What is the key role of intermediaries in commerce?
Intermediaries, such as wholesalers and retailers, play a crucial role in commerce by facilitating the efficient distribution of goods and services from producers to end consumers, thereby bridging the gap between production and consumption and ensuring smooth flow in the supply chain.
Which of the following describes the liability of partners in a general partnership?
In a general partnership, all partners have unlimited liability, meaning they are personally responsible for the full amount of the business's debts, and this liability is joint and several, allowing creditors to pursue any or all partners for the entire debt.
The document that details a company’s internal management rules is called?
The Articles of Association is a legal document that outlines the rules and regulations for the internal management of a company, including procedures for meetings, directors' powers, and shareholders' rights, serving as the company's constitution.
Which of the following is a source of internal finance for a business?
Retained profits, also known as retained earnings, represent the portion of net income not distributed as dividends but reinvested in the business, making it an internal source of finance that does not involve external parties or interest payments.
The process of analyzing consumer behavior to improve sales is known as?
Market research involves systematically gathering, recording, and analyzing data about consumers' preferences, behaviors, and needs to inform marketing strategies, product development, and sales techniques, ultimately aiming to increase sales and customer satisfaction.
Which of the following is a non-banking financial institution?
Insurance companies are non-banking financial institutions that provide risk management services by pooling risks and offering protection against uncertainties like death, accidents, or property damage, without accepting deposits or providing banking services.
A document that serves as a legal tender for payment is called?
A cheque is a written order directing a bank to pay a specified sum from the drawer's account to the payee, functioning as a negotiable instrument and legal means of payment that is widely accepted as tender when honored.
Which market structure is dominated by a few large firms?
Oligopoly is a market structure where a small number of large firms dominate the industry, leading to interdependent decision-making, high barriers to entry, and potential for collusion or price leadership among competitors.
The term “FAS” in international trade stands for?
Free Alongside Ship (FAS) is an Incoterm where the seller delivers the goods alongside the buyer's vessel at the named port of shipment, after which the risk transfers to the buyer, including loading costs borne by the buyer.
Which of the following is a risk assumed by a wholesaler?
Wholesalers purchase goods in bulk and hold inventory, exposing them to price fluctuation risk where changes in market prices can lead to losses if the value of stock decreases before resale.
A business form where ownership is shared equally among members is called?
A cooperative society is a voluntary association where members own and democratically control the business, sharing profits and benefits equally based on their participation rather than capital contribution.
Which of the following is a limitation of personal selling?
Personal selling involves direct interaction with customers, which is resource-intensive, resulting in a high cost per contact compared to mass advertising methods, limiting its scalability for large audiences.
The body responsible for drug regulation in Nigeria is?
The National Agency for Food and Drug Administration and Control (NAFDAC) is the regulatory body in Nigeria responsible for ensuring the safety, quality, and efficacy of drugs, food, and other regulated products through registration, inspection, and enforcement.
Which of the following is a feature of a standing order?
A standing order is an automated banking instruction where a fixed amount is transferred from the account holder's account to another account at regular intervals, such as monthly, without needing manual initiation each time.
The process of assembling goods for shipment is called?
Consolidation in logistics involves combining multiple small shipments from different shippers into a single larger shipment to optimize transportation costs and efficiency, often used in less-than-truckload shipping.
Which of the following is a type of insurance covering employee theft?
Fidelity guarantee insurance, also known as fidelity bond, protects the employer against financial losses caused by dishonest acts of employees, such as theft or fraud, ensuring reimbursement for proven losses.
The rulebook that guides a public corporation’s operations is called?
Public corporations in Nigeria are established and governed by an Act of Parliament, which serves as the primary legal framework outlining their objectives, powers, structure, and operational guidelines.
Which of the following is a characteristic of a joint venture?
A joint venture is a business arrangement where two or more parties collaborate on a specific project or venture for a limited period, pooling resources while maintaining their separate identities, often to share risks and expertise.
Goods that last for a short period after purchase are known as?
Non-durable goods are consumable items that have a short lifespan and are used up quickly after purchase, such as food, beverages, and toiletries, contrasting with durable goods that last longer.
A document that lists goods for customs clearance is called?
The bill of entry is a customs document submitted by importers detailing the goods being imported, their value, quantity, and origin, used for assessing duties and facilitating clearance through customs.
The primary function of a consumers’ association is to?
Consumers' associations, such as consumer protection agencies, primarily work to safeguard the rights and interests of buyers by advocating for fair trade practices, resolving disputes, and educating on product safety and quality.
Which of the following is a feature of a vending machine retailer?
Vending machine retailers are automated sales devices that dispense products upon payment, allowing continuous operation around the clock without the need for staff, providing convenience to customers at any time.
A document that adjusts an invoice for errors is called?
A credit note is issued by a seller to a buyer to correct an overcharge or error on an invoice, reducing the amount owed, and serves as a formal adjustment in accounting records.
Which of the following is a function of a development bank?
Development banks specialize in providing long-term financing for large-scale projects, infrastructure, and economic development initiatives, often with favorable terms to promote growth in key sectors.
The term “stock control” refers to?
Stock control, or inventory management, involves monitoring and regulating the levels of goods in stock to ensure availability for sales, minimize holding costs, and prevent overstocking or stockouts.
Which of the following is a type of operational risk?
Operational risk encompasses losses resulting from inadequate or failed internal processes, people, systems, or external events, such as equipment failure disrupting business operations.
A market where buyers outnumber sellers significantly is called?
In a seller's market, demand exceeds supply, with more buyers competing for fewer goods from sellers, allowing sellers to dictate prices and terms due to the imbalance.
Which of the following is a function of a bill of exchange?
A bill of exchange is a negotiable instrument used in trade to defer payment, where the drawer orders the drawee to pay a specified sum to the payee at a future date, facilitating credit transactions.
The term “demurrage” refers to?
Demurrage is a charge imposed by shipping lines or ports for the delay in returning empty containers or unloading cargo beyond the allowed free time, compensating for the immobilization of equipment.
Which of the following is a feature of an e-business?
E-business, or electronic business, leverages digital platforms and the internet to conduct transactions, manage operations, and reach global customers without reliance on physical locations.
A document that tracks goods in transit is called?
A consignment note, also known as a consignment bill, is a transport document that accompanies goods during shipment, detailing the sender, receiver, contents, and terms to track and ensure delivery.
Which of the following is an advantage of a franchise?
Franchising provides franchisees with a proven business model, including established branding, operational systems, and marketing support, reducing the risks associated with starting a new business from scratch.
The term used to describe unsellable inventory due to overstocking is?
Dead stock refers to inventory that has become unsellable or obsolete due to overstocking, changes in demand, or expiration, tying up capital and requiring write-offs or disposal.
Which of the following is a role of the Nigerian Investment Promotion Commission?
The Nigerian Investment Promotion Commission (NIPC) is tasked with promoting and facilitating sustainable investment inflows into Nigeria by providing advisory services, incentives, and a one-stop investment center for foreign investors.
A business that deals in intangible products like education is part of the?
The tertiary sector, or service sector, encompasses businesses providing intangible goods and services such as education, healthcare, and finance, focusing on the delivery of expertise and support rather than physical production.
Which of the following is a form of indirect promotion?
Catalogues are a form of indirect promotion as they allow potential customers to browse products remotely without direct interaction, serving as a non-personal advertising tool to generate interest and leads.
The term “break-even point” refers to?
The break-even point is the production or sales level at which total revenue exactly covers total costs, resulting in neither profit nor loss, serving as a key metric for assessing business viability.
Which of the following is a feature of a limited liability partnership?
A limited liability partnership (LLP) combines the flexibility of a partnership with limited liability protection, where partners' personal assets are shielded from business debts, except in cases of personal negligence.
A document that summarizes account transactions over a period is called?
A statement of account is a periodic summary sent by a seller or bank to a customer, detailing all transactions, balances, and outstanding amounts over a specific period for reconciliation purposes.
Which of the following is a function of the production department?
The production department is responsible for transforming raw materials and inputs into finished goods or services through manufacturing processes, ensuring efficiency, quality, and timely output to meet demand.
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