Question 1
- Outline five problems of barter trade.
- Domingo, an imported of used vehicles feels that he does not need a computer.
- Explain to him five benefits of using computers in the conduct of his business.
Observation
Many candidates attempted this question and performed well in 1a. However most candidates could not explain the benefit of the use of computers in the conduct of business as expected in question 1b.
The expected responses to the question include:
1.(a) The problems of barter include:
- Double co-incidence of wants;
- No fixed rate of interest;
- Wastage of time and effort;
- Indivisibility of goods;
- Discouraging borrowing and lending/no deferred payment;
- Difficulty in storing wealth;
- Bulkiness of goods;
- Measurement of value of goods.
(b) Benefits Domingo could derive by using computers in the conduct of his business:
- He could use a computer to communicate with his suppliers and customers
through email faster;
- The use of spread sheet and accounting software could help him to keep his
accounts better than doing it manually (accurate and reliable data);
- He could search for cars available for sale as well as potential buyers
through the internet on the computer;
- The use of computer reduces the time and cost of doing business;
- Information about suppliers, debtors and potential customers could be
stored in the computer for ease of retrieval;
- Diagnostics of the state of vehicles he purchases could be done by using a
computer system/ to detect problem;
- He could use a computer to transfer funds as well as know the state of
his accounts;
- He could use a computer to secure his premises through the use of close
circuit television (CCTV);
- He could use a computer to monitor his vehicles with the help of tracking device installed in the vehicle in case of theft;
- He could use computer for confidentiality as access to information is not possible without the knowledge of the password;
- Data processed on the computer are more accurate and reliable than the one manually done.