Commerce is defined as the study of how
Commerce focuses on the buying, selling, and distribution of goods and services, which aligns with option C.
The type of activity which turns processed raw materials into consumer and industrial goods is described as
Manufacturing involves transforming raw materials into finished consumer and industrial goods, making B the correct choice.
The production process that combines two or more raw materials into one end product is
Blending refers to combining multiple raw materials to create a single product, fitting the description in the question.
A demonstration of social responsibility by a business is the payment of
Paying taxes contributes to societal development, which is a key aspect of social responsibility for a business.
A distinguishing characteristic of a limited liability company is that it
A limited liability company has a separate legal identity, allowing it to sue and be sued, which is a defining feature.
Which of the following takes place when firms producing at different stages in the same industry combine?
Vertical integration occurs when firms at different stages of production in the same industry merge, such as a manufacturer and a distributor.
Which of the following groups is paid first when a firm liquidates?
Debenture holders are creditors and have priority over shareholders during liquidation, as they are paid before equity holders.
Compulsory dissolution of a business can arise from
Compulsory dissolution typically occurs through legal intervention, such as a court order, making B the correct answer.
Which of the following is a characteristic of a cooperative society?
A cooperative society is characterized by democratic control, where members have equal voting rights, typically one member, one vote.
Calculate the working capital of a business with current assets of N25,000 and current liabilities of N10,000.
Working capital = Current assets - Current liabilities = N25,000 - N10,000 = N15,000.
A company earned a total revenue of N108 million with a total cost of N91 million in 1991. If it paid 45% tax on its gross profit for that year, determine its net profit
Gross profit = Revenue - Cost = 108 - 91 = N17 million. Tax at 45% = 0.45 * 17 = N7.65 million. Net profit = Gross profit - Tax = 17 - 7.65 = N9.35 million.
What are the fixtures and fittings in a balance sheet?
Fixtures and fittings are long-term assets used in business operations, classified as fixed assets on a balance sheet.
The government may impose import duties for the following reasons EXCEPT
Import duties are typically imposed to raise revenue, protect local industries, or retaliate against other countries, not to discourage income redistribution, which is unrelated to import duties.
Which of the following is a key factor in choosing the location of a retail business?
For a retail business, proximity to customers is a key factor, as it ensures accessibility and attracts more foot traffic, boosting sales.
The use of coin-operated machines to sell goods is a form of
Coin-operated machines, like vending machines, are a form of retailing as they sell goods directly to consumers.
What is the major function of the wholesaler?
The primary role of a wholesaler is to buy in bulk from producers and sell in smaller quantities to retailers for distribution.
The rate at which a country’s exports exchange for its imports is called
The terms of trade refer to the ratio at which a country’s exports are exchanged for its imports, reflecting the relative value of trade.
The difference between the total payments for imports and the receipts from exports within a given period is referred to as
The balance of trade is the difference between the value of a country’s exports and imports over a specific period.
A pro-forma invoice is NOT required when
A pro-forma invoice is typically used for quotations or uncertain pricing. When dealing regularly with a customer, a formal invoice is used instead.
Which of the following statements is TRUE about sea transport?
Ships and their crew are typically insured separately, as crew insurance (e.g., liability) differs from cargo or vessel insurance.
The postal organization which preceded Nigerian Postal Service is
The Nigerian Postal Service was preceded by the Post and Telegraph, a colonial-era organization handling mail and telegraph services.
Goods discharged from ships on which import duties have not been paid are kept in the
A bonded warehouse is used to store goods on which import duties have not yet been paid, pending clearance.
A sole proprietor insured his goods worth N200,000 for half the value. There was a fire incident in which goods valued at N80,000 were destroyed. The value of compensation expected from the insurer is
The goods were insured for half their value (N200,000 / 2 = N100,000). Under the average clause, for a loss of N80,000, the insurer pays proportionally: (80,000 / 200,000) * 100,000 = N40,000.
One of the effects of the devaluation of the Naira is that the
Devaluation reduces the Naira’s value, making imports more expensive as more Naira is needed to buy foreign goods.
Drawing two parallel lines across a cheque means that it has to be paid into the account of the
Crossing a cheque with two parallel lines means it must be paid into the payee’s bank account, restricting direct cash withdrawal.
The financial institution established to boost Nigeria’s trade with the rest of the world is called
The Nigerian Export-Import Bank (NEXIM) was established to promote Nigeria’s international trade by providing financing and support.
The Comprehensive Import Supervision Scheme was set up by the federal government in order to
The Comprehensive Import Supervision Scheme was designed to ensure the quality, value, and quantity of imports into Nigeria, preventing fraud and substandard goods.
Which of the following has powers to order withdrawal of a particular food item from circulation?
The Food and Drugs Department of the Federal Ministry of Health has the authority to regulate and withdraw unsafe food items from circulation.
Which of the following maxims negates the principle of collective bargaining?
Collective bargaining relies on the strength of employees as a group, so the idea of individual employees having a weak bargaining base (A) negates its principle.
NACCIMA stands for
NACCIMA stands for Nigerian Association of Chambers of Commerce, Industries, Mines and Agriculture, a body representing business interests in Nigeria.
For the establishment of a powerful consumers’ association in Nigeria to exist, there must be
A strong consumers’ association requires public support, both financially and morally, to effectively advocate for consumer rights.
Which of the following is the most important business resource?
Manpower (human resources) is the most important business resource, as people drive operations, innovation, and growth.
The harmonious relationship among the various units in an organization is ensured through
Coordination ensures that all units in an organization work together harmoniously towards common goals.
The principle of span of control stipulates that
Span of control refers to the number of subordinates a manager can effectively supervise, which should be manageable.
Which of the following makes other functions of business its appendages?
Production is the core function of a business, as other functions like marketing and finance depend on the goods or services produced.
The use of computers in modern banking industry is a reflection of
The use of computers reflects technological development, as it involves the adoption of technology to improve banking operations.
When an oil exploring and mining company builds a health centre in one of the communities where it operates, such a company is
Building a health centre is an example of corporate social responsibility, where the company contributes to the community’s welfare.
The West African Clearing House became legally operational on
The West African Clearing House became legally operational on 25th June, 1975, as per historical records.
The Lake Chad Basin Commission was founded to enable member states
The Lake Chad Basin Commission was established to coordinate the sustainable management of the Lake’s resources among member states.
Which of the following is a primary purpose of advertising in commerce?
Advertising aims to promote brand awareness and drive sales by informing and persuading consumers about products or services.
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