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Cfu 100: Business Studies. Question Paper
Cfu 100: Business Studies.
Course:Bachelor Of Commerce
Institution: Kca University question papers
Exam Year:2009
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UNIVERSITY EXAMINATIONS: 2008/2009
FIRST YEAR STAGE 1 EXAMINATION FOR THE DEGREE OF
BACHELOR OF COMMERCE
CFU 100: BUSINESS STUDIES.
DATE: APRIL 2009 TIME: 2 HOURS
INSTRUCTIONS: Answer question ONE and any other TWO questions
QUESTION ONE
a) Mbukinya bus service operated in the nineties in the western Kenya region. The business
environment then was a free for all; their buses plied many routes and were driven at very high
speed especially during peak seasons such as Christmas and Easter holiday to make as much
profit as they could at the expense of the customers’ safety and the wear and tear on the buses.
They did not have reliable booking office and they relied on rowdy touts who roughed up the
potential customers forcing them to travel with this company’s buses at the Machakos country
bus terminus. The passengers grudgingly boarded their buses as they feared the mugging by
the rowdy touts. This continued to be the trend until the bus company went under in the year
2000.
Crown bus service on the other hand started its operations in 2006 also in the same route, as it
begun its operations it found a regulated business environment. The public transport rules that
restricted the buses to specific routes, treatment of customer with respect, the staff wearing
uniform among other stipulated issues that had serious impact on public transport operations.
The bus company also has specific booking offices and provides their customer with free
drinking water and embraces electronic and mobile booking service where their customers can
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book even without physically walking to the booking office, which customers have
commended as value enriching service. Their buses only stops at designated booking offices
along the routes they ply and leave the booking offices at designated times making their
customers plan their travels and schedule very well.
i) From the above case discuss FOUR reasons that might have made Mbukinya Bus
Company to fail. [8 marks]
ii) Bring out the main business environmental factors that crown bus service may have
addressed as opposed to Mbukinya. [10 marks]
iii) If you were asked to develop a business plan for Mbukinya Bus service. Discuss the
major components of this plan and briefly explain the importance of each component to
the success of the company. [12 marks]
QUESTION TWO
a) Businesses today no longer have to operate as if they are in a vacuum. They have a social
responsibility to operate in certain ways to various stakeholders in their environment. Briefly
discuss TEN responsibilities a business has to customers/consumers. [10marks]
b) Briefly discuss five criteria that can be used to evaluate ethical managers from unethical
managers. [10 marks]
QUESTION THREE
a) Briefly discuss any five disadvantages that limited/ incorporated companies have over other
forms of businesses [10 marks]
b) Distinguish between public limited company and private limited company [2 marks]
c) Companies are subjected to many legal prescriptions than other forms of business ownership.
Outline eight of such prescriptions that they have to meet before they can operate. [8 marks]
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QUESTION FOUR
a) Highlight FOUR major characteristics of pure capitalism economic system. [4 marks]
b) Every company should be headed by an effective board, which is collectively responsible for
the success of the company. Briefly highlight EIGHT principles supporting an effective board
in the organization [16 marks]
QUESTION FIVE
a) Henri Fayol is often regarded as the father of modern management theory. Outline the fourteen
management principles he developed. [14 marks]
b) The job of today’s manager continues to become more complex, he requires different skills to
perform it. Briefly discuss any THREE skills that a manager may use in his job. [6 marks]
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