WAEC Past Questions and Answers - Page 52

256.

Small scale retailers continue to survive inspite of serious competition from large scale retailers because they

A.

buy from many manufacturers

B.

maintain personal relationship with customers

C.

stock only one line of goods in their stalls

D.

do not separate business money from personal money

Correct answer is B

Small scale retailers are also called fixed shop retailers. They have fixed shops of their own and hold small stocks located in market areas or residential places. 

They attend to customers personally and cater to their individual tastes and needs.,therby building a good customer-seller relationship

257.

Which of the following describes the reason for international trade

A.

Balance of payment

B.

Comparative cost advantage

C.

Absolute cost advantage

D.

Balance of trade

Correct answer is B

Comparative advantage is an economic term that refers to an economy's ability to produce goods and services at a lower opportunity cost than that of trade partners. Countries mainly enter into international trade to buy goods and services that they would normally produce at a higher cost compared to buying it from another country that is producing it a relatively low cost

258.

If a businessman wants to insure against dishonesty of the cashier, he will take

A.

burglary policy

B.

an employer's liability cover

C.

a fidelity guarantee cover

D.

a consequential loss policy

Correct answer is C

Fidelity Guarantee insurance; This is cover which protects your organisation against the loss of money and/or property which you may suffer as a result of a dishonest or fraudulent act by an employee or volunteer.

259.

Which of the following can quote its shares on the stock exchange

A.

Partnership

B.

Sole-proprietorship

C.

Co-operative society

D.

Public limited company

Correct answer is D

Public limited company; is a company whose securities are traded on a stock exchange and can be bought and sold by anyone. 

260.

A bonded warehouse is a place for keeping

A.

contraband goods

B.

dutiable goods

C.

tax free goods

D.

smuggled goods

Correct answer is B

Bonded warehouse; is a customs-controlled warehouse for the retention of imported goods until the duty owed is paid.