2024 - JAMB Commerce Past Questions and Answers - page 2

In the winding up of a company, the order of payment is as follows (from first to last):

1. Secured creditors
2. Unsecured creditors (including debenture holders)
3. Preference shareholders
4. Ordinary shareholders

Ordinary shareholders are paid last because they represent the residual ownership of the company, and receive what is left after all other claims are settled.

Persuasive advertising aims to influence consumers to buy a product or service, often by appealing to their emotions, desires, or aspirations. It is designed to create a want for something, even if the consumer doesn't necessarily need it.

The Articles of Association outline the internal regulations for a company's operations. The nature and object of the business is a key element of the Articles, as it defines the scope of the company's activities.

The activities involving transforming raw materials into finished products are categorized under manufacturing occupations.

The service described in the question is known as "Poste restante." None of the options provided accurately reflects this service.

Banks issue cheque books to customers who have current accounts. These accounts are designed for frequent transactions, making cheque books a convenient tool for making payments.

Petroleum products are most easily transported via pipelines. Here's why:

• Pipelines: Offer a continuous, direct, and efficient means of transporting large volumes of petroleum products over long distances, minimizing handling and reducing the risk of accidents.
• Air: Transportation by air is not a standard or economical method for moving petroleum products.
• Road: Road transport is used, but it is more expensive and can transport a lesser volume compared to pipelines.
• Rail: Rail transport is also used, but pipelines are generally preferred for large volumes and continuous supply.

Working capital is calculated using current assets and current liabilities. Current assets are items that a company expects to convert to cash within one year. Stock of raw materials is a current asset, whereas furniture, machinery, and office equipment are fixed assets.

Shares are sold at a discount when they are sold below their par (face) value.

Tariff is a tax or duty imposed by a government on the import or export of goods.