fal
sely
.Forexamplei
tisi
ll
egaltosay company ’
sshar
es.Itis“ ext
ernal
”
thatagar
mentispurewool whenit becausethebusinessincreasesinsize
contai
ns20%man- madefi
bres. byaddinganexisti
ngbusi nesseither
(
b)Thesal
esGoodsAct1979 thr
oughamer gerorat akeov er
.This
- Itmakesanof fencet osellgoodsthat met hodofgr
owingi salsoreferr
edt oas
havedefects.Goodsmustbeof i
ntegrati
onasonebusi nessbecomes
“merchantabl
equal it
y”(theymustbe partoftheot
her.
freef
rom fault
s)f i
tforthepurposefor
whichtheywer emadeandasdescr i
bed. 42.Descr i
betheterm consumerpr otecti
on
(
c)TheConsumerPr otecti
onAct1987 - I tiswhencust omer saresafeguarded
- Itmakesitanof fencetosel l
anyunsafe from unscrupuloustradersusinga
goods,whichmi ghtendangerl i
feor considerableamountofl egislat
ionand
causeaninjury,orwhichcoul dcause non-government alorgani
sations.
damaget oproper t
y.
43.Explai
nwhypeopl earei
mpor tantin
(
d)Thewei
ght
sandMeasur
eAct1951 businessorganisati
on.
- Itmakesi tanof fencetosellshor t - Thegr oupsofpeopleinvolvedin
quant i
ti
es.Forexampl et
osel lapacket businessactivi
tyar
eof t
encal l
ed
ofcrispsthatshoul dweigh25gwheni t stakeholder
sbecauset heyhav ean
actuall
ywei ghs15gwoul dbreakt helaw. i
nt er
estorstake,i
nthebusi ness
- Itgi
vesEnv ironment alHeal
thof fi
cer s
thepowert ocl osedownbusi ness - St
akehol
der
smaybe
wheref oodi snotpr epar
edhy gienicall
y. (
a)Owner s–peopl ewhoi nvestthei
r
moneyi nstart
ingbusi ness
(
e)TheConsumerCr
edi
tAct1974 (
b)Manager s–peopl eempl oy edto
- I
tstatesthatbusinessesmustst at
ethe control t
hegener alrunningofa
tr
ueannual percentagerate( APR)of business.
i
nterestbei
ngchar gedt ocust omers (
c)Empl oyees–peopl ewhoper form
whobuygoodsoncr edit.Customers specificroleswithinacompanyi n
mustalsohav eaper iodoft i
mei nwhich turnforpay .
tochangetheirmi ndaftersigninghi
re (
d)Consumer s–peopl ewhobuygoods
purchasecontractsathome. andser vicesfortheirownuse.
(
e)Gov ernment–el ect edmember sof
40.Givethr
eer easonsf orsmal lbusi
nesses
parli
amentwhor unt hecountry.
expansi
on.
(
f)Communi t
y–Peopl eand
- Forgr eaterprofits
organisationinal ocalarea.
- Forst atusandpr est
ige
- Fordi versi
fi
cat i
on( makingalarge - Thei
rimpor
tance
numberofdi fferentproducts) (
a)Owner s–pr ov i
sionofcapi t
al and
decision-maki ngi nthebusiness.
41.Expl
ainhowsmal lbusi
nessesexpand (
b)Manager s–ov erseeingday-to-day
- Internalgrowth–gr owinginsizeby runningoft hebusi ness
putt
ingpr of
it
sbacki nt
ot hebusiness. (
c)Empl oy ees–ov erseeingday-to-day
Thismet hodisoft
enslow.I nt
ernal runningoft hebusi ness
growthissomet i
mecal ledorganic (
d)Consumer s–buy i
ngt hegoodsand
growth. servicesf ort heirownuse.
- Externalgrowth–gr owi nginsizemor e (
e)Gov ernment–i nt
roductionofl aws
quicklybyconsider
ingamer ger(when i
npar l
iamentwhi chhel pbusinesses
twobusi nessagreetoj ointogetherand tobesuccessf ulandpr ovi
deweal t
h
becomeasi ngl
ebusi ness.)One forthecount ry .

13
 NB:Businessesareimportantto cor
por ations
communi t
iesbecausetheypr ovi
de - Theyar eessent i
albotht otheconsumer
employment.Howev er
,businessescan andt oal argenumberofi ndustriesand
damageacommuni ty’
senv i
ronmentby activ
ities.Theyser vethei nter
estoft he
creat
ingair
,noseandv isualpol
lut
ion. public.
- Thepr of i
tsaredevotedt othe
44.Li
stdowntypesofInsurancer
isks developmentandexpansi onoft he
- Insur
abl
er i
sks servi
ce.
- Non-i
nsurabl
erisks - Theyi mpr ovetheeconomyoft he
count rye. g.f
uelcompani es
45.Explai
nt ypesofI nsur ancer isks - Theypr ov i
deempl oymentt othepubl ic.
- I nsurabler isks–Ev entst hatoccur - Theyav oi
dmonopol yuseofnat ural
regularlyenoughf ort hei nsurance resour cesast heyar econt r
oll
edonl yby
companycal culateappr opr iat
epr emi um. thegov ernment .
Thecal cul ationi spossi blet hr
ought he - Pr omot ionofper sonnelisont hebasi s
pastst atisticsofev entsandt hatt hey ofprov enabili
tyratherthatbecauseof
areal argenumberofsi mi larevent s. personal contact
s, f
orexampl esonofa
Exampl esar edamagescausedbyf i
re, boss.
accident s,deat h, andt hef t
.
- Non- i
nsur abl erisks–ev ent swhich 49.Explai
ndi sadv ant agesofst at utory
cannotbei nsuredduet ol ackof corporation
stati
stical recor dsofsi mi larevents. - Theydr ainal otofmoneyf rom
Exampl esar ebankr uptcy ,infl
ati
on, l
oss gov ernmentt reasur y.Losseshav etobe
ofmoneyonst ockwhi chhav egoneout metbyt axpay ers.
offashi ongambl ing - Theyencour agepol i
tical interferencein
commer ce.Theyi nterferewi t
hthef ree
46.I
denti
fythecont ri
butionofsmall mar ketsot hatt heremi ghtnotbei n
busi
nesses thesei ndust ri
est hebestuseof
- Prov i
dingnewj obs resour ces
- Stimulat i
ngeconomi ccompeti
ti
on. - Theyt endt obemonopol istic.Onef ir
m
- Aidingbi gbusinesses prov i
det hesuppl yofpowerandi nso
- Produci nggoodsandser vi
ceseff
ici
ent
ly. doingt heydi scour agecompet it
ion
- Intr
oduci nginnovati
ons - Lackofdi rectcompet it
ionmaymake
theor gani sat i
onsi neffi
ci ent
47.Explai
nobj ect i
vesofst atutory - Si ncet heyar eusual lyv eryl arget hey
corporati
ons. maysuf f erf r
om pr oblemsf oundi nany
- Topr ovideaser vi
cef orthecontinui
ng largebusi nesssuchassl owdeci si
on-
inthepubl i
cinterestev enwher ecost s maki ng, poori ndust ri
al relat i
onsandt oo
aregreat erthanr evenue. muchbur eaucr acy
- I ndustr
yshoul dbr eakev enov eraper i
od - Ul timat ebossesar epol iticianswhomay
oftime.Thi smaymeant hatlossesin nothav et heexper t i
set hata
oney earar emadeupf orbypr ofi
tsin businessmanhas.
thenexty earoral ossmaki ngser vi
ceis
keptgoingbypr ofit
sf rom (orloss)lai
d 50.(
a)Identi
fyty
pesofforei
gnf
inanci
ngt
o
downbygov ernment .Thi smightmean l
ocalbusi
nessacti
vi
ty
thatpri
ceshav et ober aisedorcosts, - Gov ernmentgr
ants
especiallywagesr educed. - Loans
(commer cial
lyor i
ent ed)
(b)Appr
eciatetheimpor t
anceoffor
eign
devel
opmentgr ant
s.
48.Expl
ainadv
ant
agesofst
atut
ory
- Nocondi t
ionsattachedasaresul
tlocal

14
 businessaretomakeindependent 52.(
a)Defi
neprivat
izat
ion.
deci
si ons. - I
tiswhennationali
zei
ndustr
iesar
esol
d
- Theyhel pbui
l
dgoodinternat
ional t
oprivat
eindustr
iesorpr
ivat
e
rel
ations. i
ndiv
idual
s.
(
c)Whati sthepr ocedur eofacqui ri
ng (
b)Listdownadv antagesofpr ivat
izat
ion
f
oreignl oans? - Priv
ateindividualscanbuyshar esand
- TheWor l
dBankwor kswithcommer ci
al thi
sincreasest heirpri
vateshare
banksandot herlendinginst i
tuti
onlike ownership.
UsiwaWat ha, FI
NCAi ndesi gning - Priv
ateindust r
iesarerunt omakepr ofi
t
policiesf ormi cro-fi
nance. andaret hereforeeffi
cient.
- Thebanksandot herinsti
tutions - Consumer shav ewi derchoiceofgoods.
adv er t
isetheav ailabil
it
yoft hel oans. - Costsarel owsi nceservicesareoff
ered
- Peopl egot ogeti nformationont he atacompet i
tivelevel
l
oans.
(c)Ment iont hedisadv antagesof
- I nregar dtomi cro-fi
nance( smal l
pri
vatization
busi ness)t heyusual lyadvisedt oform
- Pr ivateindust ri
eswi ll
wor ktokeep
clust ergroupsoft en.Theyar etrai
ned
shar eholdershappybypay i
nglarge
onbusi nessmanagement .
dividendatt heexpenseofof f
eri
ngpoor
- Theyar egivenloansandper i
odsf or
serv i
cest ot hepublic.
repay mentagr eeingoncol lateral
- I ncreasingcompet it
ivenessof t
en
secur i
ty.
meansr estruct
uri
ngandr edundanci
es
resulti
ngIhi gherunempl oyment
51.Expl
ainwhati
sneededt
osetupa
- St andar dsorcondi tionsinpr i
vati
zed
busi
ness
i
ndust riesdonotal way simprove.
I
. Agoodideaaaboutapr
oduct
/ser
vice
- Manyst at esassetsmaybesol dcheapl
y
t
osell
thusnotbenef i
ti
ngt hewhol enati
onas
- Thi
sshouldgi
veadet ai
leddescri
ption
oft
heproductorservi
cebeingoffered, i
tcoul dhav edone.
howandwhereitwill
bepr oduced,who (
d)Listdownpr obl
emsofPr iv
atisat
ion.
i
sli
kel
ytobuyit,andinwhatquant i
ties - I
tcreatesunempl oyment
I
I. Mar
ket
ing - I
tmakespr icesofcommodi ti
esgoup.
- Describest hemarketresearchthathas - Unprofi
tabl
eindustr
yclosesdownsi nce
beencar ri
edoutandwhati thas i
tmaynotbeeasi lysol
d.
revealed.Itshoul
dgiveofpr ospect
ive
customer s–howmanyar ethereand 53.St
atef iveobj ecti
vesofmar ket
ing
howmucht heywouldbepr eparedto - Toi ncreasesal esrevenue
pay.Itshoul dal
sogivedetailsof
- Toi ncreaseormai ntai
nmar keti
ng
compet it
ion.
- Tomai ntainorimpr ovetheimageof
I
II
. Fi
nance product sorbusi ness.
- Thisshouldgivedetai
l
sofhowf i
nances - Tot argetanewmar ketormar ket
forthebusinessisgoi
ngtober ai
sed.
segment .
Howmuchwi l
lcomefrom savi
ngs,how
- Todev el
opnewpr oduct
sori mprove
muchneedst obeborrowed.
existi
ngpr oducts.
I
V. Cashf
low
- Thi
sshoul
dgi
veall
expectedincomi
ngs 54.Descr
ibe
andout
goi
ngsov
erthefi
rstyear.
V. Busi
nessgr
owt
h/expansi
on 55.(
a)Whatisamar keti
ngmix
- Thebusi
nessshoul
dgi
veani
ndi
cat
ion - Marketi
ngmixisaterm whi
chisusedto
off
utur
eplans. descr
ibeal
ltheacti
vi
ti
eswhichgoint
o
marketi
ngproduct
.

15
 companycoul duse.
(
b)Explaint herol eofproducti nmar ket i
ng
- Promot ionalpr icing–t hisisusedwhen
mix
youwantt opricet hepr oductal alow
- Theproductmustf ul
fi
lawant .I
tmust
pri
cef orasetamountoft i
me
givesatisfactionofsomesor toritwill
- Compet i
tivepr i
cing–t hisinv olves
notbepur chased.Thesat isfacti
on
puttingpr i
cesi nl i
newi thyour
giventoconsumercanv ary.For
compet itorspr i
ceorj ustbel owt heir
exampl esomepr oductsarebr ought
pri
ce.
becauset heysatisfyabasi cneed, l
ike
- Penet rationpr icing–t hiswoul dpossi bly
foodwhi chst opshuger .Ot herproduct s
beusedwhent ryingt oent eranew
li
kear efrigeratorinadditi
ont okeepi ng
mar ketandt hepr icewoul dbel owert han
foodcool woul dbeexpect edt obe
thecompet i
torspr ice
rel
iabl
eandl astal ongtime.
- Psy chol ogicalpr i
cing–i tiswhen
particularat tentioni spai dtot heef f
ect
56.Nameandexpl aint ypesofpr oduct s.
thatt hepr i
ceoft hepr oductwi l
lhave
- Consumergoods–t hesear egoods
uponconsumer sper cept i
onsofa
whi char econsumedbypeopl e.They
product
canbegoodst hatdonotl astl ongsuch
- Priceski mmi ng–t hi
si swhenahi gh
asgoodsandcl eaningmat eri
als.Some
pri
cei ssetf oranewpr oductont he
goodsl astlongt i
meandgi veenj oy ment
mar ket
ov eralongt i
mesuchasf ur ni
tur eand
- Cost -pluspr ici
ng–t hisst hecostof
comput ers.
manuf act uri
ngt hepr oductpl usapr ofit
- Consumerser vices–Thesear eser vi
ces
mar k-up
thatar epr oducedf orpeopl e.Exampl es
includer epairingcar s, shoeshi nningor (
b)Giveanyt wor easonsf orthebusiness
educat ion. t
oadoptdiff
er entprici
ngst r
ategi
es
- Producergoods–Thesear egoodst hat - Totrytobr eakintoanewmar ket
arepr oducedf orot herbusi nessest o - Totryi
ncr easeitsmar ketshare.
use.Theyar eboughtt ohel pwi tht he - Totrytoincreasei tsproduct
s
product ionpr ocess.Exampl esi nclude - Tomakesur eall i
tscostsarecoveredd
Lor r
ies,machi neryorcomponent s. aparti
cularprofitisexpected
- Producerser vices–Thesear eser vi
ces
thatar epr oducedt ohel pot her 59.(
a)Descr ibet heroleofpromot i
onin
busi nesses.Exampl esi nclude mar
ketingmi x.
account i
ng,insur anceandadv er t
ising - Promot i
ongi vestheconsumer s
agenci es. i
nfor mat i
onaboutt herestoft he
mar ketingmi x.Withoutit,consumers
57.Explai
nt heroleofpr i
cei nmar ketingmi x. woul dnotknowaboutt hepr oduct,
the
- Whendeci dingapr iceofanexi sting pri
cei tsellsfororthepl acewher ethe
productoranewpr oduct,thebusi ness producti ssold.
mustbev erycar eful t
ochooseapr ice
(
b)Namecomponent sofpromot ion
whichwi l
lf i
tinwi thther estoft he
(
methodsofpr omotion)
mar ketmixf orthepr oduct.Forexampl e
- Adverti
sement–t hesecant ake
i
fanewpr oducti sofhi ghqual i
ty,itisto
dif
ferentf or
mssuchast elevi
sion
beai medatconsumer swhohav eal ot
magazi nes
ofmoney .I fthi
spr oducti swr appedi n
- Personalsel l
i
ng–Thi sact ual
lyinvol
ves
l
uxur i
ouspackagi ng, buthasal owpr ice,
sendingoutsal esrepresentat
ivesof
consumer swi l
lnott hinkitisagood
businessest otal
kdirectl
ywi t
ht he
qualit
yproductandwi l
lnotbuyi t.
customer .
- Publicrelati
ons–t hi
si nvol
vesmaki ng
58.(
a)Expl
aint
wopr
ici
ngmet
hodst
hata
thepubl i
cawar eofthepr oductofa

16
 companyf orexamplethrough - Tofostergr
eaterproduct
ion,
eff
ici
ency
sponsorshi
porpubl i
cit
yinthemedia. tomeettherequir
edmi ni
mum quarter
- Promotion–t hi
sincl
udespr i
ce onint
ernati
onaltr
ademar ket
s.
reduct
ionsgif
tscompet it
ionsaf
tersal
es
(
b)Eur
opeanUni
on(
EU)
servi
cepremiumsandcoupons
- EUi sanor gani sationdesi gnedt o
remov eal ltradebar ri
erswi thinEur ope,
60.Stat
eandexpl ainf i
vefactorswhi chshould
political andeconomi ci ntegrat i
onand
beconsider
edwhensel ecti
ngt hechannel
creat easi ngl emar ketusi ngasi ngl
e
ofdist
ri
buti
ont ouse.
currencyf oral lthemembernat i
ons
- Whati sthet ypeoft hepr oduct
l
abel edEur o.
- Istheproductv er
yt echnical
- Legal framewor koni nternal aswel las
- Howi st
hepr oductpur chased
exter nal tradei .
e.t oboom i nt ernaland
- Howper ishabl eisthepr oduct
foreignt rade
- Wher earet hecustomer sl ocated
- Toer adi cat et r
adebar r
iersandhav e
- Wher edocompet i
torssel l
thei
rproduct
?
goodcommuni tysoci al welfar e.
- Todev elopi nt ernal aswel las
61.(
a)Explai
nhowcooperat
ivesoci
eti
esar
e
i
nter nat ional count riesespeci all
y
f
ormed
dev elopi ngcount ries.
- Theyarefor
medbymember swhoown
- Toassi stinl iberalisingeconomi csmore
itandareal
soi
tscust
omers.
especi allyinl abour ,economi cand
(b)Gi veanyt wor easonswhycooper ati
ves soci al sect orse. g.wageear nerofone
soci
et i
esar ef ormed memberst atecanwor ki nanyot her
- Toassi stt hemember spurchasegoods memberst atesont hesamet ermse. g.
from theirownsoci et
yatacheaper Doct or s.
price. - Toassi stincr eatingmor eandmor e
- Toassi stmember stofi
ndamar kett
o commonmar ket sf orthesakeof
sellthei
rpr oducts. compet iti
on.
- I tiseasierf ormemberstogetl oanfr
om - Tobr ingr at esofi nf l
ati
ondownand
thesoci ety. deficitsundert hecont rol.
- Formember stoshareideasonhowt o - Tohar nessnewt echnol ogiest hatare
runabusi ness. keyt oi ndust rialcompet it
iveness
(c)Explainhowpr ofitar
esharedamong (
c)EconomicCommuni
tyofWestAf
ri
can
shareholdersincooperati
vesociet
y Stat
es(ECOWAS)
.
- Pr ofi
tsinacooper ati
vesoci
etyare - Promot eregionaleconomi ccooper at
ion
sharednotbasi ngonhowmucheach - Totradecooper ati
onandsel f-
rel
iance
memberi nvest
edbutpurchaseinthe amongWestAf ri
cancount ri
es.
business. - Promot efreemov ementofwor kers
goodsser vicesandcapi t
altomember
62.Gi
vet
heobj
ect
ivesf
ort
hef
ormat
ionof stat
es.
(
a)Sout
her
nAfri
canDevel
opment - Harmoni esagricul
turalpoli
ciessoast o
Communit
y(SADC) beagricult
ur al
l
yexpor tbased.
- Toest abl
ishFTA( FreeTradeArea)
(
d)Af
ri
canCar
ibbeanPaci
fi
c(ACP)
withintheSADCr egion
- Topr omot eanddev eloptradewi
thi
nthe
- Toenhancei ndust ri
ali
sati
onand
region.
economi cdev el
opmentwi t
hintheregi
on.
- Toi mprov etheindustri
aland
- Toi mprovethei nvestmentclimate
agricul
turalcooperationand
withintheregion.
special
ization.
- Tol i
beral
iseinter-r
egionaltr
adein
- Forbetteruseoff i
nancialand
goodsandser vicesinanequi t
abl
e
technologicalresources.
region.

17
 - Toestabli
sht
radi
ngandfi
nanci
al
i
nst
ituti
onswit
hint
hepaci
fi
cregi
on.
67.Explai
nt heobj ectivesofcor porations.
- Tokeeppr i
cel owsot hatev erybodycan
63.Bri
efl
yexpl ai
nhowpr of
itofstateowned
affordtheser vice.
ent
erprisesbenef itt
hepubl ic.
- Tokeeppeopl einj obssot hat
- Thei rpr ofi
tsareusedt oreducetaxes.
unempl oy mentdoesnotr ise.
- Theyar eusedt oimpr ovesocial
- Toof feraser vicet othepubl i
cinall
servi
cese. g.avail
abil
ityofdrugsin
areasoft hecount ry.
hospitals,constr
ucti
onsofschool s
- Tokeept ot heobj ecti
v esof t
encost sa
blockset c.
greatdeal ofmoney .Sopubl i
c
- Expansi onofthebusi nessand
corporationshav eingener al beengi v
en
i
mpr ov ementofser vi
ces.
otherobj ect iv
es.
- Toi ncreaseef fi
ciencyandoper atemor e
64.Descr
ibet
hef
ollowi
ngbusi
ness
l
ike4acompanyi nt hepr i
vatesect or.
document
swhichar
eusedinfor
eignt
rade
- Tocl oseorl ossmaki ngser vi
cesev enif
thi
smeanst hatsomeconsumer sareno
65.Out
li
net
hei mport
anceofglobal
izat
ion.
l
ongerpr ov i
dedwi ththeser vi
ce
- Redi
str
ibut
ionofgl
obaleconomicpower
.
- Deepeni
ngcrossbor
derl
i
nkagesand 68.Descr i
bet hedi f
ferentneedsofpeopl e.
tr
ansact
ions - Basi c/pr imar y(physiologi cal)–t hey
comef irstandmustbesat isfied
- Ther
iseofmul
ti
nat
ional
cor
por
ati
on
regul arly.Theseneedsar ef ood, clothi
ng
andshel ter.
- Saf et y( physi calsurvival)–pr otect i
on
66.(a)whati sthedif
fer
encebetweenat ake- from dangerordepr ivat i
on.Secur ityof
overandamer ger empl oy ment ,adequat er estper i
od,
- At akeovermeanst hatonefirm buysal pensi onandsi ckschemes
oftheassetsofanotherbusinesswhile - Soci al–f riendship,bel onging, l
ove,
amer gerisanagreedjoi
ningtogetherof soci alact ivit
ies(ani ndi v
idual ’
sneeds
twobusinessestocreateonelargerone. forlov eandaf fecti
on)
- Sel f-impor tance( sel
f-est eem)–sel f-
(
b)Expl ainthediff
er encebet weenthe respect ,respectf orot hers, status,
i
nternalandext ernal growthofabusi ness. knowl edge, r
esponsi bili
tyand
- I nternalgrowth(or gani
cgr owth)i
s appr eci ation.
achiev edwhenaf irmincreasesit
ssales, - Sel f-fulfill
ment (self-
real i
zation)–gr owth,
i
t snumberofbr anchesandi t
srangeof creat ivit
y ,met i
ngchal l
engesper sonal
product sbynott akingov erormerging dev elopment
wi t
hanot herbusinesswhi l
eexter
nal
growt hisachievedbyamer gerwit
hora 69.Explainwhypeopl ewor k.
takeov erofanotherbusi ness. - Money–att hemostbasi clevel
,
manki ndi sdr ivenbypur ephy si
ological
(c)Explai
nt woreasonswhysome heeds, suchast henecessityforfood,
businessremainsmall shelterandcl othing.
- Theownerofasmal lbusi
nessmaynot - Secur i
ty–t herei saneedf ora
wanttoav oi
dtherisksandpressur
esof reasonabl edegr eeofsecur i
tynotonl y
expandingthei
rbusiness. againstphy sical dangersbutagainst
- Themar
ketinwhicht hef
ir
m oper
atesin wor r
iesasi l
lnessandunempl oyment
maybever
yspecial
izedandsmalland - Soci alsat i
sf action–t hereistheneed
maypr
eventthebusinessfr
om gr
owing. forsocial relati
onshi ps.Thesespr i
ngs
from inclusioni nf ormalgroups(suchas

18
 factory
, depar t
ment s)andf r
om i nf
or mal arereal
izi
ngourpot ent
ial
thr
ough
groups( suchast hosewhi chdev elop achi
ev i
ngourambi ti
onsandmakingt he
aroundf riendsandwor kcol leagues) mostofourabi l
it
ies.
- self
-impor tance–ever yonel ikestohav e - Patr
ioti
sm –t heneedt oserveot
hers
theself-respectandconf idencewhi ch andloveforthenat ion.
spri
ngsf rom achievinginone’ swor k, - Theneedt ooccupyonesel f–theidea
therecogni ti
on, approval andr espect tokeeponesel fbusysinceanidl
emi nd
from other sforone’sef forts i
sadev i
l’
swor kshop.
- j
obsat isfaction–weal l l
iket ofeel we

DANNI
EH.BOKO

FORTUNEFAVOURSTHEPREPAREDMI
ND

19