Correct Answer: B. encourage individual to work towards achieving the orgaization's objective

Explanation

Insurance Terms:

(a)Proximate cause: This is an insurance principle that allows an insured to be compensated only when the event insured against happened as a direct cause and not from other risks not insured against. if a car insured against theft gets involved in an accident the insured will not be compensated.

(b)Contribution: This principle prevents an insured from making profit where he insured his property with more than one insurance company. In case of loss, all the companies will contribute money pro-rata to pay for the loss.

(c)Utmost good faith:This is an insurance principle that demands full disclosure and honesty from both parties in an insurance contract. The parties (insurer/insured) must disclose to themselves material facts that they know will affect their contract. If a party fails to do so the contract will be void at the option of the other party.

(d)Re-insurance:This is the process of sharing risks insured by an insurance company with other insurers. This is done by transferring part of the premium received to other insurers for a cover against what has been insured.

(e)Contract of non-indemnity (compensation):A contract of non-indemnity is a contract of insurance where the insurer can only pay something based on prior agreement because the loss cannot be replaced. It is not possible to give back life; as a result, money will be paid to the assured's family.

Correct Answer: A. speculation

Correct Answer: B. a contract

Correct Answer: D. auction sale

Correct Answer: C. called -up capital

Explanation

Called up share capital is shares issued to investors, under the understanding that the shares will be paid for at a later date or in installments.

Explanation

(a)Definition of terms for economic policies:

i.Nationalization: This is the taking over by the state the management and control of a business that formerly belongs to individuals (locals and foreigners). The business now belongs to the government.

ii.Indigenization: This is a deliberate policy by government to restrict ownership of a specific line of business in a country to the indigenes so that no foreigner would invest into such businesses. The aim is to reduce foreign domination of the country's economy.

iii.Commercialization:This is a policy of the government geared towards making state owned enterprises to become efficient and profit oriented. The commercialized companies are expected to generate enough income from their operations to finance themselves. Thus the business will be expected to charge economic rate for their services.

iv.Privatization: This is the transfer of management and control of a business owned by the government to private individuals or groups. This is done to allow for competition and efficiency.

(b) Reasons for government participation in business:

i. To create employment opportunities for the citizens/increase in standard of living.

ii. To ensure the provision of certain vital utilities that the citizens will not be attracted to go into because of the meager returns.

iii. To provided essential facilities at affordable prices for which the citizens would have paid highly if provided by private companies.

iv. To reduce duplications and wastages of resources compared to where many people are allowed to provide such facilities.

v. To ensure the security of the country especially in the case of key industry,

vi. To provide the capital required in the case of projects that require huge capital outlay.

vii. To make for even development within a country/ political reasons.

viii. To prevent private monopoly and profiteering.

Correct Answer: C. land and water pollution

Correct Answer: D. Warehouse warrant

Correct Answer: A. resources required for the provision of goods and services