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Question 1 Report
A document that lists the goods that are being sent from one place to another is
Answer Details
A document that lists the goods that are being sent from one place to another is called a **bill of lading**. This document serves as a contract between the shipper and the carrier and provides detailed information about the goods being transported. It acts as a receipt, evidence of ownership, and a document of title for the goods. The bill of lading includes important information such as the description of the goods, quantity, weight, packaging details, names of parties involved, departure and destination points, and any special instructions or conditions for transportation. It is an essential document in international trade and helps ensure the smooth and secure movement of goods from one place to another.
Question 2 Report
An announcement of a person's willingness to enter into a contract is referred to as
Answer Details
The correct answer is an offer.
An offer is an announcement made by a person expressing their willingness to enter into a contract. It is a clear and definite proposal that outlines the terms and conditions of the contract.
Think of it as an invitation to negotiate. When someone makes an offer, they are essentially saying "I am willing to do this, under these conditions." It is important to remember that an offer must be communicated to the other party, indicating a genuine intention to be bound by the terms mentioned.
For example, if someone offers to sell their car for $10,000, they are making an offer to enter into a contract to sell the car at that price. So, in summary, an offer is the announcement of someone's willingness to enter into a contract.
Question 3 Report
Current account holders withdraw money through
Answer Details
Current account holders can withdraw money from their accounts using different methods. **1. Transfers:** One of the common ways to withdraw money from a current account is through transfers. This involves transferring funds electronically from the current account to another bank account. You can initiate a transfer by providing the recipient's bank account details such as their bank name, account number, and sort code. This method is often used for making payments to individuals or businesses. **2. Credit Cards:** Another method is through the use of credit cards. If your current account is linked to a credit card, you can withdraw money by using the card at an ATM or making cash advances at a bank or financial institution. It's important to note that using a credit card for cash withdrawals may incur additional fees or interest charges, so it's advisable to check the terms and conditions of your credit card provider. **3. Withdrawal Form:** Some banks may also provide a withdrawal form that you can fill out to withdraw cash from your current account. This form usually requires you to specify the amount you wish to withdraw and your account details. Once the form is completed, you can submit it to the bank, and they will process the withdrawal accordingly. **4. Cheque:** Lastly, current account holders can withdraw money by writing a cheque. A cheque is a paper document that instructs the bank to pay a specific amount from your account to the person or organization named on the cheque. The recipient can then deposit or cash the cheque to access the funds. It's worth noting that the use of cheques is becoming less common due to the increasing popularity of electronic payment methods. Overall, these are some of the ways current account holders can withdraw money from their accounts. The choice of method depends on personal preference, accessibility, and the specific services offered by the bank.
Question 4 Report
At the collapse of a business enterprises, the person appointed to dispose off the assets is called
Answer Details
The person who is appointed to dispose off the assets at the collapse of a business enterprise is called a liquidator.
A liquidator is an individual or a professional firm that specializes in winding up the affairs of a company when it is unable to pay its debts or when it is being voluntarily dissolved. The role of a liquidator is to ensure that the assets of the company are efficiently sold or distributed in order to repay the creditors and stakeholders.
Their primary responsibility is to maximize the value of the assets and distribute the proceeds fairly among the various parties involved. To achieve this, a liquidator may use various methods such as organizing auctions, negotiating with potential buyers, or selling the assets through brokers. They also handle legal matters and ensure that the company's liabilities are adequately settled.
Additionally, a liquidator may also be responsible for dealing with employee redundancies and managing any ongoing legal disputes. In summary, the main duty of a liquidator is to oversee the process of selling off the assets of a business entity in order to settle its debts and obligations.
Their goal is to maximize returns for creditors and stakeholders while following legal protocols and ensuring a fair distribution of the proceeds.
Question 5 Report
Any activity directed at conveying commodities to buyers is an aspect of
Answer Details
**Marketing** encompasses any activity directed at conveying commodities to buyers. It involves a set of actions aimed at promoting and selling products or services to customers. Marketing includes various aspects such as **delivering** the products or services to the consumers, **advertising** to raise awareness and attract customers, and **selling** by engaging in transactions or exchange of goods. However, it is important to note that **marketing is not limited to selling alone**. It also involves market research, product development, pricing, distribution, and creating customer relationships. In summary, marketing involves a range of activities that aim to connect products or services with consumers, including delivering, advertising, selling, and several other strategic actions.
Question 6 Report
The difference between the central bank and commercial bank is that the former
Answer Details
The central bank and commercial bank are two different types of banks that serve different purposes. The central bank, as the name suggests, is the bank that is at the center or the heart of a country's banking system. It is responsible for controlling and regulating the country's money supply, interest rates, and monetary policy. One of the important functions of the central bank is to act as the lender of last resort. This means that in times of financial crisis or when commercial banks are unable to meet their obligations, the central bank steps in to provide liquidity and ensure the stability of the banking system. On the other hand, commercial banks are the banks that most people are familiar with, as they are the ones that provide various banking services to the public. Commercial banks serve as intermediaries between individuals and businesses that have surplus funds to deposit, and those who need to borrow money. They accept deposits from individuals and businesses and in return, provide a range of services such as checking accounts, savings accounts, and loans. In summary, the key difference between the central bank and commercial bank is that the central bank acts as the lender of last resort and is responsible for regulating the country's banking system, while commercial banks provide banking services to the public and facilitate the borrowing and lending of money.
Question 7 Report
The fees charged on postal order by the post office is
Answer Details
The fee charged on postal orders by the post office is called "poundage". Poundage is a fee that is added to the total value of the postal order. It is a small percentage or fixed amount that the post office charges for providing the service of issuing and handling the postal order. The purpose of the poundage fee is to cover the costs incurred by the post office in processing and delivering the postal order. This includes administrative expenses, handling and transportation costs, as well as providing security for the transaction. It is important to note that the poundage fee is not the same as interest or brokerage. Interest refers to the additional amount of money earned on an investment or loan, which is not relevant to postal orders. Brokerage, on the other hand, is a fee charged by a broker for arranging a transaction between a buyer and a seller, which is also not applicable to postal orders. Therefore, to summarize, the fee charged on postal orders by the post office is called "poundage." It is a fee added to the total value of the postal order to cover the costs of processing and delivering the order.
Question 8 Report
What is a quota?
Answer Details
A quota is a physical restriction placed on the quantity of goods that can be imported. It is not a ban on all imported goods, a tax paid on goods produced within a country, or a tax paid on goods produced outside a country. Quotas are usually set by governments to control the amount of certain goods that can enter a country. They can be used to protect domestic industries, manage trade imbalances, or regulate the flow of goods. By limiting the quantity of imported goods, quotas can affect supply and demand, pricing, and competition in the marketplace.
Question 9 Report
An advantage of division of labour is
Answer Details
One advantage of division of labour is that it increases productivity and total output.
Division of labour refers to the specialization of tasks where individuals in a group or organization focus on specific tasks based on their skills and abilities.
Each person becomes proficient in their assigned task and is able to perform it more efficiently and effectively through practice and experience. By dividing a complex task into smaller, simpler tasks, the individuals involved can become experts in their own specific areas.
As a result, they can complete their tasks more quickly and with higher quality. This leads to increased overall productivity and higher output. For example, in a car manufacturing company, workers are divided into different stations or departments such as assembly, welding, painting, and testing.
Each worker in each department focuses on their specific task, such as attaching the wheels, welding the chassis, or applying the paint. This specialization enables the company to produce cars at a faster rate and with better quality than if each worker had to do all the tasks themselves.
Therefore, division of labour leads to increased productivity and total output by allowing individuals to specialize in specific tasks, perform them more efficiently, and collectively contribute to the overall goal.
Question 10 Report
A major objective of all business resources is
Answer Details
A major objective of all business resources is profit making. Profit making is the ultimate goal for businesses as it ensures their sustainability and growth. When businesses are able to make profits, they can reinvest that money back into their operations, expand and innovate, and create more job opportunities.
Profit making also allows businesses to attract investors and access capital for further expansion. It enables them to pay their employees fair wages and provide necessary resources to operate effectively.
While other options such as human relation, public relation, and profit sharing are important aspects of running a successful business, they are not the primary objective. Human relations and public relations are important for building positive relationships with customers, employees, and the community, but without making profits, the business will not be able to sustain itself in the long run. Profit sharing, on the other hand, is a strategy that some businesses use to incentivize their employees, but it is not the primary objective of all business resources.
In summary, while there are many important factors in running a successful business, the major objective of all business resources is profit making.
Question 11 Report
In law of contract, a counter offer operates as
Answer Details
A counter offer in the law of contract operates as a rejection of the original offer.
When one party makes an offer to another party, they are essentially proposing certain terms and conditions for entering into an agreement.
However, if the second party responds to this offer with a counter offer, it means that they are suggesting different or altered terms for the agreement. In legal terms, a counter offer is seen as a rejection of the initial offer because it indicates that the second party is not willing to accept the original terms proposed by the first party. The counter offer essentially ends the original offer and opens up negotiations for new terms of the agreement.
Therefore, it is important to understand that a counter offer does not operate as an acceptance, an offer, or a contract.
It is a clear indication that the second party is not in agreement with the terms of the original offer and wishes to propose new terms for consideration.
Question 12 Report
A major function of chamber of commerce is
Answer Details
The major function of a chamber of commerce is promoting both home and foreign trade.
This means that the chamber of commerce works to support and encourage businesses in their local community to engage in trade activities, both within the country (home trade) and with other countries (foreign trade).
The chamber of commerce plays a vital role in creating opportunities for businesses to connect with potential customers, suppliers, and partners. They facilitate trade exhibitions, networking events, and business conferences, where companies can showcase their products and services to a wider audience. By promoting trade, the chamber of commerce helps businesses expand their market reach, increase sales, and grow their profitability.
This not only benefits the individual businesses but also contributes to the overall economic development of the region. In addition to promoting trade, the chamber of commerce also provides support and resources to businesses to help them increase productivity.
This can include offering training programs, access to business development resources, and advocating for policies that foster a favorable business environment.
Promoting trade in a particular line is a narrower focus and not the major function of a chamber of commerce. While they may support specific industries or sectors within their community, their primary role is to promote trade in a broader sense, considering the interests and needs of all businesses.
Furthermore, maximizing profit is not the primary objective of a chamber of commerce. While they aim to support the success and profitability of businesses, their main focus is on fostering a conducive business environment and facilitating trade, rather than exclusively focusing on individual profit maximization.
Question 13 Report
A government policy that encourages transfer of ownership from foreigners to indigenes of the country is known as
Answer Details
Indigenisation is the government policy that encourages the transfer of ownership from foreigners to indigenes of the country.
This means that the government is promoting the idea of giving ownership and control of businesses, resources, and industries to the local people or native citizens of the country.
The main objective of indigenisation is to empower the local population and promote economic development.
By transferring ownership to indigenes, the government aims to reduce the influence of foreign entities and create opportunities for local businesses and individuals to thrive.
Indigenisation policies can take various forms, such as requiring a certain percentage of ownership to be held by locals, providing incentives for indigenous businesses, or implementing regulations that prioritize local participation in key sectors of the economy.
Overall, indigenisation is a strategy used by governments to ensure that resources and economic power are shared among the local population, fostering economic growth, and reducing dependency on foreign entities.
Question 14 Report
Answer Details
The type of letters that are delivered through the normal mail or by airmail express service is referred to as inland letters. Inland letters are letters that are sent within the same country. They can be delivered through the normal mail service or by airmail express service, depending on the sender's preference and the urgency of the letter.
Question 15 Report
Another name or term for a dishonoured cheque is
Answer Details
Another term for a dishonored cheque is a **bounced cheque**. When a person writes a cheque to someone, they are essentially authorizing their bank to transfer funds from their account to the recipient's account. However, if there are insufficient funds in the account, the bank will be unable to complete the transaction and the cheque will be bounced, or dishonored. There are various reasons why a cheque may bounce, such as insufficient funds, a closed account, or a mismatched signature. When a cheque bounces, it means that the payment cannot be made as originally intended, and the recipient will not receive the funds. So, to summarize, a dishonored cheque is commonly referred to as a **bounced cheque** because the payment authorization is not fulfilled by the bank due to insufficient funds or other issues.
Question 16 Report
The payment made by a speculator to the buyer when he is unable to deliver stocks on the agreed date is
Answer Details
Backwardation is a percentage paid by a person selling stock for the right of delaying its delivery.
Question 17 Report
Which of the following is a verbal means of communication
Answer Details
A verbal means of communication refers to a method of conveying information using spoken words. Out of the given options, the telephone is a verbal means of communication. The telephone allows people to talk to each other by transmitting their voices over a distance. It works by converting sound into electrical signals that can be transmitted through telephone lines or wirelessly. When you speak into a telephone, your voice is converted into an electrical signal and sent to the other person's telephone. Their telephone then converts the electrical signals back into sound, allowing them to hear your voice. This verbal communication method is widely used for various purposes, such as personal conversations, business discussions, and customer service. It provides real-time interaction and enables people to express their thoughts and ideas directly to others. In summary, the telephone is a verbal means of communication because it allows people to communicate using spoken words transmitted through electrical signals.
Question 18 Report
The rate where a country's exports exchange for its imports is called
Answer Details
The correct answer is terms of trade.
Terms of trade refers to the rate at which a country's exports exchange for its imports.
It is an economic indicator that measures the relative value of a country's exports in comparison to its imports. To understand it better, let's imagine a scenario where a country is exporting goods such as automobiles, electronics, and textile products to other countries, while also importing goods like oil, machinery, and clothing. The terms of trade would reflect the exchange ratio between the value of the country's exports and the value of its imports. When the terms of trade are favorable, it means that a country is able to trade its exports for a larger amount of imports.
This indicates that the country is receiving a higher value of imports for the same quantity or value of exports. It is generally beneficial for a country to have favorable terms of trade because it allows them to obtain a wider variety of goods and services from other countries. On the other hand, when the terms of trade are unfavorable, it means that a country has to trade a larger quantity or value of its exports in order to obtain the same amount of imports.
This indicates that the country is receiving a lower value of imports for its exports. Unfavorable terms of trade can be detrimental to a country's economy, as it can lead to a loss of wealth and limited access to necessary goods and resources.
Therefore, terms of trade play a significant role in determining a country's economic well-being and its ability to engage in international trade.
It provides insights into the relative value of a country's exports and imports, and its impact on the overall balance of trade and balance of payments.
Question 19 Report
The organised effort of consumers to protect themselves against the unfair practices of businessmen is known as
Answer Details
The organized effort of consumers to protect themselves against the unfair practices of businessmen is known as consumerism.
Consumerism is a movement that aims to empower and educate consumers, advocating for their rights and interests in the marketplace. It involves individuals, groups, and organizations working together to promote fair business practices, transparency, and the provision of quality products and services.
Consumerism encompasses various activities such as raising awareness about consumer rights, educating consumers about their rights and responsibilities, promoting ethical and sustainable consumption, and advocating for stronger consumer protection laws.
It encourages individuals to be vigilant and proactive in their purchasing decisions, making informed choices based on factors like product quality, safety, environmental impact, and fair pricing.
Consumerism often involves activities like boycotting companies that engage in unethical practices, filing complaints with consumer protection agencies, participating in product recalls, and supporting initiatives that promote fair trade and responsible corporate behavior.
Overall, consumerism serves to balance the power dynamics between businesses and consumers, giving individuals the means to protect themselves from unfair practices and make informed choices for their well-being and satisfaction.
It plays a crucial role in holding businesses accountable and shaping a fair and just marketplace.
Question 20 Report
The production of goods and services in anticipation of demand is made possible by
Answer Details
Warehousing is the process of storing physical inventory for sale or distribution. Warehouses are used by all different types of businesses that need to temporarily store products in bulk before either shipping them to other locations or individually to end consumers.
Question 21 Report
The government agency involved in issuing of export licences is
Answer Details
The government agency involved in issuing export licenses is the Nigeria Export Promotion Council (NEPC).
The NEPC is responsible for promoting and regulating exports in Nigeria. One of its main functions is to issue export licenses to Nigerian companies or individuals who want to export goods and services to other countries.
Export licenses are important because they serve as official documents that grant permission to individuals or businesses to export specific goods or services. These licenses ensure that exports comply with national and international trade regulations, help protect local industries, and facilitate trade relationships between Nigeria and other countries.
To obtain an export license from the NEPC, individuals or businesses need to fulfill certain requirements such as registration, documentation, and compliance with export regulations.
The NEPC reviews applications and verifies that the export activities align with the country's trade policies.
Once an export license is granted by the NEPC, the exporter can legally engage in international trade, confidently ship goods or provide services to foreign customers, and access benefits such as export incentives, trade promotions, and market opportunities.
In conclusion, the Nigeria Export Promotion Council (NEPC) is the government agency responsible for issuing export licenses in Nigeria.
These licenses are essential for individuals and businesses seeking to engage in legal and regulated export activities, promoting trade and economic growth in the country.
Question 22 Report
| Naira |
Naira |
||
Stock 1/1 |
20,000 | Net Sales | 370,000 |
Add purchases |
250,000 | ||
Cost of goods available for sale |
270,000 | ||
Less stock 31/12 |
40,000 | ||
Cost of goods sold |
230,000 | ||
Rent expenses |
35,000 |
Answer Details
To find the gross profit, we need to understand what it represents. Gross profit is the amount of money left after subtracting the cost of goods sold from the net sales.
Net sales is the total revenue generated from selling goods, which in this case is ₦370,000.
The cost of goods sold is the total cost incurred to produce or purchase the goods that were sold. To calculate it, we subtract the value of the stock on 31/12 (₦40,000) from the cost of goods available for sale (₦270,000). In this case, the cost of goods sold is ₦230,000.
Now, we can calculate the gross profit by subtracting the cost of goods sold (₦230,000) from the net sales (₦370,000). Gross profit = Net sales - Cost of goods sold Gross profit = ₦370,000 - ₦230,000 = ₦140,000.
Therefore, the correct answer is ₦140,000.
Question 23 Report
Land as a factor of production does not vary in
Answer Details
Land as a factor of production does not vary in quantity. The total land area of the earth is fixed and cannot be increased or decreased. However, the nature, quality, and cost of land can vary. The nature of land refers to its physical characteristics, the quality refers to its productivity or usefulness for a specific purpose, and the cost refers to the price of acquiring the land.
Question 24 Report
| ₦ | ₦ |
||
Stock 1/1 |
20,000 | Net sales | 370,000 |
Add purchases |
250,000 | ||
Cost of goods available for sale |
270,000 | ||
Less stock 31/12 |
40,000 | ||
Cost of goods sold |
230,000 | ||
Rent expenses |
35,000 |
Answer Details
To calculate the net profit, we need to subtract the cost of goods sold and expenses from the net sales.
Given the information provided:
Net sales: ₦370,000 Cost of goods sold: ₦230,000 Rent expenses: ₦35,000
To calculate the net profit, we use the following formula:
Net Profit = Net Sales - Cost of Goods Sold - Expenses
Substituting the values into the formula:
Net Profit = ₦370,000 - ₦230,000 - ₦35,000
Net Profit = ₦105,000
Therefore, the net profit is ₦105,000.
The correct answer is: ₦105,000
Question 25 Report
The board of directors of public enterprise is appointed by who?
Answer Details
The board of directors of a public enterprise is appointed by the government. To understand why, let's first define what a public enterprise is. A public enterprise is a company or organization that is owned and operated by the government. This means that the government has control over the company's activities and decision-making processes. The board of directors plays a crucial role in a public enterprise. They are responsible for making important decisions and setting the strategic direction of the company. They oversee the management of the enterprise and ensure that it is operating in the best interest of the government and the public. Given the significant role they play, it is important to have a board of directors that is qualified, reliable, and accountable. The government appoints the board members to ensure that they possess the necessary expertise, experience, and integrity to effectively guide and govern the public enterprise. By appointing the board members, the government can ensure that the interests of the shareholders, employees, and other stakeholders are considered and protected. The government has a broader perspective and must consider the overall welfare of the public and the nation when making decisions about the leadership of public enterprises. In conclusion, the board of directors of a public enterprise is appointed by the government to ensure that the company is managed effectively and in the best interest of the public. They are responsible for making important decisions and overseeing the management of the enterprise.
Question 26 Report
Parts payments made on alloted shares by subscribers is usually the
Answer Details
The correct answer is "called-up capital." Called-up capital refers to the portion of the subscribed capital that the company has requested from its shareholders to be paid. When a company decides to issue new shares, individuals or entities can subscribe to those shares by indicating their intention to purchase them. Once this happens, the subscribed capital represents the total value of shares that have been agreed to be purchased by the subscribers. However, subscribers do not always pay the entire subscription amount upfront. Instead, they make partial payments over time based on the company's requests. These partial payments made by the subscribers on their allotted shares are known as called-up capital. Therefore, the correct term to use for the partial payments made on the allotted shares by subscribers is "called-up capital."
Question 27 Report
If a business uses part of its profit to develop the area where it operates, the business is fulfilling its
Answer Details
If a business uses part of its profits to develop the area where it operates, it is fulfilling its social responsibilities. Social responsibilities refer to the obligations of a business to contribute to the well-being and improvement of society. By investing in the development of the local area, the business is showing its commitment to the community and the people living there. This can be done through various means such as supporting education, healthcare, infrastructure projects, or environmental initiatives. When a business fulfills its social responsibilities, it goes beyond its primary goal of making profits and considers the impact it has on society. It recognizes that it has a role to play in creating positive social change and improving the quality of life for the people in its community. In summary, by using its profits to develop the area where it operates, the business is fulfilling its social responsibilities by contributing to the well-being and improvement of society.
Question 28 Report
A major merit of the retaining middlemen is to
Answer Details
A major merit of retaining middlemen is that they can stock goods produced by different manufacturers. This means that middlemen can hold a variety of products from various manufacturers in their inventory. By doing so, they provide consumers with a wider range of choices when it comes to selecting products. Having middlemen stock goods from different manufacturers is advantageous because it allows for easy access to a diverse selection of products in one location. This can be especially helpful for consumers who may not have the time or ability to visit multiple manufacturers or stores to find the products they need. Additionally, middlemen can also help manufacturers by acting as a distribution channel for their products. Instead of each manufacturer needing to establish their own distribution network, they can rely on middlemen to stock and distribute their goods. This saves manufacturers time and resources, as they can focus on their core business activities. In summary, retaining middlemen allows for the stocking of goods produced by different manufacturers. This provides consumers with a wider range of choices and convenience, while also helping manufacturers by serving as a distribution channel for their products.
Question 29 Report
One disadvantages of advertising is that it
Answer Details
One disadvantage of advertising is that it could be misleading. Advertising is a way of promoting products or services to attract customers. However, sometimes advertisements may not provide accurate or honest information about a product. This can mislead customers into believing that a product is better than it actually is. For example, an advertisement might exaggerate the benefits of a product or hide its potential drawbacks. This can lead to customers purchasing a product based on false expectations, only to be disappointed when they realize it does not meet their needs or desires. Misleading advertising can also have negative consequences for businesses. If customers feel deceived by an advertisement, they may lose trust in the brand and be less likely to make future purchases. Moreover, misleading advertising can also lead to legal issues and damage a company's reputation. Therefore, it is important for both businesses and consumers to be aware of the potential for misleading advertising and to critically evaluate the claims made in advertisements before making a decision.
Question 30 Report
A bill of exchange already accepted can be discounted by the holder in
Answer Details
A bill of exchange is a written order by one person (known as the drawer) to another person (known as the drawee) to pay a certain amount of money to a third party (known as the payee) on a specific date. When the drawee accepts this order, it means they promise to pay the specified amount on the given date. Now, let's talk about discounting a bill of exchange. Discounting means that the holder of the bill can get the money from the bill before its maturity date by selling it to a bank. The bank will pay the holder the present value of the bill, which is the amount of money the bill is worth today, considering the time value of money. In the context of the given options, a bill of exchange that has already been accepted can be discounted by the holder in any bank. This means that the holder can sell the bill to any bank and receive the money before the maturity date. **Any bank** is a valid option because banks are willing to buy bills of exchange that have been accepted as they are considered to be secure payment instruments. The holder of the bill can approach a bank of their choice and initiate the process of discounting. The bank will assess the creditworthiness of the parties involved, calculate the present value of the bill, and provide the holder with the discounted amount. This way, the holder can receive the money earlier, instead of waiting until the bill's maturity date. To summarize, a bill of exchange that has already been accepted can be discounted by the holder in any bank. The holder can sell the bill to the bank and receive the money before the bill's maturity date. Any bank is a valid option, as banks are willing to buy accepted bills of exchange as they are considered secure payment instruments.
Question 31 Report
The activity which entails buying of goods in bulk and selling in small quantities to retailers is
Answer Details
The activity which entails buying goods in bulk and selling them in small quantities to retailers is known as wholesaling.
Wholesaling is when a business purchases goods from manufacturers or producers in large quantities, often at discounted prices, and then sells those goods in smaller quantities to retailers.
This middleman role of wholesaling helps to bridge the gap between manufacturers and retailers. Wholesalers typically operate in a B2B (Business-to-Business) context, selling to retail businesses rather than directly to consumers.
Wholesalers provide value by consolidating large quantities of goods from various manufacturers, offering a wide variety of products to retailers all in one place. This allows retailers to conveniently source their inventory without having to deal with multiple manufacturers individually.
In addition to the convenience factor, wholesalers also offer benefits such as lower prices due to bulk purchasing, faster delivery times, and the ability to provide additional services such as packaging, labeling, and inventory management.
Thus, wholesaling plays a vital role in the supply chain by ensuring the smooth flow of goods from manufacturers to retailers, ultimately meeting the demand of end-consumers.
Question 32 Report
The effects of devaluation includes all except
Answer Details
Devaluation is the reduction in the value of a country's currency compared to other currencies. It can have several effects on the economy. One effect of devaluation is the **expansion of local industries**. When a country's currency is devalued, it becomes cheaper for foreigners to buy goods and services from that country. This can make the country's exports more competitive in international markets. The increase in demand for these exports can lead to the growth and expansion of local industries, creating new jobs and boosting the economy. Another effect of devaluation is the **increase in import**. When a currency is devalued, imported goods and services become more expensive for the country's residents. This is because the country needs to exchange more of its devalued currency for the foreign currency to pay for imports. As a result, people may opt to buy more domestic products instead of expensive imports. A third effect of devaluation is that **exports become cheaper**. When a country's currency is devalued, its exports become relatively cheaper compared to currencies of other countries. This means that foreign buyers can purchase a larger quantity of goods and services for the same amount of their own currency. This can help boost a country's exports and improve its trade balance. However, the **increase in standard of living** is not a direct effect of devaluation. Devaluation can bring benefits to certain sectors of the economy, such as exporters and domestic industries, but it does not guarantee an increase in the overall standard of living for all residents. The impact of devaluation on the standard of living depends on various factors, such as the country's dependence on imports, inflation, and the effectiveness of government policies. In summary, the effects of devaluation include the expansion of local industries, an increase in imports becoming more expensive, and exports becoming cheaper. However, it does not directly lead to an increase in the overall standard of living.
Question 33 Report
The four P's of marketing are also known as
Answer Details
The four P's of marketing are also known as the marketing mix. This concept refers to the essential elements that businesses need to consider when developing a marketing strategy. The four P's are product, price, place, and promotion. 1. Product: This refers to the tangible or intangible goods or services that a company offers to satisfy customer needs or wants. It includes factors such as quality, features, packaging, branding, and customer support. 2. Price: This is the amount of money customers are willing to pay in exchange for the product or service. Pricing decisions should take into account factors such as production costs, competition, target market's willingness to pay, and overall business objectives. 3. Place: This represents the channels or methods through which a company delivers its products or services to the target market. It involves decisions related to the distribution network, retail locations, online platforms, and logistics. 4. Promotion: This refers to the various activities and strategies that companies use to communicate and promote their products or services to the target market. It includes advertising, public relations, sales promotion, personal selling, and direct marketing. The marketing mix emphasizes the importance of considering these four elements collectively and in harmony to achieve marketing success. By addressing each aspect effectively, businesses can understand and meet customer needs, differentiate themselves from competitors, and create a strong market presence.
Question 34 Report
Money is generally acceptable for transaction due to
Answer Details
Money is any item or verifiable record that is generally accepted as payment for goods and services and repayment of debts, such as taxes, in a particular country.
Legal tender is any official medium of payment recognized by law that can be used to extinguish a public or private debt, or meet a financial obligation
Question 35 Report
Which of the following regulates and controls the activities in the Nigerian Stock Exchange?
Answer Details
The regulatory body that controls and regulates the activities in the Nigerian Stock Exchange (NSE) is the Securities and Exchange Commission (SEC). The SEC is responsible for the supervision, regulation, and development of the capital market in Nigeria. Its main objective is to protect investors, maintain fair and transparent markets, and promote the growth and development of the capital market. The SEC ensures that companies listed on the Nigerian Stock Exchange comply with rules and regulations to maintain integrity and investor confidence in the market. It sets standards for disclosure and financial reporting, monitors trading activities, and investigates any misconduct or market abuse. The Central Bank of Nigeria (CBN) is responsible for monetary policy and banking supervision, while the Bureau of Public Enterprises (BPE) oversees privatization and public enterprises. The Nigeria Deposit Insurance Corporation (NDIC) focuses on deposit insurance and bank supervision. Therefore, out of the options provided, the Securities and Exchange Commission (SEC) is the regulatory body that specifically regulates and controls the activities in the Nigerian Stock Exchange (NSE).
Question 36 Report
I. Its unlimited nature
II. The number of partners
III. The withdrawal of a major of partner
IV. The bearing of risk
Which of these is both merit and demerit in partnership?
Answer Details
Partnership are formed by an association of two to twenty persons. The number of partners involved serves as both merit and demerit to partnership business.
Question 37 Report
The function of commerce in relation to production is
Answer Details
The function of commerce in relation to production is to provide a link between the different stages of the conversion of goods. Commerce plays a vital role in supplying raw materials from nature, facilitating the production process, and delivering the finished goods to the consumers.
Firstly, commerce helps in the extraction of raw materials from nature. This involves activities such as mining, farming, fishing, and forestry. Commerce enables these materials to be collected and transported to the production sites where they can be transformed into finished goods.
Secondly, commerce plays a crucial role in the conversion process. It involves various activities such as manufacturing, processing, packaging, and assembling. These activities are carried out by producers to convert raw materials into finished products that can be sold to consumers. Commerce helps in coordinating these different stages and ensuring a smooth flow of goods throughout the production process.
Lastly, commerce is responsible for satisfying the demands of consumers. It involves marketing, distribution, and selling of the finished goods to the consumers. Commerce helps in identifying the needs and wants of consumers and ensuring that the right products reach the right people at the right time. This involves activities such as advertising, selling, and customer service.
In conclusion, the function of commerce in relation to production is to provide a link between the different stages of the conversion of goods. It facilitates the extraction of raw materials, coordinates the production process, and ensures the satisfaction of consumer demands. Commerce plays a vital role in connecting producers with consumers and ensuring the smooth flow of goods in the economy. It is an essential component of the overall process of production and distribution in any economy.
Question 38 Report
Which of the following is not a veritable source of funds to a public limited liability company?
Answer Details
The answer is: Government financial grants.
A public limited liability company can obtain funds from various sources such as advances and loans from banks, internally generated funds, and funds from the sale of shares. However, government financial grants are not considered a veritable source of funds for a public limited liability company.
Advances and loans from banks can be obtained by a company in order to meet its financial needs. These funds are typically provided by the bank based on the company's creditworthiness and ability to repay the loan. This can be a reliable source of funds for a company.
Internally generated funds refer to the funds that a company generates from its own operations. This can include profits from the sale of goods or services, dividends from investments, or any other income generated by the company's operations. These funds are considered to be a reliable and sustainable source of financing.
Funds from the sale of shares refer to the capital that a company raises by issuing shares to investors. When a company goes public, it offers shares to the public through an initial public offering (IPO). Investors can then buy these shares, providing the company with capital. This is a common way for companies to raise funds.
On the other hand, government financial grants are not typically a veritable source of funds for a public limited liability company. While governments may provide financial assistance or grants to certain industries or sectors, this is usually not the primary source of funding for a company. Grants are often provided for specific projects or initiatives and may come with certain conditions or limitations.
In summary, while advances and loans from banks, internally generated funds, and funds from the sale of shares are all potential sources of funds for a public limited liability company, government financial grants are not considered a veritable source of funds.
Question 39 Report
An individual that links the producer with the retailer is
Answer Details
A wholesaler is a merchant who purchases goods in large quantity from the manufacturer and sell in small quantities to the retailer. The wholesaler acts as an intermediary between the retailer and the manufacturer.
Question 40 Report
Factors considered when setting up a retail business is one of the following
Answer Details
The factors are: capital, pricing policy, source of supply, type of goods, terms of trade, experience, advertising, location of the business.
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