2024 - JAMB Commerce Past Questions and Answers - page 3

An invoice is a document issued by the seller to the buyer, containing detailed information about the goods sold, including:* A description of the goods* The quantity of goods* The price per unit* The total cost* Payment terms* Other relevant information.The other options do not provide such a complete overview: an order form is used to request goods, a delivery note confirms the receipt of goods, and a bill of exchange is a payment instrument.

A bill of exchange sold for less than its face value before maturity is said to be discounted. This means the holder of the bill receives the present value of the bill, which is less than its face value, to get immediate cash. The difference between the face value and the discounted price represents the interest or discount charged by the financial institution or individual purchasing the bill.

Branding involves using trademarks to help consumers identify specific products or services. This identification helps consumers differentiate a company's goods from those of its competitors.

Nationalization is the process of taking a private industry or asset into state ownership. The primary goal is to bring the industry under the control and ownership of the government. This control can be used to achieve various objectives, such as improving public services, boosting economic growth, or advancing social welfare.

An ordinary partnership is a type of partnership in which all partners have unlimited liability and jointly manage the business.* **Unlimited Liability:** This means that each partner is personally liable for all the debts of the partnership.* **Joint Management:** All partners typically have a say in the management of the business.

Welfare services in an organization are designed to improve the overall well-being of employees. Training, medical facilities, and recreational facilities all contribute to employee well-being. Transportation, while it can be provided by an organization, is not considered a welfare service but is a benefit aimed at improving employee convenience and aiding in their ability to come to work.

Here's the breakdown of why the correct answer is A:* **A. inform Mr. Ade to tell his bank to stop payment:** This is the most appropriate action. Obi should inform Mr. Ade immediately. Mr. Ade, as the drawer of the cheque, is the one who can instruct their bank to stop payment on the stolen cheque. This prevents the thief from cashing the cheque.* **B. inform his bank to stop payment:** Obi's bank cannot stop payment on a cheque he received. Only the payer's bank (Mr. Ade's bank) can do that.* **C. simply ask Mr. Ade for another cheque:** While Obi will eventually need another cheque, the immediate priority is to prevent the stolen cheque from being cashed. Simply asking for a new cheque doesn't address the potential loss.* **D. tell his bank to add the amount to his bank balance:** This is incorrect. Obi's bank can't add money to his account based on a stolen cheque.

Departmental stores, supermarkets, and chain stores are all characterized by their large size, wide product selection, and extensive operations. They are designed to cater to a large customer base and handle high volumes of sales.

Advertising aims to:* Inspire public confidence in goods.* Arouse the interest of the public.* Attract the attention of the public.Advertising does *not* directly aim at reducing the cost of goods produced. While effective advertising might increase sales and potentially lead to economies of scale, the primary goal of advertising isn't to reduce production costs.

A cash discount is offered to customers to encourage them to pay their invoices quickly. This is a direct incentive for prompt payment.