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Question 1 Report
A factor necessary for siting of a warehouse is nearness to
Answer Details
A factor that is necessary for siting a warehouse is the **nearness to consumers**. When deciding where to locate a warehouse, it is important to consider the proximity or closeness to the consumers who will be buying the products stored in the warehouse. This is because being close to consumers has several advantages: 1. **Faster delivery**: When the warehouse is located near the consumers, it reduces the distance that goods need to travel to reach them. This means that products can be delivered more quickly, which is important for satisfying customer demands and providing a good customer experience. 2. **Reduced transportation costs**: Having a warehouse close to consumers also helps to reduce transportation costs. When the warehouse is located far away, it requires more time, fuel, and resources to transport goods from the warehouse to the consumers. By minimizing the distance, transportation costs can be minimized too. 3. **Flexibility and responsiveness**: Being close to consumers allows the warehouse to be more flexible and responsive to their needs. It becomes easier to adapt to changes in demand and customer preferences when the warehouse is situated nearby. This can help businesses stay competitive in the market. 4. **Customer satisfaction**: Ultimately, having a warehouse near consumers contributes to customer satisfaction. Customers appreciate receiving their products quickly and efficiently. By providing fast and convenient service, businesses can attract and retain more customers. In summary, the nearness to consumers is an important factor to consider when siting a warehouse. It enables faster delivery, reduces transportation costs, allows for greater flexibility, and leads to improved customer satisfaction.
Question 2 Report
The stock exchange is a market where
Answer Details
The stock exchange is a market where all types of securities are sold. This means that it is a place where various financial assets can be bought and sold. This includes short-term, medium-term, and long-term securities.
Securities refer to tradable financial instruments, such as stocks (also known as shares or equities), bonds, and derivatives. Stocks represent ownership in a company, while bonds are debt instruments issued by the government or corporations. Derivatives are financial contracts based on the value of an underlying asset.
On the stock exchange, buyers and sellers come together to trade these securities. Buyers are interested in purchasing securities as investments, hoping that their value will increase over time. Sellers, on the other hand, may be looking to sell securities they already own in order to make a profit or reduce their risk.
The stock exchange provides a centralized platform where securities can be traded, ensuring transparency and fair pricing. It operates through a network of exchanges and brokers, with buyers and sellers submitting their orders electronically. Trades are executed based on the prevailing market prices, determined by supply and demand.
Overall, the stock exchange plays a crucial role in capital markets by facilitating the buying and selling of securities, enabling companies to raise funds and investors to participate in the growth of businesses.
Question 3 Report
An agreement that is enforceable in law is
Answer Details
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 there is an offer made by one party to another, and that offer is accepted. Both parties must provide something of value, known as consideration, for the contract to be valid. Once a contract is formed, it means that both parties are legally obligated to fulfill their promises as outlined in the agreement. If any party fails to fulfill their obligations, the other party can seek legal remedies to enforce the contract. So, in simple terms, a contract is an agreement that can be enforced by law if any party fails to do what they promised to do.
Question 4 Report
One disadvantages of advertising is that it
Answer Details
One disadvantage of advertising is that it could be misleading. Advertising is a way of promoting products or services to attract customers. However, sometimes advertisements may not provide accurate or honest information about a product. This can mislead customers into believing that a product is better than it actually is. For example, an advertisement might exaggerate the benefits of a product or hide its potential drawbacks. This can lead to customers purchasing a product based on false expectations, only to be disappointed when they realize it does not meet their needs or desires. Misleading advertising can also have negative consequences for businesses. If customers feel deceived by an advertisement, they may lose trust in the brand and be less likely to make future purchases. Moreover, misleading advertising can also lead to legal issues and damage a company's reputation. Therefore, it is important for both businesses and consumers to be aware of the potential for misleading advertising and to critically evaluate the claims made in advertisements before making a decision.
Question 5 Report
Why is clean bill of lading called so?
Answer Details
A clean bill of lading is called so because it is a clear and accurate document that shows no records of damaged goods or any other problems. When goods are transported by ship, a bill of lading is issued as a receipt and evidence of the contract between the shipper and the carrier. It includes important information such as the type of goods, the quantity, and the destination. A clean bill of lading indicates that the goods have been loaded onto the ship in good condition and that there are no visible signs of damage or issues. It is like a "clean slate" for the goods, meaning there are no problems associated with them at the time of shipment. This document is important because it serves as proof that the goods were in good condition when they were handed over to the carrier. It also ensures that the responsibility for any damages or issues lies with the carrier, rather than the shipper. On the other hand, if a bill of lading shows records of damaged goods, it would be called a "dirty" or "foul" bill of lading. This would indicate that there are problems or damages associated with the goods, which may complicate the liability and the insurance claims process. Therefore, a clean bill of lading signifies that no debt is owed and that the goods have been shipped in good condition, giving confidence to both the shipper and the receiver of the goods.
Question 6 Report
Answer Details
The type of letters that are delivered through the normal mail or by airmail express service is referred to as inland letters. Inland letters are letters that are sent within the same country. They can be delivered through the normal mail service or by airmail express service, depending on the sender's preference and the urgency of the letter.
Question 7 Report
The macro-environmental forces and trends which are a constraint on business operations are referred to as
Answer Details
The macro-environmental forces and trends which are a constraint on business operations are referred to as external factors. These factors are external to the organization and they influence the success or failure of a business.
Internal factors refer to the factors within the control of the business, such as the company's structure, resources, and capabilities. On the other hand, external factors are forces and trends that are beyond the control of the business, but can have a significant impact on its operations and performance.
Technological factors are one type of external factor that refers to the advances and innovations in technology that can impact businesses. For example, the introduction of new technologies can lead to changes in production processes, marketing strategies, and customer expectations.
Economic factors are another type of external factor that include factors related to the overall economy and can affect businesses in various ways. For instance, changes in economic conditions such as inflation, unemployment rates, and consumer spending patterns can impact the demand for products or services.
However, when we talk about the macro-environmental forces and trends that specifically constrain business operations, we refer to the broader external factors that include not only technological and economic factors but also social, political, legal, and environmental factors. These factors can influence a business's ability to operate, make decisions, and achieve its goals.
In conclusion, the macro-environmental forces and trends that are a constraint on business operations are referred to as external factors. They encompass a range of influences, including technological and economic factors, as well as social, political, legal, and environmental factors. These forces and trends can significantly impact a business's operations and success.
Question 8 Report
The type of activity which turns processed raw materials into consumer and industrial goods is described as
Answer Details
The type of activity which turns processed raw materials into consumer and industrial goods is known as manufacturing.
Manufacturing involves the transformation of raw materials or components into finished products through various processes. These processes can include assembly, fabrication, mixing, shaping, or refining, depending on the nature of the raw materials and the desired end product.
In manufacturing, value is added to the raw materials by converting them into something that has more utility and satisfies consumer needs or industrial requirements.
For example, a manufacturer may take steel and shape it into car parts, or they may take fabric and sew it into clothing. This process is essential in meeting consumer demands and providing a wide range of goods for everyday life.
Without manufacturing, we would not have the vast array of products available to us, such as cars, electronics, furniture, clothes, and more.
In summary, manufacturing is the activity that transforms raw materials into finished goods through various processes, adding value and creating products that meet consumer and industrial needs.
Question 9 Report
A partnership is dissolved due to
Answer Details
A partnership can be dissolved due to various reasons. Let's explore each option mentioned:
1. Resignation of an employee: The resignation of an employee does not directly cause the dissolution of a partnership. While the resignation of a partner may have implications for the partnership, it alone does not lead to dissolution.
2. Liquidity of the firm: The liquidity, or financial stability, of a firm can be a factor that influences the decision to dissolve a partnership. If the firm is facing severe financial difficulties and unable to meet its obligations, the partners may choose to dissolve the partnership to avoid further losses.
3. Death of the employee: The death of an employee, while unfortunate, does not automatically result in the dissolution of a partnership. However, the death of a partner can lead to the dissolution of the partnership, especially if there are no provisions in the partnership agreement to continue the business after the partner's death.
4. Insanity of a partner: The insanity, or mental incapacity, of a partner can contribute to the dissolution of a partnership. If a partner becomes mentally unfit to participate in the partnership's affairs or fulfill their duties, it can create significant challenges and may eventually lead to the dissolution of the partnership.
In conclusion, the three factors that can cause the dissolution of a partnership are: - The liquidity of the firm, if it is unable to meet financial obligations. - The death of a partner, particularly if no provisions for continuation are in place. - The insanity of a partner, making it difficult for them to fulfill their duties.
Question 10 Report
A system where customer patronage is sought by producing what they need is referred to as
Answer Details
A system where customer patronage is sought by producing what they need is referred to as market orientation. Market orientation is an approach adopted by businesses where they prioritize understanding customer needs and preferences. Rather than focusing solely on promoting or selling their products, market-oriented companies aim to produce goods and services that align with customer demands. In a market-oriented system, businesses conduct thorough market research to identify consumer needs, preferences, and trends. This information is then used to develop and modify their products to meet these specific requirements. The key point is to focus on customer satisfaction by delivering products that fulfill their needs, wants, and expectations. By adopting a market orientation, businesses can effectively tailor their products and marketing strategies to meet customer demands, resulting in increased customer satisfaction and long-term success.
Question 11 Report
Which of the following is not a veritable source of funds to a public limited liability company?
Answer Details
The answer is: Government financial grants.
A public limited liability company can obtain funds from various sources such as advances and loans from banks, internally generated funds, and funds from the sale of shares. However, government financial grants are not considered a veritable source of funds for a public limited liability company.
Advances and loans from banks can be obtained by a company in order to meet its financial needs. These funds are typically provided by the bank based on the company's creditworthiness and ability to repay the loan. This can be a reliable source of funds for a company.
Internally generated funds refer to the funds that a company generates from its own operations. This can include profits from the sale of goods or services, dividends from investments, or any other income generated by the company's operations. These funds are considered to be a reliable and sustainable source of financing.
Funds from the sale of shares refer to the capital that a company raises by issuing shares to investors. When a company goes public, it offers shares to the public through an initial public offering (IPO). Investors can then buy these shares, providing the company with capital. This is a common way for companies to raise funds.
On the other hand, government financial grants are not typically a veritable source of funds for a public limited liability company. While governments may provide financial assistance or grants to certain industries or sectors, this is usually not the primary source of funding for a company. Grants are often provided for specific projects or initiatives and may come with certain conditions or limitations.
In summary, while advances and loans from banks, internally generated funds, and funds from the sale of shares are all potential sources of funds for a public limited liability company, government financial grants are not considered a veritable source of funds.
Question 12 Report
Insurance against burglary is an example of
Answer Details
Insurance against burglary is an example of indemnity insurance. Indemnity insurance is a type of insurance that provides financial compensation for the loss or damage caused by a specific event or peril.
In the case of burglary insurance, it specifically covers the loss or damage resulting from a burglary or theft. When you have burglary insurance, you are protected against the financial consequences of a burglary. If your home or property is broken into and valuable items are stolen or damaged, the insurance company will compensate you for the value of those items, up to the limits specified in your policy. It is important to note that indemnity insurance does not provide a profit or go beyond the actual loss or damage suffered. The purpose of this type of insurance is to restore you to the same financial position you were in before the burglary occurred.
Non-indemnity insurance is a term used to describe insurance policies that do not provide financial compensation for the loss or damage suffered. Instead, they typically provide services or benefits that are not related to the actual cost of the loss.
Non-insurable risk refers to risks that insurance companies are unwilling or unable to provide coverage for. These risks are typically considered too unpredictable or highly certain to result in a loss, making it difficult for insurers to assess and determine an appropriate premium.
Fidelity guarantee insurance is a type of insurance that protects businesses against financial loss caused by the dishonest or fraudulent acts of their employees. It covers instances where an employee embezzles money, steals property, or commits other fraudulent acts.
In summary, insurance against burglary falls under the category of indemnity insurance. It provides financial compensation for the loss or damage caused by a burglary or theft, aiming to restore the policyholder to the same financial position they were in before the incident occurred.
Question 13 Report
The scope commerce is limited to
Answer Details
Commerce is not limited to any specific area. It encompasses a wide range of activities and aspects related to trade and business. The scope of commerce includes both home and foreign trade, which involves buying and selling goods and services within a country and between different countries. Commerce covers various forms of trade, such as wholesale and retail trade. Wholesale trade refers to the sale of goods in large quantities to retailers or businesses, while retail trade involves selling goods directly to consumers. Additionally, commerce also includes the concept of aids-to-trade, which are activities that facilitate smooth trading processes. These aids-to-trade can be transportation, storage, insurance, banking, advertising, and other related services that support the exchange of goods and services. Lastly, commerce is not limited to any specific type of trade, such as entreport trade. Entreport trade refers to the import and re-export of goods through a port or trading center without significant processing or value addition. While this is a part of commerce, it is not the sole focus or limitation of the field. In summary, commerce encompasses home and foreign trade, wholesale and retail trade, as well as various aids-to-trade. It is a broad field that covers all aspects of buying, selling, and supporting trade activities in both domestic and international contexts.
Question 14 Report
Which of the following regulates and controls the activities in the Nigerian Stock Exchange?
Answer Details
The regulatory body that controls and regulates the activities in the Nigerian Stock Exchange (NSE) is the Securities and Exchange Commission (SEC). The SEC is responsible for the supervision, regulation, and development of the capital market in Nigeria. Its main objective is to protect investors, maintain fair and transparent markets, and promote the growth and development of the capital market. The SEC ensures that companies listed on the Nigerian Stock Exchange comply with rules and regulations to maintain integrity and investor confidence in the market. It sets standards for disclosure and financial reporting, monitors trading activities, and investigates any misconduct or market abuse. The Central Bank of Nigeria (CBN) is responsible for monetary policy and banking supervision, while the Bureau of Public Enterprises (BPE) oversees privatization and public enterprises. The Nigeria Deposit Insurance Corporation (NDIC) focuses on deposit insurance and bank supervision. Therefore, out of the options provided, the Securities and Exchange Commission (SEC) is the regulatory body that specifically regulates and controls the activities in the Nigerian Stock Exchange (NSE).
Question 15 Report
What is a quota?
Answer Details
A quota is a physical restriction placed on the quantity of goods that can be imported. It is not a ban on all imported goods, a tax paid on goods produced within a country, or a tax paid on goods produced outside a country. Quotas are usually set by governments to control the amount of certain goods that can enter a country. They can be used to protect domestic industries, manage trade imbalances, or regulate the flow of goods. By limiting the quantity of imported goods, quotas can affect supply and demand, pricing, and competition in the marketplace.
Question 16 Report
The rate where a country's exports exchange for its imports is called
Answer Details
The correct answer is terms of trade.
Terms of trade refers to the rate at which a country's exports exchange for its imports.
It is an economic indicator that measures the relative value of a country's exports in comparison to its imports. To understand it better, let's imagine a scenario where a country is exporting goods such as automobiles, electronics, and textile products to other countries, while also importing goods like oil, machinery, and clothing. The terms of trade would reflect the exchange ratio between the value of the country's exports and the value of its imports. When the terms of trade are favorable, it means that a country is able to trade its exports for a larger amount of imports.
This indicates that the country is receiving a higher value of imports for the same quantity or value of exports. It is generally beneficial for a country to have favorable terms of trade because it allows them to obtain a wider variety of goods and services from other countries. On the other hand, when the terms of trade are unfavorable, it means that a country has to trade a larger quantity or value of its exports in order to obtain the same amount of imports.
This indicates that the country is receiving a lower value of imports for its exports. Unfavorable terms of trade can be detrimental to a country's economy, as it can lead to a loss of wealth and limited access to necessary goods and resources.
Therefore, terms of trade play a significant role in determining a country's economic well-being and its ability to engage in international trade.
It provides insights into the relative value of a country's exports and imports, and its impact on the overall balance of trade and balance of payments.
Question 17 Report
The payment made by a speculator to the buyer when he is unable to deliver stocks on the agreed date is
Answer Details
Backwardation is a percentage paid by a person selling stock for the right of delaying its delivery.
Question 18 Report
A demerit of communication is that it
Answer Details
The sender of communication may have a clear idea about the message but it may still be marked by the poorly chosen words poor organization, awkward sentence structure, lack of coherence, omissions unnecessary jargon, and a failure to clarify its implications.
Question 19 Report
If a business uses part of its profit to develop the area where it operates, the business is fulfilling its
Answer Details
If a business uses part of its profits to develop the area where it operates, it is fulfilling its social responsibilities. Social responsibilities refer to the obligations of a business to contribute to the well-being and improvement of society. By investing in the development of the local area, the business is showing its commitment to the community and the people living there. This can be done through various means such as supporting education, healthcare, infrastructure projects, or environmental initiatives. When a business fulfills its social responsibilities, it goes beyond its primary goal of making profits and considers the impact it has on society. It recognizes that it has a role to play in creating positive social change and improving the quality of life for the people in its community. In summary, by using its profits to develop the area where it operates, the business is fulfilling its social responsibilities by contributing to the well-being and improvement of society.
Question 20 Report
The maximum number of shareholders in a public liability company is
Answer Details
The correct answer is unlimited. In a public liability company, there is no maximum limit on the number of shareholders that can be involved.
This means that a public liability company can have as many shareholders as it wants or needs. Unlike other types of companies, such as private limited companies, which often have restrictions on the number of shareholders they can have, public liability companies are open to the public and allow anyone to buy shares in the company.
The main reason for not having a maximum limit on the number of shareholders in a public liability company is to provide opportunity for a wide range of investors to invest in the company.
This allows the company to raise a larger amount of capital and have more diverse ownership. Having an unlimited number of shareholders also helps in spreading the risk among a larger pool of investors.
If one shareholder decides to sell their shares or withdraw from the company, there are still many other shareholders remaining, which helps maintain stability and continuity in the company's ownership structure.
Therefore, in a public liability company, there is no restriction on the number of shareholders, and it can have as many shareholders as it wants or needs to effectively operate and grow the business.
Question 21 Report
A government policy that encourages transfer of ownership from foreigners to indigenes of the country is known as
Answer Details
Indigenisation is the government policy that encourages the transfer of ownership from foreigners to indigenes of the country.
This means that the government is promoting the idea of giving ownership and control of businesses, resources, and industries to the local people or native citizens of the country.
The main objective of indigenisation is to empower the local population and promote economic development.
By transferring ownership to indigenes, the government aims to reduce the influence of foreign entities and create opportunities for local businesses and individuals to thrive.
Indigenisation policies can take various forms, such as requiring a certain percentage of ownership to be held by locals, providing incentives for indigenous businesses, or implementing regulations that prioritize local participation in key sectors of the economy.
Overall, indigenisation is a strategy used by governments to ensure that resources and economic power are shared among the local population, fostering economic growth, and reducing dependency on foreign entities.
Question 22 Report
Which of the following is a verbal means of communication
Answer Details
A verbal means of communication refers to a method of conveying information using spoken words. Out of the given options, the telephone is a verbal means of communication. The telephone allows people to talk to each other by transmitting their voices over a distance. It works by converting sound into electrical signals that can be transmitted through telephone lines or wirelessly. When you speak into a telephone, your voice is converted into an electrical signal and sent to the other person's telephone. Their telephone then converts the electrical signals back into sound, allowing them to hear your voice. This verbal communication method is widely used for various purposes, such as personal conversations, business discussions, and customer service. It provides real-time interaction and enables people to express their thoughts and ideas directly to others. In summary, the telephone is a verbal means of communication because it allows people to communicate using spoken words transmitted through electrical signals.
Question 23 Report
The process of dividing tasks into jobs and departments and delegating authority is known as
Answer Details
The process of dividing tasks into jobs and departments and delegating authority is known as organizing.
Organizing involves breaking down the overall goals and objectives of an organization into smaller, more manageable tasks. This allows for a clear understanding of what needs to be done and how it will be divided among different individuals or departments.
Dividing tasks into jobs means identifying the specific activities or responsibilities that need to be carried out to achieve the organization's goals. For example, in a manufacturing company, tasks may be divided into jobs such as production, quality control, and logistics. Each job has its own set of duties and responsibilities.
Dividing tasks into departments is about grouping jobs together based on their similarities or functions. This helps in creating a more structured and organized work environment. For example, sales, marketing, and customer service might form different departments within a company.
Delegating authority means assigning decision-making power and responsibility to individuals or departments. It involves giving people the necessary authority and resources to accomplish their tasks effectively. This allows for a more efficient and effective decision-making process throughout the organization.
Overall, the process of organizing involves dividing tasks into jobs and departments and delegating the appropriate authority to ensure that the work is performed in a coordinated and efficient manner.
Question 24 Report
An advantage of division of labour is
Answer Details
One advantage of division of labour is that it increases productivity and total output.
Division of labour refers to the specialization of tasks where individuals in a group or organization focus on specific tasks based on their skills and abilities.
Each person becomes proficient in their assigned task and is able to perform it more efficiently and effectively through practice and experience. By dividing a complex task into smaller, simpler tasks, the individuals involved can become experts in their own specific areas.
As a result, they can complete their tasks more quickly and with higher quality. This leads to increased overall productivity and higher output. For example, in a car manufacturing company, workers are divided into different stations or departments such as assembly, welding, painting, and testing.
Each worker in each department focuses on their specific task, such as attaching the wheels, welding the chassis, or applying the paint. This specialization enables the company to produce cars at a faster rate and with better quality than if each worker had to do all the tasks themselves.
Therefore, division of labour leads to increased productivity and total output by allowing individuals to specialize in specific tasks, perform them more efficiently, and collectively contribute to the overall goal.
Question 25 Report
The fees charged on postal order by the post office is
Answer Details
The fee charged on postal orders by the post office is called "poundage". Poundage is a fee that is added to the total value of the postal order. It is a small percentage or fixed amount that the post office charges for providing the service of issuing and handling the postal order. The purpose of the poundage fee is to cover the costs incurred by the post office in processing and delivering the postal order. This includes administrative expenses, handling and transportation costs, as well as providing security for the transaction. It is important to note that the poundage fee is not the same as interest or brokerage. Interest refers to the additional amount of money earned on an investment or loan, which is not relevant to postal orders. Brokerage, on the other hand, is a fee charged by a broker for arranging a transaction between a buyer and a seller, which is also not applicable to postal orders. Therefore, to summarize, the fee charged on postal orders by the post office is called "poundage." It is a fee added to the total value of the postal order to cover the costs of processing and delivering the order.
Question 26 Report
The organised effort of consumers to protect themselves against the unfair practices of businessmen is known as
Answer Details
The organized effort of consumers to protect themselves against the unfair practices of businessmen is known as consumerism.
Consumerism is a movement that aims to empower and educate consumers, advocating for their rights and interests in the marketplace. It involves individuals, groups, and organizations working together to promote fair business practices, transparency, and the provision of quality products and services.
Consumerism encompasses various activities such as raising awareness about consumer rights, educating consumers about their rights and responsibilities, promoting ethical and sustainable consumption, and advocating for stronger consumer protection laws.
It encourages individuals to be vigilant and proactive in their purchasing decisions, making informed choices based on factors like product quality, safety, environmental impact, and fair pricing.
Consumerism often involves activities like boycotting companies that engage in unethical practices, filing complaints with consumer protection agencies, participating in product recalls, and supporting initiatives that promote fair trade and responsible corporate behavior.
Overall, consumerism serves to balance the power dynamics between businesses and consumers, giving individuals the means to protect themselves from unfair practices and make informed choices for their well-being and satisfaction.
It plays a crucial role in holding businesses accountable and shaping a fair and just marketplace.
Question 27 Report
The concept that refers to the sale, transfer or exchange of goods and services is
Answer Details
The concept that refers to the sale, transfer, or exchange of goods and services is **trade**. Trade is the process of buying and selling goods and services between individuals, companies, or countries. It involves the exchange of something valuable, such as money, for a product or service. For example, when you go to a store and purchase a book, you are engaging in trade. The store is selling you the book, and you are giving them money in exchange. This transaction is a form of trade. Similarly, when different countries exchange goods with each other, it is also called trade. For instance, if one country produces cars and another country wants to buy those cars, they will engage in trade by exchanging money for the cars. Trade plays a crucial role in the global economy as it allows people and businesses to obtain the goods and services they need or desire. It promotes economic growth, creates job opportunities, and helps to establish connections between countries.
Question 28 Report
A business organization that exploits the capabilities of a member to remedy the weakness of another is a
Answer Details
A business organization that exploits the capabilities of a member to remedy the weakness of another is a cooperative. In a cooperative, individuals or businesses come together voluntarily to pool their resources, skills, and knowledge for mutual benefit. The members of a cooperative work together to address their weaknesses by leveraging the strengths of others. This collaboration helps to improve the overall efficiency and productivity of the cooperative. Cooperatives operate on the principle of "working together" rather than competing against each other. By sharing resources, expertise, and responsibilities, the members can achieve common goals that may not have been possible individually. The cooperative structure allows members to contribute their unique skills and abilities to fill any gaps or weaknesses within the organization. This collective effort promotes collaboration, problem-solving, and shared decision-making. Overall, a cooperative is a business organization that fosters cooperation among its members to maximize their strengths and overcome weaknesses collectively.
Question 29 Report
An individual that links the producer with the retailer is
Answer Details
A wholesaler is a merchant who purchases goods in large quantity from the manufacturer and sell in small quantities to the retailer. The wholesaler acts as an intermediary between the retailer and the manufacturer.
Question 30 Report
Current account holders withdraw money through
Answer Details
Current account holders can withdraw money from their accounts using different methods. **1. Transfers:** One of the common ways to withdraw money from a current account is through transfers. This involves transferring funds electronically from the current account to another bank account. You can initiate a transfer by providing the recipient's bank account details such as their bank name, account number, and sort code. This method is often used for making payments to individuals or businesses. **2. Credit Cards:** Another method is through the use of credit cards. If your current account is linked to a credit card, you can withdraw money by using the card at an ATM or making cash advances at a bank or financial institution. It's important to note that using a credit card for cash withdrawals may incur additional fees or interest charges, so it's advisable to check the terms and conditions of your credit card provider. **3. Withdrawal Form:** Some banks may also provide a withdrawal form that you can fill out to withdraw cash from your current account. This form usually requires you to specify the amount you wish to withdraw and your account details. Once the form is completed, you can submit it to the bank, and they will process the withdrawal accordingly. **4. Cheque:** Lastly, current account holders can withdraw money by writing a cheque. A cheque is a paper document that instructs the bank to pay a specific amount from your account to the person or organization named on the cheque. The recipient can then deposit or cash the cheque to access the funds. It's worth noting that the use of cheques is becoming less common due to the increasing popularity of electronic payment methods. Overall, these are some of the ways current account holders can withdraw money from their accounts. The choice of method depends on personal preference, accessibility, and the specific services offered by the bank.
Question 31 Report
An agent who has to sell perishable goods without the prior authority of the owner becomes an agent by
Answer Details
Agency by necessity arises when an emergency situation happens. When somebody who is possession of another person's property has to so something to preserve the property.
Question 32 Report
The act of selling in a foreign market at a price lower than the cost price is called
Answer Details
The correct answer is **dumping**. Dumping is the act of selling products in a foreign market at a lower price than what it cost to produce them. This practice allows the exporter to gain a competitive advantage over local businesses in the foreign market, as they can offer lower prices to attract customers and potentially drive local producers out of business. Dumping is often seen as an unfair trade practice because it can harm domestic industries by creating an unlevel playing field. It can also lead to anti-dumping measures being imposed by the importing country to protect its industries. To summarize, dumping involves selling products in a foreign market at a price lower than the cost price, giving the exporter a competitive advantage but potentially harming local industries.
Question 33 Report
The difference between the central bank and commercial bank is that the former
Answer Details
The central bank and commercial bank are two different types of banks that serve different purposes. The central bank, as the name suggests, is the bank that is at the center or the heart of a country's banking system. It is responsible for controlling and regulating the country's money supply, interest rates, and monetary policy. One of the important functions of the central bank is to act as the lender of last resort. This means that in times of financial crisis or when commercial banks are unable to meet their obligations, the central bank steps in to provide liquidity and ensure the stability of the banking system. On the other hand, commercial banks are the banks that most people are familiar with, as they are the ones that provide various banking services to the public. Commercial banks serve as intermediaries between individuals and businesses that have surplus funds to deposit, and those who need to borrow money. They accept deposits from individuals and businesses and in return, provide a range of services such as checking accounts, savings accounts, and loans. In summary, the key difference between the central bank and commercial bank is that the central bank acts as the lender of last resort and is responsible for regulating the country's banking system, while commercial banks provide banking services to the public and facilitate the borrowing and lending of money.
Question 34 Report
At the collapse of a business enterprises, the person appointed to dispose off the assets is called
Answer Details
The person who is appointed to dispose off the assets at the collapse of a business enterprise is called a liquidator.
A liquidator is an individual or a professional firm that specializes in winding up the affairs of a company when it is unable to pay its debts or when it is being voluntarily dissolved. The role of a liquidator is to ensure that the assets of the company are efficiently sold or distributed in order to repay the creditors and stakeholders.
Their primary responsibility is to maximize the value of the assets and distribute the proceeds fairly among the various parties involved. To achieve this, a liquidator may use various methods such as organizing auctions, negotiating with potential buyers, or selling the assets through brokers. They also handle legal matters and ensure that the company's liabilities are adequately settled.
Additionally, a liquidator may also be responsible for dealing with employee redundancies and managing any ongoing legal disputes. In summary, the main duty of a liquidator is to oversee the process of selling off the assets of a business entity in order to settle its debts and obligations.
Their goal is to maximize returns for creditors and stakeholders while following legal protocols and ensuring a fair distribution of the proceeds.
Question 35 Report
A major function of chamber of commerce is
Answer Details
The major function of a chamber of commerce is promoting both home and foreign trade.
This means that the chamber of commerce works to support and encourage businesses in their local community to engage in trade activities, both within the country (home trade) and with other countries (foreign trade).
The chamber of commerce plays a vital role in creating opportunities for businesses to connect with potential customers, suppliers, and partners. They facilitate trade exhibitions, networking events, and business conferences, where companies can showcase their products and services to a wider audience. By promoting trade, the chamber of commerce helps businesses expand their market reach, increase sales, and grow their profitability.
This not only benefits the individual businesses but also contributes to the overall economic development of the region. In addition to promoting trade, the chamber of commerce also provides support and resources to businesses to help them increase productivity.
This can include offering training programs, access to business development resources, and advocating for policies that foster a favorable business environment.
Promoting trade in a particular line is a narrower focus and not the major function of a chamber of commerce. While they may support specific industries or sectors within their community, their primary role is to promote trade in a broader sense, considering the interests and needs of all businesses.
Furthermore, maximizing profit is not the primary objective of a chamber of commerce. While they aim to support the success and profitability of businesses, their main focus is on fostering a conducive business environment and facilitating trade, rather than exclusively focusing on individual profit maximization.
Question 36 Report
The effects of devaluation includes all except
Answer Details
Devaluation is the reduction in the value of a country's currency compared to other currencies. It can have several effects on the economy. One effect of devaluation is the **expansion of local industries**. When a country's currency is devalued, it becomes cheaper for foreigners to buy goods and services from that country. This can make the country's exports more competitive in international markets. The increase in demand for these exports can lead to the growth and expansion of local industries, creating new jobs and boosting the economy. Another effect of devaluation is the **increase in import**. When a currency is devalued, imported goods and services become more expensive for the country's residents. This is because the country needs to exchange more of its devalued currency for the foreign currency to pay for imports. As a result, people may opt to buy more domestic products instead of expensive imports. A third effect of devaluation is that **exports become cheaper**. When a country's currency is devalued, its exports become relatively cheaper compared to currencies of other countries. This means that foreign buyers can purchase a larger quantity of goods and services for the same amount of their own currency. This can help boost a country's exports and improve its trade balance. However, the **increase in standard of living** is not a direct effect of devaluation. Devaluation can bring benefits to certain sectors of the economy, such as exporters and domestic industries, but it does not guarantee an increase in the overall standard of living for all residents. The impact of devaluation on the standard of living depends on various factors, such as the country's dependence on imports, inflation, and the effectiveness of government policies. In summary, the effects of devaluation include the expansion of local industries, an increase in imports becoming more expensive, and exports becoming cheaper. However, it does not directly lead to an increase in the overall standard of living.
Question 37 Report
| Naira |
Naira |
||
Stock 1/1 |
20,000 | Net Sales | 370,000 |
Add purchases |
250,000 | ||
Cost of goods available for sale |
270,000 | ||
Less stock 31/12 |
40,000 | ||
Cost of goods sold |
230,000 | ||
Rent expenses |
35,000 |
Answer Details
To find the gross profit, we need to understand what it represents. Gross profit is the amount of money left after subtracting the cost of goods sold from the net sales.
Net sales is the total revenue generated from selling goods, which in this case is ₦370,000.
The cost of goods sold is the total cost incurred to produce or purchase the goods that were sold. To calculate it, we subtract the value of the stock on 31/12 (₦40,000) from the cost of goods available for sale (₦270,000). In this case, the cost of goods sold is ₦230,000.
Now, we can calculate the gross profit by subtracting the cost of goods sold (₦230,000) from the net sales (₦370,000). Gross profit = Net sales - Cost of goods sold Gross profit = ₦370,000 - ₦230,000 = ₦140,000.
Therefore, the correct answer is ₦140,000.
Question 38 Report
Answer Details
An example of a cartel is **OPEC**. A cartel is a group of independent entities or organizations that come together to regulate and control the production, pricing, and distribution of a particular product or service. The primary goal of a cartel is to collaborate and reduce competition among its members in order to maintain high prices and increase profits. OPEC stands for the Organization of the Petroleum Exporting Countries. It is an intergovernmental organization consisting of 14 oil-producing countries, primarily located in the Middle East, Africa, and South America. OPEC was formed in 1960 and its members collectively control a significant portion of the world's oil reserves and production. OPEC's main objective is to coordinate and control the production and pricing of oil to ensure stability in global oil markets and maximize their revenues. The member countries agree on production quotas to limit the amount of oil they produce, with the aim of balancing supply and demand and maintaining stable oil prices. By collaborating and acting as a collective force, OPEC members are able to exert influence and have a significant impact on global oil prices. This allows them to maintain higher prices and avoid the downward pressure of excessive competition. However, this control over the oil market has both positive and negative consequences for both the member countries and the global economy. In summary, OPEC is an example of a cartel as it is a group of oil-producing countries that collaborate to control the production and pricing of oil, with the aim of maintaining high prices and increasing profits.
Question 39 Report
The document that explains the types of shares available for sale to the public is
Answer Details
The document that explains the types of shares available for sale to the public is called a prospectus.
A prospectus is a document that provides detailed information about a company and its offering of shares to the public. It is a legal requirement for companies to provide a prospectus to potential investors before they can buy shares.
The prospectus contains important information such as the company's history, financial statements, business strategy, management team, and details about the types of shares being offered. It also outlines the risks associated with investing in the company and any legal or regulatory requirements. Overall, the prospectus serves as a comprehensive guide for investors to make informed decisions about whether to buy shares and understand the nature of the investment.
It helps potential investors understand the company's operations and financial health, allowing them to evaluate the potential risks and rewards associated with investing in the company.
Question 40 Report
Factors considered when setting up a retail business is one of the following
Answer Details
The factors are: capital, pricing policy, source of supply, type of goods, terms of trade, experience, advertising, location of the business.
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