JAMB UTME - Commerce - 2023

Maelezo ya Majibu

The Nigerian Stock Exchange consists of the primary and secondary markets. The primary market is where new securities, such as stocks and bonds, are issued for the first time. This is also known as the initial public offering (IPO) market, where companies raise capital by selling their shares to the public. On the other hand, the secondary market is where previously issued securities are bought and sold among investors. This is where individuals and institutions trade these securities after they have been issued in the primary market. The secondary market is also known as the stock market or the equity market. Therefore, the correct answer is the **secondary and primary market**.

A major function of chamber of commerce is

Maelezo ya Majibu

The major function of a chamber of commerce is promoting both home and foreign trade.

This means that the chamber of commerce works to support and encourage businesses in their local community to engage in trade activities, both within the country (home trade) and with other countries (foreign trade).

The chamber of commerce plays a vital role in creating opportunities for businesses to connect with potential customers, suppliers, and partners. They facilitate trade exhibitions, networking events, and business conferences, where companies can showcase their products and services to a wider audience. By promoting trade, the chamber of commerce helps businesses expand their market reach, increase sales, and grow their profitability.

This not only benefits the individual businesses but also contributes to the overall economic development of the region. In addition to promoting trade, the chamber of commerce also provides support and resources to businesses to help them increase productivity.

This can include offering training programs, access to business development resources, and advocating for policies that foster a favorable business environment.

Promoting trade in a particular line is a narrower focus and not the major function of a chamber of commerce. While they may support specific industries or sectors within their community, their primary role is to promote trade in a broader sense, considering the interests and needs of all businesses.

Furthermore, maximizing profit is not the primary objective of a chamber of commerce. While they aim to support the success and profitability of businesses, their main focus is on fostering a conducive business environment and facilitating trade, rather than exclusively focusing on individual profit maximization.

At the collapse of a business enterprises, the person appointed to dispose off the assets is called

Maelezo ya Majibu

The person who is appointed to dispose off the assets at the collapse of a business enterprise is called a liquidator.

A liquidator is an individual or a professional firm that specializes in winding up the affairs of a company when it is unable to pay its debts or when it is being voluntarily dissolved. The role of a liquidator is to ensure that the assets of the company are efficiently sold or distributed in order to repay the creditors and stakeholders.

Their primary responsibility is to maximize the value of the assets and distribute the proceeds fairly among the various parties involved. To achieve this, a liquidator may use various methods such as organizing auctions, negotiating with potential buyers, or selling the assets through brokers. They also handle legal matters and ensure that the company's liabilities are adequately settled.

Additionally, a liquidator may also be responsible for dealing with employee redundancies and managing any ongoing legal disputes. In summary, the main duty of a liquidator is to oversee the process of selling off the assets of a business entity in order to settle its debts and obligations.

Their goal is to maximize returns for creditors and stakeholders while following legal protocols and ensuring a fair distribution of the proceeds.

Money is generally acceptable for transaction due to

Maelezo ya Majibu

Money is any item or verifiable record that is generally accepted as payment for goods and services and repayment of debts, such as taxes, in a particular country.

Legal tender is any official medium of payment recognized by law that can be used to extinguish a public or private debt, or meet a financial obligation

Which of the following regulates and controls the activities in the Nigerian Stock Exchange?

Maelezo ya Majibu

The regulatory body that controls and regulates the activities in the Nigerian Stock Exchange (NSE) is the Securities and Exchange Commission (SEC). The SEC is responsible for the supervision, regulation, and development of the capital market in Nigeria. Its main objective is to protect investors, maintain fair and transparent markets, and promote the growth and development of the capital market. The SEC ensures that companies listed on the Nigerian Stock Exchange comply with rules and regulations to maintain integrity and investor confidence in the market. It sets standards for disclosure and financial reporting, monitors trading activities, and investigates any misconduct or market abuse. The Central Bank of Nigeria (CBN) is responsible for monetary policy and banking supervision, while the Bureau of Public Enterprises (BPE) oversees privatization and public enterprises. The Nigeria Deposit Insurance Corporation (NDIC) focuses on deposit insurance and bank supervision. Therefore, out of the options provided, the Securities and Exchange Commission (SEC) is the regulatory body that specifically regulates and controls the activities in the Nigerian Stock Exchange (NSE).

Maelezo ya Majibu

An example of a cartel is **OPEC**. A cartel is a group of independent entities or organizations that come together to regulate and control the production, pricing, and distribution of a particular product or service. The primary goal of a cartel is to collaborate and reduce competition among its members in order to maintain high prices and increase profits. OPEC stands for the Organization of the Petroleum Exporting Countries. It is an intergovernmental organization consisting of 14 oil-producing countries, primarily located in the Middle East, Africa, and South America. OPEC was formed in 1960 and its members collectively control a significant portion of the world's oil reserves and production. OPEC's main objective is to coordinate and control the production and pricing of oil to ensure stability in global oil markets and maximize their revenues. The member countries agree on production quotas to limit the amount of oil they produce, with the aim of balancing supply and demand and maintaining stable oil prices. By collaborating and acting as a collective force, OPEC members are able to exert influence and have a significant impact on global oil prices. This allows them to maintain higher prices and avoid the downward pressure of excessive competition. However, this control over the oil market has both positive and negative consequences for both the member countries and the global economy. In summary, OPEC is an example of a cartel as it is a group of oil-producing countries that collaborate to control the production and pricing of oil, with the aim of maintaining high prices and increasing profits.

The business unit that applies the principle of one man vote is

Maelezo ya Majibu

Cooperatives are about people having a shared sense of purpose and aligned self-interests. One-member, one-vote works great in this context because it distributes decision-making and is designed to reflect the interests of a majority of owners. For example, suppose a cooperatives proposes to purchase one of its competitors and expand the business.

The fees charged on postal order by the post office is

Maelezo ya Majibu

The fee charged on postal orders by the post office is called "poundage". Poundage is a fee that is added to the total value of the postal order. It is a small percentage or fixed amount that the post office charges for providing the service of issuing and handling the postal order. The purpose of the poundage fee is to cover the costs incurred by the post office in processing and delivering the postal order. This includes administrative expenses, handling and transportation costs, as well as providing security for the transaction. It is important to note that the poundage fee is not the same as interest or brokerage. Interest refers to the additional amount of money earned on an investment or loan, which is not relevant to postal orders. Brokerage, on the other hand, is a fee charged by a broker for arranging a transaction between a buyer and a seller, which is also not applicable to postal orders. Therefore, to summarize, the fee charged on postal orders by the post office is called "poundage." It is a fee added to the total value of the postal order to cover the costs of processing and delivering the order.

A document that lists the goods that are being sent from one place to another is

Maelezo ya Majibu

A document that lists the goods that are being sent from one place to another is called a **bill of lading**. This document serves as a contract between the shipper and the carrier and provides detailed information about the goods being transported. It acts as a receipt, evidence of ownership, and a document of title for the goods. The bill of lading includes important information such as the description of the goods, quantity, weight, packaging details, names of parties involved, departure and destination points, and any special instructions or conditions for transportation. It is an essential document in international trade and helps ensure the smooth and secure movement of goods from one place to another.

The process of dividing tasks into jobs and departments and delegating authority is known as

Maelezo ya Majibu

The process of dividing tasks into jobs and departments and delegating authority is known as organizing.

Organizing involves breaking down the overall goals and objectives of an organization into smaller, more manageable tasks. This allows for a clear understanding of what needs to be done and how it will be divided among different individuals or departments.

Dividing tasks into jobs means identifying the specific activities or responsibilities that need to be carried out to achieve the organization's goals. For example, in a manufacturing company, tasks may be divided into jobs such as production, quality control, and logistics. Each job has its own set of duties and responsibilities.

Dividing tasks into departments is about grouping jobs together based on their similarities or functions. This helps in creating a more structured and organized work environment. For example, sales, marketing, and customer service might form different departments within a company.

Delegating authority means assigning decision-making power and responsibility to individuals or departments. It involves giving people the necessary authority and resources to accomplish their tasks effectively. This allows for a more efficient and effective decision-making process throughout the organization.

Overall, the process of organizing involves dividing tasks into jobs and departments and delegating the appropriate authority to ensure that the work is performed in a coordinated and efficient manner.

Current account holders withdraw money through

Maelezo ya Majibu

Current account holders can withdraw money from their accounts using different methods. **1. Transfers:** One of the common ways to withdraw money from a current account is through transfers. This involves transferring funds electronically from the current account to another bank account. You can initiate a transfer by providing the recipient's bank account details such as their bank name, account number, and sort code. This method is often used for making payments to individuals or businesses. **2. Credit Cards:** Another method is through the use of credit cards. If your current account is linked to a credit card, you can withdraw money by using the card at an ATM or making cash advances at a bank or financial institution. It's important to note that using a credit card for cash withdrawals may incur additional fees or interest charges, so it's advisable to check the terms and conditions of your credit card provider. **3. Withdrawal Form:** Some banks may also provide a withdrawal form that you can fill out to withdraw cash from your current account. This form usually requires you to specify the amount you wish to withdraw and your account details. Once the form is completed, you can submit it to the bank, and they will process the withdrawal accordingly. **4. Cheque:** Lastly, current account holders can withdraw money by writing a cheque. A cheque is a paper document that instructs the bank to pay a specific amount from your account to the person or organization named on the cheque. The recipient can then deposit or cash the cheque to access the funds. It's worth noting that the use of cheques is becoming less common due to the increasing popularity of electronic payment methods. Overall, these are some of the ways current account holders can withdraw money from their accounts. The choice of method depends on personal preference, accessibility, and the specific services offered by the bank.

What is a quota?

Maelezo ya Majibu

A quota is a physical restriction placed on the quantity of goods that can be imported. It is not a ban on all imported goods, a tax paid on goods produced within a country, or a tax paid on goods produced outside a country. Quotas are usually set by governments to control the amount of certain goods that can enter a country. They can be used to protect domestic industries, manage trade imbalances, or regulate the flow of goods. By limiting the quantity of imported goods, quotas can affect supply and demand, pricing, and competition in the marketplace.

Any activity directed at conveying commodities to buyers is an aspect of

Maelezo ya Majibu

**Marketing** encompasses any activity directed at conveying commodities to buyers. It involves a set of actions aimed at promoting and selling products or services to customers. Marketing includes various aspects such as **delivering** the products or services to the consumers, **advertising** to raise awareness and attract customers, and **selling** by engaging in transactions or exchange of goods. However, it is important to note that **marketing is not limited to selling alone**. It also involves market research, product development, pricing, distribution, and creating customer relationships. In summary, marketing involves a range of activities that aim to connect products or services with consumers, including delivering, advertising, selling, and several other strategic actions.

An agent who has to sell perishable goods without the prior authority of the owner becomes an agent by

Maelezo ya Majibu

Agency by necessity arises when an emergency situation happens. When somebody who is possession of another person's property has to so something to preserve the property.

A major function of trade association is to

Maelezo ya Majibu

A major function of trade associations is to foster cooperation among their members. Trade associations are organizations that bring together businesses operating in a particular industry or trade. They aim to promote the common interests and goals of their members and support them in various ways. One of the primary purposes of trade associations is to create an environment where businesses can work together and collaborate. By fostering cooperation, trade associations facilitate the sharing of knowledge, expertise, and resources among their members. This collaboration can help businesses in the industry to collectively address challenges, explore new opportunities, and develop common strategies for growth and success. Trade associations also serve as a platform for networking and establishing links among their members. They organize events, conferences, and meetings where business owners and professionals from the same industry can connect, interact, and build relationships. These connections can lead to new partnerships, collaborations, and business opportunities that can benefit individual members and the industry as a whole. It is important to note that trade associations do not assist members in buying cars or help individuals set up small businesses directly. Their main focus is on creating an environment of cooperation, collaboration, and support within the industry. While they may offer various services, such as industry research, advocacy, or training programs, these services are generally aimed at benefiting the industry as a whole rather than assisting individual members in specific personal endeavors. In summary, the primary function of trade associations is to foster cooperation among their members and establish links within the industry. They provide a platform for businesses in the same industry to collaborate, share resources, and work together towards common goals.

The government agency involved in issuing of export licences is

Maelezo ya Majibu

The government agency involved in issuing export licenses is the Nigeria Export Promotion Council (NEPC).

The NEPC is responsible for promoting and regulating exports in Nigeria. One of its main functions is to issue export licenses to Nigerian companies or individuals who want to export goods and services to other countries.

Export licenses are important because they serve as official documents that grant permission to individuals or businesses to export specific goods or services. These licenses ensure that exports comply with national and international trade regulations, help protect local industries, and facilitate trade relationships between Nigeria and other countries.

To obtain an export license from the NEPC, individuals or businesses need to fulfill certain requirements such as registration, documentation, and compliance with export regulations.

The NEPC reviews applications and verifies that the export activities align with the country's trade policies.

Once an export license is granted by the NEPC, the exporter can legally engage in international trade, confidently ship goods or provide services to foreign customers, and access benefits such as export incentives, trade promotions, and market opportunities.

In conclusion, the Nigeria Export Promotion Council (NEPC) is the government agency responsible for issuing export licenses in Nigeria.

These licenses are essential for individuals and businesses seeking to engage in legal and regulated export activities, promoting trade and economic growth in the country.

A factor necessary for siting of a warehouse is nearness to

Maelezo ya Majibu

A factor that is necessary for siting a warehouse is the **nearness to consumers**. When deciding where to locate a warehouse, it is important to consider the proximity or closeness to the consumers who will be buying the products stored in the warehouse. This is because being close to consumers has several advantages: 1. **Faster delivery**: When the warehouse is located near the consumers, it reduces the distance that goods need to travel to reach them. This means that products can be delivered more quickly, which is important for satisfying customer demands and providing a good customer experience. 2. **Reduced transportation costs**: Having a warehouse close to consumers also helps to reduce transportation costs. When the warehouse is located far away, it requires more time, fuel, and resources to transport goods from the warehouse to the consumers. By minimizing the distance, transportation costs can be minimized too. 3. **Flexibility and responsiveness**: Being close to consumers allows the warehouse to be more flexible and responsive to their needs. It becomes easier to adapt to changes in demand and customer preferences when the warehouse is situated nearby. This can help businesses stay competitive in the market. 4. **Customer satisfaction**: Ultimately, having a warehouse near consumers contributes to customer satisfaction. Customers appreciate receiving their products quickly and efficiently. By providing fast and convenient service, businesses can attract and retain more customers. In summary, the nearness to consumers is an important factor to consider when siting a warehouse. It enables faster delivery, reduces transportation costs, allows for greater flexibility, and leads to improved customer satisfaction.

The organised effort of consumers to protect themselves against the unfair practices of businessmen is known as

Maelezo ya Majibu

The organized effort of consumers to protect themselves against the unfair practices of businessmen is known as consumerism.

Consumerism is a movement that aims to empower and educate consumers, advocating for their rights and interests in the marketplace. It involves individuals, groups, and organizations working together to promote fair business practices, transparency, and the provision of quality products and services.

Consumerism encompasses various activities such as raising awareness about consumer rights, educating consumers about their rights and responsibilities, promoting ethical and sustainable consumption, and advocating for stronger consumer protection laws.

It encourages individuals to be vigilant and proactive in their purchasing decisions, making informed choices based on factors like product quality, safety, environmental impact, and fair pricing.

Consumerism often involves activities like boycotting companies that engage in unethical practices, filing complaints with consumer protection agencies, participating in product recalls, and supporting initiatives that promote fair trade and responsible corporate behavior.

Overall, consumerism serves to balance the power dynamics between businesses and consumers, giving individuals the means to protect themselves from unfair practices and make informed choices for their well-being and satisfaction.

It plays a crucial role in holding businesses accountable and shaping a fair and just marketplace.

A demerit of communication is that it

Maelezo ya Majibu

The sender of communication may have a clear idea about the message but it may still be marked by the poorly chosen words poor organization, awkward sentence structure, lack of coherence, omissions unnecessary jargon, and a failure to clarify its implications.

The duties paid on goods produced locally is

Maelezo ya Majibu

The duty paid on goods produced locally is known as excise duty. This is a tax imposed by the government on certain goods that are manufactured or produced within a country. Excise duty is charged at the production or manufacturing stage, and it is different from other forms of duties, such as import or export duties. It is specifically levied on goods that are produced domestically, rather than on goods that are imported or exported. The purpose of imposing excise duty is to generate revenue for the government and to regulate the production and consumption of certain goods. The amount of excise duty can vary depending on the type of goods and the specific regulations set by the government. Unlike export duty, which is imposed on goods that are being sent out of the country, excise duty is levied on goods that are produced within the country and are intended for consumption or sale within the domestic market. It is important to note that excise duty is not the same as ad-valorem duty, which is a percentage-based duty imposed on the value of goods. Excise duty is specifically tied to the production or manufacturing of goods. Furthermore, excise duty should not be confused with quota. Quota refers to a limit or restriction on the quantity of goods that can be imported or exported from a country. It is not directly related to the payment of duties on locally produced goods. In summary, the duty paid on goods produced locally is called excise duty, which is a tax imposed by the government on certain goods that are manufactured or produced within the country.

Maelezo ya Majibu

The type of letters that are delivered through the normal mail or by airmail express service is referred to as inland letters. Inland letters are letters that are sent within the same country. They can be delivered through the normal mail service or by airmail express service, depending on the sender's preference and the urgency of the letter.

One of these is a current asset

Maelezo ya Majibu

Out of the given options, **stock** is a current asset. A current asset is an asset that is expected to be used up or converted into cash within a year or the normal operating cycle of a business. Stock, in this context, refers to the goods or merchandise that a company holds for sale to customers. It includes items such as finished goods, raw materials, and work-in-progress. Stock is considered a current asset because it is typically held for a short period of time before it is sold to generate revenue. Companies often purchase stock to meet customer demand and generate sales. Once the stock is sold, the company receives cash in exchange, thereby converting the stock into cash. Other options like machineries, fittings, and motor vehicles are not considered current assets. Machineries and motor vehicles are typically classified as fixed assets because they are used for long-term operations and are not expected to be converted into cash quickly. Fittings, on the other hand, may refer to fixtures or equipment within a building and also fall under the category of fixed assets. In summary, stock is considered a current asset because it represents the inventory of goods that a company plans to sell within a year or its normal operating cycle. It can be easily converted into cash when sold to customers.

Good and services transferred from seller to buyer without immediate payment is referred to as

Maelezo ya Majibu

The term used to describe the transfer of goods and services from a seller to a buyer without immediate payment is called "credit sale." In a credit sale, the seller allows the buyer to take possession of the goods or avail the services they desire, with the understanding that the payment will be made at a later agreed-upon date. This means that the buyer does not have to pay for the goods or services immediately. Credit sales are commonly seen in various transactions, such as purchasing furniture, electronics, or even when purchasing a house or a car. In such cases, the buyer is able to use or enjoy the item or service before making the full payment. It is important to note that in a credit sale, there is an agreed-upon agreement between the seller and the buyer regarding the payment terms, including the timeframe and any additional charges or interest that may be applied. Therefore, out of the given options, the correct term for the transfer of goods and services without immediate payment is **credit sale**.

Maelezo ya Majibu

To find the gross profit, we need to understand what it represents. Gross profit is the amount of money left after subtracting the cost of goods sold from the net sales.
Net sales is the total revenue generated from selling goods, which in this case is ₦370,000.
The cost of goods sold is the total cost incurred to produce or purchase the goods that were sold. To calculate it, we subtract the value of the stock on 31/12 (₦40,000) from the cost of goods available for sale (₦270,000). In this case, the cost of goods sold is ₦230,000.
Now, we can calculate the gross profit by subtracting the cost of goods sold (₦230,000) from the net sales (₦370,000). Gross profit = Net sales - Cost of goods sold Gross profit = ₦370,000 - ₦230,000 = ₦140,000.
Therefore, the correct answer is ₦140,000.

Why is clean bill of lading called so?

Maelezo ya Majibu

A clean bill of lading is called so because it is a clear and accurate document that shows no records of damaged goods or any other problems. When goods are transported by ship, a bill of lading is issued as a receipt and evidence of the contract between the shipper and the carrier. It includes important information such as the type of goods, the quantity, and the destination. A clean bill of lading indicates that the goods have been loaded onto the ship in good condition and that there are no visible signs of damage or issues. It is like a "clean slate" for the goods, meaning there are no problems associated with them at the time of shipment. This document is important because it serves as proof that the goods were in good condition when they were handed over to the carrier. It also ensures that the responsibility for any damages or issues lies with the carrier, rather than the shipper. On the other hand, if a bill of lading shows records of damaged goods, it would be called a "dirty" or "foul" bill of lading. This would indicate that there are problems or damages associated with the goods, which may complicate the liability and the insurance claims process. Therefore, a clean bill of lading signifies that no debt is owed and that the goods have been shipped in good condition, giving confidence to both the shipper and the receiver of the goods.

Maelezo ya Majibu

To calculate the net profit, we need to subtract the cost of goods sold and expenses from the net sales.
Given the information provided:
Net sales: ₦370,000 Cost of goods sold: ₦230,000 Rent expenses: ₦35,000
To calculate the net profit, we use the following formula:
Net Profit = Net Sales - Cost of Goods Sold - Expenses
Substituting the values into the formula:
Net Profit = ₦370,000 - ₦230,000 - ₦35,000
Net Profit = ₦105,000
Therefore, the net profit is ₦105,000.
The correct answer is: ₦105,000

One disadvantages of advertising is that it

Maelezo ya Majibu

One disadvantage of advertising is that it could be misleading. Advertising is a way of promoting products or services to attract customers. However, sometimes advertisements may not provide accurate or honest information about a product. This can mislead customers into believing that a product is better than it actually is. For example, an advertisement might exaggerate the benefits of a product or hide its potential drawbacks. This can lead to customers purchasing a product based on false expectations, only to be disappointed when they realize it does not meet their needs or desires. Misleading advertising can also have negative consequences for businesses. If customers feel deceived by an advertisement, they may lose trust in the brand and be less likely to make future purchases. Moreover, misleading advertising can also lead to legal issues and damage a company's reputation. Therefore, it is important for both businesses and consumers to be aware of the potential for misleading advertising and to critically evaluate the claims made in advertisements before making a decision.

Parts payments made on alloted shares by subscribers is usually the

Maelezo ya Majibu

The correct answer is "called-up capital." Called-up capital refers to the portion of the subscribed capital that the company has requested from its shareholders to be paid. When a company decides to issue new shares, individuals or entities can subscribe to those shares by indicating their intention to purchase them. Once this happens, the subscribed capital represents the total value of shares that have been agreed to be purchased by the subscribers. However, subscribers do not always pay the entire subscription amount upfront. Instead, they make partial payments over time based on the company's requests. These partial payments made by the subscribers on their allotted shares are known as called-up capital. Therefore, the correct term to use for the partial payments made on the allotted shares by subscribers is "called-up capital."

A government policy that encourages transfer of ownership from foreigners to indigenes of the country is known as

Maelezo ya Majibu

Indigenisation is the government policy that encourages the transfer of ownership from foreigners to indigenes of the country.

This means that the government is promoting the idea of giving ownership and control of businesses, resources, and industries to the local people or native citizens of the country.

The main objective of indigenisation is to empower the local population and promote economic development.

By transferring ownership to indigenes, the government aims to reduce the influence of foreign entities and create opportunities for local businesses and individuals to thrive.

Indigenisation policies can take various forms, such as requiring a certain percentage of ownership to be held by locals, providing incentives for indigenous businesses, or implementing regulations that prioritize local participation in key sectors of the economy.

Overall, indigenisation is a strategy used by governments to ensure that resources and economic power are shared among the local population, fostering economic growth, and reducing dependency on foreign entities.

The four P's of marketing are also known as

Maelezo ya Majibu

The four P's of marketing are also known as the marketing mix. This concept refers to the essential elements that businesses need to consider when developing a marketing strategy. The four P's are product, price, place, and promotion. 1. Product: This refers to the tangible or intangible goods or services that a company offers to satisfy customer needs or wants. It includes factors such as quality, features, packaging, branding, and customer support. 2. Price: This is the amount of money customers are willing to pay in exchange for the product or service. Pricing decisions should take into account factors such as production costs, competition, target market's willingness to pay, and overall business objectives. 3. Place: This represents the channels or methods through which a company delivers its products or services to the target market. It involves decisions related to the distribution network, retail locations, online platforms, and logistics. 4. Promotion: This refers to the various activities and strategies that companies use to communicate and promote their products or services to the target market. It includes advertising, public relations, sales promotion, personal selling, and direct marketing. The marketing mix emphasizes the importance of considering these four elements collectively and in harmony to achieve marketing success. By addressing each aspect effectively, businesses can understand and meet customer needs, differentiate themselves from competitors, and create a strong market presence.

A system where customer patronage is sought by producing what they need is referred to as

Maelezo ya Majibu

A system where customer patronage is sought by producing what they need is referred to as market orientation. Market orientation is an approach adopted by businesses where they prioritize understanding customer needs and preferences. Rather than focusing solely on promoting or selling their products, market-oriented companies aim to produce goods and services that align with customer demands. In a market-oriented system, businesses conduct thorough market research to identify consumer needs, preferences, and trends. This information is then used to develop and modify their products to meet these specific requirements. The key point is to focus on customer satisfaction by delivering products that fulfill their needs, wants, and expectations. By adopting a market orientation, businesses can effectively tailor their products and marketing strategies to meet customer demands, resulting in increased customer satisfaction and long-term success.

Which of the following is not a veritable source of funds to a public limited liability company?

Maelezo ya Majibu

The answer is: Government financial grants.

A public limited liability company can obtain funds from various sources such as advances and loans from banks, internally generated funds, and funds from the sale of shares. However, government financial grants are not considered a veritable source of funds for a public limited liability company.

Advances and loans from banks can be obtained by a company in order to meet its financial needs. These funds are typically provided by the bank based on the company's creditworthiness and ability to repay the loan. This can be a reliable source of funds for a company.

Internally generated funds refer to the funds that a company generates from its own operations. This can include profits from the sale of goods or services, dividends from investments, or any other income generated by the company's operations. These funds are considered to be a reliable and sustainable source of financing.

Funds from the sale of shares refer to the capital that a company raises by issuing shares to investors. When a company goes public, it offers shares to the public through an initial public offering (IPO). Investors can then buy these shares, providing the company with capital. This is a common way for companies to raise funds.

On the other hand, government financial grants are not typically a veritable source of funds for a public limited liability company. While governments may provide financial assistance or grants to certain industries or sectors, this is usually not the primary source of funding for a company. Grants are often provided for specific projects or initiatives and may come with certain conditions or limitations.

In summary, while advances and loans from banks, internally generated funds, and funds from the sale of shares are all potential sources of funds for a public limited liability company, government financial grants are not considered a veritable source of funds.

Insurance against burglary is an example of

Maelezo ya Majibu

Insurance against burglary is an example of indemnity insurance. Indemnity insurance is a type of insurance that provides financial compensation for the loss or damage caused by a specific event or peril.

In the case of burglary insurance, it specifically covers the loss or damage resulting from a burglary or theft. When you have burglary insurance, you are protected against the financial consequences of a burglary. If your home or property is broken into and valuable items are stolen or damaged, the insurance company will compensate you for the value of those items, up to the limits specified in your policy. It is important to note that indemnity insurance does not provide a profit or go beyond the actual loss or damage suffered. The purpose of this type of insurance is to restore you to the same financial position you were in before the burglary occurred.

Non-indemnity insurance is a term used to describe insurance policies that do not provide financial compensation for the loss or damage suffered. Instead, they typically provide services or benefits that are not related to the actual cost of the loss.

Non-insurable risk refers to risks that insurance companies are unwilling or unable to provide coverage for. These risks are typically considered too unpredictable or highly certain to result in a loss, making it difficult for insurers to assess and determine an appropriate premium.

Fidelity guarantee insurance is a type of insurance that protects businesses against financial loss caused by the dishonest or fraudulent acts of their employees. It covers instances where an employee embezzles money, steals property, or commits other fraudulent acts.

In summary, insurance against burglary falls under the category of indemnity insurance. It provides financial compensation for the loss or damage caused by a burglary or theft, aiming to restore the policyholder to the same financial position they were in before the incident occurred.

An example of extractive occupation is

Maelezo ya Majibu

An example of extractive occupation is **mining**. Mining is the process of extracting valuable minerals or other geological materials from the earth. This occupation involves digging, drilling, and blasting to access and remove minerals such as coal, iron, gold, or diamonds from the ground. In extractive occupations like mining, the main focus is on acquiring and extracting natural resources. These resources are then processed and used in various industries for manufacturing products and fueling economic activities. Unlike other occupations mentioned, such as driving, teaching, or banking, mining is directly involved in the extraction of natural resources. While driving, teaching, and banking are important occupations in their own right, they do not involve the extraction of resources from the earth. To summarize, an extractive occupation refers to jobs that involve extracting natural resources from the earth, and mining is a prime example of such an occupation.

An agreement that is enforceable in law is

Maelezo ya Majibu

An agreement that is enforceable in law is called a contract. A contract is a legally binding agreement between two or more parties. It is created when there is an offer made by one party to another, and that offer is accepted. Both parties must provide something of value, known as consideration, for the contract to be valid. Once a contract is formed, it means that both parties are legally obligated to fulfill their promises as outlined in the agreement. If any party fails to fulfill their obligations, the other party can seek legal remedies to enforce the contract. So, in simple terms, a contract is an agreement that can be enforced by law if any party fails to do what they promised to do.

One of the major problems of a sole properitor is sourcing for

Maelezo ya Majibu

One of the major problems of a sole proprietor is sourcing for **funds**. - As a sole proprietor, you are the only owner of the business, which means you are responsible for financing all aspects of the business, including startup costs, daily operations, and expansion. - Unlike larger corporations or partnerships, a sole proprietor doesn't have the advantage of multiple sources of funding such as shareholders, investors, or business partners to share the financial burden. - This can make it challenging to secure the necessary funds to start or grow the business. - Sole proprietors often have to rely on personal savings, loans from family and friends, or bank loans to finance their business. - Accessing these funds can be difficult as sole proprietors may have a harder time demonstrating the financial stability or attracting investors compared to larger businesses. - Additionally, since the entire financial responsibility falls on the sole proprietor, they may face personal financial risks if the business encounters financial difficulties or fails. - Therefore, for a sole proprietor, sourcing for funds is a crucial challenge that they need to overcome to ensure the successful operation and growth of their business.

The act of selling in a foreign market at a price lower than the cost price is called

Maelezo ya Majibu

The correct answer is **dumping**. Dumping is the act of selling products in a foreign market at a lower price than what it cost to produce them. This practice allows the exporter to gain a competitive advantage over local businesses in the foreign market, as they can offer lower prices to attract customers and potentially drive local producers out of business. Dumping is often seen as an unfair trade practice because it can harm domestic industries by creating an unlevel playing field. It can also lead to anti-dumping measures being imposed by the importing country to protect its industries. To summarize, dumping involves selling products in a foreign market at a price lower than the cost price, giving the exporter a competitive advantage but potentially harming local industries.

A business organization that exploits the capabilities of a member to remedy the weakness of another is a

Maelezo ya Majibu

A business organization that exploits the capabilities of a member to remedy the weakness of another is a cooperative. In a cooperative, individuals or businesses come together voluntarily to pool their resources, skills, and knowledge for mutual benefit. The members of a cooperative work together to address their weaknesses by leveraging the strengths of others. This collaboration helps to improve the overall efficiency and productivity of the cooperative. Cooperatives operate on the principle of "working together" rather than competing against each other. By sharing resources, expertise, and responsibilities, the members can achieve common goals that may not have been possible individually. The cooperative structure allows members to contribute their unique skills and abilities to fill any gaps or weaknesses within the organization. This collective effort promotes collaboration, problem-solving, and shared decision-making. Overall, a cooperative is a business organization that fosters cooperation among its members to maximize their strengths and overcome weaknesses collectively.

If a business uses part of its profit to develop the area where it operates, the business is fulfilling its

Maelezo ya Majibu

If a business uses part of its profits to develop the area where it operates, it is fulfilling its social responsibilities. Social responsibilities refer to the obligations of a business to contribute to the well-being and improvement of society. By investing in the development of the local area, the business is showing its commitment to the community and the people living there. This can be done through various means such as supporting education, healthcare, infrastructure projects, or environmental initiatives. When a business fulfills its social responsibilities, it goes beyond its primary goal of making profits and considers the impact it has on society. It recognizes that it has a role to play in creating positive social change and improving the quality of life for the people in its community. In summary, by using its profits to develop the area where it operates, the business is fulfilling its social responsibilities by contributing to the well-being and improvement of society.

An advantage of division of labour is

Maelezo ya Majibu

One advantage of division of labour is that it increases productivity and total output.

Division of labour refers to the specialization of tasks where individuals in a group or organization focus on specific tasks based on their skills and abilities.

Each person becomes proficient in their assigned task and is able to perform it more efficiently and effectively through practice and experience. By dividing a complex task into smaller, simpler tasks, the individuals involved can become experts in their own specific areas.

As a result, they can complete their tasks more quickly and with higher quality. This leads to increased overall productivity and higher output. For example, in a car manufacturing company, workers are divided into different stations or departments such as assembly, welding, painting, and testing.

Each worker in each department focuses on their specific task, such as attaching the wheels, welding the chassis, or applying the paint. This specialization enables the company to produce cars at a faster rate and with better quality than if each worker had to do all the tasks themselves.

Therefore, division of labour leads to increased productivity and total output by allowing individuals to specialize in specific tasks, perform them more efficiently, and collectively contribute to the overall goal.