JAMB Past Questions and Answers - Page 98

486.

Marketing differs from selling in that,the latter only creates

A.

possession utility

B.

marginal utility

C.

form utility

D.

place utility

Correct answer is A

Selling is an action which converts the product into cash, (possession of the product) but marketing is the process of meeting and satisfying the customer needs. Marketing consists of all those activities that are associated with product planning, pricing, promoting and distributing the product or service

487.

The principle of management that emphasizes on the number of subordinates under the direct supervision of a manager is

A.

span of control

B.

unity of command

C.

scalar chain

D.

unity of direction

Correct answer is A

Span of control; is the principle of management that emphasizes the area of activity and number of functions, people, or things for which an individual or organization is responsible.

488.

Which of the following regulates and controls the activities in the Nigerian Stock Exchange?

A.

BPE

B.

SEC

C.

NDIC

D.

CBN

Correct answer is B

The Securities and Exchange Commission (SEC) is the main regulatory institution of the Nigerian capital market.

489.

The payment made by a speculator to the buyer when he is unable to deliver stocks on the agreed date is

A.

arbitage

B.

franco

C.

contango

D.

backwardation

Correct answer is D

Backwardation is a percentage paid by a person selling stock for the right of delaying its delivery.

490.

Cum div differs from ex div in that, the later

A.

entitles the purchaser to recieve a company's current dividend

B.

entitles the vendor to recieve a company's current dividend

C.

confirms a purchase or sale made on behalf of a share holder

D.

is a document used to transfer ownership of shares

Correct answer is A

Cum dividend is the status of a security when a company is preparing to pay out a dividend at a later date. The seller of a stock cum dividend is selling both the right to the share and the right to the next dividend distribution.

The ex-dividend date of a stock is the day on which the stock begins trading without the subsequent dividend value.