Do you get motivated when you look at your goals? Remember your why. If the answer to your why is because everyone is doing it, the motivation is going to low. When challenges set in and everyone gives up, you will give up with them or give up when others are still on the move. Set goals that motivate you. Motivation has to come from the heart. Remember, this is a journey. It is not a destination in itself. Your inner drive will keep you moving when the going gets tough. You Goals Must Be Specific To YouYour goals have to be specific to you. Do not set random goals just because that is what is expected from you. Let s say you have a target to meet at the end of the month set by your company. The targets are not specific to you. In most cases, they are distinct to your department but general to you and your colleagues. A successful person will take the targets set and personalize them. What is it you want to achieve at the end of the month as far as the goals set for your team are concerned? Do you want to meet the exceptions, or do you want to exceed them? Set your weekly and daily goals to reflect what you want to achieve as an individual. Goals Have To Be Relevant To Your Higher Purpose In LifeYour goals must be relevant to your higher purpose in life. If not, you will deviate from your purpose or vision. Set goals to reflect, and feed your cause. The danger in working on plans that don t align with your purpose or mission, you end up working for other people. Proverbs 16:3 New International Version NIV Commit to the Lord whatever you do, and he will establish your plans. Starting to Set Personal GoalsYou set your goals on a number of levels:First you create your "big picture" of what you want to do with your life or over, say, the next 10 years , and identify the large-scale goals that you want to achieve. Then, you break these down into the smaller and smaller targets that you must hit to reach your lifetime goals. Finally, once you have your plan, you start working on it to achieve these goals. This is why we start the process of setting goals by looking at your lifetime goals. Then, we work down to the things that you can do in, say, the next five years, then next year, next month, next week, and today, to start moving towards them.


Finally, once you have your plan, you start working on it to achieve these goals. This is why we start the process of setting goals by looking at your lifetime goals. Then, we work down to the things that you can do in, say, the next five years, then next year, next month, next week, and today, to start moving towards them. Step 1: Setting Lifetime GoalsThe first step in setting personal goals is to consider what you want to achieve in your lifetime or at least, by a significant and distant age in the future . Setting lifetime goals gives you the overall perspective that shapes all other aspects of your decision making. To give a broad, balanced coverage of all important areas in your life, try to set goals in some of the following categories or in other categories of your own, where these are important to you :Career What level do you want to reach in your career, or what do you want to achieve? Financial How much do you want to earn, by what stage? How is this related to your career goals? Education Is there any knowledge you want to acquire in particular? What information and skills will you need to have in order to achieve other goals? Family Do you want to be a parent? If so, how are you going to be a good parent? How do you want to be seen by a partner or by members of your extended family? Artistic Do you want to achieve any artistic goals? Attitude Is any part of your mindset holding you back? Is there any part of the way that you behave that upsets you? If so, set a goal to improve your behavior or find a solution to the problem. Physical Are there any athletic goals that you want to achieve, or do you want good health deep into old age? What steps are you going to take to achieve this? Pleasure How do you want to enjoy yourself? You should ensure that some of your life is for you! Public Service Do you want to make the world a better place? If so, how? Spend some time brainstorming these things, and then select one or more goals in each category that best reflect what you want to do. Then consider trimming again so that you have a small number of really significant goals that you can focus on. Talents and AbilitiesFor many people, the words talent and ability are interchangeable.


Spend some time brainstorming these things, and then select one or more goals in each category that best reflect what you want to do. Then consider trimming again so that you have a small number of really significant goals that you can focus on. Talents and AbilitiesFor many people, the words talent and ability are interchangeable. Understanding the difference between them can make all the difference in how we live and work. Here at Pro spur, one of the first lessons we share with our players is recognizing their talent vs. their ability. So what is the difference? Talent is what you ve been given. Ability is how you grow the talent you ve been given. Right now, there are more than 8,000 pro players in Minor League baseball. Do you know how many of those players have enough talent alone to make it to the Big Leagues and stay there? The answer: not that many. Ways of Nurturing talentsCreate an Open CultureFirms are a product of multiple people s contributions. Each worker should feel like their words have weight and that their input is valued. Everything starts with the workplace culture, which gives new starters the confidence to stick around and keeps more experienced personnel grounded and loyal. Encourage employees to speak up if they have any concerns or thoughtful ideas. Develop Mentoring SchemesMentoring is an enormous part of nurturing talent. However, finesse is required in how your company approaches it. Vague instances of encouragement aren t enough to keep workers motivated and performing well. Introduce AutomationWorkers with many responsibilities can soon become overwhelmed. The most overworked staff members may find little time to focus on their own professional development. Automation can ease these burdens somewhat. These technologies can assume many of the admin tasks a worker needs to do. Signing paperwork, scheduling updates, responses to routine emails these are all tasks automation can oversee instead of the employee. Work-related stress can be reduced as a result. Offer FlexibilityNurturing talent can t be done under overly rigid work practices. Employees need to grow both personally and professionally and to do so effectively, they need a level of control. Keep InnovatingYour business needs to aspire to be greater constantly. Only then can you expect your workers to adopt a similar attitude. Of course, your business may be more concerned about surviving rather than thriving these days. Irrespective of your circumstances or the economic conditions you re facing, your company must keep pushing to innovate and excel within its industry.


Only then can you expect your workers to adopt a similar attitude. Of course, your business may be more concerned about surviving rather than thriving these days. Irrespective of your circumstances or the economic conditions you re facing, your company must keep pushing to innovate and excel within its industry. Personal Talents and AbilitiesCommunication. Interpersonal skills. Leadership. Problem-solving. Time management. Adaptability. Critical thinking. Organization. Five kinds of talent categories:Self-conceptual talents like self-awareness, self-regulation, self-motivation, and self-confidence. Social talents like social awareness, communication, relationship management, collaboration, and influence. General talents like language skills, mathematical abilities, reasoning, visual-spatial processing, and learning abilities. Specific expertise like strategic thinking, arts, writing, research, sports, design, storytelling, and kinesthetic abilities. Fun talents any cool talents such as exceptional taste, ventriloquism ability to make your voice appear from somewhere else or with delay , and hypermobility, to name a few. Ethical Issues related to use of talents and abilities in businessEthical issues in business occur when a decision, activity or scenario conflicts with the organization s or society's ethical standards. Both organizations and individuals can become involved in ethical issues since others may question their actions from a moral viewpoint. 1. Discrimination and harassmentTwo of the most significant ethical issues that HR professionals and managers face are discrimination and harassment. The consequences of discrimination and harassment in the workplace can negatively impact the finances and reputation of the organization. Many countries have anti-discrimination laws to protect employees from unfair treatment. Some anti-discrimination areas include:Age: Organizations and internal policies cannot discriminate against employees who are older. Disability: To prevent disability discrimination, it's important to accommodate and provide equal treatment for employees with mental or physical disabilities. Equal pay: Equal pay focuses on ensuring that all employees receive equal compensation for similar work, regardless of religion, gender or race. Pregnancy: Pregnant employees have a right not to be discriminated against on account of their pregnancy. Race: Employees should receive equal treatment, regardless of ethnicity or race. Religion: Employees' religious beliefs should not affect how anyone within the organization treats them. Sex and gender: An employee's sex and gender identity should not influence their treatment while working at an organization. 2. Ethics in accounting practicesLaws require organizations to maintain accurate bookkeeping practices.


Sex and gender: An employee's sex and gender identity should not influence their treatment while working at an organization. 2. Ethics in accounting practicesLaws require organizations to maintain accurate bookkeeping practices. Unethical accounting practices are a serious issue, especially for publicly traded companies. The legislation specifies financial report requirements aimed at protecting shareholders and consumers. All organizations have to keep accurate financial records and pay taxes to attract investment and business partners regardless of the size of the company. 3. Nepotism or favoritismAs a hiring manager or HR professional, you may want to employ an acquaintance or family member because of your connection to them. Even if you adhere to recruitment policies to ensure a fair process, some employees may still consider this as nepotism or favoritism. Favoritism occurs when managers treat some employees better than others for no professional reason. This can reduce productivity and job satisfaction in other employees, which may negatively impact the entire organization. 4. Workplace health and safetyAll employees have a right to a safe working environment and work conditions. Importance of Nurturing talents and abilitiesNurturing internal talent can benefit your business in many ways:Facilitate success. Nurturing the talent you already have allows you to facilitate opportunities for cross-training, career development and networking. Create a culture of innovation and empowerment. Nurturing your existing talent creates a culture of innovation and empowerment, in which employees know they are valued and they are motivated to strive for excellenceOpen leadership opportunities. Nurturing the talent of your teams enables you to foster a culture in which leadership opportunities abound. STRAND TWOBUSINESS AND ITS ENVIRONMENTBusiness activitiesNeeds and wantsScarcity, Choice, Scale of preference and opportunity costThe basic concept or elements of economics are:wants,scarcity,scale of preference,choice andopportunity cost. WantsWants simply means the desire or wish to own goods or services that give satisfaction. Goods include things such as cars, radios, food, houses, books, etc.,. That is tangible commodities , while services includes hair dressing, the services of an actor, etc that is intangible commodities . Want s are also called ENDS. As these basic needs are satisfied, other needs will arise. That is why we say that human wants are insatiable. This is because human wants are unlimited while resources used in satisfying them are limited.


As these basic needs are satisfied, other needs will arise. That is why we say that human wants are insatiable. This is because human wants are unlimited while resources used in satisfying them are limited. SCARCITYScarcity refers to the limited available resources used in satisfying the unlimited human wants. These resources are scarce relative to their demand. It is as a result of scarcity of resources that needs the study of economics very essential in order to find alternative uses of these scarce resources. The available resources cannot satisfy all human wants. Since human wants are unlimited or insatiable relative to the available resources, we have to choose the most pressing ones and leave others that are less important because resources are scare. As a student you will need to buy school materials, e.g exercise books worth 100.00 but you have only 50.00. It can be seen that the money you have 50.00 , which is your resources, will not be sufficient to buy all you need. The available resources within the environment can never at any time be in abundance to satisfy all human wants. If resources were to be unlimited or abundant, no economics problem would arises and there would be no need for a study of economics. Scarcity is the central or basic economic problemsSCALE OF PREFERENCEScale of preference refers to a list of unsatisfied wants arranged in order of their relative importance. A scale of preference refers to a list of unsatisfied wants arranged in order of priority or importance. This aids decision-making. The most pressing needs are ranked first followed by the less pressing ones. In other words, it is a list showing the order in which we want to satisfy our wants arrange in order of priority. The drawing of scale of preference will make it easier for choice to be made. In order to achieve maximum satisfaction with limited resources at their disposal, an individual, firm and unsatisfied wants in order of priority. Each individual is assumed to have a scale of preference. This is because economics theory assumes that people always behave rationally and would satisfy their most pressing want first. For example, a student might rank his wants in following order according to their level of importance:Pair of school uniformExercise booksWrist watchDictionaryScientific calculatorAn arm chairIf he is to choose between items 1 and 4, he chooses the first. Scale of preference of individuals, firms and the government differ from time to time.


This is because economics theory assumes that people always behave rationally and would satisfy their most pressing want first. For example, a student might rank his wants in following order according to their level of importance:Pair of school uniformExercise booksWrist watchDictionaryScientific calculatorAn arm chairIf he is to choose between items 1 and 4, he chooses the first. Scale of preference of individuals, firms and the government differ from time to time. IMPORTANCE OF SCALE OF PREFERENCERanking of needsFinancial prudenceIdentification of highest priorityRational choiceEfficient utilization of limited resourcesOptimum allocation of resourcesMaximization of satisfactionThe importance of scale of preference can be paraphrased this way also:It helps individuals to rank their needs in order of importance. It helps us to manage our resources properly. It helps both individuals and government to identify the most important needs. It enhances optimum allocation of resources. It helps individuals, firms and government in the efficient utilization of resources. It helps economic agents to maximize their satisfaction. It helps individuals to make rational decision. CHOICEChoice can be defined as a system of selecting or choosing one out of a number of alternatives. Human wants are many and we cannot satisfy all of them because of our limited resources. We therefore, decide which of the wants we can satisfy first. Choice arises as a result of numerous human wants and the scarcity of the resources used in satisfying these wants. OPPORTUNITY COSTOpportunity cost is also known as a real cost or time cost. The concept of opportunity cost is used in economics to express cost in terms of foregone or sacrificed alternatives. Opportunity cost means the alternative foregone or sacrifice made in order to satisfy another want. It is the satisfaction of one s want at the expense of another want. Types of Business activitiesPeople carry out different business activities in order to earn income. Business activities are activities which involve the provision of goods or services with an aim of earning a profit. Activities done without the intention of making profit are referred to asnon-business activities. Business activities may be grouped into the following seven categories:a ExtractionThis involves obtaining goods from their natural setting e.g. mining, farming, lumbering, fishing, quarrying e.t.cb Processing-This involves the conversion of raw materials into moreuseful products without combining it with other goods.


Activities done without the intention of making profit are referred to asnon-business activities. Business activities may be grouped into the following seven categories:a ExtractionThis involves obtaining goods from their natural setting e.g. mining, farming, lumbering, fishing, quarrying e.t.cb Processing-This involves the conversion of raw materials into moreuseful products without combining it with other goods. Examples hereinclude milling grinding flour, refining oil, tanning of skins and hides,conversion of iron into steel e.t.cc Manufacturing-This involves combining different raw materials tocome up with one final product. Such activities include bread baking,making a table e.t.cd Construction-This involves building of structures such asbridges, ships, aeroplanes, houses, roads, railways e.t.ce Distribution of goods-This refers to the activities involved in movinggoods from where they are produced to where they are needed. Peoplewho carry out distribution are called distributors. Examples ofdistributors are wholesalers and retailers. F Trade-Activities in this category involve the buying and selling ofgoods with a view of making a profit. People involved in trade are calledtraders. G Provisions of Services-Activities in this category involve human acts which could be mental or physical. These include activities such as haircutting, hair styling, car-washing, nursing, teaching, driving, and entertaining e.t.c. Purpose of Business activityProvides goods and services from limited resources to satisfy unlimited wantsScarcity is the result of the economic problem limited resources and unlimited wantsChoice is necessary for scarce resources. This leads to opportunity costsSpecialization is required to make the most out of sourcesBusiness activityCombines factors of production to create goods and servicesGoods and services satisfy peoples wantsEmploys people and pays them wages so they can consume other productsBusiness objectivesAll businesses have objectives or aims to achieve. Their objectives may vary depending on the type of business and the situation the business is in. The most common objectives are:Profit: Profit is what keeps a company going and is the main objective of most businesses. Normally a business will try to obtain a satisfactory level of profits so they do not have to work long hours to pay too much tax. Increase added value: Value added is the difference between the price and material costs of a product. E.g.: If the price when selling a pen is Ksh.


Normally a business will try to obtain a satisfactory level of profits so they do not have to work long hours to pay too much tax. Increase added value: Value added is the difference between the price and material costs of a product. E.g.: If the price when selling a pen is Ksh. 3 and it costs Ksh.1 in material, the value added would be Ksh.2. However, this does not take in account overheads and taxes. Added value could be increased by working on products so that they become more expensive finished products. One easy example of this is a mobile phone with a camera would sell for much more than one without it. Of course, you will need to pay for the extra camera but as long as prices rise more than costs, you get more profit. Growth: Growth can only be achieved when customers are satisfied with a business. When businesses grow they create more jobs and make them more secure when a business is larger. The status and salary of managers are increased. Growth also means that a business is able to spread risks by moving to other markets, or it is gaining a larger market share. Bigger businesses also gain cost advantages, called economies of scale. Survival: If a business do not survive, its owners lose everything. Therefore, businesses need to focus on his objective the most when they are: starting up, competing with other businesses, or in an economic recession. Service to the community: This is the primary goal for most government owned businesses. They plan to produce essential products to everybody who need them. These business objectives or aims can conflict because different people in a business want different things at different times. Goods and servicesTypes of goods and servicesWe desire to have all the things to satisfy our present and future wants. Thus, our desire is for all those things that satisfy our wants. All these things are either material goods or services. If something is not wanted by anybody it will not be called a good or service. Therefore, we can divide the things that we wants into two categories: i Goods and ii Services. Goods are material things wanted by human beings. They can be seen or touched. Services are non-material things. These cannot be seen or touched only their effects are felt. When we are hungry, we take food. When we fall sick, we take medicines. When we study, we use book, notebook, pen, paper etc. All these are examples of goods which satisfy some of our wants.


When we fall sick, we take medicines. When we study, we use book, notebook, pen, paper etc. All these are examples of goods which satisfy some of our wants. All the things which satisfy human wants are good. However, wants for haircut, washing of cloths, mending of shoes, stitching of cloths, studying in a school or a college etc. Are not satisfied by goods. These are satisfied by the services performed by a barber, washer man, cobbler, tailor and teacher etc. So some of our wants are satisfied by goods and some by services. Hence, all the human wants can be satisfied by goods and services. Classification of Goods and Services:Goods and services are of many types. However, these can be classified into some broad groups. These are discussed below: i Free Goods and Economic goods:The goods which have unlimited supply and are provided as free gift of nature. The goods which are not man-made and do not have to pay anything to get them. These goods are known as Free Goods . For example, air, sea, water, sunlight, sand in the desert etc. On the other hand, goods like vegetables, grains, minerals, fruits, fishes etc. Which are neither man-made nor unlimited supply of nature are known as Economic Goods All these goods are sold and purchased in the market only. Ii Free Services and Economic Services:Services which cannot be bought in the market and which are only rendered out of love, affection etc. Are known as Free Services . For example, all services given by the parents to their children are free services. However, all the services that can be bought in the market are Economic Services . Services rendered by doctors, teachers, lawyers, barbers, cobblers etc. Are the example of economic services. Iii Consumer Goods and Capital Goods:The goods which are directly used by the consumer for the purposes of consumption are known as Consumer Goods The example of consumer goods are bread, biscuit, butter, jam, rice, fish, egg, shoes, shirts, fan, book, pen, cooking gas etc. On the other hand, all the goods which are not directly used to satisfy consumption but which are used in further production are called Producer Goods or Capital Goods . The examples are seeds, fertilizers, tools, machines, raw materials etc.


Iii Consumer Goods and Capital Goods:The goods which are directly used by the consumer for the purposes of consumption are known as Consumer Goods The example of consumer goods are bread, biscuit, butter, jam, rice, fish, egg, shoes, shirts, fan, book, pen, cooking gas etc. On the other hand, all the goods which are not directly used to satisfy consumption but which are used in further production are called Producer Goods or Capital Goods . The examples are seeds, fertilizers, tools, machines, raw materials etc. Iv Consumer Services and Producer Services:When services are used directly by consumers to satisfy their wants, they are called consumer services. When services are used by producers to produce other goods and services, they are called producer services. When the tailor stitches our shirt, it is a consumer service However when the tailor stitches a shirt for a readymade garments shop, the service rendered by him is a producer service. V Single Use and Durable Use Goods:Goods both consumer goods and producer goods which are only used or consumed for single time or only once are known as single use goods. Bread, milk, fruits, vegetables etc. Are the example of single use consumer goods. On the other hand, seeds, fertilizers, raw materials etc. Are the example of single use producer goods. Some goods both consumer goods and producer goods can be used for a considerable period, that is, they can be used again and again. They are called durable use goods. For example, table, chair, cloths, shoes etc. Are the durable use consumer goods. On the other hand, tube wells, tractors, pump-sets etc. Are the example of durable use producer goods, vi Private Goods and Public Goods:On the basics of ownership goods can be classified into two groups. All the goods which are owned by private bodies are called private goods. For example, a car, a house, a motor bike, a mobile phone, books, a television set etc. Are the private goods. There are large number of goods which are collectively owned by the society, the public or the government. These are called public or government goods. For example, roads, bridges, hospitals, government schools etc. Are the public goods or the social goods or the government goods. Economic ResourcesCharacteristics of economic resourcesTypes of economic resources in KenyaWhat Are Economic Resources?


For example, roads, bridges, hospitals, government schools etc. Are the public goods or the social goods or the government goods. Economic ResourcesCharacteristics of economic resourcesTypes of economic resources in KenyaWhat Are Economic Resources? Economic resources are the different factors of production used to produce all goods and services in the economy. Economic theory is primarily concerned with allocating these resources so that the production of goods and services is done most efficiently and effectively. There are four general types of economic resources:Land or natural resourcesLaborCapitalEntrepreneurial abilitySustainable ways of using economic resourcesEconomic sustainability is the practice of conserving natural and financial resources to create long-term financial stability. A system that's sustainable can last far into the future with minimal negative impacts. In finance, this can mean reducing the worldwide consumption of valuable resources to ensure they're available to future generations to create financial stability and wealth. For example, by reducing the usage of fossil fuels and focusing on alternative fuel sources, companies, governments and consumers can help reduce the global impact of emissions and pollution from fossil fuels. Here are some examples of economic stability:Alternative energyAlternative energy sources, such as wind power, solar power and hydropower, can offer a more sustainable, clean and affordable solution to energy needs. Much of the world depends on fossil fuels like coal, oil and gasoline, which have a limited supply and create greenhouse gas emissions. Alternative energy sources depend on infinite natural processes or resources, which may make them more sustainable and affordable in the long term. Reducing fossil fuel consumption can help reduce tax burdens for consumers, decrease the costs of environmental impacts and create more energy equity among low-income populations, which can increase economic productivity. Sustainable agricultureMany farms are adopting sustainable agricultural practices to reduce soil degradation, which occurs from over-farming, and to reduce animal product consumption. Reducing food consumption and focusing on regenerative farming can help improve soil health, crop yields and the quality of farmed food and resources. Regenerative farming is a practice farmers use to rotate crops for better soil health, instead of farming the same crops, like corn, all year. Improving soil health and reducing animal product consumption can help keep food costs low, reduce carbon emissions and environmental damage and encourage better habits. Recycling and pollution reductionRecycling and reducing pollution is a common economic and environmental stability practice that can help increase the value of materials.


Regenerative farming is a practice farmers use to rotate crops for better soil health, instead of farming the same crops, like corn, all year. Improving soil health and reducing animal product consumption can help keep food costs low, reduce carbon emissions and environmental damage and encourage better habits. Recycling and pollution reductionRecycling and reducing pollution is a common economic and environmental stability practice that can help increase the value of materials. For example, a company producing aluminum cans can sustain operations by recycling used cans and creating molten aluminum for recasting, instead of mining for aluminum ore. This practice can reduce the company's environmental impact, saving the region both cleanup and restoration costs and reducing the organization's mining costs. Reducing pollution can also help reduce worldwide cleanup and restoration costs and the costs of climate change. Sustainable fisheriesCreating more sustainable fisheries can help reduce the environmental and economic impact of overfishing the oceans. Side effects of overfishing can include population declination, bycatch, or catching other species along with fish, and fishing equipment made of plastics and other materials discarded in waterways. Adopting more sustainable practices, like reducing fish consumption worldwide and reducing bycatch and fishing pollution, could create a more sustainable fishing environment, resulting in more stable profits and economic health for the fishing industry. It can also help ocean populations recover, which is crucial for ecosystems across the globe. Resource MappingResource mapping is a strategy for identifying and analyzing the programs, people, services, and other resources that currently exist in the country. This information can help leaders better assess the needs of the country and to make informed decisions about where to focus change efforts. Mapping StepsReach consensus on the parameters of the map select a goal to map. Select the data to be collected based on these parameters determine what types of resources you would like to collect. Develop tools to collect your data. Collect data with help from stakeholders. Conduct a community or environmental scan. Synthesize, analyze, and interpret your data. Communicate your findings. Set priorities. Develop related products. Importance of economic ResourcesResources are significant because: i They satisfy human wants both individual and social, ii They are a source or possibility of assistance, iii They are a means of development and support, iv They are an expedient, v They have capacity to take advantage of opportunities, and vi One relies on them for aid, support and supply.


Set priorities. Develop related products. Importance of economic ResourcesResources are significant because: i They satisfy human wants both individual and social, ii They are a source or possibility of assistance, iii They are a means of development and support, iv They are an expedient, v They have capacity to take advantage of opportunities, and vi One relies on them for aid, support and supply. Business communicationCommunication is an essential element in the success of any business. The process of transferring information from one person to another, within and outside the business environment, is termed as Business Communication. The term Business Communication is derived from general communication which is associated with business activities. In other terms, communication between business parties or people for business-related tasks is considered as Business Communication. Business Communication includes different aspects like marketing, public relations, customer relations, corporate and interpersonal communication, etc. Basic elements of Business communication:SenderBusiness informationReceiverFeedbackImportance of business communicationHelps in increasing productivity: Effective business communication increases the productivity of staff by boosting up teamwork. It creates a trustworthy and understanding environment among employers and employees. Effective communication is related to cooperating with employees and understanding their needs and desires. By doing so, employees are able to accomplish their tasks more effectively and efficiently. Also, the scope of doing mistakes or errors during their work minimizes due to effective communication. Helps in increasing customers: Customers are an important part of any business and effective business communication can facilitate in attracting new customers and retain the current customers. A well-defined marketing strategy and public relations campaign run by an organization generates the interest of customers in its goods or services and helps in building the corporate image in customers. Enhances business partnerships: Business Communication also improves partnerships in business. It plays a significant role in dealing with external business clients or vendors. Vendors may be required to communicate on products regularly for improvements. Also, an effective and harmonious relationship with other businesses determines the further success of an organization. A business unit that has developed its image as an entity for easy partnership through its effective communication can attract other business units for forming business relationships with them. Facilitates innovations in business: Effective business communication helps in business innovations as well as it facilitates employees to convey their ideas and suggestions openly. Similarly, at the time of launching any new product in the market, effective communication ensures the performance of the sales team, market acceptance of the product, fast delivery of products in the market, etc.


A business unit that has developed its image as an entity for easy partnership through its effective communication can attract other business units for forming business relationships with them. Facilitates innovations in business: Effective business communication helps in business innovations as well as it facilitates employees to convey their ideas and suggestions openly. Similarly, at the time of launching any new product in the market, effective communication ensures the performance of the sales team, market acceptance of the product, fast delivery of products in the market, etc. Information exchange: Business communication is required by an organization for exchanging information with internal and external stakeholders. This helps in achieving its goals effectively. Preparation of plans and policies: Through effective business communication, organizations can make their plans and policies properly. Relevant information is required for preparing these plans and policies. Through communication, different managers source information through reliable channels. Helps in solving problems or issues: Through different communication channels, managers get information about different routine and non-routine issues and based upon that they can take required actions to sort out those issues. Facilitates decision-making: Effective decisions require up-to-date information. Using effective communication, managers can acquire information from different sources and can utilize it for making correct decisions. Reduces chances of conflicts: Through effective communication different business parties can exchange information in a smooth way. This results in fewer conflicts, controversies, arguments between them. Business Communication MethodsDifferent methods of communicating in a business are as below:In-person Face-to-Face Business Communication: In-person communication is the most common and preferred method of business communication. As it is generally in the form of meetings or conferences which is face to face communication format. This requires refined in-person skills. This method also includes non-verbal communication i.e. body language. While having a conversation between two or more people in business, body language like gestures, facial expression, etc. Also play a vital role in communicating a person s attitude towards others. Communication by email system: An e-mail has become the most widely used communication system in any business. Due to its feature of sending and receiving mass or multiple messages at a time, email is considered as one of the preferred methods in business communication. It also increases efficiency as emails can be sent and responded in fast mode. The conversation through email can be among two or more than two people and is the best substitute for formal face to face meetings as discussions can be done in an email system.


Due to its feature of sending and receiving mass or multiple messages at a time, email is considered as one of the preferred methods in business communication. It also increases efficiency as emails can be sent and responded in fast mode. The conversation through email can be among two or more than two people and is the best substitute for formal face to face meetings as discussions can be done in an email system. Web conferencing: In the web conferencing method of business communication, the internet is being used for communication in meetings, conferences, presentations, seminars, and imparting training. It includes features like sharing of files, screens, real-time chatting, recording, etc. This can be considered as the most effective way of interacting with people sitting at different locations. Web conferencing is done by using the phone teleconferencing or video equipment videoconferencing . Written communication: Written business communication is a formal and detailed form of communication than other methods. Different written communication tools include formal letters, brochures, posters, etc. Other methods: There are other business communication methods like an instant messaging system. This technology is easy to use as one can easily connect with people while working offsite and have conversations without waiting so long. They also include WhatsApp, phone calls. Production of goods and servicesProduction: Refers to the creation of goods and services or increasing their usefulness through activities such as transporting them to where they are required. People who are involved in production of goods and services are referred to as producers. NdependenceImportance of ProductionTo produce is independence. If you don t produce, you will have to consume what has been produced. In this case, you have no choice but to the available options. People choose to be free and independent. The need for various goodsAvailability of goods and services: Production helps to ensure that goods and services are madeIncrease in wealth of people: Production assists people to accumulate wealth as a result of continuous employment. Importance of productionIncrease in export potential: Production also assists a state or nation to boost her export of goods and services to other nations. Acquisition of skills: The engagement of people in production leads them to acquire special skillsCharacteristics of Factors of ProductionMeaning: Factors of production refer to agents, components or resources which are combined together to produce goods and services. There are four factors of production. These are:Labour - is skillful: Labour becomes skillful through education and training.


Acquisition of skills: The engagement of people in production leads them to acquire special skillsCharacteristics of Factors of ProductionMeaning: Factors of production refer to agents, components or resources which are combined together to produce goods and services. There are four factors of production. These are:Labour - is skillful: Labour becomes skillful through education and training. Labour is a human factor: Labour is a human factor hence its supply can easily be controlled importance of productionLabour requires motivation: For labour to perform efficiently and increase its productivity, it must be motivated in one way or the other. Importance of productionLabour is not predictable: Labour as a factor of production cannot be easily predicted. Labour is not fixed: The supply of labour, unlike land, is not fixed as it varies in quantity and quality. Labour is perishable: Knowledge can diminish overtime as a result of continued unemployment, under-employment, age and death. Labour controls other factors of production: Labour controls and combines all other factors of production to make them more meaningful to the society. Labour has initiative: Labour can act on its own initiative. Classification of factors of productionCharacteristics of land as a factors of productionFixed supply: The total land area of earth in the sense of the surface area available to men is fixed. Therefore, the supply of lands is strictly limited. It is, no doubt, possible to increase the supply of land in a particular region to some extent through reclamation of land from sea areas or deforestation. No cost of production: Since land is a gift of nature, it has no cost of production. Since land is already in existence, no costs are to be incurred in creating it. In this sense, land differs from both labour which has to be reared, educated and trained and capital which has to be created by using labour and other scarce resources or by spending money . Differences in fertility: Another important feature of land is that it is not homogeneous. All grades plots of land are not equally productive or fertile. Some grades of land are more productive than others. And Ricardo argued that rent arises not only due to scarcity of land as a factor but also due to differences in the fertility of the soil. Mobility:Land is not geographically mobile. But, it is occupationally mobile. In most parts of India, for example, land has many alternative uses.


Mobility:Land is not geographically mobile. But, it is occupationally mobile. In most parts of India, for example, land has many alternative uses. It might be used for farmland, roads, rail ways, airlines, public parks, playgrounds, resi dential housing, office buildings, shopping complex, and so on. Some of the land, for example, in hill area, of say, Shillong, or Darjeeling, has an extremely limited degree of occupational mobility, being useful perhaps for sheep grazing, golf course or as a centre of tourism. Return: The income received by the owner of land is known as rent. It may be noted that rent is usually paid for something more than the use of land or another natural resource, but includes also an element of payment for another factor which is involved in making the resource available in a usable form. Characteristics of Capital as a factor of productionCapital is manmade factor of productionIts mobileIt s a passive factor of productionTypes of capitalFixedWorkingventureCharacteristics of an entrepreneurX-tics of an entrepreneurConsumer concerns addressed in the production of goods and servicesLearners to check on thisMarketing of Goods and ServicesA market can be defined as a place where buyers and sellers meet to exchange goods, services and other relevant information is called a market. Both these parties can meet in a city, state, province, country and region. The market may be a physical or virtual. The one party seller sells a product or service to a buyer for money benefits. Most of the time there are more than single buyers and seller in the marketplace. The value and prices of product and service are based on the law demand and supply in the market. Types of MarketsPhysical Markets. Any physical market is a place where buyers and sellers physically meet that involve both parties in a transaction in exchange for money. Few good examples are departmental stores, shopping malls and retail storesVirtual Markets Internet Markets. Todays business environment such type of markets are increasing on a fast track. It is a place where the seller offers goods and services via online platform i.e. internet. Buyers and sellers are not required to physically meet or interact. Examples are Freelancer.com, Amazon.com. Auction Market. An auction market is a place where sellers and buyers indicate the lowest and highest prices they are willing to exchange.


Examples are Freelancer.com, Amazon.com. Auction Market. An auction market is a place where sellers and buyers indicate the lowest and highest prices they are willing to exchange. This exchange takes place when both the sellers and buyers agree on a price. A good example is the New York Stock Exchange NYSE . What is Market SizeMarket size refers to the total number of people in a specific market who has the potential to buy and sell products and services. Whenever companies launch a new product they are very interested to know the market size. For any market, two factors are very importantTotal number of buyers and sellersTotal money in the market on the annual basisMarketingMarketing is a process by which a product or service is introduced and promoted to potential customers. Without marketing, your business may offer the best products or services in your industry, but none of your potential customers would know about it. Without marketing, sales may crash and companies may have to close. Types of MarketingWhere your marketing campaigns live depends entirely on where your customers spend their time. It's up to you to conduct market research that determines which types of marketing -- and which mix of tools within each type -- is best for building your brand. Here are several types of marketing that are relevant today, some of which have stood the test of time:Internet marketing: Inspired by an Excedrin product campaign that took place online, the very idea of having a presence on the internet for business reasons is a type of marketing in and of itself. Search engine optimization: Abbreviated "SEO," this is the process of optimizing content on a website so that it appears in search engine results. It's used by marketers to attract people who perform searches that imply they're interested in learning about a particular industry. Blog marketing: Blogs are no longer exclusive to the individual writer. Brands now publish blogs to write about their industry and nurture the interest of potential customers who browse the internet for information. Social media marketing: Businesses can use Facebook, Instagram, Twitter, LinkedIn, and similar social networks to create impressions on their audience over time. Print marketing: As newspapers and magazines get better at understanding who subscribes to their print material, businesses continue to sponsor articles, photography, and similar content in the publications their customers are reading. Search engine marketing: This type of marketing is a bit different than SEO, which is described above. Businesses can now pay a search engine to place links on pages of its index that get high exposure to their audience.


Print marketing: As newspapers and magazines get better at understanding who subscribes to their print material, businesses continue to sponsor articles, photography, and similar content in the publications their customers are reading. Search engine marketing: This type of marketing is a bit different than SEO, which is described above. Businesses can now pay a search engine to place links on pages of its index that get high exposure to their audience. It's a concept called "pay-per-click" -- I'll show you an example of this in the next section . Video marketing: While there were once just commercials, marketers now put money into creating and publishing all kinds of videos that entertain and educate their core customers. The 4 Ps of MarketingEssentially, these 4 Ps explain how marketing interacts with each stage of the business. ConsumersA consumer is any individual or group that uses goods or services. Generally, this means an individual who pays for goods or services, although sometimes the good or service is not paid for, but is instead received as a gift or favor. Usually, the term is used when referring to the demand side of the market. For example, in economics, it is often said that consumers are influenced by price when they make their buying decisions. Following are the things that customers look at for before buying a product. 1 Price: The price of the product is the first thing that almost 80 of the customers look at before buying a product. Because every customer has their own budget and they usually tend to spend within the budget unless they get some extraordinary quality. 2 Experience: Nowadays, everyone is busy and they want to buy things which are easily available and also there are so many alternatives available in the market for a certain product. Therefore, it is important to make the shopping experience as well as the quality of the product excellent. So, they don t move to some other product. 3 Design: Design of the product should be attractive. 4 Functionality: The product should have all the functionalities that a customer expects while buying a product. 5 Convenience: The product and services should be convenient for the customer, otherwise, he she will not buy the product. 6 Reliability: The product should be reliable and it should meet the customer s needs every single time. 7 Compatibility: The product should be compatible with the other products that the customer is already using. Following is a list of different types of customers. Need-based customers :These customers shop for only specific products when they need them.


7 Compatibility: The product should be compatible with the other products that the customer is already using. Following is a list of different types of customers. Need-based customers :These customers shop for only specific products when they need them. They already know the section they are heading to when they enter a store. They usually don t require an assistant to choose a product because they usually have knowledge about the product they want to buy. Therefore, it is very important to approach them with a planned strategy. Loyal customers :These types of customers are very important for a business. This segment of the customers should be kept satisfied. They not only stay loyal to the company but also praise and recommend the product to their family and friends. Therefore, they also help the company to market its product by word -of mouth free of cost. Usually, this segment of customers is small and they hardly make 20 of the total customers, but they are responsible for generating the maximum part of the total revenue of the company. 3 Discount customers :These are the types of customers who never buy a product on full price. They always look for a discount on the product they want to buy. Such customers never shop for anything off-sale. These types of customers make the biggest portion of total customers of a company. Discount customers are the least loyal customers and they easily move on when getting better offers by some other company. Impulsive customers :Impulsive customers segment is a bonus segment for any business, as these customers don t shop as per their need or because of ongoing sale. The shopping of these types of customers is highly influenced by their current mood. They usually tend to buy a product, if, at the time of shopping, they find it useful and good at that point in time. Potential customers:Potential customers are not your customer yet, but they just need a little bit of convincing and assistance to make a purchase. These types of customers need a little bit of encouragement and attention before buying your product. To deal with such customers, you should show them some value and assist them by providing information about the products they are interested in.


Potential customers:Potential customers are not your customer yet, but they just need a little bit of convincing and assistance to make a purchase. These types of customers need a little bit of encouragement and attention before buying your product. To deal with such customers, you should show them some value and assist them by providing information about the products they are interested in. Factors to consider when selecting a suitable market for goods and servicesThe product to be sold or producedPersonnel to manage the businessAmount of finance and other resources requiredThe market to be served customers Types of employees requiredProjection level of achievement in future in terms of profit The name for the businessAn attractive market has the following characteristics:It is sizeable large enough to be profitable given your operating cost. Only a tiny fraction of the consumers in China can afford to buy cars. However, because the country s population is so large nearly 1.5 billion people , more cars are sold in China than in Europe and in the United States, depending on the month . Three billion people in the world own cell phones. But that still leaves three billion who don t Corbett, 2008 . It is growing. The middle class of India is growing rapidly, making it a very attractive market for consumer products companies. People under thirty make up the majority of the Indian population, fueling the demand for Bollywood Indian-made films. It is not already swamped by competitors, or you have found a way to stand out in a crowd. IBM used to make PCs. However, after the marketplace became crowded with competitors, IBM sold the product line to a Chinese company called Lenovo. Either it is accessible or you can find a way to reach it. Accessibility, or the lack of it, could include geographic accessibility, political and legal barriers, technological barriers, or social barriers. For example, to overcome geographic barriers, the consumer products company Unilever hires women in third-world countries to distribute the company s products to rural consumers who lack access to stores. The company has the resources to compete in it. You might have a great idea to compete in the wind-power market. However, it is a business that is capital intensive. What this means is that you will either need a lot of money or must be able to raise it. You might also have to compete with the likes of T. Boone Pickens, an oil tycoon who is attempting to develop and profit from the wind-power market.


What this means is that you will either need a lot of money or must be able to raise it. You might also have to compete with the likes of T. Boone Pickens, an oil tycoon who is attempting to develop and profit from the wind-power market. Does your organization have the resources to do this? It fits in with your firm s mission and objectives. Consider TerraCycle, which has made its mark by selling organic products in recycled packages. Fertilizer made from worm excrement and sold in discarded plastic beverage bottles is just one of its products. It wouldn t be a good idea for TerraCycle to open up a polluting, coal-fired power plant, no matter how profitable the market for the service might be. ICT platforms for marketing Goods and servicesThey include:Online advertising many businesses advertise through banners on websites. It provides to the customers quickly and easy response. Email marketing it s a form of direct marketing. It s very fast and less expensive. Social media marketing it s a collection of online communication channels. It s a community based input, interaction, content sharing and collaboration. Examples include: Facebook, Twitter, WhatsApp, TiktokBlogging Target marketing- it s about attracting a customer who will buy what you are selling. AdvantagesAnywhere, anytime marketingCost effectiveFastBy using ICT, we can market anywhere, anytime in the world without being their physically. STRAND THREEGOVERNMENT AND GLOBAL INFLUENCE IN BUSINESSGovernment and businessGovernment involvement in business activities is one of the commercial duties it owes its citizens. It is the one that provides the necessary environment for investments to be undertaken by itself, or by the local and foreign investors. This, the government may do in various ways, these include;a Producing goods and servicesb Distributing goods and servicesc Advising producers and tradersd Promoting trade and economic developmente Protecting consumers against exploitation by producers and tradersf As a consumer of goods and servicesReasons for Government involvement in businessThe following are the major reasons for the government s involvement and participation in business activities;1 To prevent exploitation of the public by private businesspersons especially in the provision of essential goods and services such as sugar, transport, communication etc. The Kenya Bureau of standards KEBS regulates the quality of goods consumed in Kenya.


It is the one that provides the necessary environment for investments to be undertaken by itself, or by the local and foreign investors. This, the government may do in various ways, these include;a Producing goods and servicesb Distributing goods and servicesc Advising producers and tradersd Promoting trade and economic developmente Protecting consumers against exploitation by producers and tradersf As a consumer of goods and servicesReasons for Government involvement in businessThe following are the major reasons for the government s involvement and participation in business activities;1 To prevent exploitation of the public by private businesspersons especially in the provision of essential goods and services such as sugar, transport, communication etc. The Kenya Bureau of standards KEBS regulates the quality of goods consumed in Kenya. 2 To provide essential goods and services in areas where private individuals and organizations are unwilling to venture because of low profits high risks involved. 3 To provide essential goods and services which private organizations and individuals are unable to provide due to the large amount of initial capital required b e.g. generation of electricity, establishment of airlines etc. 4 To attract foreign investment by initiating major business projects5 To stimulate economic development in the country e.g. by providing social services6 To provide goods and services which are too sensitive to be left in the hands of the private sector e.g. provision of firearms. 7 To create employment opportunities by initiating projects such as generation of electricity. 8 To prevent foreign dominance of the economy by investing in areas where the locals are not able to9 To redistribute wealth where returns are very high10 To prevent establishment of monopolies. Roles METHODS OF GOVERNMENT INVOLVEMENT IN BUSINESSThe government gets involved in business activities through the following methods: i RegulationThis refers to Rules and restrictions the government requires business units to follow in their business activities. Through this method, the government ensures high quality goods and services and puts in control measures to protect consumers from exploitation. The government regulation measuresinclude;a LicensingA license is a document that shows that a business has been permitted by the government to operate. It is usually issued upon payment of a small fee. Licensing is the process of issuing licenses to businesses. Some of the reasons why the government issues licenses include; Regulating the number of businesses in a given place at any given time to avoid unhealthy competition.


It is usually issued upon payment of a small fee. Licensing is the process of issuing licenses to businesses. Some of the reasons why the government issues licenses include; Regulating the number of businesses in a given place at any given time to avoid unhealthy competition. To control the type of goods entering and leaving the country. To ensure there are no illegal businesses. To ensure that traders engage only in trade activities that they have been licensed for. To ensure that those who engage in professional activities meet the requirements of the profession. To raise revenue for the government. B Ensuring standards enforcing standards; The government regulates business activities by setting standards that businesses should and ensuring that the standards are adhered to. To achieve this purpose, the government has established bodies such as; Kenya bureau of standards KEBS whose main responsibility is to set standards especially for the manufactured goods and see to it that the set standards are adhered to met. Goods that meet such standards are given a diamond mark of quality, to show that they are of good quality. The ministry of public health to ensure that businesses meet certain standards as concerning facilities before such businesses can be allowed to operate. Such standards may include clean toilets, clean water and well aerated buildings. C Legislation; The Government may come up with rules and regulations laws that regulate business activities e.g. banning hawking in certain areas, matatus required to carry certain number of passengers e.t.c. Ii TrainingThe government takes keen interest in training and advising people in business about business management strategies and better ways of producing goods and services. The government offers these services through seminars and courses. This is mainly done by the Kenya Business Training Institute K.B.T.I . Iii Trade promotionThis is a government initiated and supported policy to encourage local business people to enter into business. This is aimed at increasing the volume and variety of goods and services traded in. Trade promotion is classified as either external trade promotion or internaltrade promotion. Legal Requirements for Starting and operating a simple business in KenyaBusiness PermitA business permit indicates that you are licensed to operate by the local county government. KRA PINA Kenya Revenue Authority PIN is among the legal requirements that you need to start a business in Kenya. It is used to facilitate tax compliance with all Kenyans and businesses required to file their tax returns yearly.


Legal Requirements for Starting and operating a simple business in KenyaBusiness PermitA business permit indicates that you are licensed to operate by the local county government. KRA PINA Kenya Revenue Authority PIN is among the legal requirements that you need to start a business in Kenya. It is used to facilitate tax compliance with all Kenyans and businesses required to file their tax returns yearly. TAXATION IN KENYATax: is a compulsory payment by either individuals or organizations to thegovernment without any direct benefit to the payer. Taxation-refers to the process through which the government raises revenue by collecting taxes. Purposes reasons for taxationi. Raising revenue for government expenditure. This is the main reason for taxation. Ii. Discouraging controlling consumption of certain commodities e.g. alcohol and cigarattes which are considered to be harmful. Iii. Discouraging importation of certain commodities in order to protect local industries. This is done by imposing heavy taxes on such commodities. Iv. Controlling inflation. Taxation reduces money supply by reducing peoples disposable income thereby controlling inflation. V. Reducing inequality in income distribution; this is done by taxing the rich heavily and using the finances raised in provision of goods and services that benefit the poor. Vi. Influencing locations of businesses. This is done by taxing businesses located in urban areas heavily and those in rural areas lightly hence businesses moving to rural areas. Vii. Correcting unfavorable balance of payments. High taxes are imposed on imported commodities thereby discouraging their importation leading to an improvement in the balance of payments. Viii. To protect the key selectors of the economy such as the agricultural sector, by stimulating their growth. Factors that determine the amount of money raised through taxationi. Distribution of incomesii. Social and political factorsiii. Honesty and efficiency of tax authoritiesiv. Citizens level of real incomev. Economic structure of the country i.e. relative size of the country s commercial and subsistence sectors. Principles of taxationThese are the characteristics that a good tax system should have. They are also referred to as the cannons of taxation. A good tax system should be;Equitable principle of equity-Every subject of the state should pay tax in proportion to their income. Certain principle of certainty-The tax that an individual should pay should be clear in terms of the amount, time and manner in which it should be paid.


They are also referred to as the cannons of taxation. A good tax system should be;Equitable principle of equity-Every subject of the state should pay tax in proportion to their income. Certain principle of certainty-The tax that an individual should pay should be clear in terms of the amount, time and manner in which it should be paid. The government should also be fairly certain of the amount of tax expected so that planning can be easier. Convenient principle of convenience-Tax levied ought to be convenient to both the contributor and collector, it should be levied at a time when the payer has money and mode of payment should be convenient to both the payer and the payeeEconomical principle of economy-The cost of collecting and administeringthe tax should be lower than the tax so collected. Flexible principle of flexibility-It should be readily adaptable to changing economic times i.e. when the economic conditions of the people improve it should give raised revenue e.g. VATAbility to pay non-oppressive-A tax system should be designed in a way that the amount charged is not too high to the extent that the contributors are unable to pay or is discouraged from working hard. Diversified principle of diversity-There should be different types of taxes so that the tax burden is on different groups in the society. This also ensures that the government has money at all times. Simplicity-A good tax system should be simple enough to be understood by each tax payer. This will motivate them to pay tax. Elastic principle of elasticity-The tax system should be able to generate more revenue for the government by targeting items of mass consumption. STRAND FOURFINANCIAL RECORDS IN BUSINESSBusiness TransactionsA business transaction is a deal between two or more people involving exchange of goods and services in terms of money. Business transaction may take place on cash basis; in which case goods are paid for before or on delivery or a short while after deliveryBusiness transaction may also take place on credit basis; which means payment is made after a specified period from the date of delivery of the goods or the provision of the servicesa Documents used at the inquiry stageThis is the first stage in transaction. An inquiry is a request by a prospective buyer for information on available goods and services.


STRAND FOURFINANCIAL RECORDS IN BUSINESSBusiness TransactionsA business transaction is a deal between two or more people involving exchange of goods and services in terms of money. Business transaction may take place on cash basis; in which case goods are paid for before or on delivery or a short while after deliveryBusiness transaction may also take place on credit basis; which means payment is made after a specified period from the date of delivery of the goods or the provision of the servicesa Documents used at the inquiry stageThis is the first stage in transaction. An inquiry is a request by a prospective buyer for information on available goods and services. It is aimed at establishing the following; Whether the goods or services required are available for sale The quality or nature of the products available The prices at which the goods or services are being sold The terms of sale in respect to payment and delivery of goods or services Some of the documents used at this stage include;i Letter of inquiry;This is a letter written by a potential buyer to the seller to find out the goods and services offered by the seller. A letter of inquiry can be general or specific. A specific letter of inquiry seeks for information about a particular product. Reply to an inquiryThe seller may reply to the letter of inquiry by sending any of the following documents;-Price list-A catalogue-Quotation-A tenderi A price listThis is a list of items sold by the trader together with their prices. The information contained in a price list is usually brief and not illustrated and may include;-Name and address of the Seller-List of the goods and services-The recommended unit prices of the products -Any discounts offeredPrice list show the prices of the commodities at that time. Ii A catalogue; A catalogue is a basket which briefly describes the goods a seller stocks. It is normally sent by the seller to the buyer when the buyer sends a general letter of inquiry.


The information contained in a price list is usually brief and not illustrated and may include;-Name and address of the Seller-List of the goods and services-The recommended unit prices of the products -Any discounts offeredPrice list show the prices of the commodities at that time. Ii A catalogue; A catalogue is a basket which briefly describes the goods a seller stocks. It is normally sent by the seller to the buyer when the buyer sends a general letter of inquiry. It usually carries illustrations on the goods stocked, and could be in the form of attractive and colorful picturesThe content of a catalogue includes the following; Name and address of the seller Details of the products to be sold; inform of pictures and illustrations The prices of the products After-sales services offered by the seller Packaging and posting expenses to be incurred Delivery services to be used Terms of sale-Catalogues carry more information than the price list and they are more expensive to print. Iii Quotation; This is a document sent by a seller to a buyer in response to a specific letter of inquiry. It specifies the conditions and terms under which the seller is willing to supply the specified goods and services to the buyer. The content of a quotation includes the following;-Name and address of Seller-Name and address of the buyer-Description of goods to be supplied -Prices of the commodities-Terms of sale i.e. discounts, time of supply, delivery-Total of the goods to be suppliedQuotations are normally in form of letters, but many large-scale businesses have pre-printed quotations forms which they readily send to the potential customers. Iv A TenderThis is a document of offer to sell sent by a seller to a buyer in response to an advertised requestTenders contain the following;-Date when the tender advertisement was made -Mode of payment-Date of making document -Discounts given-Name and address of prospective seller called the tenderer-The prices at which the goods can be provided-Period of delivery -Mode of delivery-Tenders are delivered in sealed envelopes which are opened by the buyer on a specified dateThe winning tender is usually awarded on the of the lowest quoted price although the buyer is not obliged to accept this especially if quality is likely to be lowTenders are not binding unless accepted by the buyer.


The content of a quotation includes the following;-Name and address of Seller-Name and address of the buyer-Description of goods to be supplied -Prices of the commodities-Terms of sale i.e. discounts, time of supply, delivery-Total of the goods to be suppliedQuotations are normally in form of letters, but many large-scale businesses have pre-printed quotations forms which they readily send to the potential customers. Iv A TenderThis is a document of offer to sell sent by a seller to a buyer in response to an advertised requestTenders contain the following;-Date when the tender advertisement was made -Mode of payment-Date of making document -Discounts given-Name and address of prospective seller called the tenderer-The prices at which the goods can be provided-Period of delivery -Mode of delivery-Tenders are delivered in sealed envelopes which are opened by the buyer on a specified dateThe winning tender is usually awarded on the of the lowest quoted price although the buyer is not obliged to accept this especially if quality is likely to be lowTenders are not binding unless accepted by the buyer. B Documents used at the order stageAfter receiving replies to inquiry in form of price list, catalogue or Quotation, a prospective buyer will study the terms and conditions stated in them, and then may decide to buy products or not. I An OrderIf a prospective buyer decides to purchase an item s , he or she then places an orderAn order is a document sent by a potential buyer to a seller requesting to be provided with specified products under specified terms and conditions-An order issued for goods is called a local purchase order LPO An order issued for services is called a local service order LSO Ways of making an orderi Filling an order form. This is a pre-printed document that is used for making ordersii Writing an order letteriii Sending an e-mail, faxing or sending a short text messageiv Giving a verbal order. Verbal orders have the disadvantage in that they can be misunderstood and there would be no record of items ordered-Where written orders are made, the potential buyer keeps a copy of the order for use in verifying the goods ordered when they are delivered.


I An OrderIf a prospective buyer decides to purchase an item s , he or she then places an orderAn order is a document sent by a potential buyer to a seller requesting to be provided with specified products under specified terms and conditions-An order issued for goods is called a local purchase order LPO An order issued for services is called a local service order LSO Ways of making an orderi Filling an order form. This is a pre-printed document that is used for making ordersii Writing an order letteriii Sending an e-mail, faxing or sending a short text messageiv Giving a verbal order. Verbal orders have the disadvantage in that they can be misunderstood and there would be no record of items ordered-Where written orders are made, the potential buyer keeps a copy of the order for use in verifying the goods ordered when they are delivered. -A written order may contain the following; Name and address of the buyer Name and address of the seller The number of the order Quantities ordered and total amount to be paid Description of the goods ordered Price per item Special instructions on such matters as packaging and deliveryii Acknowledgement noteOn receiving the order, the seller sends the buyer an acknowledgement note An acknowledgement note is a document sent by the seller to the prospective buyer to inform him her that the order has been received and it is being acted upon. After sending the acknowledgement note, the seller has to decide whether to extend credit to the buyer or not. At this stage, the seller has the following options;i If the seller is convinced that the buyer is credit worthy, arrangements are made to deliver the ordered goods or services to the buyer. Ii If the seller is not sure of credit worthiness of the buyer, a credit status inquiry can be issued to the buyer s bankers or to other suppliers who deal with the buyer to ascertain the credit worthiness. Iii If the buyer is not credit worthy then a polite note or a pro forma invoice can be sent to him herA proforma invoiceThis is a document sent by the seller to the buyer requesting the buyer to make payment for goods or services before they are delivered. It indicates that the seller is not willing to grant the buyer credit.


Ii If the seller is not sure of credit worthiness of the buyer, a credit status inquiry can be issued to the buyer s bankers or to other suppliers who deal with the buyer to ascertain the credit worthiness. Iii If the buyer is not credit worthy then a polite note or a pro forma invoice can be sent to him herA proforma invoiceThis is a document sent by the seller to the buyer requesting the buyer to make payment for goods or services before they are delivered. It indicates that the seller is not willing to grant the buyer credit. Functions of a proforma invoicei A polite way of asking for payment before the goods are deliveredii Sent when the seller does not want to give creditiii Used by importers to get customers clearance before goods are deliverediv Issued to an agent who sells goods on behalf of the sellerv Show what the buyer would have to pay if the order is approvedvi Can be used to serve as a quotationCircumstances under which a pro-forma invoice may be used If the seller does not want to give credit If the seller wants to sell goods through an agent If the seller wants to get clearance for imported goods If the seller wants it to function as a quotation If the seller wants to inform the buyer what he she pay if the order is approved e.t.cDocuments used at the Delivery stageAfter the seller has accepted the order sent an acknowledgement note and where necessary the pro-forma invoice, the seller then prepares the goods for delivery to the buyer. This can be done in the following ways; The seller can ask the buyer to collect the goods The seller can deliver the goods to the buyer using his her own means of transport The goods can be delivered to the buyer through public transport The services s can be rendered to the buyer at the sellers or the buyer s premises or at any convenient place. The main documents that are used at this stage are;i Packing note; Before delivery goods are packed for dispatch. This is a document prepared by the seller showing the goods contained packed in every container, box or carton being delivered to the buyer-A copy of the packing note is packed with the goods to make help the buyer have a spot check.


This can be done in the following ways; The seller can ask the buyer to collect the goods The seller can deliver the goods to the buyer using his her own means of transport The goods can be delivered to the buyer through public transport The services s can be rendered to the buyer at the sellers or the buyer s premises or at any convenient place. The main documents that are used at this stage are;i Packing note; Before delivery goods are packed for dispatch. This is a document prepared by the seller showing the goods contained packed in every container, box or carton being delivered to the buyer-A copy of the packing note is packed with the goods to make help the buyer have a spot check. The contents of a packing note include;-Description of goods packed-Quantities of goods packed-The means of deliveryNOTE: A packing not does not contain prices of goods. This ensures that those people involved in checking and transporting goods do not know the value of goods. This is done as a precaution against theft. Ii Advice note; This is a document sent by the seller to the buyer to inform the buyer that the ordered goods have been dispatched. It is usually sent through the fastest means possible. -It contains the following;-The means of delivery -A description of the goods-The quantity dispatched -Date-Name and address of buyer and sellerFunctions of an advice notea Informing the buyer that the goods are on the way so that in case of any delay in delivery, the buyer can make inquiriesb Alerting the buyer so that necessary arrangements can be made for payments when the goods arrivec Can serve as an acknowledgement note, where one is not sent iii Delivery note; This is a document sent by the seller to the buyer to accompany the goods being delivered. -A delivery note is always made in triplicate 3 , one copy remains with the seller and two sent to the buyer. -When the goods reach the buyer, he she confirms that the goods are the ones ordered for and that they are in the right condition by comparing the delivery note, the order and the goods. If the buyer is satisfied with the goods, he she signs the two copies, retains the original and send the copy back to the seller. This serves as evidence that the goods have been received in the right condition and in the right quantities. -Some businesses keep delivery books in which the buyer signs to indicate that goods have been received in good condition.


-When the goods reach the buyer, he she confirms that the goods are the ones ordered for and that they are in the right condition by comparing the delivery note, the order and the goods. If the buyer is satisfied with the goods, he she signs the two copies, retains the original and send the copy back to the seller. This serves as evidence that the goods have been received in the right condition and in the right quantities. -Some businesses keep delivery books in which the buyer signs to indicate that goods have been received in good condition. A delivery book is used by the seller if he she delivers goods by himself herself as an alternative to a delivery noteThe content of a delivery note includes the following;a. Name and address of the sellerb. Name and address of the buyerc. Date of deliveryd. Delivery note numbere. Description of the goods deliveredf. Quantities of the goods deliveredg. Space for the buyer to sign and comment on the condition of the goods received. Iv Consignment noteThis is a document prepared by a transporter to show that he she has been hired to deliver specified goods to a particular buyer. This document is used when goods are delivered to the buyer by public means of transport e.g. by trains. -The seller is the consignor, the buyer is the consignee and the goods the consignment-The transporting company prepares the consignment note and gives the seller to complete and sign. The seller then returns the note to the transporter carrier who takes it together with the goods to the buyer. -On receiving the goods, the buyer signs the consignment note as evidence that the goods were actually transported. The content of a consignment note includes the following; Details of the goods to the transported Name address of seller consignor Name and address of buyer consignee Terms of carriage and conditions of transporting the goods The transportation cost Handling information Destination of goodsv Goods Received note; This is a document sent by the buyer to the seller to inform him her that goods sent have been received. It usually prepared in duplicate, the original is sent to the seller and the copyretained by the buyer. The contents of the goods received note include; Date of the document Name and address of the buyer Name and address of the seller Corresponding purchase order Details of goods received Date the goods were received.


The content of a consignment note includes the following; Details of the goods to the transported Name address of seller consignor Name and address of buyer consignee Terms of carriage and conditions of transporting the goods The transportation cost Handling information Destination of goodsv Goods Received note; This is a document sent by the buyer to the seller to inform him her that goods sent have been received. It usually prepared in duplicate, the original is sent to the seller and the copyretained by the buyer. The contents of the goods received note include; Date of the document Name and address of the buyer Name and address of the seller Corresponding purchase order Details of goods received Date the goods were received. Vi Returned goods note Damaged goods note; If goods are damaged on the way, the buyer may return them to the seller. The buyer may also return goods for other reasons e.g. Wrong type of goods Excess goods Wrong quality goods-When the goods are returned, the buyer informs the seller of the return by sending a goods returned note. -A goods returned note is a document sent by a buyer to a seller to inform him her that certain goods are being returned to the seller. -Where the goods are returned because of damage, the note may be referred to as the damaged goods note. The contents of the goods returned note include; Details of goods that have been returned to the seller Date goods are returned The number of GRN Order number Delivery number Name and address of both buyer and seller-When the seller receives the note together with the goods, he issues a credit noted Documents used at the invoicing stageThis stage involves the seller requesting or demanding for payment from the buyer for the goods or services delivered. Some of the documents used at this stage include:a InvoiceThis is a document sent to the buyer by the seller to demand for payment for goods delivered or services rendered. There are two types of invoices namely:a Cash invoice-This is sent when payment is expected immediately after delivery thus acting as a cash sale receiptb A credit invoice-This is sent when a buyer is allowed to pay at a later date. Functions of an invoicei It shows the details of goods sold i.e.


Some of the documents used at this stage include:a InvoiceThis is a document sent to the buyer by the seller to demand for payment for goods delivered or services rendered. There are two types of invoices namely:a Cash invoice-This is sent when payment is expected immediately after delivery thus acting as a cash sale receiptb A credit invoice-This is sent when a buyer is allowed to pay at a later date. Functions of an invoicei It shows the details of goods sold i.e. quantity delivered, unit price, total value of the goods and terms and conditions of sale. Ii It is a request to the buyer to make paymentiii It serves as an evidence that the buyer owes the seller a certain amount of moneyiv It is used as a source document in recording the transaction in the book of accounts. The contents of an invoice include the following: Invoice number Name and address of the seller Name and address of the buyer Date document is prepared Details of goods repaired Unit prices of goods delivered Total value of goods Discounts offered E and O.E printed at the bottomThe letters E and O.E Errors and Omissions Excepted means the seller reserves the right to correct any errors and omissions made in the invoice.-On receiving the invoice, the buyer verifies the contents using the local purchase order and the delivery note. If the invoice is in order, the buyer makes arrangements to pay the amount stated. Businesses which offer services issue a document called a bill, which serves the purpose of an invoice. B Credit noteThis is a document sent by the seller to the buyer credit buyer to correct an overcharge. It is used to inform the buyer that the amount payable by him her has been reducedAn overcharge is an excess amount charged beyond the right price. Causes of overcharge may include; Arithmetical errors like wrong addition Price overcharges Inclusion of wrong or unordered items in the invoice Failure to deduct the allowable discounts Return of goods damaged goods Failure to note the return by the buyer of packing cases or containers used to deliver goods to him her Use of wrong price list. -The purpose of the credit note is to reduce the total invoice amount by the amount of the overcharge. -A credit note is usually printed in red to distinguish it from other documents.


Causes of overcharge may include; Arithmetical errors like wrong addition Price overcharges Inclusion of wrong or unordered items in the invoice Failure to deduct the allowable discounts Return of goods damaged goods Failure to note the return by the buyer of packing cases or containers used to deliver goods to him her Use of wrong price list. -The purpose of the credit note is to reduce the total invoice amount by the amount of the overcharge. -A credit note is usually printed in red to distinguish it from other documents. -Contents of a credit note include; Name and address of the seller and the buyer Credit note number Date document is prepared Description and value of goods returned by buyer in case that was done Total overchargeReasons why a seller would send a credit note to a buyer circumstances under which a credit note is sent to a buyer. -When there is an overcharge in an invoice-When the original invoice had indicated items that were not supplied-When the buyer returns empty cases crates that had been charged in the invoice. -When the buyer returns some goods to the seller-If the buyer was entitled to a discount which was not given or taken care of in the invoice. C Debit noteThis is a document sent by the seller to the buyer to correct an undercharge on the original invoice. It is used to inform the buyer that the amount payable by him has been increased. -A debit note acts as an additional invoice. -An undercharge arises when amount charged on products is less than their right price. Causes of undercharge include: Price undercharges on items Arithmetic errors mistaken in calculation Omission of items in the invoice Retention of crates and containers that were not involved by the buyer Deductions of more discount than what was give intendedCircumstances under which a debit note will be sent to the buyera When there is an undercharge in the invoiceb If the buyer had been given a discount that was not due to himc If some items had been omitted in the original invoiced If the buyer decides to retain some empty containers or cratesDifferences Between a debit note and a credit noteDocuments used at the payment stageThis is the final stage of a credit business transaction.


-A debit note acts as an additional invoice. -An undercharge arises when amount charged on products is less than their right price. Causes of undercharge include: Price undercharges on items Arithmetic errors mistaken in calculation Omission of items in the invoice Retention of crates and containers that were not involved by the buyer Deductions of more discount than what was give intendedCircumstances under which a debit note will be sent to the buyera When there is an undercharge in the invoiceb If the buyer had been given a discount that was not due to himc If some items had been omitted in the original invoiced If the buyer decides to retain some empty containers or cratesDifferences Between a debit note and a credit noteDocuments used at the payment stageThis is the final stage of a credit business transaction. It takes place after the invoice has been received and ascertained to be correct or where necessary, corrections made. The documents used at the payment stage include;i ReceiptThis is a document issued to the buyer by the seller as proof that payment has been made. -Payment can be done in cash, cheque, other forms of money or in kind-The receipt also serves as a source document for making entries in books of accounts. Contents of the receipt include; Date of payment Name of the person making payment Name of person institution receiving payment Amount paid in words and figures Means of payment Receipt number Signature of person issuing the receipt. -The issuance of a receipt by the seller to the buyer after receiving payment marks the end of the credit transaction between the seller and the buyer where payment has been done in full -A receipt serves the same purpose as the cash sale slipii Statement of AccountThis is a document prepared by the seller and sent to the buyer, giving a summary of all the dealings transactions between them during a particular period of time, usually a month. It has the following details; Date when it was prepared Name and address of the seller Name and address of the buyer Account number Date column-where the date of each transaction is recorded Particulars Details column-where the explanation of each transaction is shown Money column-Debit column-increases in the amounts payable due to credit sales or under charge correction.


Contents of the receipt include; Date of payment Name of the person making payment Name of person institution receiving payment Amount paid in words and figures Means of payment Receipt number Signature of person issuing the receipt. -The issuance of a receipt by the seller to the buyer after receiving payment marks the end of the credit transaction between the seller and the buyer where payment has been done in full -A receipt serves the same purpose as the cash sale slipii Statement of AccountThis is a document prepared by the seller and sent to the buyer, giving a summary of all the dealings transactions between them during a particular period of time, usually a month. It has the following details; Date when it was prepared Name and address of the seller Name and address of the buyer Account number Date column-where the date of each transaction is recorded Particulars Details column-where the explanation of each transaction is shown Money column-Debit column-increases in the amounts payable due to credit sales or under charge correction. -Credit column-Decrease in the amounts payable due to overcharges corrected or payments recorded. -Balance column-Amount owing after each transaction Balance outstanding Any discounts allowed to the buyer Date when the buyer is expected to clear the balance Terms of credit e.t.c. -The statement of account enables the buyer to ascertain the correctness of the transactions which have taken place with the seller over the stated period. Iii IOUAn IOU I owe you is a document written by the buyer and sent to the seller to acknowledge a debt. -It does not specify date when settlement will be made.-It acts as evidence that a debt exists. Methods of payments for goods and servicesThese are the methods or ways the buyer may use to settle debts arising froma business transaction. These are various means of payments that can be used. These means of payments can be put into the following groups;i Cashii Means of payment provided by the post officeiii Means of payments provided by the commercial banksiv Means of payments which arise from private arrangements between sellers and buyersv Other means of payment. E.g. Mobile transaction, Online payments like paypali CashThis refers to the use of notes and coins to make payments.


These are various means of payments that can be used. These means of payments can be put into the following groups;i Cashii Means of payment provided by the post officeiii Means of payments provided by the commercial banksiv Means of payments which arise from private arrangements between sellers and buyersv Other means of payment. E.g. Mobile transaction, Online payments like paypali CashThis refers to the use of notes and coins to make payments. Currency notes and coins are issued by the central Bank of Kenya and are therefore legal tender-Legal tender means everyone is obliged by law to accept them as a means of payment i.e. no one can refuse to accept them as they are backed by the law. Notes and coins are available in different denominations as follows; Coins; 5cents, 50cents, sh.1, sh.5, sh.10 and sh.40Notes; sh.10.sh.20, sh.50, sh.100, sh.200, sh.500 and sh.1000. -Coins are suitable for settling small debts and are acceptable as legal tender up to a certain maximum e.g. 50cents coins the maximum is sh20 and sh.1 the maximum is ksh.100. Advantages of cash as a means of payment:i It is the only means of payment which is a legal tenderii Convenient for settlement of small debtsiii Convenient to people with or without bank accountsiv Cash is readily usableDisadvantages of cash as a means of paymenti Not convenient to carry aroundii Cash can be lost or stolen easily as it is readily usableiii Payment is difficult to prove unless a receipt is issuedCircumstances under which cash payment is appropriatei Where the amounts involved are smallii Where the payee receiver does not accept other means of paymentiii Where cash is the only means availableiv Where the payee requires cash money urgentlyv Where there is need to avoid expenses associated with other means of paymentsii Means of payments provided by the banksCommercial banks are financial institutions that accept deposits to and withdrawals from them. They also lend money to customers. Examples of commercial banks include:Commercial bank of Kenya, National bank of Kenya, Barclays bank, andCo-operative bank e.t.c-There are various means of payments provided by the commercial banks. They are:a.


Advantages of cash as a means of payment:i It is the only means of payment which is a legal tenderii Convenient for settlement of small debtsiii Convenient to people with or without bank accountsiv Cash is readily usableDisadvantages of cash as a means of paymenti Not convenient to carry aroundii Cash can be lost or stolen easily as it is readily usableiii Payment is difficult to prove unless a receipt is issuedCircumstances under which cash payment is appropriatei Where the amounts involved are smallii Where the payee receiver does not accept other means of paymentiii Where cash is the only means availableiv Where the payee requires cash money urgentlyv Where there is need to avoid expenses associated with other means of paymentsii Means of payments provided by the banksCommercial banks are financial institutions that accept deposits to and withdrawals from them. They also lend money to customers. Examples of commercial banks include:Commercial bank of Kenya, National bank of Kenya, Barclays bank, andCo-operative bank e.t.c-There are various means of payments provided by the commercial banks. They are:a. Chequesb. Bank drafts bankers chequesc. Credit transfersd. Standing orderse. Travellers chequesf. Telegraphic transfersg. Debit cardsh.