The Nature of Business

Question 1

explain the development of barter

Answer 1

Explanation of the concept,
advantages and
disadvantages of barter.

Question 2

describe the role of money

Answer 2

Brief history from subsistence economy to
money economy.

Question 3

identify the

instruments of exchange

Answer 3

Instruments of exchange/payments:

(a) barter;

(b) bills of exchange;

(c) electronic transfer;

(d) tele-banking and e-commerce;

(e) cheques;

(f) money order;

(g) debit cards;

(h) credit cards;

(i) bank draft;

(j) telegraphic money transfer;

(k) bank transfers; and,

(l) M-money/mobile money and mobile wallets.

Question 4

differentiate between private and public sectors

Answer 4

Concept of private and public sectors

Question 5

interpret information on various instruments of payment

Answer 5

Interpretation and significance of information on instruments of payments.

Question 6

forms of business organisations and arrangements

Answer 6

Forms of business organisations and arrangements: formation, management and characteristics of:

(a) sole trader;

(b) partnerships;

(c) co-operatives;

(d) companies (including private and public limited companies)

(e) franchises.

Question 7

sole trader

Question 8

partnership

Question 9

franchise

Question 10

private and public limited companies

Question 11

differentiate among the types of economic systems

Answer 11

Types of economic systems:

(a) Traditional (subsistence).

(b) Command or planned (socialist).

(c) Free market or capitalist.

(d) Mixed (public and private).

Question 12

functional areas of a business

Answer 12

• Production,
• Marketing,
• Human Resource
  Research and Development

Question 13

stakeholders involved in business activities

Answer 13

• Owners,
• employees,
• consumers,
• suppliers,
• communities,
• environment,
• future generations
• and government.

Question 14

discuss the

role and functions of the stakeholders involved in
business activities

Answer 14

(a) employers;

(b) employees: to provide labour services;

(i) the role as an accounts clerk
- to serve as support to the accountant
- to verify, organize, process and store the financial records of the company;

(ii) the role of a compliance officer
– to ensure that the business operates in accordance with accepted standards
– to execute the compliance policy to ensure that the business meets
professional and accepted business standards.

(c) consumers;

(d) suppliers;

(e) communities; and,

(f) government

Question 15

ethical and legal issues in the establishment and operations of a business

Answer 15

• Ensuring that the business is a bonafide firm or establishment and not using it as a front for money laundering and other illicit activities.
• Ensuring that capital is legally obtained and not tainted with illegal operations as the source of funding.
• In the operations of a business, payment of national insurance contributions and taxes.

Question 17

principles that must be adopted in the establishment and operation of a business

Answer 17

• The adoption of an organisation code of ethics.
• Policies on environmental issues.
• Handling of personal information.

Question 18

consequences of unethical and illegal practices in
business

Answer 18

The negative effects of unethical and illegal practices on the business, for example:

(a) misleading advertisements – unfair and fraudulent practice on the
population;

(b) withholding of tax – cheating the government of revenue;

(c) unethical disposal of waste – pollution; and,

(d) money laundering – distortions in the national economy.

Question 19

careers in the field of business.

Answer 19

(a) Advertising and Public Relations.

(b) Compliance Officers.

(c) Strategic Planners.

(d) Educators (online and face-to-face).

(e) Information Officers.

(f) Entrepreneurs.

(g) Resource Personnel.

(h) Web Designers.

(i) Web Planners.

(j) Software Developers.