Which of the following contributed least to the evolution of commercial activities in Nigeria?
Traders’ unions support collective bargaining but had minimal impact compared to banks (financing trade), transportation (goods movement), and currencies (exchange medium).
One of the factors which critically determines the choice of occupation is
Aptitude, a natural talent, critically determines occupational suitability and success, as it reflects inherent ability.
Extractive industries may also be denominated as
Extractive industries (e.g., mining, agriculture) are primary industries, extracting raw materials directly from nature.
The primary objective of all businesses is to
Profit-making is the primary objective of businesses, ensuring financial sustainability and growth.
Services which are of absolute monopoly can best be provided by
Public enterprises provide monopoly services (e.g., utilities) to ensure accessibility and public interest via government control.
One advantage the co-operative society has over the company is that the
Co-operative societies often enjoy tax exemptions, unlike companies, which face corporate taxes, giving co-operatives a financial edge.
Mr Obi is a manager of Obi Agricultural Venture, a sole proprietorship. He agrees with Alhaji Musa to pool resources and expand, sharing profits and inviting more farmers. This new venture is a
Pooling resources, sharing profits, and inviting others indicate a general partnership, where partners share liabilities and profits equally.
A key characteristic of a general partnership is that
In a general partnership, partners share profits and losses equally unless specified otherwise, with unlimited liability and active management roles.
A source of capital for private limited companies is
Private limited companies raise capital from selected persons (e.g., family, investors), as they cannot offer shares publicly.
An example of a conglomerate is
United African Company (UAC) is a conglomerate, operating diverse businesses across sectors, unlike specialized entities like banks or utilities.
Preference stock is characterized by
Preference shareholders have priority over common shareholders for asset claims after debts are settled in liquidation, but rank below creditors.
A provision in a company’s charter giving common stock the first option to purchase additional share issues is a
Pre-emptive rights allow existing shareholders to buy new shares first, preserving their ownership proportion.
Given the Balance Sheet as at 31/3/98: Capital ₦6000, Plant Machinery ₦2300, Net profit ₦2000, Motor van ₦2000, Drawings ₦137.50, Stock ₦1250, Creditors ₦1000, Debtors ₦450, Bank ₦875, Accruals ₦187.50, Cash ₦3000. What is the current ratio?
Current Assets = Debtors (450) + Stock (1250) + Bank (875) + Cash (3000) = ₦5575. Current Liabilities = Creditors (1000) + Accruals (187.50) = ₦1187.50. Current ratio = 5575 / 1187.50 ≈ 4.69 ≈ 4.5:1.
Using the same Balance Sheet, what is the working capital?
Working capital = Current Assets - Current Liabilities = 5575 - 1187.50 = ₦4387.50.
The document issued by a warehouse authority acknowledging goods deposit is called
A warehouse warrant confirms goods storage, serving as proof of ownership and often used as collateral.
If a firm’s turnover is ₦15,000 and cost of goods sold is ₦10,000, what is the percentage of gross profit on sales?
Gross profit = 15,000 - 10,000 = ₦5000. Percentage = (5000 / 15,000) × 100 = 33 1/3%.
A machine that makes a sale without a sales attendant is a
A vending machine dispenses goods automatically, enabling sales without human intervention.
What document is required for ad valorem import duties?
A consular invoice provides certified goods valuation, necessary for calculating ad valorem duties based on value.
Goods held at the port pending customs duty payment for further processing are stored in a
A bonded warehouse stores goods without immediate duty payment, allowing processing or sale before duties are paid.
When a price is quoted as F.O.B, it means the price includes
F.O.B (Free on Board) covers seller’s costs, including loading, until goods are on the ship; buyer assumes subsequent costs.
Emeka, a retailer, orders goods for resale. What discount would he likely receive?
Trade discounts are offered to retailers for resale goods, reducing list prices to encourage bulk purchases.
The document regulating terms among partners is
A partnership agreement specifies terms, profit-sharing, and responsibilities among partners.
Oral presentation to prospective buyers for sales is
Personal selling involves direct interaction with buyers to persuade purchases, building relationships.
The two main categories of marine losses are
Marine losses are total (complete loss) or partial (partial damage), based on damage extent.
The principle of indemnity in insurance means the insured collects
Indemnity ensures compensation for actual financial loss, restoring the insured’s pre-loss position.
The key difference between community banks and people’s banks is that
Community banks prioritize local development (service-oriented), while people’s banks focus on profit.
The assets, liabilities, and management of a distressed bank may be taken over by
The Nigerian Deposit Insurance Corporation (NDIC) manages distressed banks to protect depositors and ensure stability.
The stock exchange deals with securities such as
The stock exchange trades stocks, shares, bonds, and warrants, representing ownership or debt.
Companies must register as private limited liability if
Private limited liability companies limit shareholders’ liability to their investment, distinguishing them from other forms.
A requirement for listing on the second-tier securities market is
The second-tier market requires a minimum number of shareholders (e.g., 100) to ensure ownership distribution.
An underlying principle in marketing goods is that firms should
Consumer orientation, meeting customer needs, is a core marketing principle for success.
Product X, introduced at ₦4.00 (cost ₦3.50) while competitors sell at ₦4.50, uses what pricing policy?
Market penetration pricing sets a low price (₦4.00 vs. ₦4.50) to gain market share quickly.
Given 1995 income statement: Turnover ₦286.5m, Cost of goods sold ₦147.5m, Overhead ₦85.5m, Taxes ₦26.9m. What was the profit before taxes?
Profit before taxes = 286.5 - 147.5 - 85.5 = ₦53.5 million.
A business whose owners secure loans based on personal goodwill is a
Sole proprietors use personal goodwill for loans, as they are personally liable.
Which is not a typical funding source for a public limited company?
Public limited companies rely on shares, loans, and profits, not government grants, which are less common.
In a bill of exchange for ₦200,000 dated June 2, 1995, signed by Inso Etidi, payable to Okon Etim after three months, who is the debtor?
Inso Etidi, the signer, is the debtor, obligated to ensure payment to Okon Etim.
The above document represents a
The document is a bill of exchange, ordering payment from Etim Etidi to Okon Etim after a set period.
Kabir receives quotes: Ade (₦100 less 20% trade discount), Benson (₦100 less 30% trade discount, 10% cash discount within 7 days). To maximize discounts, Kabir should buy from
Ade: ₦100 - 20% = ₦80. Benson: ₦100 - 30% = ₦70, then - 10% = ₦63. Benson’s offer is cheaper with both discounts.
The principle of subrogation in insurance allows
Subrogation lets the insurer recover from a third party responsible for the loss after compensating the insured.
Which of the following is a key function of the Nigerian Stock Exchange?
The Nigerian Stock Exchange facilitates trading of securities like stocks and bonds, enabling capital raising and investment.
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