JAMB UTME - Commerce - 1998

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A minor is not permitted to enter into a valid contract because he/she is considered young in the eye of the law. The law recognizes that minors lack the necessary maturity and judgment to fully understand the nature and consequences of the contracts they enter into. As a result, the law deems contracts entered into by minors to be voidable, meaning that they can be legally invalidated or canceled at the option of the minor. Since minors are not considered capable of entering into binding agreements, they cannot be held legally responsible for fulfilling the terms of a contract. This means that they cannot be sued for breach of contract if they fail to perform their obligations. Overall, the legal doctrine of infancy exists to protect minors from entering into contracts that they may not fully understand or that may be disadvantageous to them.

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The principle of indemnity in insurance means that an insured person or firm can claim for the actual amount of the loss suffered due to an insured event, subject to the limit of the sum insured. In other words, the insurance company is obligated to pay the amount that will restore the insured party to the same financial position they were in before the loss occurred, and not more than that. Therefore, the insured person or firm can claim for the damage or loss suffered, and the insurance company will pay out a sum equal to the amount of the loss suffered, up to the limit of the sum insured. It is important to note that the principle of indemnity applies only to the actual loss or damage suffered, and not to any profit or loss of future business.

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Personnel activities that promote the general image of an organization are part of public relations. Public relations refer to the process of building and maintaining positive relationships between a company and its various stakeholders, including customers, employees, investors, and the public at large. This involves a range of activities, such as creating and distributing press releases, organizing events and sponsorships, managing social media and online presence, and responding to inquiries and feedback from the public. Through these efforts, an organization can improve its reputation and credibility, which can lead to increased trust, loyalty, and support from its stakeholders.

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To calculate the percentage of gross profit on sales, we need to first find the gross profit. Gross profit is the difference between the turnover and the cost of goods sold. Therefore, Gross Profit = Turnover - Cost of goods sold Gross Profit = N15,000 - N10,000 Gross Profit = N5,000 Now, to calculate the percentage of gross profit on sales, we divide the gross profit by the turnover and multiply by 100. Therefore, Percentage of Gross Profit on Sales = (Gross Profit / Turnover) x 100 Percentage of Gross Profit on Sales = (N5,000 / N15,000) x 100 Percentage of Gross Profit on Sales = 33.3% Therefore, the correct answer is the second option, 33.3%.

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In a common market, member countries agree to establish common barriers against countries outside the market. A common market is an agreement between two or more countries to establish a free trade area, where goods, services, and capital can move freely across borders. In a common market, member countries eliminate tariffs and other trade barriers on goods and services traded between them. However, member countries also establish common barriers against countries outside the market to protect their economies from unfair competition. For example, they may impose tariffs, quotas, or other trade barriers on imports from non-member countries. In addition, member countries in a common market may negotiate with countries outside the market for favourable terms of trade. By negotiating as a bloc, they can have more leverage in trade negotiations and secure better deals for their member countries. Therefore, the correct option is negotiate with countries outside the market for favourable terms of trade.

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The underlined principle in the marketing of goods is that firms should be consumer-oriented. This means that businesses should prioritize understanding and meeting the needs and wants of their target customers. By doing so, they can develop products and services that are tailored to their customers' preferences and market them effectively. This principle also involves building a relationship of trust with customers and ensuring customer satisfaction with the products and services offered. By being consumer-oriented, businesses can establish a strong brand reputation, generate customer loyalty, and ultimately increase sales and profitability.

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The example of a consumer protection agency is the Federal Environmental Protection Agency (FEPA). This agency is responsible for regulating and enforcing laws that protect the environment and the health of the public in Nigeria. FEPA ensures that companies comply with environmental standards and regulations by conducting regular inspections, monitoring activities that may harm the environment, and enforcing penalties for violations. By doing so, FEPA helps to ensure that companies are not endangering the health and safety of consumers and the general public through their activities. In summary, while the Nigeria Bar Association and Nigeria Medical Association are professional associations for lawyers and doctors respectively, and the Manufacturers Association of Nigeria represents the interests of manufacturers, FEPA is a government agency responsible for protecting the environment and consumers from harmful practices.

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Services which are of absolute monopoly can best be proved by public enterprises. A public enterprise is a government-owned or controlled entity that provides goods and services to the public. They can be considered as monopolies because they have exclusive control over the production and distribution of certain goods or services. Public enterprises are typically created to provide essential goods and services that are considered too important to be left to the market forces alone. Examples of public enterprises include public utilities such as electricity, gas, and water supply companies, as well as public transport companies. These services are often considered natural monopolies because they require significant infrastructure and resources, and it is not feasible for multiple companies to compete effectively in the same market. In a private company or a limited liability company, ownership and control of the company rest with the shareholders, and the company operates in a competitive market. A public company is similar to a private company, but its shares are publicly traded, which means that anyone can buy and sell shares in the company. While public and private companies can also operate in markets with monopolistic features, they are not necessarily absolute monopolies like public enterprises.

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The primary objective of a business organization is to work towards making returns. This means that businesses exist to make a profit for their owners or shareholders. The main focus of a business is to generate revenue through the production and sale of goods or services. This objective is achieved through effective management of resources, minimizing costs, and maximizing revenue. While a business may have other goals such as social responsibility, community involvement, or environmental sustainability, the ultimate aim is to make a profit. Making returns allows a business to grow, invest in new products or services, create jobs, and contribute to the economy.

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The two main categories under which marine losses fall into are "total loss" and "partial loss." Total loss refers to a situation where a vessel is completely destroyed or lost beyond recovery, or when the cost of repairs exceeds the insured value of the vessel. In such cases, the insurer pays the full insured value of the vessel to the policyholder. Partial loss, on the other hand, refers to a situation where the vessel sustains damage that can be repaired or where some of the cargo is lost or damaged during transit. In such cases, the insurer pays a proportionate amount of the insured value, depending on the extent of the damage or loss. Therefore, the third option, "total loss and partial loss," is the correct answer.

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Under normal circumstances, a business enterprise can be ideally structured by "product, function, or territories." Structuring a business enterprise involves dividing it into different departments or units that work together to achieve the company's objectives. The most common ways to structure a business are by product, function, or territories. Structuring by product involves organizing the company's activities around specific product lines, while structuring by function involves grouping activities based on their function or department, such as sales, marketing, production, finance, and human resources. Structuring by territories involves organizing the company's activities based on geographic locations or markets served. Each of these structures has its own advantages and disadvantages, and the ideal structure for a business will depend on its goals, size, industry, and other factors. However, under normal circumstances, structuring by product, function, or territories provides a clear and efficient way to organize a business and achieve its objectives. Therefore, the correct answer is the first option, "by product, function, or territories."

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An example of a conglomerate is United Africa Company Nigeria Plc. A conglomerate is a corporation that consists of multiple subsidiary companies operating in diverse industries and sectors. These subsidiary companies may be related or unrelated to each other. United Africa Company Nigeria Plc, for instance, is a conglomerate that operates in various sectors such as manufacturing, logistics, and real estate. Some of its subsidiary companies include UAC Foods, UACN Property Development Company, and MDS Logistics. In contrast, the other options provided are not examples of conglomerates. National Electric Power Authority is a government-owned power company, the Nigeria Railway Corporation is a state-owned railway company, and First Bank of Nigeria Plc is a financial institution. While these companies may have multiple branches or departments, they do not operate in diverse industries and sectors like a conglomerate.

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NIPOST facilitates commerce through cash on delivery, recorded delivery, and express services. However, it does not provide a free on board service. Cash on delivery service allows the sender to receive payment for the goods being sent directly from the recipient upon delivery. This service enables customers to pay only after they receive their goods, which can be beneficial for both the buyer and the seller. Recorded delivery service is a method of sending goods that require a signature on delivery. It ensures that the item is delivered to the right person and also provides proof of delivery, which can be helpful in resolving disputes. Express service provides quick and reliable delivery of items within a specified time frame. This service is often used for urgent and time-sensitive shipments. Free on board service, on the other hand, is a trade term used in international commerce, which means that the seller is responsible for the goods until they are loaded onto the ship. This service is not provided by NIPOST.

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When a bank is in distress, its assets, liabilities, and general management can be taken over by an organization that has the capacity to manage them effectively. In Nigeria, the organization responsible for this is the Nigeria Deposit Insurance Corporation (NDIC). The NDIC is a government agency that provides insurance coverage to depositors of banks and other financial institutions in Nigeria. In the event of a bank failure, the NDIC steps in to protect depositors and ensure that the bank's assets and liabilities are managed properly. The International Bank for Reconstruction and Development (IBRD) is not involved in the takeover of distressed banks in Nigeria. It is a specialized agency of the World Bank Group that provides financial and technical assistance to developing countries for the purpose of economic development. The Nigeria Industrial Development Bank (NIDB) and Nigeria Bank for Commerce and Industry (NBCI) are development finance institutions in Nigeria that provide long-term financing to industrial and commercial projects. However, they do not have the mandate to take over distressed banks. In summary, the Nigeria Deposit Insurance Corporation (NDIC) is the organization responsible for taking over the assets, liabilities, and general management of a distressed bank in Nigeria.

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A disadvantage of nationalization is that it may retard the development of local skills and technology. This is because when the government takes control of an industry, it may not have the same incentives as private companies to invest in research and development or to attract and retain talented employees. In addition, government-run industries may be less innovative and dynamic than privately owned ones, which can limit the growth of new technologies and industries in the long run. This can lead to a less competitive and less diversified economy, which may ultimately be harmful to consumers and workers.

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The most essential element of a product is its utility. Utility refers to the product's ability to satisfy the needs and wants of its users or consumers. A product that provides high utility is one that effectively addresses a problem or fulfills a desire. This can include meeting basic needs such as food, clothing, or shelter, or more complex needs such as entertainment or self-expression. The utility of a product is what drives demand and determines its value to consumers. While price, design, and color are all important factors that can influence a consumer's decision to purchase a product, they are secondary to utility. A product that is priced attractively, has an appealing design, or comes in a preferred color may be more likely to sell, but if it doesn't provide utility, it will not sustain demand in the long run. Therefore, the utility of a product is the most essential element for its success.

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The reduction of import duties among the member countries of ECOWAS is an example of preferential tariff. A preferential tariff is a special tariff rate that is lower than the regular rate applied to imported goods from countries that are not in a preferential trade agreement. In this case, ECOWAS (Economic Community of West African States) member countries have agreed to reduce import duties on goods traded within the community. This creates a preferential tariff for goods imported from other ECOWAS member countries, making them more competitive compared to goods imported from countries outside the community. The aim of the preferential tariff is to promote regional trade and economic integration among member countries. It encourages member countries to specialize in the production of goods in which they have a comparative advantage, leading to increased efficiency and lower costs. Overall, the reduction of import duties among the member countries of ECOWAS is a form of preferential tariff that facilitates regional trade and cooperation.

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The situation described is an example of the termination of a contract by frustration. Frustration of a contract occurs when an unforeseen event or circumstance arises that makes it impossible to fulfill the terms of the contract. In this case, the theft of the tomatoes made it impossible for Gambo to deliver them to Sabo, even though he had not breached the contract or defaulted on any of the terms. When a contract is frustrated, the parties are typically relieved of their obligations under the contract. This means that neither party can be held liable for non-performance or breach of contract, and any payments or deposits made in advance may be refunded. It's important to note that frustration of a contract is not the same as breach of contract or default. In a breach of contract scenario, one party fails to fulfill their obligations under the contract, while in frustration, an unforeseen event makes it impossible for the parties to perform as agreed.

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The type of securities that the stock exchange deals with are stocks, shares, bonds, and warrants. Stocks or shares are units of ownership in a company, and owning them means you own a portion of that company. Bonds, on the other hand, are loans made by investors to companies or governments. When a company or government issues bonds, they promise to pay back the money with interest after a specified period of time. Warrants are a type of financial contract that give the holder the right, but not the obligation, to buy or sell a specific asset at a specific price within a certain time frame. Warrants are often issued by companies as a way to raise money, and they can be traded on the stock exchange. Overall, the stock exchange is a marketplace where investors can buy and sell these different types of securities, allowing companies and governments to raise funds and investors to earn a return on their investments.

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Inventory control is an aspect of materials management. Materials management refers to the planning, procurement, storage, and control of materials needed for production or service delivery. Inventory control is a key part of materials management and involves managing the stock of goods held by a business. It includes tracking inventory levels, ordering new supplies when necessary, and making sure that inventory is managed efficiently to minimize waste and optimize costs. Effective inventory control is essential for businesses to operate efficiently and meet customer demand. By managing inventory effectively, businesses can reduce costs, increase productivity, and improve customer service. In addition to materials management, inventory control is also closely linked to other aspects of operations management, such as production planning and control, quality control, and supply chain management.

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Extractive industries may also be denominated as primary industries. Primary industries are those that extract or harvest natural resources from the earth, such as mining, forestry, agriculture, and fishing. Extractive industries are a subset of primary industries that specifically involve the extraction of non-renewable resources, such as oil, gas, and minerals, from the earth. In extractive industries, companies extract raw materials from the earth and then process and refine them into products that can be sold and used in various industries. These industries are often characterized by large-scale operations and significant environmental impacts, as the extraction and processing of natural resources can have a significant impact on the surrounding environment and communities. Overall, extractive industries are an important part of the global economy, as they provide the raw materials necessary for many other industries to function. However, they also face significant challenges in terms of sustainability, environmental impact, and social responsibility.

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Based on the information provided, initially, Obi Agricultural Venture appears to be a sole proprietorship, as Mr. Obi makes all the decisions and takes all the profits. However, after pooling their resources together with Alhaji Musa and inviting Mr. Abayomi to join, the business is then registered as Obi, Musa and Abayomi's Agricultural Ventures, which indicates that it is now a general partnership. A general partnership is a business structure in which two or more individuals own and operate the business together, sharing the profits and losses equally. Each partner is also personally liable for the debts and obligations of the partnership. It is worth noting that Mr. Abayomi's condition of limited liability for his investment suggests that the business may have been registered as a limited partnership instead. A limited partnership is similar to a general partnership but allows for some partners to have limited liability for the debts and obligations of the partnership, while others have unlimited liability. However, based on the information provided, it is not entirely clear whether the business was indeed registered as a limited partnership or a general partnership.

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A machine which enables sales without the physical presence of a sales attendant is a vending machine. A vending machine is an automated machine that dispenses products such as snacks, beverages, cigarettes, lottery tickets, and other consumer goods. These machines operate by inserting a coin, bill, or card into the machine, which then dispenses the selected item. Vending machines are commonly found in public places such as schools, offices, airports, train stations, and shopping centers. They provide customers with convenient access to products and allow businesses to generate sales 24 hours a day without the need for a sales attendant. Vending machines have become increasingly sophisticated and can now offer a wide range of products, including fresh food and even high-end electronics. Overall, vending machines are a popular and effective way for businesses to sell products in a variety of settings.

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The sequence that can best fit into the structure above is: Material → production → product The structure suggests that there is an external environment, an internal environment, and then another external environment. In this case, the material represents the external environment, as it is the raw materials or resources that the company uses. Production represents the internal environment, as it is the process of turning those raw materials into finished products. Finally, the product represents the external environment again, as it is what the company offers to the market. The other sequences do not fit as well into the structure because they do not follow the flow from external to internal to external again, or because they do not represent the key elements of the business environment (such as materials, production, and products).

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The oral presentation of a conversation with one or more prospective buyers for the purpose of making sales is called personal selling. Personal selling is a form of marketing where a sales representative engages in direct communication with potential customers in order to persuade them to purchase a product or service. This can take the form of a face-to-face meeting, phone call, or video conference. The goal of personal selling is to build a relationship with the customer and tailor the sales pitch to their specific needs and interests. This can involve providing information about the product, demonstrating how it works, and addressing any concerns or objections the customer may have. Personal selling is a key component of many businesses' sales strategies, particularly those selling high-value or complex products, and can be an effective way to generate sales and build customer loyalty.

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The organization responsible for managing and promoting local and international trade fairs is the Chambers of Commerce. They play a vital role in bringing businesses together to showcase their products and services, network with potential partners, and create business opportunities. Chambers of Commerce are present in many countries and are usually composed of representatives from various industries and business sectors. Their aim is to support and promote the growth of businesses in their respective regions by providing a platform for business owners to meet and interact with each other, and to connect with potential customers and suppliers.