2. (a) Explain four essentials of a valid contract. (8 marks) (b) Explain two limitations of sales promotion as a marketing strategy. (4 marks) (c) Work measurement seeks to achieve certain objectives Explain four of these objectives. (8 marks) (a)Distinguish between the following sets of costs, giving an example in each case: (i) fixed costs and variable costs; (ii) factory overheads and administrative overheads. (10 marks) (b) Explain five measures that should be taken to enhance the effectiveness of planning in an organization. (10 marks)

Question

2. (a) Explain four essentials of a valid contract. (8 marks) (b) Explain two limitations of sales promotion as a marketing strategy. (4 marks) (c) Work measurement seeks to achieve certain objectives Explain four of these objectives. (8 marks) (a)Distinguish between the following sets of costs, giving an example in each case: (i) fixed costs and variable costs; (ii) factory overheads and administrative overheads. (10 marks) (b) Explain five measures that should be taken to enhance the effectiveness of planning in an organization. (10 marks)

Answer 1

(a) Four essentials of a valid contract:1. **Offer and Acceptance**: One party must make a clear offer, and the other party must accept it unequivocally. This forms the basis of mutual consent.2. **Intention to Create Legal Relations**: The contract must be entered into with the intention of creating legal obligations. This means it should not be a social or domestic agreement without legal implications.3. **Consideration**: There must be something of value exchanged between the parties. This can be money, goods, services, or a promise to perform a specific action.4. **Capacity to Contract**: Both parties must have the legal capacity to enter into a contract. This means they must be of legal age, sound mind, and not disqualified by any law.(b) Two limitations of sales promotion as a marketing strategy:1. **Short-Term Focus**: Sales promotions are often designed to achieve quick results, which can undermine long-term brand loyalty and customer relationships. This can lead to a dependency on promotions rather than sustainable sales.2. **Increased Costs**: Implementing sales promotions can be expensive, especially if they involve significant discounts or giveaways. These costs can erode profit margins and strain the organization's budget.(c) Four objectives of work measurement:1. **Efficiency Improvement**: Work measurement aims to identify and eliminate inefficiencies in the workplace, leading to more efficient use of resources.2. **Cost Reduction**: By optimizing work processes, organizations can reduce operational costs and improve overall profitability.3. **Standardization**: Work measurement helps in establishing standard procedures and practices, ensuring consistency and quality across different tasks and projects.4. **Performance Evaluation**: It provides a basis for evaluating and improving employee performance, as well as for setting realistic targets and expectations.(a) Distinguish between the following sets of costs, giving an example in each case:(i) **Fixed Costs and Variable Costs**:- **Fixed Costs**: Costs that remain constant regardless of the level of production or sales. Example: Rent for office space.- **Variable Costs**: Costs that vary directly with the level of production or sales. Example: Raw materials for manufacturing.(ii) **Factory Overheads and Administrative Overheads**:- **Factory Overheads**: Costs related to the manufacturing process that are not directly tied to a specific product. Example: Depreciation of machinery.- **Administrative Overheads**: Costs related to the general administration of the organization, not tied to the manufacturing process. Example: Salaries of administrative staff.(b) Five measures to enhance the effectiveness of planning in an organization:1. **Clear Objectives**: Define clear, achievable objectives to guide the planning process. This ensures everyone is aligned and working towards the same goals.2. **Data-Driven Decisions**: Use accurate and up-to-date data to inform your plans. This helps in making informed decisions and avoiding assumptions.3. **Regular Review and Update**: Periodically review and update plans to ensure they remain relevant and effective. This allows for adjustments based on changing circumstances.4. **Effective Communication**: Ensure that all relevant stakeholders are informed and engaged in the planning process. This fosters collaboration and ensures that everyone is aware of their roles and responsibilities.5. **Monitoring and Evaluation**: Continuously monitor the implementation of plans and evaluate their effectiveness. This helps in identifying areas for improvement and making necessary adjustments to stay on track.

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