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Question 1 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 2 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 3 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 4 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 5 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 6 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 7 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 8 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 9 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 10 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 11 Report
Which of the following is an item in the marketing mix?
Answer Details
An item in the marketing mix refers to a component or element that is crucial in the overall marketing strategy of a product or service.
Out of the given options, promotion is an item in the marketing mix. Promotion involves various activities and strategies implemented by companies to communicate and promote their products or services to the target audience.
It is a way of informing, persuading, and influencing potential customers about the value and benefits of their offerings. Promotion can take different forms such as advertising, personal selling, sales promotion, direct marketing, and public relations.
These activities are designed to create awareness, generate interest, and ultimately lead to the purchase of the product or service. In the marketing mix, promotion complements the other elements such as product, price, and place (distribution). It helps in building brand awareness, creating a strong market presence, and ultimately driving sales.
Overall, promotion plays a vital role in the marketing mix by effectively reaching out to the target audience, creating demand, and influencing consumer behavior.
Question 12 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 13 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 14 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 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
Why is clean bill of lading called so?
Answer Details
A clean bill of lading is called so because it is a clear and accurate document that shows no records of damaged goods or any other problems. When goods are transported by ship, a bill of lading is issued as a receipt and evidence of the contract between the shipper and the carrier. It includes important information such as the type of goods, the quantity, and the destination. A clean bill of lading indicates that the goods have been loaded onto the ship in good condition and that there are no visible signs of damage or issues. It is like a "clean slate" for the goods, meaning there are no problems associated with them at the time of shipment. This document is important because it serves as proof that the goods were in good condition when they were handed over to the carrier. It also ensures that the responsibility for any damages or issues lies with the carrier, rather than the shipper. On the other hand, if a bill of lading shows records of damaged goods, it would be called a "dirty" or "foul" bill of lading. This would indicate that there are problems or damages associated with the goods, which may complicate the liability and the insurance claims process. Therefore, a clean bill of lading signifies that no debt is owed and that the goods have been shipped in good condition, giving confidence to both the shipper and the receiver of the goods.
Question 17 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 18 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 19 Report
Risk bearing in business organisation is a function of the
Answer Details
Risk bearing in a business organization is primarily a function of the entrepreneur. Entrepreneurs are individuals who take on risks and uncertainties in order to initiate and manage a new business venture. They are the driving force behind the creation of a business and are responsible for making critical decisions that can significantly impact the success or failure of the organization. Here's why entrepreneurs are the key risk bearers in business organizations: 1. Vision and Initiative: Entrepreneurs possess a unique ability to identify opportunities and envision new ventures. They take the initiative to pursue these opportunities, even when faced with inherent risks and uncertainties. 2. Financial Investment: Entrepreneurs typically invest their own money and resources in their business ideas. This financial commitment exposes them to the possibility of financial loss if their venture does not succeed as anticipated. 3. Uncertainty Management: Starting a new business involves numerous unknowns and uncertainties. Entrepreneurs must anticipate and manage these risks, such as market competition, changing customer preferences, and financial volatility. 4. Decision-making Authority: Entrepreneurs have ultimate decision-making authority within their organizations. They face the responsibility of making critical choices regarding product development, marketing strategies, resource allocation, and other business operations. These decisions carry inherent risks that can shape the success or failure of the organization. While managers, employees, and customers may indirectly contribute to risk management within a business organization, it is the entrepreneur who bears the primary responsibility for identifying, assessing, and managing risks. Their vision, financial investment, ability to navigate uncertainty, and decision-making authority make them the key risk bearers within a business organization.
Question 20 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 21 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 22 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 23 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 24 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 25 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 26 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 27 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 28 Report
The document that explains the types of shares available for sale to the public is
Answer Details
The document that explains the types of shares available for sale to the public is called a prospectus.
A prospectus is a document that provides detailed information about a company and its offering of shares to the public. It is a legal requirement for companies to provide a prospectus to potential investors before they can buy shares.
The prospectus contains important information such as the company's history, financial statements, business strategy, management team, and details about the types of shares being offered. It also outlines the risks associated with investing in the company and any legal or regulatory requirements. Overall, the prospectus serves as a comprehensive guide for investors to make informed decisions about whether to buy shares and understand the nature of the investment.
It helps potential investors understand the company's operations and financial health, allowing them to evaluate the potential risks and rewards associated with investing in the company.
Question 29 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 30 Report
The maximum number of shareholders in a public liability company is
Answer Details
The correct answer is unlimited. In a public liability company, there is no maximum limit on the number of shareholders that can be involved.
This means that a public liability company can have as many shareholders as it wants or needs. Unlike other types of companies, such as private limited companies, which often have restrictions on the number of shareholders they can have, public liability companies are open to the public and allow anyone to buy shares in the company.
The main reason for not having a maximum limit on the number of shareholders in a public liability company is to provide opportunity for a wide range of investors to invest in the company.
This allows the company to raise a larger amount of capital and have more diverse ownership. Having an unlimited number of shareholders also helps in spreading the risk among a larger pool of investors.
If one shareholder decides to sell their shares or withdraw from the company, there are still many other shareholders remaining, which helps maintain stability and continuity in the company's ownership structure.
Therefore, in a public liability company, there is no restriction on the number of shareholders, and it can have as many shareholders as it wants or needs to effectively operate and grow the business.
Question 31 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 32 Report
The scope commerce is limited to
Answer Details
Commerce is not limited to any specific area. It encompasses a wide range of activities and aspects related to trade and business. The scope of commerce includes both home and foreign trade, which involves buying and selling goods and services within a country and between different countries. Commerce covers various forms of trade, such as wholesale and retail trade. Wholesale trade refers to the sale of goods in large quantities to retailers or businesses, while retail trade involves selling goods directly to consumers. Additionally, commerce also includes the concept of aids-to-trade, which are activities that facilitate smooth trading processes. These aids-to-trade can be transportation, storage, insurance, banking, advertising, and other related services that support the exchange of goods and services. Lastly, commerce is not limited to any specific type of trade, such as entreport trade. Entreport trade refers to the import and re-export of goods through a port or trading center without significant processing or value addition. While this is a part of commerce, it is not the sole focus or limitation of the field. In summary, commerce encompasses home and foreign trade, wholesale and retail trade, as well as various aids-to-trade. It is a broad field that covers all aspects of buying, selling, and supporting trade activities in both domestic and international contexts.
Question 33 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 34 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 35 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 36 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 37 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 38 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 39 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 40 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).
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