Correct Answer: C. Barbing

Explanation

Barbing does not belong to the extractive industry. The extractive industry involves the extraction of natural resources from the earth such as oil, minerals, and gas. Barbing, on the other hand, is a service industry.

Correct Answer: C. bank draft

Explanation

(a) Characteristics of a limited liability company are:

(i) The liability of the owners is limited to their investment in the company.

(ii) The company is a legal entity; as a result, it can sue and be sued.

(iii) The affairs of the company is managed by Board of Directors as ownership is separated from management.

(iv) In case of liquidation, the company's assets will be used to settle debts.

(v) The company's authorized capital is divided into shares.

(vi) The affairs of the company are governed by memorandum and article of association, formation or incorporation.

(vii) Dividend is based on the number of shares owned/Return on investment is called dividend.

(viii) The shares are quoted on the stock exchange in case of Public Limited Company while the shares are not quoted in case of Private Limited Company.

(ix) The company must have a registered office.

(x) Death of a shareholder will not lead to the end of the company.

(xi) The owners are called shareholders.

(b) Sources of funds to a public limited company are:

(i)Debentures: This is a loan which had security backing it up. Debenture holders are creditors.

(ii)Retained Earnings: Companies may decide not to distribute all their profits as dividend so that they can plough back the money for growth.

(iii)Leasing: This is a method of buying equipment through a company/bank. The bank will buy the equipment in its own name and lend the equipment out for lease or rent.

(iv) Trade Credit: This is a process of buying items for sale on credit from suppliers.

(v) Borrowing from Banks could be through loans or overdraft.

(vi) Factoring of debt: This is the process of companies selling off their debts for cash now.

(vii) Raising of funds from the Capital Market/Selling of shares.

(viii) Selling of company's asset: A company can sell any of its assets to raise funds.

Correct Answer: A. Letter of inquiry

Correct Answer: B. contribution

Correct Answer: A. the material should be supplied by Ade

Correct Answer: A. Total loss and partial loss

Correct Answer: A. speculation

Explanation

Speculation in regards to commodity market, is the purchase of a commodity with the hope and expectation that, they maybe variation or changes in prices of the said product. This normally happens when there is fear that they maybe an upward turn or increase in price in future

Correct Answer: D. issued capital

Explanation

a. Functions of the Stock Exchange:

(i) The stock exchange makes it easy for securities to be converted into cash.

(ii) The exchange makes it possible for the transfer of securities from their original owners who may wish to sell them to others.

(iii) An investor always knows the price of his shares or holdings whether they are for sale or not as their prices are always quoted on daily basis by the Stock Exchange.

(iv) The Stock Exchange helps firms/ companies to raise capital through the sale of stocks/shares.

(v) The Stock Exchange creates confidence in the investing public by drawing up rules and guidelines which ensure fair play in share dealings.

(vi) The Exchange brings buyers and sellers of securities together.

(vii) It approves the quotation or listing of new shares thereby making them known to the public.

(b) Ways the Central Bank regulates the activities of Commercial Banks:

(i)Special deposits: Commercial banks are required to have special deposits with the Central Bank. This can be increased or decreased to influence commercial bank activities.

(ii)Bank rates:The Central Bank determines the rate at which the commercial bank should lend by fixing the minimum discount rate.

(iii)Special directives: Central Bank gives special directives to commercial banks regarding areas in the economy for which loans and advances should be given.

(iv)Moral suasion: The Central Bank sometimes engages the commercial bank in a dialogue in order to agree on how banking activities are to be carried out

(v)Cash Ratio: This is the relationship between the total deposit and cash held against it. It can be increased by the Central Bank as a control to commercial banks' activities.

(vi)Supervision: The Central Bank controls the activities of commercial banks by engaging in close supervision in ensuring that their operations are in conformity with set standards.

(vii)Open market operations:This is the strategy used by Central Bank to reduce or increase the ability of other banks to lend money to its customers by buying or selling bonds and stocks to the public as the case may be.