WAEC SSCE - Commerce - 2015

Maelezo ya Majibu

Maelezo ya Majibu

Consumer sovereignty means that the buyer is the king. It refers to the idea that in a market economy, consumers determine what goods and services are produced by their purchasing decisions. In other words, producers must respond to the wants and needs of consumers in order to succeed in the market. This gives consumers the power to determine what is produced and sold, and producers must compete to provide goods and services that meet consumer demands.

Maelezo ya Majibu

Maelezo ya Majibu

The practice of selling goods in foreign markets at a price lower than the cost price is called "dumping." Dumping is an unfair trade practice that is often used to drive competitors out of business. It is considered illegal in many countries and is regulated by trade laws and regulations. The purpose of these laws is to protect domestic businesses from being harmed by the sale of goods at unfairly low prices.

Maelezo ya Majibu

Devaluation is the reduction in the value of a country's currency in relation to others. It means that the exchange rate of the country's currency has decreased compared to other currencies. This could happen due to a variety of reasons such as a decrease in demand for the country's exports, high inflation, or a decrease in the country's interest rates. Devaluation makes the country's exports cheaper and imports more expensive, which can help improve the country's balance of trade. However, it can also lead to higher inflation as the prices of imported goods increase.

Maelezo ya Majibu

Retail outlets which sell from specialized vans are called mobile shops. They are shops that are designed and built into a van or truck, which can move from place to place, allowing the vendor to sell their goods directly to customers in different locations. These mobile shops are often used by small business owners who may not have a permanent physical store, or who want to expand their customer base beyond their regular locations. The vans are typically stocked with a variety of products, such as groceries, clothing, or electronics, and may operate on a regular schedule or by appointment.

Maelezo ya Majibu

The document of title of goods is a document that serves as evidence of the ownership or transfer of ownership of goods. Among the options provided, the document of title of goods is the bill of lading. A bill of lading is a legal document issued by a carrier or shipper that details the goods being transported, the terms of the shipment, and the ownership of the goods. It serves as proof of shipment and receipt of the goods and is often used as collateral for financing.

Maelezo ya Majibu

The correct answer is "del credere". Del credere is an Italian phrase that means "of credit". In business, it is an arrangement whereby a commission is paid to an agent who guarantees the credit sales made by him. In other words, the agent becomes a guarantor of the buyer's ability to pay, and in exchange for this guarantee, the agent receives a commission. This arrangement is typically used when the buyer is not well known or has a poor credit rating. The del credere commission acts as an incentive for the agent to take on the risk of the credit sale.

Maelezo ya Majibu

The activity classified under extractive industry is the exploration of minerals. Extractive industries involve activities that extract raw materials from the earth, such as mining, drilling, and quarrying. Exploration of minerals involves searching for and identifying areas where minerals are located. This process involves prospecting, geological mapping, and drilling to extract mineral samples for analysis. The extracted minerals are then processed into finished products that can be used for various purposes, such as building materials, energy production, and industrial manufacturing.

Maelezo ya Majibu

A mason is engaged in a construction occupation. A mason is a skilled worker who builds with materials like brick, stone, and concrete. They work on construction projects such as buildings, walls, bridges, and other structures. They are responsible for interpreting blueprints, measuring and cutting materials, and laying them in a specific pattern to construct the desired structure. A shop assistant works in retail, a farmer works in agriculture, and a train driver operates trains.

Maelezo ya Majibu

The value of Bamidele's authorized share capital is N160,000,000. This is because authorized share capital is the maximum amount of capital that a company is authorized to raise through the issuance of shares. In this case, the authorized capital is 40,000,000 ordinary shares of N4 each, which gives a total of N160,000,000 (40,000,000 x N4). It is important to note that authorized share capital does not represent the actual amount of capital raised, but rather the maximum amount that can be raised.

Maelezo ya Majibu

The term used to describe all activities aimed at creating a good image for an organization is "public relations." Public relations involve managing the relationship between an organization and its stakeholders, including the public, customers, employees, investors, and the media. The goal of public relations is to build and maintain a positive image of the organization, enhance its reputation, and communicate its message effectively to the public. Public relations activities may include media relations, crisis management, event planning, social media management, and community relations.

Maelezo ya Majibu

The option used for making payments to many people in a single cheque is a "bank draft". A bank draft is a payment order issued by a bank to pay a specified amount to the person or organization listed on the draft. It is similar to a cashier's check, but it is drawn on the bank's funds rather than the purchaser's funds. Bank drafts are commonly used for large transactions and purchases, such as buying a car or paying for a home renovation project. They can also be used to make payments to multiple parties, as the bank can split the total amount into separate payments and send them to the designated recipients.

Maelezo ya Majibu

When two or more insurers are liable under a common insurance policy, the principle that applies is the principle of contribution. This principle ensures that each insurer contributes proportionately to the loss or claim, based on the amount of premium they have received. In other words, each insurer will pay their fair share of the claim, which is determined based on the limit of liability in the policy and the amount of premium they have received. The principle of contribution is important in ensuring that the policyholder is not over-compensated for the loss or claim and that insurers are not over-burdened with the cost of the claim.

Maelezo ya Majibu

Maelezo ya Majibu

The principle that stipulates that the insured must be in a position to suffer financial loss is "insurable interest." This principle states that in order for insurance to be valid, the insured must have a financial interest in the item or property being insured. This means that the insured must stand to suffer a financial loss if the item or property is damaged or destroyed. The principle of insurable interest helps prevent insurance from being used as a means of gambling or profiting from misfortune. It also helps ensure that insurance is used for its intended purpose of protecting against unexpected financial losses.

Maelezo ya Majibu

The market for short term security is called the money market. It is a platform where financial instruments such as Treasury bills, commercial papers, and certificates of deposits are traded. The money market enables lenders to provide short term funds to borrowers who require them for a brief period, typically less than a year. The interest rates in the money market are determined by the demand and supply of money. It is an important aspect of the financial market as it helps to regulate the supply of money in the economy.

Maelezo ya Majibu

The insurance services rendered to a foreign shipping company are treated as "invisible export." An invisible export is a service provided by one country to another, where the payment for the service does not result in the physical movement of goods across the border. In this case, the insurance service provided to a foreign shipping company does not involve the physical movement of goods across borders, but it generates income for the country providing the service, hence treated as an invisible export.

Maelezo ya Majibu

The type of wholesaler that combines selling, delivery and collection in one operation is a "truck wholesaler". A truck wholesaler is a wholesaler who operates from a truck and provides a mobile service to retailers by selling, delivering, and collecting payments all in one operation. They typically carry a limited range of products and cater to retailers who may not have the resources or time to visit traditional wholesalers. This type of wholesaler is often used in rural areas or by small retailers who have limited access to other types of wholesalers.

Maelezo ya Majibu

The term "utmost good faith" in insurance means that both the insured and insurer are required to disclose all material facts and information relevant to the insurance policy before the contract is formed. This principle ensures that both parties enter into the contract with a full understanding of the risks involved, and that there is no intentional or unintentional misrepresentation or fraud. The duty of utmost good faith applies throughout the life of the policy, which means that both parties must continue to disclose any material changes that occur during the policy period.

Maelezo ya Majibu

The fee paid for transporting goods by ship is called "freight". Freight is the cost charged by shipping companies or carriers for transporting goods or cargo from one place to another. The amount of freight charged depends on various factors, such as the weight and volume of the cargo, the distance between the origin and destination, the type of goods being transported, and the mode of transportation. Freight can be paid by the seller or buyer of the goods, depending on the agreed upon terms of the sale or contract.

Maelezo ya Majibu

The study to discover consumers' preference and needs is called market research. Market research is a process of collecting, analyzing and interpreting information about a market, product or service to identify consumer preferences, behavior, and needs. It helps businesses to understand their customers, make informed decisions, and develop effective marketing strategies. Market research can be conducted through various methods, such as surveys, interviews, focus groups, and observation.

Maelezo ya Majibu

Maelezo ya Majibu

Public enterprises are the business units that enjoy government subsidies. Public enterprises are government-owned businesses established to provide essential services to the public. They are created to provide goods and services that are deemed necessary but may not be profitable in the short run. Since public enterprises are owned and run by the government, they enjoy government subsidies and support. This allows them to provide essential goods and services to the public at lower prices than privately owned businesses. Examples of public enterprises include public utilities, public transportation systems, and state-owned banks.

Maelezo ya Majibu

Maelezo ya Majibu

Maelezo ya Majibu

An association that protects the interest of members in the same line of business is called a trade association. It is an organization made up of businesses and businesspeople in a particular industry or trade, who come together to protect their interests, share information and knowledge, and advocate for policies that benefit their industry. They often provide services such as market research, networking opportunities, and lobbying activities. Trade associations can help to promote their industry and provide support and assistance to their members.

Maelezo ya Majibu

The means of payment that makes the bank both the drawer and drawee is a bank draft. A bank draft is a type of check that is guaranteed by the issuing bank, and it is a prepaid instrument. The bank creates a draft, which is similar to a check, and it is made payable to the beneficiary. The issuing bank is responsible for making payment on the draft, so it is both the drawer (issuer) and the drawee (recipient of payment). This makes the payment secure and reliable since the bank guarantees payment.

Maelezo ya Majibu

The principle that prevented the owner from making a claim in this scenario is the principle of "proximate cause." This principle requires that the loss or damage must be caused by the peril that the insurance policy covers. In this case, the policy covered damages caused by flood, not fire. Therefore, since the cause of the loss was not due to the insured peril, the owner had no valid claim under the principle of proximate cause.

Maelezo ya Majibu

The correct option is "selling on credit" and this is because it can lead to the accumulation of bad debts which may eventually lead to the collapse of the retail business. When a retailer sells goods on credit, it means they are allowing the customer to take the goods without making immediate payment, with the expectation that the customer will pay later. However, if the customer fails to pay or delays payment, the retailer may have to incur costs to recover the debt, which can be a financial burden on the business. This can also cause cash flow problems and make it difficult for the retailer to pay their own bills and suppliers, ultimately affecting the sustainability of the business.

Maelezo ya Majibu

Equity interest in a company is represented by ordinary shares. When a person buys ordinary shares in a company, they become part owners of the company and have a claim to a portion of its assets and earnings. As a shareholder, they may receive dividends if the company declares them, and they may also have voting rights at shareholder meetings. The value of their investment in the company can rise or fall depending on the performance of the company and market conditions.

Maelezo ya Majibu

Branding is the practice of giving a particular name or symbol to a product by a manufacturer. It involves creating a unique identity for a product or service to differentiate it from those of competitors. The purpose of branding is to create a positive image of the product or service in the minds of customers and to make it easily identifiable. A strong brand can lead to increased customer loyalty, trust, and ultimately, increased sales. Branding can be done through various means, such as logos, slogans, packaging, and advertising.

Maelezo ya Majibu

Market segmentation refers to the process of dividing a larger market into smaller groups of consumers who share similar needs, interests, behaviors, or demographics. This allows businesses to create more targeted marketing strategies and tailor their products or services to specific segments of the market. By understanding the unique characteristics and preferences of each segment, businesses can better meet the needs of their customers and ultimately improve their sales and profitability. Therefore, the correct answer to the question is "market segmentation".

Maelezo ya Majibu

A cheque which the bank refused to pay because the drawer had insufficient funds in his account is known as a bounced cheque. This happens when the bank is unable to honour the payment due to insufficient funds in the account of the person who issued the cheque (drawer). A bounced cheque is also referred to as a dishonoured cheque or a returned cheque. The bank will mark the cheque as "bounced" and return it to the payee, and the drawer may have to pay additional fees or penalties to the bank.

Maelezo ya Majibu

Maelezo ya Majibu

To calculate the gross profit of BYX Enterprise, we need to subtract the cost of goods sold from the total sales revenue. Cost of goods sold = opening stock + purchases - closing stock = D6,000 + D23,000 - D8,000 = D21,000 Gross profit = sales - cost of goods sold = D30,000 - D21,000 = D9,000 Therefore, the gross profit by BYX Enterprise is D9,000.

Maelezo ya Majibu

A cheque made payable to a named person is an order cheque. An order cheque is a type of cheque that can only be paid to the person named on the cheque or to someone they have endorsed the cheque over to. This is different from a bearer cheque which can be paid to anyone who presents it to the bank. An order cheque can be crossed or uncrossed, and can also be post-dated, meaning it can only be cashed or deposited after a certain date.

Maelezo ya Majibu

Maelezo ya Majibu

Duty drawback refers to the refund of duties previously paid on goods that are either re-exported or used to produce goods that are exported. In other words, it is a mechanism that allows exporters to recover the duties paid on imported inputs used in the production of goods that are subsequently exported. This helps to reduce the cost of production and makes exports more competitive in the international market.

Maelezo ya Majibu

The rate of turnover refers to the number of times a company's inventory is sold and replaced within a given period. It is calculated by dividing the cost of goods sold by the average inventory value. Using the information provided, we can calculate the cost of goods sold by subtracting the closing stock of D8,000 from the cost of goods available for sale (opening stock + purchases) of D29,000. Cost of goods sold = D29,000 - D8,000 = D21,000 To find the average inventory value, we add the opening and closing stock values and divide by 2. Average inventory value = (D6,000 + D8,000)/2 = D7,000 Now we can calculate the rate of turnover by dividing the cost of goods sold by the average inventory value. Rate of turnover = Cost of goods sold / Average inventory value = D21,000 / D7,000 = 3 times Therefore, the rate of turnover by BYX Enterprise is 3 times.

Maelezo ya Majibu

The capital used in the day to day running of a business is called working capital. Working capital is the money that a company uses to fund its everyday operations such as paying salaries, purchasing inventory, and covering other operational expenses. It is calculated by subtracting current liabilities from current assets. Unlike fixed assets or investments, working capital is a short-term measure of a company's liquidity and is crucial to its day-to-day operations.

Maelezo ya Majibu

Foreign trade has several advantages, but it also has some disadvantages, one of which is that it encourages dumping. Dumping is a situation where a country exports goods at prices that are lower than their domestic prices or production costs. This practice may hurt domestic industries in the importing country, as the imported goods become cheaper and more attractive to consumers than locally produced goods. The result can be a loss of jobs in the domestic market and overall economic decline. Hence, while foreign trade can provide various benefits such as widening the world market, encouraging specialization, and providing varieties of goods, it also has its drawbacks.

Maelezo ya Majibu

A private limited liability company differs from a public limited liability company in that it does not issue its shares to the public. This means that the company's shares are owned by a small group of individuals or entities, such as family members or venture capitalists. In contrast, a public limited liability company can issue its shares to the public, allowing anyone to become a shareholder in the company. This can make it easier for the company to raise large amounts of capital but also comes with increased regulatory and reporting requirements. Additionally, both types of companies are separate legal entities from their owners, meaning that they have their own legal rights and obligations. The number of directors and being a going concern are not key distinguishing factors between private and public limited liability companies.

Maelezo ya Majibu

The reason for the failure of public corporations is inadequate funding. This means that the public corporation is not given enough financial resources to run its operations effectively. As a result, it may not be able to meet its obligations and may be forced to shut down. Inadequate funding can lead to poor performance, low productivity, and a decline in the quality of services provided. This can cause the public corporation to lose its customers and market share, ultimately leading to its failure. Other reasons such as legal requirement, political stability, and lack of competition can also contribute to the failure of public corporations, but inadequate funding is often the primary cause.

Maelezo ya Majibu

Advertising is the aid to trade that is used to stimulate demand for goods. Advertising involves promoting and publicizing products or services to potential customers. Through advertising, businesses can create awareness of their products, highlight their features and benefits, and convince potential customers to buy. Advertising can be done through various channels, such as print, television, radio, billboards, and social media, among others. By creating demand for goods, advertising helps businesses to increase their sales, revenue, and market share. Therefore, advertising is an important aid to trade that businesses use to promote their products and increase their customer base.

Maelezo ya Majibu

When a government acquires business enterprises formerly owned by individuals, it is termed "nationalization." Nationalization is a process whereby the government takes control of privately owned businesses and makes them public property. This can occur for various reasons, such as to increase state control over certain industries, to protect national interests, or to provide essential services to citizens. When the government takes over a business through nationalization, it assumes ownership and control of its operations, assets, and liabilities.

Maelezo ya Majibu

Stock is classified under current assets. Current assets are assets that are expected to be converted into cash within one year or less. Stock, also known as inventory, is a current asset because it represents the goods or products that a business has on hand and expects to sell within a year or less. Machinery, motor vehicle, and fittings are not classified as current assets because they are typically used by a business for more than a year and are not expected to be converted into cash in the short term.

Maelezo ya Majibu

The aid to trade that facilitates production ahead of demand is warehousing. Warehousing refers to the act of storing goods before they are sold. By storing goods in a warehouse, producers can produce goods in large quantities and store them until they are needed by consumers. This enables producers to take advantage of economies of scale and reduces the risk of stockouts. Therefore, warehousing helps to facilitate production ahead of demand by providing a means for producers to store excess inventory until it is needed by consumers.

Maelezo ya Majibu

A tax charged in proportion to the value of imported goods is called ad valorem. Ad valorem is a Latin term that means "according to value." The tax amount is calculated as a percentage of the total value of the imported goods. Ad valorem tax rates vary depending on the type of goods being imported and the country of origin. This type of tax is used by governments to generate revenue and protect domestic industries by making imported goods more expensive than local goods.

Maelezo ya Majibu

Maelezo ya Majibu

(a) Five functions of commercial banks

1. Accepting deposits: They receive money from the public into current, savings and fixed deposit accounts for safekeeping.
2. Lending money: They grant loans and overdrafts to individuals and businesses at interest.
3. Facilitating payments: They provide cheques, standing orders, credit transfers, cards and electronic transfers that enable customers to make and receive payments.
4. Agency services: They act on behalf of customers by paying bills, collecting dividends, buying and selling shares and executing standing instructions.
5. Safe custody of valuables: They keep documents, jewellery and other valuables safe in strong rooms and safe deposit boxes.

(Other acceptable functions: foreign exchange dealings, advisory services, issuing travellers cheques.)

(b) Five ways the central bank controls the commercial banks

1. Open market operations (OMO): The central bank buys or sells government securities in the money market. Selling securities reduces the cash available to commercial banks and their ability to lend, while buying increases it.
2. Bank (discount) rate: By raising the rate at which it lends to commercial banks, the central bank makes borrowing costly, forcing banks to raise their own lending rates and reduce credit; lowering it has the opposite effect.
3. Cash reserve ratio: It fixes the minimum percentage of total deposits that each bank must keep with the central bank. Raising the ratio reduces the money available for lending.
4. Liquidity ratio: It fixes the proportion of a bank's assets that must be held in liquid form. A higher liquidity ratio restricts the volume of credit banks can create.
5. Special directives and moral suasion: The central bank issues instructions and appeals to banks to expand or restrict lending to particular sectors of the economy, and may impose selective credit controls.

Maelezo ya Majibu

(a) Diagram showing the classes of occupation

(b) Meaning of occupation

Occupation is any lawful productive activity in which a person engages regularly in order to earn a living.

(c) Explanation of three classes of occupation

1. Industrial occupation: This consists of activities concerned with producing goods, either by extracting raw materials, manufacturing them into finished goods, or constructing buildings and other facilities. Example: mining.
2. Commercial occupation: This consists of activities that aid the distribution and exchange of goods and services from producers to consumers. It includes trade and aids to trade such as transport, banking, insurance and warehousing. Example: trading.
3. Direct service occupation: This consists of the rendering of personal or professional services which are useful but cannot be physically touched. Example: teaching.

Maelezo ya Majibu

(a) What is a contract?

A contract is a legally binding agreement between two or more persons which creates rights and obligations that can be enforced in a court of law. For an agreement to be a valid contract it must contain the essential elements of offer, acceptance, consideration, intention to create legal relations, capacity of the parties and genuine consent, and its purpose must be lawful.

(b) Four ways by which a contract can be discharged

1. Discharge by performance: A contract ends when both parties completely and exactly carry out the obligations they agreed to. Once each party has done what was promised, the contract is fulfilled and comes to an end.
2. Discharge by agreement: The parties may mutually agree to bring the contract to an end before performance, either by cancelling it, replacing it with a new contract (novation) or by waiver.
3. Discharge by breach: When one party fails to perform, refuses to perform or performs badly, the innocent party may treat the contract as discharged and sue for damages.
4. Discharge by frustration (impossibility of performance): A contract is discharged when, through no fault of either party, an unforeseen event such as destruction of the subject matter, death, or a change in the law makes performance impossible or illegal.

(Also acceptable: discharge by lapse of time or by operation of law.)

Maelezo ya Majibu

(a) The abbreviations in full

• (i) COD = Cash On Delivery
• (ii) CIF = Cost, Insurance and Freight
• (iii) FOB = Free On Board
• (iv) E and O.E. = Errors and Omissions Excepted

(b) Calculation

Cost of goods = N100,000. Trade practice is to deduct the quantity (trade) discount first, then calculate the cash discount on the reduced amount.

(i) Value of the quantity discount

\[ \text{Quantity discount} = 5\% \times N100{,}000 = \frac{5}{100} \times 100{,}000 = N5{,}000 \]

(ii) Value of the cash discount

Amount after quantity discount \(= 100{,}000 - 5{,}000 = N95{,}000\).

\[ \text{Cash discount} = 7\tfrac{1}{2}\% \times N95{,}000 = \frac{7.5}{100} \times 95{,}000 = N7{,}125 \]

(iii) Net amount payable by the buyer

\[ \text{Net amount} = 100{,}000 - 5{,}000 - 7{,}125 = N87{,}875 \]

The buyer therefore pays N87,875.

Maelezo ya Majibu

(a) Five reasons for government participation in business

1. To provide essential services: Government invests in services such as water, electricity, health and transport that are vital to citizens but may be unprofitable for private firms.
2. To prevent exploitation and monopoly: By running key industries, government stops private monopolies from charging excessive prices and exploiting consumers.
3. To generate revenue and employment: Public enterprises create jobs for citizens and provide additional income for the government.
4. To control strategic and sensitive industries: Industries connected with security and the economy, such as defence, mints and refineries, are kept under government to protect national interest.
5. To provide capital-intensive projects: Government undertakes projects requiring huge capital, such as railways, ports and dams, which private investors cannot easily finance.

(Also acceptable: to ensure even development of all regions and to check foreign domination of the economy.)

(b) Five problems encountered by government businesses

1. Inadequate capital: Government enterprises often depend on budget allocations that are insufficient and irregular, limiting their operations.
2. Poor management and inefficiency: Managers are often appointed on political grounds rather than merit, leading to low productivity and waste.
3. Bureaucracy and red tape: Decision-making is slow because of the many official channels and procedures that must be followed.
4. Corruption and mismanagement of funds: Public funds are frequently misappropriated, which leads to heavy losses.
5. Political interference: Frequent changes in government policy and undue interference by politicians disrupt planning and continuity of management.

Maelezo ya Majibu

(a) Five reasons why manufacturers advertise their products

1. To create awareness: Advertising informs consumers about the existence of a new product or an improvement to an existing one.
2. To increase sales: By persuading more people to buy, advertising expands demand and boosts the volume of sales and profit.
3. To create and retain a market: It helps the manufacturer to win new customers and keep existing ones loyal to the brand.
4. To meet or beat competition: Advertising helps a firm to distinguish its product from those of rivals and to hold or increase its share of the market.
5. To build brand image and goodwill: Continuous advertising creates a favourable image and reputation for the product and the company.

(Also acceptable: to educate consumers on how to use the product, to introduce the product to new markets.)

(b) Five reasons for the continued criticism of advertising

1. It increases the price of goods: The heavy cost of advertising is added to the selling price, so consumers pay more.
2. It is often misleading and deceptive: Some adverts exaggerate the quality of products and make false claims that mislead buyers.
3. It encourages wasteful spending: It persuades people to buy goods they do not really need, encouraging extravagance.
4. It can be offensive or immoral: Some advertisements are indecent, exploit fear or sex, or offend cultural and moral values.
5. It promotes harmful and monopolistic tendencies: It may glamorise harmful goods such as tobacco and alcohol, and heavy advertising by large firms can drive out small competitors.

Maelezo ya Majibu

(a) Five reasons for the presence of the customs and excise authority at seaports

1. Collection of import and export duties: They assess and collect duties and tariffs on goods entering and leaving the country, raising revenue for government.
2. Prevention of smuggling: They check vessels and cargo to stop the illegal movement of goods in and out of the country.
3. Enforcement of trade laws: They ensure that prohibited and restricted goods, such as hard drugs and expired products, are not imported or exported.
4. Compilation of trade statistics: They record the quantity and value of goods traded, which helps government in planning the balance of trade and payments.
5. Inspection and documentation of goods: They examine cargo and verify shipping documents to confirm that declarations are correct before goods are cleared.

(b) Five functions of the airport authority

1. Provision of airport facilities: It builds and maintains runways, terminals, hangars and other infrastructure needed for aircraft to land, take off and be serviced.
2. Air traffic control: It guides and controls the movement of aircraft in the air and on the ground to ensure safe landing and take-off.
3. Provision of security: It screens passengers, baggage and cargo and maintains security to protect lives, aircraft and property against attack.
4. Handling of passengers and cargo: It provides check-in, immigration, customs points and cargo-handling services for the smooth processing of travellers and goods.
5. Provision of navigational and safety aids: It supplies weather information, lighting, fire-fighting and rescue services to support safe air transport.

Maelezo ya Majibu

Explanatory notes on the insurance terms

(a) Subrogation

Subrogation is the principle by which, after an insurer has fully compensated the insured for a loss, the insurer takes over the legal rights and remedies of the insured in respect of the damaged or lost property. This prevents the insured from making a further gain by also recovering from a third party who caused the loss. For example, if an insured car is damaged by another driver and the insurer pays for the repairs, the insurer may then step into the shoes of the insured and sue the negligent driver to recover the amount paid. It supports the principle of indemnity by ensuring the insured is not paid twice for the same loss.

(b) Proximate cause

Proximate cause is the principle that an insurer is liable only for a loss that is directly and effectively caused by the risk insured against, without the intervention of any new and independent cause. It looks for the nearest, most dominant and effective cause of the loss rather than a remote one. If the actual cause of the loss is an insured peril, the claim is payable; if the effective cause is an excluded peril, the claim fails. For example, if a house insured against fire is damaged by water used to put out an insured fire, the proximate cause is fire and the claim is valid.

(c) Barratry

Barratry is a term used in marine insurance to describe any wrongful or fraudulent act deliberately committed by the master (captain) or crew of a ship against the interest of the ship owner or the owner of the cargo. Examples include the deliberate scuttling or sinking of the ship, setting it on fire, deserting it, or illegally selling the cargo. A loss arising from barratry is normally covered under a marine insurance policy because it is an act done without the consent of the owner.

Maelezo ya Majibu

(a) What is a vending machine?

A vending machine is an automatic, coin or card operated machine that dispenses goods such as soft drinks, snacks, sweets, cigarettes or tickets to a customer without the involvement of a shop attendant. The buyer inserts the correct money (coins, notes or a payment card) and the machine automatically releases the selected item. It is a form of automated retailing that allows goods to be sold at any time of the day.

(b) Six reasons why supermarkets are popular with shoppers

1. Wide variety of goods: A supermarket stocks a large range of products under one roof, so shoppers can buy many different items in a single visit.
2. Self-service and convenience: Goods are openly displayed on shelves and customers pick what they want at their own pace without waiting for an attendant.
3. Lower prices: Supermarkets buy in bulk and sell in large volumes, so they can charge lower prices and often offer discounts and special offers.
4. Fixed and clearly marked prices: All goods are price-tagged, so there is no bargaining and the shopper knows exactly what to pay.
5. Ample parking and pleasant environment: Most supermarkets provide car parks, air-conditioning, trolleys and a comfortable, well-lit shopping environment.
6. Time saving and one-stop shopping: Because many goods and services (including banking points and payment counters) are available in one place, shoppers save time.