JAMB Commerce Past Questions & Answers - Page 106

526.

One of the major problems of a sole proprietor is sourcing for?

A.

raw materials

B.

labour

C.

machineries

D.

funds

Correct answer is D

The source of capital for a sole proprietorship business is provided by the owner of the business. Sourcing for capital has always been a major problem faced by sole proprietors.

527.

Warehousing is important to manufacturers because it helps to?

A.

improve the quality of goods

B.

produce goods in advance

C.

meet the demand of customers

D.

determine input rquirements

Correct answer is B

Warehousing is the act of storing products or goods to distribute or sell it later. One of the most important uses of a warehouse is, it enables the manufacturers to store goods in advance of demand.

Warehousing allows for timely delivery and optimized distribution, leading to increased labor productivity and greater customer satisfaction.

528.

One major advantage of transportation to a business is to?

A.

extend the firm's market coverage

B.

ensure that goods are produced faster

C.

procure raw materials cheaply

D.

ensure the quality of products

Correct answer is A

With transportation in business, a firm is sure of its products and services reaching the designated consumers. Remember, production is complete at the point where goods get to the final consumer, and the only way consumers can come in contact with the produced goods is through the transportation of the goods.

529.

The most important reason for the existence of insurance business is to?

A.

prevent the occurrence of any loss

B.

spread losses to all covered participants

C.

provide for the replacement of facilities

D.

encourage individuals to save

Correct answer is B

Insurance companies exist to provide financial protection from losses that can occur during normal business operations.

530.

A risk that can be estimated and calculated to be compensation is?

A.

a delivery risk

B.

an insurable risk

C.

a credit risk

D.

a systematic risk

Correct answer is B

Insurable risks are risks that insurance companies will protect you against because it is possible to estimate and calculate the loss.