JAMB Past Questions and Answers - Page 4

The efficient management of warehouses helps to optimise the existing production and distribution processes and greatly assist in the goal of cost reduction and service enhancement. Warehousing network plays a major role in the success of the physical distribution of products. A warehouse provides a central location for receiving, storing and distributing products. its needs and importance include;

1. quality of goods
2. regular supply
3. stock of trade
4. price stability
5. seasonal products
6. perishable goods
7. continous production

A pro forma invoice is a preliminary bill of sale sent to buyers in advance of a shipment or delivery of goods. The invoice will typically describe the purchased items and other important information such as the shipping weight and transport charges. Pro forma invoices streamline the sales process. Your customer agrees to the price on the pro forma invoice, and then you deliver the goods. There’s no back and forth after you’ve fulfilled your end of the bargain as it’s all agreed up front.

merchant wholesaler is an entity that purchases products, takes title of them, and then sells them (generally to retailers, other wholesalers, and industrial consumers) Merchant wholesaler is the intermediary between the producer and the retailer.

A Factor. People who are employed by others to sell or purchase goods, who are entrusted with possession of the goods, and who are compensated by either a commission or a fixed salary. A factoris a type of agent who sells goods owned by another, called a principal.

Internal sources of finance are ways to use the assets you have to run your business rather than taking out loans or bringing in investors. Instead of borrowing from investors and bankers, your business has the option of using its own money to finance its operations. This approach can save money on interest payments and free your company from being accountable to outside parties. However, it can limit expansion options if you don't have enough cash available to proceed with your plans. the following are some sources of internal funding; 

1. Retained Profits: The term "retained profit" often refers to large companies with shareholders and stock, who decide to recycle profit as working capital rather than paying it out as dividends.
2. sales os assets: If your business has equipment lying around that you don't use, you can raise working capital by selling these items and then funneling the proceeds back into your business as working capital. 
3. reducing working capital : Reducing working capital is a strategy based on managing your available money more closely. If you can negotiate shorter billing times with your clients and longer payment terms with your suppliers, you'll receive funds faster and pay them out more slowly, leaving you with more money for day-to-day operations.

A joint partnership is a legal structure for a business to use to bring together the abilities, resources, and talents of multiple companies or individuals for a common goal.