Correct Answer: D. A wholesale warehouse

Explanation

(a)Market Segmentation: This is the process of dividing a company’s market

into identifiable groups in a way that specific products can be developed to satisfy each group.

(b)Functions of Marketing

• Risk bearing - it involves the calculation of marketing risk and taking necessary insurance cover to reduce their impact on the marketing of goods and services;
• Distribution - marketing ensures that goods and services are moved from points of production to points of consumption ;
• Exchange - marketing ensures that goods and services are sold and sales targets are set and met to achieve the company’s marketing objectives;
• Warehousing - through warehousing goods can be produced ahead on demand and then stored until they are needed;
• Promotion/ Advertising - it creates adequate awareness of the company’s products and services;
• Standardization and grading - it establishes specified quality that products must conform to and classify them into different sizes to suit each market segment;
• Pricing - marketing determines the pricing structures, margin and discount policies and pricing strategies to be adopted by a company;
• Product development - marketing identifies the consumers’ needs and wants and plans and designs effective products based on the identified needs and wants;
• Marketing research - marketing provides information on marketing mix and how they could be effective to the target market
• Financing - marketing provides income to the company through sales of goods and services.

Correct Answer: C. increased sales

Correct Answer: B. overdraft

Explanation

An overdraft is an extension of credit from a lending institution when an account reaches zero. Overdrafts come with interest and additional fees and should only be used sparingly. An overdraft will allow you to borrow money through your current account. Usually there

Correct Answer: D. Brand of vehicle

Correct Answer: C. consumption

Correct Answer: A. Management of national debt

Explanation

(a) Credit is a promise to pay at a future date for something of value received now with an agreed interest. / It is a postponement of payment for goods or services/usually with interest.

(b) Basic Principles of Insurance:

(i) Indemnity

(ii) Contribution

(iii) Subrogation

(iv) Proximate cause

(iv) Insurable interest

(vi) Uberimae fidei

(vii) Abandonment

(i)Indemnity: This principle states that the insured should be restored to former position in which he was before the occurrence of the loss.

(ii)Contribution: The principle of contribution provides that if an object is insured with more than one insurance company, the amount claimable from individual insurers will be limited to their individual ratable proportion of the loss.

(iii)Subrogation: Subrogation is the right which the insurance company has after compensating the insured to stand in the place of the insured and avail itself of the rights and remedies which the insured has against a third party who is responsible for the occurrence of the loss.

(iv)Proximate cause: This principle provides that there must be a close connection between the loss actually suffered and the risk for which an insurance policy has been taken before the insured is compensated or indemnified.

(iv)Insurable interest: Insurable interest provides that only the person who will suffer financial loss if the event to be insured against occurs, will be allowed to take out insurance.

(vi)Uberimae fidei:(Utmost good faith). This insurance principle provides that parties in an insurance contract must disclose all material facts to both parties or else the contract will be void.

(vii)Abandonment: This principle states that when the cost of repairing the insured property is higher than the actual cost of the object, the object will be abandoned and the insured will be compensated to the tune of the total loss while the object will be left with the insurer.

Correct Answer: C. factors of production

Correct Answer: D. skilled manpower