# Commerce 2015 | Study Mode

Question 41
A
A redeemable bond
B
An irredeemable bond
C
A development bond
D
A long-term loan
##### Explanation
the bond is per petrol, which is until death. The issuing authority or entity pays a specific interest rate periodically but provides no data on when the principal will be returned.

Question 42
A
dock warrant
B
Dock landing account
C
Ball of sight
D
Bill of landing note
##### Explanation
It is a document that shows that the goods are stored in the warehouse and it entitles the holder to take possession of the goods.

Question 43
A
Natural Environment
B
Cultural environment
C
Economic environment
D
Demographic Environment
##### Explanation
demographic environment that put into consideration the composition of the population of the consumers, it determines the quantity of goods to be produced.

Question 44
A
4% surcharge will be made unless payment is made within seven days
B
4% discount will be allowed on the price charged only if the good are bought within seven days
C
4% discount will be allowed on the price charge if payment is made after seven days
D
4% discount will be allowed on the price charged if payment is made price charged if payment is made price charged if payment is made within seven days.
##### Explanation
the discount is allowed to encourage seller prompt payment for the goods bought by the buyer.

Question 45
A
Vertical integration
B
Horizontal integration
C
Forward Integration
D
Background integration
##### Explanation
this integration involves the coming of two or more firms at different production stage in the same industry. The production of wool is one stage in the production of cloths while spinning and transformation of the wool into clothes is another stage in the production of clothes

Question 46
A
An insured person should be indemnified to the time of the amount insured
B
An insurance company constant in lace of the insured in dealing with third party.
C
Only a person who is likely to suffer loss hold take out an insurance cover
D
There must be accuse connection between the actual loss suffered and risk insure
##### Explanation
The option is in line with the principle of subrogation

Question 47
A
N320
B
N350
C
N500
D
N800
##### Explanation
Closing stock for the year of an accounting period is also regarded as unused stock.

Question 48
A
N200,000
B
N190,000
C
N170,000
D
N175,000
##### Explanation
The cost of goods sold is calculated through the formula below

opening stock + purchases closing stock.
If we go by the formula above it is
N50,000 + N 200,000 - N80,000 which is equal to N170,000.

Question 49
A
4 : 1
B
5 : 1
C
3 : 1
D
2 : 1

Question 50
A
N15,000
B
N20,000
C
N12,000
D
N25, 000
##### Explanation
Since the policy is with average clause the formula used in calculating his compensation is

$$\frac{\text{Amount insured x total actual loss}} {\text{Total actual value of property}}$$

By this formula the compensation will be

Amount insured = N30,000

Amount loss = N40,000

Actual Value = N100,000

=$$\frac{30,000 \times 40, 000}{100,000}$$

= $$\frac{1200000000}{100,000}$$ = 12,000

Try this quiz in in E-test/CBT Mode
switch to