JAMB Commerce Past Questions & Answers - Page 12

56.

The elements in marketing mix that ensures goods are available when and where needed is

A.

Promotion

B.

price

C.

product

D.

place

Correct answer is D

PLACE In the marketing mix, the process of moving products from the producer to the intended user is called place. In other words, it is how your product is bought and where it is bought. This movement could be through a combination of intermediaries such as distributors, wholesalers and retailers.

57.

Why will a cheque be dishonored?

A.

Regular signature

B.

high amount of money written on the cheque

C.

insufficient funds

D.

general crossing

Correct answer is C

What is a Dishonored Cheque? A cheque is said to be honored, if the banks give the amount to the payee. While, if the bank refuses to pay the amount to the payee, the cheque is said to be dishonored. In other words, dishonor of cheque is a condition in which bank refuses to pay the amount of cheque to the payee. The cheque should have been returned or dishonored because of insufficient funds in the drawer's account

insufficient funds in the account is a major reason for dishonoring a cheque

58.

When does the buyer in a hire purchase becomes the owner of the goods?

A.

When all installments have been fully paid

B.

After payment of the first installment

C.

Before the payment of the first installment

D.

When half of the purchased price has been paid

Correct answer is A

Hire purchase is an arrangement for buying expensive consumer goods on credit, where the buyer makes an initial down payment, with the balance being paid in installments plus interest, ownership of the merchandise is not officially transferred to the buyer until all the payments have been made.

ownership is transferred when all installments have been paid

59.

One of the principles of insurance is

A.

Proximate cause

B.

Fidelity guarantee

C.

Consequential loss

D.

Surrender value

Correct answer is A

7 principles of insurance are Nature of contract, Principal of utmost good faith, Principle of Insurable interest, Principle of indemnity, Principal of subrogation, Double insurance and Principle of proximate cause

Proximate cause is a key principle of insurance and is concerned with how the loss or damage actually occurred and whether it is indeed as a result of an insured peril.

60.

A disadvantage of personal selling is that it

A.

Increase a company’s number of customers

B.

Reduces a company area of patronage

C.

Increases a company’s operating costs

D.

Decreases a company’s operating costs

Correct answer is C

Personal selling is also known as face-to-face selling in which one person who is the salesman tries to convince the customer in buying a product. The major disadvantage is increase in the company’s operating cost

the cost of operating personal selling is high