GRADE 9 Pre-technical – GOVERNMENT AND BUSINESS Quiz
1. What is one main role of the government in relation to business in Kenya?
The government sets rules and policies so businesses operate fairly, safely and legally. It does not run all businesses or give free money to every business.
2. Where do entrepreneurs in Kenya normally register a company?
The Business Registration Service is the government agency responsible for registering companies and businesses in Kenya.
3. Which government body is responsible for collecting most taxes in Kenya?
KRA is the agency that collects taxes such as income tax, VAT and customs duties on behalf of the government.
4. What does VAT stand for?
VAT means Value Added Tax, a tax added at each stage of production and sale of goods and services.
5. Why do businesses need licences from the government?
Licences show a business has met required rules such as health, safety or trading standards; they do not remove tax obligations.
6. Which tax is usually deducted from an employee's salary?
PAYE is the income tax deducted from an employee's salary by the employer before pay is given to the worker.
7. Which agency ensures that goods sold in Kenya meet quality and safety standards?
KEBS sets and enforces product standards to protect consumers and ensure quality.
8. Which authority protects consumers and promotes fair competition in Kenya?
The Competition Authority works to stop unfair business practices like price fixing and monopolies to protect consumers and fair trade.
9. Which of the following is an example of a public good provided by the government?
Public goods like street lighting are available for all to use and are provided by the government because private firms may not supply them for everyone.
10. Why might the government give subsidies to farmers?
Subsidies reduce the costs of fertilisers or seeds so farmers can produce more food and sell at lower prices to help consumers.
11. Which agency issues permits and enforces rules about waste disposal and the environment in Kenya?
NEMA manages environmental protection, including waste disposal permits and pollution control.
12. Which level of government usually issues a single business permit in Kenya?
Single business permits are issued by county governments because local authorities manage trading in their area.
13. What is one likely effect of very high taxes on small businesses?
High taxes raise costs for businesses, reducing profit margins and making it harder for small firms to expand.
14. A food kiosk must often have a licence to operate. What is the main purpose of this licence?
Health licences check that food is prepared and stored safely to protect customers from getting sick.
15. Why are proper business records important when dealing with government agencies?
Good records help calculate taxes correctly, apply for licences or loans, and show the true state of the business.
16. Which government fund is known for supporting young entrepreneurs, women and people with disabilities in Kenya?
The Uwezo Fund provides financial support and training to youth, women and persons with disabilities to start or grow businesses.
17. What does the Competition Authority aim to prevent in the marketplace?
The Competition Authority works to stop firms from fixing prices or blocking others so that markets stay fair and competitive.
18. Why do importers have to pay customs duty when bringing goods into Kenya?
Customs duty is a tax on goods brought into the country; it raises government revenue and can protect local industries.
19. Which document proves that a business is legally registered in Kenya?
A certificate of registration or incorporation is the official document showing a business is legally registered with the authorities.
20. One reason the government sets business regulations is to:
Regulations include laws on working hours, safety and wages to protect employees and create fair working conditions.
21. Which office helps Kenyans access many government services from one place?
Huduma Centres provide a one-stop service point for government services like registration, licences and document applications.
22. What is the main role of the Ministry of Trade in Kenya?
The Ministry of Trade creates policies and programmes that help businesses trade locally and internationally.
23. Why must companies pay corporation tax?
Corporation tax is charged on the profits a company makes and is a source of government revenue.
24. Which tool can the government use to protect local industries from cheaper foreign goods?
Tariffs are taxes on imported goods that make them more expensive so local products can compete better.
25. What is an important role of the county government in supporting local businesses?
County governments handle local services such as markets, local roads and business permits that directly affect small local businesses.