20 reviewed questions with answers and explanations.
Practice selection: full-paper coverage has not been confirmed.
Extractive industries may also be denominated as
C: primary industries
Extractive activities obtain resources directly from nature, such as minerals or timber. They belong to primary industry, supplying materials that secondary manufacturing can transform.
AI-reviewed · calculation checkedObi originally makes all decisions and takes all profits from his agricultural business. He and Musa agree to pool resources. Abayomi joins on condition that his liability is limited to his investment; they register Obi, Musa and Abayomi Agricultural Ventures. Which form of business does this describe?
C: limited partnership
The business combines general partners with a partner whose liability is limited to his investment. That combination is characteristic of a limited partnership rather than an ordinary general partnership.
AI-reviewed · calculation checkedWhich listed business is an example of a diversified conglomerate in the historical question?
B: United Africa Company Nigeria Plc
UAC combines businesses across different product and service sectors, making it a diversified group or conglomerate. The other examples are identified with electricity, rail transport or banking respectively.
AI-reviewed · calculation checkedSONU balances: plant ₦2,300; motor van ₦2,000; stock ₦1,250; debtors ₦480; bank ₦3,000; cash ₦20; creditors ₦1,000; accruals ₦187.50; capital ₦6,000; net profit ₦2,000; drawings ₦137.50. Find the current ratio.
A: 4:1
Current assets total stock ₦1,250 + debtors ₦480 + bank ₦3,000 + cash ₦20 = ₦4,750. Current liabilities are ₦1,187.50, giving ₦4,750 ÷ ₦1,187.50 = 4:1.
AI-reviewed · calculation checkedThe form of capital which is easily transferred into the form desired is known as
B: liquid capital
Liquid capital is readily available in money or a form easily converted for another use. It differs from capital tied up in machinery or other assets that cannot quickly be redirected.
AI-reviewed · calculation checkedTurnover is ₦15,000 and cost of goods sold is ₦10,000. Find gross profit as a percentage of sales, to one decimal place.
B: 33.3%
Gross profit is ₦15,000 − ₦10,000 = ₦5,000. Divide by sales, not cost: ₦5,000 ÷ ₦15,000 × 100 = 33.3% to one decimal place.
AI-reviewed · calculation checkedEntrepot trade is said to have taken place when goods are
C: imported and then re-exported
Entrepot trade involves importing goods and subsequently exporting them again. Merely holding goods while duties are pending is customs storage, not by itself re-export trade.
AI-reviewed · calculation checkedEmeka ordered goods for his retail shop. The manufacturer sells the goods at retail price of N500 but would give it to Emeka at N400. What kind of discount did he get?
B: Trade discount
The retailer receives a reduction from the listed retail price because he buys for resale. This is a trade discount; the question gives no early-payment, seasonal or quantity condition.
AI-reviewed · calculation checkedWhich listed term is a shipping-price term rather than a postal delivery service?
D: free on board service.
Free on board is a commercial shipping term about delivery responsibilities. It is not a postal delivery service category like express or recorded delivery.
AI-reviewed · calculation checkedThe two main categories under which marine losses fall into are
C: total loss and partial loss
Marine losses are broadly classified as total or partial. Total loss may be actual or constructive, while particular and general average concern classifications within marine-loss treatment.
AI-reviewed · calculation checkedWhat is the principle of indemnity intended to provide, subject to policy terms and limits?
D: damage claims equal to the loss suffered.
Indemnity aims to restore the insured to the financial position before the covered loss, rather than create a profit. Actual payment remains subject to the policy’s cover, limits and excess.
AI-reviewed · calculation checkedThe assets, liabilities and general management of a distressed bank may be taken over by
C: Nigerian Deposit Insurance Corporation
NDIC has bank-resolution responsibilities and can participate in intervention in distressed insured institutions. The other listed bodies are development-finance institutions rather than Nigeria’s deposit insurer.
AI-reviewed · calculation checkedThe type of securities that the stock exchange deals with are
D: stocks, shares, bonds and warrants.
Stocks, shares, bonds and warrants are capital-market securities traded on exchanges. Currency notes, money orders and ordinary payment instruments are not the comparable set of exchange investments.
AI-reviewed · calculation checkedUnder the marketing concept, which principle should guide a firm’s approach to customers?
B: be consumer oriented
The marketing concept begins with understanding and meeting customer needs. Advertising, staff training and outlets can support this purpose, but consumer orientation is the underlying principle.
AI-reviewed · calculation checkedProduct X was introduced into the market at N4.00 with its cost of production at N3.90 while competing products are selling at N4.50. What pricing policy are producers of X adopting?
B: Market penetration
The launch price of ₦4 is below competing products at ₦4.50 and only slightly above cost. This low introductory pricing is consistent with penetration pricing to attract buyers and build market share.
AI-reviewed · calculation checkedAn oral presentation in conversation with prospective buyers for the purpose of making sales is called what?
B: personal selling
Personal selling uses direct conversation with prospective buyers to explain the offer, answer questions and seek a sale. Branding and packaging identify or present a product rather than conduct that conversation.
AI-reviewed · calculation checkedPersonnel activities that promote the general image of an organisation are part of
C: public relations
Public relations manages an organisation’s reputation and relationships with its publics. Activities promoting its general image therefore fit public relations rather than a short-term sales incentive.
AI-reviewed · calculation checkedWhich option describes management as a process?
A: getting things done through people
As a process, management means accomplishing objectives through people and coordinated resources. The term may also name a group of managers, but that is a different use of the word.
AI-reviewed · calculation checkedWhich option lists recognised bases for structuring a business enterprise?
A: by products, function or territories
Products, functions and geographic territories are recognised bases for grouping business activities. Each aligns responsibilities with work or markets rather than merely with individual personalities.
AI-reviewed · calculation checkedA business flow runs from the external environment into the internal environment, then back to the external environment. Which sequence fits the three stages?
D: Material → production → product
Materials enter from the external environment, production transforms them inside the organisation and products leave for external users. This is the input–transformation–output sequence.
AI-reviewed · calculation checked