JAMB UTME - Commerce - 2024

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

Answer Details

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.

The documents sent by the suppliers of good to a prospective buyer, informing him of what to pay if he buys the good is

Answer Details

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

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

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

Answer Details

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

Answer Details

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.

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

Answer Details

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.

The first Nigerian enterprises promotion decree was promulgated in

Answer Details

The Nigerian Enterprises Promotion Decree of 1973, also known as the Indigenization Decree, was a significant policy implemented by the Nigerian government aimed at promoting indigenous participation and ownership in the country's economy. The decree outlined provisions for the transfer of ownership and control of certain businesses from foreign owners to Nigerian citizens.

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

Answer Details

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.

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

Answer Details

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.

Answer Details

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

Let's examine each option:

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

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

Answer Details

An agreement that is enforceable in law is called a contract.

Here's why:

1. A contract is a legal agreement between two or more parties. Each party agrees to do or not to do something in exchange for some benefit, typically referred to as consideration. In simpler terms, it's a promise or set of promises that the law will enforce.

2. For an agreement to be considered a contract, it generally must contain the following elements:

• Offer: One party proposes an arrangement to another.
• Acceptance: The other party agrees to the terms of the offer.
• Consideration: There is something of value exchanged between the parties.
• Mutual Intent: Both parties intend to create a binding agreement.
• Capacity: Both parties must have the legal ability to enter into a contract.
• Legality: The contract's purpose must be legal.

3. Unlike a decree or a declaration which are generally formal statements or orders typically issued by a government or authority, or an offer which is a proposal but not yet binding, a contract actively binds the parties involved and can be enforced by law. If one party fails to fulfill their stipulated duties, the other can seek legal remedies.

A multiple shop has many stores which sell

Answer Details

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.

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

Answer Details

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.

Departmental store, supermarket and chain store are examples of

Answer Details

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

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


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


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

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

The principle of insurance which ensures that an individual is restored to his former position after suffering a loss is

Answer Details

The principle of insurance that ensures an individual is restored to his former position after suffering a loss is the principle of indemnity. This principle is based on the idea that insurance is meant to compensate for the financial loss or damage suffered, and nothing more. It ensures that the insured party is not put in a better position than they were before the loss. The goal is simply to bring the insured back to the status they were at before the loss occurred. In essence, indemnity prevents the insured from profiting from an insurance claim, ensuring that they are compensated fairly and justly for their actual loss.

Answer Details

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 person who runs a business on his own account is called a

Answer Details

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

Here's a simple way to understand this:

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

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

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

The breaking down of work into different processes is known as

Answer Details

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.

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

Answer Details

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.

All the following are principles of insurance EXCEPT

Answer Details

In insurance, there are several fundamental principles that ensure the contractual agreement between the insurer and the insured is fair and effective. Among these principles, three are well-known:

Insurable Interest: This principle states that the insured must have a financial stake in the object or life insured. The policyholder should suffer a financial loss if the insured event occurs. This ensures that insurance is not a mere gambling proposition.

Utmost Good Faith (Uberrimae Fidei): Both parties involved in an insurance contract are required to disclose all relevant information truthfully. The insured must reveal all material facts, and the insurer should provide honest terms and conditions.

Subrogation: After compensating the insured for a loss, the insurer may step into the shoes of the insured to seek recovery from a third party responsible for the loss. This principle prevents the insured from profiting more than once for the same loss.

On the other hand, the term "Particular Average" is not one of the fundamental principles of insurance. Instead, it is a maritime insurance term used to describe partial loss or damage to a ship or its cargo that is not shared by all parties but borne only by the individual whose cargo was damaged. Therefore, among the options provided, "particular average" is the exception as it is not a principle of insurance.

Bonded warehouse is controlled and supervised by

Answer Details

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 service rendered by NIPOST in which letters are addressed to any post office to await collection by the addressee is known as

Answer Details

The Free post service allows individuals to send letters or parcels to any post office without the need to pay for postage upfront. The addressee can then collect the item from the designated post office upon presentation of proper identification.

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

Answer Details

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

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

Banks issue cheque books to customers holding ___________ accounts.

Answer Details

Banks issue cheque books to customers holding current accounts.

Let me explain why:

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

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

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

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

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

Use the information below to answer this question.
Aisha sold her wristwatch to Halima for #2,000.00 and she paid. The sum of #2,000.00 is the

Answer Details

The sum of #2,000.00 in the transaction between Aisha and Halima is referred to as the consideration. In contracts and transactions, particularly in legal terms, a consideration is something of value that is exchanged between parties involved in an agreement. It can be in the form of money, goods, services, or a promise to act or refrain from acting. In this case, Halima paid Aisha #2,000.00 as a consideration for the wristwatch. This makes the transaction a valid contract where the consideration is the monetary amount exchanged for the wristwatch.

A contract in which all parties to the contract have carried out their obligation is said to be terminated by

Answer Details

A contract in which all parties have fully met their obligations is said to be terminated by performance.

Here's an explanation:

• When a contract is terminated by performance, it means that all the parties involved have successfully carried out the duties and promises as outlined in the contract. Each party has done what they agreed to do, and once this has been completed, the contract comes to an end naturally.
• For instance, if a person hires a painter to paint their house and the painter completes the job to the agreed specifications, then the contract is terminated by performance. Both parties have fulfilled their end of the agreement: the homeowner has paid, and the painter has completed the work.

A tax paid on goods manufactured and consumed in your country is called

Answer Details

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

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

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

Answer Details

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.

Which of the following is NOT an aim of advertising?

Answer Details

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 act of being on one job for expertise is called

Answer Details

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

Answer Details

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.

The rules and regulations guiding the conduct of business transactions are known as law

Answer Details

In the context of **business transactions**, the rules and regulations that govern them are primarily known as **commercial law**. This is because **commercial law deals specifically with the legal aspects of business and trade**, and it includes a variety of laws that regulate how businesses operate, how they interact with other businesses, and how consumers are protected in these transactions.

Other laws mentioned, such as:

• Criminal law: Generally pertains to crimes and legal penalties for offenses against the state or public, rather than specific business transactions.
• Common law: Represents a body of unwritten laws based on legal precedents and is applicable in judicial decisions but is not specific to business laws.
• Contract law: Governs agreements between parties but is a subset of commercial law, specifically focusing on agreements and obligations within a business context.

Therefore, when discussing the guidelines and frameworks for business transactions specifically, **commercial law** is the umbrella under which these rules and regulations fall.

One of the easiest means of transporting petroleum product is by

Answer Details

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.

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

Answer Details

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 main objective of nationalization of industries is to

Answer Details

Nationalization of industries is primarily aimed at bringing an industry under state ownership and control. This means that the government takes ownership of certain industries or sectors, rather than leaving them in private or foreign hands.

There are several reasons a government might choose to nationalize an industry:

1. Ensure National Control: Nationalization is used to ensure that important industries, such as natural resources or critical infrastructure, remain under national control and are protected from foreign influence or exploitation.

2. Social Welfare: The state can prioritize social welfare over profit by ensuring that essential goods and services (like electricity, water, and healthcare) are accessible and affordable to all citizens.

3. Economic Stability: By owning and controlling key industries, the government can directly influence economic activities, stabilize markets, and support strategic economic goals. This can include preventing firms from liquidation in cases where those firms are crucial for national economic stability.

4. Redistribution of Wealth: Nationalization can be a tool for redistributing wealth, particularly if industries are previously owned by a small, wealthy segment of the population or foreign entities.

5. Promote Employment: The government may aim to maintain or increase employment opportunities in crucial industries by keeping them operational and under state management.

Overall, while making profits for the government can be a benefit of nationalization, the primary objective is often that of exercising control over key industries for the aforementioned strategic and social reasons.

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

Answer Details

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.

One of the following does NOT fit into the group.

Answer Details

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.

Which of the following forms part of a company's Article of Association?

Answer Details

The name of the company is an essential component of the Articles of Association. It specifies the legal name under which the company operates and is registered.

Answer Details

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.

Tariff can be defined as a compulsory levy on

Answer Details

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.

Stock exchange quoted the shares of ABC Plc at #0.75K for #1.25K per share. This means the shares were sold at a

Answer Details

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

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

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