JAMB Commerce 2002

D: bureau of public enterprises

The Bureau of Public Enterprises implements the government’s privatisation programme and serves the National Council on Privatisation. The earlier technical committee had been replaced before the 2002 examination.

A: Nigeria

Nigeria is a member of the Lake Chad Basin Commission. Benin and Mali are not members, so every offered pair containing either of those countries is incorrect.

A: Standards Organisation of Nigeria

The Standards Organisation of Nigeria prepares and promotes standards and certifies products. The other organisations are trade or consumer associations rather than the national standardisation agency.

A: increasing efficiency and making the enterprises self-sufficient

Commercialisation applies business principles to public enterprises so they operate efficiently and cover their costs. It does not simply mean advertising or selling more products.

D: copyright

Copyright is the established term for the rights protecting an author’s original literary and other creative works. A patent protects inventions rather than the expression in a written work.

C: lump sum benefit

An endowment policy pays its agreed benefit at maturity or on earlier death, according to the policy. This is a lump-sum benefit; a premium is money paid for cover and surrender value concerns early termination.

D: teleprinter

A teleprinter sends and receives typed messages over a telex connection. A fax sends document images, a Dictaphone records speech, and radar detects objects using radio waves.

B: proximate cause

Proximate cause identifies the effective cause of the loss and whether it is an insured peril. Contribution divides liability among insurers; subrogation concerns recovery rights after payment.

D: Slip

A collection slip notifies the addressee that an item is waiting at the post office. A counterfoil is the retained portion of a document, while an express label identifies a service rather than collection readiness.

A: cover note

A cover note provides temporary evidence of insurance while the full policy is being prepared. A proposal form is the application for cover, so it does not itself confirm that insurance has begun.

A: long-term securities are sold

In the traditional money-market and capital-market distinction, a stock exchange trades long-term securities such as shares and bonds. Short-term borrowing instruments belong primarily to the money market.

B: III, V, VI and VIII

Transport, insurance, banking and communication facilitate buying and selling, so they are aids to trade. Retail, wholesale, import and export are forms of trade itself.

C: line and staff structure

A line-and-staff structure combines line managers with specialist advisers who support them. Pure line structure lacks that separate advisory staff relationship.

C: nominal capital

Under the authorised-capital terminology used in this question, nominal capital is the maximum stated share capital the company is permitted to issue. Issued, called-up and paid-up capital describe later stages.

A: staffing

Staffing covers obtaining, placing and retaining the people an organisation needs. Recruitment and selection are narrower steps within that wider management function.

B: jobbers

In traditional stock-exchange terminology, jobbers deal in securities on their own account. Brokers act for clients, while bulls are identified by expectations of rising prices rather than that market-making role.

B: cement factory

Cement production uses large amounts of bulky limestone and other mineral inputs. Locating near the quarry reduces the cost of moving these inputs, making cement a classic raw-material-oriented industry.

B: inscribed securities

In the traditional distinction, inscribed stock records ownership in a register without issuing a negotiable certificate. Bearer securities instead rely on possession of the instrument.

B: errors and omissions excepted

E&OE expands to errors and omissions excepted. It indicates that an accidental error or omission may be corrected; it is not a calculation instruction or a guarantee of accuracy.

D: planning and development of the product

Product planning and development concern the product element itself. Advertising belongs to promotion, distribution channels to place, and the amount charged to price.

B: Possession of goods before full payment

Hire purchase lets a customer possess and use goods while paying instalments, before the whole price has been paid. Ownership normally follows completion of the agreed conditions; low interest is not guaranteed.