Communication — July 2024

KNEC Craft Certificate in Sales and Marketing — Module I. Paper code: 1902/105

Attempt the questions before reading the answers. These are independent revision answers, not official KNEC marking schemes. All printed questions are answered for revision, including any optional questions.

Answer all questions in Section A (32 marks) and Section B (68 marks).

Question 1

List three challenges that would be experienced when there is communication breakdown across an organization.

(3 marks)

Answer

  1. Employees may perform the wrong tasks, duplicate work or miss deadlines.
  2. Misunderstandings may create conflict and reduce cooperation.
  3. Decisions and customer service may be delayed because relevant information does not reach the responsible people.

Question 2

List three barriers to oral communication.

(3 marks)

Answer

  1. Noise and other physical distractions.
  2. Language differences or unfamiliar terminology.
  3. Poor listening or divided attention.

Question 3

List four ways in which customers can give feedback to an organization.

(4 marks)

Answer

  1. Completing surveys or customer-feedback forms.
  2. Sending email or written letters.
  3. Speaking to staff in person or by telephone.
  4. Posting messages, comments or reviews through the organisation’s online channels.

Question 4

Give three uses of interpersonal communication.

(3 marks)

Answer

  1. Exchanging information and clarifying instructions.
  2. Building and maintaining working relationships.
  3. Discussing problems and negotiating solutions.

Question 5

State four reasons why mobile phones are commonly used to communicate in organizations.

(4 marks)

Answer

  1. They are portable and allow staff to communicate away from their desks.
  2. Calls and messages can reach people quickly.
  3. They support different forms of communication, including voice, text and online meetings.
  4. They allow rapid two-way feedback and coordination.

Question 6

Give three ways in which an employee can show diplomacy when handling clients.

(3 marks)

Answer

  1. Listen patiently and acknowledge the client’s concern without arguing.
  2. Use polite, respectful language and a calm tone.
  3. Explain available solutions tactfully while protecting confidential information.

Question 7

Rewrite the following sentences inserting the correct punctuation.

  1. a) Kindo an experienced mechanic did not know how to fix the noise in the engine
  2. b) The fruits sold in the market are oranges mangoes bananas and apples
  3. c) Is canned soda better than the bottled one

(3 marks)

Answer

  1. a) Kindo, an experienced mechanic, did not know how to fix the noise in the engine.
  2. b) The fruits sold in the market are oranges, mangoes, bananas and apples.
  3. c) Is canned soda better than the bottled one?

Question 8

List three items that are included under the title Terms of Reference in a report.

(3 marks)

Answer

  1. The person or authority that commissioned the report.
  2. The purpose and scope of the investigation.
  3. The date or deadline for submitting the report.

Question 9

Give three challenges an interviewee may encounter during a job interview.

(3 marks)

Answer

  1. Anxiety or nervousness that affects clear responses.
  2. Unexpected or difficult questions requiring careful thought.
  3. Communication difficulties, such as unclear questions or language barriers.

Question 10

State three roles of the secretary during a meeting.

(3 marks)

Answer

  1. Record attendance, apologies and the proceedings accurately.
  2. Read the previous minutes and supply relevant agenda documents or correspondence.
  3. Record decisions, action owners and deadlines for follow-up.

Question 11(a)

Explain five non-verbal signals that help make communication effective.

(10 marks)

Answer

  1. Facial expressions: an appropriate expression conveys interest, concern or agreement and reinforces the spoken message.
  2. Eye contact: culturally appropriate eye contact shows attention and allows speakers to monitor the listener’s response.
  3. Gestures: purposeful hand or head movements can emphasise points, indicate direction or acknowledge understanding.
  4. Posture and body orientation: an attentive, open posture signals involvement and willingness to listen.
  5. Appropriate interpersonal distance: respecting personal space helps the listener feel comfortable and supports a suitable level of formality.

Question 11(b)

Outline four uses of interviews in an organization.

(8 marks)

Answer

  1. Recruitment: assessing applicants’ qualifications and suitability for a job.
  2. Performance appraisal: discussing an employee’s results, development needs and goals.
  3. Investigations or disciplinary enquiries: obtaining explanations and establishing relevant facts.
  4. Exit interviews: finding out why employees leave and identifying improvements in working conditions.

Question 12(a)

Explain three challenges that may be encountered when using internet connectivity in an organization.

(6 marks)

Answer

  1. Unreliable or slow service: outages and limited bandwidth can interrupt online work, delay communication and reduce productivity.
  2. Security threats: malicious software, phishing and unauthorised access can expose data or disrupt operations, requiring suitable protective controls.
  3. Operating costs: connectivity charges, equipment, maintenance and staff support can place pressure on the organisation’s budget.

Question 12(b)

Kamune Limited is a new firm dealing with the production and distribution of soft drinks. Outline five reasons why its management will require various reports in its operations.

(10 marks)

Answer

  1. Planning: sales forecasts, production reports and stock information help management set output targets and allocate resources.
  2. Decision making: reports provide evidence for choosing suppliers, distribution routes and product lines.
  3. Performance control: comparing actual sales, costs and production with targets shows where corrective action is required.
  4. Problem identification: quality, complaints and delivery reports reveal defects or delays and help investigate their causes.
  5. Accountability and coordination: departmental reports show who has completed assigned work and communicate progress to other managers.

Question 13

Write an essay of not more than 250 words on: “The Importance of Airports to a Country’s Economy”.

(16 marks)

Answer

The Importance of Airports to a Country’s Economy

Airports connect a country to people, goods and opportunities beyond its borders. Their value extends far beyond providing a place where aircraft land and take off.

First, airports support tourism by giving visitors convenient access to destinations. Tourists then spend on accommodation, food, transport and attractions, creating income for many local businesses.

Second, air transport supports trade. Fast movement of high-value or perishable products helps exporters reach distant markets while the goods are still useful. Businesses also receive urgent equipment and supplies more quickly.

Airports create employment directly for airport workers, airline staff, security teams and cargo handlers. They also support jobs in hotels, transport companies, shops and other services around the airport. These activities generate revenue through business income, taxes and service charges.

Reliable air connections can attract investors by making business travel and access to international markets easier. Airports also encourage improvements in roads, communications and other infrastructure that benefit neighbouring communities.

However, these benefits depend on efficient management, safety and suitable investment. Noise, pollution and operating costs must be managed responsibly. A well-run airport therefore strengthens trade, tourism, employment and investment while linking the national economy to the wider world.

Question 14 — Passage

Read the passage below and then answer the questions that follow.

Kenya, like many emerging economies, is challenged by fluctuations in the foreign exchange market (Forex). The country’s reliance on loans from other countries to support various sectors of its economy has exposed it to the risks associated with exchange rate instability. In recent years, Kenya has experienced fluctuations in the Kenya Shilling due to various global and domestic factors. These fluctuations have made it challenging for businesses, investors, and the government to accurately predict future exchange rates leading to increased uncertainty in financial planning.

As forex market problems persist, Kenya has also experienced a significant rise in loans borrowed using the dollar. Private businesses and the government have turned to borrowing from outside markets like China to access cheaper loans to fund big projects. The appeal of lower interest rates charged on foreign dollar-denominated loans, combined with limited domestic funding sources, has made dollar loans an attractive option.

The forex market plays a crucial role in facilitating international trade and investment. For an import-dependent economy like Kenya, the forex market is essential for purchasing goods and services from abroad. Moreover, it influences the cost of repaying foreign loans and the value of investments made by foreign organizations in the country. However, this growing reliance on foreign debt exposes the country to exchange rate risks.

As the value of the Kenya Shilling depreciates against the Dollar as has been witnessed in the recent past, the cost of repaying these loans in the Kenyan currency is rising significantly. This situation is straining businesses and government finances leading to potential repayment challenges and the possibility of defaulting on the loans. Further, the increased risk of loan default could harm the country’s credit rating, make it more expensive to borrow internationally, and greatly affect investor confidence.

In addition, the depreciation of the Kenya Shilling raises the cost of importing goods leading to inflation which, in turn, increases the cost of living. The high cost of living is impacting households especially those with fixed incomes. It has reduced their ability to purchase goods and services hence affecting consumer spending and economic growth. Moreover, fluctuations in exchange rates have slowed down foreign direct investment with investors shying away from committing money to a market with an unpredictable currency. This has affected job creation and economic development.

To address the challenges arising from the rise in dollar loans, various measures can be taken to enhance the economic strength of the country. One measure is the diversification of lending sources by looking for funds from multiple sources, both domestic and foreign. Another measure available to the government to resolve the challenges is to take insurance against the possibility of fluctuation of the dollar using financial contracts with various institutions. Further, strengthening forex reserves can provide a buffer during times of currency fluctuation which allows the government to come in and stabilize the exchange rate. The forex reserves should be used sensibly where import of luxury items is put off until the situation improves.

A separate fund should also be set up for government imports such as fuel. Consequently, this should be given only to banks to settle government imports. The banks should not set any profit margin for these payments. This will in turn help reduce pressure on the private sector demand for the dollar for the importation of other essential goods. Lastly, adopting monetary policies can help maintain stability and reduce the inflation due to external shocks.

The current exchange rate fluctuations, especially in the country’s import driven economy, do not favour businesses or individuals. To cushion the country against the fluctuations, the government should be proactive in taking the necessary measures to stabilize the Shilling.

Adapted from: Festo Akonde Imbo, www.linkedin.com, 27 July2023

Question 14(a)

State the meaning of the following words and phrases as used in the passage: (i) predict; (ii) attractive; (iii) essential; (iv) potential; (v) shying away from; (vi) put off.

(6 marks)

Answer

Word or phrase Meaning in the passage
predict Forecast or say in advance what is likely to happen.
attractive Appealing or desirable.
essential Necessary or very important.
potential Possible; capable of happening.
shying away from Avoiding or being reluctant to undertake.
put off Postponed or delayed until later.

Question 14(b)

In about 120 words, and according to the passage, write a summary on the likely effects of the Kenya Shilling depreciating against the dollar.

(9 marks)

Answer

Depreciation of the Kenya Shilling increases the local-currency cost of repaying dollar loans, straining government and business finances. Borrowers may face repayment difficulties and default, damaging the country’s credit rating and making future foreign borrowing more expensive. Investor confidence may also weaken. Imports become costlier, causing inflation and increasing living expenses. Households, particularly those with fixed incomes, lose purchasing power and reduce their consumption of goods and services. Lower consumer spending slows economic growth. An unpredictable exchange rate also discourages foreign investors from committing funds. Reduced foreign direct investment limits new business activity, job creation and economic development. Overall, depreciation intensifies financial uncertainty and places pressure on borrowers, consumers and the wider economy.

Question 14(c)

Highlight, according to the passage, three measures the government can take to enhance the country’s economic strength.

(3 marks)

Answer

  1. Diversify borrowing and funding sources by using both domestic and foreign sources.
  2. Use financial contracts to hedge or insure against fluctuations in the dollar.
  3. Strengthen foreign-exchange reserves so that they provide a buffer during currency fluctuations.
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