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Question 1 Report
The term utmost good faith in insurance means?
Answer Details
The term "utmost good faith" in insurance means that both the insured and insurer are required to disclose all material facts and information relevant to the insurance policy before the contract is formed. This principle ensures that both parties enter into the contract with a full understanding of the risks involved, and that there is no intentional or unintentional misrepresentation or fraud. The duty of utmost good faith applies throughout the life of the policy, which means that both parties must continue to disclose any material changes that occur during the policy period.
Question 2 Report
Which of the following is classified under current assets
Answer Details
Stock is classified under current assets. Current assets are assets that are expected to be converted into cash within one year or less. Stock, also known as inventory, is a current asset because it represents the goods or products that a business has on hand and expects to sell within a year or less. Machinery, motor vehicle, and fittings are not classified as current assets because they are typically used by a business for more than a year and are not expected to be converted into cash in the short term.
Question 3 Report
Which of the following aids to trade facilitates production ahead of demand
Answer Details
The aid to trade that facilitates production ahead of demand is warehousing. Warehousing refers to the act of storing goods before they are sold. By storing goods in a warehouse, producers can produce goods in large quantities and store them until they are needed by consumers. This enables producers to take advantage of economies of scale and reduces the risk of stockouts. Therefore, warehousing helps to facilitate production ahead of demand by providing a means for producers to store excess inventory until it is needed by consumers.
Question 4 Report
The insurance services rendered to a foreign shipping company are treated as?
Answer Details
The insurance services rendered to a foreign shipping company are treated as "invisible export." An invisible export is a service provided by one country to another, where the payment for the service does not result in the physical movement of goods across the border. In this case, the insurance service provided to a foreign shipping company does not involve the physical movement of goods across borders, but it generates income for the country providing the service, hence treated as an invisible export.
Question 5 Report
The type of wholesaler that combines selling, delivery and collection in one operation is
Answer Details
The type of wholesaler that combines selling, delivery and collection in one operation is a "truck wholesaler". A truck wholesaler is a wholesaler who operates from a truck and provides a mobile service to retailers by selling, delivering, and collecting payments all in one operation. They typically carry a limited range of products and cater to retailers who may not have the resources or time to visit traditional wholesalers. This type of wholesaler is often used in rural areas or by small retailers who have limited access to other types of wholesalers.
Question 6 Report
Retail outlets which sell from specialized vans are called?
Answer Details
Retail outlets which sell from specialized vans are called mobile shops. They are shops that are designed and built into a van or truck, which can move from place to place, allowing the vendor to sell their goods directly to customers in different locations. These mobile shops are often used by small business owners who may not have a permanent physical store, or who want to expand their customer base beyond their regular locations. The vans are typically stocked with a variety of products, such as groceries, clothing, or electronics, and may operate on a regular schedule or by appointment.
Question 7 Report
which of the following is used for making payments to many people in a single cheque
Answer Details
The option used for making payments to many people in a single cheque is a "bank draft". A bank draft is a payment order issued by a bank to pay a specified amount to the person or organization listed on the draft. It is similar to a cashier's check, but it is drawn on the bank's funds rather than the purchaser's funds. Bank drafts are commonly used for large transactions and purchases, such as buying a car or paying for a home renovation project. They can also be used to make payments to multiple parties, as the bank can split the total amount into separate payments and send them to the designated recipients.
Question 8 Report
the practice of selling goods in foreign markets at a price lower than the cost price is?
Answer Details
The practice of selling goods in foreign markets at a price lower than the cost price is called "dumping." Dumping is an unfair trade practice that is often used to drive competitors out of business. It is considered illegal in many countries and is regulated by trade laws and regulations. The purpose of these laws is to protect domestic businesses from being harmed by the sale of goods at unfairly low prices.
Question 9 Report
The term consumer sovereignty means that?
Answer Details
Consumer sovereignty means that the buyer is the king. It refers to the idea that in a market economy, consumers determine what goods and services are produced by their purchasing decisions. In other words, producers must respond to the wants and needs of consumers in order to succeed in the market. This gives consumers the power to determine what is produced and sold, and producers must compete to provide goods and services that meet consumer demands.
Question 10 Report
which of the following is a function of the retailer to the wholesaler
Question 11 Report
When a government acquires business enterprises formerly owned by individuals, it is termed?
Answer Details
When a government acquires business enterprises formerly owned by individuals, it is termed "nationalization." Nationalization is a process whereby the government takes control of privately owned businesses and makes them public property. This can occur for various reasons, such as to increase state control over certain industries, to protect national interests, or to provide essential services to citizens. When the government takes over a business through nationalization, it assumes ownership and control of its operations, assets, and liabilities.
Question 12 Report
when two insurers are liable under a given common policy, the principle of insurance that applies is?
Answer Details
When two or more insurers are liable under a common insurance policy, the principle that applies is the principle of contribution. This principle ensures that each insurer contributes proportionately to the loss or claim, based on the amount of premium they have received. In other words, each insurer will pay their fair share of the claim, which is determined based on the limit of liability in the policy and the amount of premium they have received. The principle of contribution is important in ensuring that the policyholder is not over-compensated for the loss or claim and that insurers are not over-burdened with the cost of the claim.
Question 14 Report
equity interest in a company is represented by?
Answer Details
Equity interest in a company is represented by ordinary shares. When a person buys ordinary shares in a company, they become part owners of the company and have a claim to a portion of its assets and earnings. As a shareholder, they may receive dividends if the company declares them, and they may also have voting rights at shareholder meetings. The value of their investment in the company can rise or fall depending on the performance of the company and market conditions.
Question 15 Report
Which of the following activities is classified under extractive industry?
Answer Details
The activity classified under extractive industry is the exploration of minerals. Extractive industries involve activities that extract raw materials from the earth, such as mining, drilling, and quarrying. Exploration of minerals involves searching for and identifying areas where minerals are located. This process involves prospecting, geological mapping, and drilling to extract mineral samples for analysis. The extracted minerals are then processed into finished products that can be used for various purposes, such as building materials, energy production, and industrial manufacturing.
Question 17 Report
when shares are sold ex-div it means the?
Question 18 Report
The minimum lending rate of a bank is a component of its
Question 19 Report
a house insured against damage by flood was burnt down and the owner had no claim. which of the following principles prevented him from making a claim
Answer Details
The principle that prevented the owner from making a claim in this scenario is the principle of "proximate cause." This principle requires that the loss or damage must be caused by the peril that the insurance policy covers. In this case, the policy covered damages caused by flood, not fire. Therefore, since the cause of the loss was not due to the insured peril, the owner had no valid claim under the principle of proximate cause.
Question 20 Report
A cheque which the bank refused to pay because the drawer had insufficient funds in his account is?
Answer Details
A cheque which the bank refused to pay because the drawer had insufficient funds in his account is known as a bounced cheque. This happens when the bank is unable to honour the payment due to insufficient funds in the account of the person who issued the cheque (drawer). A bounced cheque is also referred to as a dishonoured cheque or a returned cheque. The bank will mark the cheque as "bounced" and return it to the payee, and the drawer may have to pay additional fees or penalties to the bank.
Question 21 Report
which of the following is a reason for failure of public corporations
Answer Details
The reason for the failure of public corporations is inadequate funding. This means that the public corporation is not given enough financial resources to run its operations effectively. As a result, it may not be able to meet its obligations and may be forced to shut down. Inadequate funding can lead to poor performance, low productivity, and a decline in the quality of services provided. This can cause the public corporation to lose its customers and market share, ultimately leading to its failure. Other reasons such as legal requirement, political stability, and lack of competition can also contribute to the failure of public corporations, but inadequate funding is often the primary cause.
Question 22 Report
which of the following is a disadvantage of foreign trade
Answer Details
Foreign trade has several advantages, but it also has some disadvantages, one of which is that it encourages dumping. Dumping is a situation where a country exports goods at prices that are lower than their domestic prices or production costs. This practice may hurt domestic industries in the importing country, as the imported goods become cheaper and more attractive to consumers than locally produced goods. The result can be a loss of jobs in the domestic market and overall economic decline. Hence, while foreign trade can provide various benefits such as widening the world market, encouraging specialization, and providing varieties of goods, it also has its drawbacks.
Question 23 Report
Dividing the market for a product according to potential buyers who have common characteristics is?
Answer Details
Market segmentation refers to the process of dividing a larger market into smaller groups of consumers who share similar needs, interests, behaviors, or demographics. This allows businesses to create more targeted marketing strategies and tailor their products or services to specific segments of the market. By understanding the unique characteristics and preferences of each segment, businesses can better meet the needs of their customers and ultimately improve their sales and profitability. Therefore, the correct answer to the question is "market segmentation".
Question 24 Report
A professional in insurance who evaluates the level of loss claims is
Answer Details
Question 25 Report
Duty drawback refers to duties paid on?
Answer Details
Duty drawback refers to the refund of duties previously paid on goods that are either re-exported or used to produce goods that are exported. In other words, it is a mechanism that allows exporters to recover the duties paid on imported inputs used in the production of goods that are subsequently exported. This helps to reduce the cost of production and makes exports more competitive in the international market.
Question 26 Report
A cheque made payable to a named person is?
Answer Details
A cheque made payable to a named person is an order cheque. An order cheque is a type of cheque that can only be paid to the person named on the cheque or to someone they have endorsed the cheque over to. This is different from a bearer cheque which can be paid to anyone who presents it to the bank. An order cheque can be crossed or uncrossed, and can also be post-dated, meaning it can only be cashed or deposited after a certain date.
Question 27 Report
An extra commission paid to an agent who guarantees credit sales made by him is?
Answer Details
The correct answer is "del credere". Del credere is an Italian phrase that means "of credit". In business, it is an arrangement whereby a commission is paid to an agent who guarantees the credit sales made by him. In other words, the agent becomes a guarantor of the buyer's ability to pay, and in exchange for this guarantee, the agent receives a commission. This arrangement is typically used when the buyer is not well known or has a poor credit rating. The del credere commission acts as an incentive for the agent to take on the risk of the credit sale.
Question 28 Report
The practice of giving a particular name to a product by a manufacturer is
Answer Details
Branding is the practice of giving a particular name or symbol to a product by a manufacturer. It involves creating a unique identity for a product or service to differentiate it from those of competitors. The purpose of branding is to create a positive image of the product or service in the minds of customers and to make it easily identifiable. A strong brand can lead to increased customer loyalty, trust, and ultimately, increased sales. Branding can be done through various means, such as logos, slogans, packaging, and advertising.
Question 29 Report
a private limited liability company differs from a public limited liability because it
Answer Details
A private limited liability company differs from a public limited liability company in that it does not issue its shares to the public. This means that the company's shares are owned by a small group of individuals or entities, such as family members or venture capitalists. In contrast, a public limited liability company can issue its shares to the public, allowing anyone to become a shareholder in the company. This can make it easier for the company to raise large amounts of capital but also comes with increased regulatory and reporting requirements. Additionally, both types of companies are separate legal entities from their owners, meaning that they have their own legal rights and obligations. The number of directors and being a going concern are not key distinguishing factors between private and public limited liability companies.
Question 30 Report
All activities aimed at creation of a good image for an organisation are referred to as
Answer Details
The term used to describe all activities aimed at creating a good image for an organization is "public relations." Public relations involve managing the relationship between an organization and its stakeholders, including the public, customers, employees, investors, and the media. The goal of public relations is to build and maintain a positive image of the organization, enhance its reputation, and communicate its message effectively to the public. Public relations activities may include media relations, crisis management, event planning, social media management, and community relations.
Question 32 Report
the market for short term security is called?
Answer Details
The market for short term security is called the money market. It is a platform where financial instruments such as Treasury bills, commercial papers, and certificates of deposits are traded. The money market enables lenders to provide short term funds to borrowers who require them for a brief period, typically less than a year. The interest rates in the money market are determined by the demand and supply of money. It is an important aspect of the financial market as it helps to regulate the supply of money in the economy.
Question 33 Report
which of the following principls stipulates that the insured must be in a position to suffer financial loss?
Answer Details
The principle that stipulates that the insured must be in a position to suffer financial loss is "insurable interest." This principle states that in order for insurance to be valid, the insured must have a financial interest in the item or property being insured. This means that the insured must stand to suffer a financial loss if the item or property is damaged or destroyed. The principle of insurable interest helps prevent insurance from being used as a means of gambling or profiting from misfortune. It also helps ensure that insurance is used for its intended purpose of protecting against unexpected financial losses.
Question 34 Report
| opening stock | D6,000 |
| purchases | D23,000 |
| salaries and wages | D12,000 |
| closing stock | D8,000 |
| sales | D30,000 |
Use the information above to answer the following question.
what is the rate of turnover by BYX Enterprise
Answer Details
The rate of turnover refers to the number of times a company's inventory is sold and replaced within a given period. It is calculated by dividing the cost of goods sold by the average inventory value. Using the information provided, we can calculate the cost of goods sold by subtracting the closing stock of D8,000 from the cost of goods available for sale (opening stock + purchases) of D29,000. Cost of goods sold = D29,000 - D8,000 = D21,000 To find the average inventory value, we add the opening and closing stock values and divide by 2. Average inventory value = (D6,000 + D8,000)/2 = D7,000 Now we can calculate the rate of turnover by dividing the cost of goods sold by the average inventory value. Rate of turnover = Cost of goods sold / Average inventory value = D21,000 / D7,000 = 3 times Therefore, the rate of turnover by BYX Enterprise is 3 times.
Question 36 Report
Which of the following is NOT backed by gold but by government securites?
Question 37 Report
which of the following is a disadvantage of retailing
Answer Details
The correct option is "selling on credit" and this is because it can lead to the accumulation of bad debts which may eventually lead to the collapse of the retail business. When a retailer sells goods on credit, it means they are allowing the customer to take the goods without making immediate payment, with the expectation that the customer will pay later. However, if the customer fails to pay or delays payment, the retailer may have to incur costs to recover the debt, which can be a financial burden on the business. This can also cause cash flow problems and make it difficult for the retailer to pay their own bills and suppliers, ultimately affecting the sustainability of the business.
Question 38 Report
Which of the following means of payment makes the bank both the drawer and drawee
Answer Details
The means of payment that makes the bank both the drawer and drawee is a bank draft. A bank draft is a type of check that is guaranteed by the issuing bank, and it is a prepaid instrument. The bank creates a draft, which is similar to a check, and it is made payable to the beneficiary. The issuing bank is responsible for making payment on the draft, so it is both the drawer (issuer) and the drawee (recipient of payment). This makes the payment secure and reliable since the bank guarantees payment.
Question 39 Report
the fee paid for transporting goods by ship is
Answer Details
The fee paid for transporting goods by ship is called "freight". Freight is the cost charged by shipping companies or carriers for transporting goods or cargo from one place to another. The amount of freight charged depends on various factors, such as the weight and volume of the cargo, the distance between the origin and destination, the type of goods being transported, and the mode of transportation. Freight can be paid by the seller or buyer of the goods, depending on the agreed upon terms of the sale or contract.
Question 40 Report
The capital used in the day to day running of a business is?
Answer Details
The capital used in the day to day running of a business is called working capital. Working capital is the money that a company uses to fund its everyday operations such as paying salaries, purchasing inventory, and covering other operational expenses. It is calculated by subtracting current liabilities from current assets. Unlike fixed assets or investments, working capital is a short-term measure of a company's liquidity and is crucial to its day-to-day operations.
Question 41 Report
| opening stock | D6,000 |
| purchases | D23,000 |
| salaries and wages | D12,000 |
| closing stock | D8,000 |
| sales | D30,000 |
Use the information above to answer the following question.
calculate the gross profit by BYX Enterprise
Answer Details
To calculate the gross profit of BYX Enterprise, we need to subtract the cost of goods sold from the total sales revenue. Cost of goods sold = opening stock + purchases - closing stock = D6,000 + D23,000 - D8,000 = D21,000 Gross profit = sales - cost of goods sold = D30,000 - D21,000 = D9,000 Therefore, the gross profit by BYX Enterprise is D9,000.
Question 42 Report
which of the following workers is engaged in construction occupation
Answer Details
A mason is engaged in a construction occupation. A mason is a skilled worker who builds with materials like brick, stone, and concrete. They work on construction projects such as buildings, walls, bridges, and other structures. They are responsible for interpreting blueprints, measuring and cutting materials, and laying them in a specific pattern to construct the desired structure. A shop assistant works in retail, a farmer works in agriculture, and a train driver operates trains.
Question 43 Report
The reduction in the value of a country's currency in relation to others is?
Answer Details
Devaluation is the reduction in the value of a country's currency in relation to others. It means that the exchange rate of the country's currency has decreased compared to other currencies. This could happen due to a variety of reasons such as a decrease in demand for the country's exports, high inflation, or a decrease in the country's interest rates. Devaluation makes the country's exports cheaper and imports more expensive, which can help improve the country's balance of trade. However, it can also lead to higher inflation as the prices of imported goods increase.
Question 44 Report
An association that protects the interest of members in the same line of business is?
Answer Details
An association that protects the interest of members in the same line of business is called a trade association. It is an organization made up of businesses and businesspeople in a particular industry or trade, who come together to protect their interests, share information and knowledge, and advocate for policies that benefit their industry. They often provide services such as market research, networking opportunities, and lobbying activities. Trade associations can help to promote their industry and provide support and assistance to their members.
Question 45 Report
Which of the following business units enjoys government subsidies
Answer Details
Public enterprises are the business units that enjoy government subsidies. Public enterprises are government-owned businesses established to provide essential services to the public. They are created to provide goods and services that are deemed necessary but may not be profitable in the short run. Since public enterprises are owned and run by the government, they enjoy government subsidies and support. This allows them to provide essential goods and services to the public at lower prices than privately owned businesses. Examples of public enterprises include public utilities, public transportation systems, and state-owned banks.
Question 46 Report
the study to discover consumers' preference and needs is called
Answer Details
The study to discover consumers' preference and needs is called market research. Market research is a process of collecting, analyzing and interpreting information about a market, product or service to identify consumer preferences, behavior, and needs. It helps businesses to understand their customers, make informed decisions, and develop effective marketing strategies. Market research can be conducted through various methods, such as surveys, interviews, focus groups, and observation.
Question 47 Report
which of the following is a document of title of goods
Answer Details
The document of title of goods is a document that serves as evidence of the ownership or transfer of ownership of goods. Among the options provided, the document of title of goods is the bill of lading. A bill of lading is a legal document issued by a carrier or shipper that details the goods being transported, the terms of the shipment, and the ownership of the goods. It serves as proof of shipment and receipt of the goods and is often used as collateral for financing.
Question 48 Report
Which of the following aids to trade is used to stimulate demand for goods
Answer Details
Advertising is the aid to trade that is used to stimulate demand for goods. Advertising involves promoting and publicizing products or services to potential customers. Through advertising, businesses can create awareness of their products, highlight their features and benefits, and convince potential customers to buy. Advertising can be done through various channels, such as print, television, radio, billboards, and social media, among others. By creating demand for goods, advertising helps businesses to increase their sales, revenue, and market share. Therefore, advertising is an important aid to trade that businesses use to promote their products and increase their customer base.
Question 49 Report
Use the following information to answer the question
Bamidele co. ltd has authorized capital of 40,000,000, ordinary shares of N4 each. shares issues and fully paid are 25,000,000
The value of bamidele authorized share capital is?
Answer Details
The value of Bamidele's authorized share capital is N160,000,000. This is because authorized share capital is the maximum amount of capital that a company is authorized to raise through the issuance of shares. In this case, the authorized capital is 40,000,000 ordinary shares of N4 each, which gives a total of N160,000,000 (40,000,000 x N4). It is important to note that authorized share capital does not represent the actual amount of capital raised, but rather the maximum amount that can be raised.
Question 50 Report
A tax charged in proportion to the value of imported goods is?
Answer Details
A tax charged in proportion to the value of imported goods is called ad valorem. Ad valorem is a Latin term that means "according to value." The tax amount is calculated as a percentage of the total value of the imported goods. Ad valorem tax rates vary depending on the type of goods being imported and the country of origin. This type of tax is used by governments to generate revenue and protect domestic industries by making imported goods more expensive than local goods.
Question 51 Report
(a) State five reasons for the presence of the customs and excise authority at seaports.
(b) Explain five functions of airport authority
Answer Details
None
Question 52 Report
(a) What is a vending machine?
(b) State six reasons why supermarkets are popular with shoppers.
None
Answer Details
None
Question 53 Report
(a) Write in full the following abbreviations as used in commerce:
(i) COD (ii) CIF (iii) FOB; (iv) E and O.E.
(b) The sale of consumer goods costing N 100,000 attracts a cash discount of 7½% and a quantity discount of 5%. Calculate the:
(i) value of the quantity discount
(ii) value of the cash discount
(iii) net amount of money payable by the buyer.
Question 54 Report
(a) With the aid of a diagram, show the different classes of occupation.
(b) What is occupation?
(c) Explain with one example each, three classes of occupation shown in 1 (b) above.
Question 55 Report
Write explanatory notes on each of the following terms as used in insurance:
(a) Subrogation;
(b) Proximate cause;
(c) Barratry;
Question 56 Report
(a) What is a contract?
(b) List and explain four ways by which a contract can be discharged.
Question 57 Report
(a) State five reasons for governments participation in business
(b) Explain five problems encountered by government businesses.
Question 58 Report
(a) Outline five functions of commercial banks.
(b) List and explain five ways the central bank controls the commercial banks.
Answer Details
None
Question 59 Report
(a) Explain five reasons for which manufacturers advertise their products.
(b) State five reasons for the continued criticism of advertising.
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