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Question 1 Report
The components of a balance of payments account are
Answer Details
The balance of payments (BOP) is a record of all economic transactions between residents of one country and residents of other countries over a specific period. It is divided into three main components, which are: Current, Capital and Monetary movement (financial) account.
Question 2 Report
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.
Question 3 Report
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.
Question 4 Report
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.
Question 5 Report
Prospectus in relation to a public limited inability company means
Answer Details
In the context of a public limited company, a prospectus refers to a formal document that is issued by the company to provide essential information to potential investors. It serves as an invitation to the public to buy shares in the company.
The main purpose of the prospectus is to help potential investors make informed decisions about whether or not to invest in the company's shares. It typically contains details such as:
The prospectus is a crucial document because it ensures transparency and allows investors to assess the potential risks and rewards involved in purchasing shares from the company.
Question 6 Report
Which of the following is NOT part of Pre-Sales Service/ice?
Answer Details
Pre-sales services are the activities and support provided to potential buyers before the actual sale takes place. These services aim to assist customers in making informed purchasing decisions and to facilitate a smooth sales process. They typically include activities such as providing information about the products, answering inquiries, and assisting with product selection. However, granting credit or hire purchase sales facilities is not typically considered a pre-sales service.
Question 7 Report
Branding is the assigning of trade marks to goods for the purpose of......... by the public.
Answer Details
Branding is the assigning of trademarks to goods for the purpose of identification by the public. This means that branding helps consumers easily recognize and differentiate a particular product from other similar products in the market. Trademarks can be logos, symbols, names, or a combination of these elements that represent a brand. By having a unique and consistent brand identity, companies ensure that their products are easily identifiable by consumers, facilitating customer trust and loyalty. In essence, branding provides a way for the public to identify and remember the products of a specific manufacturer or company.
Question 8 Report
Shares are said to be sold at a discount when they are sold
Answer Details
Shares are said to be sold at a discount when they are sold below par value. In finance, the par value of a share is its nominal or face value as stated on the certificate or in the company's financial statements. The par value is typically set when the company is formed and does not usually change.
Selling shares below this par value means that the company is offering them at a lower price than their nominal value. This can occur as a strategy to attract investors when market conditions are tough, or if the company needs to raise capital quickly.
For example: If the par value of a share is $10 and it is sold for $8, it is being sold at a discount of $2 from its par value.
It's important to note that selling shares below par can have implications for a company's perceived financial health and can affect investor confidence. Therefore, companies may do this strategically and with consideration of market reactions.
Question 9 Report
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.
Question 10 Report
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.
Question 11 Report
Which of the following types of insurance is usually excluded from the principle of indemnity?
Answer Details
The principle of indemnity in insurance states that an insured should not profit from a loss but rather be restored to their financial position prior to the loss. This principle is applied to prevent the insured from benefiting financially from an insurance claim.
Among the options provided, Life Insurance is usually excluded from the principle of indemnity. In the case of life insurance, it is not possible to quantify the loss of life in monetary terms and therefore indemnification in its traditional sense does not apply. Instead, life insurance works on a principle of paying out a specified sum when the insured event (death or specified incident) happens.
Other types of insurance like Fire, Fidelity Guarantee, and Marine are indemnity-based, meaning the payout aims to cover the actual financial loss. For example, if a fire damages property, the insurance payout is based on the value of the property destroyed. Similarly, fidelity guarantee insurance covers loss due to employee dishonesty, and marine insurance compensates for damage or loss of goods during transit. Therefore, these fall under the principle of indemnity.
In summary, life insurance is excluded from the principle of indemnity because it deals with the incalculable loss of a life by providing a predetermined benefit rather than a directly quantifiable financial covering of loss.
Question 12 Report
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.
Question 13 Report
Fishing is an example of
Answer Details
Fishing is an example of the extractive industry. This industry involves activities that extract natural resources from the earth or water bodies. In the case of fishing, it means obtaining fish and other sea creatures from oceans, rivers, and lakes. The extractive industry is characterized by the removal of raw materials from their natural environment without any transformation into other forms before they are further processed, utilized, or consumed.
For example, when fishermen catch fish, they are directly taking resources from nature without altering them. These resources can either be directly consumed or processed into different products, depending on the demand and usage.
Question 14 Report
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:
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.
Question 15 Report
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:
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.
Question 16 Report
An instruction to an agent abroad restricting him to buy from a named manufacturer is known as
Answer Details
The instruction given to an agent abroad restricting him to buy from a specific or named manufacturer is known as a closed indent.
Let me explain it in a straightforward way:
1. **Indent:** This is a purchase order sent by a buyer to an agent or supplier to buy goods on their behalf. It contains details about the product, quantity, and specifications.
2. **Closed Indent:** This type of indent indicates that the buyer has decided to purchase products from a particular, specified manufacturer or supplier. The agent must comply with this restriction while procuring the goods. The buyer has already made a choice, and the agent is simply carrying out their instructions.
In contrast, an **open indent** allows the agent to choose the manufacturer or supplier from whom to buy the goods, as long as the buyer’s requirements are met. So, the key difference is the level of freedom or restriction given to the agent in selecting the supplier.
Question 17 Report
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.
Question 18 Report
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:
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.
Question 19 Report
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.
Question 20 Report
Which of the following services is NOT rendered by NITEL?
Answer Details
The service that is NOT rendered by NITEL is Recorded Delivery.
Explanation:
NITEL, which stands for Nigerian Telecommunications Limited, was mainly involved in providing telecommunications services in Nigeria. Its core services included:
On the other hand, Recorded Delivery is a service typically offered by postal services, not telecommunication companies. It involves sending mail with proof of mailing and, sometimes, delivery confirmation. This ensures that mailed items are tracked and delivered securely.
Question 21 Report
A ship which has no fixed schedule and travels wherever it can find cargoes to carry is a
Answer Details
A ship that does not have a fixed schedule and travels wherever it can find cargoes to carry is known as a tramp ship.
Here's why it is called a tramp ship:
Tramp ships operate differently from other types of vessels, such as liners or ferry boats. They do not follow a set route or schedule. Instead, they are flexible and can go to any port where there is cargo to be transported. This means that their operations are based on demand rather than a predetermined timetable.
To put it simply, a tramp ship is like a freelance vessel that looks for cargo opportunities and travels based on where the work is, rather than sticking to a specific route or timeline. This provides a degree of freedom and responsiveness to market demands that fixed-schedule ships, like liners, do not have.
Question 22 Report
Obi received a cheque for #1000 from Mr. Ade and this cheque was stolen. He must
Answer Details
If Obi received a cheque from Mr. Ade and it was stolen, the appropriate course of action would be to inform Mr. Ade to tell his bank to stop payment on the cheque. Here’s why:
1. Informing Mr. Ade: Obi should immediately inform Mr. Ade because the cheque belongs to Mr. Ade and he is the one who can authorize the bank to stop payment. The cheque is drawn from Mr. Ade's account, so his bank is the one that needs to be notified to prevent the cheque from being cashed by an unauthorized party.
2. Stopping Payment: By stopping the payment, Mr. Ade ensures that if someone tries to cash or deposit the stolen cheque, the bank will reject it, thus preventing any unauthorized withdrawal of funds from Mr. Ade's account.
3. Legality and Authorization: Obi cannot directly stop payment with Mr. Ade's bank because he is not the account holder, and the bank will not act on Obi’s request without Mr. Ade's authorization.
4. Request for Replacement: Once Mr. Ade has successfully stopped payment on the stolen cheque, Obi can politely request Mr. Ade for a replacement cheque, assuming the situation is amicable and Mr. Ade is willing to issue another cheque.
In summary, the first step is to inform Mr. Ade so he can take the necessary action with his bank.
Question 23 Report
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.
Question 24 Report
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:
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.
Question 25 Report
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:
Question 26 Report
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.
Question 27 Report
The sum which the insured pays periodically to his insurance company is called
Answer Details
The sum which the insured pays periodically to his insurance company is called a premium.
Explanation:
When you purchase an insurance policy, whether it's for health, life, car, or any other type of insurance, you agree to pay a certain amount of money at regular intervals to the insurance company. This amount is known as the premium. The premium is the cost you pay to the insurance company so that they will provide you with coverage and financial protection against specified risks.
Insurance companies calculate your premium based on various factors including the type of insurance, the amount of coverage you want, your age, your health (for health or life insurance), and other risk factors. In return for paying your premium, the insurance company promises to cover certain costs or losses as outlined in your policy.
Question 28 Report
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.
Question 29 Report
Answer Details
The relationship between a country's visible imports and exports in a trading year is known as the balance of trade.
To understand this concept, think of it as a way to measure how much a country is buying from other countries (imports) compared to how much it is selling to other countries (exports). When we talk about "visible" imports and exports, we refer to tangible goods like cars, food products, electronics, etc., that you can see, touch, and feel.
The balance of trade is essentially the difference in value between a country's visible exports and visible imports. If a country exports more than it imports, it has a trade surplus. Conversely, if it imports more than it exports, it has a trade deficit.
This concept is crucial because it gives insights into a country's economic health. A trade surplus might indicate a strong economy, whereas a trade deficit might suggest dependency on other nations for goods.
In summary, the balance of trade helps us understand the economic relationship between a country and its trading partners by showing whether the country has a surplus or deficit in its visible goods trade. Other terms like counter trade, international trade, and balance of payment have different meanings in economics and should not be confused with the balance of trade.
Question 30 Report
The policy designed to accelerate the greater participation of Nigerians in the ownership and management of business enterprises in Nigeria is called
Answer Details
The policy designed to accelerate the greater participation of Nigerians in the ownership and management of business enterprises in Nigeria is called Indigenization.
Indigenization refers to efforts and policies implemented to transfer ownership and control of enterprises and resources from foreign and non-national entities to the nationals of a country. The aim is to increase the involvement of local citizens in the economy of their country, ensuring that they have a substantial stake in the economic activities.
In the context of Nigeria, the indigenization policy was meant to empower Nigerians by enabling them to own and manage businesses. This was achieved by legally requiring certain levels of Nigerian ownership and participation in various sectors of the economy. Such policies were put in place to reduce foreign control and ensure that the wealth generated within the country contributed to national development and was accessible to the citizens of Nigeria.
Question 31 Report
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.
Question 32 Report
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:
Question 33 Report
The advertising medium which uses electric current in bulbs is referred to as
Answer Details
The advertising medium you are referring to is neon signs. Neon signs are a type of advertising and signage that use electrified, glowing tubes or bulbs that contain neon gas. When an electric current is passed through the gas, it emits light, creating a bright and eye-catching display. Neon signs are popular because they are highly visible at night and can be customized in various shapes, sizes, and colors. They are often used for attracting attention to businesses or special promotions.
Question 34 Report
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.
Therefore, the correct and precise term for closing stock is Ending Inventory.
Question 35 Report
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.
Question 36 Report
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.
Question 37 Report
The document which gives complete information about the goods sold is the
Answer Details
The document that provides complete information about the goods sold is the invoice.
An invoice is a detailed statement provided by the seller to the buyer containing important information regarding the sale of goods. Here’s why it is deemed so comprehensive:
In contrast, the order form is a document generated by the buyer to request goods but doesn't contain the details of the actual sale. A delivery note accompanies goods to confirm delivery but lacks pricing and terms. Lastly, a bill of exchange is a financial document used for payment agreements, not for detailing goods sold.
Therefore, the invoice is the key document providing complete information about the goods sold.
Question 38 Report
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:
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.
Question 39 Report
The functions of public corporations include the following EXCEPT
Answer Details
Public corporations are established primarily to serve the interests of society, offering critical services and contributing to the economic well-being of the community. Let's explore the functions mentioned:
In conclusion, the function that does not align with the objectives of public corporations is maximizing profits for the board members. These entities prioritize public service over profit maximization.
Question 40 Report
A public limited liability company is owned by
Answer Details
A Public Limited Liability Company is owned by shareholders. These are individuals or entities that own shares in the company. Each share represents a portion of ownership, so the more shares an individual or entity owns, the more ownership they have in the company. Shareholders have the right to vote on important company matters, including the election of the board of directors and major company policies.
It is important to note that although the shares of a public limited liability company are available for purchase by the general public on the stock exchange, the term "general public" refers to potential or current investors and does not mean that the general public owns the company. Ownership is exclusively linked to those who buy shares, making them shareholders.
Neither the government nor debenture holders own the company. The government may regulate the company but does not hold ownership unless it has explicitly purchased shares. Debenture holders are lenders to the company, holding debt instruments rather than equity, so they do not have ownership rights. Their relationship with the company is typically based on the repayment of debt with interest, rather than ownership.
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