Business Management 2002PC WASSCE-Past Questions and Answers-WAEC

WAEC
Business Management 2002PC WASSCE

WASSCE Past Questions and Answers for Business Management 2002PC is a learning resource. Truly, we have designed this e-learning material to help students pass business management courses or exams.

Notably, this is irrespective of the relevant certificate accreditation board or authority or examining body.

I believe you are imagining what our website can offer you on Business Management past questions?

If so, then just wait and see. Read more.

 

Click on the summary button [≡] to select the links to navigate to the specific section of the page you need. You can always click on back arrow [←] to come back to the table of content here: 

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Table of Content

 

General Overview

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It has assists students to gain admission to business management University of their choice.

Indeed, if there is any business management classes you should attend to gain a business and management degree, then this website is your preferred choice.

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Truly, our site helps you with strategies on how to pass your business management examination. Secondly, we have materials on business management major topics, sub-topics, etc.

Therefore, our site is very helpful to Senior High School – SHS Students across the West African sub-region and the globe.

Notably, some of these countries are Nigeria, Ghana, Sierra Leone, The Gambia and Liberia. 

Also, students in Europe use our business management study manual for exam success. Specifically for this paper, check the questions and the answers just below.

 

The Nature of the Examination

There are two Papers in the examination, (and these are Paper 1 and Paper 2). Paper 1 is made up of 50 objective questions.

It should be noted that there is no Case Study in this year’s examination for private Candidates. Finally, there are 10 questions in the Paper 2. 

They are asked to tests the student’s general understanding of the various topics under business management.

 

The Summary of the Paper

The WASSCE Business management Paper for 2002PC can summarized below:

  • 2002 WASSCE Business Management Paper One;
  • 2002 WASSCE Business Management Paper Two

 

Business Management 2002PC WASSCE-Past Questions and Answers Paper 1

 

Let me show you how to find the answers to the Business Management Questions – Paper 1, Section A. To clarify that, when you read a question, just click on this symbol (˅) that follows the question.

After doing so, the answer will drop down for you. In fact, it is a very simple task.

However, for the purposes of evaluating yourself, you may want to answer the before reviewing the suggested answer (or solution)

  1. The process that involves co-ordinating an organization’s resources to accomplish organizational objectives is   [expand title=””]  D   is the answer -Business Management 2002PC WASSCE   [/expand]
    1. specialization
    2. decentralization
    3. leadership
    4. management

 

  1. The easiest form of business to establish is a   [expand title=””]  A   is the answer -Business Management 2002PC WASSCE   [/expand]
    1. sole proprietorship.    
    2. Partnership     
    3. company
    4. co-operative society

 

  1. Limited Liability in business means that   [expand title=””]  C   is the answer -Business Management 2002PC WASSCE   [/expand]
    1. membership of the business is limited.
    2. there is a limit to the amount of capital required to run the business successfully.
    3. the personal liability of the owners is limited to the amount invested in
      the business.
    4. the size to which the business can grow is limited.

 

  1. Which of the following is not true about small-scale business? They   [expand title=””]  A   is the answer -Business Management 2002PC WASSCE   [/expand]
    1. have easy access to capital
    2. are easy to form
    3. allow for quick decision-making
    4. lack continuity  

 

  1. Which of the following stakeholders of a business directly affect wages and working conditions?   [expand title=””]  D   is the answer -Business Management 2002PC WASSCE   [/expand]
    1. Suppliers        
    2. Competitors
    3. Government   
    4. Unions

 

  1. Which managerial function determines in advance what should be d6ne in the future?   [expand title=””]  D   is the answer -Business Management 2002PC WASSCE   [/expand]
    1. Staffing          
    2. Organizing
    3. Controlling
    4. Planning

 

  1. Ensuring that goods are produced according to set standards falls under the management function of   [expand title=””]  B   is the answer -Business Management 2002PC WASSCE   [/expand]
    1. directing
    2. controlling
    3. planning         
    4. organizing

 

  1. Which of the following directly manages people who physically produce an organization’s goods and services?   [expand title=””]  A   is the answer -Business Management 2002PC WASSCE   [/expand]
    1. Supervisor      
    2. Chief Executive         
    3. Functional Manager
    4. General Manager

 

  1. Group decision making may be limited in a situation where   [expand title=””]  B   is the answer -Business Management 2002PC WASSCE   [/expand]
    1. avoiding mistakes are more important than speed
    2. one member dominates and controls the group
    3. creativity and innovation is required
    4. a change is being implemented

 

  1. When a decision-making situation has been recognized, defined and well described, the next action is to   [expand title=””]  C   is the answer -Business Management 2002PC WASSCE   [/expand]
    1. generate alternative solutions
    2. choose one most suitable alternative
    3. gather additional information
    4. weigh the alternatives against each other

 

  1. The main functions performed in the office include all the following except   [expand title=””]  A   is the answer -Business Management 2002PC WASSCE   [/expand]
    1. giving out information
    2. receiving information
    3. recording information
    4. lending money

 

  1. The office can best be described as a place where   [expand title=””]  B   is the answer -Business Management 2002PC WASSCE   [/expand]
    1. meetings take place.   
    2. clerical work is performed.
    3. visitors are received
    4. a manager works

 

  1. Which of the following is not a function of the personnel department of an organization?   [expand title=””]  A   is the answer -Business Management 2002PC WASSCE   [/expand]
    1. Preparing the payroll
    2. Determination of salaries and wages
    3. Training and development of staff
    4. Provision of welfare services

 

  1. Personal letters received in the office should be   [expand title=””]  C   is the answer -Business Management 2002PC WASSCE   [/expand]
    1. opened by the mailroom supervisor.
    2. opened by the mail clerk and stamped with a date.
    3. delivered directly to the addressee unopened.
    4. carefully opened by the clerk in the presence of the supervisor.

 

  1. An inter-office memorandum should have the following features except   [expand title=””]  A   is the answer -Business Management 2002PC WASSCE   [/expand]
    1. a salutation
    2. a brief subject heading
    3. the name of the recipient
    4. a date

 

  1. Which of the following is the best way for the receptionist of Judydon Limited to answer a phone call in the morning?   [expand title=””]  C   is the answer -Business Management 2002PC WASSCE   [/expand]
    1. “Hello, good morning, who is speaking?”
    2. “Hello, good morning, Anything?”
    3. “Good morning, Judydon Ltd.”
    4. “Hi, good morning.”

 

  1. The main purpose of an absent card in a filing system is to   [expand title=””]  C   is the answer -Business Management 2002PC WASSCE   [/expand]
    1. allow easy handling of records.
    2. facilitate the combination of records in the cabinet.
    3. trace a file removed from the cabinet.
    4. enable cards to be filed easily.

 

  1. Which of the following is the most appropriate source of information on a living important personality?   [expand title=””]  B   is the answer -Business Management 2002PC WASSCE   [/expand]
    1. Encyclopaedia
    2. Who’s who
    3. Dictionary      
    4. Hansard

 

  1. The manager’s organizing function determines   [expand title=””]  B   is the answer -Business Management 2002PC WASSCE   [/expand]
    1. goals to be pursued in future
    2. how to define, group and assign job duties
    3. the orders and directives to be issued to accomplish the job
    4. whether plans are being carried out

 

  1. Under autocratic leadership, motivation is derived through   [expand title=””]  D   is the answer -Business Management 2002PC WASSCE   [/expand]
    1. intimidation of all kinds.
    2. increased job satisfaction.
    3. managers and employees working together.
    4. employees being free to do whatever it takes to achieve goals.

 

  1. Which of the following is not an advantage of centralization? It   [expand title=””]  A   is the answer -Business Management 2002PC WASSCE   [/expand]
    1. reduces the burden on top management.
    2. ensures uniformity and standardization.
    3. leads to full utilization of specialist staff.
    4. minimizes duplication of efforts.

 

  1. Which of the following makes it possible to utilize the skills and abilities of subordinates effectively?   [expand title=””]  A   is the answer -Business Management 2002PC WASSCE   [/expand]
    1. Delegation of authority
    2. Autocratic leadership
    3. Centralization of authority
    4. Managerial planning

 

  1. A means of organizational communication which cuts across formal channels of communication is   [expand title=””]  D   is the answer -Business Management 2002PC WASSCE   [/expand]
    1. upward
    2. Downward
    3. grapevine
    4. vertical

 

  1. Conversation between two colleagues in an office about how to spend the Christmas holidays is an example of   [expand title=””]  C   is the answer -Business Management 2002PC WASSCE   [/expand]
    1. horizontal communication.
    2. formal communication
    3. informal communication
    4. vertical communication.

 

  1. Communication gap exists in an organization where   [expand title=””]  B   is the answer -Business Management 2002PC WASSCE   [/expand]
    1. the wrong information is given to staff.
    2. information is withheld from people who require it.
    3. people are not allowed to talk in the office.
    4. a message is misunderstood.

 

  1. In the law of contract, acceptance by post is complete when the   [expand title=””]  B   is the answer -Business Management 2002PC WASSCE   [/expand]
    1. letter of acceptance is written.
    2. offeror acknowledges receipt.
    3. letter of acceptance is received by the offeror.
    4. letter of acceptance is posted.

 

  1. When an offeree changes any of the terms of the offeror’s offer   [expand title=””]  C   is the answer -Business Management 2002PC WASSCE   [/expand]
    1. he has made an unconditional acceptance.
    2. mutual assent has taken place.
    3. he has made a counter offer.
    4. the first offer still holds.

 

  1. In law, an offer can be revoked   [expand title=””]  C   is the answer -Business Management 2002PC WASSCE   [/expand]
    1. after it has been accepted
    2. anytime it is accepted
    3. before it is accepted
    4. when no one accepts it

 

  1. Which of the following situations could lead to the creation of agency by ratification?   [expand title=””]  B   is the answer -Business Management 2002PC WASSCE   [/expand]
    1. An agent acts contrary to the instructions of his principal.
    2. A duly appointed agent exceeds his authority.
    3. The agent makes secret profit from his transactions.
    4. The agent acts in good faith.

 

  1. An agent whose authority is limited to the performance of a specific act is a   [expand title=””]  ¢   is the answer -Business Management 2002PC WASSCE   [/expand]
    1. general agent
    2. special agent
    3. del credere agent
    4. universal agent.

 

  1. The one who orders money to be paid through a bill of exchange is the   [expand title=””]  D   is the answer -Business Management 2002PC WASSCE   [/expand]
    1. acceptor
    2. drawee
    3. notary public
    4. drawer

 

  1. When a country produces certain goods at a lower cost than other countries, it is referred to as the   [expand title=””]  C   is the answer -Business Management 2002PC WASSCE   [/expand]
    1. principle of large numbers.
    2. principle of marginal utility.
    3. principle of comparative advantage.
    4. principle of integration.

 

  1. Which of the following is not a function of money?   [expand title=””]  B   is the answer -Business Management 2002PC WASSCE   [/expand]
    1. A medium of exchange
    2. An inflation hedge
    3. A store of value
    4. measure of value

 

  1. The function of money that describes the price or relative value of items bought or sold is   [expand title=””]  B   is the answer -Business Management 2002PC WASSCE   [/expand]
    1. store of value
    2. unit of account
    3. medium of exchange
    4. of deferred payment.

 

  1. Which of the following is the most reliable way of collecting revenue in developing countries?   [expand title=””]  D   is the answer -Business Management 2002PC WASSCE   [/expand]
    1. Proportional taxes
    2. Flat rate taxes
    3. Direct taxes
    4. Indirect taxes

 

  1. Some business risks are uninsurable because   [expand title=””]  A   is the answer -Business Management 2002PC WASSCE   [/expand]
    1. their occurrence is unlikely.
    2. the extent of damage cannot be quantified.
    3. they attract new premium.
    4. their occurrence is frequent.

 

  1. The principle of insurance which ensures that an insured person does not make any gains as a result of loss suffered is   [expand title=””]  C   is the answer -Business Management 2002PC WASSCE   [/expand]
    1. compensation
    2. reward
    3. indemnity
    4. insurance claim

 

  1. The amount of premium to be paid by an insured to the insurer is usually determined by the   [expand title=””]  C   is the answer -Business Management 2002PC WASSCE   [/expand]
    1. financial status of the insured
    2. profitability of the insurance company.
    3. nature and type of risk insured.
    4. size of the insurance company.

 

  1. Which of the following is not an advantage of the use of the franking machine?   [expand title=””]  A   is the answer -Business Management 2002PC WASSCE   [/expand]
    1. It ensures express delivery of mail.
    2. It prevents pilfering or misuse of stamps.
    3. It prevents the removal of stamps affixed on envelopes through handling.
    4. More letters can be franked within a short time.

 

  1. The part of the computer which is responsible for computation, comparing and re-arrangement of data is the   [expand title=””]  B   is the answer -Business Management 2002PC WASSCE   [/expand]
    1. input unit
    2. control unit
    3. random access memory
    4. arithmetic logic unit.

 

  1. Which of the following is not normally included in an appointment letter?   [expand title=””]  D   is the answer -Business Management 2002PC WASSCE   [/expand]
    1. Date of commencement of the business.
    2. Rate of remuneration.
    3. Effective date of appointment.
    4. Notice to be given on termination of appointment.

 

  1. The main reason for conducting recruitment interviews is to   [expand title=””]  B   is the answer -Business Management 2002PC WASSCE   [/expand]
    1. negotiate pay with the applicant.
    2. access the suitability of the applicant for the job.
    3. meet the applicant personally.
    4. give the applicant information about the organization.

 

  1. Which of the following is an internal source of recruitment?   [expand title=””]  A   is the answer -Business Management 2002PC WASSCE   [/expand]
    1. Retrained employees
    2. Former employees
    3. Advertisements
    4. Management consultants

 

  1. Which of the following is an example of incentives offered by organizations?   [expand title=””]  C   is the answer -Business Management 2002PC WASSCE   [/expand]
    1. Hourly wage
    2. Monthly salary
    3. Overtime
    4. Bonus

 

  1. XYZ Company Limited produces bar soaps, detergents and liquid soap. This is   [expand title=””]  A   is the answer -Business Management 2002PC WASSCE   [/expand]
    1. product line.
    2. product mix.
    3. product differentiation.
    4. brand names.

 

  1. The types of advertisement which creates the impression that a particular product is better than all similar products is   [expand title=””]  D   is the answer -Business Management 2002PC WASSCE   [/expand]
    1. informative advertisement.
    2. persuasive advertisement
    3. product advertisement
    4. competitive advertisement

 

  1. Which of the following is not a feature of the growth stage of a product’s life cycle?   [expand title=””]  C   is the answer -Business Management 2002PC WASSCE   [/expand]
    1. Competitors start coming into the market
    2. Competition becomes more aggressive
    3. Profitability is at its peak
    4. There is much product variety

 

  1. The modern marketing concept lays emphasis on the   [expand title=””]  A   is the answer -Business Management 2002PC WASSCE   [/expand]
    1. consumer
    2. product
    3. market
    4. price

 

  1. Shared management and solid knowledge are not advantages of   [expand title=””]  C   is the answer -Business Management 2002PC WASSCE   [/expand]
    1. partnerships.
    2. private limited companies.
    3. sole proprietorships.
    4. public limited companies.

 

  1. Short-term sources of finance for a small business include   [expand title=””]  B   is the answer -Business Management 2002PC WASSCE   [/expand]
    1. debentures
    2. overdrafts
    3. ordinary shares
    4. mortgage loans.

 

I’m sure you are going to evaluate your performance with regards to the objective questions above. Let me emphasize again that the answers to the objective questions can be found by clicking on the symbol (˅) just after the question.

Now let’s proceed to the Paper 2 just below:

 

Business Management 2002PC WASSCE-Past Questions and Answers- Paper 2

This section of the examination is made up of essay-type questions. That normally require you to mostly, state and explain your various points.

As I have always said, it is better to first answer the questions on your own before referring to the answer from the drop-down symbol. I must emphasize that there is no Case Study in this examination.

Let me show you how to find the answers to the Business Management Questions – Paper 2. When you read a question, just click on this symbol (˅) beside it, and the answer will drop down for you. It is a very simple task.

 

1.   (a) State and explain four distinguishing features of a public limited liability company.

Suggested Answer:   [expand title=””]

  • Ownership: – The ownership is in the hands of shareholders. However, the company is a legal entity, in other words, it is a legal person and separate from its members.
  • Number: – Membership consists of at least seven members. There is no statutory maximum number of members.
  • Capital: – The public company issues prospectus inviting the public to buy shares in order to commence business or increase its share capital. Other sources include:- overdraft from the bank, selling debentures, purchase of stock on credit etc.
  • Transferability of shares: – The shares of a public company are freely transferable. Shares are bought and sold through the stock exchange without any restrictions by the company.
  • Publications of accounts: – By law, public limited companies must prepare final accounts and publish the accounts at the end of its accounting year for public assessment of their performance.  [/expand]

1.   (b) Explain four functions of the Board of Directors of a company.

Suggested Answer:   [expand title=””]

  • Board of Directors are responsible for determining the objectives of a company both in the short and long run.
  • They also ensure that the management of the company operates within laid down rules, regulations and procedures.
  • They also act in the best interest of employees, shareholders and other
  • Board of Directors are also responsible for recruiting the managing director or financial controller of a company.  [/expand]

 

2.   (a) Mention two types of decisions manages make.

Suggested Answer:   [expand title=””]

  • Programmed decisions: – These are repetitive and follow routine procedures. They are decisions made by managers aimed at solving routine problems. They do not require much thought as they follow a laid down procedure. This type of decision can be delegated to lower levels.
  • Unprogrammed decisions: – They are non-routine, non-repetitive and depends on the discretionary powers of a manager. There is high degree of uncertainty and thus cannot be delegated to lower levels. It involves people and things, e.g. launching of new products, personnel appointments, mergers and acquisitions etc.  [/expand]

2.   (b) Identify and explain four major categories of decision-makers in business.

Suggested Answer:   [expand title=””]

  • Board of Directors: – A board of directors is a decision-maker in business because, it determines company’s objectives and formulates policies for the smooth running of the organization. Board of directors also plan, organize, direct and control the activities of the business, and at each stage they make decisions.
  • Managing Directors: – These are also a group of decision-makers. As top-level managers, they formulate policies, set objectives, define strategies and make decisions that affect the whole organizational setup.
  • Shareholders: – They are the owners of the business. They invest their capital in a business because they want to have a share in its yearly profits. They are a group of decision-makers because they help in formulating policies and strategies. They normally appoint board of directors to manage the business on their behalf. Their decision-making power is normally exhibited during voting.
  • Line Managers: – These are managers who work at the middle level and include the personnel manager, marketing manager, production manager etc. They are responsible for implementing the overall policies of the organization. They are also a group of decision-makers because they also formulate policies and make decisions for the smooth operation of their various departments.  [/expand]

 

3.   (a) who is a stakeholder of a business.

Suggested Answer:   [expand title=””]

A stakeholder is any person within or outside the organization who has interest in the organization’s performance, e.g. employees, shareholders, government, suppliers, customers etc.  [/expand]

3.   (b) Explain the following:

  • Primary Stakeholder
  • Secondary Stakeholder

Suggested Answer:   [expand title=””]

  • A primary stakeholder is that person or group of persons who are directly and
    closely affected by the operations of the business, e.g. shareholders, employees etc.
  • A secondary stakeholder is that person or group of persons who are not closely
    and directly affected by the operations of the business, e.g. Government, professional bodies, pressure groups etc.  [/expand]

3.   (c) Identify three primary stakeholders of a business and explain how they are affected by the operations of the business.

Suggested Answer:   [expand title=””]

  • Shareholders: – These are those who invest their capital in a business because they want to have a share in its yearly profits. They are affected by the operations of the business in the sense that when the business makes more profit, they also earn more on their shares in the form of dividends and when the busines makes less profit, they get less as dividends on their shares.
  • Employees: – These are people who work in the organization. They are affected by the operations of the business. The survival of the business depends on Where the company fails to make profit, or even cover its cost of production, it will be compelled to lay off its workers. Employees are therefore required to put in their best to ensure that high quality and not shoddy goods are produced. This way the company can sell more, make some profit and retain them.
  • Creditors: – These are individuals or institutions to whom debts are owed because they provided some financial assistance to the business. They are affected by the operations of the business because it is only when the business makes profit that it will be able to pay interest on the loan.  [/expand]

 

4.   (a) What is meant by centralization of office services?

Suggested Answer:   [expand title=””]

Centralization of office services refers to the arrangement where services that are used by all departments of an organization are organized at a central point under the control of a superior or supervisor, e.g. of offices services that could be centralized include accounts, mail handling, duplicating, filing, stationery, office supplies etc.  [/expand]

4.   (b) Explain five benefits an organization is likely to derive from the centralization of some of its services.

Suggested Answer:   [expand title=””]

The five benefits for centralization of office services include:

  • Centralization promotes improved supervision and administrative control.
  • It ensures economic utilization of office equipment and staff resources.
  • It also makes good use of specialists and experts.
  • Duplication of services and personnel is avoided and thus it is cheaper or less
  • It also ensures conformity and uniformity in methods and procedures. That is,
    it is easier to ensure-consistency in procedures.  [/expand]

4.   (c) State three problems associated with centralization.

Suggested Answer:   [expand title=””]

  • Unsuitable for confidential work.
  • Too rigid control from the centre may cause frustration.
  • Delays in work operations may occur. Delays through location and  [/expand]

 

5.   (a) What five functions could be considered in the acquisition of office machines.

Suggested Answer:   [expand title=””]

The factors that could be considered in the acquisition of office machines include:

  • Cost: – The amount or capital involved in purchasing the machine, and its running cost, e.g. Materials needed, does it save money?
  • Is there accuracy in recording? The machine must be capable of providing accurate information.
  • Is the machine capable of performing various functions or only one function? enable producers to sell their goods at a reduced price in order to ensure constant demand.  [/expand]

5.   (b) Mention and explain four ways by which office machines may be acquired.

Suggested Answer:   [expand title=””]

  • Cash purchase: – The organization can buy an office machine with cash.
  • Hire purchase agreement: – Under this agreement, the company undertakes to pay for the machine in instalments after an initial deposit has been paid. It is only upon paying the last instalment that the machine belongs to the company (buyer).
  • Credit purchase: – Here, the company buys the machine on credit backed by a promise to pay at a future date.
  • Borrowing: – One can also acquire an office machine by borrowing from friends and relatives.
  • Leasing: – Here, the company can acquire an office machine by renting it from individuals or organisations.  [/expand]

 

6.   (a) Explain four benefits of international trade.

Suggested Answer:   [expand title=””]

  • It Widens/Expands the Market: – International trade widens the extent of a country’s market. Countries will no more be limited to their domestic markets. They have many foreign markets to sell their goods when they engage in international trade. For example, because of international trade, Ghana is able to sell goods in United Kingdom, France, Germany, Belgium and others.
  • Countries Enjoy Variety of Goods: – International trade enables countries to enjoy different kinds of goods including those they cannot produce themselves.
  • Foreign Exchange Earnings: – International trade is seen as a source of foreign exchange and hence enables countries to earn enough foreign exchange needed to finance projects meant to speed up the rate of economic growth and development. For example, because of international trade, Ghana is able to earn $1,270m in 1994 from exports.
  • Reduces Unemployment Problems: – International trade helps in reducing unemployment problems or opens up employment avenues both directly and indirectly, since international trade leads to efficient allocation of resources and optimal utilization of scarce resources, resources, which might have been lying idle, would be employed. Labour from one country can be employed in another country.
  • Sources of Government Revenue: – International trade enables countries to raise enough revenue needed to finance development projects. This revenue can be realized through the imposition of export and import duties. For example, in 1995 taxes from international trade accounted for 28% of total government revenue. (Ministry of Finance, Policy Analysis Division)
  • Specialization: – International trade makes international specialization possible and hence leading to increase production at a reduced cost. This will  [/expand]

6.   (b) State and explain two reasons why countries continue to restrict trade despite the many benefits derived from it.

Suggested Answer:   [expand title=””]

NB: Refer to 1999 (SC) Paper Two Question 10(a) for the suggested solution.  [/expand]

 

7.   (a) Abu, a 12-year old school boy, entered into a contract with a dealer for the supply of some textbooks. Four different books were later supplied to him totalling ¢80,000.00. Abu however failed to pay for the books as promised. The dealer demanded the money but Abu’s father claims that Abu is a minor and that he has no capacity to enter into contract.

The dealer threatens to take legal action. Advise the dealer.

Suggested Answer:   [expand title=””]

Abu, a 12-year old boy, is a minor claimed by his father and the dealer should be aware of this. Even though the books supplied were for the training and education of the boy and thus a beneficial contract, the amount of 80,000.00 of books supplied were deemed not to be necessary as he cannot afford to pay so much. Hence the dealer cannot take legal action against the minor for failing to pay for the books as promised.  [/expand]

7.   (b) Explain the following:

  • Breach of contract
  • Innocent misrepresentation

Suggested Answer:   [expand title=””]

  • A breach of contract occurs when a party fails to perform all or one of his obligations under the contract, e.g. if he fails to perform on the agreed date.
  • Innocent misrepresentation occurs where a person makes a false statement believing what he says is true. In other words, on entering into a contract, if one of the parties makes a false statement in order to induce the other party to enter into a contract with him, believing that the statement is true, he commits innocent misrepresentation, it is therefore a statement, which the maker honestly believes to be true.  [/expand]

 

8.   (a) Mention and explain four factors that should be taken into account in demanding appropriate salary and wages levels for employees.

Suggested Answer:   [expand title=””]

The personnel manager takes the following factors into consideration when determining the pay structure of a firm

  • The Cost of Living: – This occurs when wages and salaries move in step with the consumer price index. When the cost of living is rising, workers clamour for increase in wages and salaries. The company must reasonably raise its salary level to enable employees cope with the rising prices of goods and services.
  • Ability to Pay: – The ability of the organization to pay affects the general level
    of wages and salaries. It will be a mistake to accept a proposed salary without assessing the ability of the organization to pay. Companies, which make high profits, are able to pay higher wages and salaries than less profitable companies.
  • Bargaining Power: – Wages and salaries are sometimes determined by the bargaining power of the employer and the unions. A high demand by the union may lead to high salary levels.
  • Differential Abilities of Employees: – Wages and salaries must commensurate performance or output. Hard working employees should therefore be rewarded higher.
  • Labour Laws: – Companies are required by law to set their wages and salaries
    to conform to the government’s minimum wage legislation.
  • Competition: – In order to attract labour, especially in an industry where
    labour is scarce, a firm may pay comparatively higher than what is paid by other firms in order to attract labour from competitive firms.  [/expand]

8.   (b) State four disadvantages of selection interviews.

Suggested Answer:   [expand title=””]

  • It is very expensive to administer interviews. The cost involved can sometimes be high.
  • A potentially good candidate may perform below standard because he was nervous during the interview.
  • Interviewers can sometimes be bias towards some candidates.
  • A very good candidate may not be selected because he is not good at oral language.  [/expand]

 

9.   (a) Mention and explain four monetary tools which may be used by the central bank to control the amount of money in circulation in a country.

 

Suggested Answer:   [expand title=””]

NB: Refer to 1995 Paper One Question 6(b) for suggested solution.  [/expand]

9.   (b) State any four advantages of operating a current account with a bank.

Suggested Answer:   [expand title=””]

  • A current account holder can go to the bank as many times as he wishes in a day to withdraw money.
  • He does not necessarily has to go to the bank personally to withdraw money. He can sign a cheque for somebody to withdraw the money for him.
  • He can make payments by issuing cheques.
  • He can enjoy bank overdrafts and salary advance.  [/expand]

 

10.   (a) Explain the term marketing mix.

Suggested Answer:   [expand title=””]

The term marketing mix is used to describe the blending or combination of the four major inputs in marketing, namely product, price, promotion and place. They are also referred to as the 4 P’s. They assist the marketing department achieve its objective of satisfying its consumers.  [/expand]

10.   (b) Describe the elements in a firm’s marketing mix.

 

Suggested Answer:   [expand title=””]

N.B. Refer to 1993 Paper Two Question 3 for the suggested Answer.  [/expand]

 

 

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