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Bcom 100: Introduction To Business Question Paper

Bcom 100: Introduction To Business

Course:Bachelor Of Commerce

Institution: Chuka University question papers

Exam Year:2013

CHUKA

UNIVERSITY

UNIVERSITY EXAMINATIONS
FIRST YEAR EXAMINATION FOR THE AWARD OF
DEGREE OF BACHELOR OF COMMERCE

BCOM 100: INTRODUCTION TO BUSINESS

STREAMS: BCOM Y1S1 TIME: 2 HOURS

DAY/DATE: TUESDAY 6/8/2013 2.30PM – 4.30 PM

INSTRUCTIONS:

1. Answer questions ONE and any other TWO Questions
2. Marks will be awarded for clarity and originality of ideas
3. Do not write on the Question Paper

1. Recently Happy Company carried an advertisement that it wants to change status form a
private company to a public company and will be having an IPO. A friend of yours does not really understand the meaning of this. He, however, has been informed that he can make money out of this transaction by buying shares in the company. He has sought your advice on this transaction.

(a) Explain an IPO, giving the full name that an IPO stands for, and explain why an IPO is important to a company. [5 Marks]

(b) “Happy Company can choose to raise money from the public by either getting equity capital (capital) or loan capital”. Explain this statement showing the different types of equity and loan capital the company can use. [10 Marks]

(c) Highlight the two major ways your friend can make money from shares.
[2 Marks]

(d) Explain the task environment of a business and illustrate any 3 factors in the task environment showing how they affect the business. [8 Marks]

(e) What is E-commerce and what benefits can be derived from E-commerce.
[5 Marks]

2. (a) The partners at Kaluki and Kavilu associates are active partners. They have been
considering hiring some people to perform various functions in the business. However, they have been disagreeing on the need for the human resources function. Explain to the partners the role of the human resource department illustrating these roles with practical scenarios that can arise in the partnership. [10 Marks]

(b) Organizations differ in how socially responsible they are. Some have very high
social responsibility while others have very low social responsibility. Define corporate social responsibility and show the approaches managers may adopt in CSR. [10 Marks]

3. (a) You have been appointed the manager at Zuri Fabrics. Your boss indicates that
the business has not been performing well and from your analysis it seems the reason is because there is no control of the business. What is controlling and what process would you apply to control the business. [10 Marks]

(b) Distinguish between capital markets and money markets and explain the concept of financial markets efficiency showing the levels of efficiency. [10 Marks]

4. (a) Despite planning being a key function of management, it is common to find
managers who do not plan at all. Explain why managers may not plan and how you would overcome these hindrances to planning. [10 Marks]

(b) With the rise in poverty levels and businesses making very huge profits, society sometimes questions the need for businesses. Why are businesses important in society? [10 Marks]
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Bcom 100: Introduction To Business Question Paper

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