Question 1: What is an unconditional order by a creditor to a debtor requiring payment on a specified date called? A) promissory note B) letter of credit C) money order D) bill of exchange
Answer: D) bill of exchange
Explanation: A bill of exchange is a written order or a negotiable instrument that one party (the creditor) issues to another party (the debtor) demanding payment on a specified date. It is an unconditional order, which means that the debtor must pay the amount specified on the due date, regardless of any disputes or issues that may arise. A promissory note is a written promise to pay a specified amount of money at a certain time, while a letter of credit is a financial document that ensures payment to a seller for goods or services, usually in international trade. A money order is a payment order for a pre-specified amount of money, similar to a check.
Question 2: What is the social responsibility of a company to effectively disseminate information about products? A) shareholders B) management C) consumers D) employees
Answer: C) consumers
Explanation: The effective dissemination of information about products is a social responsibility of a company to its consumers. This includes providing accurate and complete information about the product, its ingredients or components, potential risks or side effects, and any other relevant information that may help the consumer make an informed decision. Shareholders have a financial interest in the company’s success, but are not directly affected by the quality or safety of the product. Management is responsible for the overall strategy and operations of the company, but may not be directly involved in product information dissemination. Employees are responsible for carrying out the company’s activities, but may not be involved in product information dissemination unless they are specifically trained for it.
Question 3: What is the trade that takes place when imported goods are re-exported called? A) entrepot trade B) import trade C) export trade D) visible trade
Answer: A) entrepot trade
Explanation: Entrepot trade refers to the trade that takes place when imported goods are re-exported. This type of trade involves the storage, processing, and transshipment of goods, which are then exported to other countries. The term “entrepot” comes from the French word for “warehouse” or “storehouse.” Import trade refers to the purchase of goods from a foreign country for use or consumption in the importing country, while export trade refers to the sale of goods from one country to another. Visible trade refers to the trade of tangible goods, as opposed to invisible trade, which refers to the trade of intangible services.
Question 4: How does commerce aid the development of any economy? A) by providing for proper accountability B) by improving the living standard C) by enhancing the even distribution of wealth D) by encouraging the reduction of inflation
Answer: B) by improving the living standard
Explanation: Commerce aids the development of any economy by improving the living standard of its people. This is achieved through the creation of jobs, the provision of goods and services, and the promotion of competition and innovation. By creating jobs, commerce helps to reduce unemployment and poverty, and by providing goods and services, it helps to meet the basic needs of the people. Competition and innovation help to drive economic growth, which in turn can lead to further improvements in living standards. While proper accountability, even distribution of wealth, and reduction of inflation are important goals of commerce, they are not the primary means by which commerce improves the living standard.
Question 5: What is the definition of a core investor in the current phase of privatization in Nigeria?
Options: A) Someone who can afford to buy most of the shares of the enterprises. B) Someone who will be at the core of the enterprises. C) Someone who can mobilize foreign currency equivalent to the value of the enterprises. D) Someone who has the technical know-how of the enterprises.
Answer: A core investor in the current phase of privatization in Nigeria is someone who can afford to buy most of the shares of the enterprises (Option A).
Explanation: A core investor is a strategic partner with the financial and technical capacity to drive the growth and development of the privatized enterprise. Core investors are usually required to purchase a significant percentage of the shares of the enterprise in order to demonstrate their commitment and interest in the business.
Option B is incorrect because being at the core of the enterprise is not a requirement for being a core investor. Option C is incorrect because although a core investor may need to mobilize foreign currency, this is not the primary criterion for being a core investor. Option D is incorrect because having technical know-how is not the only criterion for being a core investor.
Question 6: Which agency in Nigeria ensures that products conform to government quality specifications?
Options: A) Standards Organization of Nigeria B) Nigerian Consumers’ Association C) Manufacturers’ Association of Nigeria D) Nigerian Chamber of commerce
Answer: The agency in Nigeria which ensures that products conform to government quality specifications is the Standards Organization of Nigeria (Option A).
Explanation: The Standards Organization of Nigeria (SON) is a statutory body that regulates the quality of products in Nigeria. It is responsible for setting and enforcing standards for all products and services in the country. The agency ensures that products comply with government quality specifications through various means, including testing, inspection, and certification.
Option B, C, and D are incorrect because they are not responsible for ensuring that products conform to government quality specifications. The Nigerian Consumers’ Association is a non-governmental organization that protects the rights of Nigerian consumers. The Manufacturers’ Association of Nigeria is a trade association that represents the interests of Nigerian manufacturers. The Nigerian Chamber of Commerce is a non-profit organization that promotes trade and commerce in Nigeria.
Question 7: What are examples of a business organization’s social responsibility?
Options: A) Advertising strategy B) Economic responsibility C) Marketing strategy D) Social responsibility
Answer: Awarding scholarships and sponsoring sports by a business organization are examples of social responsibility (Option D).
Explanation: Social responsibility refers to the ethical obligations that a business organization has to society. It involves taking actions that promote the well-being of the community in which the organization operates. Awarding scholarships and sponsoring sports are examples of social responsibility because they contribute to the development of human capital and support community development.
Option A, B, and C are incorrect because they do not describe examples of social responsibility. Advertising strategy and marketing strategy are business strategies that are aimed at promoting the products or services of a business organization. Economic responsibility refers to a business organization’s obligation to be financially responsible and sustainable.
Question 8: What is the aim of commercialization of public enterprises?
A) Increasing efficiency and making the enterprises self-sufficient B) Advertising and promoting the goods and services of the enterprises C) Increased assistance and patronage of the enterprises by the public D) Selling the goods and services of the enterprises
Answer: A) Increasing efficiency and making the enterprises self-sufficient. The process of commercialization involves transforming public enterprises into private entities, making them more self-sufficient, and increasing their efficiency.
Question 9: What is an author’s exclusive right to his published and unpublished works known as?
A) Authors right B) Constitution right C) Patent right D) Copyright
Answer: D) Copyright. Copyright is a legal term used to describe an author’s exclusive right to his published and unpublished works. This includes the right to reproduce, distribute, and display the work, as well as the right to create derivative works based on the original.
Question 10: What does I stand for in the given diagram?
A) Aids to trade B) Publicity C) Home trade D) Advertising
Answer: D) Advertising. In the context of the given diagram, I stands for advertising, which is one of the components of promotion in the marketing mix.