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Question 1 Report
The principle which requires the insurance company to disclose to the proposer all material facts of the risk to be covered is
Answer Details
The principle which requires the insurance company to disclose to the proposer all material facts of the risk to be covered is **uberrimae fidei**. Uberrimae fidei is a Latin phrase that means "utmost good faith." In insurance, it refers to the duty of both the insurer and the proposer to share all relevant information about the risk being insured. When someone applies for insurance, they are considered the proposer, and it is their responsibility to provide complete and accurate information about the risk they want to insure. Likewise, the insurance company must also proactively disclose any important facts or conditions that may affect the decision to insure or the terms of the insurance policy. This principle of utmost good faith is important because insurance contracts are based on trust and mutual understanding. By sharing all material facts, both the insurance company and the proposer ensure that the policy accurately reflects the risk being covered, and that both parties can make informed decisions. If either party fails to disclose all material facts, it can lead to issues like claim rejections or policy cancellations. For example, if the proposer hides a pre-existing medical condition when applying for health insurance, it can lead to claims being denied when the insurer discovers the undisclosed information. In summary, the principle of uberrimae fidei in insurance requires both the insurance company and the proposer to be honest, transparent, and disclose all relevant information about the risk to be insured. This helps ensure fairness and trust in insurance contracts.
Question 2 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.
Question 3 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 4 Report
Which of the following attracts only interest but leaves the capital unpaid?
Answer Details
A bond is a financial instrument that represents a loan made by an investor to a borrower. In return for lending their money, the investor receives periodic interest payments and the promise of repayment of the principal amount at maturity. Out of the given options, the financial instrument that attracts only interest but leaves the capital unpaid is an **irredeemable bond**. An irredeemable bond, also known as a perpetual bond, is a type of bond that does not have a maturity date. This means that the issuer of the bond does not have the obligation to repay the principal amount to the investor at any point in the future. Instead, the issuer makes periodic interest payments to the investor for as long as the bond remains outstanding. These interest payments compensate the investor for lending their money, but the principal amount is never repaid. The main attraction of an irredeemable bond is that it provides a predictable stream of income in the form of interest payments. However, the investor is exposed to the risk that the bond issuer may default on the interest payments. Since the principal amount is not repaid, the investor does not have the potential for capital appreciation from the bond. In summary, an irredeemable bond attracts only interest payments but does not repay the principal amount.
Question 5 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 6 Report
A business organization that exploits the capabilities of a member to remedy the weakness of another is a
Answer Details
A business organization that exploits the capabilities of a member to remedy the weakness of another is a cooperative. In a cooperative, individuals or businesses come together voluntarily to pool their resources, skills, and knowledge for mutual benefit. The members of a cooperative work together to address their weaknesses by leveraging the strengths of others. This collaboration helps to improve the overall efficiency and productivity of the cooperative. Cooperatives operate on the principle of "working together" rather than competing against each other. By sharing resources, expertise, and responsibilities, the members can achieve common goals that may not have been possible individually. The cooperative structure allows members to contribute their unique skills and abilities to fill any gaps or weaknesses within the organization. This collective effort promotes collaboration, problem-solving, and shared decision-making. Overall, a cooperative is a business organization that fosters cooperation among its members to maximize their strengths and overcome weaknesses collectively.
Question 7 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 8 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 9 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 10 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 11 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 12 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 13 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 14 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 15 Report
Answer Details
The Nigerian Stock Exchange consists of the primary and secondary markets. The primary market is where new securities, such as stocks and bonds, are issued for the first time. This is also known as the initial public offering (IPO) market, where companies raise capital by selling their shares to the public. On the other hand, the secondary market is where previously issued securities are bought and sold among investors. This is where individuals and institutions trade these securities after they have been issued in the primary market. The secondary market is also known as the stock market or the equity market. Therefore, the correct answer is the **secondary and primary market**.
Question 16 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 17 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 18 Report
The process of buying, selling and distribution of goods and services is
Answer Details
The process of buying, selling and distributing goods and services is called commerce.
Commerce involves various activities such as production, packaging, branding, advertising, selling, and delivering goods and services to customers. It is a system that facilitates the exchange of goods and services between producers and consumers.
Marketing is one part of the broader field of commerce. It focuses on activities such as market research, promoting and advertising products or services, and building relationships with customers to meet their needs and wants. Marketing plays a crucial role in commerce by identifying what customers want, creating demand for products, and facilitating transactions.
Retail trade is a specific branch of commerce that involves the sale of goods directly to consumers. It refers to the process of selling products through brick-and-mortar stores, online platforms, or any other means of retailing. Retailers purchase goods from manufacturers or wholesalers and make them available for consumers to buy.
While marketing concept is an important concept within commerce and marketing, it refers to a customer-centric approach to doing business. It emphasizes understanding and satisfying customer needs and wants, which ultimately leads to achieving business goals and profitability. In summary, commerce encompasses all the activities involved in buying, selling, and distributing goods and services.
Marketing is a subset of commerce that focuses on understanding and meeting customer needs, while retail trade specifically refers to the sale of goods to consumers. The marketing concept highlights the importance of customer satisfaction in driving business success.
Question 19 Report
Insurance against burglary is an example of
Answer Details
Insurance against burglary is an example of indemnity insurance. Indemnity insurance is a type of insurance that provides financial compensation for the loss or damage caused by a specific event or peril.
In the case of burglary insurance, it specifically covers the loss or damage resulting from a burglary or theft. When you have burglary insurance, you are protected against the financial consequences of a burglary. If your home or property is broken into and valuable items are stolen or damaged, the insurance company will compensate you for the value of those items, up to the limits specified in your policy. It is important to note that indemnity insurance does not provide a profit or go beyond the actual loss or damage suffered. The purpose of this type of insurance is to restore you to the same financial position you were in before the burglary occurred.
Non-indemnity insurance is a term used to describe insurance policies that do not provide financial compensation for the loss or damage suffered. Instead, they typically provide services or benefits that are not related to the actual cost of the loss.
Non-insurable risk refers to risks that insurance companies are unwilling or unable to provide coverage for. These risks are typically considered too unpredictable or highly certain to result in a loss, making it difficult for insurers to assess and determine an appropriate premium.
Fidelity guarantee insurance is a type of insurance that protects businesses against financial loss caused by the dishonest or fraudulent acts of their employees. It covers instances where an employee embezzles money, steals property, or commits other fraudulent acts.
In summary, insurance against burglary falls under the category of indemnity insurance. It provides financial compensation for the loss or damage caused by a burglary or theft, aiming to restore the policyholder to the same financial position they were in before the incident occurred.
Question 20 Report
The act of selling in a foreign market at a price lower than the cost price is called
Answer Details
The correct answer is **dumping**. Dumping is the act of selling products in a foreign market at a lower price than what it cost to produce them. This practice allows the exporter to gain a competitive advantage over local businesses in the foreign market, as they can offer lower prices to attract customers and potentially drive local producers out of business. Dumping is often seen as an unfair trade practice because it can harm domestic industries by creating an unlevel playing field. It can also lead to anti-dumping measures being imposed by the importing country to protect its industries. To summarize, dumping involves selling products in a foreign market at a price lower than the cost price, giving the exporter a competitive advantage but potentially harming local industries.
Question 21 Report
The process of converting a non-profit making organisation to a profit-making business is
Answer Details
The process of converting a non-profit making organization to a profit-making business is known as privatization.
Privatization refers to the transfer of ownership and control of a public-sector or non-profit organization to private individuals or companies. This enables the organization to operate with a profit motive, aiming to generate revenue and maximize profits.
During the process of privatization, the organization undergoes structural and operational changes to align with the principles of entrepreneurship and profit orientation. This may involve restructuring the organization, implementing new management systems, and focusing on cost-efficiency and revenue generation.
Commercialization refers to the process of introducing business practices and marketing strategies to a non-profit organization to increase its revenue-generating activities. However, it does not necessarily involve changing the fundamental nature of the organization to profit-making.
Deregulation refers to the removal or reduction of government regulations and restrictions on business operations. It aims to promote competition, efficiency, and market-driven behavior. While deregulation may create conditions for profit-making, it is not specifically focused on converting a non-profit organization into a profit-making business.
Indigenization refers to the promotion of local ownership and control of businesses and industries. It often involves transferring ownership from foreign to domestic entities. Indigenization can have economic and political goals but is not directly related to converting a non-profit organization into a profit-making business. In conclusion, the most appropriate process for converting a non-profit organization to a profit-making business is privatization.
It involves transferring ownership from the public or non-profit sector to private individuals or companies, enabling the organization to operate with a profit motive and focus on revenue generation.
Question 22 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 23 Report
The concept that refers to the sale, transfer or exchange of goods and services is
Answer Details
The concept that refers to the sale, transfer, or exchange of goods and services is **trade**. Trade is the process of buying and selling goods and services between individuals, companies, or countries. It involves the exchange of something valuable, such as money, for a product or service. For example, when you go to a store and purchase a book, you are engaging in trade. The store is selling you the book, and you are giving them money in exchange. This transaction is a form of trade. Similarly, when different countries exchange goods with each other, it is also called trade. For instance, if one country produces cars and another country wants to buy those cars, they will engage in trade by exchanging money for the cars. Trade plays a crucial role in the global economy as it allows people and businesses to obtain the goods and services they need or desire. It promotes economic growth, creates job opportunities, and helps to establish connections between countries.
Question 24 Report
An agent who has to sell perishable goods without the prior authority of the owner becomes an agent by
Answer Details
Agency by necessity arises when an emergency situation happens. When somebody who is possession of another person's property has to so something to preserve the property.
Question 25 Report
A demerit of communication is that it
Answer Details
The sender of communication may have a clear idea about the message but it may still be marked by the poorly chosen words poor organization, awkward sentence structure, lack of coherence, omissions unnecessary jargon, and a failure to clarify its implications.
Question 26 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 27 Report
An agreement that is enforceable in law is
Answer Details
An agreement that is enforceable in law is called a contract. A contract is a legally binding agreement between two or more parties. It is created when there is an offer made by one party to another, and that offer is accepted. Both parties must provide something of value, known as consideration, for the contract to be valid. Once a contract is formed, it means that both parties are legally obligated to fulfill their promises as outlined in the agreement. If any party fails to fulfill their obligations, the other party can seek legal remedies to enforce the contract. So, in simple terms, a contract is an agreement that can be enforced by law if any party fails to do what they promised to do.
Question 28 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 29 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 30 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 31 Report
A system where customer patronage is sought by producing what they need is referred to as
Answer Details
A system where customer patronage is sought by producing what they need is referred to as market orientation. Market orientation is an approach adopted by businesses where they prioritize understanding customer needs and preferences. Rather than focusing solely on promoting or selling their products, market-oriented companies aim to produce goods and services that align with customer demands. In a market-oriented system, businesses conduct thorough market research to identify consumer needs, preferences, and trends. This information is then used to develop and modify their products to meet these specific requirements. The key point is to focus on customer satisfaction by delivering products that fulfill their needs, wants, and expectations. By adopting a market orientation, businesses can effectively tailor their products and marketing strategies to meet customer demands, resulting in increased customer satisfaction and long-term success.
Question 32 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 33 Report
Answer Details
An example of a cartel is **OPEC**. A cartel is a group of independent entities or organizations that come together to regulate and control the production, pricing, and distribution of a particular product or service. The primary goal of a cartel is to collaborate and reduce competition among its members in order to maintain high prices and increase profits. OPEC stands for the Organization of the Petroleum Exporting Countries. It is an intergovernmental organization consisting of 14 oil-producing countries, primarily located in the Middle East, Africa, and South America. OPEC was formed in 1960 and its members collectively control a significant portion of the world's oil reserves and production. OPEC's main objective is to coordinate and control the production and pricing of oil to ensure stability in global oil markets and maximize their revenues. The member countries agree on production quotas to limit the amount of oil they produce, with the aim of balancing supply and demand and maintaining stable oil prices. By collaborating and acting as a collective force, OPEC members are able to exert influence and have a significant impact on global oil prices. This allows them to maintain higher prices and avoid the downward pressure of excessive competition. However, this control over the oil market has both positive and negative consequences for both the member countries and the global economy. In summary, OPEC is an example of a cartel as it is a group of oil-producing countries that collaborate to control the production and pricing of oil, with the aim of maintaining high prices and increasing profits.
Question 34 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 35 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 36 Report
The stock exchange is a market where
Answer Details
The stock exchange is a market where all types of securities are sold. This means that it is a place where various financial assets can be bought and sold. This includes short-term, medium-term, and long-term securities.
Securities refer to tradable financial instruments, such as stocks (also known as shares or equities), bonds, and derivatives. Stocks represent ownership in a company, while bonds are debt instruments issued by the government or corporations. Derivatives are financial contracts based on the value of an underlying asset.
On the stock exchange, buyers and sellers come together to trade these securities. Buyers are interested in purchasing securities as investments, hoping that their value will increase over time. Sellers, on the other hand, may be looking to sell securities they already own in order to make a profit or reduce their risk.
The stock exchange provides a centralized platform where securities can be traded, ensuring transparency and fair pricing. It operates through a network of exchanges and brokers, with buyers and sellers submitting their orders electronically. Trades are executed based on the prevailing market prices, determined by supply and demand.
Overall, the stock exchange plays a crucial role in capital markets by facilitating the buying and selling of securities, enabling companies to raise funds and investors to participate in the growth of businesses.
Question 37 Report
One of these is a current asset
Answer Details
Out of the given options, **stock** is a current asset. A current asset is an asset that is expected to be used up or converted into cash within a year or the normal operating cycle of a business. Stock, in this context, refers to the goods or merchandise that a company holds for sale to customers. It includes items such as finished goods, raw materials, and work-in-progress. Stock is considered a current asset because it is typically held for a short period of time before it is sold to generate revenue. Companies often purchase stock to meet customer demand and generate sales. Once the stock is sold, the company receives cash in exchange, thereby converting the stock into cash. Other options like machineries, fittings, and motor vehicles are not considered current assets. Machineries and motor vehicles are typically classified as fixed assets because they are used for long-term operations and are not expected to be converted into cash quickly. Fittings, on the other hand, may refer to fixtures or equipment within a building and also fall under the category of fixed assets. In summary, stock is considered a current asset because it represents the inventory of goods that a company plans to sell within a year or its normal operating cycle. It can be easily converted into cash when sold to customers.
Question 38 Report
A factor necessary for siting of a warehouse is nearness to
Answer Details
A factor that is necessary for siting a warehouse is the **nearness to consumers**. When deciding where to locate a warehouse, it is important to consider the proximity or closeness to the consumers who will be buying the products stored in the warehouse. This is because being close to consumers has several advantages: 1. **Faster delivery**: When the warehouse is located near the consumers, it reduces the distance that goods need to travel to reach them. This means that products can be delivered more quickly, which is important for satisfying customer demands and providing a good customer experience. 2. **Reduced transportation costs**: Having a warehouse close to consumers also helps to reduce transportation costs. When the warehouse is located far away, it requires more time, fuel, and resources to transport goods from the warehouse to the consumers. By minimizing the distance, transportation costs can be minimized too. 3. **Flexibility and responsiveness**: Being close to consumers allows the warehouse to be more flexible and responsive to their needs. It becomes easier to adapt to changes in demand and customer preferences when the warehouse is situated nearby. This can help businesses stay competitive in the market. 4. **Customer satisfaction**: Ultimately, having a warehouse near consumers contributes to customer satisfaction. Customers appreciate receiving their products quickly and efficiently. By providing fast and convenient service, businesses can attract and retain more customers. In summary, the nearness to consumers is an important factor to consider when siting a warehouse. It enables faster delivery, reduces transportation costs, allows for greater flexibility, and leads to improved customer satisfaction.
Question 39 Report
The macro-environmental forces and trends which are a constraint on business operations are referred to as
Answer Details
The macro-environmental forces and trends which are a constraint on business operations are referred to as external factors. These factors are external to the organization and they influence the success or failure of a business.
Internal factors refer to the factors within the control of the business, such as the company's structure, resources, and capabilities. On the other hand, external factors are forces and trends that are beyond the control of the business, but can have a significant impact on its operations and performance.
Technological factors are one type of external factor that refers to the advances and innovations in technology that can impact businesses. For example, the introduction of new technologies can lead to changes in production processes, marketing strategies, and customer expectations.
Economic factors are another type of external factor that include factors related to the overall economy and can affect businesses in various ways. For instance, changes in economic conditions such as inflation, unemployment rates, and consumer spending patterns can impact the demand for products or services.
However, when we talk about the macro-environmental forces and trends that specifically constrain business operations, we refer to the broader external factors that include not only technological and economic factors but also social, political, legal, and environmental factors. These factors can influence a business's ability to operate, make decisions, and achieve its goals.
In conclusion, the macro-environmental forces and trends that are a constraint on business operations are referred to as external factors. They encompass a range of influences, including technological and economic factors, as well as social, political, legal, and environmental factors. These forces and trends can significantly impact a business's operations and success.
Question 40 Report
Which of the following legislation aims primarily at the protection of consumers?
Answer Details
The legislation that aims primarily at the protection of consumers is the Trade Description Act. The Trade Description Act is a law that is specifically designed to safeguard the interests of consumers. Its main purpose is to prevent businesses from misleading or deceiving consumers about the goods or services they are offering. Under this act, businesses are required to provide truthful and accurate information about their products or services. They are not allowed to make false claims or misrepresent the quality, quantity, or any other important aspect of their offerings. This act also ensures that consumers have the right to receive goods or services that match the descriptions provided by the businesses. If a consumer feels that they have been misled or deceived by a business, they can take legal action against the business and seek compensation for any damages or losses incurred. In summary, the Trade Description Act is a legislation that primarily focuses on protecting consumers by prohibiting businesses from providing false or misleading information about their products or services. Its aim is to ensure that consumers are well-informed and can make informed decisions when purchasing goods or services.
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