Loading....
|
Press & Hold to Drag Around |
|||
|
Click Here to Close |
|||
Question 1 Report
The principle which requires the insurance company to disclose to the proposer all material facts of the risk to be covered is
Answer Details
The principle which requires the insurance company to disclose to the proposer all material facts of the risk to be covered is **uberrimae fidei**. Uberrimae fidei is a Latin phrase that means "utmost good faith." In insurance, it refers to the duty of both the insurer and the proposer to share all relevant information about the risk being insured. When someone applies for insurance, they are considered the proposer, and it is their responsibility to provide complete and accurate information about the risk they want to insure. Likewise, the insurance company must also proactively disclose any important facts or conditions that may affect the decision to insure or the terms of the insurance policy. This principle of utmost good faith is important because insurance contracts are based on trust and mutual understanding. By sharing all material facts, both the insurance company and the proposer ensure that the policy accurately reflects the risk being covered, and that both parties can make informed decisions. If either party fails to disclose all material facts, it can lead to issues like claim rejections or policy cancellations. For example, if the proposer hides a pre-existing medical condition when applying for health insurance, it can lead to claims being denied when the insurer discovers the undisclosed information. In summary, the principle of uberrimae fidei in insurance requires both the insurance company and the proposer to be honest, transparent, and disclose all relevant information about the risk to be insured. This helps ensure fairness and trust in insurance contracts.
Question 2 Report
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 3 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 4 Report
A bill of exchange already accepted can be discounted by the holder in
Answer Details
A bill of exchange is a written order by one person (known as the drawer) to another person (known as the drawee) to pay a certain amount of money to a third party (known as the payee) on a specific date. When the drawee accepts this order, it means they promise to pay the specified amount on the given date. Now, let's talk about discounting a bill of exchange. Discounting means that the holder of the bill can get the money from the bill before its maturity date by selling it to a bank. The bank will pay the holder the present value of the bill, which is the amount of money the bill is worth today, considering the time value of money. In the context of the given options, a bill of exchange that has already been accepted can be discounted by the holder in any bank. This means that the holder can sell the bill to any bank and receive the money before the maturity date. **Any bank** is a valid option because banks are willing to buy bills of exchange that have been accepted as they are considered to be secure payment instruments. The holder of the bill can approach a bank of their choice and initiate the process of discounting. The bank will assess the creditworthiness of the parties involved, calculate the present value of the bill, and provide the holder with the discounted amount. This way, the holder can receive the money earlier, instead of waiting until the bill's maturity date. To summarize, a bill of exchange that has already been accepted can be discounted by the holder in any bank. The holder can sell the bill to the bank and receive the money before the bill's maturity date. Any bank is a valid option, as banks are willing to buy accepted bills of exchange as they are considered secure payment instruments.
Question 5 Report
The function of commerce in relation to production is
Answer Details
The function of commerce in relation to production is to provide a link between the different stages of the conversion of goods. Commerce plays a vital role in supplying raw materials from nature, facilitating the production process, and delivering the finished goods to the consumers.
Firstly, commerce helps in the extraction of raw materials from nature. This involves activities such as mining, farming, fishing, and forestry. Commerce enables these materials to be collected and transported to the production sites where they can be transformed into finished goods.
Secondly, commerce plays a crucial role in the conversion process. It involves various activities such as manufacturing, processing, packaging, and assembling. These activities are carried out by producers to convert raw materials into finished products that can be sold to consumers. Commerce helps in coordinating these different stages and ensuring a smooth flow of goods throughout the production process.
Lastly, commerce is responsible for satisfying the demands of consumers. It involves marketing, distribution, and selling of the finished goods to the consumers. Commerce helps in identifying the needs and wants of consumers and ensuring that the right products reach the right people at the right time. This involves activities such as advertising, selling, and customer service.
In conclusion, the function of commerce in relation to production is to provide a link between the different stages of the conversion of goods. It facilitates the extraction of raw materials, coordinates the production process, and ensures the satisfaction of consumer demands. Commerce plays a vital role in connecting producers with consumers and ensuring the smooth flow of goods in the economy. It is an essential component of the overall process of production and distribution in any economy.
Question 6 Report
A business organization that exploits the capabilities of a member to remedy the weakness of another is a
Answer Details
A business organization that exploits the capabilities of a member to remedy the weakness of another is a cooperative. In a cooperative, individuals or businesses come together voluntarily to pool their resources, skills, and knowledge for mutual benefit. The members of a cooperative work together to address their weaknesses by leveraging the strengths of others. This collaboration helps to improve the overall efficiency and productivity of the cooperative. Cooperatives operate on the principle of "working together" rather than competing against each other. By sharing resources, expertise, and responsibilities, the members can achieve common goals that may not have been possible individually. The cooperative structure allows members to contribute their unique skills and abilities to fill any gaps or weaknesses within the organization. This collective effort promotes collaboration, problem-solving, and shared decision-making. Overall, a cooperative is a business organization that fosters cooperation among its members to maximize their strengths and overcome weaknesses collectively.
Question 7 Report
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 8 Report
The type of activity which turns processed raw materials into consumer and industrial goods is described as
Answer Details
The type of activity which turns processed raw materials into consumer and industrial goods is known as manufacturing.
Manufacturing involves the transformation of raw materials or components into finished products through various processes. These processes can include assembly, fabrication, mixing, shaping, or refining, depending on the nature of the raw materials and the desired end product.
In manufacturing, value is added to the raw materials by converting them into something that has more utility and satisfies consumer needs or industrial requirements.
For example, a manufacturer may take steel and shape it into car parts, or they may take fabric and sew it into clothing. This process is essential in meeting consumer demands and providing a wide range of goods for everyday life.
Without manufacturing, we would not have the vast array of products available to us, such as cars, electronics, furniture, clothes, and more.
In summary, manufacturing is the activity that transforms raw materials into finished goods through various processes, adding value and creating products that meet consumer and industrial needs.
Question 9 Report
The rate where a country's exports exchange for its imports is called
Answer Details
The correct answer is terms of trade.
Terms of trade refers to the rate at which a country's exports exchange for its imports.
It is an economic indicator that measures the relative value of a country's exports in comparison to its imports. To understand it better, let's imagine a scenario where a country is exporting goods such as automobiles, electronics, and textile products to other countries, while also importing goods like oil, machinery, and clothing. The terms of trade would reflect the exchange ratio between the value of the country's exports and the value of its imports. When the terms of trade are favorable, it means that a country is able to trade its exports for a larger amount of imports.
This indicates that the country is receiving a higher value of imports for the same quantity or value of exports. It is generally beneficial for a country to have favorable terms of trade because it allows them to obtain a wider variety of goods and services from other countries. On the other hand, when the terms of trade are unfavorable, it means that a country has to trade a larger quantity or value of its exports in order to obtain the same amount of imports.
This indicates that the country is receiving a lower value of imports for its exports. Unfavorable terms of trade can be detrimental to a country's economy, as it can lead to a loss of wealth and limited access to necessary goods and resources.
Therefore, terms of trade play a significant role in determining a country's economic well-being and its ability to engage in international trade.
It provides insights into the relative value of a country's exports and imports, and its impact on the overall balance of trade and balance of payments.
Question 10 Report
An individual that links the producer with the retailer is
Answer Details
A wholesaler is a merchant who purchases goods in large quantity from the manufacturer and sell in small quantities to the retailer. The wholesaler acts as an intermediary between the retailer and the manufacturer.
Question 11 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 12 Report
The effects of devaluation includes all except
Answer Details
Devaluation is the reduction in the value of a country's currency compared to other currencies. It can have several effects on the economy. One effect of devaluation is the **expansion of local industries**. When a country's currency is devalued, it becomes cheaper for foreigners to buy goods and services from that country. This can make the country's exports more competitive in international markets. The increase in demand for these exports can lead to the growth and expansion of local industries, creating new jobs and boosting the economy. Another effect of devaluation is the **increase in import**. When a currency is devalued, imported goods and services become more expensive for the country's residents. This is because the country needs to exchange more of its devalued currency for the foreign currency to pay for imports. As a result, people may opt to buy more domestic products instead of expensive imports. A third effect of devaluation is that **exports become cheaper**. When a country's currency is devalued, its exports become relatively cheaper compared to currencies of other countries. This means that foreign buyers can purchase a larger quantity of goods and services for the same amount of their own currency. This can help boost a country's exports and improve its trade balance. However, the **increase in standard of living** is not a direct effect of devaluation. Devaluation can bring benefits to certain sectors of the economy, such as exporters and domestic industries, but it does not guarantee an increase in the overall standard of living for all residents. The impact of devaluation on the standard of living depends on various factors, such as the country's dependence on imports, inflation, and the effectiveness of government policies. In summary, the effects of devaluation include the expansion of local industries, an increase in imports becoming more expensive, and exports becoming cheaper. However, it does not directly lead to an increase in the overall standard of living.
Question 13 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 |
Find the gross profit
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 14 Report
An example of extractive occupation is
Answer Details
An example of extractive occupation is **mining**. Mining is the process of extracting valuable minerals or other geological materials from the earth. This occupation involves digging, drilling, and blasting to access and remove minerals such as coal, iron, gold, or diamonds from the ground. In extractive occupations like mining, the main focus is on acquiring and extracting natural resources. These resources are then processed and used in various industries for manufacturing products and fueling economic activities. Unlike other occupations mentioned, such as driving, teaching, or banking, mining is directly involved in the extraction of natural resources. While driving, teaching, and banking are important occupations in their own right, they do not involve the extraction of resources from the earth. To summarize, an extractive occupation refers to jobs that involve extracting natural resources from the earth, and mining is a prime example of such an occupation.
Question 15 Report
The difference between the central bank and commercial bank is that the former
Answer Details
The central bank and commercial bank are two different types of banks that serve different purposes. The central bank, as the name suggests, is the bank that is at the center or the heart of a country's banking system. It is responsible for controlling and regulating the country's money supply, interest rates, and monetary policy. One of the important functions of the central bank is to act as the lender of last resort. This means that in times of financial crisis or when commercial banks are unable to meet their obligations, the central bank steps in to provide liquidity and ensure the stability of the banking system. On the other hand, commercial banks are the banks that most people are familiar with, as they are the ones that provide various banking services to the public. Commercial banks serve as intermediaries between individuals and businesses that have surplus funds to deposit, and those who need to borrow money. They accept deposits from individuals and businesses and in return, provide a range of services such as checking accounts, savings accounts, and loans. In summary, the key difference between the central bank and commercial bank is that the central bank acts as the lender of last resort and is responsible for regulating the country's banking system, while commercial banks provide banking services to the public and facilitate the borrowing and lending of money.
Question 16 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 17 Report
A government policy that encourages transfer of ownership from foreigners to indigenes of the country is known as
Answer Details
Indigenisation is the government policy that encourages the transfer of ownership from foreigners to indigenes of the country.
This means that the government is promoting the idea of giving ownership and control of businesses, resources, and industries to the local people or native citizens of the country.
The main objective of indigenisation is to empower the local population and promote economic development.
By transferring ownership to indigenes, the government aims to reduce the influence of foreign entities and create opportunities for local businesses and individuals to thrive.
Indigenisation policies can take various forms, such as requiring a certain percentage of ownership to be held by locals, providing incentives for indigenous businesses, or implementing regulations that prioritize local participation in key sectors of the economy.
Overall, indigenisation is a strategy used by governments to ensure that resources and economic power are shared among the local population, fostering economic growth, and reducing dependency on foreign entities.
Question 18 Report
A major objective of all business resources is
Answer Details
A major objective of all business resources is profit making. Profit making is the ultimate goal for businesses as it ensures their sustainability and growth. When businesses are able to make profits, they can reinvest that money back into their operations, expand and innovate, and create more job opportunities.
Profit making also allows businesses to attract investors and access capital for further expansion. It enables them to pay their employees fair wages and provide necessary resources to operate effectively.
While other options such as human relation, public relation, and profit sharing are important aspects of running a successful business, they are not the primary objective. Human relations and public relations are important for building positive relationships with customers, employees, and the community, but without making profits, the business will not be able to sustain itself in the long run. Profit sharing, on the other hand, is a strategy that some businesses use to incentivize their employees, but it is not the primary objective of all business resources.
In summary, while there are many important factors in running a successful business, the major objective of all business resources is profit making.
Question 19 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 20 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 21 Report
A factor necessary for siting of a warehouse is nearness to
Answer Details
A factor that is necessary for siting a warehouse is the **nearness to consumers**. When deciding where to locate a warehouse, it is important to consider the proximity or closeness to the consumers who will be buying the products stored in the warehouse. This is because being close to consumers has several advantages: 1. **Faster delivery**: When the warehouse is located near the consumers, it reduces the distance that goods need to travel to reach them. This means that products can be delivered more quickly, which is important for satisfying customer demands and providing a good customer experience. 2. **Reduced transportation costs**: Having a warehouse close to consumers also helps to reduce transportation costs. When the warehouse is located far away, it requires more time, fuel, and resources to transport goods from the warehouse to the consumers. By minimizing the distance, transportation costs can be minimized too. 3. **Flexibility and responsiveness**: Being close to consumers allows the warehouse to be more flexible and responsive to their needs. It becomes easier to adapt to changes in demand and customer preferences when the warehouse is situated nearby. This can help businesses stay competitive in the market. 4. **Customer satisfaction**: Ultimately, having a warehouse near consumers contributes to customer satisfaction. Customers appreciate receiving their products quickly and efficiently. By providing fast and convenient service, businesses can attract and retain more customers. In summary, the nearness to consumers is an important factor to consider when siting a warehouse. It enables faster delivery, reduces transportation costs, allows for greater flexibility, and leads to improved customer satisfaction.
Question 22 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 23 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 24 Report
Which of the following legislation aims primarily at the protection of consumers?
Answer Details
The legislation that aims primarily at the protection of consumers is the Trade Description Act. The Trade Description Act is a law that is specifically designed to safeguard the interests of consumers. Its main purpose is to prevent businesses from misleading or deceiving consumers about the goods or services they are offering. Under this act, businesses are required to provide truthful and accurate information about their products or services. They are not allowed to make false claims or misrepresent the quality, quantity, or any other important aspect of their offerings. This act also ensures that consumers have the right to receive goods or services that match the descriptions provided by the businesses. If a consumer feels that they have been misled or deceived by a business, they can take legal action against the business and seek compensation for any damages or losses incurred. In summary, the Trade Description Act is a legislation that primarily focuses on protecting consumers by prohibiting businesses from providing false or misleading information about their products or services. Its aim is to ensure that consumers are well-informed and can make informed decisions when purchasing goods or services.
Question 25 Report
A partnership is dissolved due to
Answer Details
A partnership can be dissolved due to various reasons. Let's explore each option mentioned:
1. Resignation of an employee: The resignation of an employee does not directly cause the dissolution of a partnership. While the resignation of a partner may have implications for the partnership, it alone does not lead to dissolution.
2. Liquidity of the firm: The liquidity, or financial stability, of a firm can be a factor that influences the decision to dissolve a partnership. If the firm is facing severe financial difficulties and unable to meet its obligations, the partners may choose to dissolve the partnership to avoid further losses.
3. Death of the employee: The death of an employee, while unfortunate, does not automatically result in the dissolution of a partnership. However, the death of a partner can lead to the dissolution of the partnership, especially if there are no provisions in the partnership agreement to continue the business after the partner's death.
4. Insanity of a partner: The insanity, or mental incapacity, of a partner can contribute to the dissolution of a partnership. If a partner becomes mentally unfit to participate in the partnership's affairs or fulfill their duties, it can create significant challenges and may eventually lead to the dissolution of the partnership.
In conclusion, the three factors that can cause the dissolution of a partnership are: - The liquidity of the firm, if it is unable to meet financial obligations. - The death of a partner, particularly if no provisions for continuation are in place. - The insanity of a partner, making it difficult for them to fulfill their duties.
Question 26 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 27 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 |
Calculate the net profit
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 28 Report
Money is generally acceptable for transaction due to
Answer Details
Money is any item or verifiable record that is generally accepted as payment for goods and services and repayment of debts, such as taxes, in a particular country.
Legal tender is any official medium of payment recognized by law that can be used to extinguish a public or private debt, or meet a financial obligation
Question 29 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 30 Report
The process of dividing tasks into jobs and departments and delegating authority is known as
Answer Details
The process of dividing tasks into jobs and departments and delegating authority is known as organizing.
Organizing involves breaking down the overall goals and objectives of an organization into smaller, more manageable tasks. This allows for a clear understanding of what needs to be done and how it will be divided among different individuals or departments.
Dividing tasks into jobs means identifying the specific activities or responsibilities that need to be carried out to achieve the organization's goals. For example, in a manufacturing company, tasks may be divided into jobs such as production, quality control, and logistics. Each job has its own set of duties and responsibilities.
Dividing tasks into departments is about grouping jobs together based on their similarities or functions. This helps in creating a more structured and organized work environment. For example, sales, marketing, and customer service might form different departments within a company.
Delegating authority means assigning decision-making power and responsibility to individuals or departments. It involves giving people the necessary authority and resources to accomplish their tasks effectively. This allows for a more efficient and effective decision-making process throughout the organization.
Overall, the process of organizing involves dividing tasks into jobs and departments and delegating the appropriate authority to ensure that the work is performed in a coordinated and efficient manner.
Question 31 Report
Which of the following is not a veritable source of funds to a public limited liability company?
Answer Details
The answer is: Government financial grants.
A public limited liability company can obtain funds from various sources such as advances and loans from banks, internally generated funds, and funds from the sale of shares. However, government financial grants are not considered a veritable source of funds for a public limited liability company.
Advances and loans from banks can be obtained by a company in order to meet its financial needs. These funds are typically provided by the bank based on the company's creditworthiness and ability to repay the loan. This can be a reliable source of funds for a company.
Internally generated funds refer to the funds that a company generates from its own operations. This can include profits from the sale of goods or services, dividends from investments, or any other income generated by the company's operations. These funds are considered to be a reliable and sustainable source of financing.
Funds from the sale of shares refer to the capital that a company raises by issuing shares to investors. When a company goes public, it offers shares to the public through an initial public offering (IPO). Investors can then buy these shares, providing the company with capital. This is a common way for companies to raise funds.
On the other hand, government financial grants are not typically a veritable source of funds for a public limited liability company. While governments may provide financial assistance or grants to certain industries or sectors, this is usually not the primary source of funding for a company. Grants are often provided for specific projects or initiatives and may come with certain conditions or limitations.
In summary, while advances and loans from banks, internally generated funds, and funds from the sale of shares are all potential sources of funds for a public limited liability company, government financial grants are not considered a veritable source of funds.
Question 32 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 33 Report
Answer Details
An example of a cartel is **OPEC**. A cartel is a group of independent entities or organizations that come together to regulate and control the production, pricing, and distribution of a particular product or service. The primary goal of a cartel is to collaborate and reduce competition among its members in order to maintain high prices and increase profits. OPEC stands for the Organization of the Petroleum Exporting Countries. It is an intergovernmental organization consisting of 14 oil-producing countries, primarily located in the Middle East, Africa, and South America. OPEC was formed in 1960 and its members collectively control a significant portion of the world's oil reserves and production. OPEC's main objective is to coordinate and control the production and pricing of oil to ensure stability in global oil markets and maximize their revenues. The member countries agree on production quotas to limit the amount of oil they produce, with the aim of balancing supply and demand and maintaining stable oil prices. By collaborating and acting as a collective force, OPEC members are able to exert influence and have a significant impact on global oil prices. This allows them to maintain higher prices and avoid the downward pressure of excessive competition. However, this control over the oil market has both positive and negative consequences for both the member countries and the global economy. In summary, OPEC is an example of a cartel as it is a group of oil-producing countries that collaborate to control the production and pricing of oil, with the aim of maintaining high prices and increasing profits.
Question 34 Report
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 35 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 36 Report
I. Its unlimited nature
II. The number of partners
III. The withdrawal of a major of partner
IV. The bearing of risk
Which of these is both merit and demerit in partnership?
Answer Details
Partnership are formed by an association of two to twenty persons. The number of partners involved serves as both merit and demerit to partnership business.
Question 37 Report
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 38 Report
Which of the following is a verbal means of communication
Answer Details
A verbal means of communication refers to a method of conveying information using spoken words. Out of the given options, the telephone is a verbal means of communication. The telephone allows people to talk to each other by transmitting their voices over a distance. It works by converting sound into electrical signals that can be transmitted through telephone lines or wirelessly. When you speak into a telephone, your voice is converted into an electrical signal and sent to the other person's telephone. Their telephone then converts the electrical signals back into sound, allowing them to hear your voice. This verbal communication method is widely used for various purposes, such as personal conversations, business discussions, and customer service. It provides real-time interaction and enables people to express their thoughts and ideas directly to others. In summary, the telephone is a verbal means of communication because it allows people to communicate using spoken words transmitted through electrical signals.
Question 39 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 40 Report
A major function of trade association is to
Answer Details
A major function of trade associations is to foster cooperation among their members. Trade associations are organizations that bring together businesses operating in a particular industry or trade. They aim to promote the common interests and goals of their members and support them in various ways. One of the primary purposes of trade associations is to create an environment where businesses can work together and collaborate. By fostering cooperation, trade associations facilitate the sharing of knowledge, expertise, and resources among their members. This collaboration can help businesses in the industry to collectively address challenges, explore new opportunities, and develop common strategies for growth and success. Trade associations also serve as a platform for networking and establishing links among their members. They organize events, conferences, and meetings where business owners and professionals from the same industry can connect, interact, and build relationships. These connections can lead to new partnerships, collaborations, and business opportunities that can benefit individual members and the industry as a whole. It is important to note that trade associations do not assist members in buying cars or help individuals set up small businesses directly. Their main focus is on creating an environment of cooperation, collaboration, and support within the industry. While they may offer various services, such as industry research, advocacy, or training programs, these services are generally aimed at benefiting the industry as a whole rather than assisting individual members in specific personal endeavors. In summary, the primary function of trade associations is to foster cooperation among their members and establish links within the industry. They provide a platform for businesses in the same industry to collaborate, share resources, and work together towards common goals.
Would you like to proceed with this action?