JAMB UTME - Commerce - 2024

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When shares are quoted on a stock exchange, it signifies the price at which the stock is available for purchase. The problem provides two prices regarding the shares of ABC Plc:

• #0.75K - This is the par value of each share. The par value is a nominal or face value of a share when it is initially issued. It is the minimum price that the company has set to start with.
• #1.25K - This is the price per share at which these shares were sold in the market. When the selling price is higher than the par value, it means the shares were sold at a premium.

In this scenario, since the selling price (#1.25K) is higher than the par value (#0.75K), the shares were sold at a premium. Therefore, the stocks of ABC Plc were sold for more than their face value, which indicates that investors were willing to pay more than the nominal value for those shares, typically due to the company's perceived potential or existing market demand.

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Nationalization of industries is primarily aimed at bringing an industry under state ownership and control. This means that the government takes ownership of certain industries or sectors, rather than leaving them in private or foreign hands.

There are several reasons a government might choose to nationalize an industry:

1. Ensure National Control: Nationalization is used to ensure that important industries, such as natural resources or critical infrastructure, remain under national control and are protected from foreign influence or exploitation.

2. Social Welfare: The state can prioritize social welfare over profit by ensuring that essential goods and services (like electricity, water, and healthcare) are accessible and affordable to all citizens.

3. Economic Stability: By owning and controlling key industries, the government can directly influence economic activities, stabilize markets, and support strategic economic goals. This can include preventing firms from liquidation in cases where those firms are crucial for national economic stability.

4. Redistribution of Wealth: Nationalization can be a tool for redistributing wealth, particularly if industries are previously owned by a small, wealthy segment of the population or foreign entities.

5. Promote Employment: The government may aim to maintain or increase employment opportunities in crucial industries by keeping them operational and under state management.

Overall, while making profits for the government can be a benefit of nationalization, the primary objective is often that of exercising control over key industries for the aforementioned strategic and social reasons.

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Working capital is a financial metric that represents the difference between a company's current assets and current liabilities. It is used to assess a company's short-term liquidity and operational efficiency. In calculating working capital, we focus on the **current assets**, which are assets that are expected to be converted into cash or used up within one year.

Among the options provided:

• Furniture and fittings: These are considered **fixed assets** or **non-current assets** because they are used over a long period and are not expected to be converted into cash within a year.
• Stock of raw material: This is a **current asset** because it is expected to be used or sold in the production process within a short period, typically less than a year. Thus, it is part of the calculation of working capital.
• Machinery: Similar to furniture and fittings, machinery is a **fixed asset** as it is used over many years and not sold or consumed within the short term.
• Office equipment: Like furniture and fittings, office equipment is also considered a **fixed asset** for similar reasons.

Therefore, the **stock of raw material** is used in calculating working capital because it is a **current asset**. Working capital is calculated using the formula:

Working Capital = Current Assets - Current Liabilities

In this formula, **current assets** would include items such as stocks of raw material, cash, accounts receivable, etc. As a result, stock of raw material is relevant for determining a company's ability to meet its short-term obligations and manage day-to-day operations.

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The term **credit instrument** refers to a written document that provides evidence of a borrower's promise to repay a debt. These instruments allow the transfer of money or credit between parties. Each of the options given is assessed below:

Bill of Exchange: This is a written order used primarily in international trade that binds one party to pay a fixed sum of money to another party at a predetermined future date. It is a credit instrument as it facilitates deferred payments.

Bank Notes: These are the paper currency issued by a central bank that people can use to pay for goods and services. They are not credit instruments because they represent actual money rather than a promise to pay in the future.

Cheques: A cheque is a written order directing a bank to pay money as instructed from the account holder's balance. It is a credit instrument as it allows the holder to defer payment until it is presented at the bank.

Bill of Lading: This is a document issued by a carrier to acknowledge receipt of cargo for shipment. It is mainly used to transfer goods and does not involve deferred payments or evidence of a debt, thus it is not a credit instrument.

Therefore, among the given options, the Bill of Lading is NOT a credit instrument as it is primarily related to the shipment and receipt of goods, and not to financial credit or promises of payment.

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In the context of a public limited company, a prospectus refers to a formal document that is issued by the company to provide essential information to potential investors. It serves as an invitation to the public to buy shares in the company.

The main purpose of the prospectus is to help potential investors make informed decisions about whether or not to invest in the company's shares. It typically contains details such as:

• The nature of the business and its operations.
• The types of shares being offered and their respective terms.
• Financial statements and future business plans.
• Information about the company's management and governance.
• The risks associated with investing in the company.

The prospectus is a crucial document because it ensures transparency and allows investors to assess the potential risks and rewards involved in purchasing shares from the company.

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Closing stock is also known as Ending Inventory. It refers to the amount of inventory or stock that remains unsold at the end of an accounting period. This can include raw materials, work-in-progress, and finished goods. Closing stock is important for financial reporting, as it affects the cost of goods sold and, ultimately, the company's profit. It is calculated by taking into account all the inventory purchases and subtracting the cost of goods that have been sold during the period. To express it simply, closing stock is what is left over after sales have been accounted for.

• The term stock at close can be misleading, as it might imply the price of a stock market asset at the end of a trading day.
• Balance brought forward refers to the balance amount of funds or stock from the previous period brought into the current one, not the ending stock.
• Opening inventory refers to the stock at the beginning of the accounting period, not at the end.
• Stock at beginning is synonymous with opening inventory and is not equivalent to closing stock.

Therefore, the correct and precise term for closing stock is Ending Inventory.

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Marketing is a broad concept that involves various activities to promote and sell products or services. Let's briefly explore each option in relation to marketing:

Packaging: This is a marketing function that involves designing and producing the containers or wrappers for a product. The purpose of packaging is to protect the product, facilitate its storage and transport, and make it appealing to consumers.

Distribution: This function refers to the process of getting the product from the manufacturer to the consumer. It involves activities like transportation, warehousing, and supply chain management, ensuring that the product is available to customers at the right time and place.

Advertising: Advertising is a marketing function that focuses on promoting a product or service through various media channels. The aim is to inform potential customers about a product, persuade them to purchase, and build brand awareness.

Insurance: This is not a marketing function. Insurance is a financial service that provides risk management and protection against potential financial losses. While businesses may use insurance to protect their assets, it is not a function aimed at promoting and selling products or services like the other activities mentioned.

In summary, insurance is not a function of marketing. It stands apart as a service focused on risk management rather than the promotion and sale of products or services.

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The aid to trade that enables a producer and consumer to transact business without physical contact is known as communication.

To understand why, consider the following: Communication is a process that involves the exchange of messages, ideas, and information. With modern technology, such as telephones, emails, and the internet, communication allows people from various locations to interact and conduct business seamlessly. This eliminates the necessity for face-to-face meetings.

For example, a consumer can order a product online and communicate with the seller via chat or email. Similarly, a producer can advertise a product to a global audience through digital platforms without any need for physical presence. These exchanges are facilitated primarily by effective communication.

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The scenario you described is an example of a general average loss. This term is used in maritime law and insurance. It refers to a situation where part of the cargo or equipment is deliberately sacrificed or damaged to save the rest of the ship and its cargo from imminent danger. In this case, the throwing of some goods into the sea is done to prevent the ship from sinking, which benefits all parties involved. As a result, the losses are shared proportionally among all stakeholders, such as the shipowner and cargo owners. This shared approach to dealing with loss is known as a general average loss.

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The principle of insurance that ensures an individual is restored to his former position after suffering a loss is the principle of indemnity. This principle is based on the idea that insurance is meant to compensate for the financial loss or damage suffered, and nothing more. It ensures that the insured party is not put in a better position than they were before the loss. The goal is simply to bring the insured back to the status they were at before the loss occurred. In essence, indemnity prevents the insured from profiting from an insurance claim, ensuring that they are compensated fairly and justly for their actual loss.

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A holding company is a corporation that owns enough voting shares in another business to control its management and policies. Control is typically established by owning the majority of the voting stock. In most cases, owning over 50% of the voting shares is considered having sufficient control. Thus, a holding company generally holds shares up to 51% or more in another company to exercise control. To further clarify:

• Owning 51% or more allows the holding company to make significant decisions and influence the strategic direction of the company it holds.

Therefore, a holding company usually holds shares up to and typically beyond 51% in another company to ensure they can steer the business according to their interests and policies.

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The document that provides complete information about the goods sold is the invoice.

An invoice is a detailed statement provided by the seller to the buyer containing important information regarding the sale of goods. Here’s why it is deemed so comprehensive:

• Itemized List: It includes an itemized list of the goods sold, along with descriptions, quantities, and unit prices.
• Total Amount: It shows the total amount payable by the buyer, including applicable taxes and discounts.
• Terms of Sale: It outlines the terms and conditions of the sale, such as payment due date and methods of payment.
• Identification Details: It contains essential information like the invoice number and date, which helps in tracking and reference.
• Seller and Buyer Information: It includes the names, addresses, and contact details of both the seller and the buyer.

In contrast, the order form is a document generated by the buyer to request goods but doesn't contain the details of the actual sale. A delivery note accompanies goods to confirm delivery but lacks pricing and terms. Lastly, a bill of exchange is a financial document used for payment agreements, not for detailing goods sold.

Therefore, the invoice is the key document providing complete information about the goods sold.

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Fishing is an example of the extractive industry. This industry involves activities that extract natural resources from the earth or water bodies. In the case of fishing, it means obtaining fish and other sea creatures from oceans, rivers, and lakes. The extractive industry is characterized by the removal of raw materials from their natural environment without any transformation into other forms before they are further processed, utilized, or consumed.

For example, when fishermen catch fish, they are directly taking resources from nature without altering them. These resources can either be directly consumed or processed into different products, depending on the demand and usage.

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A bill of exchange that is sold for less than its face value before maturity is said to be discounted.

Here's a simple explanation: A bill of exchange is a written order used in international trade that binds one party to pay a fixed sum of money to another party at a predetermined future date or on demand. When you hold a bill of exchange and decide to sell it before its maturity date, you usually sell it for less than its full value. This is because the buyer is taking on the risk of waiting for the maturity date to receive the full amount, and they are compensated for taking that risk by paying less than the bill's face value.

This process is known as discounting the bill of exchange. The amount you receive in the sale is called the discounted value, while the difference between the face value and the discounted value is known as the discount. Discounting is a common financial practice and allows the holder of the bill to get immediate funds, albeit at a lesser amount than the bill's face value.

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A bonded warehouse is a secure facility where goods are stored, and duties or taxes are deferred until the goods are removed and sold. These warehouses play a crucial role in international trade.

A bonded warehouse is specifically controlled and supervised by customs authorities. Customs are responsible for the regulation and examination of goods that are imported or possibly exported from the country.

Here is why customs control bonded warehouses:

• Duty Regulation: Customs is in charge of collecting import duties and taxes. By regulating bonded warehouses, customs ensures that these financial obligations are met before goods are released.
• Security and Compliance: Customs ensures that the goods stored in bonded warehouses comply with local and international trade regulations, preventing illegal trade activities.
• Inventory Control: Customs keeps track of stored goods, ensuring that none are lost, swapped, or improperly documented.
• Efficient Trade Facilitation: Customs authorities expedite the clearance process for goods stored in bonded warehouses, reducing delays and enhancing international trade efficiency.

This control by customs is crucial for maintaining transparency and compliance in the import and export of goods, ensuring the appropriate duties are collected and that regulations are respected.

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To establish an importer's title to goods, the most significant document among the given options is the Bill of Lading.

The Bill of Lading is a legal document issued by a carrier to a shipper. It has multiple roles, including serving as a:

• Receipt for the shipped goods, confirming that the goods are loaded onto a transport vehicle, like a ship.
• Title of document, giving the holder the right to claim ownership of the goods. It functions as a document of title to the goods described in it.
• Contract of carriage that details the terms for transporting the goods from the port of loading to the port of discharge.

The other documents mentioned have different purposes:

• A Cargo Receipt is generally a document acknowledging that the goods have been received. However, it does not serve as a document of title.
• A Way Bill is a non-negotiable document that accompanies goods in transit. It provides information about the shipment, but it is not effective in transferring title.
• An Import License is a governmental document that permits the importation of certain goods into a country. It does not concern ownership or title to the goods themselves.

In summary, the Bill of Lading is the primary document used to establish an importer's title to goods, serving as both an acknowledgment of the shipment and a legal claim to the goods.

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Under the Hire Purchase System, the transfer of ownership of goods occurs when the buyer completes all the terms of the agreement. Specifically, this means that the ownership is transferred only when the final instalment is paid. Until the final payment is made, the ownership of the goods remains with the seller or the finance company facilitating the hire purchase. This arrangement allows the buyer to use the goods while making payments in instalments, but the buyer does not become the legal owner until they fulfill the entire payment commitment. Therefore, **the final payment is crucial** for the change of ownership, ensuring that all obligations under the agreement are satisfied.

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The association that encourages savings for the benefit of its members is known as a Credit and Thrift Co-operative Society.

Let me explain this in simple terms:

• A Credit and Thrift Co-operative Society is a type of organization where members voluntarily come together to save their money on a regular basis.
• The primary purpose of this type of society is to encourage savings among its members. It helps members accumulate their savings in a safe and structured manner.
• These societies also provide members with access to credit or loans. The money saved by the members is used to give loans back to them at low-interest rates, which is beneficial for individuals who may not have easy access to standard banking loans.
• The profits made by the society through lending are typically shared among the members, hence everyone benefits from their collective savings.

In summary, a Credit and Thrift Co-operative Society is all about saving money together as a group and supporting each other financially by providing easy access to loans.

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Advertising primarily focuses on promoting products or services to potential customers. Here are typical aims of advertising:

• Inspiring public confidence in the goods: Advertising aims to build trust in a product, showing potential customers that it is reliable and worth purchasing.
• Arousing the interest of the public: It creates interest by informing people about the features and benefits of a product, making them curious or eager to try it.
• Attracting the attention of the public: Advertising uses various techniques to capture the audience's attention, making them aware of the product or service.

On the other hand, reducing the cost of the goods produced is NOT an aim of advertising. This is more associated with production processes and cost management strategies within a company. Advertising itself often incurs costs and does not directly reduce production expenses but is intended to increase sales and generate revenue, which can offset costs over time.

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The body responsible for monitoring the quality of goods supplied is the Nigerian Standards Organization. This organization, also known as the Standards Organization of Nigeria (SON), is charged with setting and ensuring compliance with product quality standards for goods in the country. Their primary role is to develop and implement standards that help safeguard both consumers and the environment by ensuring that products are safe, reliable, and of good quality.

The SON conducts inspections, tests, and other evaluative measures on products to ascertain their quality. Additionally, they educate manufacturers and stakeholders about necessary standards and oversee adherence to these standards in production and distribution processes. Through these activities, the organization aims to protect consumers from harm, fraudulent practices, and low-quality products, while also enhancing the competitiveness of Nigerian goods both locally and internationally.

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When the price quoted includes all the costs from the seller's warehouse to the buyer's warehouse, it is referred to as "Franco".

In the context of goods transportation and sales, "Franco" means that the seller is responsible for all the costs associated with delivering the goods to the buyer's specified location. This includes packaging, loading, transportation, and unloading costs. Basically, the buyer does not have to worry about any extra charges that might occur while the goods are being transported. The seller takes care of everything until the goods reach the buyer's destination.

In contrast, terms like "Loco price" and "Carriage paid" have different conditions regarding the division of responsibilities and costs between the buyer and seller. For instance, "Loco price" typically involves the buyer bearing the cost of picking up the goods from the seller's location, while "Carriage paid" implies that the seller pays the carriage charges up to a certain point.

Overall, "Franco" provides a convenient option for buyers who prefer not to handle the logistics of moving goods from the seller to their final destination.

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Ships that pick up cargo from any port and travel anytime are known as tramps.

Tramp ships are like the "taxis" of the sea. They do not have a fixed schedule, route, or a fixed rate of charge. Instead, they go where cargo is available, which might mean visiting multiple ports at irregular times. They 'tramp' around, picking up loads wherever and whenever there is a need. This is different from other types of ships, such as liners, which operate on fixed schedules and routes.

Tramp shipping is very flexible and can cater to sudden changes in supply and demand, making it ideal for carrying bulk cargoes, like coal or grain, which might not be available regularly or may need prompt transportation.

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A ship that does not have a fixed schedule and travels wherever it can find cargoes to carry is known as a tramp ship.

Here's why it is called a tramp ship:

Tramp ships operate differently from other types of vessels, such as liners or ferry boats. They do not follow a set route or schedule. Instead, they are flexible and can go to any port where there is cargo to be transported. This means that their operations are based on demand rather than a predetermined timetable.

To put it simply, a tramp ship is like a freelance vessel that looks for cargo opportunities and travels based on where the work is, rather than sticking to a specific route or timeline. This provides a degree of freedom and responsiveness to market demands that fixed-schedule ships, like liners, do not have.

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A **partnership** refers to a type of **business structure** where two or more individuals come together to run a business, share in its profits or losses, and have a certain level of responsibility for the business. In a specific form of partnership known as a **"general partnership,"** **all partners have unlimited liability** and **jointly manage the business**. Let me explain these key points clearly:

• Unlimited Liability: In a general partnership, all partners are personally responsible for the business debts and obligations. If the business cannot pay its debts, the partners' personal assets can be used to cover these debts.
• Joint Management: All partners actively participate in the decision-making and day-to-day operations of the business. They contribute to managing the business and enjoy a say in business matters.

Since all partners have **unlimited liability** and together manage the business daily, it suggests that this is a description of a **general partnership**. This is distinct from other types of partnerships, where liability could be limited to the amount each partner invested, or where some partners may not be involved in the management. Therefore, the partnership described is not an "ordinary," "nominal," or "limited" partnership. Instead, it truly encapsulates the essence of a **general partnership**.

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The advertising medium that preselects its readership through the nature of its content is the magazine.

Magazines are designed to cater to specific interests and demographics, meaning they often attract readers who are interested in particular topics or subjects. For instance, there are magazines on hobbies like photography, fashion, technology, sports, and many more. Because they focus on specific themes, they naturally draw in an audience that is interested in those areas. Advertisers can use magazines to reach a target audience that aligns with their product or message.

In contrast, other media such as billboards, handbills, and newspapers are generally more broad and do not specifically tailor their content to a particular interest group. For example, newspapers cover a wide range of topics like news, sports, and entertainment, reaching a more general audience. Billboards and handbills aim to capture anyone who happens to see them.

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The instruction given to an agent abroad restricting him to buy from a specific or named manufacturer is known as a closed indent.

Let me explain it in a straightforward way:

1. **Indent:** This is a purchase order sent by a buyer to an agent or supplier to buy goods on their behalf. It contains details about the product, quantity, and specifications.

2. **Closed Indent:** This type of indent indicates that the buyer has decided to purchase products from a particular, specified manufacturer or supplier. The agent must comply with this restriction while procuring the goods. The buyer has already made a choice, and the agent is simply carrying out their instructions.

In contrast, an **open indent** allows the agent to choose the manufacturer or supplier from whom to buy the goods, as long as the buyer’s requirements are met. So, the key difference is the level of freedom or restriction given to the agent in selecting the supplier.

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The Nigerian Enterprises Promotion Decree of 1973, also known as the Indigenization Decree, was a significant policy implemented by the Nigerian government aimed at promoting indigenous participation and ownership in the country's economy. The decree outlined provisions for the transfer of ownership and control of certain businesses from foreign owners to Nigerian citizens.

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In order to determine which of the options does not fit into the group, we should first classify each of them based on their primary nature or sector.

Agriculture involves the cultivation of land and breeding of plants and animals to provide food, fiber, and other products used to sustain and enhance life. It primarily falls under the category of primary industry that deals with the extraction and harnessing of natural resources directly from nature.

Fishing also involves extracting biological resources directly from nature, specifically aquatic life from water bodies. Like agriculture, it is categorized under primary industry and focuses on the direct procurement of resources provided by nature.

Mining is the extraction of minerals or other geological materials from the Earth, and it is considered a part of primary industry as well. It involves the direct extraction of non-renewable resources from nature.

Carpentry, on the other hand, is a skilled trade in which the primary work performed is the cutting, shaping, and installation of building materials during the construction of buildings, ships, timber bridges, etc. Carpentry is considered a part of the secondary industry, which involves manufacturing and processing of raw materials into finished goods or products.

Therefore, Carpentry does not fit into the group because, unlike agriculture, fishing, and mining, it is not a primary industry activity. It belongs to the secondary industry, which focuses on the transformation of raw materials into finished products.

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A contract in which all parties have fully met their obligations is said to be terminated by performance.

Here's an explanation:

• When a contract is terminated by performance, it means that all the parties involved have successfully carried out the duties and promises as outlined in the contract. Each party has done what they agreed to do, and once this has been completed, the contract comes to an end naturally.
• For instance, if a person hires a painter to paint their house and the painter completes the job to the agreed specifications, then the contract is terminated by performance. Both parties have fulfilled their end of the agreement: the homeowner has paid, and the painter has completed the work.

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The calculation of **gross profit** is done by taking the total **sales revenue** and subtracting the **cost of goods sold (COGS)**. Hence, the correct formula to calculate gross profit is:

Gross Profit = Sales - Cost of Goods Sold

Let's break it down for clarity:

• **Sales** refers to the total revenue earned from selling goods or services. It is the income received from customers before any costs are deducted.
• **Cost of Goods Sold (COGS)** represents the direct costs attributable to the production of the goods sold. This includes expenses such as the cost of materials and direct labor involved in producing the goods.

The **gross profit** reflects the company's **profitability** related to its core operations, excluding other expenses such as operating expenses, taxes, and interest.

For example, if a company records total sales of $100,000 and its cost of goods sold is $60,000, the gross profit would be:

Gross Profit = $100,000 - $60,000 = $40,000

The gross profit of $40,000 provides insight into the financial **efficiency** of the company's production and sales processes.

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Pre-sales services are the activities and support provided to potential buyers before the actual sale takes place. These services aim to assist customers in making informed purchasing decisions and to facilitate a smooth sales process. They typically include activities such as providing information about the products, answering inquiries, and assisting with product selection. However, granting credit or hire purchase sales facilities is not typically considered a pre-sales service.

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Departmental stores, supermarkets, and chain stores are examples of large scale retailers. This is because they operate on a much larger scale compared to typical small shops. Here’s why each of these falls under this category:

• Departmental Stores: These are large retail establishments that offer a wide variety of goods organized into different departments. Each department specializes in one category like clothing, electronics, or groceries, allowing customers to find multiple products under one roof. They usually require a significant amount of space and capital, characteristics of large scale operations.


• Supermarkets: These are giant stores that focus primarily on food and other grocery items, but they often sell various household goods as well. With their self-service model and extensive range of products, they require vast spaces and are generally positioned in well-populated areas to cater to a large number of customers. This makes them typical examples of large scale retailing.


• Chain Stores: These are a series of retail outlets that are under the same brand and management. They follow a standardized approach across different locations, ensuring uniform quality and service. Due to their widespread presence and strategic operations, they are categorized as large scale retailers.

In summary, all these stores are structured to cater to a vast number of customers with extensive offerings, significant inventory, and often require substantial investment and infrastructure, which are defining traits of large scale retailers.

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A tariff is a compulsory levy imposed by a government on imported goods only. This means that when products are brought into a country from abroad, a tax or duty is charged by the government on these goods. Tariffs are typically used to protect domestic industries from foreign competition by making imported goods more expensive, encouraging consumers to buy locally produced items. They can also be a source of revenue for the government. By increasing the cost of imports, tariffs influence the prices and choices available to consumers, often making domestic goods more appealing. In summary, tariffs are specifically associated with imports, not exports, foreign exchange earnings, or foreigners working in a particular country.

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The type of tax that is paid on goods that are manufactured and consumed within a country is called excise duty.

Excise duty is essentially a tax on the manufacturers of certain goods and products within the country. It is typically levied on goods that are considered either luxurious or harmful if over-consumed, such as cigarettes, alcohol, or fuel. The government imposes this tax to either limit the consumption of these goods, to increase government revenue, or both.

This tax is different from custom duty or income tax. Custom duty is charged on goods that are imported into a country, whereas income tax is charged on individuals' or entities' earnings.

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In insurance, there are several fundamental principles that ensure the contractual agreement between the insurer and the insured is fair and effective. Among these principles, three are well-known:

Insurable Interest: This principle states that the insured must have a financial stake in the object or life insured. The policyholder should suffer a financial loss if the insured event occurs. This ensures that insurance is not a mere gambling proposition.

Utmost Good Faith (Uberrimae Fidei): Both parties involved in an insurance contract are required to disclose all relevant information truthfully. The insured must reveal all material facts, and the insurer should provide honest terms and conditions.

Subrogation: After compensating the insured for a loss, the insurer may step into the shoes of the insured to seek recovery from a third party responsible for the loss. This principle prevents the insured from profiting more than once for the same loss.

On the other hand, the term "Particular Average" is not one of the fundamental principles of insurance. Instead, it is a maritime insurance term used to describe partial loss or damage to a ship or its cargo that is not shared by all parties but borne only by the individual whose cargo was damaged. Therefore, among the options provided, "particular average" is the exception as it is not a principle of insurance.

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A person who runs a business on his own account is called a sole trader. This term refers to an individual who owns and operates their business independently, without forming a company or corporation. They are solely responsible for all aspects of the business, including decision-making, profits, and losses.

Here's a simple way to understand this:

Sole: This means "one" or "single," indicating that there is only one person in charge.

Trader: This refers to someone who engages in selling goods or providing services.

Therefore, a sole trader is someone who runs their business independently and takes full responsibility for its operation. They do not have partners or additional directors in the business.

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A dealer who buys securities at low prices in anticipation of reselling them at higher prices is called a bull.

Here's a simple explanation:

• Bull: A bull is an investor who expects the prices of securities, such as stocks or bonds, to rise over time. In anticipation of this rise, a bull will purchase these securities at their current lower prices, with the hope of selling them later at higher prices to make a profit. This optimistic approach is often referred to as having a "bullish" outlook towards the market.

Let's contrast this with the other terms mentioned:

• Jobber: Jobber is an old term for a trader who buys and sells securities on their account without dealing directly with the public, primarily for short-term trades.
• Broker: A broker acts as an agent or intermediary between buyers and sellers to facilitate trades, earning a commission for their services rather than buying securities for their profit.
• Bear: A bear, opposite of a bull, is an investor who expects prices to fall and might sell securities at a current high expecting to buy them back at a lower price. This is usually referred to as having a "bearish" outlook.

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The policy designed to accelerate the greater participation of Nigerians in the ownership and management of business enterprises in Nigeria is called Indigenization.

Indigenization refers to efforts and policies implemented to transfer ownership and control of enterprises and resources from foreign and non-national entities to the nationals of a country. The aim is to increase the involvement of local citizens in the economy of their country, ensuring that they have a substantial stake in the economic activities.

In the context of Nigeria, the indigenization policy was meant to empower Nigerians by enabling them to own and manage businesses. This was achieved by legally requiring certain levels of Nigerian ownership and participation in various sectors of the economy. Such policies were put in place to reduce foreign control and ensure that the wealth generated within the country contributed to national development and was accessible to the citizens of Nigeria.

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Warehouses that are generally found near a port are known as bonded warehouses.

Bonded warehouses are storage facilities where imported goods are stored until the customs duties are paid.

Key reasons for their location near a port include:

• Proximity to customs facilities: Being near a port, bonded warehouses have easy access to customs offices, facilitating quicker processing and clearance of goods.
• Efficient transport: Ports serve as major hubs for transportation. Goods arriving by sea can be quickly transferred to a nearby warehouse, minimizing delays and reducing transportation costs.
• Duty deferment: Goods stored in a bonded warehouse do not require immediate payment of import duty. Importers can defer payment until the goods are released for sale or use.

Therefore, locating these warehouses near ports helps streamline international trade processes and enhances logistics efficiency.

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Banks issue cheque books to customers holding current accounts.

Let me explain why:

A current account is designed for regular transactions. It is ideal for individuals or businesses that need frequent access to their funds. This account allows for multiple daily transactions such as deposits, withdrawals, and transfers.

One primary feature of a current account is the ability to issue cheques. A cheque is a written order to a bank to pay a certain amount of money from one’s account to another person or entity.

Unlike a current account, foreign accounts, deposit accounts, and fixed deposit accounts serve different purposes:

• Foreign accounts: Typically used for operations involving foreign currencies.
• Deposit accounts: Generally include savings accounts, where the primary aim is to save money and earn interest, with limited transaction capabilities.
• Fixed deposit accounts: Involve depositing money for a specific period, where the funds are not intended for frequent access or cheque issuance.

Therefore, banks provide cheque books specifically for current accounts to facilitate regular transactions.