JAMB UTME - Commerce - 2001
Question 2 Report
Pooling of risk in insurance means that?
Answer Details
Pooling of risk in insurance means that compensations are paid out of a common fund. When people purchase insurance, they pay premiums into a pool of funds managed by the insurance company. In the event that an insured person suffers a loss, such as damage to their property or an illness requiring medical treatment, the insurance company will use the premiums from the pool to compensate the insured for their loss. By pooling risks, the insurance company is able to spread the costs of losses across all policyholders, so that each individual does not bear the full cost of their own losses. This helps to protect individuals and businesses from financial losses that could be catastrophic, such as a fire that destroys a home or a business, or a serious illness that requires expensive medical treatment. Insurance companies use actuarial calculations and statistical analysis to determine the appropriate premiums to charge policyholders based on the level of risk they present, and the likelihood of losses occurring.
Question 3 Report
Which of the following best describes the classification of computer?
Answer Details
The best description of the classification of computers is "Mini-computer, Micro-computer and work station". This is because computers can be classified based on their size, processing power, and capabilities. Mini-computers are larger and more powerful than micro-computers, while workstations are specialized computers designed for a specific task. Therefore, the classification of computers is not based on just one factor but on several factors such as size, processing power, and capabilities.
Question 5 Report
A form of ownership which exploits the strength of one partner to remedy the weakness of the other is a?
Answer Details
Question 6 Report
The balance of payments of countries is
Question 7 Report
Which of the following services does a lawyer render?
Answer Details
A lawyer typically renders direct services. This means that the lawyer provides legal advice, represents clients in court, negotiates on their behalf, prepares legal documents, and carries out other activities directly related to the practice of law. Some lawyers may also provide indirect services, such as acting as consultants for businesses or other organizations, but the primary role of a lawyer is to provide direct legal services to clients. Therefore, direct services is the best answer to the question.
Question 9 Report
One of the main objectives of the Second-tier Securities Market in Nigeria is to
Answer Details
Question 12 Report
A factor necessary for siting a warehouse is nearness to
Answer Details
A factor necessary for siting a warehouse is nearness to consumers. This is because the main purpose of a warehouse is to store goods before they are distributed to the end consumers. Therefore, it is important for a warehouse to be located in close proximity to the target market to reduce transportation costs and ensure timely delivery of goods. Additionally, proximity to consumers allows for better inventory management and reduces the risk of stockouts.
Question 13 Report
Use the information below to answer question 20 and 21
Mr Awala is a retailer of a single product. he sells at the standard price. He gives a trade discount of 5%, quantity discount of 3% for a volume above 1000 units and a cash of discount of 2/10 net 30. the existing selling price of the product is N100 per units. Mr Bacus purchased 1500 units of the product on credit and promised to pay Mr. Awala in cash in the first 10 days after purchase.
The trade discount receivable by Mr Bacus is
Answer Details
Mr Awala offers a trade discount of 5% on the selling price of N100 per unit. So the trade discount receivable by Mr Bacus is: 5% of 100 * 1500 = N7,500 Therefore, the trade discount receivable by Mr Bacus is N7,500.
Question 15 Report
At the collapse of a business enterprise, the person appointed to dispose of all assets is called
Answer Details
When a business enterprise collapses, the person appointed to dispose of all the assets is called a liquidator. A liquidator is a person who is responsible for winding up the affairs of a company or an organization. They are appointed by the court or the creditors of the company to sell the assets of the company and distribute the proceeds among the creditors and shareholders. The liquidator's primary duty is to ensure that the assets are sold at the best possible price to maximize the returns to the creditors and shareholders.
Question 16 Report
A distinguishing characteristic of labour is that it is
Answer Details
The distinguishing characteristic of labor is that it is mobile. This means that labor can move from one place to another in search of employment opportunities. Unlike other factors of production, such as land and capital, labor can change locations easily, which gives workers the ability to respond to changes in the labor market. The mobility of labor also means that it can be more easily substituted or replaced than other factors of production.
Question 17 Report
The Nigerian Stock Exchange publishes a daily official list that gives full information on the?
Answer Details
The Nigerian Stock Exchange publishes a daily official list that gives full information on the changes in the prices and earnings of securities traded on the exchange. The official list provides up-to-date information on the market capitalization, share prices, and trading volumes of listed companies, as well as details on the performance of the various indices used to track the performance of the market. It also provides information on new listings, delistings, and other corporate actions affecting listed companies. The purpose of the official list is to provide transparency and accountability in the Nigerian capital market. It allows investors to make informed decisions about their investments, and helps to promote confidence and stability in the market. The official list is an important tool for market participants, regulators, and other stakeholders in the Nigerian financial system.
Question 18 Report
One of the reasons why wholesaling must continue is that?
Answer Details
The reason why wholesaling must continue is that wholesalers help bridge the gap between manufacturers and retailers. Wholesalers buy goods in large quantities from manufacturers and sell them in smaller quantities to retailers, who then sell to consumers. Wholesalers also provide a range of services to both manufacturers and retailers, including transportation, storage, financing, and technical advice. This makes it easier for manufacturers to distribute their products to a wider range of retailers and for retailers to access a broader range of products at competitive prices. Therefore, the wholesaling sector plays a crucial role in the distribution and marketing of goods, making it an important part of the economy.
Question 19 Report
The temporary working area of the central processing unit is called the?
Question 20 Report
A function organization structure is where?
Answer Details
In a functional organizational structure, staff who perform similar functions are grouped together. This means that employees who have similar roles and responsibilities are placed into departments that are focused on specific functions, such as finance, marketing, or human resources. This allows for specialization and expertise within each department, which can result in increased efficiency and productivity. The functional structure is often used in larger organizations where there is a need for clear divisions of labor and where departments must work together to achieve common goals.
Question 22 Report
The activities aimed at finding out customers' needs and satisfaction can be described as?
Answer Details
Question 25 Report
Proper disposal of waste by business firms is one way of discharging their?
Answer Details
Proper disposal of waste by business firms is one way of discharging their environmental responsibility. This means that companies have an obligation to protect the environment and prevent harm to people and the planet by disposing of their waste properly. Businesses should ensure that their waste management practices comply with environmental regulations and standards, and that they do not cause pollution or harm to the environment. By taking responsibility for their waste, companies can contribute to sustainable development and protect the health and well-being of communities and ecosystems.
Question 26 Report
The major difference between insurance and assurance is that while insurance
Answer Details
Question 27 Report
(i) Personal Savings
(ii) Retained Earnings
(iii) Accrued taxes
Which of the items above constitute internal sources of financing for companies?
Question 28 Report
Use the information below to answer 38 and 39.
Companies i, ii, iii and iv produce and sell electronic videos.
Company i, sells video for N14,000 each and offers advice on how to fix and operate them .
Company ii, sells at N14,000 and its representatives go to install at no additional cost.
Company iii, sells at N15,500 and offers credit sales at N15,000 each.
Which of these companies are more engaged in public activities?
Answer Details
Companies i and ii are more engaged in public activities. Company i offers advice on how to fix and operate the electronic videos, which is a form of public service. This can help customers understand the product better and maximize its potential. Company ii sends representatives to install the videos at no additional cost, which is another form of public service. This can save customers time and money and provide them with a hassle-free installation experience. On the other hand, companies iii and iv do not offer any public activities. Company iii only offers credit sales at a discounted price, which is a marketing strategy aimed at increasing sales. Company iv is not even mentioned in the information provided.
Question 29 Report
One major advantage of a credit and thrift cooperative is that
Answer Details
A credit and thrift cooperative has several advantages, but one major advantage is that it encourages saving habits. Members of the cooperative pool their savings and can access credit facilities at reasonable rates. By saving, members can meet their financial goals, such as acquiring assets or starting a business. Additionally, members can also invest their savings in various cooperative projects that generate income. Overall, a credit and thrift cooperative promotes a culture of thriftiness and financial discipline, which can lead to long-term financial stability for its members.
Question 30 Report
The financial instrument for borrowing in which the collateral is usually more than the amount borrowed is?
Answer Details
The financial instrument for borrowing in which the collateral is usually more than the amount borrowed is a "mortgage bond". A mortgage bond is a type of bond secured by specific assets, such as real estate or other property, which serves as collateral to protect the lender in case of default. In the case of mortgage bonds, the collateral is usually a pool of mortgage loans made by the issuer. This means that the value of the collateral typically exceeds the value of the bonds issued, making it a more secure form of borrowing for investors.
Question 31 Report
Bank Giro is a method of settling debt from a
Answer Details
Bank Giro is a method of settling debt from a customer to a bank. It involves the use of a pre-printed slip that is filled by the debtor (customer) with details of the payment to be made, such as the account number, amount, and other relevant information. The slip is then deposited at the bank, which processes the payment and credits the amount to the creditor's account. This method is commonly used for settling bills, loan repayments, and other types of payments.
Question 32 Report
Departmentalization is an aspect of?
Answer Details
Departmentalization is an aspect of organizing in management. It involves the grouping of activities and tasks into specialized units or departments based on the functions, products, geography, or customers of the organization. The purpose of departmentalization is to create a more efficient and effective organizational structure, where tasks are assigned to specific departments and employees with specialized skills can focus on their assigned tasks. Departmentalization can help to improve communication, increase accountability, and facilitate coordination between different areas of the organization. Departmentalization is an important aspect of organizing because it provides a framework for the allocation of resources and the delegation of responsibilities. By dividing the organization into smaller units, managers can more easily monitor and control the activities of their subordinates, and ensure that everyone is working towards the same goals.
Question 33 Report
The major procedures in the purchase and sale of goods are enquiry
Answer Details
The major procedures in the purchase and sale of goods usually involve several steps. The first step is usually an enquiry, where the buyer expresses interest in purchasing a product and asks for more information. After the enquiry, the seller usually provides a quotation, which is a document that outlines the price and terms of the sale. If the buyer agrees to the quotation, they will place an order, which is a formal request to purchase the product. The seller will then prepare an invoice, which is a document that outlines the details of the sale, including the price, quantity, and payment terms. Therefore, the major procedures in the purchase and sale of goods are enquiry, quotation, order, and invoice.
Question 35 Report
One of the major function of a chamber of commerce is to
Answer Details
A chamber of commerce is an association of businesses and organizations that work together to promote and protect trade, industry, and agriculture. One of its major functions is to provide a platform for businesses to network and collaborate with one another. The chamber of commerce also serves as an advocate for its members by representing their interests to government agencies and other organizations. Additionally, the chamber may provide services such as advising members on regulations of other countries, settling disputes that arise out of trade, and publishing books and periodicals desired by members.
Question 38 Report
The most effective type of advertising for branded product is?
Answer Details
The most effective type of advertising for a branded product depends on various factors such as the product itself, the target audience, and the marketing budget. However, competitive advertising can be considered as the most effective type of advertising for branded products. Competitive advertising involves comparing the features, quality, and benefits of a product with those of its competitors to highlight the superiority of the branded product. This type of advertising appeals to customers who are looking for the best value for their money and want to make informed purchase decisions. Competitive advertising can also help to establish brand loyalty and increase market share. However, it is important to ensure that the comparisons made in the advertising are fair, accurate, and not misleading.
Question 39 Report
One of the main obstacles of establishing the Niger River Basin Commission was to?
Question 40 Report
Land as a factor of production does not vary in?
Answer Details
Land as a factor of production refers to the natural resources such as soil, water, minerals, and forests that are used to produce goods and services. The quantity of land is fixed, meaning that it does not vary. The nature of land also remains constant, which means that it cannot be altered by human action. However, the quality of land can be improved or degraded depending on how it is managed. The cost of land may vary based on factors such as location and demand, but the land itself remains the same in terms of quantity and nature.
Question 41 Report
One major characteristic of credit unions and thrift societies is that?
Answer Details
Question 42 Report
Entrusting the management of a company to the courts to enable the settlement of the company’s obligations is an indication of?
Answer Details
Entrusting the management of a company to the courts to enable the settlement of the company's obligations is an indication of bankruptcy. This happens when a company is unable to pay off its debts and obligations to creditors, and its assets are not enough to cover these debts. When a company becomes bankrupt, its management is usually handed over to the courts, and the assets of the company are liquidated to pay off its creditors. This process is aimed at ensuring that the creditors of the company are able to recover as much of their debt as possible, and also to bring closure to the affairs of the company.
Question 43 Report
If Mr. Bacus fulfills his promise, he will be entitled to a cash discount of?
Answer Details
Question 44 Report
The difference between total current assets and total current liabilities of a business is known as
Answer Details
The difference between total current assets and total current liabilities of a business is known as working capital. It represents the funds available to a business for its day-to-day operations, such as paying bills and purchasing inventory. Working capital is an important measure of a company's financial health, as it indicates whether it has sufficient resources to continue operating in the short term. A positive working capital means that a company has enough assets to cover its short-term obligations, while a negative working capital indicates that a company may face difficulties in meeting its financial obligations.
Question 45 Report
The pivot on the wheel of commerce rotates is
Answer Details
The pivot on the wheel of commerce is trade. Trade is the exchange of goods and services between buyers and sellers. It is the buying and selling of goods and services at different prices, with the aim of making a profit. Trade is the foundation of commerce, and it involves the movement of goods and services from the point of production to the point of consumption. Without trade, commerce would not exist.
Question 46 Report
Use the information below to answer question 40 and 41.
Musa rented a room to adamu for N1,500 and N1,000 part-payment was made. Adamu brought Audu and Jacob his friends to stay in the room.
The two friends later paid balance of N500 to Musa.
Who are the parties to the contract of renting the room?
Answer Details
The parties to the contract of renting the room are Musa and Adamu. Musa rented the room to Adamu for N1,500, and part-payment of N1,000 was made by Adamu. This means that Musa and Adamu are the original parties to the contract. Audu and Jacob are not parties to the contract because they were not involved in the original agreement to rent the room. However, Audu and Jacob are subtenants of Adamu and may have a separate agreement with him regarding the use of the room.
Question 48 Report
The partner that only contributes part of the capital used in the formation and running of a business is known as?
Answer Details
Question 49 Report
The maximum number of shareholders in a public liability company is?
Answer Details
The maximum number of shareholders in a public liability company is unlimited. A public liability company (PLC) is a type of business structure in which ownership is divided into shares and the company is publicly traded on a stock exchange. As a result, there is no limit to the number of shareholders who can hold shares in a PLC. In contrast, a private limited company (Ltd) has a limit on the number of shareholders, which is typically set at a maximum of 50. This means that a private limited company cannot sell its shares to the general public. In summary, the maximum number of shareholders in a public liability company is unlimited, while a private limited company has a maximum of 50 shareholders.
Question 50 Report
The main factors that determine the value of a stock on the stock Exchange are dividend and
Answer Details
When you buy a share of stock, you essentially become a part-owner of the company. As a part-owner, you are entitled to receive a share of the company's profits in the form of dividends. The value of a stock on the stock exchange is largely determined by the dividends the company pays out to its shareholders. Another important factor that influences the value of a stock is capital gain, which is the difference between the price you paid for the stock and the price you sell it for. Capital appreciation, which refers to the increase in the value of a stock over time, is also an important factor that affects its value. Warrant payment, on the other hand, is a separate financial instrument that gives the holder the right to buy or sell a stock at a certain price and time, and does not directly affect the value of the stock itself.
