Study resources on Kenyaplex

Get ready-made curriculum aligned revision materials

Exam papers, notes, holiday assignments and topical questions – all aligned to the Kenyan curriculum.

Or go directly to:

Class notes Holiday assignments Topical questions Other resources

State FOUR economic effects of taxation to a country's economy.

Answers

- It can lead to reduction in foreign capital
- It can lead to reduction of consumption as disposable income is reduced
- It can discourage saving by individuals and companies
- Some types of taxes may lead to inequality in the distribution of income and wealth
- Heavy taxes may affect peoples morale to work for monthly wages.

sharon kalunda answered the question on September 4, 2019 at 11:24

Answer Attachments

Next: The following are types of internal and external environments

Previous: State FOUR Ways in which advertising agencies assist in sales promotion.

View more Business Studies Questions and Answers | Return to Questions Index

Exams With Marking Schemes

Related Questions

The following are types of internal and external environments (Solved)

The following are types of internal and external environments. Technological, Business structure, Demographic and physical.In the table below , write the type of environment that suits the description.

Date posted: September 4, 2019 . Answers (1)
Record the following transactions in a two column cash bookand balance it off as at January 12^th2008 January 1 Started business with capital sh. 10,000... (Solved)

Record the following transactions in a two column cash bookand balance it off as at January 12^th2008

January 1 Started business with capital sh. 10,000 cash and sh. 25,000 bank overdraft
January 2 bought stock in cash sh. 6,000
January 3 cash sales sh. 2,500
January 7 bought stock worth sh. 5,000 on credit
January 12 withdrew cash from bank for office use sh. 4,000

Date posted: September 4, 2019 . Answers (1)
Atemo is the head of the marketing team at ABC Company that has recorded tremendous increase in volume of sales over the last four years.... (Solved)

Atemo is the head of the marketing team at ABC Company that has recorded tremendous increase in volume of sales over the last four years. Highlight four attributes that she possess.

Date posted: September 4, 2019 . Answers (1)
The following balances were extracted from the books of Asena Enterprises on 30^th June, 2006. ... (Solved)

The following balances were extracted from the books of Asena Enterprises on 30^th June, 2006.

Shs.
Gross profit........................... 120,000
Rent Income ............................100,000
Dividends received..................... 200,000
Salaries................................ 300,000
Carriage outwards........................ 10,300
Discount allowed .........................21,000

Prepare Asena's Enterprises profit and loss account for the year ended 30^th June,2006.

Date posted: September 4, 2019 . Answers (1)
The following transactions took place in the business of Darasile Traders in Kisumu year 2013.July 1^st: Started business with capital in cash Kshs.150,000.July 2^th: Opening... (Solved)

The following transactions took place in the business of Darasile Traders in Kisumu year 2013.

July 1^st: Started business with capital in cash Kshs.150,000.
July 2^th: Opening a bank account and deposited Kshs.30,000.
July 3^th: Bought buildings in cash Kshs.60,000.
July 4^th: Borrowed a loan in cash Kshs.20,000.
July 5^th: Bought stationery by cheque worth Kshs.6,000.
July 6^th: Repaid part of the loan by cheque Kshs.10,000.

Required:
(i) Record the above transactions in their various ledger accounts.
(ii) Prepare a trial balance.

Date posted: September 4, 2019 . Answers (1)
The following information relates to Kuwa‘s business for the year ended 31st May 2010. Net profit Sh.20,000 Working capital Sh.30,000 Return on capital 20% Employed Determine the value of: (a) Capital... (Solved)

The following information relates to Kuwa‘s business for the year ended 31st May 2010.
Net profit Sh.20,000
Working capital Sh.30,000
Return on capital 20%
Employed
Determine the value of:
(a) Capital employed.
(b) Fixed assets.

Date posted: September 4, 2019 . Answers (1)
Indicate the type of journal in which each of the following transactions would be recorded. (Solved)

Indicate the type of journal in which each of the following transactions would be recorded.

Date posted: September 4, 2019 . Answers (1)
Write the account to debit and credit in the following transactions written below. (Solved)

Write the account to debit and credit in the following transactions written below.

Date posted: September 4, 2019 . Answers (1)
Highlight four reasons why mail order business is not very popular in Kenya. (Solved)

Highlight four reasons why mail order business is not very popular in Kenya.

Date posted: September 4, 2019 . Answers (1)
Highlight four advantages of having inland container depots (ICDS) in Nairobi, Kisumu, Eldoret and Malaba. (Solved)

Highlight four advantages of having inland container depots (ICDS) in Nairobi, Kisumu, Eldoret and Malaba.

Date posted: September 4, 2019 . Answers (1)
On 1^st July 2011, Maranga had cash at Bank sh. 136,500 and cash in hand sh. 3,250. (Solved)

On 1^st July 2011, Maranga had cash at Bank sh. 136,500 and cash in hand sh. 3,250. During the month, the following transactions took place.

July 2: Cash sales Sh. 42,630 paid directly into bank.
July 3: Received a cheque for Sh. 14,100 from Murungi in full settlement of a debt.
July 8: Bought goods for Sh. 26,240 and paid by cheque.
July 12: Cash sales 42,450.
July 14: Paid Ochako by cheque Sh. 23,750 in full settlement of his account less 5% cash discount.
July 15: Paid wages Sh. 24,000 in cash.
July 16: Withdrew sh. 36,000 from bank for office use.
July 18: Bought stationary in cash Sh. 750.
July 20: Cheque received from Murungi was dishonoured.
July 28: Paid salaries by cheque for Sh. 48,600.
July 30: All cash was banked except Sh. 5,000.

Required: Prepare a Three-Column Cashbook duly balanced.

Date posted: September 3, 2019 . Answers (1)
For each of the following situations, name the most suitable means of payment to be used. (Solved)

For each of the following situations, name the most suitable means of payment to be used.

Date posted: September 3, 2019 . Answers (1)
Indicate using a tick (v) the type of balance that each of the following accounts usually has. (Solved)

Indicate using a tick (√) the type of balance that each of the following accounts usually has.

Date posted: September 3, 2019 . Answers (1)
The following information relates to Amani Traders for the period ended 30^th April 2012.Prepare Amani Traders‘ Trading Account. (Solved)

The following information relates to Amani Traders for the period ended 30^th April 2012.

Prepare Amani Traders‘ Trading Account.

Date posted: September 3, 2019 . Answers (1)
Using a diagram illustrate the effects of a positive shift of a demand curve on the equilibrium point, price and quantity. (Solved)

Using a diagram illustrate the effects of a positive shift of a demand curve on the equilibrium point, price and quantity.

Date posted: September 3, 2019 . Answers (1)
Using a well labelled diagram, illustrate movement along the demand curve. (Solved)

Using a well labelled diagram, illustrate movement along the demand curve.

Date posted: September 3, 2019 . Answers (1)
Below are some of the factors that influence the operations of a business. Indicate with a tick (v) in the appropriate column the business environment... (Solved)

Below are some of the factors that influence the operations of a business. Indicate with a tick (√) in the appropriate column the business environment associated with each of the factor.

Date posted: September 3, 2019 . Answers (1)
Highlight FOUR Positive effects of a declining population. (Solved)

Highlight FOUR Positive effects of a declining population.

Date posted: September 3, 2019 . Answers (1)
State FOUR causes of structural inflation. (Solved)

State FOUR causes of structural inflation.

Date posted: September 3, 2019 . Answers (1)
The average consumer price for a 90kg bag of maize for the year 2012 and 2013 is shown below. (Solved)

The average consumer price for a 90kg bag of maize for the year 2012 and 2013 is shown below.

Year 2012................. 2013
Prices Ksh. 3000.............. Ksh. 4000

Calculate the increase in Consumer Price Index using 2012 as the base year.

Date posted: September 3, 2019 . Answers (1)