Form 4 Business Studies paper 1 questions and answers model test paper 5

Give four main differences between a private limited company and a public limited company

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Explanation/Answer Text:
-Private company has minimum of two shareholders and a maximum of fifty shareholder while a public limited company has a minimum of seven shareholders and no maximum
-In private company share cannot be traded in the stock exchange market while in public share can be traded in the stock exchange market
-In private company, share can only be transferred with consent of all shareholders while in public company share is freely transferable
-private company cannot issue a prospectus whereas a public company can issue a prospectus
-In private company shares cannot be advertised while in public company, shares are advertised.
Questions/Lessons List

1. State four factors that determine the rate of interest charged on borrowed capital ( free lesson)


2. Mention four factors that limit the use of land in Kenya for agricultural production ( free lesson)


3. Highlight four factors that are considered when deciding where to locate an office ( free lesson)


4. State four filing systems that organizations can adopt ( free lesson)


5. Outline four circumstances that will make the consumers to buy products directly from producers ( free lesson)


6. Highlight four reasons why most businesses in Kenya operate on small scale basis ( free lesson)


7. Give four main differences between a private limited company and a public limited company ( free lesson)


8. Highlight four internal sources of capital available to a business ( free lesson)


9. State four characteristics of an efficient transport system. ( free lesson)


10. Give four merits of verbal communication over written communication ( free lesson)


11. State four functions carried out in a warehouse ( free lesson)


12. Mutua and Mutio have taken life assurance policies. State four factors that would make them pay different premium amounts. ( free lesson)


13. Highlight four ways that a government can use to increase the demand of a commodity in the market ( free lesson)


14. Mention four government policies that may encourage location of firms in a certain area. ( free lesson)


15. State four expenses that a wholesaler will incur if he distributes goods on behalf of the producer ( free lesson)


16. Indicate whether each of the following below is either an Income approach,Expenditure approach or Output approach in the measurement of national income. a)Expenditure on fuel b)Government tax c)Cost on finished goods d)Salaries and wages ( free lesson)


17. Outline four disadvantages of under populated country ( free lesson)


18. Outline four ways in which students can prevent unemployment in the future after high school ( free lesson)


19. Classify each of the assets below as either current or fixed a) Stock b) Car c) Debtor d) Prepaid insurance ( free lesson)


20. Outline four measures that central bank of Kenya can use to mop out any excess liquidity in the country ( free lesson)


21. Highlight four factors that influence the amount of money collected by the government through taxation ( free lesson)


22. State four negative effects of inflation to business ( free lesson)


23. Mention four factors that have led to slow economic development in most African countries ( free lesson)