2024 - JAMB Commerce Past Questions and Answers - page 5

An agent held responsible for the non-payment of goods bought by a customer he introduced to his principal is called a del-credere agent. This type of agent guarantees the creditworthiness of the customers they bring to the principal. If the customer fails to pay, the del-credere agent is liable for the debt.

A bonded warehouse is specifically designed for storing goods that are subject to import duties until those duties are paid. Because of this function, they are usually located near ports and airports for easy access for imported goods. The other options are not typically situated near ports.

The area of law that is NOT directly related to business is possession.

• Agency, hire purchase, and contract: All fundamental aspects of business operations.
• Possession: While it can relate to business (e.g., property ownership), it is more broadly related to the general legal concept of owning something, not specifically to business dealings.

The sum of #2,000.00 is the consideration in this transaction.

• Consideration: Refers to something of value exchanged between parties in a contract. In this case, Halima provided the money (#2,000.00), and Aisha provided the wristwatch.
• Entitlement: Means the right to have something.
• Money: The general term for currency.
• Fees: A sum paid for a service.

Excise duty is a tax levied on the production or sale of specific goods within a country.

A closed indent specifically instructs an agent to purchase goods from a particular supplier. This is in contrast to an open indent, which allows the agent more flexibility in choosing the supplier.

Communication enables producers and consumers to interact and conduct business remotely. This can occur through various channels, such as telephone, internet, and email. The other options are not directly related to facilitating transactions without physical contact.

Pre-sales services are activities that a seller provides before a sale is made to entice or assist a potential buyer.

• A. Granting credit or hire purchase facilities is a pre-sales service as it encourages the purchase by offering flexible payment options.
• B. Assisting with setting up storage facilities is a post-sales service, not a pre-sales service. This happens after the sale to help with the product's usage or storage.
• C. Dispatching quotations and price lists is a pre-sales service as it provides information to potential buyers to help them make a decision.
• D. Providing detailed information about goods is a pre-sales service as it helps the buyer understand the product's features and benefits, aiding their purchase decision.

The term "consumer sovereignty" implies that the consumer's preferences and choices ultimately dictate what is produced and offered in the market. They "rule" in the sense that businesses must cater to their demands to survive. Therefore, the consumer is analogous to a "king."

Marketing functions include activities that facilitate the exchange of goods and services from producers to consumers. These functions include:

• Packaging: This protects and presents the product.
• Distribution: This involves getting the product to the consumer (e.g., transportation, warehousing).
• Advertising: This promotes the product to potential customers.

Insurance, however, is a financial service that protects against risk and is not directly a marketing function.