Correct Answer: A. trade credit

Explanation

Trade credit is the credit extended by one trader to another for the purchase of goods and services. Trade credit facilitates the purchase of supplies without immediate payment. Trade credit is commonly used by business organisations as a source of short-term financing. It is granted to those customers who have reasonable amount of financial standing and goodwill.

Correct Answer: C. certificate of origin

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. hirer

Explanation

a. Advertising It is a paid form of non-personal means of bringing the existence of goods and services to the knowledge of members of the public and to persuade them to buy and use the goods and services.

b. Demerits of Advertising

(i) It encourages adulteration of fast moving products.

(ii) At times it interrupts interesting programmes i.e. football matches/drama series/ topical discussion being viewed by audience.

(iii) It is instrumental to higher cost of products in the market, thereby making some products unaffordable.

(iv) Successful advertising leads to monopoly in the production and supply of some goods as it enables the bigger firms to drive away the smaller ones out of production and business.

(v) Some advertising through persuasion, mislead consumers to buy goods that they do not need

(vi) Some advertising is unethical as a result it corrupts the minds of young people.

(vii) Advertising leads to higher cost of production which may lead to liquidation

c. Ways in which producers can create awareness for their products

(i) This is done through the print media e.g. newspapers. magazines journals and catalogue which have state, national and international coverage.

(ii) The electronic media such as radio, television and cinema where products are displayed. and their uses demonstrated.

(iii) Personal selling: This involves engagement of salesmen who move from one place to another explaining the features benefits and uses of the products to members of the public.

(iv)Sales promotion: This involves giving out free gifts like T-shirts, openers, bags, caps and stickers that have the products' name or logo to attract buyers

(v) Through organized Trade Fairs and Exhibitions at well-known locations/centres to explain/educate their audience on the usage and benefits of the goods.

(vi) Use of Bill boards/ Hoardings mounted on top of buildings and other well designed structures at strategic locations with display of such products for the attention of passers-by.

(vii) Window display - This is used by sellers to display their goods in peculiar ways or unique design to attract passers-by.

(viii) Handbills/fliers/posters - Manufacturers engage the services of young school leavers who move about distributing these handbills/fliers to people.

(ix) Public address system/or ringing of belts to herald their presence before bringing the product to the knowledge of the people gathered around.

(x) Internet/Telephone - companies send unsolicited short message service (SMS) emails to prospective customers to create awareness.

Correct Answer: B. excise duty

Explanation

a. Communication is the transmission of messages or information from one source to another.

b. Means of Communication

• Word of mouth (oral)
• Letters/memo
• Circular
• Radios
• Telephone
• Television
• E-mail
• Internet
• Journals/Newspapers/Magazines
• Catalogues
• Neon Signs
• Posters/Bill boards
• Fax Telegram

c. Importance of Communication in Business

(i) It enhances contact with suppliers of goods and services

(ii) For advertisements-Businesses need to inform the public about the availability of their products

(iii) Communication is needed for payment of business transactions

(iv) Communication aids effective business management by providing the necessary information for sound decisions and also keeping staff and management well in-formed.

(v) Feedback/contact with customers Communication helps a business to interact with its customers/market re-search thus enabling firms to improve their products.

Correct Answer: A. working capital

Correct Answer: D. caveat emptor

Explanation

Caveat emptor is a neo-Latin phrase meaning let the buyer beware. the principle that the seller of a product cannot be held responsible for its quality unless it is guaranteed in a warranty. The buyer is required to properly examine goods before making payment because the seller wont be held responsible for any defects in the goods unless it comes with a warranty

Correct Answer: C. tarmac