JAMB UTME - Commerce - 2007

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An agreement by the insurer to compensate the insured for losses suffered is called "indemnity." Indemnity is a legal contract between the insurance company and the insured, where the insurer agrees to compensate the policyholder for losses or damages that the policyholder may experience due to a specific event, such as a car accident, fire, or theft. The amount of indemnity paid by the insurance company depends on the terms and conditions of the insurance policy and the extent of the losses incurred by the policyholder.

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The credit instrument that also serves as legal tender is paper money. It is a physical currency that represents a certain value and can be exchanged for goods and services. It is issued by the government and accepted by the public for all transactions. Unlike other credit instruments, such as cheques or money orders, paper money is not just a promise to pay but is itself a means of payment.

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The Nigeria Ports Authority provides facilities that enhance the speedy loading and offloading of cargoes. In other words, one of their functions is to ensure that the ports have the necessary infrastructure, equipment and facilities to facilitate the smooth and efficient movement of goods in and out of the country via the ports. This includes providing storage facilities, cargo handling equipment, and maintaining navigational channels to ensure that ships can access the ports easily.

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An announcement of a person's willingness to enter into a contract is referred to as an "offer". An offer is a proposal or expression of a willingness to enter into an agreement or contract with another party. It is a statement made by one party that expresses a willingness to do something or to abstain from doing something, in exchange for some benefit or consideration from the other party. In other words, an offer is a preliminary step in the formation of a legally binding contract.

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The creation of utilities is a process in which goods or services are produced to satisfy human wants. The term 'utility' refers to the satisfaction or usefulness that a person derives from a particular good or service. Thus, the creation of utilities can be understood as the process of producing goods and services to satisfy human wants or needs. It involves identifying what people want or need, and then producing the goods and services that will meet those wants or needs. Therefore, the answer to the question is "production."

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A cooperative society is a business organization owned and operated by a group of individuals for their mutual benefit. A major criticism of a cooperative society is management incompetence. This means that the cooperative society may be poorly managed, which can lead to mismanagement of funds, poor decision making, and ultimately, the failure of the cooperative society. The management of a cooperative society should be competent in order to ensure the success and profitability of the society.

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A major function of an entrepreneur is decision-making. An entrepreneur is an individual who creates and manages a business venture with the aim of making a profit. Decision-making is a critical function of entrepreneurship, as it involves identifying business opportunities, evaluating risks and benefits, and choosing the best course of action to achieve business objectives. Entrepreneurs must make decisions about product development, pricing, marketing, financing, and other aspects of their businesses to ensure their success. Good decision-making skills are essential for the success of any entrepreneur.

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A document which advertises the shares of a company is known as a prospectus. A prospectus is a formal legal document that provides information about a company and the securities it is offering for sale to the public. It is designed to provide potential investors with all the information they need to make an informed investment decision. The prospectus typically includes information about the company's history, management team, financial statements, risk factors, and the terms of the offering. By law, companies must provide a prospectus to potential investors before they can sell their securities to the public.

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GSM, which stands for Global System for Mobile Communications, has a distinctive advantage of mobility. This means that GSM services can be accessed and used by subscribers while they are on the move, regardless of their location, as long as they are within the network coverage area. This mobility advantage is a key factor in the popularity of GSM as a communication technology, as it allows users to stay connected while they are traveling or away from their usual place of work or residence.

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The selling of new shares to existing shareholders is referred to as a "rights issue". This means that the current shareholders are given the right to buy new shares in proportion to the number of shares they already own. This is often done by companies as a way of raising additional capital without going through the process of a public issue, which involves selling shares to the general public.

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Personal selling is most effective in marketing industrial goods because it involves personal interaction and information gathering. Industrial goods are usually complex and expensive, and their purchase decisions require a lot of information and discussion. Personal selling provides a platform for the salesperson to interact with the customer, understand their needs and requirements, and provide information about the product or service. It also allows for two-way communication and a customized approach to each customer. The salesperson can demonstrate the product's features, benefits and its acceptability, which helps build customer confidence in the product. After-sales services and product demonstrations also provide additional support to customers, which is crucial in the marketing of industrial goods.

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The business environment that takes into consideration the age distribution, ethnic mix, and educational level of the consumer is the demographic environment. It is concerned with the study of human populations, including their size, density, distribution, composition, and income, among others. This environment helps businesses to understand their target market and tailor their products and services to meet their needs and preferences. The demographic environment is one of the essential components of the marketing environment, and businesses need to pay attention to it when making marketing decisions.

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A major benefit a debtor can derive from using a credit facility is convenience. This means that the debtor can use the credit facility to make purchases or pay bills without having to use their own funds immediately. This allows them to manage their cash flow more effectively, and to have access to funds when needed. Additionally, using a credit facility can also help to establish a credit history, which can be beneficial for future borrowing.

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The option that requires payment into the payee's account is a "crossed cheque". A crossed cheque is a type of cheque that has two parallel lines drawn on the left-hand top corner of the cheque. It indicates that the cheque cannot be encashed at the counter of the bank, and the funds must be deposited directly into the payee's bank account. The purpose of the crossed cheque is to provide an additional level of security against fraud and ensure that the money goes directly to the intended recipient.

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A Memorandum of Association is applicable to a Joint company. A Memorandum of Association is a legal document that sets out the constitution and objectives of a company. It contains the name of the company, its registered address, the objectives for which the company is established, and the types of activities the company is authorized to carry out. In a Joint company, which is a type of company that has multiple owners who share profits and liabilities, the Memorandum of Association is a crucial document that outlines the terms of the company's formation and the rights and responsibilities of each owner.

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An economic activity that deals with natural resources is a form of extraction. Extraction involves obtaining raw materials or natural resources from the earth or other sources. This can include activities such as mining, drilling for oil, harvesting timber, or fishing. These raw materials can then be used in various industries for manufacturing or construction purposes.

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The Securities and Exchange Commission is the body regulating the sale and purchase of shares in Nigeria. It is responsible for regulating and developing the Nigerian capital market by supervising the activities of capital market operators, ensuring that listed companies comply with the rules and regulations governing the market, and protecting the interests of investors. The SEC is also responsible for registering, authorizing, and regulating securities exchanges, dealers, brokers, and other market intermediaries.

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A share premium is an example of "capital reserve." A share premium is the additional amount that a company receives above the par value of its shares when it issues new shares to the public. This excess amount is treated as a capital reserve, which represents the amount of money that the company can use for specific purposes such as paying off debts, expanding the business, or paying dividends to shareholders. Capital reserves are usually created from profits made by a company and cannot be distributed to shareholders as dividends.

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Citizens are generally against privatization because of the increased prices of goods and services. When private companies take over government-run organizations or services, they aim to make a profit. As a result, they may raise prices on essential goods and services, such as healthcare or water, making them less affordable for the average citizen. Additionally, there is a concern that privatization may lead to a monopoly, where there is only one provider of a good or service, giving them complete control over the market and the ability to raise prices without competition. Finally, citizens may be concerned about the effectiveness of private management compared to government management, which they perceive to be more accountable to the public.

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Law-making is an example of a direct service. Direct services involve the provision of intangible services directly to individuals or organizations, usually without producing any tangible goods. Law-making is a direct service provided by the government to its citizens, where the government enacts laws to regulate the behavior of individuals and organizations within its jurisdiction.

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A written agreement for hiring a ship for transporting goods is known as a "charter party". It is a contract between a shipowner and a charterer, where the shipowner agrees to make the vessel available to the charterer for a specific period of time or for a particular voyage, in exchange for payment. The charter party sets out the terms and conditions of the agreement, including the freight rate, the cargo to be carried, and the responsibilities of both parties. It is a crucial document in the shipping industry and helps to ensure that both parties understand their obligations and rights.

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The major determinant of fire insurance premium is the type and structure of the property to be insured. This refers to the characteristics of the property such as its age, construction materials, location, and fire prevention measures in place. These factors are used to assess the risk of fire damage and determine the amount of premium that the property owner must pay for insurance coverage. The higher the risk of fire damage, the higher the premium. Therefore, it is important to take measures to reduce the risk of fire damage to the property to minimize the premium cost.

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Inputs for any production activity refer to the resources that are used to produce goods or services. These resources can be classified into four categories, which are natural resources, material resources, human resources, and business resources. Natural resources include land, water, air, and minerals, while material resources are the raw materials and components that are used in the production process. Human resources refer to the workers or employees who perform the production activities, while business resources refer to the equipment, machinery, and technology that are used in the production process. Therefore, the option that best describes inputs for any production activity is all of the above, as each of the four categories of resources is important and necessary for any production activity.

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The central bank controls the quantity of money in circulation through open-market operations. Open-market operations refer to the buying and selling of government securities in the open market by the central bank. When the central bank buys government securities, it releases more money into the economy, leading to an increase in the quantity of money in circulation. On the other hand, when the central bank sells government securities, it reduces the money supply, leading to a decrease in the quantity of money in circulation. This tool helps the central bank to regulate the economy by influencing the interest rates, controlling inflation, and stabilizing the currency.

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A major setback of international trade is economic sanctions. Economic sanctions are actions taken by one country or a group of countries to restrict or limit trade with another country for political, economic or social reasons. Sanctions can take many forms such as a ban on imports and exports, restrictions on financial transactions, travel restrictions, and more. Sanctions can significantly harm the economy of the targeted country, as they limit the country's ability to participate in international trade and access goods and services from other countries. This can cause job losses, increased inflation, and a reduction in the standard of living for citizens of the targeted country.

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The making of doors from timber planks is an example of secondary production. Secondary production involves the conversion of raw materials obtained from primary production into finished products. In this case, the raw material is the timber obtained from primary production, and the finished product is the door.

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The agent described in the question who takes title to goods and has the authority to buy and sell on behalf of another is called a "factor". Factors are commonly used in commercial transactions to help manage inventory and ensure the timely payment of debts. They can take ownership of goods from the manufacturer or seller and sell them to retailers or other customers, or they can provide financing to businesses by purchasing their accounts receivable. In this way, factors act as intermediaries between the seller and buyer, helping to facilitate trade and mitigate risk.