JAMB Commerce 2000

C: trust and cartel

A cartel coordinates selected policies while its member firms retain their separate identity. A trust combines control more closely, so the degree of independence is a key distinction in the traditional classification.

B: ₦575,000

Fixed capital is land ₦200,000, buildings ₦150,000, machinery ₦200,000, implements ₦20,000 and fittings ₦5,000. These long-term assets total ₦575,000.

C: ₦235,000

Circulating capital here is current assets: ₦100,000 materials + ₦50,000 finished goods + ₦20,000 debtors + ₦15,000 bills receivable + ₦45,000 bank + ₦5,000 cash = ₦235,000.

D: ordinary share holders

Ordinary shareholders hold the residual ownership claim. They receive only what remains after creditors and any preferential capital entitlements have been satisfied in liquidation.

D: Uberrimae fidei

Uberrimae fidei means utmost good faith. In the traditional insurance principle, material information affecting the risk must be disclosed so the insurer can assess the proposed cover.

D: Analogue computer

An analogue computer represents quantities through continuously varying physical signals. A digital computer instead processes discrete values, while a hybrid combines analogue and digital techniques.

C: passenger liners and cargo liners

Ocean liners follow scheduled services and can be classified by their main cargo as passenger or cargo liners. Tramp shipping instead operates without the same regular liner schedule.

D: ₦320

The average clause reduces the claim in the proportion insured to actual value. The property is insured for 800/1,000 = 80%, so payment on a ₦400 loss is ₦320.

C: issues currencies

In Nigeria, issuing legal-tender currency is a central-bank function. Commercial banks provide payments, foreign-exchange services and bill discounting, but do not issue the national currency.

A: Poste restante

Poste restante holds mail at a post office for collection by the addressee. It serves travellers or others without a fixed local address, rather than providing a home-delivery address.

C: document specifying quantity, description, prices and total value of purchases

An invoice itemises the goods or services supplied, quantities, unit prices and total amount payable. It requests or records a charge and does not by itself prove payment as a receipt does.

A: marketing mix relationship

Product, price, place and promotion are the four marketing-mix elements. Arranging them around the customer shows that each should work together to meet the target customer’s needs.

C: Sales promotion

Sales promotion uses short-term incentives such as gifts with purchases to encourage buying. The free caps and bags are the incentive, so sales promotion is the specific technique within the wider marketing strategy.

C: Persuasive advertising

Persuasive advertising attempts to convince customers to buy. Informative advertising primarily provides facts; the stated aim of persuasion directly identifies the persuasive category.

A: Allows sellers to perceive buyers’ needs

Direct conversation lets a salesperson discover the buyer’s needs and adapt the presentation. Personal selling does not guarantee immediate sales or remove the need to obey applicable rules.

B: a treaty

The participating states established ECOWAS through the Treaty of Lagos in 1975. A treaty is an agreement between states, unlike a domestic decree or act of parliament.

A: Exchange information and negotiate as a pressure group

Trade associations bring members together to exchange information and represent their common interests. Collective negotiation is the broad representative purpose; research and government contacts support it.

D: shareholding

Nationalisation transfers ownership to the state, whereas indigenisation transfers ownership or participation to local citizens. Their direct distinction is therefore the identity and pattern of shareholding.