The existence of limited resources to satisfy unlimited human wants leads to the concept of:
Scarcity arises from limited resources and unlimited wants, requiring choices.
Which of the following is a tertiary industry?
Tertiary industries provide services, like banking, unlike primary industries.
A retailer buys goods worth ₦200,000 and receives a trade discount of 15%. If a cash discount of 5% is offered for payment within 10 days, calculate the amount paid with both discounts.
Trade discount = 15% of ₦200,000 = ₦30,000. Price = ₦170,000. Cash discount = 5% of ₦170,000 = ₦8,500. Amount paid = ₦161,500.
A business formed by a voluntary association of individuals with common economic, social, and cultural needs is a:
Cooperative societies are formed for mutual economic and social benefits.
The principle of mutual agency in a partnership implies that:
Mutual agency allows partners to act for the firm, binding all partners.
The document that outlines the rules and regulations governing the internal management of a company is the:
Articles of Association detail internal management rules.
The process of holding goods in anticipation of future demand is known as:
Warehousing stores goods for future demand.
A small retail business that focuses on selling a specific type of product is a:
Specialty stores focus on specific product categories.
Which of the following is a benefit of specialization in commerce?
Specialization boosts production and efficiency via focused skills.
Which of the following is a desirable characteristic of money?
Durability ensures money withstands physical wear.
A retailer sells an item for ₦500, earning a profit of 25% on the cost price. Calculate the cost price.
Selling price = 1.25 × cost price. ₦500 = 1.25C, so C = ₦400.
Which of the following is a form of above-the-line promotion?
Above-the-line promotion uses mass media, like TV commercials.
The primary aim of branding is to:
Branding differentiates a product, fostering recognition.
Which of the following is a responsibility of middle-level management?
Middle-level management coordinates departmental activities.
Which of the following is a short-term source of business finance?
Bank overdraft is a short-term, repayable-on-demand financing.
Liabilities represent:
Liabilities are what a business owes to others.
Which of the following is NOT a function of the Nigerian Deposit Insurance Corporation (NDIC)?
Issuing currency is a Central Bank function, not NDIC.
A company has current assets of ₦250,000, including inventory of ₦80,000, and current liabilities of ₦100,000. Calculate the quick ratio.
Quick assets = ₦250,000 - ₦80,000 = ₦170,000. Quick ratio = ₦170,000 / ₦100,000 = 1.7:1.
Which of the following is a tool of fiscal policy?
Fiscal policy uses government expenditure and taxation.
The principle of absolute advantage in international trade suggests a country should:
Absolute advantage suggests specializing in efficient production.
Which of the following is a potential benefit of international trade?
International trade expands access to diverse goods.
A complete ban on the import or export of certain goods to or from a country is an:
An embargo is a complete trade ban.
The principle of 'one member, one vote' is typically followed by:
Cooperative societies use 'one member, one vote' for democracy.
Which practice promotes environmental sustainability?
Conserving energy and water reduces environmental impact.
The right of consumers to access a variety of products at competitive prices is the right to:
The right to choose ensures variety and competitive pricing.
Which of the following is a characteristic of oligopoly?
Oligopoly features a few large firms with interdependent decisions.
Information gathered directly for a specific research purpose is:
Primary data is collected directly for research.
A company imports goods worth $5,000 at ₦500/$1. If the Naira depreciates by 6%, calculate the new cost in Naira.
Original cost = $5,000 × ₦500 = ₦2,500,000. New rate = ₦500 × 1.06 = ₦530. New cost = $5,000 × ₦530 = ₦2,650,000.
A pricing strategy setting a low initial price to attract buyers is:
Penetration pricing uses low prices to gain market share.
Which of the following is a modern function of warehousing?
Modern warehousing supports logistics and order fulfillment.
Which is an advantage of air transport?
Air transport is fast, ideal for perishable goods.
A company issues 2,000 ordinary shares at a premium of ₦5, par value ₦20. Calculate the total amount raised.
Issue price = ₦20 + ₦5 = ₦25. Total = 2,000 × ₦25 = ₦50,000.
A written acknowledgment for paid goods or services is a:
A receipt confirms payment for goods or services.
A product costs ₦300 to produce. With a 40% markup on cost, what is the selling price?
Markup = 0.4 × ₦300 = ₦120. Selling price = ₦300 + ₦120 = ₦420.
Which is an example of a 'push' promotional strategy?
Push strategy offers retailer incentives to stock products.
Costs that vary directly with production are:
Variable costs change with production levels.
A warehouse has an opening inventory of 1,500 units. It receives 4,000 units and issues 3,200 units. What is the closing inventory?
Closing inventory = 1,500 + 4,000 - 3,200 = 2,300 units.
Which is a key aspect of the leading function of management?
Leading involves directing and motivating employees.
Which document invites shareholders to a company’s annual general meeting?
Notice of meeting invites shareholders to the AGM.
A retailer buys an item for ₦1,000 and sells it for ₦1,400. What is the percentage profit on the cost price?
Profit = ₦1,400 - ₦1,000 = ₦400. Percentage profit = (₦400 / ₦1,000) × 100 = 40%.
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