Correct Answer: D. current assets less current liabilities

Correct Answer: D. multiple stores

Correct Answer: C. #6,000,000

Correct Answer: D. demurrage payable

Explanation

(a) Elements of a Valid Contract:

(i) Offer

(ii) Acceptance

(iii) Consideration

(iv) Contractual capacity

(v) Legality

(vi) Formality.

(i)Offer: This is a proposal from one party to another or persons stating their intention to enter into contract on the term stated.

(ii)Acceptance: This is a confirmation by the person to whom the offer is made, of his intention to accept the term offered.

(iii)Consideration: This is the value in exchange between the parties in a contract.

(iv)Contractual Capacity: All parties to a contract must be capable of entering in the type of contract they wanted to enter into e.g. the person must be of age and not a minor.

(v)Legality: The object of the contract itself must be legal, if not, the contract is void and cannot be enforced.

(vi)Formality:This refers to the form a contract must take to be valid, i.e. whether it should be in writing or oral, etc.

(b) Duties of Agents to the Principal.

(i) He must obey lawful instructions of his principal

(ii) He must not compete with his principal

(iii) He must render account of his stewardship

(iv) He must not delegate his duties to another person.

(v) He must be honest in his dealings/must not make secret profit.

(vi) He must exercise reasonable care and skill in the performance of his duties.

(vii) He must keep his principal's affair secret.

Correct Answer: B. Chamber of Commerce

Explanation

(a) Functions of the Wholesalers to the Manufacturers are:

(i) They gather and provide Market Information (advice) to the manufacturers/finance market research.

(ii) They provide warehouse facilities for goods, thus enabling production to go ahead of demand.

(iii) They finance manufacturers by paying in advance for goods.

(iv) They sometimes provide and pay for advertisement on behalf of the manufacturers.

(v) They buy in bulk and save the manufacturer the problem of selling in bits.

(vi) They help the manufacturer in completing the production by branding, packaging and blending.

(vii) They provide transportation, as a result save the manufacturer the cost of delivery.

(b) Problems of Co-operative society are:

(i) Most societies lack capital to finance their projects

(ii) There is the possibility of embezzlement of funds on the part of officials.

(iii) Most members usually refuse to repay loans granted to them hence the problem of bad debts.

(iv) Most of the members lack education on what goes on in the cooperative society management.

(v) Most members of the management committee lack the expertise in business/poor management.

(vi) Most Co-operative Societies lack proper documentation, which makes tracking of loans and deposits difficult.

(vii) Disagreement/favouritism among executive members could affect the running of the Co-operative Society.

Correct Answer: C. entrepot trade

Correct Answer: C. certificate of incorporation

Correct Answer: D. Granting loans to the public