JINJA JOINT EXAMINATIONS BOARD
P230/3 ENTREPRENEURSHIP
Proposed marking Guide 2019
MARKING GUIDE
SECTION A
CASE STUDY
1. (a) Behavioural characteristics associated with a strong need for
achievement possessed by Mr. Malevu include:-
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Highly motivated and action oriented.
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Formulated concrete and moderate goals based on his abilities and efforts.
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Had internal involvement with goals and personal responsibility for the outcome.
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Analysed the business environment to create opportunities.
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Sought advice from entrepreneurs in similar business.
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Learnt from feedback to see if right methods were used and sight goals were set.
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Ensure that there is high efficiency in the business through delegation of duties , selecting priorities and motivating staff.
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Etc.
Any 5×1 =05 marks
NB evidence is needed /implied.
(b) Factors that affected Mr. Malevu’s choice of business idea included the following:-
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Training acquired in Bachelors of Building and construction Engineering.
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Need for self employment.
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Passion/ personal Interest for the occupation
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Personal capacity to raise the needed capita.
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Presence of market
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Technical assistance/advice from entrepreneurs in similar business.
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Etc.
Any 3×1 =03 marks)
NB Evidence is required.
(c) Basic steps Mr. Malevu could have followed when taking out the insurance policy includes.
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Making an inquiry and Taking quotations
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Choosing the insurance company and policy
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Checking the budged to determining how much money to spend on insurance.
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Filling the proposal form and paying premiums
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Receiving the cover note and insurance policy.
Any 4×1 =04 marks
NB:They must be in a chronological order.
No evidence required.
(d) Mr. Malevu ensures better time management in business by:-
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Keeping diaries for noting down activities to be performed.
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Delegating duties to employees.
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Selects priorities to be done first.
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Establishing the hardware shop and consultancy office on the same building.
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Uses computers to reduce paper work.
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Motivates his staff
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Choosing useful reading materials in unavoidable free time.
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Any 4×1 = 04 marks
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NB Evidence required/implied
(e) Benefits enjoyed by modern building and construction centre for selling goods on cash basis include:-
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Provides constant supply of working capital
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Helps to reduce risks of bad debts
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Helps the business to plan for the use of the working capital.
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Enables constant supply of inventories since there is ready cash.
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Helps in proper management of stock
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Enjoys reduced administrative expenses associated with credit sales e.g documentation and time wastage in following up customers.
Any 5×1 = 05 marks)
NB.No evidence required.
2. (a) General description of the business should include the following:-
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Name and address of business(Reflecting its nature)
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Physical location of the business
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Products offered.
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Target customers/ market
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Date of establishment
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Source of capital to the business
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Ownership/Nature /legal form of business.
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Description of business assets and premises
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Uniqueness of the business
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Purpose of the business i.e vision, mission, Goals and objectives
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SWOT analysis i.e business strength , weaknesses, opportunities , and threats.
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Any 4×1 =04 marks)
NB: Must be prepared.
(b) (i) Cash management policing that were used in the business
included :
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Banking all cash received intact on daily basis.
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Receiving and payment of cash by only the authorized person.
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Receipting and documenting all cash received and paid out.,
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Keeping cash at the business premises under lock and key.
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Proper counting and checking of cash received and paid out to ensure correctness.
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Avoiding use of business funds by the club officials on personal matters
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Keeping safety receipts and other documents related to accountability of cash.
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Receiving bank statements on regular basis
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Giving accountability by the club officials to the members.
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Carrying out regular auditing
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Training the officials in charge of cash in financial management.
Any 6×1 =06 marks
NB. Evidence is required.
(b)(ii) Measures taken to increase profits
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Increasing prices of goods.
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Producing quality products/services
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Involving members in doing the work than employing paid workers
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Buying raw materials/stock from cheaper sources /in bulk.
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Reducing advertising costs by announcing the products/service on assemblies.
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Using cheaper but attractive packing materials
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Increasing sales through motivating sales personnel, advertising etc.
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Being creative and innovative
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Using free school facilities such as premises, utilities, security, transport etc
Any 4×1 =04 marks)
NB Evidence is required /may be implied.
(c) Factors that were considered when pricing products may include:
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The cost of the product/production cost.
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Income level of the customers
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Objectives of firm
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Nature of the product and prices
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charged by the competitors
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Quality of the product
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Need to make prices attractive to customers
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Quantity in which customers buy.
Any 4×1 =04 marks
NB.Evidence is required.
(d) How the business project was sustained may include the following:-
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Training of the club members.
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Provision of quality products/services/improvement in quality.
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Offering of a variety of products
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Appropriate/ fair pricing of the products
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Advertising the business products
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Avoiding drawings
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Re-investing profits
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Practicing good business ethics.
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Meeting legal obligations eg school rules and obligation
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Raising more capital from external sources.
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Etc.
Any 6×1 =06 marks
3. (a) (i) Nature of the business may be manufacturing or Trading or
service or agribusiness and brands depend on the business operated.
Nature – 01mark
Brand(s) – 01 mark
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(ii) The vision and mission statements depend on the nature of the business. 1 mark for each
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How the club members were motivated in carrying out business activities include:-
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Specialization and division of labour
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Giving them some of the products produced.
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Paying them salary
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Sharing of profits on termly basis
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Allowing them to participate in club competitions.
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Training of club members
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Allowing all members to participate in decision making.
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Organising and conducting free and fair elections for club leadership.
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Recognising outstanding club members
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Etc.
Any 4×2 = 08 marks
NB Evidence is required.
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Techniques that were used to make the products unique in the market may include:
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Unique packaging
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Uniqueness in quality
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Uniqueness in pricing
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Uniqueness in colour
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Uniqueness in size/quantity
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Uniqueness in shape/style
Any 4×1 = 04 marks)
NB evidence is required.
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(i) Factors that were based on to assess the business risks include:
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Experience and abilities of the club members.
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Availability of market
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Pricing policies and strategies. Cash flow and capital requirements
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Flexibility of the business
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Honesty of the club members/employees.
Any 5×1 =05 marks)
NB: Evidence is required
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(ii) Techniques of negotiating with customers employed in marketing business products successfully included.
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Communicating frequently.
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Offering customers rewards
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Holding special events
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Promoting two way communication
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Enhancing customers service .
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Launching multicultural programs
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Visiting customers
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Using non-productive value methods
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Being pleasant
Any 4×1 =04 marks
4. (a) As question 2 part (a)
Any 4×1 =04 marks
NB Must be prepared.
(b) Management tasks performed may include the following:
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Financial management
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Human resource management
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Production management
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Marketing management
Any 3×2 =06 marks
NB. Mentioning -01 mark
Evidence -01 mark
4. (c) How the business depends on the natural environment includes the following:-
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Land for construction of business premises.
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Raw materials
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Labour for carrying out business operations
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Market for its products
Any 4×1 =04 marks
NB. Evidence is required.
(d) (i) Business ethics practiced by owner(s) of the business towards
employees include:
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Guaranteeing a safe work place.
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Giving fair remuneration/salaries and wages
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Giving fair and clear terms of employment
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Providing good working conditions
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Respecting workers
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Ensuring job security
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Politeness
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Arranging for proper training and education of the employees
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Giving room for creativity
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Any 7×1 =07 marks
NB: Evidence is required.
(d) (ii) Challenges associated with family involvement in the business may include
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Difficult decision making
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Succession of the enterprise.
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Growth limitations
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Limited vision
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Limited skills and talent to operate the business.
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Role confusion
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Benefits sharing conflicts
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Laziness among family members
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Theft and misuse of business funds and stocks
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Withdrawing of goods from the business for their personal use.
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Etc.
Any 4×1 =04 marks
NB:No evidence required.
5. (a) As question 2 part (a)
Any 4×1 =04 mark
(b) Presence of water body /source.
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Presence of adequate power
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Presence of necessary labour both unskilled and skilled
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Presence of cheap /free industrial land.
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Availability of raw materials
- Developed other infrastructure such as roads railway, and communication facilities
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Presence of adequate market.
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Adequate/presence of security
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Etc.
Any 4×1 =04 marks
(c) Using the SWOT analysis , the strengths of the business include the
following
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Production of a variety of products
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Production of high quality products /services
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Good branding /strong brand image.
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Excellent advertising.
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Use of modern technology
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Wide distribution network
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Good time management practices
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Adequate capital raised by owners
- Entrepreneurial skills/Abilities to manage the business by owners/Employment of skilled and qualified personnel.
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Ready market provided by large labour force.
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Etc.
Any 6×1=06 marks
NB:Evidence is required.
(d)(i) Marking mix strategies used in business include:
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Product.
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Price/pricing
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Promotion of business products
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Place/Distribution channel used in marketing of products.
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Packaging
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People
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Positioning
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Etc.
Any 6×1 =06 marks
NB evidence is required.
(d)(ii) Challenges faced in marketing business products may include:
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Stiff competition.
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Theft of business products and cash during marketing/Theft and robbery
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Adulteration of business products
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Inadequate transport facilities
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Change in customer’s taste and preference
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Bad debtors/identifying credit worthy customers to be offered credit.
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Theft /embezzlement of business funds by sales team.
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Fixing affordable prices.
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Unfavourable weather like rain that hinder movements
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Customer skeptism in having doubts in the commodity
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Under developed infrastructure especially roads causing unnecessary delays and break down of vehicles.
Any 5×1 =05 mark
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