JAMB Commerce 1994

C: man buys, sells and distributes goods and services

Commerce concerns buying, selling and distributing goods and services, including activities that support exchange. Production and consumption together describe a wider field of economic activity.

B: manufacturing

Manufacturing transforms processed materials into finished goods for consumers or industry. Extraction obtains natural resources, while construction assembles structures such as roads and buildings.

B: Vertical integration

Vertical integration joins businesses at different stages of the same supply chain, such as a producer and its distributor. Horizontal integration combines businesses at the same stage.

B: Debenture holders

Debenture holders lend money to the company and have creditor claims. These claims rank ahead of distributions to owners, including preference and ordinary shareholders.

B: A declaration by a court of law

Compulsory winding up is imposed through a court order. An agreement by the owners is voluntary, while poor economic conditions alone do not constitute a legal dissolution order.

D: ₦51,680

Circulating capital means current assets here. Add stock ₦8,800, debtors ₦15,500, bank ₦21,000 and cash ₦6,380 to obtain ₦51,680; fixed fittings and vehicles are excluded.

C: Fixed assets

Fixtures and fittings are kept for continuing use in running the business. They are therefore fixed assets, rather than inventory, liquid funds or the net working-capital balance.

C: To discourage the redistribution of income at home

Import duties can raise public revenue, protect domestic producers or respond to another country’s trade restrictions. Discouraging domestic income redistribution is not a standard purpose of such duties.

B: a retailing business

A small retail business can be managed directly by one owner and commonly needs less capital than mining, oil exploration or vehicle assembly. This makes retailing the most suitable listed example.

B: retailing

A vending machine sells goods directly to the final consumer. That is retailing, even though the transaction uses a machine rather than a shop assistant or personal sales visit.

B: Buying in bulk and selling in small quantities

Wholesalers buy large quantities and divide them into smaller lots for retailers. Credit and market information may support this role, but bulk buying and breaking bulk are its central trading function.

D: terms of trade.

Terms of trade compare export prices with import prices. They describe how much imports a country can obtain for its exports, rather than the monetary trade balance.

B: balance of trade

The balance of trade compares export receipts with import expenditure. The balance of payments is broader, also recording international income, transfers and financial transactions.

A: Posts and Telecommunications

Before the 1985 reorganisation, Posts and Telecommunications combined postal and telecommunications functions. Its postal division became NIPOST while the telecommunications operations were reorganised separately.

D: bonded warehouse.

A bonded warehouse holds imported goods under customs control while duties remain unpaid. Storage there postpones duty payment until the goods are released under the applicable customs procedure.

D: imports that can be bought with the Naira have become costlier.

Devaluation lowers the domestic currency’s value relative to foreign currencies. With foreign prices unchanged, more naira are needed for the same imported goods, making imports costlier in naira.

D: Nigerian Export-Import Bank

NEXIM is Nigeria’s export-import bank. Its export financing and risk-bearing services support Nigerian trade, unlike deposit insurance or institutions focused primarily on industrial development.

A: product, promotion, place and price.

The traditional marketing mix consists of product, price, place and promotion. These cover what is offered, what customers pay, how it reaches them and how it is communicated.

C: Fad

A fad rises and fades quickly, so its influence on consumers is short-lived. Fashion generally lasts longer, while an innovation may create a durable change in products or behaviour.

B: Offering free samples.

Free samples are a sales-promotion incentive that lets consumers try a product. Radio and television advertising communicate a message but do not themselves give the customer a trial sample.

A: it can provide instant feedback

Personal selling allows two-way conversation. The seller can hear objections or questions immediately and respond on the spot, giving faster direct feedback than one-way advertising.

C: deferred.

An agreement to sell postpones the transfer of ownership until a future time or condition. A completed sale transfers ownership, although physical delivery may occur at a different time.

D: an offer but no acceptance.

The offer is to sell for ₦30. Replying with ₦29 proposes a different price, so it is a counter-offer rather than acceptance of the original terms. The exchange has not formed an agreed bargain.

A: government.

Nationalisation transfers an industry or enterprise into government ownership. It differs from indigenisation, which concerns ownership by nationals rather than necessarily by the state.

D: Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture

NACCIMA brings together chambers representing commerce, industry, mining and agriculture. Its name identifies this business-chamber association, rather than a cultural agency or government investment body.

A: co-ordination

Coordination links the work of different departments so their actions support shared objectives. It helps prevent conflicting schedules, duplicated effort and gaps between organisational units.

D: the number of employees reporting to one superior should be kept to a workable maximum.

Span of control is the number of subordinates directly supervised by one manager. Keeping that number manageable supports effective supervision; reporting to one boss is unity of command.

D: technological development

Computers apply technical inventions to process information and deliver banking services. Their use therefore directly illustrates technological development, even though it can also affect competition and the economy.

C: Fulfilling part of its social responsibility

Providing a health centre benefits the community in which the business operates. It is an example of corporate social responsibility because it supports community welfare beyond the company’s core production activity.

D: Coordinate their efforts in managing the use of the lake’s resources

The commission provides a framework for member countries to cooperate in managing shared lake and basin resources. Its purpose is broader than increasing navigation or building a particular dam.