Government policies relating to the establishment and operations of businesses are targeted at
Government policies aim to enhance the overall economy by promoting growth, employment, and sustainable development, rather than focusing solely on individual business profits or expansion.
The share capital value that forms part of the balance sheet total is the
Paid-up share capital represents the amount shareholders have actually paid for issued shares, included in the balance sheet as part of equity.
Bank overdraft as a short-term source of funds is
A bank overdraft is a short-term borrowing classified as a current liability, typically repayable within a year.
The measure of independence available to individual business units that come together is the main difference between
In a trust, businesses retain some operational independence under a central authority, while a cartel allows members greater autonomy, coordinating on prices or production.
The major factors that facilitate merchandising are
Merchandising, the sale of goods, is supported by banking (financing transactions), insurance (covering risks), and transportation (delivering goods).
Amina Enterprises Balance Sheet as at 30/3/99: Liabilities (N) - Share capital 400,000, Reserve fund 200,000, Creditors 110,000, Bills payable 50,000, Undistributed Profits 45,000, Wages due 5,000; Assets (N) - Land 200,000, Buildings 150,000, Machinery 200,000, Implements 20,000, Office fittings 5,000, Raw materials 100,000, Finished goods 50,000, Debtors 20,000, Bills receivable 15,000, Cash at bank 45,000, Cash at hand 5,000. What is the total fixed capital?
Fixed capital includes long-term assets: Land (200,000) + Buildings (150,000) + Machinery (200,000) + Implements (20,000) + Office fittings (5,000) = N575,000.
Amina Enterprises Balance Sheet as at 30/3/99: Liabilities (N) - Share capital 400,000, Reserve fund 200,000, Creditors 110,000, Bills payable 50,000, Undistributed Profits 45,000, Wages due 5,000; Assets (N) - Land 200,000, Buildings 150,000, Machinery 200,000, Implements 20,000, Office fittings 5,000, Raw materials 100,000, Finished goods 50,000, Debtors 20,000, Bills receivable 15,000, Cash at bank 45,000, Cash at hand 5,000. What is the circulating capital?
Circulating capital (current assets) = Raw materials (100,000) + Finished goods (50,000) + Debtors (20,000) + Bills receivable (15,000) + Cash at bank (45,000) + Cash at hand (5,000) = N235,000.
The term PLC implies that the shares are available
A Public Limited Company (PLC) has shares that can be traded publicly on the stock exchange, accessible to investors.
The application of division of labour should generally bring about
Division of labour enhances specialization, reducing production costs and improving cost efficiency.
On liquidation of a public limited liability company, the residual owners are the
Ordinary shareholders, as residual owners, receive any remaining assets after creditors, debenture holders, and preference shareholders are paid during liquidation.
Which of these is both a merit and demerit in a partnership?
Unlimited liability encourages commitment (merit) but exposes partners to personal liability for debts (demerit).
A printer that burns the print images onto a photosensitive drum is called
A laser printer uses a photosensitive drum and toner to create images, burning them onto paper for high-quality prints.
The insurance principle that requires full disclosure of information by the insured is known as
Uberrimae fidei (utmost good faith) mandates that the insured fully disclose all relevant information to the insurer for a valid contract.
A bank form used to transfer money from a personal account to a creditor’s account is called
A credit transfer form facilitates the transfer of funds from a personal account to a creditor’s account, often for bill payments.
A console is a device used in
A console enables communication between the operator and a computer program, typically for entering commands or monitoring operations.
The function of a merchant wholesaler is to
A merchant wholesaler purchases goods in bulk, stores them, and sells them to retailers, facilitating distribution.
The computer using linear integrated circuit technology coupled with quantification of data in terms of length and distance is known as
Analogue computers use linear integrated circuits and measure data in continuous forms, such as length or distance, unlike digital systems.
Ocean liners are subdivided into
Ocean liners are categorized as passenger liners (for passenger transport) and cargo liners (for goods transport).
The current trends in retailing competition in Nigeria are
Retailing in Nigeria leverages self-service, after-sales service, and branding to enhance customer experience and competitiveness.
The main factors militating against the rapid growth of trade in Nigeria are
Poor transportation infrastructure and investment insecurity significantly hinder trade growth in Nigeria.
Mr. Olatunde took up a fire insurance policy on a property valued at N1000, with the amount insured at N800. The property caught fire, causing a loss of N400. If the insurance was taken with the clause ‘with average,’ what is the amount to be paid by the insurance company?
With the average clause, the insurer pays: (Amount insured / Property value) × Loss = (800/1000) × 400 = N320.
The Central Bank differs from commercial banks because it
The Central Bank’s unique function is issuing currency, a role not performed by commercial banks.
Tourists with no fixed address in a town may receive their letters from the post office through a
Poste restante allows individuals without a fixed address to collect mail directly from a post office.
An invoice can be described as a
An invoice details the quantity, description, prices, and total value of goods or services in a transaction.
The elements of the marketing mix are
The marketing mix consists of the 4Ps: product (goods/services), price (cost to customer), place (distribution), and promotion (marketing communications).
The primary role of public relations is to
Public relations aims to build and maintain a positive image for a company, enhancing its reputation among stakeholders.
The major condition for obtaining a loan in thrift, credit, and loans cooperative societies is
Thrift and credit cooperatives typically require collateral to secure loans, ensuring repayment.
The type of advertising that seeks to persuade consumers to buy a particular product is
Persuasive advertising focuses on convincing consumers to purchase a specific product by highlighting its benefits.
The stock exchange helps provide capital for industrial projects because it
The stock exchange facilitates capital raising by allowing companies to sell securities (shares, bonds) to investors, converting them into cash.
A form of money that has gone out of use is
Commodity money, such as cowrie shells or gold, is largely obsolete in modern economies, replaced by fiat currencies.
A shortcoming of the second-tier foreign exchange market in Nigeria is that it
The second-tier foreign exchange market can lead to unrealistic naira exchange rates, causing economic distortions.
The instrument establishing the Economic Community of West African States in 1975 is
ECOWAS was established by a treaty signed in 1975 to promote regional economic integration and cooperation.
The core functions of management are
Management functions include planning (setting goals), organizing (allocating resources), directing (leading), and controlling (monitoring performance).
The three components of staffing are
Staffing involves recruitment (attracting candidates), selection (choosing suitable candidates), and placement (assigning roles).
One of the functions of the Niger Basin Commission is to
The Niger Basin Commission ensures member states have freedom of navigation along the Niger River, promoting regional trade.
The legal aspect of business is designed to
Business laws protect both businesses (e.g., through contract enforcement) and consumers (e.g., against unfair practices) to ensure fair trade.
In a functional organizational structure, authority is based on
A functional structure organizes a business into specialized departments (e.g., marketing, finance), with authority based on departmental expertise.
An aspect of law that grants an exclusive right for a limited number of years is a
A patent grants exclusive rights to an inventor for a limited period, typically 20 years, to protect their invention.
The basic elements of a valid contract are
A valid contract requires an offer, acceptance, consideration (value exchanged), legal capacity of parties, and a lawful purpose.
A business’s social responsibility refers to its obligation to
Social responsibility involves a business contributing to community welfare, such as through environmental protection or charitable activities.
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