JAMB UTME - Commerce - 2024

A holding company is one which holds shares in another company up to

Maelezo ya Majibu

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.

Which of the following can be used to establish an importer's title to goods?

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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.

Which of these is NOT a governments legislation to protect the consumer?

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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.

Which of the following is NOT part of Pre-Sales Service/ice?

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Pre-sales services are the activities and support provided to potential buyers before the actual sale takes place. These services aim to assist customers in making informed purchasing decisions and to facilitate a smooth sales process. They typically include activities such as providing information about the products, answering inquiries, and assisting with product selection. However, granting credit or hire purchase sales facilities is not typically considered a pre-sales service.

The policy designed to accelerate the greater participation of Nigerians in the ownership and management of business enterprises in Nigeria is called

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The policy designed to accelerate the greater participation of Nigerians in the ownership and management of business enterprises in Nigeria is called Indigenization.

Indigenization refers to efforts and policies implemented to transfer ownership and control of enterprises and resources from foreign and non-national entities to the nationals of a country. The aim is to increase the involvement of local citizens in the economy of their country, ensuring that they have a substantial stake in the economic activities.

In the context of Nigeria, the indigenization policy was meant to empower Nigerians by enabling them to own and manage businesses. This was achieved by legally requiring certain levels of Nigerian ownership and participation in various sectors of the economy. Such policies were put in place to reduce foreign control and ensure that the wealth generated within the country contributed to national development and was accessible to the citizens of Nigeria.

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In the context of business-related law, let's examine each of the given areas to identify the one that is generally **not directly linked** to business:

• Agency: This area involves the relationship between an agent and a principal. An agent is authorized to act on behalf of a principal in business transactions, making this area heavily related to business.
• Hire Purchase: This is a form of agreement in which goods are leased with an option to purchase at the end of the leasing period. It is commonly used in business to acquire assets, making it relevant to business law.
• Possession: This refers to the control or ownership of property or goods. While it can be related to business in terms of property ownership, **it is primarily a core concept of property law** rather than business law. Therefore, it is **less directly linked** to business transactions compared to the other concepts.
• Contract: This involves legally binding agreements between two or more parties. Contracts are fundamental to all business transactions, making this area highly relevant to business law.

From this analysis, it is clear that the concept of **possession**, although important in its own right, is generally **not as directly related to business** as the other areas mentioned, which are closely involved in business operations and transactions.

The sum which the insured pays periodically to his insurance company is called

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The sum which the insured pays periodically to his insurance company is called a premium.

Explanation:
When you purchase an insurance policy, whether it's for health, life, car, or any other type of insurance, you agree to pay a certain amount of money at regular intervals to the insurance company. This amount is known as the premium. The premium is the cost you pay to the insurance company so that they will provide you with coverage and financial protection against specified risks.

Insurance companies calculate your premium based on various factors including the type of insurance, the amount of coverage you want, your age, your health (for health or life insurance), and other risk factors. In return for paying your premium, the insurance company promises to cover certain costs or losses as outlined in your policy.

Gross profit can be calculated as

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The calculation of **gross profit** is done by taking the total **sales revenue** and subtracting the **cost of goods sold (COGS)**. Hence, the correct formula to calculate gross profit is:

Gross Profit = Sales - Cost of Goods Sold

Let's break it down for clarity:

• **Sales** refers to the total revenue earned from selling goods or services. It is the income received from customers before any costs are deducted.
• **Cost of Goods Sold (COGS)** represents the direct costs attributable to the production of the goods sold. This includes expenses such as the cost of materials and direct labor involved in producing the goods.

The **gross profit** reflects the company's **profitability** related to its core operations, excluding other expenses such as operating expenses, taxes, and interest.

For example, if a company records total sales of $100,000 and its cost of goods sold is $60,000, the gross profit would be:

Gross Profit = $100,000 - $60,000 = $40,000

The gross profit of $40,000 provides insight into the financial **efficiency** of the company's production and sales processes.

The difference between the higher prices and the lower prices quoted for shares and stocks at the stock exchange is known as

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The difference between the higher prices and the lower prices quoted for shares and stocks at the stock exchange is known as "jobbers turn."

Here's a simple explanation:

In the stock exchange, there are individuals known as jobbers who buy and sell stocks. They do not deal directly with the public but with brokers. Jobbers make a profit from the difference between the price at which they are willing to buy a stock (the lower price) and the price at which they are willing to sell it (the higher price). This difference is referred to as the "jobbers turn."

It's important to note that the jobbers turn is essentially the profit margin for the jobber, earned from trading activities. This is not to be confused with terms like commission or brokerage, which refer to fees charged by brokers for facilitating trades. Interest, on the other hand, is the cost of borrowing money, not related to the pricing of shares and stocks.

Prospectus in relation to a public limited inability company means

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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.

The aid to trade which enables producer and consumer to transact business without physical contact is known as

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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.

A typical example of an event covered by an Assurance Policy is

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An event that is typically covered by an Assurance Policy is death.

Assurance policies are often referred to as life assurance or life insurance. The primary purpose of these policies is to provide a financial safety net for beneficiaries in the event of the policyholder's death.

Life assurance is considered a form of long-term coverage that guarantees a payout when the insured person passes away, as long as the premiums have been paid consistently. This type of policy is different from insurance policies that cover specific events, like accidents or burglary, which are often provided as short-term risk coverages.

Therefore, **death** is the typical event covered by an assurance policy because the primary intent of such policies is to ensure that financial obligations can be met and dependents are taken care of after the policyholder's death.

Ships that pick up cargo from any port and travels anytime are called

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Ships that pick up cargo from any port and travel anytime are known as tramps.

Tramp ships are like the "taxis" of the sea. They do not have a fixed schedule, route, or a fixed rate of charge. Instead, they go where cargo is available, which might mean visiting multiple ports at irregular times. They 'tramp' around, picking up loads wherever and whenever there is a need. This is different from other types of ships, such as liners, which operate on fixed schedules and routes.

Tramp shipping is very flexible and can cater to sudden changes in supply and demand, making it ideal for carrying bulk cargoes, like coal or grain, which might not be available regularly or may need prompt transportation.

The advertising medium which uses electric current in bulbs is referred to as

Maelezo ya Majibu

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.

One of the following does NOT fit into the group.

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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.

An instruction to an agent abroad restricting him to buy from a named manufacturer is known as

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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.

Which of the following is NOT an aim of advertising?

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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.

The association that encourages savings for the benefit of its members is known as

Maelezo ya Majibu

The association that encourages savings for the benefit of its members is known as a Credit and Thrift Co-operative Society.

Let me explain this in simple terms:

• A Credit and Thrift Co-operative Society is a type of organization where members voluntarily come together to save their money on a regular basis.
• The primary purpose of this type of society is to encourage savings among its members. It helps members accumulate their savings in a safe and structured manner.
• These societies also provide members with access to credit or loans. The money saved by the members is used to give loans back to them at low-interest rates, which is beneficial for individuals who may not have easy access to standard banking loans.
• The profits made by the society through lending are typically shared among the members, hence everyone benefits from their collective savings.

In summary, a Credit and Thrift Co-operative Society is all about saving money together as a group and supporting each other financially by providing easy access to loans.

When the price quoted includes all the cost to the actual destination, that is, from the seller's warehouse to the buyer's warehouse. it is called

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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.

Which of the following advertising media preselects its readership through the nature of its content?

Maelezo ya Majibu

The advertising medium that preselects its readership through the nature of its content is the magazine.

Magazines are designed to cater to specific interests and demographics, meaning they often attract readers who are interested in particular topics or subjects. For instance, there are magazines on hobbies like photography, fashion, technology, sports, and many more. Because they focus on specific themes, they naturally draw in an audience that is interested in those areas. Advertisers can use magazines to reach a target audience that aligns with their product or message.

In contrast, other media such as billboards, handbills, and newspapers are generally more broad and do not specifically tailor their content to a particular interest group. For example, newspapers cover a wide range of topics like news, sports, and entertainment, reaching a more general audience. Billboards and handbills aim to capture anyone who happens to see them.

The deliberate throwing of some goods into the sea to prevent the ship from sinking is an example of

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The scenario you described is an example of a general average loss. This term is used in maritime law and insurance. It refers to a situation where part of the cargo or equipment is deliberately sacrificed or damaged to save the rest of the ship and its cargo from imminent danger. In this case, the throwing of some goods into the sea is done to prevent the ship from sinking, which benefits all parties involved. As a result, the losses are shared proportionally among all stakeholders, such as the shipowner and cargo owners. This shared approach to dealing with loss is known as a general average loss.

Which of the following CANNOT be sold through a vending machine?

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When considering what items can be sold through vending machines, **the main factor to consider** is whether the item can fit within the confines of the machine and be dispensed in a simple manner without needing additional services. Let's analyze the options:

• Snacks: Snacks are ideally suited for vending machines because they are typically packaged, non-perishable (at least for a short shelf life), and sized appropriately for machine storage and dispensing.
• Tickets: Tickets can be sold through vending machines. They are small, easy to dispense, and do not require special storage conditions.
• Tea: Tea, in terms of tea bags or packets, can be easily sold through vending machines. However, brewed tea would require special vending machines that handle hot liquids.
• Shoes: Shoes are generally not suitable for traditional vending machines. **The size, weight, and variety of options like different sizes make it challenging to store and dispense shoes efficiently.** Specialized machines might accomplish this, but they are not common.

In conclusion, considering the typical size and function of a regular vending machine, **shoes cannot be sold** effectively through standard vending machines, while snacks, tickets, and tea can be dispensed without significant issues.

Tariff can be defined as a compulsory levy on

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A tariff is a compulsory levy imposed by a government on imported goods only. This means that when products are brought into a country from abroad, a tax or duty is charged by the government on these goods. Tariffs are typically used to protect domestic industries from foreign competition by making imported goods more expensive, encouraging consumers to buy locally produced items. They can also be a source of revenue for the government. By increasing the cost of imports, tariffs influence the prices and choices available to consumers, often making domestic goods more appealing. In summary, tariffs are specifically associated with imports, not exports, foreign exchange earnings, or foreigners working in a particular country.

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The term "caveat emptor" is a Latin phrase which translates to "let the buyer beware." This principle is used primarily in property transactions and essentially means that the buyer assumes the risk of the quality and condition of the item purchased, unless it is covered by a warranty. In simple terms, it emphasizes the responsibility of the purchaser to examine and evaluate what they are buying. It is a warning that the buyer should be cautious and perform any necessary due diligence prior to completing a transaction. Sellers are not obligated to volunteer details about the products or properties they sell unless asked by the buyer or required by law.

An allowance made to a customer for prompt payment is known as

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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.

The breaking down of work into different processes is known as

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The breaking down of work into different processes is known as division of labour. This concept involves splitting a job into a series of smaller tasks, with each task assigned to a different worker or group of workers. By doing this, each worker can focus on what they do best, increasing their efficiency and productivity in that particular task.

Here's a simple way to understand it: Imagine a bakery that makes loaves of bread. Instead of one person doing everything from mixing the ingredients, kneading the dough, baking, and packaging, the work is divided among several people. One person may be responsible for mixing the ingredients, while another focuses on kneading the dough, yet another bakes it, and a final person packages the bread. This makes the entire process faster and more efficient, as each worker becomes proficient in their specific task.

The division of labour allows for a more effective use of skills and resources, leading to higher productivity and often resulting in goods being produced more quickly and for less cost.

The components of a balance of payments account are

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The balance of payments (BOP) is a record of all economic transactions between residents of one country and residents of other countries over a specific period. It is divided into three main components, which are: Current, Capital and Monetary movement (financial) account.

The act of being on one job for expertise is called

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The act of being on one job for expertise is called specialization. Specialization is when an individual, group, or company focuses on a specific task, role, or field to become highly skilled and efficient in that area. For example, a person might specialize in medicine, engineering, or teaching, dedicating their time and effort to gaining deep knowledge and expertise in that particular domain.

Specialization allows individuals to become experts, improving their ability to perform their job effectively and efficiently. It also contributes to overall productivity and quality, as specialized professionals can apply their specific skills to complex tasks or problems, leading to more innovative and precise solutions.

In summary, by focusing on one job or area, individuals can hone their skills and contribute to greater efficiencies and advancements in their field.

Closing stock is also known as

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Closing stock is also known as Ending Inventory. It refers to the amount of inventory or stock that remains unsold at the end of an accounting period. This can include raw materials, work-in-progress, and finished goods. Closing stock is important for financial reporting, as it affects the cost of goods sold and, ultimately, the company's profit. It is calculated by taking into account all the inventory purchases and subtracting the cost of goods that have been sold during the period. To express it simply, closing stock is what is left over after sales have been accounted for.

• The term stock at close can be misleading, as it might imply the price of a stock market asset at the end of a trading day.
• Balance brought forward refers to the balance amount of funds or stock from the previous period brought into the current one, not the ending stock.
• Opening inventory refers to the stock at the beginning of the accounting period, not at the end.
• Stock at beginning is synonymous with opening inventory and is not equivalent to closing stock.

Therefore, the correct and precise term for closing stock is Ending Inventory.

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

Maelezo ya Majibu

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.

Bonded warehouse is controlled and supervised by

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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.

The activities concerned with changing of raw materials into finished products belong to __occupation.

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The activities involved in transforming raw materials into finished products are related to the manufacturing occupation.

This occupation plays a crucial role in the production process as it focuses on converting raw materials, which could be natural resources or partially processed items, into complete, ready-to-use products.

For instance, consider the process of making a wooden table. Manufacturing involves taking raw wood, cutting, shaping, sanding, assembling, and finally finishing it into a table that is ready for consumers to use.

Manufacturing can take place in various industrial settings, such as factories or plants, where machinery and labor transform inputs into outputs on a large scale.

This is distinct from other types of occupations like:

• Commercial: This involves trading, buying, or selling goods and services but does not involve the creation or transformation of goods.
• Extractive: This refers to the extraction of natural resources from the earth, such as mining or fishing.
• Constructive: This is related to activities that involve building structures, such as construction work.

In summary, manufacturing is the occupation responsible for changing raw materials into finished products, utilizing both technical skills and industrial processes.

The Nigeria Enterprises promotion Decree brought about policy

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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.

Transfer of ownership of goods sold under Hire Purchase System takes place when

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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.

The term "consumer sovereignty" means that the consumer is a

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The term "consumer sovereignty" indicates that the consumer is considered a king in the market. This concept emphasizes the power and freedom consumers have to influence the goods and services that are produced in a market economy. Essentially, businesses strive to fulfill the desires and needs of consumers because their satisfaction and demand determine what should be produced. In this role, the consumer wields the power to make decisions based on preferences, effectively guiding the market dynamics. Companies that understand their consumers well and meet their needs are more likely to succeed.

One of the easiest means of transporting petroleum product is by

Maelezo ya Majibu

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.

Which of the following warehouse is generally found near a port?

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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.

An agent held responsible for non-payment of goods bought by the customer he introduced to his principal is called agent

Maelezo ya Majibu

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.

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In the event of winding up, a company's assets are used to settle its debts and obligations in a specific order of priority. Understanding who gets paid last among the given options involves recognizing the hierarchy of claims. Here's a comprehensive explanation:

1. Debenture holders: Debenture holders are considered creditors of the company. They have a debt claim on the assets of the company. As creditors, debenture holders are paid before any shareholders.

2. Preference Shareholders: Preference shareholders have preferential rights over the assets of the company compared to ordinary shareholders during liquidation. This means they are paid before ordinary shareholders but after all creditors, including debenture holders.

3. Cumulative Preference Shareholders: Similar to preference shareholders, cumulative preference shareholders also have preferential rights over ordinary shareholders. Furthermore, if any preference dividend was missed in previous years, cumulative preference shareholders have the right to receive these unpaid dividends before ordinary shareholders are paid.

4. Ordinary Shareholders: Ordinary shareholders are the last to receive anything from the distribution of a company's assets. This is because they are the owners of the company and bear the most risk. If any assets remain after all debts, liabilities, and preferential claims are settled, this residual is distributed among ordinary shareholders.

In conclusion, **ordinary shareholders** are paid last in the event of a company's winding up. This hierarchy reflects the risk-reward principle where ordinary shareholders take the highest risk but also have the potential for the highest reward if the company performs well.

A multiple shop has many stores which sell

Maelezo ya Majibu

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.