1. PART A: MANAGEMENT OF ASSETS You have been appointed as the asset manager of KK Traders, the owner Informed you amongst other things, the following findings and requested you to report back to him: KK TRADERS The employees of KK Traders always arrive late for work owing to transport problems. To solve this problem the owner of the business acquired a minibus in his own name to transport his workers to and from work. This worked well for him but recently he has been having several problems with the vehicle. The vehicle well- maintained but requests are constantly being made by the driver for more petrol, new tyres and other parts, The owner also noted that the mileage on the vehicle was extremely high yet the area where his employees live is fairly close to the business. He informed his workers that he may want to sell the vehicle and that they would have to find their own transport or he may decide to charge them for transporting them QUESTIONS: 1.1. 1.2. 1.3. 1.4. Although the vehicle is used solely for business purposes, the owner acquired the vehicle in his own name and not in the name of the business. Suggest TWO reasons as to why he did this. (4) How does the provision of transport for employees affect productivity and profit? Mention THREE points. (6) Is it possible that the driver is using the new tyres and spare parts for some other vehicle not belonging to the business? Explain, mention TWO points. Will the business benefit financially should the owner decides to sell the vehicle? Give a reason for your answer, (3) [17]
