A pro forma invoice is NOT required when
- A. quoting for the supply of goods
- B. goods are sent on approval
- C. dealing regularly with a customer
- D. final prices are uncertain
The difference between the total payments for imports and the receipts from exports within a given period is referred to as
- A. balance of payments
- B. balance of trade
- C. comparative cost advantage
- D. comparative advantage
The rate at which a country’s exports exchange for its imports is called
- A. balance of payments
- B. balance of trade
- C. terms of payment
- D. terms of trade
What is the major function of the wholesaler?
- A. buying from small-scale producers and selling to exporters
- B. buying in bulk and selling in small quantities
- C. granting of credit facilities to retailers
- D. providing information to manufacturers on market situation
The use of coin-operated machines to sell goods is a form of
- A. personal selling
- B. retailing
- C. wholesaling
- D. mail-order selling
Sole enterprise may flourish best in
- A. a mining business
- B. a retailing business
- C. an oil exploration business
- D. a car assembly business
Governments impose import duties for the following reasons EXCEPT
- A. to raise revenue for other services
- B. to act as a retaliatory measure against other governments
- C. to discourage the redistribution of income at home
- D. to protect home industries from external competition
What are fixtures and fittings in a balance sheet?
- A. liquid capital
- B. current assets
- C. fixed assets
- D. working capital
Compulsory dissolution of a business can arise from
- A. an agreement by the owners
- B. a declaration by a court of law
- C. the termination of its life
- D. an unfavourable economic climtate
Which of the following groups is paid first when a firm liquidates?
- A. Preference shareholders
- B. Debenture holders
- C. Ordinary shareholders
- D. Cumulative preference shareholders
Which of the following takes place when firms producing at different stages in the same industry combine?
- A. conglomeration
- B. vertical integration
- C. horizontal integration
- D. cartel
A distinguishing characteristics of a limited liability company is that it
- A. is a collection of many sole proprietors
- B. is a multiple partnership
- C. can sue and be sued
- D. has limited resources
A demonstration of social responsibility by a business is the payment of
- A. taxes to government
- B. dividends to shareholders
- C. interests on loans
- D. premium on insurance
The production process that combines two or more raw materials into one end product is
- A. conditioning
- B. blending
- C. merging
- D. synthesis
The type of activity which turns processed raw materials into consumer and industrial goods is described as
- A. extractive
- B. manufacturing
- C. constructive
- D. processing
Commerce is defined as the study of how
- A. man utilizes the resources in his physical environment
- B. man produces, distributes and consumes his goods and services
- C. man buys, sells and distributes goods and services
- D. raw materials are changed into finished goods