NABTEB GCE 2023 COMMERCE ANSWERS (O’LEVEL)
“`INSTRUCTION; ANSWER FIVE(5) QUESTIONS ONLY“`
(i) Accepting Deposits
(ii) Granting Loans and Advances
(iii) Credit Creation
(iv) Facilitating Payments
(v) Investment of Funds
(i) Accepting Deposits: Commercial banks provide a safe place for individuals, businesses, and other entities to deposit their money. This function includes savings accounts, current accounts, fixed deposits, and other types of deposit accounts.
(ii) Granting Loans and Advances: Banks lend money to individuals, businesses, and government entities for various purposes such as buying homes, starting or expanding businesses, and financing projects. This function helps stimulate economic activities.
(iii) Credit Creation: One of the key functions of commercial banks is to create credit. When banks lend money, they effectively create new money in the form of bank deposits. This process contributes to the overall money supply in the economy.
(iv) Facilitating Payments: Commercial banks provide various payment services to facilitate transactions. This includes issuing checks, providing electronic funds transfer services, and offering debit and credit cards, making it easier for people and businesses to engage in financial transactions.
(v) Investment of Funds: Commercial banks invest their funds in various financial instruments such as government securities, bonds, and other money-market instruments. These investments help banks generate income to cover their operational costs and provide returns to depositors.
The Nigeria Ports Authority (NPA) is a government agency responsible for the management, operation, and regulation of ports in Nigeria. It serves as the statutory body that oversees the development and maintenance of the country’s ports and harbors. The NPA plays a pivotal role in facilitating maritime trade and ensuring the efficiency and effectiveness of port operations.
(i) Port Management and Development:
The NPA is responsible for the overall management and development of ports in Nigeria. This involves planning, designing, and implementing strategies to enhance the infrastructure and capacity of the ports to accommodate growing maritime activities.
(ii) Regulation of Maritime Operations:
The NPA acts as a regulatory body overseeing maritime operations within Nigerian ports. It establishes and enforces standards and regulations to ensure the safety and security of port activities, as well as compliance with international maritime standards.
(iii) Facilitation of Maritime Trade:
One of the primary functions of the NPA is to facilitate the smooth flow of maritime trade. This includes ensuring efficient cargo handling, proper documentation, and timely clearance of goods to and from the ports. The NPA plays a crucial role in reducing bottlenecks in the shipping and logistics processes.
(iv) Revenue Collection:
The NPA is responsible for collecting various fees, tariffs, and dues associated with port activities. This includes charges for the use of port facilities, berthing fees, and other levies. The revenue generated contributes to the maintenance and improvement of port infrastructure.
(v) Maintenance of Navigational Channels:
The NPA is tasked with the maintenance of navigational channels leading to and from the ports. This involves dredging and ensuring that waterways are navigable, allowing vessels to safely approach and leave the ports. Clear and well-maintained channels are essential for the efficient movement of ships.
(vi) Collaboration with Stakeholders:
The NPA collaborates with various stakeholders in the maritime industry, including shipping companies, terminal operators, customs authorities, and other relevant agencies. This collaboration is crucial for ensuring coordinated efforts in port operations, security, and compliance with international standards. The NPA works to create a conducive environment for all stakeholders involved in maritime trade.
(3a) Price Control Boards:
Price control boards protect consumers by regulating and controlling the prices of essential goods and services. These boards, often established by the government, set maximum prices for certain products to prevent unfair pricing practices and ensure affordability for consumers. By monitoring and controlling prices, these boards help prevent price gouging and ensure that consumers have access to essential items at reasonable and fair costs.
(3b) Professional Associations:
Professional associations protect consumers by setting and enforcing standards of professional conduct and ethics within specific industries. Members of these associations, such as doctors, lawyers, engineers, and others, are bound by a code of ethics that prioritizes the well-being and interests of clients or consumers. This ensures that consumers receive services that meet a certain standard of quality and professionalism. Professional associations may also have mechanisms for addressing consumer complaints and disciplining members for unethical behavior.
(3c) Manufacturers Associations:
Manufacturers associations can protect consumers by establishing and maintaining quality standards for products. These associations work to ensure that their members adhere to specific production and safety standards, providing consumers with products that meet certain quality benchmarks. Additionally, manufacturers associations may advocate for consumer rights and interests at the industry level, influencing policies that enhance product safety and consumer protection.
(3d) Rent Tribunals:
Rent tribunals protect consumers, specifically tenants, by providing a fair and impartial resolution to disputes between landlords and tenants. These tribunals help prevent unfair eviction practices, ensure that rent increases are reasonable, and address issues related to the maintenance and condition of rental properties. By providing a forum for dispute resolution, rent tribunals contribute to a balanced and just relationship between landlords and tenants, safeguarding the rights and interests of consumers in the housing market.
(3e) NAFDAC (National Agency for Food and Drug Administration and Control):
NAFDAC protects consumers by regulating and ensuring the safety and quality of food, drugs, cosmetics, and other related products. This agency, typically established by the government, conducts inspections, sets standards, and enforces regulations to ensure that products in the market are safe for consumption. NAFDAC’s approval is often required before products can be sold to the public, reducing the risk of substandard or harmful products reaching consumers. Through its activities, NAFDAC contributes to safeguarding the health and well-being of consumers.
(i) Name and Address of the Partners
(ii) Nature of Business
(iii) Capital Contribution
(iv) Profit and Loss Sharing
(v) Management and Decision-Making
(i) Mutual Agreement:
Partnerships can be dissolved by mutual agreement among the partners. If all partners unanimously decide to dissolve the partnership, they can do so through a formal resolution. This might occur due to changes in circumstances, a shift in business goals, or a desire to pursue different ventures.
(ii) Expiration of Partnership Term:
If the partnership agreement specifies a fixed term, the partnership may dissolve upon the expiration of that term. This is common in partnerships formed for a specific project or a predetermined period, and the dissolution occurs as per the terms outlined in the partnership agreement.
(iii) Breach of Partnership Agreement:
If one or more partners breach the terms and conditions outlined in the partnership agreement, it can lead to the dissolution of the partnership. Serious violations such as financial misconduct, failure to fulfill obligations, or a breach of trust can be grounds for dissolution.
(iv) Death or Incapacity of a Partner:
The death or incapacitation of a partner can lead to the dissolution of the partnership. If the partnership agreement does not address the procedures for handling such situations, the remaining partners may choose to dissolve the partnership due to the practical challenges posed by the absence of a partner.
(v) Bankruptcy or Insolvency:
If a partner becomes bankrupt or insolvent, it can trigger the dissolution of the partnership. The financial instability of a partner may impact the overall financial health of the partnership, leading to its dissolution as a protective measure for the remaining partners.
(i) Social Welfare Orientation:
Government ownership often aligns with social welfare goals. Public enterprises can prioritize services and infrastructure that benefit society, even if they may not be immediately profitable. This orientation can lead to the provision of essential services, such as healthcare, education, and public utilities, for the broader well-being of the population.
(ii) Strategic Control and Planning:
Government ownership allows for strategic control and planning in key sectors of the economy. Public enterprises can be instrumental in implementing long-term plans and projects that align with national development goals. The government can use these enterprises to steer economic development and address strategic issues such as infrastructure development and industrialization.
(iii) Prevention of Monopolies and Exploitation:
Government ownership can prevent the emergence of private monopolies that may exploit consumers. Public enterprises, when properly regulated, can ensure fair competition, prevent price gouging, and provide services at reasonable rates. This can be particularly important in industries where natural monopolies exist.
(iv) Employment Generation:
Public enterprises are often significant employers. Government ownership can be a tool for job creation, helping to address unemployment and contribute to economic stability. Public enterprises may prioritize local employment and contribute to skill development within the workforce.
(v) Stability and Security of Services:
Government ownership can contribute to the stability and security of essential services. In sectors like energy, transportation, and communication, public enterprises can ensure the continuous provision of services, even during economic downturns. This stability is crucial for maintaining the functioning of society.
(i) Inefficiency and Bureaucracy
(ii) Political Interference
(iii) Lack of Innovation and Competition
(iv) Financial Burden on Government
(v) Risk of Corruption and Mismanagement
(i) Proposal form: A proposal form is a document that an individual or business fills out when applying for insurance coverage. It contains important information about the applicant, such as personal details, the type of coverage needed, and any relevant risk factors. The proposal form helps the insurance company assess the level of risk and determine the premium for the policy.
(ii) Cover note: A cover note is a temporary document issued by an insurance company to provide proof of insurance coverage while the actual policy is being processed. It serves as a temporary measure until the policy documents are prepared and sent to the insured. The cover note typically contains key details such as the insured’s name, policy number, effective dates, and a summary of the coverage provided.
(iii) The policy: The policy is the formal written contract between the insured and the insurance company. It outlines the terms, conditions, and coverage provided by the insurer. The policy document specifies the rights and obligations of both parties, including the scope of coverage, premium payment details, claims procedures, and any exclusions or limitations.
(iv) Insurer: The insurer is the insurance company or organization that provides insurance coverage to individuals or businesses. The insurer assumes the financial risk associated with potential losses or damages covered under the insurance policy. They collect premiums from policyholders and are responsible for paying out claims based on the terms of the policy.
(v) Insured: The insured refers to the individual or entity that is covered by an insurance policy. They are the party seeking protection against potential risks or losses. The insured pays premiums to the insurer in exchange for the coverage provided by the policy. In the event of a covered loss, the insured can file a claim with the insurer to seek compensation or reimbursement.
A contract is a legally binding agreement between two or more parties that creates an obligation to do or not do a particular thing. It involves an offer made by one party, the acceptance of that offer by another party, and the exchange of something of value (consideration) between the parties.
(i) Offer and Acceptance:
For a contract to be valid, there must be a clear offer by one party and a corresponding acceptance by the other party. The terms of the offer must be definite, and the acceptance must be unconditional, creating mutual assent between the parties.
(ii) Intention to Create Legal Relations:
The parties involved in a contract must have the intention to create legal relations. This means that they must intend for the agreement to be legally binding. Social agreements or agreements made in a domestic or friendly context may lack this intention.
Consideration is something of value exchanged between the parties as part of the contract. It could be money, goods, services, or a promise to do or refrain from doing something. Consideration is essential for the contract to be enforceable and indicates that there is a bargained-for exchange between the parties.
(iv) Legality of Purpose:
The purpose or object of the contract must be legal. A contract with an illegal purpose or object is void and unenforceable. For example, contracts for illegal activities or those against public policy are not valid.
(v) Capacity of the Parties:
The parties entering into the contract must have the legal capacity to do so. This means they must be of sound mind and, in some cases, of a certain age. Contracts with minors, individuals lacking mental capacity, or those made under duress may be voidable.
(vi) Certainty and Possibility of Performance:
The terms of the contract must be clear and certain enough for the court to enforce them. Additionally, the performance of the contract must be possible, legal, and not against public policy. If the terms are vague or the performance is impossible, the contract may be unenforceable.
A sole proprietorship is a business structure in which a single individual owns and operates the entire business. In a sole proprietorship, there is no legal distinction between the owner and the business entity.
(i) Loans from Financial Institutions
(ii) Profits retained in the business
(iii) Personal savings
(i) Limited Capital and Resources:
Sole proprietorships may face challenges in accessing significant capital compared to larger business structures. Limited financial resources can constrain business expansion and competitiveness.
(ii) Unlimited Personal Liability:
The proprietor is personally responsible for all the business’s debts and liabilities. This means that personal assets, such as the proprietor’s home and savings, are at risk in the event of business losses or legal issues. This unlimited liability is a significant drawback.
(iii) Limited Skill and Expertise:
As the sole owner, the proprietor is responsible for all aspects of the business, from management to operations. This can be a disadvantage if the individual lacks expertise in certain areas, such as marketing, finance, or human resources, potentially leading to challenges in decision-making and business development.
(9a) Department store:
(i) Wide Variety
(ii) Multiple Departments
(iii) Customer Service
(9b) Multiple stores:
(i) Multiple Locations
(iii) Increased Accessibility
(9c) Unit stores:
(i) Single Location
(ii) Local Focus
(iii) Personalized Service
(i) Wide Range of Products
(iii) Competitive Pricing
(9e) Mail-order houses:
(i) Remote Shopping
(ii) Home Delivery
COMPLETED….We Remain Your Favourite Site.
Ensure You Subscribe For Your Next