JAMB UTME - Commerce - 2022

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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 discount deducted from the invoice price of goods to enable the retailer to make a profit is called a "trade discount." Trade discounts are given to retailers or wholesalers to encourage them to buy large quantities of goods at a lower price. The discount is usually a percentage of the list price, which is the price that the manufacturer sets for the goods. The retailer or wholesaler can then sell the goods at a higher price to their customers, and the difference between the list price and the discounted price is their profit margin. Trade discounts are different from cash discounts, which are offered to customers who pay for their purchases in cash or within a certain period of time. Trade discounts are also different from seasonal discounts, which are offered to customers during certain times of the year, and functional discounts, which are offered for various reasons such as early payment or volume purchases. In summary, a trade discount is a discount given to retailers or wholesalers to encourage them to buy large quantities of goods at a lower price, enabling them to sell the goods at a higher price and make a profit.

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The marketing term which regards the consumer as king that must be satisfied is the "marketing concept." The marketing concept is a philosophy that emphasizes the importance of understanding and meeting the needs and wants of customers, with the goal of maximizing profits and achieving long-term success. It is based on the idea that by putting the customer first and providing them with products and services that meet their needs, a business will naturally attract and retain a large and loyal customer base. In essence, the marketing concept treats the consumer as king, recognizing that they are at the center of all marketing efforts and decisions.

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The difference between a country's imports and exports of goods in a particular year is known as the "balance of trade." It represents the net value of a country's international trade in goods, which includes tangible products like cars, machinery, and food. If a country exports more than it imports, it has a positive balance of trade, also known as a trade surplus. On the other hand, if a country imports more than it exports, it has a negative balance of trade, also known as a trade deficit. It's important to note that the balance of trade is just one part of a country's overall balance of payments, which includes not just goods but also services, capital, and other financial transactions. The balance of payments is a more comprehensive measure of a country's international economic activity and can give a more accurate picture of its overall economic health.

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Working capital = Current assets - Current liabilities
= (debtors + cash in hand + closing stock ) - ( overdraft + creditors)
= (10,000 + 5,000 + 10,000 ) - (8,000 + 12,000)
= 25,000 - 20,000
= 5,000

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The safe keeping of goods produced until they are needed is called warehousing. Warehousing involves the storage of goods and materials in a secure and controlled environment, typically a warehouse or distribution center, until they are ready to be sold, distributed, or used in production. The purpose of warehousing is to provide a safe and secure location for goods and materials, as well as to manage inventory levels and ensure that the right products are available when they are needed. Warehouses may also provide additional services, such as packaging, labeling, and assembly, to prepare products for distribution. Overall, warehousing is an important component of the supply chain and plays a critical role in ensuring that goods are available to meet customer demand.

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A retail store that sells only one product from a particular manufacturer is called a tied shop. This means that the store has an exclusive agreement with the manufacturer to sell only that specific product. Tied shops are commonly found in industries such as electronics, where manufacturers may have flagship products that they want to showcase in dedicated stores. By having a tied shop, the manufacturer can have more control over the presentation of the product and ensure that customers have a consistent experience. Customers who are interested in purchasing that particular product can visit the tied shop with the assurance that they will find the product they are looking for. Therefore, the correct option is tied shop.

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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 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. 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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The resources put together to create goods and services are called "factors of production." Factors of production refer to the various inputs that are used in the production process to create goods and services. The main factors of production are land, labor, capital, and entrepreneurship. Land refers to all the natural resources used in the production process, such as water, minerals, and land itself. Labor refers to the human effort and skills that are used in the production process. Capital refers to the physical assets, such as buildings, machinery, and equipment, that are used in the production process. Entrepreneurship refers to the management and organization of the other factors of production. Together, these factors of production are used to create goods and services. Without the factors of production, it would not be possible to create the products and services that we rely on in our daily lives.

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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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Public enterprises are the organizations that provide essential goods and services at low cost to citizens. These are government-owned and operated entities that are established to serve the public interest and meet the needs of the community. Public enterprises are typically created to provide goods and services that are considered essential to the public, such as electricity, water, transportation, healthcare, and education. By providing these goods and services at a lower cost, public enterprises can help to ensure that all citizens have access to the resources they need to live and thrive. Thrift societies, cooperative societies, and private companies may also provide essential goods and services, but they are not typically required to do so at a low cost to citizens, as they are not necessarily established to serve the public interest.

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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.

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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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The service of a retailer is part of production because it "enables finished goods to reach consumers." Retailers are businesses that sell finished goods directly to consumers, usually in small quantities. They purchase goods from manufacturers or wholesalers and then sell them in their stores or online. The service of a retailer is important because it provides a way for finished goods to reach the end consumer, which is the ultimate goal of production. Without retailers, manufacturers would not be able to sell their finished goods directly to consumers, and consumers would have limited access to the goods they need and want. Retailers serve as a crucial link between producers and consumers, by making finished goods available to consumers in convenient locations. Therefore, the service of a retailer is an integral part of the production process because it enables manufacturers to sell their finished goods and allows consumers to access and purchase those goods. While retailers may not directly create the finished goods, they play a vital role in bringing them to market and making them available to consumers. In contrast, a commercial occupation refers to any occupation or business activity that is engaged in for the purpose of making a profit. While retailing is a commercial occupation, it is also an important part of the production process because it enables finished goods to reach consumers.

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The payment made to a carrier for the transportation of goods is called "freight." Freight is the amount of money that is paid by a shipper or consignee to a carrier, such as a trucking company or shipping line, for the transportation of goods from one place to another. Freight charges are typically based on the weight, volume, and distance of the shipment, as well as any additional services or requirements that may be necessary. Freight charges can be calculated in a variety of ways, depending on the mode of transportation and the specific terms of the contract between the shipper and the carrier. For example, freight charges for trucking companies may be based on the weight of the shipment, while freight charges for ocean shipping may be based on the volume of the shipment or the number of shipping containers. Freight charges can also include additional fees and charges for services such as packaging, loading and unloading, customs clearance, and insurance. These charges are typically negotiated and agreed upon between the shipper and the carrier before the shipment is made. In summary, the payment made to a carrier for the transportation of goods is called "freight." Freight charges are based on the weight, volume, and distance of the shipment, as well as any additional services or requirements that may be necessary. Freight charges can also include additional fees and charges for services such as packaging, loading and unloading, customs clearance, and insurance.

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The answer is personal selling. Personal selling refers to a face-to-face interaction between a seller and a buyer for the purpose of making a sale. In personal selling, the seller has the opportunity to build a relationship with the buyer, understand their needs and wants, and tailor their sales pitch to meet those needs. This type of selling is often used for high-value or complex products, where a more personal touch is needed to close the sale.

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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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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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One advantage of small scale retail outlets is personal attention to customers. Small scale retail outlets are businesses that are typically locally-owned and operated, and have a smaller physical footprint than larger retailers. Because small scale retail outlets are often run by the owner or a small staff, they are able to provide more personal attention to their customers. This can include offering customized recommendations, remembering customers' preferences and purchase history, and providing a more personalized shopping experience. Personal attention can also lead to stronger relationships between the retailer and the customer, which can result in increased loyalty and repeat business. This is an advantage that larger retailers, who may have more impersonal shopping experiences, may not be able to offer.

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The objective of the Niger Basin Commission is to regulate and promote the sustainable development of the Niger River and its basin. This includes managing and protecting the natural resources within the basin, such as water, soil, and biodiversity, and promoting economic and social development in the region through projects and initiatives that are environmentally friendly and socially equitable. The Commission also aims to facilitate cooperation and coordination among the countries that share the Niger River and its basin, with the goal of ensuring peaceful and sustainable use of the resources within the basin for the benefit of all. Therefore, the correct option is regulating the sustainable use of natural resources and promoting economic and social development in the Niger River Basin.

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Cowries are a form of money which were not used in the early days of trade. Cowries are the shells of sea snails and were used as a medium of exchange in some societies in Africa and Asia in the past. However, in the early days of trade, when people first started exchanging goods and services, cowries were not commonly used. Instead, other forms of currency, such as barter or the exchange of goods for goods, were used. Later on, other forms of money such as metal bars, coins and paper money were developed and used in various parts of the world.

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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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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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Among the options given, the term that refers to the part of the share capital that the company has asked its shareholders to pay for is "called-up capital." When a company wants to raise funds, it can issue shares to investors in exchange for money. The share capital represents the total amount of money that the company can raise from issuing shares. However, the company may not require all of that money upfront. It may ask its shareholders to pay for the shares they have subscribed to in installments, as and when the company needs the funds. The amount of money that the company has called upon its shareholders to pay is called the called-up capital. For example, if a company has issued 1,000 shares of $10 each, its share capital would be $10,000. However, if the company has only asked its shareholders to pay for 500 shares, then the called-up capital would be $5,000. The remaining $5,000 is the uncalled capital, which the company can ask for at a later date. So, to summarise, the called-up capital is the portion of the share capital that the company has asked its shareholders to pay for, while the uncalled capital is the amount that the company may ask for at a later date.

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A shareholder would inspect the "Articles of Association" to know his/her voting rights. The articles of association are a legal document that outlines the rules and regulations that govern the internal management of a company. This document specifies the voting rights of each class of shareholders, the procedures for holding meetings, and the voting procedures for each meeting. Therefore, if a shareholder wants to know his/her voting rights, they should refer to the articles of association of the company in which they hold shares.

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A country's visible balance of payment is made up of earnings from goods exported. The visible balance of payment is the part of a country's balance of payments that records all of the transactions involving tangible goods, such as exports and imports of goods. It is called the "visible" balance of payment because these transactions are visible and can be easily measured. The earnings from goods exported refer to the money earned by a country from the sale of goods to other countries. This includes both raw materials and finished goods, and can include agricultural products, manufactured goods, and natural resources. The visible balance of payment is an important measure of a country's economic health, as it provides information about a country's competitiveness in global markets and its ability to generate income from its exports.

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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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The group that would advocate for the supply of constant electricity to households is the "Consumer's association". A consumer's association is an organization that represents the interests of consumers in a particular market or industry. The main objective of a consumer's association is to ensure that the goods and services provided by the industry meet the needs and expectations of consumers. In the case of the supply of constant electricity to households, a consumer's association would advocate for the needs of households and their requirements for electricity. The association would seek to ensure that electricity suppliers provide a consistent and reliable supply of electricity to households, with minimal disruptions or outages. The advocacy efforts of a consumer's association may include lobbying for government policies that support the provision of constant electricity to households, working with electricity suppliers to improve their services, and educating consumers about their rights and responsibilities in relation to electricity supply. In summary, a "Consumer's association" is the group that would advocate for the supply of constant electricity to households, with the objective of ensuring that electricity suppliers provide a consistent and reliable supply of electricity to households.

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The bank that acts as the lender of last resort is the central bank. The central bank is the authority responsible for overseeing the monetary system of a country. One of its important functions is to act as a lender of last resort, which means it provides loans to other banks or financial institutions that are experiencing financial difficulties and cannot obtain funding from other sources. The central bank provides this emergency lending to prevent a crisis in the banking system that could lead to a broader economic downturn. By providing loans to troubled banks, the central bank helps maintain confidence in the financial system and ensures that banks can continue to provide services to their customers. Commercial banks, merchant banks, and mortgage banks are not typically authorized to act as lenders of last resort. Instead, they rely on access to funding from the central bank and other sources to meet their liquidity needs.

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The principle which prevents an insured from receiving a claim that is more than the value of the loss, if the property is insured by more than one company is called contribution. Contribution refers to the principle in insurance law that requires insurers to share the cost of a loss when multiple insurance policies cover the same property. The idea is that an insured should not be able to profit from insuring the same property with multiple companies. The principle of contribution ensures that the total amount received from multiple insurance policies does not exceed the value of the loss. The other options - indemnity, proximate cause, and uberrimae fidei - are also related to insurance law, but they do not specifically refer to the principle of contribution. Indemnity refers to the principle that an insurance policy should restore the insured to the same financial position they were in prior to the loss. Proximate cause refers to the cause of a loss that is considered the most significant or primary cause, and is therefore covered by insurance. Uberrimae fidei is the legal principle that requires an insurance policy to be based on utmost good faith, meaning that the insured must disclose all material facts to the insurer when applying for insurance.

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A partner who only contributes their name to the formation of a partnership is known as a nominal partner or a sleeping partner. They don't actively participate in the management or operations of the partnership, but they are still considered a full partner and have equal ownership in the business. This means they share in the profits and losses of the partnership and are liable for its debts. However, because they don't have an active role, they also don't have much control over the day-to-day decision making of the business.

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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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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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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.