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Question 1 Report
The amalgamation of firms engaged in cotton processing and the manufacturing of textiles is
Answer Details
The amalgamation of firms engaged in cotton processing and the manufacturing of textiles is an example of vertical integration. Vertical integration occurs when a company expands its operations by integrating with companies involved in different stages of the supply chain for a particular product. In this case, the cotton processing firm and the textile manufacturing firm are both involved in the production of textiles, but they operate in different stages of the supply chain. By integrating vertically, the cotton processing firm and the textile manufacturing firm can work together to increase efficiency, reduce costs, and improve the quality of their products. The cotton processing firm can supply high-quality cotton to the textile manufacturing firm, which can then use it to produce high-quality textiles. In addition, vertical integration allows the firms to have greater control over the entire production process, from raw materials to finished products, which can help them to respond more quickly to changes in the market and to customer demand. In summary, the amalgamation of firms engaged in cotton processing and the manufacturing of textiles is an example of vertical integration, which is when a company expands its operations by integrating with companies involved in different stages of the supply chain for a particular product. This can help to increase efficiency, reduce costs, and improve the quality of products, as well as give the firms greater control over the production process.
Question 2 Report
A very effective way of resisting the producer's exploitation is to
Question 3 Report
The insurance policy which covers damages to the body of a ship is
Answer Details
The insurance policy that covers damages to the body of a ship is called "hull insurance". It is a type of marine insurance that covers the physical damage to the ship's hull and machinery, as well as any attached equipment. This insurance policy provides coverage against perils such as collision, fire, explosion, and piracy. The hull insurance is usually taken out by ship owners to protect their vessels against these perils and ensure that they are compensated for any damages that may occur during the course of their operations.
Question 4 Report
An increase in the volume of sales is also an increase in
Answer Details
An increase in the volume of sales is an increase in turnover. Turnover is the total amount of money a business generates from selling its goods or services over a specific period. When a business sells more goods or services, its turnover increases. This means that the business has generated more revenue, but it does not necessarily mean that the business has made a profit. Profit is the difference between the revenue generated from sales and the costs incurred to produce or provide those goods or services.
Question 5 Report
Which of the following proves that important documents have reached their destination?
Question 6 Report
A business becomes a separate legal entity after it has
Answer Details
When a business is incorporated, it becomes a separate legal entity, meaning it is treated as a separate entity apart from its owners. This means that the business can enter into contracts, sue or be sued, own property, and conduct other legal activities in its own name. The incorporation process involves registering the business with the appropriate government authority, which creates a new legal entity separate from the owners of the business. Therefore, the correct option is "been incorporated".
Question 8 Report
Any activity that changes raw materials into consumer or industrial goods is
Answer Details
Manufacturing is any activity that changes raw materials into consumer or industrial goods. This involves using raw materials, machines, and labor to create finished products that can be sold to consumers or other businesses. Examples of manufacturing activities include producing cars, electronics, clothing, and food products.
Question 10 Report
In which of the following business units are profits shared on the basis of membership patronage?
Answer Details
Profits shared on the basis of membership patronage in a co-operative society. A co-operative society is a type of business unit owned and operated by its members, who share profits based on their level of patronage. The members have a say in the decision-making process and receive dividends based on the amount of business they do with the co-operative. The purpose of a co-operative society is to provide goods and services to members at affordable prices and to promote their economic interests.
Question 11 Report
When consumers are unaware of the quality of a product, the best advertising technique to use is
Answer Details
Question 12 Report
Which of the following is a duty of the Employers Association?
Answer Details
The duty of the Employers Association is: - establishing a uniform wage scale Employers Associations are organizations formed by employers to protect and promote their interests. One of the duties of such an association is to negotiate with employees' unions on various issues, including wages. In this regard, the association seeks to establish a uniform wage scale that would apply to all employers in a particular industry or geographic location. This helps to avoid wage disparities and promotes a level playing field for businesses.
Question 13 Report
The primary objective of insurance is to
Question 15 Report
The working capital of a firm is calculated as
Answer Details
Working capital refers to the amount of money that a company has available to fund its daily operations. It is calculated by subtracting a company's current liabilities from its current assets. Current assets include items such as cash, inventory, and accounts receivable, while current liabilities include accounts payable, taxes owed, and other short-term debts that are due within a year. The formula for working capital is as follows: Working Capital = Current Assets - Current Liabilities Therefore, the correct option is (a) current assets minus current liabilities.
Question 16 Report
The mode of transport that conveys goods at low cost per unit is
Answer Details
Rail transport is the mode of transport that conveys goods at a low cost per unit. This is because railways can carry a large quantity of goods over long distances at a relatively low cost. Rail transport is also energy-efficient compared to other modes of transport, making it an economical and environmentally-friendly option. Additionally, rail transport is reliable and can handle large volumes of goods, which makes it a preferred choice for businesses that require efficient and cost-effective transportation of goods.
Question 17 Report
Which of the following distinguishes supermarkets from other retail outlets
Answer Details
Question 18 Report
The choice of medium used in advertising is not determined by the
Answer Details
The choice of medium used in advertising is not determined by the nationality of people using the medium. The choice of advertising medium is typically determined by factors such as the cost of using a particular medium, the age group to which the medium appeals, and the number of people reached by the medium. Advertisers seek to reach their target audience in the most efficient and cost-effective way possible, and may use a variety of media such as television, radio, newspapers, magazines, billboards, and digital platforms to achieve this goal. The nationality of the people using the medium is not a relevant factor in this decision-making process, as advertisers are typically more concerned with demographic factors such as age, gender, income, and location.
Question 19 Report
The most acceptable means of payment in foreign transaction is
Answer Details
The most acceptable means of payment in foreign transactions is irrevocable letters of credit. This is because when buying or selling goods internationally, there are risks involved for both parties, such as non-delivery, non-payment, or fraud. Therefore, a letter of credit is a secure payment method that involves a bank acting as an intermediary between the buyer and seller. The buyer's bank issues a letter of credit to the seller's bank, guaranteeing payment if the terms and conditions of the sale are met. This way, the seller has the assurance of payment and the buyer has the assurance of receiving the goods they paid for. Other payment methods, such as personal cheques or bank drafts, may not be accepted due to their higher risk of fraud or non-payment. Central bank cheques may also not be accepted as they are specific to one country and may not be recognized or accepted internationally.
Question 21 Report
Which of the following is regarded as a document of title in foreign trade?
Answer Details
Question 23 Report
The Money Market is the
Answer Details
The Money Market is the market for short-term loans. It is a financial market where short-term borrowing and lending of funds take place, typically for a period of up to one year. The money market is also characterized by the buying and selling of highly liquid and low-risk financial instruments such as treasury bills, commercial papers, certificates of deposit, and other short-term securities. The money market is important because it provides a source of short-term funding for businesses, banks, and governments to finance their day-to-day operations and investments.
Question 24 Report
The amount of insurance premium to be paid depends on the
Question 26 Report
Musa entered into a contract to supply two cows to Aro. Before the agreed date of supply and without the knowledge of the two parties, thieves stole the cows. This is an example of termination of contract by
Answer Details
Question 27 Report
The main advantage of sea transport over air transport is
Answer Details
The main advantage of sea transport over air transport is its capacity. Sea transport allows for the transportation of large quantities of goods and materials, including heavy and bulky items that may not be feasible to transport by air. Cargo ships have the ability to carry thousands of containers and other goods, making sea transport a cost-effective option for businesses that require large-scale transportation. In contrast, air transport has limited capacity due to the size and weight restrictions of aircraft. Airplanes can only carry a limited amount of cargo, which makes it less suitable for transporting large quantities of goods. Furthermore, sea transport is generally more affordable than air transport, making it a more accessible option for many businesses. While air transport may be faster, it is often more expensive, and businesses may need to weigh the benefits of speed against the higher costs. In summary, the main advantage of sea transport over air transport is its capacity to transport large quantities of goods and materials, making it a cost-effective option for businesses that require large-scale transportation.
Question 28 Report
Which of the following interest holders are settled first in case of a company's liquidation
Answer Details
Question 29 Report
C % F as a price quotation in foreign trade means that the buyer
Answer Details
The term C % F as a price quotation in foreign trade means that the buyer is responsible for paying for cost and freight. Cost refers to the cost of the goods, while freight refers to the cost of transporting the goods from the seller's location to the buyer's location. The seller is responsible for arranging and paying for the transportation of the goods to the port of shipment, while the buyer is responsible for arranging and paying for the transportation of the goods from the port of arrival to the final destination. Therefore, C % F indicates that the seller is responsible for the cost of the goods and the cost of transporting them to the port of shipment, while the buyer is responsible for the cost of transporting the goods from the port of arrival to the final destination. The buyer is not responsible for clearing and forwarding the goods or paying for insurance in this case.
Question 31 Report
Terms of trade refers to
Answer Details
Terms of trade refer to the relationship between the prices of a country's exports and imports. Specifically, it is the ratio of the price index of a country's exports to the price index of its imports. When a country's terms of trade are favorable, it means that the prices of its exports are higher than the prices of its imports, allowing it to buy more imports for a given amount of exports. Conversely, when a country's terms of trade are unfavorable, it means that the prices of its imports are higher than the prices of its exports, making it more difficult to buy the same amount of imports with a given amount of exports. Therefore, a country with favorable terms of trade will be able to improve its standard of living and economic growth, while a country with unfavorable terms of trade may face challenges in sustaining its economic development.
Question 32 Report
The aid to trade responsible for the preservation of perishable items is
Answer Details
The aid to trade responsible for the preservation of perishable items is warehousing. Warehousing involves the storage of goods and materials for a specific period until they are needed. It provides a safe and secure environment for goods to be stored, protecting them from damage and theft. Perishable items, such as fruits, vegetables, and other food products, require specific storage conditions to maintain their freshness and quality. Warehousing facilities equipped with refrigeration and other temperature control systems can help to preserve perishable items by maintaining the appropriate storage conditions. In addition to preserving perishable items, warehousing also helps to facilitate trade by providing a central location for the storage and distribution of goods. This allows businesses to store large quantities of goods and materials, reducing the need for frequent transportation and making it easier to meet customer demand. In summary, warehousing is the aid to trade responsible for the preservation of perishable items. It provides a safe and secure environment for the storage of goods and materials, including perishable items, and helps to facilitate trade by providing a central location for the storage and distribution of goods.
Question 33 Report
Which of the following abbreviations permits the seller to correct any error in an invoice?
Answer Details
Question 34 Report
The main aim of credit and thrift societies is to
Answer Details
The main aim of credit and thrift societies is to encourage savings among members. These societies are formed to help individuals save their money and access affordable loans. Members of these societies pool their resources together and save their money with the aim of earning interest on their savings. The society then offers loans to its members at a low interest rate. By encouraging savings, credit and thrift societies help their members to achieve their financial goals and improve their financial security.
Question 36 Report
Which of the following is not a function of the Ports Authority
Question 38 Report
Which of the following is the main task of the Marketing Manager whose company has adopted the marketing concept? To
Answer Details
Question 39 Report
Any activity aimed at creating more markets for a product is
Question 40 Report
One of the objectives of ECOWAS is to
Answer Details
ECOWAS (Economic Community of West African States) is a regional economic union made up of West African countries. One of the main objectives of ECOWAS is to promote trade within the region. This means that member countries are encouraged to trade with each other in order to increase economic growth and development in the region. This objective is achieved through the removal of trade barriers, the establishment of a common market, and the implementation of policies that encourage the free movement of goods, services, and people within the region. By promoting trade within the region, ECOWAS aims to reduce reliance on external trade partners and enhance economic cooperation among member countries.
Question 41 Report
Which of the following sources of capital to a business requires mortgaging specific asset
Answer Details
Question 42 Report
Which of the following is an objective of indigenization policy? To
Answer Details
Question 44 Report
Risks in business are borne by the
Answer Details
Risks in business are borne by the entrepreneur. An entrepreneur is someone who starts and operates a business venture in order to make a profit. In the process of running a business, entrepreneurs face various risks such as financial risks, operational risks, legal risks, and reputational risks. These risks may arise from factors such as changes in market demand, supply chain disruptions, changes in regulations, natural disasters, or unexpected economic events. Entrepreneurs must take on these risks and make decisions that minimize the likelihood of failure and maximize the chances of success. Therefore, entrepreneurs must be willing to take risks in order to achieve their business objectives.
Question 45 Report
Which of the following services is rendered by Central Bank?
Answer Details
The service rendered by the Central Bank among the options provided is "issuing currency notes." A Central Bank is responsible for issuing and regulating the circulation of currency notes and coins in a country's economy. It also controls the supply of money and credit to ensure stable economic growth and prevent inflation. The Central Bank is the only authority that has the power to print and issue currency notes, which are legal tender for making transactions in the economy.
Question 46 Report
The West African Clearing House(WACH)was established to
Answer Details
The West African Clearing House (WACH) was established to promote the use of currencies of all members for inter regional trade. It serves as a platform for member countries to exchange their currencies and settle payments for cross-border transactions. This helps to eliminate the need for foreign exchange transactions, reducing the associated costs and risks. WACH facilitates the growth of trade and economic integration among its member countries.
Question 47 Report
Which of the following gives businessmen the opportunity to buy shares of public limited companies?
Answer Details
The stock exchange gives businessmen the opportunity to buy shares of public limited companies. A stock exchange is a platform where stocks, bonds, and other securities are traded between buyers and sellers. Public limited companies issue shares that are listed on the stock exchange. By buying shares in these companies, businessmen become part owners and can benefit from any increase in the value of the shares or from receiving dividends, which are a portion of the company's profits distributed to shareholders.
Question 48 Report
Which of the following makes sales possible without a sales attendant ?
Answer Details
A vending machine makes sales possible without a sales attendant. Vending machines are automated machines that dispense items such as snacks, beverages, cigarettes, and even tickets without the need for a sales attendant. Customers can use cash or a credit/debit card to purchase items from the vending machine, which then dispenses the product. The other options listed, such as telex machine, fax machine, and franking machine, are not used for sales transactions but for communication or postage purposes.
Question 49 Report
Which of the following central bank functions inspires confidence in the banking system in case of emergency?
Answer Details
The function of the central bank that inspires confidence in the banking system in case of emergency is the "lender of last resort." This means that the central bank serves as a source of funds for banks and financial institutions that are experiencing financial difficulties and are unable to obtain funds from other sources. By providing this function, the central bank helps to prevent bank failures and the potential collapse of the banking system, which could have serious economic consequences.
Question 50 Report
Which of the following is not an obstacle to the achievement of the objectives of ECOWAS
Answer Details
Question 51 Report
Abuse and monopoly of power by industrialists could lead to
Answer Details
Abuse and monopoly of power by industrialists could lead to the need for nationalization. Nationalization refers to the process of transferring ownership and control of industries from private individuals or entities to the state. This can occur when industrialists abuse their power and engage in anti-competitive behavior, which can harm consumers, employees, and the economy as a whole. When industries are nationalized, the government takes control of the industry and may restructure it in a way that benefits society as a whole. For example, the government may invest in the industry to improve efficiency, provide better working conditions for employees, and ensure that goods and services are produced at a fair price for consumers. Nationalization can also occur for political reasons, such as to promote self-sufficiency or to reduce the influence of foreign companies. However, it is generally seen as a last resort, as it can lead to a lack of innovation, decreased competition, and inefficiencies due to government bureaucracy. Therefore, abuse and monopoly of power by industrialists could lead to the need for nationalization, which involves the transfer of ownership and control of industries from private individuals or entities to the state.
Question 52 Report
The divisions of production are
Answer Details
The correct answer is: industry, commerce, and services. Explanation: The divisions of production refer to the three broad sectors of the economy that are involved in the production of goods and services. These sectors are industry, commerce, and services. Industry is concerned with the production of goods, including manufacturing and construction. Commerce is concerned with the distribution of goods, including wholesale and retail trade. Services are concerned with the provision of intangible goods such as healthcare, education, and transportation. Understanding these divisions is important for analyzing the economy and identifying opportunities for growth and development.
Question 53 Report
Activities aimed at boosting the image of an organization are regarded as
Answer Details
Question 54 Report
(a) What is a Capital Market?
(b) State eight reasons why a bank may dishonour a cheque.
(a) What is a Capital Market?
A capital market is the market where long-term funds are borrowed and lent, that is, where medium and long-term securities such as shares, stocks, debentures and government bonds are bought and sold. It is made up of institutions like the stock exchange, development banks, insurance companies and issuing houses that channel long-term savings into investment.
(b) Eight reasons why a bank may dishonour a cheque
Answer Details
(a) What is a Capital Market?
A capital market is the market where long-term funds are borrowed and lent, that is, where medium and long-term securities such as shares, stocks, debentures and government bonds are bought and sold. It is made up of institutions like the stock exchange, development banks, insurance companies and issuing houses that channel long-term savings into investment.
(b) Eight reasons why a bank may dishonour a cheque
Question 55 Report
List and describe five ways by which the post office aids business.
Five ways by which the post office aids business
Answer Details
Five ways by which the post office aids business
Question 56 Report
State two advantages of using each of the following media of advertising:
(a)Newspaper
(b) Radio
(c) Television
(d )Posters
(e) Direct mail.
Two advantages of each advertising medium:
(a) Newspaper
(b) Radio
(c) Television
(d) Posters
(e) Direct mail
Answer Details
Two advantages of each advertising medium:
(a) Newspaper
(b) Radio
(c) Television
(d) Posters
(e) Direct mail
Question 57 Report
(a) What is the difference between Privatization and Nationalization?
(b) Explain four reasons why a country may choose to privatize state-owned enterprises.
(a) Difference between Privatization and Nationalization
Privatization is the transfer of ownership and control of a business or enterprise from the government (public sector) to private individuals or organisations. Nationalization is the opposite: the transfer of ownership and control of a private business or enterprise to the government or state.
In short, privatization moves an enterprise from public to private hands, while nationalization moves it from private to public (government) hands.
(b) Four reasons why a country may privatize state-owned enterprises
Answer Details
(a) Difference between Privatization and Nationalization
Privatization is the transfer of ownership and control of a business or enterprise from the government (public sector) to private individuals or organisations. Nationalization is the opposite: the transfer of ownership and control of a private business or enterprise to the government or state.
In short, privatization moves an enterprise from public to private hands, while nationalization moves it from private to public (government) hands.
(b) Four reasons why a country may privatize state-owned enterprises
Question 58 Report
(a) Adama and Awa have teamed up to form a partnership business. Explain five benefits they are likely to derive
(b) State five provisions in the Partnership Deed.
(a) Five benefits Adama and Awa are likely to derive from a partnership
(b) Five provisions in the Partnership Deed
Answer Details
(a) Five benefits Adama and Awa are likely to derive from a partnership
(b) Five provisions in the Partnership Deed
Question 59 Report
(a)Distinguish between Authorized Capital and Called-up Capital
(b) Use the following information to answer the questions that follow: XYZ Limited is a trading company. The following transactions took place in the month of February:
Purchase of goods -
32 suitcases at N3,500 each
42 shirts at N800 each.
Additional information:
(i) The cost of transporting goods to the firm's premises was #2,500
(ii) Two workers of the firm were paid wages and salaries of 4,500 each.
(iii) Total sales revenue was N180,000. You are required to calculate the: (a) gross profit (b) net profit.
(a) Authorized Capital vs Called-up Capital
Authorized capital (also called nominal or registered capital) is the maximum amount of share capital that a company is allowed to raise, as stated in its Memorandum of Association. Called-up capital is that part of the issued capital which the company has actually demanded (called up) from shareholders to be paid. Authorized capital sets the legal ceiling, while called-up capital is the amount shareholders are presently required to pay.
(b) Calculations
Cost of purchases:
Add carriage inwards (transport to premises) = N2,500
Cost of goods sold = 145,600 + 2,500 = N148,100
(a) Gross profit
Gross profit = Sales - Cost of goods sold = 180,000 - 148,100 = N31,900
(b) Net profit
Wages and salaries = 2 workers × N4,500 = N9,000
Net profit = Gross profit - Expenses = 31,900 - 9,000 = N22,900
Answer Details
(a) Authorized Capital vs Called-up Capital
Authorized capital (also called nominal or registered capital) is the maximum amount of share capital that a company is allowed to raise, as stated in its Memorandum of Association. Called-up capital is that part of the issued capital which the company has actually demanded (called up) from shareholders to be paid. Authorized capital sets the legal ceiling, while called-up capital is the amount shareholders are presently required to pay.
(b) Calculations
Cost of purchases:
Add carriage inwards (transport to premises) = N2,500
Cost of goods sold = 145,600 + 2,500 = N148,100
(a) Gross profit
Gross profit = Sales - Cost of goods sold = 180,000 - 148,100 = N31,900
(b) Net profit
Wages and salaries = 2 workers × N4,500 = N9,000
Net profit = Gross profit - Expenses = 31,900 - 9,000 = N22,900
Question 60 Report
(a) Give five reasons why consumers need protection.
(b) Explain five means by which consumers can be protected
(a) Five reasons why consumers need protection
(b) Five means by which consumers can be protected
Answer Details
(a) Five reasons why consumers need protection
(b) Five means by which consumers can be protected
Question 61 Report
List and explain five problems associated with international trade.
Five problems associated with international trade
Answer Details
Five problems associated with international trade
Question 62 Report
State five effects of hire purchase on each of the following
(a) buyer; (b) seller
(a) Five effects of hire purchase on the buyer
(b) Five effects of hire purchase on the seller
Answer Details
(a) Five effects of hire purchase on the buyer
(b) Five effects of hire purchase on the seller
Question 63 Report
Explain the following
(a) Prospectus
(b) Share certificate
(c) Underwriting of shares
(d) Ordinary shares
(e)Dividend warrants.
Explanation of terms:
Answer Details
Explanation of terms:
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