A trader bought an article for ₦60,000 and incurred ₦5,000 in transportation costs. If sold for ₦80,000, calculate the percentage profit on the total cost.
Total cost = ₦60,000 + ₦5,000 = ₦65,000. Profit = ₦80,000 - ₦65,000 = ₦15,000. Percentage profit = (₦15,000 / ₦65,000) × 100 = 23.81%.
What is the primary role of a consumer cooperative society?
Consumer cooperatives purchase goods in bulk to bypass middlemen, offering members quality products at reasonable prices.
A company has sales revenue of ₦250,000 and gross profit of ₦100,000. Calculate the cost of goods sold.
Cost of goods sold = Sales revenue - Gross profit = ₦250,000 - ₦100,000 = ₦150,000.
What is a key characteristic of a public warehouse?
Public warehouses provide storage to any individual or business for a fee, catering to diverse needs.
An exporter sells goods worth £2,000 at ₦600/£1. If the exchange rate becomes ₦620/£1 at payment, calculate the Naira increase in sales value.
Original value = £2,000 × ₦600 = ₦1,200,000. New value = £2,000 × ₦620 = ₦1,240,000. Increase = ₦1,240,000 - ₦1,200,000 = ₦40,000.
What is a significant advantage of water transport for bulky goods?
Water transport is cost-effective for bulky goods due to its low cost per unit weight over long distances.
A business has a quick ratio of 0.8:1 and current liabilities of ₦75,000. If inventory is ₦30,000, calculate the liquid assets.
Liquid assets = Quick ratio × Current liabilities = 0.8 × ₦75,000 = ₦60,000.
Calculate the trade discount percentage for goods listed at ₦40,000 sold for ₦36,000.
Discount = ₦40,000 - ₦36,000 = ₦4,000. Discount percentage = (₦4,000 / ₦40,000) × 100 = 10%.
An investment of ₦50,000 yields ₦8,000 simple interest over 4 years. What is the annual interest rate?
R = I / (PT) = ₦8,000 / (₦50,000 × 4) = 0.04 = 4% per annum.
What is a key disadvantage of a sole proprietorship?
Sole proprietorships rely on the owner’s funds, limiting capital for growth.
A cheque is a negotiable instrument that is a:
A cheque orders a bank to pay a specific sum from the drawer’s account to the payee.
An insurance policy has an annual premium of ₦4,800. With monthly payments and a 2% surcharge per month, calculate the total annual cost.
Monthly premium = ₦4,800 / 12 = ₦400. Surcharge = 2% of ₦400 = ₦8. Monthly cost = ₦408. Annual cost = ₦408 × 12 = ₦5,856.
What is a benefit of informative advertising?
Informative advertising provides product details, enabling informed consumer decisions.
A company has total liabilities of ₦200,000 and a debt-to-equity ratio of 0.4:1. Calculate the owner’s equity.
Equity = Total liabilities / Debt-to-equity ratio = ₦200,000 / 0.4 = ₦500,000.
Which management function involves monitoring and corrective action?
Controlling monitors performance and takes corrective action to meet goals.
A retailer buys goods for ₦180 and sells at a 30% markup on cost. What is the selling price?
Markup = 0.3 × ₦180 = ₦54. Selling price = ₦180 + ₦54 = ₦234.
What is a common reason for small business failure?
Poor financial management, like inadequate budgeting, often leads to small business failure.
A business has sales of ₦600,000, cost of goods sold of ₦250,000, and operating profit of ₦150,000. Calculate operating expenses.
Gross profit = ₦600,000 - ₦250,000 = ₦350,000. Operating expenses = Gross profit - Operating profit = ₦350,000 - ₦150,000 = ₦200,000.
What is a primary objective of fiscal policy?
Fiscal policy uses spending and taxation to influence aggregate demand, stabilizing the economy.
An item costs ₦500 with an 8% inflation rate over 2 years. What is its approximate cost after 2 years?
Future price = ₦500 × (1.08)^2 = ₦500 × 1.1664 = ₦583.20.
What is a benefit of specialization in international trade?
Specialization enables countries to produce efficiently, optimizing global resources.
A ₦50 per unit tariff is imposed on 10,000 imported units. Calculate the total tariff revenue.
Total tariff = ₦50 × 10,000 = ₦500,000.
A business has a cost of goods sold of ₦240,000 and a stock turnover rate of 6. Calculate the average stock.
Average stock = Cost of goods sold / Stock turnover = ₦240,000 / 6 = ₦40,000.
What is a key aspect of environmental sustainability in business?
Sustainability involves reducing environmental harm, such as waste and resource depletion.
Which consumer action demonstrates the right to be heard?
Providing feedback, like reporting faults, exercises the right to be heard.
A business sells 150 units at ₦80 per unit with a total cost of ₦9,000. Calculate the profit per unit.
Revenue = 150 × ₦80 = ₦12,000. Profit = ₦12,000 - ₦9,000 = ₦3,000. Profit per unit = ₦3,000 / 150 = ₦15.
What is an advantage of using secondary market research?
Secondary research uses existing data, making it less costly and faster than primary research.
A company aims for a 20% profit margin on selling price. If a product’s cost is ₦160, what is the selling price?
Let selling price = S. Profit = 0.2S. Cost = 0.8S = ₦160. S = ₦160 / 0.8 = ₦200.
Calculate the gross profit margin if sales revenue is ₦400,000 and cost of goods sold is ₦280,000.
Gross profit = ₦400,000 - ₦280,000 = ₦120,000. Gross profit margin = (₦120,000 / ₦400,000) × 100 = 30%.
What is a disadvantage of pipeline transportation?
Pipelines are fixed and designed for specific products, limiting flexibility in routes and goods.
A company issues 2,000 ordinary shares at ₦50 par value, with a market price of ₦75. What is the total market capitalization?
Market capitalization = 2,000 × ₦75 = ₦150,000.
What is a key function of a bill of exchange?
A bill of exchange orders payment at a future date, aiding credit and financing.
A retailer imports goods worth $5,000 at ₦700/$1 with a 10% customs duty. Calculate the total cost in Naira.
Cost = $5,000 × ₦700 = ₦3,500,000. Duty = 10% of ₦3,500,000 = ₦350,000. Total = ₦3,500,000 + ₦350,000 = ₦3,850,000.
What is a characteristic of effective sales promotion?
Sales promotion offers incentives, like discounts, to prompt immediate buying.
A business invests ₦200,000 at 5% compound interest per annum. Calculate the total amount after 3 years.
A = ₦200,000 × (1.05)^3 = ₦200,000 × 1.157625 = ₦231,525.
What is a key element of the leading function of management?
Leading involves motivating and directing employees to achieve goals.
A business has sales of ₦500,000, with cost of goods sold at 60% of sales. Calculate the gross profit.
Cost of goods sold = 0.6 × ₦500,000 = ₦300,000. Gross profit = ₦500,000 - ₦300,000 = ₦200,000.
What is a potential effect of currency devaluation?
Devaluation lowers currency value, making exports cheaper and more competitive.
An e-commerce platform has monthly sales of ₦1,200,000 and a 15% net profit margin. Calculate the net profit.
Net profit = (15% × ₦1,200,000) / 100 = ₦180,000.
What is a feature of an oligopolistic market?
Oligopolies have few large firms with market power, making interdependent decisions.
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