Why are economic decisions necessary in a market economy?
Scarcity of resources versus unlimited wants necessitates economic decisions.
Breaking production into specialized tasks is called
Division of labor splits tasks to boost efficiency.
Utility created by making a product available at a convenient place?
Place utility ensures products are accessible where needed.
Key risk for a sole proprietor?
Sole proprietors face limited capital from public investors.
Document outlining partnership terms?
Partnership Deed details terms and profit-sharing.
Characteristic of a public limited company?
Public limited companies issue a prospectus for public investment.
Primary function of a retailer?
Retailers sell directly to final consumers.
Function of wholesalers?
Wholesalers break bulk for retailers.
Which is NOT a retail outlet?
Extractive industry involves resource extraction, not retail.
Digital marketplaces for trading are called
E-commerce uses digital platforms for transactions.
Document specifying goods required by a buyer?
Purchase order details goods a buyer needs.
Which is a negotiable instrument?
Promissory note is a promise to pay, negotiable.
Primary purpose of insurance?
Insurance transfers risk to mitigate financial losses.
Principle requiring financial interest in insured item?
Insurable interest ensures financial stake in insured item.
Policy covering damage to own vehicle?
Comprehensive insurance covers own vehicle damages.
Function of advertising?
Advertising informs and persuades to drive sales.
What does AIDA stand for in marketing?
AIDA: Awareness, Interest, Desire, Action in consumer response.
Example of below-the-line promotion?
Point-of-sale promotions are targeted, short-term incentives.
Planning, organizing, leading, controlling is called
Management involves these functions to achieve goals.
Level setting overall objectives?
Top-level management sets objectives and policies.
Management function monitoring performance?
Controlling monitors and corrects performance.
NOT a characteristic of an entrepreneur?
Entrepreneurs embrace challenges, not avoid them.
Initial capital invested by owner?
Capital is the owner’s initial investment.
Statement showing assets, liabilities, equity?
Balance sheet shows assets, liabilities, equity.
Total revenue minus total expenses?
Net profit is revenue minus expenses.
Major function of a central bank?
Central bank issues and manages currency.
How do commercial banks generate profit?
Banks profit from interest rate spread.
Persistent rise in general price level?
Hyperinflation is a rapid price level rise.
Policy using expenditure and revenue to influence economy?
Fiscal policy uses spending and taxation.
Exchange rate represents
Exchange rate is one currency’s value in another.
Benefit of international trade?
Trade offers more goods and services.
Trade barrier to protect domestic industries?
Import tariff taxes foreign goods.
Organization promoting global trade?
WTO reduces trade barriers, resolves disputes.
Ethical consumption involves
Ethical consumption supports sustainability.
Breach of business ethics?
Misleading information violates ethical standards.
Fundamental consumer entitlement?
Consumers are entitled to safety information.
Gathering market data is called
Market research analyzes market and customer data.
Group of consumers with similar needs?
Market segment targets similar consumer needs.
Factor influencing consumer behavior?
Cultural norms shape consumer preferences.
Body regulating fintech in Nigeria?
CBN oversees fintech for financial compliance.
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