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Question 1 Report
One of the demerits of sole trading is
Answer Details
One of the demerits of sole trading is unlimited liability. This means that the owner of the business is personally liable for all the debts and losses incurred by the business. This implies that the owner's personal assets may be used to settle the debts of the business. In other words, if the business is sued, the owner's personal savings, car, house, and other assets may be seized to pay off the debts. This is different from other forms of business ownership, such as corporations, where the owners are only liable for the amount they have invested in the business. Therefore, unlimited liability makes sole trading a risky venture, and this is one of its major demerits.
Question 2 Report
Which of the following is not included in the Memorandum of Association?
Answer Details
The winding up procedure is not included in the Memorandum of Association. The Memorandum of Association is a legal document that sets out the constitution and fundamental characteristics of a company. It contains various important details such as the name of the company, its objectives, the amount of capital, the address of the registered office, and the conditions for amending the memorandum. However, the winding up procedure, which refers to the process of dissolving the company and distributing its assets, is typically not included in the Memorandum of Association. Instead, it is usually addressed in the company's Articles of Association or in separate legal documents.
Question 3 Report
Which of the following clearly defines business?
Answer Details
, "Any productive activity undertaken for profit motive," clearly defines business. Business refers to any economic activity that is undertaken for the purpose of generating profit. This could involve buying and selling goods or services, manufacturing products, or providing services to customers. The goal of a business is to generate revenue that exceeds its costs and to maximize its profits.
Question 4 Report
Which of the following will enable customs officers to correctly assess import duties on goods?
Answer Details
Question 5 Report
An insurance policy which benefits one's family only is in the event of one's death is known as
Answer Details
An insurance policy which benefits one's family only in the event of one's death is known as a "whole-life insurance" policy. Whole-life insurance is a type of life insurance policy that provides coverage for the entire life of the insured person, as long as the premiums are paid. In the event of the insured person's death, the beneficiaries named in the policy receive a lump sum payment, which can be used to cover funeral expenses, pay off debts, or provide financial support for the family. Unlike term life insurance, which provides coverage for a specified period of time, whole-life insurance does not expire as long as the premiums are paid. This can provide peace of mind for individuals who want to ensure that their family is taken care of in the event of their death.
Question 6 Report
Which of the following is not the duty of an entrepreneur?
Answer Details
The duty of an entrepreneur refers to the various responsibilities that an entrepreneur is expected to undertake in order to run a successful business. These duties include providing initial capital, bearing risks, organizing other factors of production, and deciding what to produce. However, deciding on the amount of tax to pay is not the duty of an entrepreneur. This is because the amount of tax to be paid is determined by the government, and entrepreneurs are expected to comply with tax laws and regulations. Therefore, the answer is "Decision on the amount of tax to pay".
Question 8 Report
Which of the following is not an element of a contract?
Answer Details
The element of a contract that is not included in the options listed is "Probability." A contract is a legally binding agreement between two or more parties that involves certain elements such as an offer, acceptance, consideration, legality, capacity, and consensus. "Probability" is not an element of a contract and does not have any relevance to the formation or validity of a contract.
Question 9 Report
Which of the following is the main tool of mass selling
Answer Details
Advertising is the main tool of mass selling. Advertising is a form of communication that is used to persuade people to buy a product or service. It involves the use of various media, such as television, radio, newspapers, magazines, billboards, and the internet, to reach a large audience. The primary goal of advertising is to create awareness about a product or service and to influence people's attitudes and behavior towards it. It provides information about the product, its features, benefits, and value proposition. Advertising also creates brand awareness and loyalty by associating the product with a particular image or lifestyle. Advertising is a cost-effective way to reach a large audience and can be tailored to specific target markets. It can be used to introduce new products, promote sales and specials, and build customer relationships. In summary, advertising is the main tool of mass selling as it is a form of communication used to persuade people to buy a product or service and is a cost-effective way to reach a large audience.
Question 10 Report
An association of businessmen engaged in both commerce and industry is called
Answer Details
An association of businessmen engaged in both commerce and industry is called a "chamber of commerce". Chambers of commerce are non-profit organizations that represent businesses in a particular geographic region or industry. They provide various services to their members, such as networking opportunities, advocacy and lobbying efforts, and education and training programs. They also act as a liaison between businesses and government entities, helping to promote economic growth and development.
Question 11 Report
Musa places the bicycle for sale at #800.00 and Dada had agreed to pay the amount. In this transaction, Musa is the
Answer Details
In this transaction, Musa is the offerer. An offer is a proposal by one party (offerer) to another (offeree) indicating a willingness to enter into a contract on certain terms without further negotiation. By placing the bicycle for sale at a price of #800.00, Musa is making an offer to sell the bicycle to Dada. If Dada accepts the offer by agreeing to pay the #800.00, a contract is formed between the two parties. Therefore, Musa is the offerer in this transaction.
Question 12 Report
Which of the following regulates and controls the activities of the Nigerian Stock Exchange?
Answer Details
The Securities and Exchange Commission (SEC) regulates and controls the activities of the Nigerian Stock Exchange. The Nigerian Stock Exchange is the principal securities exchange of Nigeria, where stocks, bonds, and other securities are bought and sold. The SEC is the primary regulatory agency for the Nigerian capital market, responsible for regulating and overseeing the activities of the stock exchange and other participants in the capital market. The Nigerian Capital Market Association is an industry group that represents the interests of capital market operators. The Nigerian Deposit Insurance Commission insures deposits in Nigerian banks and promotes stability in the Nigerian financial system. The Nigerian Reinsurance Corporation provides reinsurance services to insurance companies. The Central Bank of Nigeria is the country's central bank, responsible for regulating the banking sector and implementing monetary policy.
Question 13 Report
The primary purpose of credit cards is to
Answer Details
The primary purpose of credit cards is to obtain goods without paying cash on the spot. Credit cards are a form of payment that allows a consumer to make purchases or obtain services by borrowing money from a financial institution or credit card issuer. The credit card holder can use the card to pay for goods or services and is then required to pay back the borrowed money to the issuer, usually with interest. This allows the holder to make purchases without having to carry cash or use a debit card, and to pay for them over time.
Question 14 Report
A group of public limited companies that commonly own a joint venture is known as
Answer Details
A group of public limited companies that commonly own a joint venture is known as a consortium. In this arrangement, each company in the consortium contributes resources, such as capital or technology, to the joint venture in order to achieve a shared goal. The consortium is often formed to take advantage of the strengths and expertise of each individual company, with the goal of achieving greater efficiency and profitability than would be possible on their own.
Question 15 Report
Which of the following is a disadvantage of foreign trade?
Answer Details
One of the disadvantages of foreign trade is that it encourages dumping. Dumping occurs when a country exports goods at a price lower than their normal value in the domestic market, which makes it difficult for domestic producers to compete. Dumping can lead to the closure of domestic industries, loss of jobs and negatively impact a country's economy.
Question 16 Report
Which of the following does not aim at protecting the customer?
Answer Details
The Partnership Act does not aim at protecting the customer. The Partnership Act is a law that governs the formation and operation of partnerships between individuals or entities. It defines the rights and responsibilities of partners, and sets out the procedures for managing and dissolving partnerships. It does not have a direct impact on the protection of customers. In contrast, the other options listed are laws that are designed to protect customers. The Sales of Goods Act, for example, sets out rules that require goods to be of satisfactory quality, fit for purpose, and as described. The Fair Trading Act prohibits misleading and deceptive conduct by businesses. The Price Control Act allows the government to regulate the prices of certain goods and services to prevent unfair pricing practices. The Foods and Drugs Act regulates the sale and distribution of food and drugs to ensure that they are safe and of high quality.
Question 17 Report
The price charged for leasing a ship is known as
Answer Details
The price charged for leasing a ship is known as "freight". Freight is the amount of money paid to the owner of the ship for transporting goods from one place to another. It is usually calculated based on the weight or volume of the goods being transported and the distance they are traveling. Freight charges cover the cost of fuel, crew, insurance, and other expenses incurred during the voyage. The term "freight" can also be used to refer to the goods being transported by the ship.
Question 18 Report
Which of the following is primarily established to promote the growth of industry in Nigeria?
Answer Details
NIDB (Nigeria Industrial Development Bank) is primarily established to promote the growth of industry in Nigeria. NIDB is a development finance institution established by the Nigerian government to provide financial assistance and advisory services to the industrial sector in Nigeria. Its main objective is to facilitate the growth and development of industries by providing financial assistance, equity participation, technical assistance and other related services to eligible enterprises.
Question 19 Report
The shares of XYZ Plc are quoted at the stock exchange by a jobber at 85k for k share. How much will Alabi, an investor who buys 500 shares pay?
Answer Details
Question 20 Report
The contract between ship owners and hires whereby the hires take full control of the ship is called?
Answer Details
Question 21 Report
Which of the following is not a business resource?
Answer Details
"Wages" is not a business resource. Wages are payments made to employees in exchange for their labor. In other words, wages are a cost associated with utilizing the resource of "manpower." The other options listed are all examples of physical resources that are necessary for conducting business. "Man" can also be considered a resource, as it refers to the human labor that is required to perform certain tasks, but it is not a physical resource like the others listed.
Question 22 Report
The commercial term "Caveat emptor" means, Let the
Answer Details
The commercial term "Caveat emptor" means "buyer beware." The phrase Caveat emptor is a Latin term that means "Let the buyer beware." This phrase is commonly used in commercial transactions to indicate that the buyer is responsible for verifying the quality, suitability, and condition of the product or service they are purchasing. In other words, the seller is not responsible for any defects or problems that the buyer may encounter after the transaction is complete. The buyer is expected to take reasonable steps to inspect and evaluate the product before making a purchase decision. The principle of Caveat emptor places the burden of risk on the buyer, rather than the seller, and emphasizes the importance of due diligence and research before making any purchases. In summary, the term "Caveat emptor" means "buyer beware." It indicates that the buyer is responsible for verifying the quality and condition of the product or service they are purchasing, and places the burden of risk on the buyer rather than the seller.
Question 23 Report
Which of the following ensures that the quality of a product is maintained?
Answer Details
The Standards Organisation of Nigeria ensures that the quality of a product is maintained. This is because the Standards Organisation of Nigeria is responsible for developing, publishing and enforcing standards for products and services in Nigeria. They ensure that products meet specific standards of safety, quality, and reliability. The Standards Organisation of Nigeria carries out inspections, tests and certifications of products to ensure they meet these standards. By doing so, they help protect consumers from substandard or unsafe products, promote fair competition among businesses, and enhance the overall quality of products in Nigeria.
Question 24 Report
The sum of money the assurer is prepared to pay the assured in total discharge of a contract before its maturity is
Answer Details
The sum of money the assurer is prepared to pay the assured in total discharge of a contract before its maturity is called the "surrender value". It refers to the amount of money that an insurance company will pay to the policyholder if they choose to terminate or surrender their policy before its maturity date. The surrender value is typically calculated based on the premiums paid and the length of time that the policy has been in force. It is important to note that surrendering a policy early may result in a lower payout than if the policy were to reach maturity. Additionally, surrendering a policy early may also result in penalties or fees, so it is important to carefully consider all options before making a decision.
Question 25 Report
Which of these management functions involves checking performance against set standards?
Answer Details
The management function that involves checking performance against set standards is controlling. Controlling involves monitoring and measuring actual performance against predetermined standards or goals. It involves identifying any deviations from the standards or goals and taking corrective action as necessary to bring performance back in line with the standards. In simpler terms, controlling is like a checkpoint to ensure that everything is going according to plan and making adjustments if necessary to keep things on track. Coordinating, planning, directing, and organizing are all important management functions, but they do not involve checking performance against set standards.
Question 26 Report
Which of the following stresses the use of only specialists to head departments?
Answer Details
The Functional Organisation Structure stresses the use of only specialists to head departments. In this type of structure, an organization is divided into departments based on the function or task they perform, such as finance, marketing, production, and human resources. Each department is headed by a specialist who has expertise and experience in that particular function. The main advantage of this structure is that it allows for a high level of specialization and expertise in each department. This enables the organization to perform its functions more efficiently and effectively. However, the disadvantage of this structure is that it can lead to a lack of coordination between departments, as each department is focused on its own tasks and goals.
Question 27 Report
Which of the following is applicable to foreign trade only?
Answer Details
The option that is applicable to foreign trade only is the Consular invoice. A consular invoice is a document required by some countries' customs officials to verify the value, quantity, and nature of the shipment. It is used for customs purposes and to assess the duties and taxes to be paid on goods imported into a foreign country. Consular invoices are issued by the consulate of the country to which the goods are being shipped. The other options listed can be applicable to both domestic and foreign trade.
Question 28 Report
The capital market is a market
Question 29 Report
An agreement that is enforceable in law is called?
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 that creates an obligation to do or not do something. It involves an offer, an acceptance, consideration, and an intention to create legal relations. Once the parties have entered into a contract, they are bound by its terms and can be held liable for any breach of those terms. A contract can be either written or oral, as long as it meets the legal requirements for formation.
Question 30 Report
Which of the following is not true of a private limited company?
Answer Details
The statement that is not true of a private limited company is "its shares are freely transferable." In a private limited company, the number of shareholders is limited, and the shares are not freely transferable. The transfer of shares requires the consent of other shareholders or directors, and the company's articles of association may also have restrictions on share transfers. This is different from a public limited company, where shares can be freely bought and sold on a stock exchange.
Question 31 Report
A document signed by a customs officer of the exporting country to confirm the country of export of the goods is
Answer Details
A document signed by a customs officer of the exporting country to confirm the country of export of the goods is a certificate of origin. This document is used in international trade to prove the origin of goods and may be required by the importing country's customs authority to determine the correct tariff and tax rate. It certifies that the goods were produced, manufactured, or processed in a particular country and helps prevent fraud and ensure compliance with international trade regulations.
Question 32 Report
Small scale retail attracts a lot of new enterpreneurs in West Africa because
Answer Details
Small scale retail attracts a lot of new entrepreneurs in West Africa because only a small amount of capital is needed to start the business. This means that people who do not have a lot of money to invest can still become business owners. Additionally, it is easy to succeed with the business because there is a high demand for goods and services in West Africa, and people prefer to buy from small, local retailers who they trust. While good training in retail trade can be helpful, it is not the main reason why small scale retail is attractive to new entrepreneurs. Banks may be willing to lend to retailers, but this is not always the case, and access to loans may be limited. Government tax exemptions for retailers are also not a significant factor in the decision to start a small scale retail business.
Question 33 Report
Containers are suitable for transporting goods by
Answer Details
Containers are suitable for transporting goods by road, sea, and rail, which is option number five. Containers are large, rectangular boxes that are designed to hold goods and cargo during transportation. They can be loaded onto trucks for transport by road, onto ships for transport by sea, and onto trains for transport by rail. Using containers for transportation offers many benefits. First, containers are standardized, which means that they can be easily moved between different modes of transportation without the need for repackaging. This can help to streamline the transportation process and reduce costs. Containers are also secure and weather-resistant, which helps to protect the goods inside during transportation. They can be locked and sealed to prevent theft and damage, and they are designed to withstand harsh weather conditions. Overall, the use of containers has revolutionized the transportation industry, making it easier and more efficient to transport goods across different modes of transportation and long distances.
Question 34 Report
A firm that accepts a portion of the risk involved in an insurance contract is
Answer Details
An underwriter is a firm that accepts a portion of the risk involved in an insurance contract. When an individual or business buys an insurance policy, they pay a premium to the insurance company, which assumes the risk of any loss or damage that may occur. However, sometimes the insurance company may not want to take on the entire risk itself, especially for large policies or policies that are deemed risky. In such cases, the insurance company may turn to an underwriter, which agrees to take on a portion of the risk in exchange for a share of the premium. The underwriter can be an individual or a firm, and their role is to evaluate the risk involved and determine the appropriate level of coverage and premium to charge.
Question 35 Report
An agent who guarantees payments for goods sold is
Answer Details
An agent who guarantees payments for goods sold is called a "del credere agent". In commercial transactions, a del credere agent acts as a surety for the buyer's payment obligations to the seller. The del credere agent guarantees the payment of the purchase price to the seller, usually in exchange for an additional commission or fee. The del credere agent bears the risk of the buyer's non-payment, thereby ensuring that the seller receives the full amount due for the goods sold.
Question 36 Report
Which of the following are functions of marketing?
Answer Details
The functions of marketing include production, promotion, distribution, and pricing. Production refers to the creation of a product or service that meets the needs of the target market. This includes researching and developing the product, determining the features and benefits that will appeal to the target market, and creating a production process that is efficient and cost-effective. Promotion involves the communication of information about the product or service to the target market. This includes advertising, sales promotions, personal selling, and public relations. The aim of promotion is to inform, persuade and remind customers about the product, and to create a favorable image of the company and its products or services. Distribution refers to the process of making the product or service available to the target market. This includes transporting the product, storing it, and making it available for purchase through retail outlets, wholesalers or online channels. The aim of distribution is to ensure that the product is available to the customer at the right place and at the right time. Pricing refers to the process of setting a price for the product or service that is acceptable to both the customer and the company. This involves considering the production costs, market demand, competition, and other factors that may affect the pricing decision. The aim of pricing is to set a price that is fair and competitive, while also generating a profit for the company. Therefore, among the given options, the functions of marketing are production, promotion, distribution, and pricing.
Question 37 Report
The primary aim of commerce is to
Answer Details
The primary aim of commerce is to exchange goods and services. Commerce involves the buying and selling of goods and services in order to satisfy human wants and needs. Through commerce, producers are able to sell their products to consumers who are willing and able to buy them. In return, consumers are able to obtain the goods and services they desire. Therefore, the exchange of goods and services is the primary aim of commerce.
Question 39 Report
The allowance given to a retailer to enable him make a profit is known as
Answer Details
The allowance given to a retailer to enable him make a profit is known as a trade discount. Trade discounts are reductions from the list price of a product or service and are given to wholesalers and retailers. It is usually a percentage of the list price and is intended to motivate retailers to sell the products at a higher profit margin. Trade discounts are not usually shown on invoices or financial statements, but are incorporated into the pricing structure of the product or service.
Question 40 Report
Which of the following is drawn up as a guide to the running of a Partnership?
Answer Details
The document that is drawn up as a guide to the running of a Partnership is the "Deed of Agreement." This document specifies the terms and conditions under which the partnership will operate, such as the responsibilities of each partner, the profit-sharing ratio, the procedure for admitting new partners, and the process for resolving disputes. It is a legally binding document and provides a framework for the partnership's smooth operation.
Question 41 Report
Tax levied on goods at each stage of their movement from production to the final consumer is known as
Answer Details
A tax levied on goods at each stage of their movement from production to the final consumer is known as a value added tax (VAT). This means that when a good is produced, sold by the manufacturer to the wholesaler, and then sold again by the wholesaler to the retailer, a tax is levied on the value added at each stage of the process. The final consumer then pays the total tax levied on the good. VAT is an indirect tax that is usually a percentage of the price of the good and is collected by the government. It is commonly used by governments to generate revenue and is widely used around the world.
Question 42 Report
Which of the following is used to transmit typed messages over long distances?
Answer Details
A teleprinter is used to transmit typed messages over long distances. It is a device that uses electrical signals to send and receive text-based messages between two locations. The teleprinter was widely used for communication purposes in the past, especially for sending and receiving messages through the telegraph system. It has now largely been replaced by more modern communication technologies such as email and instant messaging.
Question 43 Report
Which of the following is not a way of raising capital for business?
Answer Details
The way of raising capital for business that is not listed among the options is: Issuing dividend warrants. Dividend warrants are documents that are sent by a company to its shareholders, as a means of payment of dividends. They are not a way of raising capital for the company, but rather a way of distributing the profits of the company to its shareholders. On the other hand, issuing of bonds, borrowing, savings, and ploughing back profit are all ways that a business can raise capital to finance its operations or expansion. Issuing of bonds involves borrowing money from investors and paying them back with interest at a specified time in the future. Borrowing involves taking loans from financial institutions or other lenders, which must be repaid with interest. Savings refer to the money that a business sets aside from its profits to fund future investments. Ploughing back profit involves reinvesting profits earned by a company back into the business, instead of distributing them as dividends.
Question 44 Report
Which of the following may be used to restrict imports?
i. Bill of lading ii. Specific Licenses iii.Foreign exchange rationing iv. Letters of credit v.Customs duties and tariffs
Answer Details
The options that may be used to restrict imports are ii, iii and v only, which are specific licenses, foreign exchange rationing, and customs duties and tariffs. Specific licenses are a type of permit that must be obtained before certain goods can be imported into a country. This allows the government to limit the quantity of a particular product that can be imported. Foreign exchange rationing involves limiting the amount of foreign currency that is available for individuals and businesses to use in transactions. This can make it more difficult and expensive to import goods from other countries. Customs duties and tariffs are taxes that are placed on imported goods, making them more expensive and less competitive with domestically-produced goods. This can help to protect domestic industries and limit the volume of imports. Bill of lading is a document that serves as a receipt of goods shipped, while letters of credit are financial instruments that help to facilitate international trade. They do not have a direct role in restricting imports.
Question 45 Report
An organization that builds access roads for the benefit of the community in which it is located has fulfilled its
Answer Details
The organization that builds access roads for the benefit of the community has fulfilled its social responsibility. Social responsibility refers to the voluntary actions taken by an organization to improve the well-being of the community and society as a whole. By building access roads, the organization is providing a service that benefits the community, even though it may not directly benefit the organization financially. Fulfilling social responsibility can also have a positive impact on a company's reputation and can lead to increased customer loyalty and support.
Question 46 Report
In a business environment, which of the following variables can a business man conveniently control?
Answer Details
In a business environment, a businessman can conveniently control the product variable. The product variable refers to the goods or services that the business produces or offers to the market. A businessman has control over the quality, design, packaging, and pricing of the product, which are all factors that can determine the success of the business. The other variables listed, such as politics, culture, economy, and laws, are external factors that are beyond the control of the businessman. While a businessman can monitor and adapt to changes in these variables, they cannot directly control them.
Question 47 Report
Which of the following is not a reason for imposing import duties? To
Answer Details
The reason for imposing import duties is to achieve certain objectives. However, one of the options listed is not a reason for imposing import duties. That option is "improve quality of goods for consumers." Import duties are taxes placed on goods imported into a country. They are often used as a means of protecting domestic industries and increasing revenue for the government. Some of the common reasons for imposing import duties include improving the balance of trade, protecting infant industries, preventing dumping, and generating revenue for the government. Therefore, improving the quality of goods for consumers is not a reason for imposing import duties.
Question 48 Report
Which of the following is a non-indemnity insurance?
Answer Details
A non-indemnity insurance is a type of insurance where the insurer pays a fixed amount regardless of the actual loss suffered by the insured. Of the options given, Personal Accident Insurance is a non-indemnity insurance because it pays a fixed sum of money in the event of an accident or injury, regardless of the actual expenses incurred by the insured. The other options, such as Burglary Insurance, Fire Insurance, Consequential loss Insurance, and Third Party Insurance, are all indemnity insurances, where the amount paid by the insurer is based on the actual loss or damage suffered by the insured.
Question 49 Report
Which of the following is has a fixed rate of dividend?
Answer Details
Preference share has a fixed rate of dividend. A preference share is a type of share that gives its holders priority over ordinary shareholders in terms of dividend payments and asset distribution. This means that preference shareholders are entitled to receive a fixed rate of dividend before any dividend is paid to ordinary shareholders. The fixed rate of dividend is usually expressed as a percentage of the face value of the preference share, and it remains the same throughout the life of the share. This means that the preference shareholder can expect to receive a regular income from their investment, regardless of how the company is performing. In contrast, ordinary shares do not have a fixed rate of dividend. The dividend paid on ordinary shares is determined by the company's profitability and is subject to change from year to year. Ordinary shareholders also have voting rights and are entitled to share in the company's profits and assets after preference shareholders have been paid. In summary, preference shares have a fixed rate of dividend, while ordinary shares do not. Preference shareholders receive a regular income from their investment, regardless of how the company is performing, while ordinary shareholders share in the company's profits and assets after preference shareholders have been paid.
Question 50 Report
The form given by the Customs Authority to enable an importer examine goods before the arrival of the bill of lading is known as
Answer Details
Question 51 Report
The document issued to a newly formed public company to commence business is called the
Answer Details
Question 52 Report
Which of the following is not a reason for dishonoring a cheque?
Answer Details
A cheque is a written order from an account holder instructing the bank to pay a specified sum of money to a named recipient. However, there are certain circumstances under which the bank may refuse to honor the cheque. Special crossing, where the cheque bears two parallel diagonal lines at the top left corner and the words "and company" or "not negotiable" between the lines, is not a reason for dishonoring a cheque. It is rather an instruction to the collecting bank on how to handle the cheque. The other options are reasons why a cheque may be dishonored. Insufficient funds means that the account holder does not have enough money in their account to cover the amount of the cheque. Different amounts in words and figures, uninitiated alteration, and wrong signature are all reasons for dishonoring a cheque due to discrepancies or irregularities in the cheque.
Question 53 Report
Which of the following is a direct service?
Answer Details
Among the given options, "Teaching" is a direct service. Direct services are those that involve a direct interaction between the service provider and the customer, without the involvement of any physical goods. In the case of teaching, the teacher provides knowledge and skills directly to the student, without the need for any tangible product. Other examples of direct services include hairdressing, healthcare, and legal advice.
Question 54 Report
An association of employees in an organization is called a
Answer Details
An association of employees in an organization is called a trade union. A trade union is a group of workers who come together to achieve common goals such as improving working conditions, wages, benefits, and job security. Trade unions negotiate with employers on behalf of their members to reach collective agreements that benefit both parties. The primary function of a trade union is to protect the interests of its members and ensure that they are treated fairly in the workplace. Trade unions also provide their members with support, information, and advice on a range of employment issues.
Question 55 Report
Goods in bonded warehouses are under the strict supervision of the
Answer Details
Goods in bonded warehouses are under the strict supervision of the Customs Authority. A bonded warehouse is a storage facility authorized by Customs where imported goods can be stored without payment of duties or taxes until they are released for local consumption or export. The Customs Authority oversees the movement and storage of goods in bonded warehouses, ensuring that they comply with all relevant regulations. The authority also monitors the movement of goods in and out of the warehouse and ensures that duties and taxes are paid when the goods are released for local consumption or export. Therefore, the Customs Authority has strict supervision over goods in bonded warehouses.
Question 56 Report
The face to face contact between sellers and buyers with the aim of selling a product is known as
Answer Details
The face to face contact between sellers and buyers with the aim of selling a product is known as personal selling. In personal selling, the salesperson directly interacts with the potential customer, explains the product or service, and persuades them to make a purchase. Personal selling can take place in different settings, such as in a retail store, at a customer's home or workplace, or at a trade show. Personal selling is a powerful marketing tool as it allows the salesperson to tailor their approach to the customer's specific needs and objections, and address them in real-time. While advertising, promotion, and public relations are also important marketing activities, they do not involve direct face to face contact with the customer for the purpose of selling a product.
Question 57 Report
When the government decides to run a statutory corporation as a profit-oriented enterprise, this is known as
Answer Details
When the government decides to run a statutory corporation as a profit-oriented enterprise, it is known as commercialization. In this case, the government treats the statutory corporation as a business and aims to maximize profits while still maintaining its public service responsibilities. This may involve changes in management, restructuring, or other measures to increase efficiency and revenue generation. The goal of commercialization is to reduce government intervention and increase the self-sufficiency of the corporation.
Question 58 Report
Mr Chidi insured his house against fire. The house was destroyed by flood. Which of the following principles prevented him from being compensated?
Answer Details
The principle that prevented Mr. Chidi from being compensated for the damage to his house is "proximate cause." Proximate cause is a fundamental principle in insurance that states that an insurer is only liable for losses caused by perils that are covered by the insurance policy. In this case, Mr. Chidi's insurance policy only covered damage caused by fire, not flood. Since the flood was the proximate cause of the damage, rather than fire, the insurance company is not responsible for compensating Mr. Chidi. Uberrimae fidei refers to the principle of utmost good faith, which requires both the insurer and the insured to disclose all relevant information. Subrogation refers to the principle that allows an insurer to assume the rights of the insured to pursue legal action against a third party responsible for the loss. Indemnity refers to the principle of compensation for the actual amount of loss suffered. Insurable interest refers to the principle that the insured must have a financial interest in the property or person being insured.
Question 59 Report
A group of people in the same line of business who come together for the interest of its members is called
Question 60 Report
Which of the following is not true of franking machines ?
Answer Details
The option that is not true of franking machines is "Postage stamp is used." Franking machines are devices used to print postage impressions directly onto mails, and they are licensed by the Nigerian Postal Service (NIPOST). Companies can hire and install them on their premises to facilitate the postage process. They can also print the company's logo and other details on mails for branding purposes. To use franking machines, advance payments are made to NIPOST, and there is no need for postage stamps. Therefore, is not true of franking machines.
Question 61 Report
A retail co-operative society aims at
Answer Details
A retail co-operative society is a type of business organization owned and controlled by its members who are also its customers. The primary objective of a retail co-operative society is to provide goods and services to its members at affordable prices, while also maximizing their benefits. The main aim of a retail co-operative society is to cut off the profits of middlemen and wholesalers, which leads to the reduction in the cost of goods and services. Therefore, a retail co-operative society aims at providing quality goods and services to its members at the lowest possible prices, as well as encouraging members to save money.
Question 62 Report
Which of the following services is not rendered by NIPOST
Answer Details
The service that is not rendered by NIPOST is telephone. NIPOST, which stands for Nigerian Postal Service, is responsible for providing postal services in Nigeria. The organization offers various services such as express delivery, recorded delivery, parcel post, and cash delivery. However, telephone service is not a part of their offerings as they are primarily responsible for the physical delivery of mail and packages, not telecommunications.
Question 63 Report
In marine insurance, the deliberate throwing of some goods into the sea to prevent the ship from sinking is an example of
Answer Details
In marine insurance, the deliberate throwing of some goods into the sea to prevent the ship from sinking is an example of a general average loss. General average loss is a loss arising from a voluntary sacrifice made to protect the ship and the rest of the cargo during an emergency situation such as a storm, fire or piracy. In this situation, all parties involved in the voyage proportionally share the loss, including the owners of the sacrificed goods. The general average loss is calculated by dividing the total value of the saved ship and cargo by the value of the sacrificed goods.
Question 64 Report
Contracts for the carriage of goods by sea are generally called
Question 65 Report
Dumping means selling goods abroad
Answer Details
Dumping refers to the act of selling goods abroad at a lower price than they are sold in the home market. This can be done to gain a foothold in a new market, to drive out local competitors, or to get rid of excess inventory. Dumping can be seen as an unfair trade practice as it can harm local industries and create an uneven playing field for competition. To prevent dumping, some countries impose anti-dumping duties on the imported goods to bring their price closer to the domestic market price.
Question 66 Report
Which of the following is suitable for transporting fish a long distance?
Answer Details
The option that is suitable for transporting fish a long distance is a refrigerated ship. This is because fish is a perishable commodity, and it needs to be kept fresh to prevent spoilage during transportation. A refrigerated ship has special cooling equipment that can maintain a low temperature in its cargo hold, which helps to preserve the freshness of the fish. This makes it an ideal option for transporting fish over long distances. The other options, such as tramp, cargo liner, tanker, and barge, may not have the necessary equipment or facilities to keep the fish fresh during transportation.
Question 67 Report
Management is
Answer Details
Management is the process of getting things done through other people. It involves planning, organizing, directing, and controlling resources (including human, financial, and material resources) to achieve organizational goals and objectives. Managers are responsible for setting the direction for their organizations, making decisions, allocating resources, and ensuring that plans are implemented effectively. Good management is critical to the success of any organization, as it helps to ensure that resources are used efficiently and effectively to achieve desired outcomes.
Question 68 Report
When goods are sent through an independent carrier, the document used by the sender is
Answer Details
When goods are sent through an independent carrier, the document used by the sender is a consignment note. This is a document that acts as a contract between the sender and the carrier, and it contains details such as the sender's and receiver's names and addresses, a description of the goods, the weight and quantity of the goods, and any special instructions for the carrier. The consignment note also serves as a receipt for the sender, confirming that the goods have been handed over to the carrier.
Question 69 Report
The value of a product expressed in monetary terms is known as
Answer Details
The value of a product expressed in monetary terms is known as its price. Price is the amount of money that a customer pays for a product or service. It is the exchange value of a product, which is determined by various factors such as production cost, market demand and supply, competition, and other economic factors. Price is a critical element of the marketing mix, as it affects a company's revenue and profitability, customer perception, and market positioning. Companies may use different pricing strategies to determine the price of their products or services, such as cost-plus pricing, value-based pricing, penetration pricing, and skimming pricing.
Question 70 Report
An insurance company shares its accepted risk with others in the form of
Answer Details
An insurance company shares its accepted risk with others in the form of reinsurance. Reinsurance is a process by which an insurance company transfers or shares its risks with another insurance company. When an insurance company sells policies to individuals or businesses, it is taking on the risk of having to pay out claims in case of losses or damages. By purchasing reinsurance, the primary insurance company can reduce its exposure to risk and limit the potential losses it may have to pay out. The reinsurance company assumes a portion of the risk and will pay a portion of the claims if necessary. Reinsurance is commonly used by insurance companies to manage their risk and ensure their financial stability.
Question 71 Report
Which of the following is not a barrier to the smooth functioning of ECOWAS?
Answer Details
"Adequate population" is not a barrier to the smooth functioning of ECOWAS. ECOWAS (Economic Community of West African States) is a regional economic union made up of 15 West African countries that promotes economic integration and cooperation. While ECOWAS faces several challenges in achieving its goals, such as political crises and fear of domination, having an adequate population is not a barrier to its smooth functioning. Different currencies and languages can create obstacles to trade and communication, respectively, within the region. Political crises can destabilize governments and undermine regional cooperation. Fear of domination, particularly by larger and more powerful member states, can also impede progress towards economic integration.
Question 72 Report
The process of involving local businessmen in the ownership and control of businesses that were formerly owned by foreigners is called
Answer Details
The process of involving local businessmen in the ownership and control of businesses that were formerly owned by foreigners is called "indigenization". Indigenization is a policy that promotes local ownership and control of businesses, industries, and resources, rather than having them owned and controlled by foreign entities. The aim is to empower local businesses and entrepreneurs, create employment opportunities, and boost economic growth by making sure that the country's resources and wealth are not exclusively controlled by foreigners. The policy of indigenization is usually promoted by governments through various laws, regulations, and incentives to encourage the participation of local investors in various sectors of the economy.
Question 73 Report
Specialization is possible as a result of
Question 74 Report
The difference between the total amount of money received by a country and the total amount paid to other countries within a given period is the
Answer Details
The difference between the total amount of money received by a country from its exports and the total amount paid to other countries for imports within a given period is known as the balance of trade. However, the question is asking about the difference between the total amount of money received and paid by a country for all economic transactions, including imports and exports, within a given period. This is known as the balance of payments. Therefore, the answer is "balance of payments".
Question 75 Report
Which of the following functions is not performed by retailers?
Answer Details
Insuring goods for customers is not a function typically performed by retailers. Retailers are businesses that sell goods or services directly to consumers. They play an important role in the distribution channel, which involves getting products from manufacturers or wholesalers to the end consumer. Retailers perform a variety of functions, including breaking bulk (purchasing large quantities of goods and selling them in smaller quantities), ensuring regular stock for consumers, branding and packaging, and storing a variety of goods. However, insuring goods for customers is not a typical function of retailers. While retailers may offer warranties or return policies, it is not their responsibility to insure goods against damage or loss during transit or use. This is typically the responsibility of the manufacturer, shipper, or a third-party insurer.
Question 76 Report
The department that deals with internal grievances and maintenance of discipline in an organization is the
Answer Details
The department that deals with internal grievances and maintenance of discipline in an organization is the personnel department. The personnel department, also known as the human resources department, is responsible for managing the organization's employees. This includes hiring and firing, training and development, performance management, and handling internal grievances and disciplinary issues. When an employee has a problem or a complaint, they can approach the personnel department for assistance. The department will investigate the issue and take appropriate action to resolve the problem. This may involve mediating a dispute between employees or disciplining an employee who has violated company policies. While other departments like accounts, maintenance, public relations, and productions are essential to the functioning of the organization, they do not typically handle internal grievances or discipline. Accounts department handles financial matters, maintenance deals with upkeep and repair of facilities, public relations department handles the organization's communication with the public, and production department is responsible for creating the organization's goods or services.
Question 77 Report
A partner who does not play an active role in a business but contributes capital is a
Answer Details
A partner who contributes capital to a business but does not play an active role in the day-to-day operations of the business is known as a dormant partner. Dormant partners are also called sleeping partners, silent partners, or financial partners. They contribute to the business by investing money or other assets, but they do not participate in the management of the business or make any decisions regarding the business's operations. Dormant partners are typically not involved in the day-to-day decision-making of the business, and they are not liable for any debts or losses incurred by the business beyond their initial investment. Their involvement in the business is limited to providing financial resources to support the business's growth and development. In summary, a dormant partner is a partner who provides financial capital to a business but does not participate in the management or decision-making of the business. They are also not liable for the debts or losses of the business beyond their initial investment.
Question 78 Report
Which of the following may not be considered when choosing an appropriate channel of distribution for a new product?
Answer Details
Question 79 Report
The law governing the operations of companies and partnership in Nigeria is the
Answer Details
Question 80 Report
For which of the following reasons would a seller not issue a credit note to a customer? If
Answer Details
Question 81 Report
In which of the following business units are the owners mostly the customers?
Answer Details
In co-operatives, the owners are mostly the customers. A co-operative is a type of business unit that is owned and democratically controlled by its members, who are also its customers. The main purpose of a co-operative is to provide goods and services to its members at a fair price, while also generating a profit. The members of a co-operative are usually individuals or businesses that have a common interest or need, and they pool their resources to form the co-operative. Each member has an equal say in the management and decision-making of the co-operative, regardless of the amount of money they have invested or the number of shares they own. Therefore, in a co-operative, the owners and customers are often the same people.
Question 82 Report
Which of the following functions may not be performed by a whole saler?
Answer Details
A wholesaler is a business that buys goods in large quantities from manufacturers and sells them in smaller quantities to retailers. Wholesalers act as intermediaries between manufacturers and retailers, and they perform several functions to make the supply chain more efficient. Out of the options provided, the function that may not be performed by a wholesaler is manufacturing. Wholesalers do not typically engage in the production of goods, but rather focus on the distribution of goods produced by others. Transporting, warehousing, financing, and branding are all functions that may be performed by a wholesaler. Transporting involves moving goods from the manufacturer to the retailer, warehousing involves storing the goods until they are sold, financing involves providing credit to retailers to purchase the goods, and branding involves promoting the goods to consumers.
Question 83 Report
Which of the following is not a credit instrument used in business transactions?
Answer Details
Question 84 Report
Which of the following is an advantage of personal selling?
Answer Details
An advantage of personal selling is immediate feedback. Personal selling is the process of selling goods or services through face-to-face interaction with customers. During this interaction, the salesperson can receive immediate feedback from the customer in terms of their level of interest, objections, and concerns. This allows the salesperson to adjust their sales pitch in real-time and address any issues the customer may have, increasing the likelihood of making a sale. Other advantages of personal selling include the ability to provide personalized service and build relationships with customers.
Question 85 Report
When a company buys up firms supplying it with raw materials, this is an example of
Answer Details
When a company buys up firms supplying it with raw materials, this is an example of backward integration. Backward integration is when a company acquires or merges with a supplier of its raw materials or components. This strategy is used to gain more control over the supply chain, reduce costs, and increase efficiency. By bringing the supplier in-house, the company can eliminate the uncertainties associated with external suppliers such as delivery delays, quality issues, and price fluctuations.
Question 86 Report
A foreign order which instructs an agent to buy certain goods at a particular place called
Answer Details
Question 87 Report
Industrial, commercial and direct services are branches of
Question 88 Report
Which of the following activities makes the consumer its focus in decision making?
Answer Details
The activity that makes the consumer its focus in decision making is the "Marketing Concept". The marketing concept is a customer-centric approach to business that prioritizes understanding and meeting the needs and wants of consumers. It involves researching the market to identify customer needs and wants, developing products and services to meet those needs, and then promoting and delivering those products and services in a way that satisfies the customer and builds long-term relationships. The goal of the marketing concept is to create customer satisfaction and loyalty, which ultimately leads to increased sales and profits for the business.
Question 90 Report
Another name for consignment note is
Answer Details
A consignment note is also known as a waybill. A waybill is a document that accompanies goods shipped by a carrier and contains details about the shipment, such as the type of goods, quantity, destination, and delivery instructions. It serves as a proof of shipment and can be used to track the movement of the goods during transit.
Question 91 Report
One of the features of a supermarket is
Answer Details
A supermarket is a large self-service retail store that sells a wide range of household goods, including food and non-food items. One of the features of a supermarket is that it has many shops under one roof, with each section dedicated to a particular product category. Supermarkets often have a standardized layout, making it easy for customers to find what they are looking for. Another feature is that they are usually centrally controlled from headquarters, with decisions made about what products to stock, pricing, and promotions. Overall, supermarkets are designed to offer a convenient and efficient shopping experience for customers.
Question 92 Report
A nation's earnings from tourism are classified as
Answer Details
A nation's earnings from tourism are classified as "invisible exports". This is because they do not involve the physical movement of goods across borders, but instead, represent income generated from services provided to non-residents, such as accommodation, food, transportation, and entertainment. The term "invisible" refers to the fact that these transactions do not involve tangible products being exported, unlike visible exports such as manufactured goods or agricultural products.
Question 93 Report
A statement of account is a
Answer Details
A statement of account is a document that summarizes a customer's transactions over a given period. It lists all the purchases made by the customer, any payments made, and any outstanding balances. This statement helps the customer to keep track of their financial activities and enables them to reconcile their records with those of the seller or creditor.
Question 94 Report
Write short notes on each of the following
(a) Marine insurance,
(b) Accident insurance
(c) Group insurance
(d) Export Credit Guarantee insurance
(e) Fire insurance
Answer Details
None
Question 95 Report
(a) Give two uses of each of the following documents in business transaction.
(I) Proforma invoice
(ii) Advice note
(iii) Credit note
(iv) Statement of account
(v) Receipt.
None
Answer Details
None
Question 96 Report
(a) State five reasons why road transport would be preferred to rail transport
(b) Give five functions of the Nigerian Airport Authority.
Answer Details
None
Question 97 Report
Explain the social responsibilities of a business to the following:
(a) the community
(b) the employee
(c) the shareholders
(d) the government
(e) the consumers.
Question 98 Report
(a) Give three similarities and three differences between hire purchase and deferred payment.
(b) Explain four reasons why a trader would prefer the use of cheque to cash for large payments.
Answer Details
None
Question 99 Report
(a) Give two examples of small-scale retail outlets and three examples of large- scale retail outlets
(b) Explain five reasons for the survival of small-scale retailers.
Question 100 Report
(a) Give any five features which are common to both cooperative societies and private limited companies
(b) Explain any five differences between cooperative societies and private limited companies.
None
Answer Details
None
Question 101 Report
(a) Give four uses of an Organization chart
(b) Explain three reasons why managers may refuse to delegate
(c) State three advantages of delegation of authority.
Answer Details
None
Question 102 Report
(a) What is public relations?
(b) State and explain five media of public relations.
Question 103 Report
State five aids to trade and explain how each facilitates trade.
Answer Details
None
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