Commerce Questions and Answers

A prospectus is a document containing an invitation to the public to subscribe or buy a company's shares

A trading certificate is a certificate issued by the registrar of companies, (in this case, the corporate affairs commission) to a public company without which the company may not do business.

These public companies also need this certificate to source funds from external sources.

Public relations has to do with how a company is perceived by the public or its customer.

 It involves building mutually beneficial relationships between organizations and the public.

Devaluation of a country's currency reduces the cost of exporting goods and services to other countries, making the exporting country to be more competitive in the global market, which, in turn, increases the cost of importing goods into the country.

With a high cost of importation, imports will be reduced as people will be uninterested in importing goods at a high cost.

A sole proprietorship business is a business enterprise owned and run by one man.

Some major features of a sole proprietorship are that it is simple to set up and operate, has a sole owner who does not need to share the profits, has unlimited liability, and minimal formalities.

By unlimited liability, we mean that in the event of the business folding up, the sole proprietor will be required to settle all business debts, even if it means using his personal assets and properties to settle creditors.