JAMB UTME - Commerce - 2024

Maelezo ya Majibu

The marketing mix is commonly referred to as the "4 Ps", which are key elements involved in executing a marketing strategy effectively. These elements are:

• Product: Goods or services offered by a business to its customers.
• Price: The amount of money customers pay to acquire the product or service.
• Place: The distribution channels and locations used to reach customers and deliver the product or service.
• Promotion: The activities undertaken to make the product known to customers, such as advertising and sales tactics.

Unlike the "4 Ps," personnel is not traditionally considered a part of the marketing mix. While having skilled and well-trained staff is crucial for customer service and operations, it is not one of the main components in the traditional marketing mix. Thus, among the options provided, personnel is NOT part of the marketing mix.

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The advertising medium you are referring to is neon signs. Neon signs are a type of advertising and signage that use electrified, glowing tubes or bulbs that contain neon gas. When an electric current is passed through the gas, it emits light, creating a bright and eye-catching display. Neon signs are popular because they are highly visible at night and can be customized in various shapes, sizes, and colors. They are often used for attracting attention to businesses or special promotions.

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The Nigeria Enterprises Promotion Decree was a significant legislative action aimed at altering the structure of ownership in the Nigerian economy. The primary objective of this decree was to achieve indigenization of the Nigerian economy. This means that the decree was designed to increase Nigerian participation and ownership in various businesses and enterprises operating within the country.

Indigenization is a policy whereby a nation seeks to transfer ownership and control of foreign or expatriate-owned assets to its indigenous people. This was done by setting quotas or limits on foreign participation in certain sectors, thereby reserving those sectors for Nigerians. The goal was to promote local entrepreneurship, boost economic growth, and reduce foreign dominance in the economy.

While nationalization involves taking private assets into public ownership, and privatization is about transferring public sector enterprises into private hands, the Nigeria Enterprises Promotion Decree primarily focused on indigenizing the economy by empowering Nigerian citizens and businesses to own and control economic activities in the country.

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Working capital is a financial metric that represents the difference between a company's current assets and current liabilities. It is used to assess a company's short-term liquidity and operational efficiency. In calculating working capital, we focus on the **current assets**, which are assets that are expected to be converted into cash or used up within one year.

Among the options provided:

• Furniture and fittings: These are considered **fixed assets** or **non-current assets** because they are used over a long period and are not expected to be converted into cash within a year.
• Stock of raw material: This is a **current asset** because it is expected to be used or sold in the production process within a short period, typically less than a year. Thus, it is part of the calculation of working capital.
• Machinery: Similar to furniture and fittings, machinery is a **fixed asset** as it is used over many years and not sold or consumed within the short term.
• Office equipment: Like furniture and fittings, office equipment is also considered a **fixed asset** for similar reasons.

Therefore, the **stock of raw material** is used in calculating working capital because it is a **current asset**. Working capital is calculated using the formula:

Working Capital = Current Assets - Current Liabilities

In this formula, **current assets** would include items such as stocks of raw material, cash, accounts receivable, etc. As a result, stock of raw material is relevant for determining a company's ability to meet its short-term obligations and manage day-to-day operations.

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A ship that does not have a fixed schedule and travels wherever it can find cargoes to carry is known as a tramp ship.

Here's why it is called a tramp ship:

Tramp ships operate differently from other types of vessels, such as liners or ferry boats. They do not follow a set route or schedule. Instead, they are flexible and can go to any port where there is cargo to be transported. This means that their operations are based on demand rather than a predetermined timetable.

To put it simply, a tramp ship is like a freelance vessel that looks for cargo opportunities and travels based on where the work is, rather than sticking to a specific route or timeline. This provides a degree of freedom and responsiveness to market demands that fixed-schedule ships, like liners, do not have.

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The aid to trade that enables a producer and consumer to transact business without physical contact is known as communication.

To understand why, consider the following: Communication is a process that involves the exchange of messages, ideas, and information. With modern technology, such as telephones, emails, and the internet, communication allows people from various locations to interact and conduct business seamlessly. This eliminates the necessity for face-to-face meetings.

For example, a consumer can order a product online and communicate with the seller via chat or email. Similarly, a producer can advertise a product to a global audience through digital platforms without any need for physical presence. These exchanges are facilitated primarily by effective communication.

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When shares are quoted on a stock exchange, it signifies the price at which the stock is available for purchase. The problem provides two prices regarding the shares of ABC Plc:

• #0.75K - This is the par value of each share. The par value is a nominal or face value of a share when it is initially issued. It is the minimum price that the company has set to start with.
• #1.25K - This is the price per share at which these shares were sold in the market. When the selling price is higher than the par value, it means the shares were sold at a premium.

In this scenario, since the selling price (#1.25K) is higher than the par value (#0.75K), the shares were sold at a premium. Therefore, the stocks of ABC Plc were sold for more than their face value, which indicates that investors were willing to pay more than the nominal value for those shares, typically due to the company's perceived potential or existing market demand.

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When a potential buyer sends a seller a **letter of inquiry**, they are typically asking for information regarding the availability, price, and terms of products or services. In reply to this inquiry, a seller typically sends a **quotation**.

Here is why a **quotation** is the appropriate response:

• Quotation: This is a formal document provided by the seller in response to an inquiry, detailing the price and terms under which goods or services will be supplied. A quotation includes essential information about the price of products, delivery conditions, discount policies, validity period of the offer, and any other relevant details. It serves as a basis for negotiation and is used by buyers to make purchasing decisions.


• Credit Note: This is issued by the seller to the buyer, often used to rectify a post-purchase issue such as an overcharge or a returned item. It is not used to respond to an inquiry.


• Debit Note: This is similar to an invoice and is issued by a buyer to the seller to request a credit note. It indicates that the buyer owes the seller, but like a credit note, it is not used to respond to an inquiry.


• Delivery Note: This accompanies a shipment of goods and provides details about the delivered products. It confirms what was sent or received, but it is not used in response to an inquiry.

In conclusion, a seller sends a quotation in response to a letter of inquiry because it addresses the buyer's questions about pricing and other terms related to potential products or services they might purchase.

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Warehouses that are generally found near a port are known as bonded warehouses.

Bonded warehouses are storage facilities where imported goods are stored until the customs duties are paid.

Key reasons for their location near a port include:

• Proximity to customs facilities: Being near a port, bonded warehouses have easy access to customs offices, facilitating quicker processing and clearance of goods.
• Efficient transport: Ports serve as major hubs for transportation. Goods arriving by sea can be quickly transferred to a nearby warehouse, minimizing delays and reducing transportation costs.
• Duty deferment: Goods stored in a bonded warehouse do not require immediate payment of import duty. Importers can defer payment until the goods are released for sale or use.

Therefore, locating these warehouses near ports helps streamline international trade processes and enhances logistics efficiency.

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In the context of a public limited company, a prospectus refers to a formal document that is issued by the company to provide essential information to potential investors. It serves as an invitation to the public to buy shares in the company.

The main purpose of the prospectus is to help potential investors make informed decisions about whether or not to invest in the company's shares. It typically contains details such as:

• The nature of the business and its operations.
• The types of shares being offered and their respective terms.
• Financial statements and future business plans.
• Information about the company's management and governance.
• The risks associated with investing in the company.

The prospectus is a crucial document because it ensures transparency and allows investors to assess the potential risks and rewards involved in purchasing shares from the company.

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The correct option that is NOT a government legislation to protect the consumer is Privatization and Commercialization.

Let me explain this in a simple way:

• Foods and Drugs: These legislations are meant to ensure that food and drug products sold to the public are safe, properly labeled, and effective. They protect consumers from harmful substances and misleading claims.
• Weight and Measure: This type of legislation ensures that products are weighed and measured accurately at the point of sale. It protects consumers from being cheated in terms of quantity and pricing.
• Trade Description: This legislation prevents businesses from providing false or misleading information about products and services. It protects consumers by ensuring that they know exactly what they are buying.

However:

• Privatization and Commercialization: These terms refer to the process through which government-owned businesses and services are transferred to the private sector. This is more about economic policy and restructuring how services are provided, rather than directly protecting consumers. It focuses on improving efficiency and reducing government burden but does not primarily aim to protect consumer rights.

Therefore, while the first three directly aim to protect consumers, Privatization and Commercialization are more about economic management and do not serve as consumer protection legislation.

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The instruction given to an agent abroad restricting him to buy from a specific or named manufacturer is known as a closed indent.

Let me explain it in a straightforward way:

1. **Indent:** This is a purchase order sent by a buyer to an agent or supplier to buy goods on their behalf. It contains details about the product, quantity, and specifications.

2. **Closed Indent:** This type of indent indicates that the buyer has decided to purchase products from a particular, specified manufacturer or supplier. The agent must comply with this restriction while procuring the goods. The buyer has already made a choice, and the agent is simply carrying out their instructions.

In contrast, an **open indent** allows the agent to choose the manufacturer or supplier from whom to buy the goods, as long as the buyer’s requirements are met. So, the key difference is the level of freedom or restriction given to the agent in selecting the supplier.

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The document sent by suppliers of goods to a prospective buyer, informing him of what to pay if he buys the goods is called an invoice. An invoice is a commercial document that itemizes all the products or services provided by the seller, as well as the prices. It typically includes important details such as the list of goods, quantities, agreed-upon prices, any discounts or taxes, and the total cost that the buyer needs to pay.

Invoices serve multiple purposes: they act as a request for payment, provide a clear record of a sale, and can be used for accounting and taxation purposes. By receiving an invoice, the prospective buyer is informed of the amount they need to pay if they decide to purchase the goods.

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A multiple shop, also known as a chain store, is a type of retail business that consists of several locations all managed under the same brand or company. The primary characteristic of a multiple shop is that all the stores offer similar goods. Each store in the chain typically carries the same range of products, regardless of its location. This uniformity assures customers that they will find the same items in each store of the chain, leading to a consistent shopping experience.

For example, if a chain store specializes in clothing, all its branches will sell the same clothing lines, maintaining consistency in style, quality, and price. This is true for other types of goods such as electronics, groceries, and more.

Therefore, among the options given, it is most accurate to say that a multiple shop sells similar goods. This means that whether you visit a store in the chain in one city or another, you can expect to find the same types of products.

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The term **credit instrument** refers to a written document that provides evidence of a borrower's promise to repay a debt. These instruments allow the transfer of money or credit between parties. Each of the options given is assessed below:

Bill of Exchange: This is a written order used primarily in international trade that binds one party to pay a fixed sum of money to another party at a predetermined future date. It is a credit instrument as it facilitates deferred payments.

Bank Notes: These are the paper currency issued by a central bank that people can use to pay for goods and services. They are not credit instruments because they represent actual money rather than a promise to pay in the future.

Cheques: A cheque is a written order directing a bank to pay money as instructed from the account holder's balance. It is a credit instrument as it allows the holder to defer payment until it is presented at the bank.

Bill of Lading: This is a document issued by a carrier to acknowledge receipt of cargo for shipment. It is mainly used to transfer goods and does not involve deferred payments or evidence of a debt, thus it is not a credit instrument.

Therefore, among the given options, the Bill of Lading is NOT a credit instrument as it is primarily related to the shipment and receipt of goods, and not to financial credit or promises of payment.

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The document that provides complete information about the goods sold is the invoice.

An invoice is a detailed statement provided by the seller to the buyer containing important information regarding the sale of goods. Here’s why it is deemed so comprehensive:

• Itemized List: It includes an itemized list of the goods sold, along with descriptions, quantities, and unit prices.
• Total Amount: It shows the total amount payable by the buyer, including applicable taxes and discounts.
• Terms of Sale: It outlines the terms and conditions of the sale, such as payment due date and methods of payment.
• Identification Details: It contains essential information like the invoice number and date, which helps in tracking and reference.
• Seller and Buyer Information: It includes the names, addresses, and contact details of both the seller and the buyer.

In contrast, the order form is a document generated by the buyer to request goods but doesn't contain the details of the actual sale. A delivery note accompanies goods to confirm delivery but lacks pricing and terms. Lastly, a bill of exchange is a financial document used for payment agreements, not for detailing goods sold.

Therefore, the invoice is the key document providing complete information about the goods sold.

Maelezo ya Majibu

Branding is the assigning of trademarks to goods for the purpose of identification by the public. This means that branding helps consumers easily recognize and differentiate a particular product from other similar products in the market. Trademarks can be logos, symbols, names, or a combination of these elements that represent a brand. By having a unique and consistent brand identity, companies ensure that their products are easily identifiable by consumers, facilitating customer trust and loyalty. In essence, branding provides a way for the public to identify and remember the products of a specific manufacturer or company.

Maelezo ya Majibu

Advertising primarily focuses on promoting products or services to potential customers. Here are typical aims of advertising:

• Inspiring public confidence in the goods: Advertising aims to build trust in a product, showing potential customers that it is reliable and worth purchasing.
• Arousing the interest of the public: It creates interest by informing people about the features and benefits of a product, making them curious or eager to try it.
• Attracting the attention of the public: Advertising uses various techniques to capture the audience's attention, making them aware of the product or service.

On the other hand, reducing the cost of the goods produced is NOT an aim of advertising. This is more associated with production processes and cost management strategies within a company. Advertising itself often incurs costs and does not directly reduce production expenses but is intended to increase sales and generate revenue, which can offset costs over time.

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In an organization, welfare services are those that aim to improve the well-being and satisfaction of employees, providing them with a supportive and healthy working environment. Welfare services often include amenities or benefits that contribute directly to employees' health, happiness, and overall work-life balance.

Let's examine each option:

• Medical Facilities: These are services provided to ensure the health and medical safety of employees. They include health check-ups, medical insurance, and on-site medical care. These are typical examples of welfare services.
• Transportation: Offering transportation facilities or allowances helps employees commute to and from work more comfortably and safely. This is also considered a welfare service as it directly influences the employees' convenience and reduces stress related to commuting.
• Recreational Facilities: These are amenities provided to help employees relax and rejuvenate. They can include gymnasiums, sports facilities, or relaxation areas, designed to enhance employees' physical and mental well-being, thus qualifying as welfare services.
• Training: This refers to providing employees with the knowledge and skills required to perform their job roles effectively. While training is crucial for skill development and professional growth, it primarily serves the organization's interest in increasing productivity and effectiveness rather than the personal welfare or comfort of the employees.

Considering the above definitions, training is NOT typically regarded as a welfare service in an organization. Unlike the other options, which focus on employee well-being, training emphasizes enhancing performance and skill sets to benefit organizational goals.

Maelezo ya Majibu

A **partnership** refers to a type of **business structure** where two or more individuals come together to run a business, share in its profits or losses, and have a certain level of responsibility for the business. In a specific form of partnership known as a **"general partnership,"** **all partners have unlimited liability** and **jointly manage the business**. Let me explain these key points clearly:

• Unlimited Liability: In a general partnership, all partners are personally responsible for the business debts and obligations. If the business cannot pay its debts, the partners' personal assets can be used to cover these debts.
• Joint Management: All partners actively participate in the decision-making and day-to-day operations of the business. They contribute to managing the business and enjoy a say in business matters.

Since all partners have **unlimited liability** and together manage the business daily, it suggests that this is a description of a **general partnership**. This is distinct from other types of partnerships, where liability could be limited to the amount each partner invested, or where some partners may not be involved in the management. Therefore, the partnership described is not an "ordinary," "nominal," or "limited" partnership. Instead, it truly encapsulates the essence of a **general partnership**.

Maelezo ya Majibu

In order to determine which of the options does not fit into the group, we should first classify each of them based on their primary nature or sector.

Agriculture involves the cultivation of land and breeding of plants and animals to provide food, fiber, and other products used to sustain and enhance life. It primarily falls under the category of primary industry that deals with the extraction and harnessing of natural resources directly from nature.

Fishing also involves extracting biological resources directly from nature, specifically aquatic life from water bodies. Like agriculture, it is categorized under primary industry and focuses on the direct procurement of resources provided by nature.

Mining is the extraction of minerals or other geological materials from the Earth, and it is considered a part of primary industry as well. It involves the direct extraction of non-renewable resources from nature.

Carpentry, on the other hand, is a skilled trade in which the primary work performed is the cutting, shaping, and installation of building materials during the construction of buildings, ships, timber bridges, etc. Carpentry is considered a part of the secondary industry, which involves manufacturing and processing of raw materials into finished goods or products.

Therefore, Carpentry does not fit into the group because, unlike agriculture, fishing, and mining, it is not a primary industry activity. It belongs to the secondary industry, which focuses on the transformation of raw materials into finished products.

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Departmental stores, supermarkets, and chain stores are examples of large scale retailers. This is because they operate on a much larger scale compared to typical small shops. Here’s why each of these falls under this category:

• Departmental Stores: These are large retail establishments that offer a wide variety of goods organized into different departments. Each department specializes in one category like clothing, electronics, or groceries, allowing customers to find multiple products under one roof. They usually require a significant amount of space and capital, characteristics of large scale operations.


• Supermarkets: These are giant stores that focus primarily on food and other grocery items, but they often sell various household goods as well. With their self-service model and extensive range of products, they require vast spaces and are generally positioned in well-populated areas to cater to a large number of customers. This makes them typical examples of large scale retailing.


• Chain Stores: These are a series of retail outlets that are under the same brand and management. They follow a standardized approach across different locations, ensuring uniform quality and service. Due to their widespread presence and strategic operations, they are categorized as large scale retailers.

In summary, all these stores are structured to cater to a vast number of customers with extensive offerings, significant inventory, and often require substantial investment and infrastructure, which are defining traits of large scale retailers.

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The agent responsible for non-payment of goods bought by the customer he introduced to his principal is called a del-credere agent.

This type of agent provides an additional guarantee or assurance to their principal that customers introduced by them will pay for the goods purchased. If the customer fails to pay, the del-credere agent is liable and must cover the payment to the principal. This arrangement reduces the risk for the principal regarding customer payments.

Here's a simple breakdown:

• A del-credere agent essentially acts not only as a sales intermediary but also takes on the financial risk of ensuring payment collection.
• They commonly receive an additional commission or fee for this extra responsibility.
• The del-credere arrangement is beneficial to the principal as it minimizes the risk of bad debts.
• For the client or customer, there is no change, as their transaction is with the principal; the arrangement mainly affects the agent and the principal.

Maelezo ya Majibu

When the price quoted includes all the costs from the seller's warehouse to the buyer's warehouse, it is referred to as "Franco".

In the context of goods transportation and sales, "Franco" means that the seller is responsible for all the costs associated with delivering the goods to the buyer's specified location. This includes packaging, loading, transportation, and unloading costs. Basically, the buyer does not have to worry about any extra charges that might occur while the goods are being transported. The seller takes care of everything until the goods reach the buyer's destination.

In contrast, terms like "Loco price" and "Carriage paid" have different conditions regarding the division of responsibilities and costs between the buyer and seller. For instance, "Loco price" typically involves the buyer bearing the cost of picking up the goods from the seller's location, while "Carriage paid" implies that the seller pays the carriage charges up to a certain point.

Overall, "Franco" provides a convenient option for buyers who prefer not to handle the logistics of moving goods from the seller to their final destination.

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A holding company is a corporation that owns enough voting shares in another business to control its management and policies. Control is typically established by owning the majority of the voting stock. In most cases, owning over 50% of the voting shares is considered having sufficient control. Thus, a holding company generally holds shares up to 51% or more in another company to exercise control. To further clarify:

• Owning 51% or more allows the holding company to make significant decisions and influence the strategic direction of the company it holds.

Therefore, a holding company usually holds shares up to and typically beyond 51% in another company to ensure they can steer the business according to their interests and policies.

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An allowance given to a customer for making prompt payment is called a cash discount. This is a reduction in the amount due to encourage the customer to pay within a shorter period. Essentially, it serves as an incentive for early payment, improving the cash flow for the seller and rewarding the buyer for settling their debts quickly.

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A person who runs a business on his own account is called a sole trader. This term refers to an individual who owns and operates their business independently, without forming a company or corporation. They are solely responsible for all aspects of the business, including decision-making, profits, and losses.

Here's a simple way to understand this:

Sole: This means "one" or "single," indicating that there is only one person in charge.

Trader: This refers to someone who engages in selling goods or providing services.

Therefore, a sole trader is someone who runs their business independently and takes full responsibility for its operation. They do not have partners or additional directors in the business.

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A bonded warehouse is a secure facility where goods are stored, and duties or taxes are deferred until the goods are removed and sold. These warehouses play a crucial role in international trade.

A bonded warehouse is specifically controlled and supervised by customs authorities. Customs are responsible for the regulation and examination of goods that are imported or possibly exported from the country.

Here is why customs control bonded warehouses:

• Duty Regulation: Customs is in charge of collecting import duties and taxes. By regulating bonded warehouses, customs ensures that these financial obligations are met before goods are released.
• Security and Compliance: Customs ensures that the goods stored in bonded warehouses comply with local and international trade regulations, preventing illegal trade activities.
• Inventory Control: Customs keeps track of stored goods, ensuring that none are lost, swapped, or improperly documented.
• Efficient Trade Facilitation: Customs authorities expedite the clearance process for goods stored in bonded warehouses, reducing delays and enhancing international trade efficiency.

This control by customs is crucial for maintaining transparency and compliance in the import and export of goods, ensuring the appropriate duties are collected and that regulations are respected.

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The type of tax that is paid on goods that are manufactured and consumed within a country is called excise duty.

Excise duty is essentially a tax on the manufacturers of certain goods and products within the country. It is typically levied on goods that are considered either luxurious or harmful if over-consumed, such as cigarettes, alcohol, or fuel. The government imposes this tax to either limit the consumption of these goods, to increase government revenue, or both.

This tax is different from custom duty or income tax. Custom duty is charged on goods that are imported into a country, whereas income tax is charged on individuals' or entities' earnings.

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Banks issue cheque books to customers holding current accounts.

Let me explain why:

A current account is designed for regular transactions. It is ideal for individuals or businesses that need frequent access to their funds. This account allows for multiple daily transactions such as deposits, withdrawals, and transfers.

One primary feature of a current account is the ability to issue cheques. A cheque is a written order to a bank to pay a certain amount of money from one’s account to another person or entity.

Unlike a current account, foreign accounts, deposit accounts, and fixed deposit accounts serve different purposes:

• Foreign accounts: Typically used for operations involving foreign currencies.
• Deposit accounts: Generally include savings accounts, where the primary aim is to save money and earn interest, with limited transaction capabilities.
• Fixed deposit accounts: Involve depositing money for a specific period, where the funds are not intended for frequent access or cheque issuance.

Therefore, banks provide cheque books specifically for current accounts to facilitate regular transactions.

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Under the Hire Purchase System, the transfer of ownership of goods occurs when the buyer completes all the terms of the agreement. Specifically, this means that the ownership is transferred only when the final instalment is paid. Until the final payment is made, the ownership of the goods remains with the seller or the finance company facilitating the hire purchase. This arrangement allows the buyer to use the goods while making payments in instalments, but the buyer does not become the legal owner until they fulfill the entire payment commitment. Therefore, **the final payment is crucial** for the change of ownership, ensuring that all obligations under the agreement are satisfied.

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Marketing is a broad concept that involves various activities to promote and sell products or services. Let's briefly explore each option in relation to marketing:

Packaging: This is a marketing function that involves designing and producing the containers or wrappers for a product. The purpose of packaging is to protect the product, facilitate its storage and transport, and make it appealing to consumers.

Distribution: This function refers to the process of getting the product from the manufacturer to the consumer. It involves activities like transportation, warehousing, and supply chain management, ensuring that the product is available to customers at the right time and place.

Advertising: Advertising is a marketing function that focuses on promoting a product or service through various media channels. The aim is to inform potential customers about a product, persuade them to purchase, and build brand awareness.

Insurance: This is not a marketing function. Insurance is a financial service that provides risk management and protection against potential financial losses. While businesses may use insurance to protect their assets, it is not a function aimed at promoting and selling products or services like the other activities mentioned.

In summary, insurance is not a function of marketing. It stands apart as a service focused on risk management rather than the promotion and sale of products or services.

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The coming together of two or more firms with each of them losing its identity is known as an amalgamation.

An amalgamation occurs when two or more companies combine to form a new entity, and as a result, each of the original companies ceases to exist as an independent entity. The firms essentially merge to create a new organization with a new identity. This is different from other forms such as a holding company where individual companies maintain their identities or a consortium, which is generally a collaboration without the loss of individual identities. It's not similar to a cartel either, as a cartel involves competitors collaborating to set prices or output but still maintaining their distinct identities.

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Pipelines are one of the easiest and most efficient means of transporting petroleum products. Here is why:

1. Continuous Flow: Pipelines allow for a constant and uninterrupted flow of petroleum products from one location to another. This continuity ensures a steady supply and minimizes delays that can occur with other modes of transportation.

2. Cost-Efficient: Over long distances, pipelines are generally more cost-effective than other transportation methods. This is due to lower operating costs and the ability to transport large volumes of product with minimal energy input once the infrastructure is in place.

3. Safety: Pipelines are considered to be a safer option for transporting petroleum products compared to road or rail. They reduce the likelihood of accidents or spills that can occur with vehicles or trains, making them a preferred choice for minimizing environmental impact.

4. Reliability: Unlike air or road transport, pipelines are less affected by weather conditions, traffic, or other disruptions, which makes them a reliable choice for consistent delivery schedules.

5. Low Environmental Impact: While the construction of pipelines can initially impact the environment, their operation creates fewer emissions compared to repeated vehicle trips. This makes pipelines a more environmentally friendly option in the long term.

Overall, due to these advantages, pipelines are often the preferred method for transporting large volumes of petroleum products over long distances in a safe, cost-effective, and reliable manner.

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A bill of exchange that is sold for less than its face value before maturity is said to be discounted.

Here's a simple explanation: A bill of exchange is a written order used in international trade that binds one party to pay a fixed sum of money to another party at a predetermined future date or on demand. When you hold a bill of exchange and decide to sell it before its maturity date, you usually sell it for less than its full value. This is because the buyer is taking on the risk of waiting for the maturity date to receive the full amount, and they are compensated for taking that risk by paying less than the bill's face value.

This process is known as discounting the bill of exchange. The amount you receive in the sale is called the discounted value, while the difference between the face value and the discounted value is known as the discount. Discounting is a common financial practice and allows the holder of the bill to get immediate funds, albeit at a lesser amount than the bill's face value.

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A dealer who buys securities at low prices in anticipation of reselling them at higher prices is called a bull.

Here's a simple explanation:

• Bull: A bull is an investor who expects the prices of securities, such as stocks or bonds, to rise over time. In anticipation of this rise, a bull will purchase these securities at their current lower prices, with the hope of selling them later at higher prices to make a profit. This optimistic approach is often referred to as having a "bullish" outlook towards the market.

Let's contrast this with the other terms mentioned:

• Jobber: Jobber is an old term for a trader who buys and sells securities on their account without dealing directly with the public, primarily for short-term trades.
• Broker: A broker acts as an agent or intermediary between buyers and sellers to facilitate trades, earning a commission for their services rather than buying securities for their profit.
• Bear: A bear, opposite of a bull, is an investor who expects prices to fall and might sell securities at a current high expecting to buy them back at a lower price. This is usually referred to as having a "bearish" outlook.

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Persuasive advertisement is the type that induces consumers to purchase goods they do not need. This form of advertising aims to create a desire in the consumer by appealing to their emotions, beliefs, or aspirations. Instead of providing just information about the product, it focuses on convincing the consumer that they will gain certain benefits or status by owning or using the product. This can be achieved through various techniques such as celebrity endorsements, fear of missing out (FOMO), appealing to trends, or showcasing how the product improves one's lifestyle or social standing. By doing this, consumers are often led to believe that they need the product to achieve happiness, success, or social acceptance, thereby encouraging them to make purchases that were originally unnecessary to them.

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If Obi received a cheque from Mr. Ade and it was stolen, the appropriate course of action would be to inform Mr. Ade to tell his bank to stop payment on the cheque. Here’s why:

1. Informing Mr. Ade: Obi should immediately inform Mr. Ade because the cheque belongs to Mr. Ade and he is the one who can authorize the bank to stop payment. The cheque is drawn from Mr. Ade's account, so his bank is the one that needs to be notified to prevent the cheque from being cashed by an unauthorized party.

2. Stopping Payment: By stopping the payment, Mr. Ade ensures that if someone tries to cash or deposit the stolen cheque, the bank will reject it, thus preventing any unauthorized withdrawal of funds from Mr. Ade's account.

3. Legality and Authorization: Obi cannot directly stop payment with Mr. Ade's bank because he is not the account holder, and the bank will not act on Obi’s request without Mr. Ade's authorization.

4. Request for Replacement: Once Mr. Ade has successfully stopped payment on the stolen cheque, Obi can politely request Mr. Ade for a replacement cheque, assuming the situation is amicable and Mr. Ade is willing to issue another cheque.

In summary, the first step is to inform Mr. Ade so he can take the necessary action with his bank.

Maelezo ya Majibu

A Public Limited Liability Company is owned by shareholders. These are individuals or entities that own shares in the company. Each share represents a portion of ownership, so the more shares an individual or entity owns, the more ownership they have in the company. Shareholders have the right to vote on important company matters, including the election of the board of directors and major company policies.

It is important to note that although the shares of a public limited liability company are available for purchase by the general public on the stock exchange, the term "general public" refers to potential or current investors and does not mean that the general public owns the company. Ownership is exclusively linked to those who buy shares, making them shareholders.

Neither the government nor debenture holders own the company. The government may regulate the company but does not hold ownership unless it has explicitly purchased shares. Debenture holders are lenders to the company, holding debt instruments rather than equity, so they do not have ownership rights. Their relationship with the company is typically based on the repayment of debt with interest, rather than ownership.

Maelezo ya Majibu

To establish an importer's title to goods, the most significant document among the given options is the Bill of Lading.

The Bill of Lading is a legal document issued by a carrier to a shipper. It has multiple roles, including serving as a:

• Receipt for the shipped goods, confirming that the goods are loaded onto a transport vehicle, like a ship.
• Title of document, giving the holder the right to claim ownership of the goods. It functions as a document of title to the goods described in it.
• Contract of carriage that details the terms for transporting the goods from the port of loading to the port of discharge.

The other documents mentioned have different purposes:

• A Cargo Receipt is generally a document acknowledging that the goods have been received. However, it does not serve as a document of title.
• A Way Bill is a non-negotiable document that accompanies goods in transit. It provides information about the shipment, but it is not effective in transferring title.
• An Import License is a governmental document that permits the importation of certain goods into a country. It does not concern ownership or title to the goods themselves.

In summary, the Bill of Lading is the primary document used to establish an importer's title to goods, serving as both an acknowledgment of the shipment and a legal claim to the goods.