When a company insures the lives of all its employees collectively, the policy is
- A. accident insurance
- B. fleet insurance
- C. fidelity guarantee insurance
- D. group insurance
An insurance policy which is not a contract of indemnity is
- A. burglary insurance
- B. fire insurance
- C. life insurance
- D. motor insurance
The bank which acts as the lender of last resort is the
- A. Central bank
- B. Commercial bank
- C. Merchant bank
- D. Mortegage bank
The share value stated on a share certificate is
- A. above par value
- B. below par value
- C. market value
- D. nominal value
The right to buy or sell stock in the stock exchange within a stipulated period is
- A. option
- B. contango
- C. backwardation
- D. brokerage
A request for goods from another country by an importer would be made using
- A. an invoice
- B. an indent
- C. an order
- D. a quotation
A document issued by the seller’s own courier and signed by the customer to acknowledge receipt of the goods is
- A. advice note
- B. consignment note
- C. delivery note
- D. freight note
A discount deducted from the invoice price of goods to enable the retailer to make profit
- A. cash discount
- B. functional discount
- C. trade discount
- D. seasonal discount
One advantage of small scale retail outlets is
- A. availability of self service facilities
- B. ability to buy in bulk
- C. easy acess to large amount of capital
- D. personal attention to customers
A feature of supermarkets which distinguishes it from other large scale retail outlets is that items sold are
- A. mainly household goods
- B. mainly industrial goods
- C. delivered by post
- D. one line of products
Goods bought into the country for sale are the country’s
- A. invisible imports
- B. invisible exports
- C. visible imports
- D. visible exports
The difference between a country’s imports and exports of goods in a particular year is
- A. terms of trade
- B. terms of payment
- C. balance of payment
- D. balance of trade
The last link in a channel of distribution is the
- A. wholesaler
- B. retailer
- C. consumer
- D. agent
The part of issued share capital that the company has asked the subscribers to pay for
- A. authorised capital
- B. called-up capital
- C. nominal capital
- D. paid-up capital
When the cost of sales is divided by the average stock, the result is
- A. gross profit
- B. net profit
- C. rate of turnover
- D. working capital
Examples of current assets are
- A. cash and trade debtors
- B. cash and trade creditors
- C. trade debtors, trade creditors and cash
- D. trade creditors and trade debtors
The issue of prospectus by a company is an invitation to members of the public to
- A. subscribe to the company's shares
- B. attend the company's Annual general Meeting
- C. buy the company's products
- D. attend the company's board meeting
An association formed by computer distributors to safeguard and promote their interest is a
- A. chamber of commerce
- B. cooperative society
- C. trade association
- D. trade union
Which of the following is not a function of a consumer association?
- A. Ensuring that consumers buy quality goods
- B. Educating consumers on their rights
- C. Penalizing importers of fake goods
- D. Ensuring that fair prices are charged
The document issued by a public company allowing it to commence business is the
- A. Articles of Association
- B. Certificate of Incorporation
- C. Memorandum of Association
- D. Certificate of Trading
A business unit in which savings of members are lent to others is a
- A. consumer cooperative society
- B. producer cooperative society
- C. credit and thrift society
- D. wholesale cooperative society