JAMB UTME - Commerce - 2022

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The correct answer is "cash and trade debtors." Current assets are resources that a company expects to convert into cash or use up within one year or a normal operating cycle. These assets are important for a company's day-to-day operations and can be easily converted into cash. Examples of current assets include cash, accounts receivable (trade debtors), inventory, and prepaid expenses. Out of the options provided, "cash and trade debtors" are current assets because they can be easily converted into cash within a year or a normal operating cycle. Cash is the most liquid current asset as it can be used to pay for immediate expenses or investments. Trade debtors, also known as accounts receivable, are the amounts owed to the company by its customers for goods or services sold on credit. The company expects to receive payment within a year or normal operating cycle, making it a current asset. On the other hand, trade creditors and trade debtors are both examples of accounts payable and accounts receivable, respectively, which are types of current liabilities and current assets, respectively, in accounting. Therefore, "trade creditors and trade debtors" cannot be considered as examples of current assets.

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A request for goods from another country by an importer would be made using an order. An order is a formal request made by a buyer to a seller for a specific product or service. In the context of international trade, an importer would place an order with a foreign supplier for goods they wish to purchase. The order will typically include details such as the quantity of goods, the delivery date, and the agreed-upon price. This order serves as the basis for the transaction between the importer and the foreign supplier and is a key step in the importing process.

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One of the products of the construction industry is a bag of cement. The construction industry produces a wide range of products and materials that are used in building and construction projects. One of the key products of the construction industry is cement, which is used as a binding agent in concrete and mortar. Cement is an essential component of many construction projects, and is used in the construction of buildings, bridges, roads, and other structures. The production of cement and other construction materials is a major component of the construction industry and plays a critical role in the growth and development of the sector.

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Goods that are brought into a country for sale are the country's visible imports. This is because visible imports refer to physical goods that are brought into a country from another country for consumption or resale. Examples of visible imports include raw materials, finished goods, and capital goods. These imports are visible because they can be physically seen and are recorded in the country's balance of payments, which is a record of all the economic transactions between that country and the rest of the world. In contrast, invisible imports refer to non-physical services that are provided by foreign entities, such as tourism or foreign investment. Similarly, visible exports are physical goods that are produced domestically and sold to foreign countries, while invisible exports are non-physical services that are provided domestically to foreign entities. Therefore, the correct option is visible imports.

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Weaving is not an example of the extractive industry. The extractive industry involves activities that extract natural resources from the earth, such as mining, drilling for oil, gas and water, and quarrying for stone, sand and gravel. The purpose of these activities is to extract raw materials that are then used to produce finished goods. Hunting and fishing can also be considered extractive industries because they involve the extraction of natural resources from the environment. Hunting involves the extraction of wild animals for food, fur, and other products. Fishing involves the extraction of fish and other aquatic resources from the sea, rivers, and lakes. However, weaving is a manufacturing activity that involves the production of textiles by interlacing threads on a loom. It does not involve the extraction of natural resources from the earth, but rather the use of raw materials such as cotton or wool that have already been extracted and processed. Therefore, weaving is not an example of the extractive industry.

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A contract will not be discharged through performance if one or both parties do not fully fulfill their obligations as specified in the agreement. In this case, the contract may still be considered valid and enforceable, and the non-performing party may be held liable for damages or breach of contract. However, if both parties agree to modify the terms of the contract or to release each other from their obligations, the contract may be discharged through agreement. Additionally, a contract may be discharged through acceptance, which occurs when both parties agree to terminate the contract by mutual consent. Finally, a contract may be discharged through breach if one party fails to fulfill their obligations and the other party chooses to terminate the contract as a result.

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One of the functions of a trade association is to promote members' welfare. A trade association is a group of companies in a specific industry who come together to address common issues and goals. One of the main functions of a trade association is to promote the welfare of its members. This can include advocating for favorable laws and regulations, providing networking opportunities, offering educational resources and training, and working to improve the overall reputation of the industry. By working together, members of a trade association can have a greater impact on the industry and improve their own businesses.

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One of the functions of commercial banks that cannot be performed by central banks is the collection of deposits from the public. Commercial banks are financial institutions that accept deposits from individuals and businesses and use those funds to make loans to others. Central banks, on the other hand, are responsible for implementing monetary policy and maintaining financial stability. While central banks do play a role in regulating commercial banks, they do not accept deposits from the public like commercial banks do. Therefore, the collection of deposits from the public is a function that is unique to commercial banks and cannot be performed by central banks.

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A type of insurance policy which is not a contract of indemnity is "life insurance." A contract of indemnity is an insurance policy that compensates the policyholder for a loss or damage that they have suffered. The insurance company agrees to indemnify the policyholder for the actual loss or damage suffered up to the limit of the policy. In contrast, a life insurance policy is not a contract of indemnity because it provides a benefit to the policyholder or their designated beneficiary upon the occurrence of a specific event, such as the death of the policyholder or the end of a specified term. Life insurance is designed to provide financial protection to the policyholder's family or dependents in the event of their death or a specified event, such as a terminal illness. The policyholder pays a premium to the insurance company, and in return, the insurance company pays a predetermined sum of money to the policyholder's beneficiaries upon the occurrence of the specified event. There are different types of life insurance policies, including term life insurance, whole life insurance, and universal life insurance. Each type of policy has its own unique features and benefits. In summary, life insurance is not a contract of indemnity because it provides a benefit to the policyholder or their beneficiaries upon the occurrence of a specific event, such as the death of the policyholder. It is designed to provide financial protection to the policyholder's family or dependents in the event of their death or a specified event.

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The characteristic of a commercial bank that is not correct is "Established to issue bank notes." A commercial bank is a financial institution that is established as a limited liability company, which means that the owners or shareholders are not personally responsible for the bank's debts or losses. It is usually established by individuals or organizations to provide a range of financial services such as accepting deposits, granting loans, and offering various investment products. One of the primary objectives of a commercial bank is to make a profit through the various services it provides. However, commercial banks do not have the authority to issue bank notes. The authority to issue bank notes is given to the central bank of a country, which is responsible for regulating the country's money supply and ensuring the stability of the financial system. Therefore, the correct option is "Established to issue bank notes."

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An undertaking to repair a customer's vehicle for a certain period after it has been sold is called after-sales service. After-sales service refers to the support and assistance provided to customers after they have purchased a product, such as a vehicle. This can include repair and maintenance services, as well as customer support and troubleshooting. The goal of after-sales service is to ensure customer satisfaction and to retain customer loyalty by providing ongoing support and assistance. The other options - marketing mix, market segmentation, and sales promotion - are all related to marketing and sales, but they do not specifically refer to after-sales service. The marketing mix refers to the various elements of a marketing plan, such as product, price, place, and promotion. Market segmentation refers to the process of dividing a market into smaller groups of consumers with similar needs or characteristics. Sales promotion refers to short-term incentives to encourage the purchase of a product or service.

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An article used as a means of exchange in the early days of trade in West Africa was the cowrie. A cowrie is a small, shiny, freshwater snail shell that was widely used as a form of currency in many parts of Africa, Asia, and the Pacific. It was especially popular in West Africa, where it was used for trade and as a means of exchange for goods and services. The cowrie was valued for its rarity and beauty, as well as for its durability, making it an ideal form of currency for long-distance trade. The other options - cedis, dalasi, and naira - are all the names of modern-day currencies used in West Africa, but they were not used as a means of exchange in the early days of trade in the region.

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A group of sellers who pool their resources to buy goods in large quantities and sell to its members is called a "wholesaler cooperative society". A wholesaler cooperative society is a type of organization formed by a group of sellers to purchase goods in large quantities and sell them to their members. Members of a wholesaler cooperative society are usually retailers or other small business owners who need to purchase goods in large quantities to sell in their own businesses. By pooling their resources, members of a wholesaler cooperative society can negotiate better prices and purchase goods that might not be available to them individually. The cooperative then sells the goods to its members at a markup, but still at a lower price than they would pay if they bought the goods individually. In summary, a "wholesaler cooperative society" is a group of sellers who work together to buy goods in bulk and sell them to their members, usually retailers or small business owners, at a lower price than they would be able to obtain individually.

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The marketing concept emphasizes that a business should focus on meeting the needs and wants of its customers while also achieving its own business goals. This means that a business should strive to create products or services that are desired by its target customers and then promote and sell those products in a way that meets the customers' needs and also generates a profit for the business. In other words, the marketing concept is based on the idea that the customer is the most important part of the business, and that the business should be oriented around creating value for the customer in order to build long-term relationships and loyalty. This may involve researching customer needs and preferences, developing innovative products, creating effective marketing campaigns, and providing high-quality customer service and support. By focusing on customer satisfaction, a business can build a strong reputation, increase customer loyalty and repeat business, and ultimately achieve long-term success and profitability. This is in contrast to other approaches that may prioritize sales, production, or promotion, but may not necessarily lead to the same level of customer satisfaction and loyalty.

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An advertisement which is geared towards a particular audience is known as direct advertising. This type of advertising is specifically tailored to appeal to the interests, needs, and desires of a particular target market or demographic. The goal of direct advertising is to create a personalized message that will resonate with the intended audience, and to encourage them to take action, such as making a purchase or visiting a website. Direct advertising can be delivered through a variety of channels, such as email, social media, direct mail, or targeted online ads. By focusing on a specific audience, direct advertising can be more effective in generating leads and driving sales than mass advertising, which aims to reach a broad and diverse audience.

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The activity that improves the appearance of a product and aims to protect it is "packaging." Packaging refers to the process of enclosing a product in a container, wrapper, or other material for the purposes of protection, storage, distribution, and display. Packaging can take many forms, from simple plastic bags to elaborate boxes and displays. One of the primary functions of packaging is to protect the product from damage or contamination during storage and transportation. This can include protection from moisture, dust, and other environmental factors that could damage the product. Additionally, packaging can also protect the product from tampering or theft. Another important function of packaging is to improve the appearance of the product. Packaging can be designed to attract attention, communicate information about the product, and create a favorable impression on the customer. This can include the use of graphics, colors, and other design elements to create a distinctive and appealing visual identity for the product. The other options listed - advertising, grading, and labelling - are all important activities in the marketing and distribution of products, but they do not specifically relate to the physical protection and appearance of the product, which is the main focus of packaging.

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The growth of commerce is not enhanced by low per capita income. Per capita income refers to the average income earned per person in a given area or population. Low per capita income can be a hindrance to the growth of commerce, as it means that people have less disposable income to spend on goods and services. When people have less money to spend, demand for goods and services decreases, which can negatively impact the growth of commerce. On the other hand, factors such as the development of modern forms of production, government participation in business, and high population growth can positively impact the growth of commerce.

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The correct answer is: "cash and trade debtors." Current assets are resources that a company expects to convert into cash or use up within one year or a normal operating cycle. These assets are important for a company's day-to-day operations and can be easily converted into cash. Examples of current assets include cash, accounts receivable (trade debtors), inventory, and prepaid expenses. Out of the options provided, "cash and trade debtors" are current assets because they can be easily converted into cash within a year or a normal operating cycle. Cash is the most liquid current asset as it can be used to pay for immediate expenses or investments. Trade debtors, also known as accounts receivable, are the amounts owed to the company by its customers for goods or services sold on credit. The company expects to receive payment within a year or normal operating cycle, making it a current asset.

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"Production" is not a component of the marketing mix. The marketing mix is a set of controllable tools that a company uses to bring its product or service to market and to reach its target customers. The four components of the marketing mix are product, price, promotion, and place. "Product" refers to the goods or services that a company offers to its customers. "Price" refers to the amount that customers are charged for a product or service. "Promotion" refers to the various ways that a company communicates with its target customers and persuades them to buy its products or services. "Place" refers to the distribution channels and strategies that a company uses to get its products or services to its target customers. In contrast, "production" refers to the process of creating or manufacturing a product, and is not a part of the marketing mix. While production is certainly an important aspect of bringing a product to market, it is not one of the controllable tools that a company can use to influence the success of its marketing efforts.

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The objective of ECOWAS that is not listed among the options is the "promotion of a common language." ECOWAS stands for the Economic Community of West African States, and it is a regional intergovernmental organization of countries in West Africa. The organization was established to promote economic integration and cooperation among its member countries, which currently number 15. The other three options listed - improvement of infrastructural facilities, encouragement of free movement of people, and encouragement of trade among member countries - are all key objectives of ECOWAS. Improving infrastructure such as roads, power supply, and communication networks helps to create a more conducive environment for trade and economic growth. Encouraging free movement of people allows citizens of member states to travel, work, and do business more easily across borders. And promoting trade among member countries helps to increase economic activity, create jobs, and reduce poverty in the region. While promoting a common language could be seen as a useful means of improving communication and cooperation among member countries, it is not listed as an official objective of ECOWAS.

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An association formed by computer distributors to safeguard and promote their interest is a trade association. A trade association is a group of companies in a specific industry who come together to address common issues and goals. Trade associations are formed to promote the interests of their members, which can include advocating for favorable laws and regulations, providing networking opportunities, offering educational resources and training, and working to improve the overall reputation of the industry. In the case of computer distributors, a trade association could be formed to represent their interests and help them grow and succeed in the industry.

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The document issued by a public company allowing it to commence business is called the "Certificate of Incorporation." When a group of people decides to form a company, they must register it with the government. The process of registering a company involves submitting documents to the government, including the company's Memorandum of Association and Articles of Association. These documents outline the company's purpose, structure, and internal regulations. Once the government approves the registration and verifies that all necessary documents have been submitted, it issues a "Certificate of Incorporation" to the company. This certificate officially recognizes the company as a legal entity and grants it the authority to commence business operations. In summary, the "Certificate of Incorporation" is a crucial document that allows a public company to legally operate and conduct business.

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An advantage of rail transport is that it carries bulky and heavy goods. Rail transport is a mode of transportation that uses railroads to move goods and people. It is particularly advantageous for transporting heavy and bulky goods such as raw materials, coal, lumber, and heavy equipment. Rail transport has the capacity to move large volumes of goods over long distances, and it is often more cost-effective than other modes of transport, such as road or air transport. This is because trains can carry more cargo per trip, and the cost of fuel and maintenance is generally lower than other transportation modes. Moreover, rail transport can be a safer and more reliable mode of transportation for heavy and bulky goods. Trains are not affected by traffic congestion and can operate on a fixed schedule, which can reduce delays and improve delivery times. Additionally, rail transport can be integrated with other transportation modes to provide door-to-door delivery services for customers, enhancing its usefulness. While the other options provided in the question are not necessarily incorrect, they do not represent the main advantage of rail transport. Rail transport can require significant maintenance costs, and it can be subject to delays due to weather, mechanical failures, or other factors. Additionally, while rail transport can facilitate door-to-door delivery, it may not be as efficient as other modes of transport for smaller or lighter shipments.

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A person engaged for the purpose of bringing his principal and a third party into a contractual relation is an "agent." An agent is a person who is authorized to act on behalf of another person or entity, known as the principal. The agent's role is to negotiate and enter into contracts with third parties on behalf of the principal, while representing the interests of the principal. In other words, an agent acts as a middleman between the principal and a third party. The agent has a fiduciary duty to act in the best interests of the principal, which means that they must act honestly and with reasonable care and skill. Examples of agents include real estate agents, who act on behalf of property owners to sell or lease their property to interested buyers or tenants. Another example is a travel agent, who acts on behalf of travelers to book flights, hotels, and other travel services. In contrast, an arbiter is a person who is appointed to settle disputes between parties, such as a mediator or an arbitrator. An auctioneer is a person who conducts auctions and facilitates the sale of goods or services to the highest bidder. A middleman is a general term that refers to a person or business that acts as an intermediary between two parties in a transaction.

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An open cheque is a type of cheque that can be cashed over the counter by the payee. This means that the payee can take the cheque to the bank that it is drawn on and receive the funds in cash, without having to deposit the cheque into their own account. Open cheques are also sometimes referred to as bearer cheques because they can be transferred to someone else simply by endorsing the back of the cheque. However, this also means that if an open cheque is lost or stolen, anyone who has possession of it can cash it, which can be a security risk. In contrast, crossed cheques are marked with two parallel lines, which means that they can only be deposited into a bank account, not cashed over the counter. Certified cheques and bank drafts are also types of cheques, but they are issued by a bank and are generally considered to be more secure forms of payment.

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The provision of services is classified under "tertiary production." In economics, production refers to the creation of goods and services. While goods are physical products that we can touch and see, services are intangible products that are offered by businesses to meet the needs of consumers. Tertiary production is also known as the service sector and includes businesses that provide services to consumers and other businesses. This includes services such as healthcare, education, transportation, hospitality, financial services, and consulting. The provision of services, therefore, falls under tertiary production because it involves the delivery of intangible products to customers. Unlike goods, services cannot be stored or transported, and they are produced and consumed at the same time. In contrast, batch production and flow production are terms used to describe the production of goods in a manufacturing context. Batch production involves the production of a specific quantity of a product at one time, while flow production involves continuous production of goods on an assembly line. Secondary production refers to the manufacturing of goods from raw materials, which is typically associated with the primary production sector of the economy.

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A paid presentation about a product with a view to encouraging purchases by an identifiable sponsor is called an "advertisement." An advertisement is a form of marketing communication that is designed to promote a product or service. It is typically a paid message that is communicated through various channels such as television, radio, print media, online media, billboards, and other forms of outdoor advertising. Advertisements are usually created and placed by an identifiable sponsor, such as a company, organization, or government agency. The main goal of an advertisement is to persuade potential customers to buy a product or service. Advertisements are an important part of the marketing mix, as they help to create awareness of products and services and communicate their features and benefits to potential customers. They can also help to build brand recognition and loyalty over time.

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The share value stated on a share certificate is called the nominal value. Nominal value, also known as face value or par value, is the minimum amount at which a company's shares can be issued and is typically stated on the share certificate. The nominal value is a fixed value assigned to the shares when they are first issued and it serves as the legal capital of the company. It is used to calculate the company's share capital and to determine the amount of dividends to be paid to shareholders. The market value of a share, on the other hand, is the current value of the share in the stock market, which can be higher or lower than the nominal value. The market value is determined by the forces of supply and demand, and can change frequently based on a variety of factors such as the company's financial performance, economic conditions, and investor sentiment.

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The law by which a seller transfers the property in goods to a buyer at an agreed price is the "Sale of Goods Act." The Sale of Goods Act is a law that governs the sale of goods in many countries around the world. It sets out the rules for transferring ownership of goods from a seller to a buyer in a commercial transaction. The law applies to both tangible goods, such as cars and furniture, and intangible goods, such as software and intellectual property. Under the Sale of Goods Act, a seller is required to transfer ownership of the goods to the buyer at an agreed price. This means that the buyer has the right to own and possess the goods, and the seller must transfer the goods to the buyer in exchange for payment. The law also sets out rules for the quality and condition of the goods, and provides legal remedies for buyers who receive defective or faulty goods. The other options listed - Weights and Measures Act, Trade Description Act, and Foods and Drugs Act - are laws that relate to different aspects of commercial transactions, such as measurement standards, consumer protection, and food safety. However, they do not specifically address the transfer of ownership of goods from a seller to a buyer, which is the main focus of the Sale of Goods Act.

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A specially-designed mode of transport for conveying liquid and gas is a "tanker". A tanker is a type of ship or vehicle designed to carry large quantities of liquid or gas cargo, such as oil, natural gas, or chemicals. Tankers are designed to safely transport their cargo, which is often hazardous or flammable, over long distances across the sea or land. Tankers are designed with special features to prevent leakage or spillage of their cargo. For example, oil tankers have double hulls to prevent oil spills in the event of an accident or collision. Tankers also have special pumps and pipelines for loading and unloading their cargo. In summary, a "tanker" is a type of specialized transport designed to safely transport large quantities of liquid and gas cargo, such as oil and natural gas, over long distances.

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The quality of money that makes it possible to buy goods in small quantities is divisibility. Divisibility means the ability of money to be divided into smaller units. This is important because it allows people to buy goods that cost less than one unit of money. For example, if a candy bar costs 50 cents and you only have a one dollar bill, you can divide that dollar into smaller units (quarters, in this case) to pay for the candy bar. If money was not divisible, you would have to pay for the candy bar with a one dollar bill, even if you only wanted to buy 50 cents worth of goods.

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The last link in a channel of distribution is the consumer. A channel of distribution refers to the series of intermediaries that a product or service goes through before it reaches the final customer. The last link in this chain is the consumer, who is the end user of the product or service. All the other intermediaries in the channel, such as wholesalers, retailers, and agents, play a role in getting the product to the consumer, but the consumer is the ultimate recipient. The goal of the channel of distribution is to get the product into the hands of the consumer in an efficient and effective manner.

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An agreement that is enforceable in law is called a "contract." A contract is a legally binding agreement between two or more parties. It is created when one party makes an offer, and the other party accepts that offer, which leads to an agreement. The parties to a contract are legally bound to fulfill the terms of the contract, and failure to do so may result in legal action. For a contract to be legally enforceable, it must meet certain requirements. First, there must be an offer made by one party to another. The offer must be clear and unambiguous, and it must be communicated to the other party. Second, there must be an acceptance of the offer by the other party. The acceptance must be clear and unambiguous, and it must be communicated to the party making the offer. Third, there must be consideration, which is something of value that is exchanged between the parties. Consideration can take the form of money, goods, services, or a promise to do something. Finally, the parties must have the legal capacity to enter into the contract. This means that they must be of legal age, sound mind, and not under duress or undue influence. In summary, a contract is an agreement that is enforceable in law. It is created when one party makes an offer, the other party accepts that offer, there is consideration, and the parties have the legal capacity to enter into the contract.

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When a share with a nominal value of #50 is quoted at #70, it is being sold at a premium. A share is quoted at a premium when its market price is higher than its nominal or face value. In the case of a share with a nominal value of #50 that is quoted at #70, the share is being sold for a higher price than its face value, meaning that it is being sold at a premium. This can indicate that the company is performing well, and that investors are willing to pay a higher price for the share due to its perceived future potential. On the other hand, a share that is quoted below its nominal value is said to be sold at a discount.

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The answer is group insurance. Group insurance is a type of insurance policy where a company insures the lives of all its employees collectively. In a group insurance policy, the company pays the premiums and the coverage applies to all eligible employees. This type of insurance provides a cost-effective way for companies to offer life insurance protection to their employees and can be a valuable employee benefit. Group insurance policies can be customized to meet the specific needs of the company and its employees, making it a flexible and convenient option for companies looking to offer life insurance benefits.