Correct Answer: D. the medium

Explanation

(a) Personal selling is a direct, face to face method of communication with the consumer. The personnel of the firm comes into contact with the customer.

(b) Importance of personal selling includes:

(i) It affords opportunity to respond to questions and handle objections promptly.

(ii) It allows the sales person to foresee a customer's particular needs and problems.

(iii) It is flexible to operate.

(iv) There is immediate feedback from the customers.

(v) It is a good method of sale when introducing a new product.

(vi) It is an important public relations tool utilized to project their image.

(vii) Modification is possible to suit the need of the buyer.

Correct Answer: A. Food and Drug Department of the Federal Ministry of Health

Correct Answer: C. nationalization

Correct Answer: D. funds

Explanation

The sole proprietorship is always faced with inadequate capital because of the small sizeof his business and his ability to source funds outside his business.

Correct Answer: A. paid-up share capital

Explanation

Explanation of some terms used in commerce:

(a) Fixed assets:

(i) These are permanent properties of the company bought not for sale.

(ii) They do not change their form in the course of production.

(iii) They are subject to depreciation.

(iv) They are used for future production.

(v) They are tangible in nature.

(vi) They can be used as collateral in mortgage.

(b) Certificate of trading:

(i) It is a document that enables a public company to commence business.

(ii) It is issued after the certificate of incorporation by the registrar of companies.

(iii) It is only issued after all Companies Act conditions have been met.

(iv) It must be obtained within one year of incorporation.

(c) Dividend:

(i) This is a share of the profit of a limited company distributed to the shareholders.

(ii) It is paid only when profits are made.

(iii) The amount payable is based on the number of shares held.

(iv) Dividends are only payable when declared by the company.

(iv) Dividends are paid through dividend warrants.

(d) Authorized capital:

(i) This is the total amount stated in the Memorandum of Association of the company.

(ii) This amount is the maximum amount of capital that a company can start business with.

(iii) It is also known as registered or nominal capital.

(iv) It can be classified into ordinary shares, preference shares, etc.

(e) Promoter:

(i) A promoter is an individual or group of people who conceive the idea of a company.

(ii) He undertakes to fulfill the legal requirements for the venture.

(iii) He can enter into pre-incorporation contract.

Correct Answer: B. personal selling

Correct Answer: D. manufacturer - consumer

Explanation

producer - consumer; This is the oldest, shorter and the simple channel of distribution. The producer sells the product directly without involvement of any middle man. The sale can be made door to door through salesman, retail stores and direct mail. Certain industrial and consumer goods such as clothes, shoes, books, hosiery goods, cosmetics, household appliances, electronic goods etc., may be sold through direct contact. Perishable goods such as vegetable and fruits can also be sold directly.

Correct Answer: B. Overdraft

Explanation

A security is a financial instrument, typically and financial asset that can be traded e.g bonds, debenture, stock, shares etc.