Explanation

(a) (i) Authorized capital D6,000,000 x D5.00 = D30,000,000

(ii) Issued capital D3,000,000 x D5.00 = D15,000,000

(iii) Called up capital D3,000,000 x D2.00 = D6,000,000

(iv) Paid up capital 3,000,000 - 1000 = 2,999,000 x D2.00 D5,998,000

(b) Working Capital = Current Assets - Current Liabilities

(i) Current Assets

Debtors N18,000

CashN8,000

N26,000

Less Current liabilities:

Creditors N 6,500

Overdraft N11,000N17,500

Working Capital= N8,500

(ii)Net sales

Sales N50,000

Less sales return N12,000

N38,000

(iii) Net Profit Percentage

Net Profit 20000 x 100 = 52.6%

Sales 38000

(iv) Fixed Assets

Buildings N31,000

Motor vehicle N20,000

N101,000

Correct Answer: D. sales promotion

Explanation

a. Ways in which marketing is important to a business

i.Profit— Marketing makes it possible for business to achieve their objective of profitability.

ii.It serves as a link between production and consumption; This is done by making it possible for goods produced to be moved from the producer to where they are needed through various channels of distribution.

iii.Creates awareness— it makes it possible for consumers to be aware of the existence of products. This leads to increased sales.

iv. Enhances consumers' satisfaction— This is done by providing the right product, at the right place, at the right time and at the right time and at the right price following market research results.

v.Survival— Marketing strategies help a business to survive especially during the time of stiff competition and economic meltdown.

vi. Marketing activities helps to increase sales of a company's product.

b. Promotion tools Jones Ltd. Could use

i.Trade fairs and exhibition - This is done at specific locations to encourage patronage. It will be used to introduce the products to buyers.

ii.Free samples— This is done using products as samples to prospective consumers.

iii. Discounts— This involves reducing the price of the products to encourage quantity bought.

iv.Buy one get one free— this is used to encourage patronage of the same product.

v. Coupons— This is the ticket offered to buyers to be used as discount against next purchase.

vi.Gift - These are promotional items offered free to buyers of products

vii.Raffle draws— This is a way of encouraging patronage by promising gift that could be won through draws.

viii.After sales services— This is rendered to customers to encourage continuous patronage

ix.Premium offer— This involves increasing the quantity of product for sale at the old package price.

x.Party selling— The Company could finance parties with a view to using the opportunity to sell its products.

xi.Contest- Customers can be invited to participate in a contest using the products as ticket to encourage sales of its products.

xii.Advertising— This is done to create awareness and persuade customers to buy the company's products through the print and electronic media.

xiii.Personal selling — This is a way of meeting the customer on one-on-one basis by the company in order to encourage them to buy.

xiv.Public relation— This measure could be used by the business to maintain good relationship with its customers.

Correct Answer: B. legally come into being

Correct Answer: D. organizing

Correct Answer: C. highly geared

Correct Answer: B. supermarket

Correct Answer: B. prices of goods

Correct Answer: D) Issue of shares to shareholders on favourable terms

Explanation

A rights issue refers to the situation where a company offers its existing shareholders the opportunity to purchase additional shares at a discounted price. This is done in proportion to their current shareholding.

In simpler terms, if you are already a shareholder of a company and the company decides to raise more funds by issuing new shares, they will give you the right to buy these new shares before they are offered to the public. This is called a rights issue.

The correct option in this question is Option D: Issue of shares to shareholders on favorable terms. This means that the company is offering its existing shareholders the chance to buy new shares at a discounted price or with some other favorable terms.

So, in summary, a rights issue is when a company offers its existing shareholders the opportunity to buy more shares at a discounted price before they are offered to the public. This helps the company raise additional funds and allows shareholders to increase their ownership in the company.

Correct Answer: B. Deals in one line of goods