Correct Answer: B. working capital

Correct Answer: C. insurable interest

Explanation

Insurable interest is defined as the reasonable concern of a person to obtain insurance for any individual or property against unforeseen events such as death, losses, etc. Insurable interest is an essential requirement for issuing an insurance policy which makes the entity or event legal, valid and protected against intentionally harmful acts. People not subject to financial loss do not have an insurable interest.

Correct Answer: C. stock

Correct Answer: C. an order cheque

Explanation

(a) A contract is an agreement that is enforceable in law. It may be written or oral.

(b) WAYS BY WHICH A CONTRACT CAN BE DISCHARGED

(i) By agreement

(ii) By performance

(iii) By breach

(iv) By frustration

(v) By lapse of time

(vi) Operation of law.

(vii) Act of God.

EXPLANATIONS

(i)By agreement:Both parties may decide to end the contract by mutually agreeing that the contract be ended.

(ii) By performance:A contact is automatically brought to an end if each party has performed his own part of the agreement, e.g. contract to supply machinery to end when the machinery is supplied and paid for.

(iii)By breach:A contract ends if one party fails to perform his own part of the contract.

(iv) By frustration:A contract is ended when factors that are not only beyond control but also not contemplated upon by both parties prevent any party from performing his own part, e.g. death or sickness of one party.

(v) By lapse of time: A contract is terminated if the time fixed for its performance has elapsed.

(vi)Operation of law: Contracts could be discharged when it becomes legally impossible to operate. e.g. a court declaring one party bankrupt, insane or subsequent illegality of the object of the contract.

(vii)Act of God: Contracts can be terminated by the occurrence of natural events like flooding, earthquake and storm

Correct Answer: B. devaluation

Explanation

A devaluation is an official lowering of the value of a country's currencywithin a fixed exchange rate system, by which the monetary authority formally sets a new fixed rate with respect to a foreign reference currency or currencybasket.

Explanation

(a) A Vending Macine is a movable machine with loading compartment for goods like cigarettes, soft drink, flowers, sweets. It has a slot to put in coins and a lever to pull to collect the goods paid for.

(b) REASONS WHY SUPERMARKETS ARE POPULAR WITH SHOPPERS

(i) Supermarkets operate on self service principle and this gives customers enough time to examine goods and choose what they want.

(ii) Supermarkets have price tags on goods and shoppers can easily calulate the total purchases and budget before getting to the cashier's desk

(iii) The air-conditioners in supermarkets provide a pleasant atmosphere/environment for shoppers to shop comfortably

(iv) Supermarkets offer a wide range of household goods and shoppers can get all they need in one shop

(v) Supermarkets are usually located in residential areas and shoppers can easily get to them

(vi) Customers can easily park their vehicles close to the supermarkets as most of them provide parking spaces

(vii) Some Supermarkets stock fresh goods which normally attract customers.

Correct Answer: D. mobile shop

Correct Answer: A. a bounced cheque

Correct Answer: D. contribution