Commerce Questions and Answers

An excise duty is a type of tax charged on goods produced within the country

excise duty is a percentage levied on manufacture, sale, or use of locally produced goods

Open market operations (OMO) refer to the buying and selling of government securities in the open market in order to expand or contract the amount of money in the banking system.

Open Market Operations. Definition: The Open Market Operations refers to the sale and purchase of government securities and treasury bills by the central bank of the country with a view to regulate the supply of money in the economy.

disadvantages of rail transportation includes: Lack of Flexibility, Lack of Door to Door Service, Monopoly, Unsuitable for Short Distance and Small Loads, Booking Formalities, No Rural Service, Under-utilized Capacity

there is lack of flexibility in rail transportation

Partnership. An association of two or more persons engaged in a business enterprise in which the profits and losses are shared proportionally. A partnership can maintain a single partnership capital account for all partners, with a supporting schedule that breaks down the capital account for each partner

Admission of new partners is a major source of increasing capital in partnership

Current assets is a balance sheet item that represents the value of all assets that can reasonably be expected to be converted into cash within one year. Example is stock

stock is a current asset because it can easily be convertible to cash