Which of the following are key characteristics of commercial undertakings?
Commercial undertakings are businesses aimed at generating profits and can be owned privately (e.g., corporations) or publicly (e.g., state-owned enterprises). This distinguishes them from non-profit or purely service-oriented entities.
The development of commercial activities in Nigeria was facilitated largely by
A robust transport system enables efficient movement of goods and people, significantly boosting commercial activities by connecting markets and reducing logistics costs.
In which of the following sets of occupations can an industrial worker be found?
Industrial workers are typically engaged in manufacturing (e.g., factory production), extraction (e.g., mining), and construction (e.g., building infrastructure), which are core industrial sectors.
Construction activities include the building of houses and roads as well as
Bricklaying is a fundamental construction activity directly involved in building structures like houses and roads, unlike the other options which belong to different industries.
If a partnership deed is silent on how profits are to be shared, partners share profits
Under partnership law, if no profit-sharing agreement is specified in the partnership deed, profits are shared equally among partners, regardless of capital contributions or roles.
Which of the following information is contained in the Articles of Association of a limited liability company?
The Articles of Association detail the internal governance rules of a company, including the rights and obligations of directors, while other details like objectives and share capital are typically in the Memorandum of Association.
The merger of two companies producing the same type of products is an example of
Horizontal integration occurs when two companies at the same level in the production process, producing similar products, merge to increase market share or efficiency.
One of the implications of the incorporation of a company is that
Incorporation creates a separate legal entity, meaning the company’s property is distinct from its members’ personal assets, protecting members from personal liability.
The main advantage of a sole trader is the freedom to
A sole trader enjoys the ability to make quick decisions without needing approval from partners or shareholders, enhancing operational flexibility.
In the case of voluntary liquidation of a business, the receiver is appointed by the
In voluntary liquidation, shareholders, as the owners of the company, appoint the receiver to oversee the liquidation process and distribute assets.
When a company uses more of loans than equity to finance its business, the company is said to be
A company is highly geared when it relies heavily on debt (loans) rather than equity, indicating high financial leverage and increased risk.
The nominal value of a share as specified in the Memorandum of Association and the share certificate is the
The nominal value, also known as the par value, is the stated value of a share as specified in the Memorandum of Association and share certificate.
A public limited company can raise long-term loans through
Public limited companies raise long-term funds through the capital market by issuing shares or bonds, which are suitable for long-term financing needs.
A bank overdraft is a short-term debt used when the agent buys the
A bank overdraft is a short-term financing facility often used by agents to cover immediate expenses, such as purchasing goods or services on behalf of customers, which are later reimbursed by the customers.
The financial index which compares current assets directly with current liabilities is known as current
The current ratio measures a company’s liquidity by comparing current assets to current liabilities, indicating the ability to meet short-term obligations.
Rights issue means the
A rights issue allows existing shareholders to purchase additional shares, often at a discounted price, providing them with favorable terms to maintain their ownership proportion.
Profit that is expressed as a percentage of the cost of goods sold is referred to as
Mark-up is the profit added to the cost of goods sold, expressed as a percentage, used to determine the selling price.
Given: Opening stock N50,000, Purchases N120,000, Closing stock N70,000, Sales N300,000. What is the cost of goods sold?
Cost of goods sold = Opening stock + Purchases - Closing stock = 50,000 + 120,000 - 70,000 = N100,000.
In terms of channel of distribution, which of the following sets of middlemen is made up of middlemen?
Wholesalers, retailers, and agents are intermediaries in the distribution channel, facilitating the transfer of goods from producers to consumers.
Goods imported into a country for the purpose of re-exporting attracts a rebate known as
Customs drawback is a refund of duties paid on imported goods that are subsequently re-exported, encouraging trade.
Most foreign trade transactions are paid for through the use of
Irrevocable and confirmed letters of credit provide payment security in foreign trade, ensuring the seller is paid upon meeting agreed terms.
RRFR as a scheme introduced by the Central Bank of Nigeria means
RRFR stands for Refinancing and Rediscounting Facility, a Central Bank of Nigeria scheme to provide liquidity to financial institutions by refinancing or rediscounting eligible assets.
Which of the following gives the correct order in which the stated documents are used?
The correct sequence in a sales transaction is: order (placing the order), delivery note (confirming goods delivery), invoice (billing), debit note (for adjustments), and statement (summarizing transactions).
Freight note is a document
A freight note, issued by a shipping company, details the charges for transporting goods, aiding in cost transparency.
An invoice of N600 is marked 5% 1 month, 21/2% 3 months and 11/2% 5 months. If a customer pays in the second month how much will he remit to the seller?
A 2.5% discount for paying in the second month on N600 is 600 * 0.025 = 15. Thus, the customer remits 600 - 15 = N585.00.
Spot market goods are those which are available for
Spot market goods are available for immediate delivery, with transactions settled instantly upon agreement.
The main advantage of road transport is that it is
Road transport offers convenience and flexibility, enabling door-to-door delivery and adaptable routes tailored to specific needs.
The practice by which an insurance company accepts a very large risk and later shares it with other insurance companies is called
Re-insurance involves an insurer transferring part of a large risk to other insurers to reduce potential losses and enhance risk management.
The insurance policy which provides full cover against all risks at sea is known as
Marine Voyage Policy Insurance offers comprehensive coverage for all risks encountered during a sea voyage, ensuring full protection.
Berne Union is also known as
The Berne Union, officially the International Union of Credit and Investment Insurers, supports export credit and investment insurance globally.
Which of the following sets of items was used for exchange in Nigeria before money was introduced?
Before the introduction of money, Nigeria used cowries, manilla, brass rods, and copper wires as mediums of exchange in barter trade.
A major liability of a commercial bank arises from
Customers’ deposits represent a major liability for commercial banks, as they are obligated to return these funds on demand or as per agreed terms.
A bank statement is a document
A bank statement provides a detailed record of all transactions, including receipts, payments, and the resulting account balance.
Which of the following is NOT a function of the stock exchange market?
The stock exchange facilitates capital raising and provides a secondary market for securities but does not directly assist firms in quickly winding up during financial difficulties.
The marketing approach by which a firm carries out a detailed analysis of itself, the consumers and its competitors is known as
Market analysis involves a comprehensive study of the firm, its consumers, and competitors to understand market dynamics and inform strategic decisions.
The breaking down of a market into separate and identifiable elements each with its own special product requirements is known as market
Market segmentation divides a market into distinct groups with specific needs, enabling targeted marketing strategies.
Taking a new product to a particular part of a country to test the reaction of consumers to the product is referred to as
Sampling involves introducing a product to a specific region to test consumer reactions before a full-scale launch.
A manufacturer can make his product distinguishable from those of other competitors by
Branding and packaging create a unique product identity, differentiating it from competitors in the market.
Which of the following are forms of sales promotion?
Sales promotion includes advertising, personal selling, and publicity, as these activities directly stimulate consumer purchases.
A disadvantage of personal selling is that it
Personal selling incurs high operating costs due to expenses like salaries, training, and travel for sales personnel.
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