Correct Answer: D. air pollution

Explanation

(a)(i) Consequential loss is the loss on profit and rent which arises as a result of destruction of insured property by fire.

(ii) A cover note refers to a temporary insurance cover, usually for 30 days given to the prospective insured who has completed the proposal form. From the date of the note, he will be held covered until a policy has been issued or the proposal is declined.

(b) The advantages of insurance to a businessman are:

(i) Insurance provides a ready means of compensation in case of damage to or loss of property, limb or life.

(ii) Risk protection: Insurance makes it possible for certain risks (insurable risks) to be taken off the shoulders of the businessman.

(iii) Insurance offers a businessman the opportunity to save for rainy day (retirement benefits, annuity, etc) and through various endowment policies, insurance provides his dependants with relief in the event of his death.

(iv) Insurance provides pool of funds for businessmen to draw from in times of need.

(v) Insurance encourages businessmen to undertake businesses that ordinarily would have been considered risky and untouchable.

(vi) Insurance encourages savings among businessmen.

(vii) Insurance policies can be used as collateral for the purpose of borrowing money from banks and other financial institutions.

Explanation

(a)Marketing; is the business activity that directs the flow of goods and services from the producers to the final consumers. Marketing creates time, place, possession and form utilities. It arranges for producing and making goods available at the right time, in the right place and at the right price and form.

(b) The following are reasons why a manufacturer may sell directly to Consumers:

(i) The Manufacturer may sell directly to consumers when the goods are of perishable nature.

(ii) Where branded goods are involved such as tea, cigarettes, the manufacturer would gain by dealing directly with customers.

(iii) Where expensive goods like jewellery, furniture, large machinery are involved, the manufacturer prefers to deal directly with the customer.

(iv) Where the article is so standardized that it has a wide demand, the manufacturer would gain more by dealing directly with the customers.

(v) When goods with low rate of turnover are involved, the manufacturer sells directly to consumers.

(vi) Where technical or specialized knowledge of the product is a necessity as is the case with computers and photocopiers, the manufacturer usually prefers to deal directly with the consumer.

Correct Answer: D. product differentiation

Correct Answer: C. Post Office Box

Correct Answer: C. Consumers Association

Correct Answer: C. poundage

Correct Answer: D. perishable

Correct Answer: A. Rights issue

Correct Answer: A. The merchant wholesaler