JAMB UTME - Commerce - 1995

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Consumer sovereignty means that the consumer is always right. This implies that the consumer has the power to determine what goods and services are produced by the producers. Consumers have the right to choose the products they want to buy and the price they are willing to pay for them. As a result, producers are forced to produce goods and services that meet the needs and wants of the consumers in order to remain in business. The concept of consumer sovereignty is based on the principle of demand and supply, where the consumers' demand for goods and services determines what is produced and supplied in the market.

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The insurance policy which provides full cover against all risks at sea is known as Marine Voyage Policy Insurance. This type of insurance policy covers a wide range of risks and perils that may occur during a sea voyage, such as damage to the ship or cargo, loss of goods, and liability to third parties. Marine voyage insurance provides comprehensive protection to ship owners, cargo owners, and other parties involved in the transportation of goods by sea. The policy terms and conditions may vary depending on the type of goods being transported, the route, and the duration of the voyage. With a marine voyage policy, the insured party can be assured that they are fully protected against any potential losses or damages that may occur during the sea voyage.

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The secretariat of the Niger Basin Commission is located in Niamey, Niger. The Niger Basin Commission is an intergovernmental organization that aims to promote the sustainable development of the Niger River Basin. The commission was established in 1964 and is composed of nine member countries: Benin, Burkina Faso, Cameroon, Chad, Cote d'Ivoire, Guinea, Mali, Niger, and Nigeria. The secretariat of the Niger Basin Commission serves as the administrative and coordinating body of the organization, responsible for implementing its decisions and managing its day-to-day affairs. The secretariat is located in Niamey, the capital city of Niger. In summary, the secretariat of the Niger Basin Commission is located in Niamey, Niger, which serves as the administrative and coordinating body of the organization that promotes the sustainable development of the Niger River Basin among its nine member countries.

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The function of the stock exchange market are to provide a platform for companies to raise capital by issuing shares to investors, to facilitate the buying and selling of stocks and other securities, and to provide information to investors about the financial performance of listed companies. Therefore, the option that is NOT a function of the stock exchange market is "enabling firms to wind-up quickly in times of difficulties." The stock exchange market is not directly involved in the liquidation or dissolution of companies, but rather focuses on providing a marketplace for investors to trade shares of publicly listed companies.

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The Berne Union is also known as the International Union of Credit and Investment Insurers. The Berne Union is an association of export credit and investment insurance providers from around the world. The organization was established in 1934 and is headquartered in London, United Kingdom. The Berne Union's members include both public and private sector organizations that provide insurance and other forms of financial protection to businesses involved in cross-border trade and investment. The organization aims to promote international trade by facilitating access to credit and investment insurance, providing a forum for information sharing and best practice, and promoting a better understanding of the role of export credit and investment insurance in supporting economic development. In summary, the Berne Union is an international association of credit and investment insurers that provides financial protection to businesses involved in cross-border trade and investment. The organization promotes international trade and economic development by facilitating access to credit and investment insurance and sharing best practices.

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A sole trader is a business owner who operates the business alone without any partners. The main advantage of a sole trader is the freedom to take quick decisions without having to consult with anyone else. As the sole owner of the business, he/she has complete control over all aspects of the business, from decision-making to managing finances. This allows the sole trader to make quick and effective decisions, which can be very important in a fast-paced business environment. Additionally, the sole trader can plough all the profits back into the business, which can help the business to grow and expand over time.

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Construction activities include the building of houses and roads as well as brick laying. Brick laying is an important part of construction activities, as bricks are commonly used as building materials for walls, foundations, and other structural elements in buildings and other structures. Brick laying involves the arrangement and placement of bricks in a specific pattern to create a sturdy and stable structure. It requires a good understanding of construction principles and techniques, as well as a knowledge of different types of bricks and their properties. While shoe making, blacksmithing, and car assembling are all important activities in their own right, they are not typically considered part of construction activities. Shoe making involves the production of footwear, blacksmithing involves the shaping and forging of metal objects, and car assembling involves the manufacture of automobiles. These activities may be related to manufacturing or other industries, but are not directly related to construction.

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The direct authority of a superior over his subordinate is known as line authority. In an organizational structure, line authority is the most basic form of authority, where a superior has direct control over his or her subordinates. This means that the superior has the power to give orders, make decisions, and enforce policies to ensure that work is completed efficiently and effectively. Line authority flows in a vertical direction, from the top of the organization to the bottom, and is typically associated with production-related activities. The superior is responsible for the work of the subordinates, and the subordinates are accountable to the superior for their performance. In contrast, staff authority is an advisory role that provides support and assistance to line personnel.

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A major liability of a commercial bank arises from customers' deposits. When customers deposit money in a commercial bank, the bank assumes a liability to repay the customer the deposited amount on demand or on the agreed terms. This is a major liability for the bank as it is obligated to keep the customers' money safe and repayable at any time, while also making use of the funds for lending and other business activities. Therefore, it is important for banks to have appropriate risk management measures in place to ensure that they can meet their obligations to depositors at all times.

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Spot market goods are those which are available for immediate delivery. This means that the goods can be delivered to the buyer immediately or within a very short period of time after the transaction is completed. This is different from goods that are available for long-term delivery, which may not be available for several months or even years. The spot market is often used for commodities such as oil, gold, and agricultural products, where prices can change rapidly based on supply and demand factors.

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The merger of two companies producing the same type of products is an example of horizontal integration. Horizontal integration refers to the process of two or more companies at the same level of the production process coming together to form a single entity. In this case, the two companies producing the same type of products are at the same level of production, and their merger will help to reduce competition and increase market share. By merging, they can increase their economies of scale, improve efficiency, and reduce duplication of efforts, leading to improved profits for the new entity.

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The cost of goods sold is the total cost of the goods that were sold during a specific accounting period. It can be calculated by subtracting the closing stock from the sum of the opening stock and purchases. In this case, - Opening stock: ₦40,000 - Purchases: ₦115,000 - Total cost of goods available for sale: ₦155,000 (₦40,000 + ₦115,000) - Closing stock: ₦60,000 - Cost of goods sold: ₦95,000 (₦155,000 - ₦60,000) Therefore, the cost of goods sold is ₦95,000.

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The correct order in which the listed documents are used is: order, delivery note, invoice, debit note, and statement. - An order is the first document used in a business transaction. It is a request made by a customer to purchase goods or services from a supplier. - A delivery note is used to document the goods delivered by the supplier to the customer. - An invoice is issued by the supplier to the customer, indicating the amount of money owed for the goods or services delivered. - If there are any discrepancies or errors in the invoice, a debit note is used to correct them. - Finally, a statement is sent to the customer at the end of a specified period, summarizing all transactions and outstanding balances.

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Rights issue means the issue of shares to shareholders on favourable terms. When a company needs to raise additional capital, it may decide to issue new shares to existing shareholders, in a process known as a rights issue. In a rights issue, the company offers its existing shareholders the right to purchase new shares at a discounted price, which is typically lower than the market price of the shares. This makes it an attractive option for shareholders to purchase more shares, as they can do so at a lower cost than the current market price. The purpose of a rights issue is to raise additional capital for the company, while also giving existing shareholders an opportunity to maintain their percentage ownership in the company, without being diluted by the issuance of new shares to outsiders. By offering shares to existing shareholders, the company is also able to maintain its relationship with its current investors, and may be able to avoid the costs and difficulties associated with finding new investors. The other options listed in the question do not accurately describe a rights issue, as a rights issue is specifically an issue of shares to existing shareholders, and does not involve the directors or founders of the company, or the right of shareholders to vote on any issue.

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If Chinyere agreed to make a dress for Halima with a specific delivery date, and the dress was not ready on that date, Halima has the option to sue Chinyere for specific performance. This means that Halima can demand that Chinyere fulfill the contract as agreed upon, and deliver the dress at a later date. Alternatively, Halima can sue for damages, which would compensate her for any losses or inconvenience caused by the late delivery. The other options, seizing another gown from Chinyere's shop or regarding the contract as terminated, are not viable solutions and could potentially result in legal consequences.

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The financial index which compares a company's current assets directly with its current liabilities is known as the current ratio. It is a measure of a company's liquidity or ability to pay its short-term debts using its short-term assets. The current ratio is calculated by dividing the company's current assets by its current liabilities. A ratio of 1 or higher indicates that the company has sufficient current assets to cover its current liabilities, while a ratio of less than 1 indicates that the company may have difficulty paying its short-term debts. The current ratio is an important financial metric that is closely watched by investors, analysts, and creditors to assess a company's financial health and ability to meet its short-term obligations.

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A freight note is a document issued by a shipping company that gives details of the charges associated with the transportation of goods. It is a receipt or invoice that outlines the freight charges and other associated costs, such as handling fees, customs duties, and insurance fees. The freight note is an important document that is used in international trade to ensure that all charges are correctly calculated and accounted for, and to facilitate the movement of goods from one location to another.

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A manufacturer can make his product distinguishable from those of other competitors by branding and packaging the product. Branding is the process of creating a unique name, symbol, or design that identifies and differentiates a product from those of other competitors. Packaging is the art of designing the container or wrapper that holds the product. Both branding and packaging play a significant role in making a product easily recognizable and memorable for customers. When a manufacturer brands and packages their product, they create a unique identity that sets it apart from similar products in the market. A well-designed brand and packaging can also evoke emotions and feelings in customers, influencing their purchasing decisions and building brand loyalty. In summary, branding and packaging are effective ways for a manufacturer to make their product distinguishable from those of other competitors. It creates a unique identity for the product, evokes emotions in customers, and builds brand loyalty.

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The main advantage of road transport is that it is convenient and flexible. Road transport allows for easy and direct movement of goods and people from one location to another. It is not limited by specific routes or schedules, and can be used to transport goods of various sizes and types. Additionally, road transport can reach remote areas and is not affected by the availability of other modes of transport like railways or airways. The flexibility of road transport makes it a popular choice for both short and long distance travel and transportation of goods.

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An industrial worker can be found in the set of occupations that include manufacturing, extraction, and construction. Manufacturing involves the production of goods using machinery and labor. Industrial workers in manufacturing jobs may work in factories or production facilities, and may be involved in the production of goods such as cars, electronics, or textiles. Extraction involves the removal of natural resources from the earth, such as minerals, oil, or gas. Industrial workers in extraction jobs may work in mines, oil fields, or other types of extraction sites. Construction involves the building of structures such as buildings, roads, and bridges. Industrial workers in construction jobs may work in a variety of roles, such as carpenters, electricians, or plumbers. The other sets of occupations listed do not typically include industrial workers. Commerce and banking involve activities related to finance and business, while quarrying and insurance are more specialized fields that do not necessarily involve manufacturing or construction activities.

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A firm's organizational structure may change due to various reasons such as changes in the scope of business operations, mergers and acquisitions, changes in ownership, introduction of new products, changes in market conditions, and others. For instance, if a company decides to diversify its operations or enter into a new market, it may need to restructure its organization to accommodate the new business lines or market conditions. Additionally, changes in ownership, such as the death of a major partner, may also lead to a restructuring of the organization. Therefore, option D, "the scope of business operation changes," is the most appropriate answer.

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A rights issue is an issuance of additional shares of a company to its existing shareholders in proportion to their current shareholding. This means that each shareholder has the right to purchase additional shares at a discounted price compared to the market value of the shares. The purpose of a rights issue is for a company to raise capital for expansion or other projects while giving existing shareholders the opportunity to maintain their proportional ownership in the company. Therefore, the correct answer is: issue of shares to shareholders on favourable terms.

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A public limited company can raise long-term loans through the capital market. The capital market is a market for long-term investment that provides a platform for companies to raise capital by issuing securities such as shares and bonds. In the case of a public limited company, it can issue shares to the public and raise funds for its long-term financing needs. The capital market provides access to a wide range of investors, including institutional investors, retail investors, and foreign investors, who are willing to invest in companies for a long period of time. This enables the public limited company to raise substantial amounts of capital, which can be used for various purposes such as expansion, research and development, and acquisition of new assets. While a public limited company can also raise short-term loans through the money market, such as bank overdrafts and discount houses, these are typically used for short-term financing needs and are not suitable for long-term financing. Therefore, the capital market is the preferred option for a public limited company to raise long-term loans.

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A bank statement is a document containing records of receipts, payments, and the balance on an account. It is a summary of the transactions that have occurred in a bank account over a period of time, typically one month. A bank statement provides details of all deposits, withdrawals, and other transactions that have taken place in an account during that period, along with the beginning and ending balances. It is usually provided by the bank to the account holder on a monthly basis, either as a physical statement or an electronic copy. Bank statements are important financial documents that can be used for budgeting, tax purposes, and reconciling accounts. They allow account holders to keep track of their account activity and ensure that all transactions are accurate and accounted for.

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Most foreign trade transactions are paid for through the use of irrevocable and confirmed letters of credit. An irrevocable letter of credit is a document issued by a bank on behalf of an importer, which guarantees that payment will be made to the exporter, provided that the exporter complies with the terms and conditions of the letter of credit. The letter of credit is confirmed when another bank adds its guarantee to the original letter of credit issued by the importer's bank, thereby providing an additional layer of security for the exporter. Letters of credit are the preferred method of payment in international trade because they provide a high level of security for both the importer and the exporter. The importer can be sure that the goods will be shipped and delivered as agreed, and the exporter can be sure that payment will be made as long as the terms and conditions of the letter of credit are met.

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The implication of the incorporation of a company is that the company's property becomes distinguished from that of its members. In other words, the company becomes a separate legal entity from its owners or shareholders. This means that the company can own property, sue and be sued in its own name, and enter into contracts. The shareholders or owners are not personally liable for the company's debts beyond the amount of their investment, except in certain circumstances such as fraud or illegal activity.

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The breaking down of a market into separate and identifiable elements, each with its own special product requirement is known as market segmentation. Market segmentation is the process of dividing a larger market into smaller groups of consumers with similar needs and characteristics. By doing so, companies can tailor their marketing strategies and product offerings to better meet the specific needs and preferences of each segment, which can lead to increased customer satisfaction and loyalty, and ultimately, higher profits.

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The practice by which an insurance company accepts a very large risk and later shares it with other insurance companies is called re-insurance. Re-insurance is a way for insurance companies to protect themselves against the risk of a large loss by transferring some of that risk to another company. For example, if an insurance company has a policy that covers a very large risk, such as a major natural disaster, they may not be able to handle the financial impact of that loss on their own. In such cases, they may choose to transfer some of that risk to another insurance company through re-insurance. The original insurance company (the cedent) pays a premium to the re-insurance company, who then takes on a portion of the risk associated with the policy. Re-insurance can be an effective way for insurance companies to manage their exposure to risk, as it allows them to spread the risk over a larger pool of companies. It also helps to ensure that policyholders can be adequately compensated in the event of a major loss, even if the original insurance company is not financially able to cover the entire loss on their own.

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When a company uses more loans than equity to finance its business, the company is said to be "highly geared." In other words, the company has a high level of financial leverage, meaning that a large portion of its assets are funded by borrowing. This can be advantageous because interest paid on loans is tax-deductible, and the company's equity investors benefit from the higher return on their invested capital. However, it can also be risky, as the company may have trouble meeting its debt obligations if its earnings decline.

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Motivation is an essential element in management because it encourages individuals to work towards achieving the organization's objectives. When employees are motivated, they are more likely to be productive, engaged, and committed to their work, and are willing to put in extra effort to achieve the organization's goals. This can lead to increased efficiency, higher quality output, and improved overall performance of the organization. Motivated employees are also more likely to take ownership of their work, be proactive in problem-solving, and be willing to go above and beyond what is required of them. Additionally, motivation can help to improve staff welfare by providing incentives and rewards for good performance, which can enhance job satisfaction and reduce turnover. While motivation cannot completely eliminate friction among employees or industrial disharmony, it can help to minimize these issues by creating a positive work environment where employees feel valued, supported, and recognized for their contributions.

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When goods are imported into a country with the intention of re-exporting them, a rebate known as "customs draw back" can be obtained. This is a refund of the customs duty paid on the imported goods when they are exported. The purpose of this rebate is to encourage and facilitate the re-export of imported goods, which can help to stimulate international trade and promote economic growth. Customs draw back is particularly relevant for businesses that engage in international trade, such as exporters, importers, and freight forwarders. By allowing them to recover the customs duty paid on imported goods that are later re-exported, customs draw back can reduce the cost of doing business and make it more competitive. Therefore, the correct answer is "customs draw back".

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Advertising, personal selling, and publicity are forms of sales promotion. Sales promotion refers to the activities that businesses undertake to promote their products or services and increase sales. Advertising involves using paid media channels such as television, radio, or social media to communicate with potential customers. Personal selling involves direct communication between a salesperson and a potential customer, often face-to-face. Publicity is a form of promotion that involves getting free media coverage for a product or service, such as through news articles or press releases. In summary, sales promotion involves activities that businesses undertake to promote their products or services and increase sales. Advertising, personal selling, and publicity are all examples of sales promotion.

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When an industry or company is nationalized, the state becomes the only shareholder. Nationalization is a process whereby a government takes over private assets or companies and brings them under state ownership and control. This means that the government becomes the owner of the company and takes control of its operations, management, and profits. As the sole owner of the nationalized company, the state assumes all the rights, responsibilities, and risks associated with ownership, and has full control over the company's decision-making processes.

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The set that is entirely made up of middlemen in the channel of distribution is "wholesalers, retailers and agents". Middlemen are individuals or organizations that act as intermediaries between the manufacturer or producer of a product and the end consumer. They help to bridge the gap between the manufacturer and the consumer by performing functions such as buying, selling, storing, and transporting goods. In the given options, "wholesalers, retailers, and agents" are all middlemen because they do not produce or manufacture the product themselves, nor are they the end consumers. Wholesalers buy products in bulk from the manufacturers or producers and sell them in smaller quantities to retailers. Retailers, in turn, sell the products to the end consumers. Agents, on the other hand, act as intermediaries between the manufacturer and the wholesaler or retailer, and facilitate the sale of products by negotiating with both parties. Therefore, the correct answer is "wholesalers, retailers and agents".

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