The principle which prevents an insured from receiving a claim that is more than the value of the loss, if the property is insured by more than one company is
- A. indemnity
- B. contribution
- C. proximate cause
- D. uberrimae fidei
The incentive given to a buyer to encourage prompt payment is
- A. cash discount
- B. seasonal discount
- C. quantity discount
- D. trade discount
A document that instructs an agent to buy goods from a named firm is
- A. proforma invoice
- B. open indent
- C. consular invoice
- D. closed indent
One of the functions of commerical banks that cannot be performed by central banks is
- A. collection of old notes
- B. collection of deposits from the public
- C. issuance of treasury bills
- D. printing of bank notes
The quality of money which makes it possible to buy goods in small quantities is
- A. portability
- B. homogeneity
- C. divisibility
- D. durability
A country’s visible balance of payment is made up of
- A. interest on loans to foreign countries
- B. profit from investment abroad
- C. earnings from goods exported
- D. dividend earned from companies
A retail store that sells a single product from a particular manufacturer is a
- A. tied shop
- B. shopping mail
- C. hypermarket
- D. chain store
Which of the following groups would advocate for the supply of constant electricity to households?
- A. Consumer's association
- B. Credit union
- C. Employer's association
- D. Labour union
A partner who contributes only his name to the formation of a partnership is
- A. a nominal partner
- B. a limited partner
- C. a general partner
- D. an active partner
Use the information below to answer questions 13 and 14
| # | |
| Sales | 50,000.00 |
| Debtors | 10,000.00 |
| Cash in hand | 5,000.00 |
| Opening stock | 30,000.00 |
| Creditors | 8,000.00 |
| Purchases | 16,000.00 |
| Overdraft | 12,000.00 |
| Closing stock | 10,000.00 |
- A. #35,000.00
- B. #20,000.00
- C. #15,000.00
- D. #14,000.00
Use the information below to answer questions 13 and 14
| # | |
| Sales | 50,000.00 |
| Debtors | 10,000.00 |
| Cash in hand | 5,000.00 |
| Opening stock | 30,000.00 |
| Creditors | 8,000 |
- A. #35,000.00
- B. #20,000.00
- C. #5,000.00
- D. #14,000.00
An internal source of finance to an enterpreneur is
- A. trade
- B. retained earning
- C. overdraft
- D. debenture
Which of the following documents would a shareholder inspect to know his voting rights?
- A. Articles of Association
- B. Certificate of Incorporation
- C. Certificate of Trading
- D. Memorandum of Association
A retail business that sells goods by post, using catalogue is a
- A. chain store
- B. department store
- C. mail order firm
- D. shopping mail
Average stock is derived by adding
- A. closing stock to purchase divided by 2
- B. closing stock to opening stock
- C. opening stock to closing stock divided by 2
- D. opening stock to purchases
A group of sellers who pool their resources to buy goods in large quantities and sell to its members is a
- A. wholesaler cooperative society
- B. thrift and credit society
- C. consumer cooperative society
- D. chamber of commerce
Which of the following organizations provide essential goods and services at low cost to citizens?
- A. Thrift societies
- B. Public enterprises
- C. Private companies
- D. Cooperative societies
The resources put together to create goods and services are
- A. working capital
- B. producer goods
- C. factors of production
- D. consumer goods
The service of a retailer is part of production because it
- A. creates a link between consumers and producers
- B. enables finished goods to reach consumers
- C. increases consumers standard of living
- D. is a commercial occupation
One of the products of the construction industry is a
- A. piece of cloth
- B. bag of cement
- C. television
- D. chair
The growth of commerce is not enhanced by
- A. development of modern forms of production
- B. government participation in business
- C. high population growth
- D. low per capita income