Correct Answer: C. Established to issue bank notes

Correct Answer: B. poundage

Correct Answer: D. reduce cash in circulation

Correct Answer: B. ocean liners

Explanation

(a)(i) Means of Payment in International Trade: (i) Bills of exchange:- It is an instrument drawn through the banking system to pay an oversea seller for goods bought by an importer from another country. (ii) Travellers cheques:- These are special cheques issued by banks to its customers to enable them make payment while outside the country. (iii) Debit Cards:-These are issued by banks to their customers to enable them pay for goods and services online, provided they have money in their accounts. (iv) International bank draft: It is a cheque issued by a local bank, payable overseas on its own agent and handover to the buyer. (v) Credit transfer:-lt is an arrangement by which funds are transferred from one local person's account to another in a foreign country by bank.

(ii) Means of payment in home trade: (i) Cash:- Local currency can be handed over to the seller as a means of payment. (ii) Point of Sales (POS):- Payment can be made through point of sale terminals using credit or debit cards. (iii) Bank app: Payment could be made directly by the buyer from their phones using bank applications (bank app). (iv) Local bank draft:- This is a cheque issued by a local bank payable within the country in the name of the seller.

(b) Reasons Countries Engage in International Trade: (i) Uneven distribution of natural resources- Some countries have abundance of certain natural resources for example oil while others do not. There is therefore need for trade to occur in order to obtain those resources. (ii) Differences in technology:- Differences in skills and technology necessitates trade as countries that do not have certain technology or skills in producing certain goods or services depend on others. (iii) Access to Wider marKet: The need to access a wider market for goods and services leads to international trade as surplus goods and services need to be exported. (iv) Need to access wide varieties of goods: Countries engage in international trade so as to obtain a variety of products so as to satisfy the different tastes of its consumers. (v) Seasonal products:- Some products are seasonal in nature and countries have to import them when they are no longer available. (vi) Comparative advantage: - Countries will prefer to buy products that are cheaply produced by other countries and use their surplus resources for other purposes (vii) To acquire capital asset that the country cannot produce. (vii) Countries in a bid to create employment encourage producers to produce for foreign market.

Correct Answer: D. bill of lading

Explanation

(a) The type of merger is vertical merger: lt is a merger where companies in the same line of business and at different levels of production come together to form a new company. This is when a company producing new raw materials merges with the one using the raw materials.

(b) Reasons that would have Necessitated the Formation of the Merger: (i) The merger could have resulted from the need for introduction of additional capital to avoid liquidation. (ii) There could be the desire by the firms to maintain stable prices. (iii) The decision to merge could have resulted from the need to achieve economies of scale. (iv) Reduction of overhead cost as a result of removal of duplicated staff could have necessitated the merger. (v) The desire to have regular supply of raw materials could have led to the merger. (vi) The merger could also arise due to the need to reduce the cost of production and increase profit. (vii) The firms could also merge because of the need to check competition and remove its undesirable consequences/achieve large share of the market.

(c) Sources of Finance Available to the Company: (i) Issue of shares:- This is where a newly formed company calls for subscriptions to shares. (ii) Issue of debenture: A debenture is a document conferring a long-term loan to a company. The holder becomes a creditor to the company and he is entitled to a fixed rate of interest whether or not the company makes profit. (iii) Bank loan: Banks advance loans to companies that satisfy the conditions for the loan. A loan is payable with interest at regular intervals (iv) Leasing:- An equipment or property could be rented for use by the new company for a specific number of years. (v) Hire purchase:- This facility is extended to companies to enable them own properties by making a down payment and the balance settled through installments. (vi) Overdraft:- The new company can arrange with the bank to withdraw more than what it has in the account.

Correct Answer: B. promote members' welfare

Correct Answer: B. collection of deposits from the public

Correct Answer: C. Sale of Goods Act