2024 - JAMB Commerce Past Questions and Answers - page 8

The shares were sold at a premium because the selling price (#1.25K) was higher than the face value or nominal value (#0.75K).

Under a Hire Purchase System, the ownership of the goods is transferred to the buyer only after the final installment is paid. Before that, the seller retains ownership.

The Nigerian Standards Organization (SON) is the body responsible for setting standards and monitoring the quality of goods and services in Nigeria.

Gross profit is calculated by subtracting the cost of goods sold (COGS) from sales revenue:

• Sales: Represent the total revenue generated from selling goods or services.
• Cost of Goods Sold (COGS): Represents the direct costs associated with producing the goods sold by a company.
• Gross Profit = Sales - Cost of Goods Sold

NITEL (Nigerian Telecommunications Limited) was primarily involved in telecommunications services:

• Data Transmission: NITEL facilitated data transfer.
• Satellite: NITEL utilized satellite technology for communication.
• Telex: NITEL provided Telex services.
• Recorded Delivery: This service is provided by postal services like NIPOST, not NITEL.

Specialization refers to focusing on a specific area or job to gain expertise. This leads to increased efficiency and proficiency in that particular area.

The correct answer is "franco" because:

• Franco: Pricing means the seller bears all the costs, including transportation, to the buyer's location.
• Loco price: Refers to the price at the seller's location (e.g., factory or warehouse).
• Carriage paid: Indicates the seller pays for transportation up to a certain point, but not necessarily the final destination.
• Cash on delivery (COD): Is a payment method, not a pricing term that includes all costs to the destination.

A multiple shop, also known as a chain store, is characterized by having several stores that sell similar goods under the same brand or ownership. This allows for economies of scale in purchasing, advertising, and distribution.

A credit instrument represents a promise to pay a debt at a later date:

• Bill of Exchange, Cheques, and Bank Notes: Are all credit instruments as they facilitate transactions where payment is deferred.
• Bill of Lading: Is a document issued by a carrier to acknowledge receipt of cargo for shipment. It serves as a title to the goods but is not primarily a credit instrument, although it can be used in financing.

A commissioned agent is an agent who buys or sells goods on behalf of a principal (the owner of the goods) and receives a commission, which is a percentage of the value of the transaction.