NECO GCE Commerce obj and Theory Questions And Answers For 2018
Turn over is the total net sale during a period of time. It is calculated as the total gross sales of a business less return inward ie
Sales – return inwards.
(i) Provision of credit facilities
(ii) Goodwill and regulation of the seller.
(iii) The variety of goods made available by the seller.
(iv) The price of goods.
(v) Granting of discounts
(vi) The type of goods.
(vii) Location of goods.
(viii) Advertising strategy.
Life assurance is a branch of insurance which is taken as a protection against loss caused by the death of a person.
i. The risk insured against may not occur.
ii. It hinges on probabilities.
iii. It is a provision of cover against eventualities which may never occur.
iv. Examples are fire, marine, burglary.
i. The risk is certain to occur.
ii. It hinges on possibilities.
iii. This is a provision of cover against some eventualities which are certain to occurred at some time in the future.
iv. Example is life assurance.
-Provision for old age.
-Source of loan repayment.
-Serves as collateral security.
-Provides for permanent disability.
Chain stores are groups of shops in the same branch of retail trade under the same management. Chain stores are large retail organization which specialise in selling one type of commodity or the same range of products. They are normally owned, controlled and managed by one organization and purchasing is highly specialized.
Department stores is a large retail outlet under one roof, which is divided into various section or department with each dealing in a particular type of item.
Hypermarket is the large super market. It is generally defined as one with more than 2500 square meters of selling space. This is the newest and possibly the toughest innovative competitor of the super market. It is also referred to as super store.
Kiosks is a small store open at the front where petty items are sold. The trades sell items such as bievuite and sweets which they display inside the kiosk or container erected beside the road or market place.
Small stores : Small stores are located in front of residential houses of the retailers. They sell in much more smaller quantity and handle mostly small unit of convenience goods. They are mainly sole proprietors. It requires small capital to set up small stores.
(i) TRAIN OPERATES ON SCHEDULE : Rail transport is run on schedule.
(ii) IT IS VERY CHEAP: This is the cheapest means of transportation.
(iii) SUITABLE FOR LONG DISTANCE : The rail system is good for long distance journey eg Lagos to Kano.
(iv) NO TRAFFIC HOLD UP : Rail transport is not usually affected by traffic hold up which is common in cities.
(v) SUITABLE FOR HEAVY AND BULKY GOODS: Train is suitable for carrying heavy and bulky goods over long distances.
Common carrier is a person or firm who undertakes to transport goods from one place to another for anyone willing to pay a reasonable charge while contract carrier is a public carrier which undertakes to transport goods from one place to another under contract eg tanker fleets that transports oil to oil depot
(i) Members will still maintain their independence.
(ii) It is voluntary and members on withdraw.
(iii) No certificate is issued.
(iv) Producers are given quotes.
(v) It is horizontal in structure.
(i) Members will lose their independence.
(ii) Trust is a complete merger.
(iii) Certificates are issued.
(iv) There is no quota system.
(v) It has s vertical structure.
(i) Efficiency: To increase efficiency of management where the acquired company is poorly managed.
(ii) To reduce cost: To reduce the overhead cost by eliminating duplication of facilitates.
(iii) Diversification: To diversify the activities of the firms into other areas.
(iv) For larger market share: To obtain a larger share of the total market.
(v) Financial stability: To ensure greater financial stability through internal growth.