Explanation

(a)(i) Letter of enquiry:

(i) Sent by the buyer to the seller to find out about the availability of goods their prices and the terms of payment.

(ii) It informs the seller of the goods required, the quantity, the time and the terms of delivery.

(ii) Invoice:

(i) It is document showing details of goods sold.

(ii) It serves as a receipt.

(iii) It is used to write up the purchases I sales journals.

(iii) Advice note:

(i) Sent to the buyer to inform him about the dispatch of the goods.

(ii) Informs the buyer of the quantity and type of goods, means of transport used and the expected date of arrival.

(iv) Credit note;

(i) Sent by the seller to correct an overcharge on an invoice.

(ii) Sent when the buyer has returned some faulty goods to the seller.

(iii) Sent when the seller has decided to give an allowance to the buyer.

(v) Statement of account:

(i) It enables the customer of a firm to have a thorough check of what he has purchased.

(ii) It also gives the customer an idea as to his financial standing at a given period.

(iii) The information in it is used by bank customer to prepare a bank reconciliation statement.

(vi) Debit note:

(i) Sent to the buyer when goods sold to him have been under-charged on an invoice.

(ii) It informs the buyer that his account has been debited.

(vii) Advantages of Automatic Vending:

(i) The sale is automatic, so it saves the cost of labour.

(ii) it operates/ opens for 24 hours: no time limit.

(iii) It is convenient to operate.

(b) Disadvantages of Automatic Vending:

(ii) Limited to a range of goods.

(ii) Subject to availability of goods.

(iii) Machines can be vandalized.

(iv) Machines can be faulty.

(v) It is expensive to operate/maintain.

Explanation

(a) Transport can aid trade in the following ways:

(i) Transportation has the ability to extend a firm's market area.

(ii) It encourages trade between one country and another.

(iii) Transport encourages the development of rural areas.

(iv) It facilitates efficient movement of productive resources.

(V) Transport facilitates quick and efficient distribution of goods in a country.

(vi) Because of the availability of goods and services, the standard of living will be improved.

(vii) Prevention of waste of perishable goods.

(b)(i) Freight; is the amount a person pays to the owner of a carrier for hiring his vessel for the transportation of goods.

(ii) Charter party; is a written agreement providing for the hire of a ship or some part of it for the purpose of transporting goods. The firm or person that charters a ship is known as the Charterer and the agreement states the name of ship, its destination, details of the cargo, the freight paid, etc.

Correct Answer: B. iii and iv

Correct Answer: B. Bill of lading

Explanation

(a) Commercial banks aid international trade in the following ways:

(i) Commercial banks discount documentary bills, thus ensuring that an exporter receives his money immediately.

(ii) A commercial bank can act as referee to its customers , vouch for their financial status and integrity when foreign business men ask for it.

(iii) They provide commercial credits to export merchants which facilitate payment for goods imported.

(iv) Commercial banks process foreign exchange requests and helps in transfer of funds.

(v) They facilitate overseas business trips through the sales of traveller's cheque.

(vi) They arrange delivery of shipping documents to the importer and help in clearing the goods from the ports authority and customs.

(b) Functions of the Nigerian Export Promotion Council are:

(i) Export marketing activities: The council issues information on the performance of Nigerian export commodities in foreign markets and identifies the barrier and ways of penetrating into new market.

(ii) Export financing and incentives: The council provides export financing facilities and insurance and assists exporters on export costing and pricing problems. It also advises on trade arbitration, shipping and freight.

(iii) Export development activities: The council adopts measures necessary to increase the volume of production from agriculture and ensures the development of raw products from agriculture for export.

(iv) Trade information services: The council provides trade information through publication of trade journals and export directives. It also organises meetings for exporters.

(v) Training activities: The council organizes seminars and workshops on export management for people engaging in foreign trade.

(vi) Publicity of Nigeria Export Promotion Council: It prepares and issues publications on the various activities of NEPC.

Correct Answer: D. help citizens participate fully in the economy

Correct Answer: B. Recorded delivery

Correct Answer: B. have a minimum of 100 shareholders

Correct Answer: D. product line pricing

Correct Answer: D. span of control