Correct Answer: D. bill of lading

Correct Answer: A. a merchant wholesaler

Correct Answer: D. enhance economies of scale

Correct Answer: A. Quotation

Explanation

(a) Marketing can be defined as the business activities involved in assessing demand and moving goods and services to the final consumers for the purpose of satisfying human wants. Marketing system adds time and place utility to products, whereas a market is a place or point where the transfer of title or ownership of goods and services can be effected. The actual presence of goods may not be necessary because the most important feature of a market is the change of title or ownership of goods for money or price consideration.

(b) Importance of Marketing to a developing country are:

(i) It creates job opportunities for different classes of workers ranging from marketing firm to marketing related firms.

(ii) Marketing contributes a lot in increasing production which helps to boost the economy by creating demand for goods and services.

(iii) By maximizing consumption through good quality products and excellent ex-change process, there is increase in the standard of living of the people.

(iv) Marketing ensures that goods and services are effectively and evenly distributed to many parts of the country.

(v) Marketing ensures that the consumers are satisfied in terms of pricing, quality and availability of the needed products.

(vi) It ensures the fullest utilization of resources available in the developing nation.

(vii) Marketing serves as a key to the growth of the economy of a developing nation by making goods and services available at the right time and in the right place.

Correct Answer: A. invisible export

Correct Answer: D. an underwriter

Explanation

(a)(i) A Chamber of Commerce; is a voluntary association of business executives, tradesmen. entrepreneurs and others in a city who agreed to come together in order to protect and further their business interest.

(ii) A trade association; is an association of individuals, firms or companies engaged in a similar line of trade or providing similar services for the purpose of protecting their common interests.

(b) Functions of Chamber of Commerce are:

(i) They promote both home and foreign trades.

(ii) They collect and disseminate information that is of interest to members.

(iii) They watch the administration of Acts of parliament to prevent injury to Commerce and Industry.

(iv) They evaluate customs regulations and tariffs of foreign countries in the light of national interest.

(v) They arbitrate in the statement of disputes among members and render technical and legal advice when necessary.

Functions of Trade Association are:

(i) They promote trade in the particular line.

(ii) Disseminate technical information to members on the latest methods of production and usage of new products, thereby helping the manufacturers.

(iii) Undertake research work which may be beyond the ability of individual members.

(iv) Foster co-operation among members and make arrangements for the settlement of disputes among members.

(v) Establish a link with the government and make inputs to give feedback on government policies affecting them.

Correct Answer: C. Brief reason for the debit

Explanation

i. Cash paid if payment is made within 7 days:

AMOUNT TOTAL

N 25 cartons of milk at N4,000 per carton 100,000

17 cartons of soap at N5,000 per carton 85,000

5 cartons of sugar at N3,000 per carton 45,000

15 cartons of sweets at N2,000 per carton 30,000 260,000

Less 10% trade discount: 10/100 x N260,000 26,000

234,000

Less 6% cash discount: 6/100 x N234,000 14,040

Actual cash paid 219,960

ii. Selling price of the goods at a mark up of 20%

Formula: Selling Price = Cost - Trade discount + Mark up

OR

Sweets 15 x N2,000 = 30,000

Milk 25 x N4,000 = 100,000

Sugar 15 x N3,000 = 45,000

Soap 17 x N5,000 = 8 5,000

260,000

Less 10% trade disc. = 26,000

234,000

+ mark up(20% 234,000) = 46,000

Sales revenue = 280,000

ii. Net profit

Gross profit 46,800

Discount received 14,040

60,840

Less

Salaries and wages 8000

Rent and rates 3500

Fuel 2000

Electricity 1500 15,000

Net proft 45,840